Here’s the World’s Most “Calming” Investment Chart

Author: Frank Holmes
Date Posted: September 23, 2015 Read time: 6 min

Lately there’s been quite a lot of volatility in world markets. The Shanghai Composite Index has tumbled close to 40 percent since hitting a seven-year high in June.


Lately there’s been quite a lot of volatility in world markets.

The Shanghai Composite Index has tumbled close to 40 percent since hitting a seven-year high in June. The S&P 500 Index dipped into correction territory after a spectacular six-year bull run. And the Chicago Board Options Exchange SPX Volatility Index—popularly known as the VIX—spiked dramatically last month.

Many investors are starting to feel cornered, with fewer and fewer “safe haven” assets to turn to.

That’s why, with so much drama in global markets right now, it’s refreshing to find an investment product that knows how to keep its cool.

Minimal Share Price Fluctuation

Take a look at the following chart. Some people might find it boring. Fair enough. I prefer to call it “calming,” like the calm, tranquil waters of a harbor. 

NEARX SharePrice Q2 click to enlarge


The near-static line you’re looking at is the share price for our Near-Term Tax Free Fund (NEARX), whose net asset value (NAV) has floated in the $2 range for more than 10 years.

This is exactly what many investors seek for their cash or short-term investments, especially now: minimal movement in the daily share price.

It’s for this reason that NEARX has become very near and dear to the hearts of our investors.

A Proven Leader in Short-Term Muni Bonds

For 20 years in a row, NEARX has delivered positive total returns, even through two surges in interest rates and two stock market crashes.



An investment in S&P 500 stocks has its place in most portfolios, but NEARX has had a stabilizing effect in times of extreme gains and losses, such as we saw between 2000 and 2009, as well as the most recent market correction.

Out of 25,000 equity and bond funds, only 30 have managed to deliver 20 straight years of positive returns, according to Lipper. Our Near-Term Tax Free Fund is one of those 30.

That’s a rare achievement indeed and represents the kind of track record most investment firms envy.

The recipient of glowing acknowledgements by popular financial and investment newsletter writers, NEARX is also highly-rated by Morningstar. It holds five stars overall among 186 Municipal National Short-Term funds as of 6/30/2015, based on risk-adjusted return.

Stay calm and start taking advantage of our fixed-income expertise by requesting more information on NEARX today.


Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.

Past performance does not guarantee future results. Total Annualized Returns as of 6/30/2015

Total Annualized Returns as of 6/30/2015:
Fund One-Year Five-Year Ten-Year Gross Expense Ratio Expense Cap
Near-Term Tax Free Fund 0.90% 2.27% 2.98% 1.08% 0.45%
S&P 500 Index 7.42% 17.34% 7.89% n/a n/a

Expense ratio as stated in the most recent prospectus. The expense cap is a contractual limit through April 30, 2016, for the Near-Term Tax Free Fund, on total fund operating expenses (exclusive of acquired fund fees and expenses, extraordinary expenses, taxes, brokerage commissions and interest).Performance data quoted above is historical. Past performance is no guarantee of future results. Results reflect the reinvestment of dividends and other earnings. For a portion of periods, the fund had expense limitations, without which returns would have been lower. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. Performance does not include the effect of any direct fees described in the fund’s prospectus which, if applicable, would lower your total returns. . Performance quoted for periods of one year or less is cumulative and not annualized. Obtain performance data current to the most recent month-end at or 1-800-US-FUNDS.

Morningstar Rating


Morningstar ratings based on risk-adjusted return and number of funds
Category: Equity Precious Metals
Through: 6/30/2015

Morningstar Ratings are based on risk-adjusted return. The Morningstar Rating for a fund is derived from a weighted-average of the performance figures associated with its three-, five- and ten-year 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.)

Bond funds are subject to interest-rate risk; their value declines as interest rates rise. Though the Near-Term Tax Free Fund seeks minimal fluctuations in share price, it is subject to the risk that the credit quality of a portfolio holding could decline, as well as risk related to changes in the economic conditions of a state, region or issuer. These risks could cause the fund’s share price to decline. Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local taxes and at times the alternative minimum tax. 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 S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The Shanghai Composite Index (SSE) is an index of all stocks that trade on the Shanghai Stock Exchange. Chicago Board Options Exchange (CBOE) Volatility Index (VIX) shows the market’s expectation of 30-day volatility.

All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.