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That puts it in the top 3percentt in the natural resources fund category.
The two kinds were equally volatile in the last quarter, said Michael Herbst, lead natural resources fund analyst at Morningstar.
In any case, he would not recommend putting more than 5percentt of a portfolio into a natural resources fund.
The natural resources fund category of Morningstar, the fund tracker, tumbled more than 34percentt in the fourth quarter last year.
Brian Hicks, co-manager of U.S. Global Investors' resources fund, said some investors had put money into Alcoa as a result of the merger speculation.
Investors looking for an inflation hedge should choose a fund that is less concentrated in oil-and-gas stocks than the typical natural resources fund is now, he said.
Similar(40)
And a similar investment in a natural resources stock fund would have been worth $828.
NATURAL resources funds aren't a pure way to buy commodities.
Despite the fund managers' optimism, Mr. Altfest cautioned that investors should expect volatility in natural resources funds.
Sector by Sector Natural resources funds were winners in the quarter, while technology funds had the big declines.
But if investors were more interested in commodities for diversification purposes, he preferred low-cost natural resources funds.
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