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Top 5 Energy Mutual Funds
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ShareMutual funds investing in energy and natural resources are excellent long term prospects and should be part of all well diversified portfolios. This is borne out by the fact that on many occasions, natural resources funds have outperformed the next closest domestic equity fund category by a huge margin. Most of this success is attributable to the oil and natural gas sectors where fast depleting reserves coupled with rising demand have led to a steady increase in both commodity and stock prices. Energy mutual funds greatly reduce the risk involved in investing in this sector because they hold 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, then click here.
Vanguard Energy (VGENX) seeks capital growth over the long term. The fund utilizes the majority of its assets to purchase common stocks of companies whose primary activities are energy related, including energy conservation and pollution control. This energy mutual fund has a ten year annualized return of 13.94%.
The energy mutual fund has a minimum initial investment of $3,000 and an expense ratio of 0.34% compared to a category average of 1.64%.
JHancock2 Natural Resources 1 (JINRX) invests heavily in equity and related securities of companies across the world whose primary operations involve natural resources. The fund selects firms which are expected to gain from increasing demand for natural resources. This energy mutual fund has a five year annualized return of 0.89%.
The fund manager is John O’Toole and he has managed this energy mutual fund since 2009.
Calvert Global Alternative Energy A (CGAEX) seeks capital appreciation over the long term. The fund invests a large share of its assets in domestic and foreign companies from the alternative energy sector. The energy mutual fund returned -33.33% over the last one year period.
As of October 2011, this energy mutual fund held 60 issues, with 4.43% of its total assets invested in EDP Renovaveis SA.
Ivy Global Natural Resources A (IGNAX) invests the majority of its assets in equity securities of companies, whose primary operations are related to natural resources, including suppliers and service providers. The fund focuses on investing in foreign companies or domestic firms with major overseas operations. The energy mutual fund has a ten year annualized return of 11.82%.
The energy mutual fund has a minimum initial investment of $500 and an expense ratio of 1.39% compared to a category average of 1.51%.
Invesco Energy (FSTEX) seeks long term capital growth. The fund utilizes a large proportion of its assets to purchase securities of energy companies. This includes companies which produce or distribute conventional energy, as well as energy conservation and alternative energy companies. This energy mutual fund has a five year annualized return of 1.95%.
The fund manager is Andrew Lees and he has managed this energy mutual fund since 2008.
To view the Zacks Rank and past performance of all energy mutual funds, then click here.
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.
Read the full analyst report on VGENX
Read the full analyst report on JINRX
Read the full analyst report on CGAEX
Read the full analyst report on IGNAX
Read the full analyst report on FSTEX
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| Market Summary | May 26, 2012 17:39 pm ET |
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