Utilities funds are an excellent choice for investors seeking a
steady income flow. They are also used as defensive instruments,
which protect investments during a market downturn. This is because
the demand for essential services such as those provided by
utilities remains unchanged even during difficult times. In recent
years, many funds in this category have increased their exposure to
emerging markets and unregulated companies. This has increased the
risk involved but has also generated higher returns.
Below we will share with you 5 top rated utilities mutual funds.
Each has earned a
Zacks #1
Rank
(Strong Buy) as we expect the fund to outperform its peers in the
future. To view the Zacks Rank and past performance of all
utilities funds, investors can
click here to see the complete list of funds
.
Invesco Utilities Investor
(
FSTUX
) seeks capital growth over the long term. The fund invests the
majority of its assets in stocks of companies in the utilities
sector or related industries. Firms engaged in the production and
distribution of gas and electricity as well as those providing
telecom services constitutes its major investments. The utilities
mutual fund has a three year annualized return of 11.62%.
The utilities mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.32% compared to a category average
of 1.28%.
Fidelity Advisor Utilities A
(
FUGAX
) invests a large share of its assets in public utility companies
as well as those firms which derive a large share of revenues from
related operations. The fund focuses on acquiring common stocks of
both domestic and foreign companies. The utilities mutual fund has
a three year annualized return of 11.91%.
Douglas Simmons is the fund manager and he has managed this
utilities mutual fund since 2006.
Vanguard Utilities Index Admiral Shares
(
VUIAX
) seeks to track the performance of the MSCI U.S. Investable Market
Index (IMI)/ Utilities 25/50. This index consists of companies in
the utilities sector regardless of their market capitalization. The
utilities mutual fund is non-diversified and has a three year
annualized return of 12.46%.
The utilities mutual fund has an expense ratio of 0.19% compared
to a category average of 1.28%.
Franklin Utilities A
(
FKUTX
) concentrates on purchasing equity in public utilities companies
and focuses on acquiring common stocks. More than 25% of its assets
are invested in companies that provide electricity, gas, water and
communication services. The utilities mutual fund has a three year
annualized return of 13.74%.
As of June 2012, this utilities mutual fund held 58 issues, with
4.25% of its total assets invested in Southern Co.
American Century Utilities
(
BULIX
) seeks current income and capital appreciation. The fund invests
the majority of its assets in securities listed on at least one
index made up entirely of electricity, natural gas, cable
television, water or sanitation services companies. The utilities
mutual fund has a three year annualized return of 13.09%.
Lynette Pang is the fund manager and he has managed this
utilities mutual fund since 2010.
To view the Zacks Rank and past performance of all utilities
mutual funds, investors can
click here to see the complete list of funds
.
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
http://www.zacks.com/funds.
View All Zacks #1 Ranked Mutual Funds
(BULIX): ETF Research Reports
(FKUTX): ETF Research Reports
(FSTUX): ETF Research Reports
(FUGAX): ETF Research Reports
(VUIAX): ETF Research Reports
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