Gold 2020 winner
Investors that turned to gold during the first year of the COVID-19 pandemic were the winners as the asset class was the best-performing sector at 24.8%, according to Bank of America (BofA).
BofA data found this was the first time since 2010 that gold took the top spot, with US$54 billion ($70 billion) flowing into gold in 2020.
The S&P 500 came in second place at 16.3%, and was followed by MSCI emerging markets (15.8%), global investment grade bonds (10.3%), US Treasuries (8.2%), global high yield (8%), MSCI Europe, Australasia, and Far East (EAFE) (5.4%), and cash (0.5%).
Real estate investment trusts lost 7.6% during the year, and commodities lost 15%.
However, the first week of January saw commodities at the top of the pack with returns of 3.4%, followed by MSCI emerging markets at 1.9%, MSCI EAFE at 1.4%. and gold at 0.9%.
High flows into gold continued during the first week at US$1.5 billion which BofA said was the largest inflow since August, 2020.
However, the largest flow last week went to cash at US$29.1 billion, followed by US$14.9 billion into bonds, and US$11.2 billion into equities.
According to latest data by FE Analytics, within the Australian Core Strategies universe, since the start of 2020 to 30 November, 2020, BetaShares Global Gold Miners ETF Currency Hedged was the top performing gold fund at 20.29%.
This was followed by Select Baker Steel Gold at 19.82%, Select Baker Steel Gold Institutional at 19.63%, BetaShares Gold Bullion ETF at 13%, VanEck Vectors Gold Miners ETF at 12.5%, and Perth Mint Gold at 9.92%.
Over the three years to 30 November, 2020, the top performing gold fund was Select Baker Steel Gold that returned 83.56%.
This was followed by BetaShares Global Gold Miners ETF Currency Hedged at 71.56%, VanEck Vectors Gold Miners ETF at 61.99%, Perth Mint Gold at 41.41%, and BetaShares Gold Bullion ETF (AUD Hedged) at 29.68%.
Performance of gold funds over the three years to 30 November 2020
Source: FE Analytics
Overall, the funds that had 10 year returns did not perform as well with Perth Mint Gold as the top performer at 67.1% over the 10 years to 30 November, 2020.
However, Select Baker Steel Gold returned just 4.85%, and VanEck Vectors Gold Miners ETF lost 22.06%.
Performance of gold funds over the 10 years to 30 November 2020
Source: FE Analytics
Recommended for you
Bentham Asset Management has become the latest fund manager to expand its distribution team as it reports increased interest in its credit strategies.
L1 Capital, which is in talks to merge with Platinum Asset Management, has indicated it will be voting against a deal to convert a Platinum LIC into an ETF.
Evidentia Group has hired a head of quantitative investments who joins the investment firm and managed account provider from AMP.
Fidelity International has worked in tandem with Australian wealth manager Emanuel Whybourne & Loehr to launch an actively managed global equities strategy aimed at financial advisers.
