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U.S. Global Investors offers exchange traded funds (ETFs) in addition to mutual funds.
Get the need-to-know information about our financial products, from investment objectives, strategies, and performance to fees and fund management.
Explore the performance of our eight no-load mutual funds here, which invest in a range of industries from natural resources and emerging markets, to precious metals and bonds.
The Gold and Precious Metals Fund is the first no-load gold fund in the U.S. We have a history as pioneers in portfolio management in this specialized sector. Our team brings valuable background in geology and mining finance, important to understanding the technical side of the business.
The World Precious Minerals Fund complements our Gold and Precious Metals Fund by giving investors increased exposure to junior and intermediate mining companies for added growth potential. With a high level of expertise in this specialized sector, our portfolio management team includes professionals with experience in geology, mineral resources and mining finance.
The Global Resources Fund takes a multi-faceted approach to the natural resources sector by investing in energy and basic materials. The fund invests in companies involved in the exploration, production and processing of petroleum, natural gas, coal, alternative energies, chemicals, mining, iron and steel, and paper and forest products, and can invest in any part of the world.
The China Region Fund invests in one of the world’s fastest-growing regions. The China region has experienced many changes since the fund opened in 1994 but we believe the region continues to hold further investment opportunities. Many countries in the region possess characteristics similar to the United States prior to the industrial revolution: a thriving, young workforce, migration from rural to urban areas and shifting sentiment toward consumption.
The Emerging Europe Fund focuses on a region that shares the same continent as the established economies of Western Europe, but has more in common with other emerging markets around the world. Many countries across emerging Europe are rich in resources, have strong banking and manufacturing sectors, healthy economies and lower debt levels than their western neighbors.
The Global Luxury Goods Fund provides investors access to companies around the world that are involved in the design, manufacture and sale of products and services that are not considered to be essential but are highly desired within a culture or society.
The Near-Term Tax Free Fund invests in municipal bonds with relatively short maturity. The fund seeks to provide tax-free monthly income by investing in debt securities issued by state and local governments from across the country.
The U.S. Government Securities Ultra-Short Bond Fund is designed to be used as an investment that takes advantage of the security of U.S. Government bonds and obligations, while simultaneously pursuing a higher level of current income than money market funds offer.
U.S. Global Investors, Inc. is an innovative investment manager with vast experience in global markets and specialized sectors.
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On behalf of everyone at U.S. Global Investors, I’m extending strength and resilience to the people of Florida, where an estimated 2 million customers are currently without power. Hurricane Ian, which has made landfall in the Carolinas as I write this, is already believed to be among the costliest hurricanes in U.S. history. The upper range forecast of $70 billion in damages would put the category four storm in at least the top 10, adjusted for inflation.
Of particular concern is Florida’s systemic lack of flood insurance. Just 18.5% of homes in Florida counties that were told to evacuate have coverage through the National Flood Insurance Program (NFIP), which is administered by the Federal Emergency Management Agency (FEMA).
Most regular homeowners’ insurance policies don’t cover flood damage, which is why Congress created the NFIP in 1968. But at an average cost of $995 a year, according to Forbes, the insurance may be out of reach to many households.
I can’t stress how important it is to have this type of coverage, though, especially if you live in regions where flooding is possible, and you can afford the premiums.
I’m sure many of you have seen the videos of entire first floors of some Florida homes completely inundated with floodwater. According to FEMA, each additional inch of water that floods a home or business increases the total repair cost by a shocking multiple. Even one inch of water in a typical 2,500-square-foot house can carry a price tag approaching $27,000. That $995-per-year payment for NFIP coverage starts to look a lot more attractive.
As an investor, you may have hedged your securities to reduce the risk of loss in your portfolio. Some typical strategies include buying put options, futures contracts and other financial instruments, or investing in assets such as gold that have a negative correlation to stocks. It might be helpful to think of flood insurance as a hedge on the investment you’ve made in your home.
As for the insurance industry, Hurricane Ian will be an “historic event,” potentially costing it upwards of $20 billion, says Andrew Siffert, senior meteorologist with global insurance broker BMS. “This does not count litigation amplification that could result,” he writes.
Though you may disagree, Siffert asserts that Florida is a “textbook for disaster by design.” In the city of Cape Coral, for instance, many homes and businesses have been built along canals. This raises their value as expected, but it also raises the cost to repair or replace them. What’s more, a large percentage of these homes are owned by snowbirds who may not have had the chance to make the appropriate preparations before the storm made landfall.
After learning that the insurance industry could be on the hook for $20 billion or more, you may well believe that shares of property and casualty insurance companies will crater in the coming days and weeks. Indeed, conventional wisdom says to avoid insurance stocks until after hurricane season, which can last between June and November.
The truth is that some industries have historically seen a greater negative impact from hurricanes. A 2018 analysis by Morgan Stanley found that the industry with the highest exposure to hurricanes was, believe it or not, “branded apparel and footwear.”
The reason for this may be that many retailers like to build along popular, heavily trafficked coasts and beaches frequented by affluent residents and tourists. Nearly a quarter of stores owned by PVH Corp., parent company of Calvin Klein and Tommy Hilfiger, can be found in hurricane prone areas.
I was curious to see the hurricane season’s impact on the performance of property and casualty companies—think Progressive, Travelers, Allstate and others. I looked at the 10-day and 30-day performance of the seven-member S&P 500 Property & Casualty Insurance Index following the 15 costliest hurricanes in U.S. history, and I compared this to the S&P 500 over the same periods. What I found is that, while the insurance group underperformed on average, it wasn’t by much. In fact, for the 10-day period, insurance companies outperformed slightly, by as much as 21 basis points (bps). For the 30-day period, insurance issuers underperformed the market by some 44 bps on average.
Source: National Hurricane Center, Bloomberg, U.S. Global Investors
On the other end of the spectrum are companies that could see increased sales as a result of hurricane season. These include hotel chains, construction companies such as Masco and C.H. Robinson, and used-vehicle retailers such as CarMax and Carvana.
Home improvement companies also stand to benefit. Shares of Home Depot, Lowe’s and Floor & Decor all jumped on Wednesday as Ian made landfall along the southwestern coast of Florida.
Home Depot, one of our favorite stocks, was on track to close the week up nearly 3%, even as it’s set to record its second straight month of negative returns.
Again, I want to emphasize that my thoughts and prayers are with those whose lives have been impacted by Hurricane Ian, as well as those who currently lie in its path.
You can help support disaster relief efforts by donating to the American Red Cross. Make a donation by clicking here.
Weaknesses
This week gold futures closed at $1,669.90, up $14.30 per ounce, or 0.86%. Gold stocks, as measured by the NYSE Arca Gold Miners Index, ended the week higher by 5.92%. The S&P/TSX Venture Index came in up 2.63%. The U.S. Trade-Weighted Dollar slid 0.90%.
U.S. Global Investors, Inc. is an investment adviser registered with the Securities and Exchange Commission (“SEC”). This does not mean that we are sponsored, recommended, or approved by the SEC, or that our abilities or qualifications in any respect have been passed upon by the SEC or any officer of the SEC.
This commentary should not be considered a solicitation or offering of any investment product. Certain materials in this commentary may contain dated information. The information provided was current at the time of publication. Some links above may be directed to third-party websites. U.S. Global Investors does not endorse all information supplied by these websites and is not responsible for their content. All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Holdings may change daily. Holdings are reported as of the most recent quarter-end. The following securities mentioned in the article were held by one or more accounts managed by U.S. Global Investors as of (06/30/22):
Alaska Air Group
FedEx Corp
Airbus SE
Cathay Pacific Airways Ltd
SSR Mining
Barrick Gold Corp
Newmont
IAMGold
Burberry Group PLC
LVMH Moet Hennessy
FedEx Corp.
AP Moller – Maersk A/S
*The above-mentioned indices are not total returns. These returns reflect simple appreciation only and do not reflect dividend reinvestment.
The Dow Jones Industrial Average is a price-weighted average of 30 blue chip stocks that are generally leaders in their industry. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The Nasdaq Composite Index is a capitalization-weighted index of all Nasdaq National Market and SmallCap stocks. The Russell 2000 Index® is a U.S. equity index measuring the performance of the 2,000 smallest companies in the Russell 3000®, a widely recognized small-cap index.
The Hang Seng Composite Index is a market capitalization-weighted index that comprises the top 200 companies listed on Stock Exchange of Hong Kong, based on average market cap for the 12 months. The Taiwan Stock Exchange Index is a capitalization-weighted index of all listed common shares traded on the Taiwan Stock Exchange. The Korea Stock Price Index is a capitalization-weighted index of all common shares and preferred shares on the Korean Stock Exchanges.
The Philadelphia Stock Exchange Gold and Silver Index (XAU) is a capitalization-weighted index that includes the leading companies involved in the mining of gold and silver. The U.S. Trade Weighted Dollar Index provides a general indication of the international value of the U.S. dollar. The S&P/TSX Canadian Gold Capped Sector Index is a modified capitalization-weighted index, whose equity weights are capped 25 percent and index constituents are derived from a subset stock pool of S&P/TSX Composite Index stocks. The NYSE Arca Gold Miners Index is a modified market capitalization weighted index comprised of publicly traded companies involved primarily in the mining for gold and silver. The S&P/TSX Venture Composite Index is a broad market indicator for the Canadian venture capital market. The index is market capitalization weighted and, at its inception, included 531 companies. A quarterly revision process is used to remove companies that comprise less than 0.05% of the weight of the index, and add companies whose weight, when included, will be greater than 0.05% of the index.
The S&P 500 Energy Index is a capitalization-weighted index that tracks the companies in the energy sector as a subset of the S&P 500. The S&P 500 Materials Index is a capitalization-weighted index that tracks the companies in the material sector as a subset of the S&P 500. The S&P 500 Financials Index is a capitalization-weighted index. The index was developed with a base level of 10 for the 1941-43 base period. The S&P 500 Industrials Index is a Materials Index is a capitalization-weighted index that tracks the companies in the industrial sector as a subset of the S&P 500. The S&P 500 Consumer Discretionary Index is a capitalization-weighted index that tracks the companies in the consumer discretionary sector as a subset of the S&P 500. The S&P 500 Information Technology Index is a capitalization-weighted index that tracks the companies in the information technology sector as a subset of the S&P 500. The S&P 500 Consumer Staples Index is a Materials Index is a capitalization-weighted index that tracks the companies in the consumer staples sector as a subset of the S&P 500. The S&P 500 Utilities Index is a capitalization-weighted index that tracks the companies in the utilities sector as a subset of the S&P 500. The S&P 500 Healthcare Index is a capitalization-weighted index that tracks the companies in the healthcare sector as a subset of the S&P 500. The S&P 500 Telecom Index is a Materials Index is a capitalization-weighted index that tracks the companies in the telecom sector as a subset of the S&P 500.
The Consumer Price Index (CPI) is one of the most widely recognized price measures for tracking the price of a market basket of goods and services purchased by individuals. The weights of components are based on consumer spending patterns. The Purchasing Manager’s Index is an indicator of the economic health of the manufacturing sector. The PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment. Gross domestic product (GDP) is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
The S&P Global Luxury Index is comprised of 80 of the largest publicly traded companies engaged in the production or distribution of luxury goods or the provision of luxury services that meet specific investibility requirements.
Free cash flow indicates the amount of cash generated each year that is free and clear of all internal or external obligations.
The Bloomberg Dollar Spot Index tracks the performance of a basket of 10 leading global currencies versus the U.S. Dollar.
Standard and Poor’s 500 Property & Casualty Insurance Index is capitalization- weighted index. This is a GICS Level 4 Sub-Industry group.
The Shanghai Containerized Freight Index is the most widely used index for sea freight rates for import China worldwide. This index has been calculated weekly since 2009 and shows the most current freight prices for container transport from the Chinese main ports, including Shanghai.
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Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by clicking here or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Foreside Fund Services, LLC, Distributor. U.S. Global Investors is the investment adviser.
Bond funds are subject to interest-rate risk; their value declines as interest rates rise. Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local income taxes, and if applicable, may subject certain investors to the Alternative Minimum Tax as well. The Near-Term Tax Free Fund may invest up to 20% of its assets in securities that pay taxable interest. Income or fund distributions attributable to capital gains are usually subject to both state and federal income taxes. The tax free funds may be exposed to risks related to a concentration of investments in a particular state or geographic area. These investments present risks resulting from changes in economic conditions of the region or issuer. Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5% to 10% of your portfolio in these sectors. Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile than those of a less concentrated portfolio. The Emerging Europe Fund invests more than 25% of its investments in companies principally engaged in the oil & gas or banking industries. The risk of concentrating investments in this group of industries will make the fund more susceptible to risk in these industries than funds which do not concentrate their investments in an industry and may make the fund’s performance more volatile. Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries. Stock markets can be volatile and share prices can fluctuate in response to sector-related and other risks as described in the fund prospectus.
Morningstar Ratings are based on risk-adjusted return. The Overall Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. Past performance does not guarantee future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating? based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.)
Each of the mutual funds or services referred to in the U.S. Global Investors, Inc. website may be offered only to persons in the United States. This website should not be considered a solicitation or offering of any investment product or service to investors residing outside the United States. Certain materials on the site may contain dated information. The information provided was current at the time of publication. For current information regarding any of the funds mentioned in such materials, please visit the fund performance page. Some link(s) above may be directed to a third-party website(s). U.S. Global Investors does not endorse all information supplied by this/these website(s) and is not responsible for its/their content. All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
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