U.S. Global Investors offers exchange traded funds (ETFs) in addition to mutual funds.
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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.
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The bipartisan Creating Helpful Incentives to Produce Semiconductors for America Act, or CHIPS Act, was signed into law this week, setting aside $52 billion to boost domestic semiconductor research and production.
We believe government policy is a precursor to change, and if that’s the case, we may soon see a big shift in the U.S.’s global market share of semiconductor chips. These integrated circuits are the hidden brains of nearly everything that fills our lives nowadays, from vehicles to smartphones, TVs, washing machines and even diapers. Without them, nothing would function.
Global demand for chips is growing at an alarming rate and will only accelerate further as more and more devices are designed to be “smart” and connected. According to ASML, the world’s leading supplier to the chip industry, there are an estimated 40 billion connected devices right now, and by 2030, this number is expected to increase to a jaw-dropping 350 billion.
Put another way, the worldwide semiconductor market is forecast to increase 16.3% this year, which would be the second straight year of double-digit growth, says the World Semiconductor Trade Statistics (WSTS). In 2023, growth is expected to be a more moderate 5.1%.
Consider the growth in automobiles’ chip use alone. In 2021, each new vehicle contained close to 300 different semiconductors, a massive 40% increase from just two years earlier, according to research by Goldman Sachs.
This is due in large part to the expansion of electric vehicles (EVs), advanced driver assistance systems (ADAS) and other technologies. A Tesla Model 3, for instance, is estimated to use more than twice the number of chips as an internal combustion-powered vehicle.
As you likely know, the pandemic lockdowns of 2020 exposed huge supply chain vulnerabilities for a number of goods coming into the U.S., including semiconductors. Without fresh chips, most automakers have been forced to cut production. According to Automotive News, the North American market was short as many as 100,000 new vehicles in the week ended August 7, thanks to the ongoing chip shortage.
This has driven up demand (and prices) for used cars and trucks. The Manheim Used Vehicle Value Index shows that, despite a slight decrease from June to July, preowned auto prices in the U.S. were up 12.5% on average in July from the same month last year.
The $52 billion CHIPS Act, signed by President Joe Biden on Tuesday, is designed to address these supply chain vulnerabilities, incentivize the construction of new semiconductor manufacturing facilities and compete with other countries’ heavily subsidized industries.
To be clear, the U.S. is no slouch in this department. Semiconductors rank as the nation’s fifth largest export, and U.S. companies represent seven of the top 10 global chipmakers by market cap.
Nevertheless, the U.S. today represents only 12% of global semiconductor manufacturing capacity, despite the technology being invented in the U.S. That’s according to Keith Jackson, president and CEO of the Semiconductor Industry Association (SIA). Jackson rightfully added that chip technology is “strategically important to our economy and national security.”
If you refer back to the first chart in this piece (“Semiconductor Sales Forecast by Region”), it’s clear the momentum has been gaining for overseas manufacturers. That’s particularly true for Korea’s Samsung and Taiwan’s TSMC, whose largest customer is none other than Apple. In 2021, the iPhone maker accounted for over a quarter of TSMC’s total annual revenue of $57 billion.
The CHIPS Act isn’t the only incentive U.S.-based manufacturers are getting. Just two days after the legislation was signed into law, New York committed an additional $10 billion in corporate tax breaks for chipmakers who build or expand semiconductor fabrication plants, or “fabs,” within the state.
Although nothing has been announced yet, it’s possible that other states may roll out similar tax incentives to relocate within their borders.
Shares of the top 30 largest U.S. chipmakers, as measured by the PHLX Semiconductor Index (SOX), have responded positively in anticipation of the law’s passage. This week marks the sixth straight week that SOX has recorded a positive gain, and the index is now back to trading above its 50-day moving average. As of Friday, shares were still about 24% below their all-time close high on December 27 of last year, so it appears there could be plenty of upside potential.
Although U.S. Global Investors doesn’t necessarily have a semiconductor chip strategy, we acknowledge that—as I mentioned before—every device and sector use them. That includes our key disciplines, such as gold and precious metal mining, airlines, container shipping and even luxury goods (Tesla and Apple).
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This week gold futures closed at $1,817.00, up $25.80 per ounce, or 1.44%. Gold stocks, as measured by the NYSE Arca Gold Miners Index, ended the week higher by 3.12%. The S&P/TSX Venture Index came in up 2.46%. The U.S. Trade-Weighted Dollar fell 0.88%.
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):
Evergreen Marine Corp Taiwan L
*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 Bloomberg Dollar Spot Index tracks the performance of a basket of 10 leading global currencies versus the U.S. Dollar.
The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output.
The Manheim Used Vehicle Value Index is a measurement of used vehicle prices that is independent of underlying shifts in the characteristics of vehicles being sold. The PHLX Semiconductor Sector Index is designed to measure the performance of the 30 largest U.S.-listed semiconductor companies.
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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