Even as the world's energy resources are pushed to the limit,
the demand for energy continues to rise steadily year over year.
This is particularly true for emerging economies such as China and
India where energy consumption is rising exponentially. Though
efforts to harness alternative energy sources as diverse as oil
shale continue, prices for this precious resource continue to rise.
However investors could benefit from this phenomenon by investing
in the energy sector. Mutual funds focusing on energy are a
superior option in this case as they reduce risks involved by
holding widely diversified portfolios.
Below we will share with you 5 top rated energy mutual funds.
Each has earned a Zacks #1 Rank (Strong Buy) as we expect these
mutual funds to outperform their peers in the future. To view the
and past performance of all energy funds, then
seeks to provide investors long-term capital growth. The fund
invests heavily in equity securities and derivatives of energy
companies which are traded in the U.S. This energy mutual fund is
non-diversified and returned 12.54% over the last one year
The energy mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 1.39% compared to a category average
Fidelity Select Natural Gas
invests a large proportion of its assets in securities of companies
involved in the production of natural gas as well as transmission
and distribution activities. The fund also purchases securities
issued by explorations companies. The energy mutual fund has a
three year annualized return of 8.85%.
As of October 2011, this energy mutual fund held 43 issues, with
11.60% of its total assets invested in Andarko Petroleum Corp.
Ivy Energy A
seeks capital appreciation over the long term. The fund invests at
least 80% of its assets in securities issued by energy companies.
Companies engaged in exploration, discovery, production and
distribution of energy constitute the fund's major investments. The
energy mutual fund returned 7.79% over the last one year
The fund manager is David P. Ginther and he has managed this
energy mutual fund since 2006.
Vanguard Energy Index
invests in approximately all of the equity securities which make up
its target index, the MSCI US Investable Market Energy 25/50 Index.
This index is made of large, medium and small domestic companies
from the energy sector. The energy mutual fund has a five year
annualized return of 5.92%.
The energy mutual fund has an expense ratio of 0.19% compared to
a category average of 1.64%.
Putnam Global Natural Resources A
seeks capital growth. The fund primarily invests in common stocks
of energy and natural resources companies across the world. It
focuses on acquiring value stocks and invests in large and mid-cap
companies. The energy mutual fund has a ten year annualized return
The fund manager is Steven Curbow and he has managed this energy
mutual fund since 2008.
To view the Zacks Rank and past performance of all energy mutual
About Zacks Mutual Fund Rank
By applying the Zacks Rank to mutual funds, investors can find
funds that not only outpaced the market in the past but are also
expected to outperform going forward. Learn more about the Zacks
Mutual Fund Rank at
View All Zacks #1 Ranked Mutual Funds