What You Should Know about Alternative Precious Metal Fund VGPMX

(Continued from Prior Part)

Global geographic focus

The primary objective of the Vanguard Precious Metal and Mining Investment Fund (VGPMX) is long-term capital appreciation. Although this fund is not a pure gold or precious metals fund, it invests solely in the precious metals and mining industries. The fund has a global geographic focus and is invested in stocks from Canada, the UK, the US, and Sweden, among others. The chart below gives a geographical breakdown of VGPMX’s portfolio.

More than half of the holdings of the VGPMX are Canada-based. The VGPMX is invested in 60 mining and precious metal stocks. Some of VGPMX’s top holdings are Nevsun Resources (NSU), Dominion Diamond (DDC), Stillwater Mining (SWC), Agnico-Eagle Mines (AEM), and Randgold Resources (GOLD).

Holdings returns

The VGPMX has performed poorly in the market in 2015. Top-weighted holdings Nevsun Resources and Dominion Diamond have fallen by 33% and 54%, respectively. The top ten holdings of the Vanguard Precious Metal and Mining Investment Fund (VGPMX) represent almost half of its whole portfolio. 93% of the fund’s holdings are equity securities from different countries including the US.

In the next part of the series, we will analyze how VGPMX affected investors’ portfolios.

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Browse this series on Market Realist:

• Part 1 - What Is Alternative Precious Metal Fund VGPMX’s Investment Strategy?

• Part 2 - What Do Analysts Predict for VGPMX’s Top Holdings?

• Part 3 - How Has VGPMX Performed Historically Compared to Its Benchmark?