The war between Israel and the Palestine-based militant group Hamas has affected the global supply chain. Also, the Russia-Ukraine war prompted several governments, including the United States, to impose sanctions on Russian oil and energy.
Crude prices have gone up on supply concerns from Russia, which is one of the world’s biggest producers of the commodity. Prices have risen further after the U.S. government imposed a ban on the import of oil and other energy products.
Geopolitical tensions are likely to keep markets volatile for some time, with the energy sector making the most of the opportunity. So, investing in funds with exposure to energy equities is expected to help in the near term.
Below, we share with you three top-ranked energy mutualfunds, viz., Fidelity Select Energy Portfolio FSENX, Invesco SteelPath MLP Select 40 MLPFX and Fidelity Natural Resources Fund FNARX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of energy mutual funds.
Fidelity Select Energy Portfolio primarily invests in securities of companies involved in the energy sector, spanning traditional areas, such as oil, gas, electricity, and coal, as well as emerging sources such as nuclear, geothermal, oil shale, and solar. FSENX advisors rely on fundamental analysis to guide investment selection.
Fidelity Select Energy Portfolio has three-year annualized returns of 7.4%. As of May 2025, FSENX held 35 issues, with 24.5% of its assets invested in Exxon Mobil.
Invesco SteelPath MLP Select 40 focuses mainly on master limited partnerships (MLPs) and related securities. Its investments center on companies involved in transporting, storing, processing, refining, marketing, exploring, producing, and mining activities tied to minerals and natural resources, aiming to capture growth across the energy value chain.
Invesco SteelPath MLP Select 40 has three-year annualized returns of 20.4%. Stuart Cartner has been one of the fund managers of MLPFX since 2010.
Fidelity Natural Resources Fund primarily invests in securities of companies focused on natural resources and precious metals. FNARX advisors apply fundamental analysis, evaluating factors, such as an issuer’s financial health and industry standing, to identify suitable investments and build the portfolio.
Fidelity Natural Resources Fund has three-year annualized returns of 13.7%. FNARX has an expense ratio of 0.69%.
To view the Zacks Rank and the past performance of all energy mutualfunds, investors can click here to see the complete list of energy mutual funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpView All Zacks #1 Ranked Mutual Funds
Get Your Free (FSENX): Fund Analysis Report
Get Your Free (MLPFX): Fund Analysis Report
Get Your Free (FNARX): Fund Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
