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3 Top-Rated Energy Mutual Funds to Buy Now

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Oil prices have rebounded in recent times following disruption in global crude production and a decline in U.S. crude inventories. Further, the U.S. Energy Information Administration (EIA) indicated that U.S. shale production is likely to fall this month. Steady recovery in oil prices had a positive impact on the energy sector. So, mutual funds that have significant exposure to the energy sector could be solid investments. Mutual funds are better options while foraying into an industry as these reduce risks by holding a diversified portfolio.

Below we share with you three top-ranked energy mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all energy mutual funds, investors can click here to see the complete list of energy funds.

Vanguard Energy Investor (VGENX - Free Report) seeks capital appreciation for the long run. VGENX invests a major portion of its assets in equity securities of companies from the energy sector. The fund normally invests in stocks of companies that are engaged in the production, marketing, transmission and research of energy. Vanguard Energy Investor has returned 21.77% year to date.

Gregory J. LeBlancis one of the fund managers of VGENX since Nov 2015.

Fidelity Select Energy (FSENX - Free Report) invests the lion’s share of its assets in securities of company that are engaged in the energy industry. FSENX seeks growth of capital and invests mainly in common stocks. The fund focuses on acquiring securities of both domestic and foreign companies. It measures the industry position as well as financial and market condition of each company before selecting investments. Fidelity Select Energy has returned 19.35% year to date.

As of March 2016, FSENX held 90 issues, with 8.7% of its assets invested in Schlumberger Limited.

Columbia Global Energy & Natural Resources Z seeks capital growth for the long run. UMESX invests more than 80% of its assets in securities of domestic and foreign companies. The fund primarily focuses on acquiring securities of companies from the natural resources and energy industries. Moreover, UMESX invests more than half of its assets in petroleum and crude oil companies. Columbia Global Energy & Natural Resources Z has returned 14.28% year to date.

UMESX has an expense ratio of 1.07% as compared to the category average of 1.40%.

To view the Zacks Rank and past performance of all Energy 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 https://www.zacks.com/funds.


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Vanguard Energy Inv (VGENX) - free report >>

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