4-Star Funds Poised to Pop: Central Fund of Canada

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Central Fund of Canada (NYS: CEF) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Central Fund of Canada and see what CAPS investors are saying about the closed-end fund right now.

Central Fund of Canadafacts

InceptionSeptember 1983
Market Cap$5.9 billion
Investment ApproachCentral Fund's purpose is to hold gold and silver bullion on a secure basis for the convenience of investors in the shares of the Central Fund.
Expense Ratio0.3%
1-Year / 3-year / 5-Year Returns(9.2%) / 20.2% / 19.1%
AlternativesSPDR Gold Shares
iShares Silver Trust

Sources: Morningstar and Motley Fool CAPS.

On CAPS, 96% of the 746 members who have rated Central Fund of Canada believe the fund will outperform the S&P 500 going forward.

Earlier this summer, one of those Fools, DarthMaul09, succinctly summed up the bull case for our community:

Balanced play between gold and silver. ... [T]his fund has a better reputation for holding the actual bullion, which may become relevant as bullion shortages become more apparent. With Asian gold buying and [Eric Sprott's] upcoming silver purchases I would expect that demand may increase, especially if central banks continue to expand the money supply.

Owning exceptional funds is a surefire way to secure your financial future. Of course, despite a strong four-star rating, Central Fund of Canada may not be your top choice.

If that's the case, our special report on ETFs highlights three funds that are poised to soar in the next recovery. It's 100% free, but won't last forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow theTrackPoisedToCAPS account.

The article 4-Star Funds Poised to Pop: Central Fund of Canada originally appeared on Fool.com.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story