Zacks #1 Ranked Energy Mutual Funds (revised) - Best of Funds
With every passing year, the world's appetite for energy continues to increase steadily. Governments and corporations alike are therefore constantly on the lookout for new energy sources or more efficient technology in this domain. For fast growing economies such as China and India, the situation is even more acute. Thus, prices of these invaluable resources are surging and investors could benefit from the situation by investing in the energy industry. Energy mutual funds are a superior option for forays into the industry 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 Zacks Rank and past performance of all energy funds, investors can click here to see the complete list of funds.
Rydex Series Trust Energy Services ( RYVIX ) seeks capital growth. It invests the majority of its assets in equity securities traded in U.S. markets and derivatives from the energy services sector. The fund focuses on investing in small and mid-cap companies from the sector. This energy mutual fund has returned 13.82% over the last one year period.
The fund manager is Michael P. Byrum and he has managed this energy mutual fund since 1998.
ING Global Natural Resources A ( LEXMX ) seeks capital growth. It invests heavily in equity securities of domestic or foreign companies related to the natural resources industry. A maximum of 50% of its assets may be invested in any single industry. The non-diversified fund returned 6.46% over the last one-year period.
The energy mutual fund has an expense ratio of 1.56% compared to a category average of 1.52%.
Franklin Natural Resources A ( FRNRX ) seeks high return. The fund invests most of its assets in equity and debt securities of those companies whose primary operations relate to natural resources. The company may invest a small portion in equity and debt securities issued by foreign companies with market cap not more than $1.5 billion. The fund has returned 9.55% over the last one year period.
As of September 2013, this energy mutual fund held 106 issues, with 4.63% of its total assets invested in Schlumberger NV.
Putnam Global Natural Resources A ( EBERX ) seeks capital growth. It invests in purchasing common stocks of mid-cap or large firms. It may purchase both value or growth stocks of companies whose principal operations are related to the energy sector. The non-diversified fund returned 5.41% over the last one year period.
The fund manager is Christopher Eitzmann and he has managed this energy mutual fund since 2012.
Waddell & Reed Energy A ( WEGAX ) invests a large portion of its assets in companies whose primary operations are related to the energy industry. The fund may invest all of its assets in foreign securities. The energy mutual fund has returned 17.59% over the last one year period. The energy mutual fund has an expense ratio of 1.68% compared to a category average of 1.56%.
To view the Zacks Rank and past performance of all energy mutual funds, investors 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 .
(We are reissuing this article to correct a mistake. The original article, issued yesterday, Wednesday, January 15, 2014, should no longer be relied on.)