This is our short term rating system that serves as a timeliness indicator for stocks over the next 1 to 3 months. How good is it? See rankings and related performance below.
|Zacks Rank||Definition||Annualized Return|
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Utilities funds are an excellent choice for investors seeking a steady income flow. Such funds are also used as defensive instruments, which protect investor capital 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 - MF report) seeks capital growth over the long term. The fund invests a large share 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 15.34%.
The utilities mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.45% compared to a category average of 1.29%.
Gabelli Utilities AAA (GABUX - MF report) invests a majority of its assets in utilities companies. The fund focuses on acquiring securities of firms providing electricity, gas and water services or equipment for these industries. Not more than 40% of its assets are utilized to purchase foreign securities. The utilities mutual fund has a three year annualized return of 15.97%.
As of March 2012, this utilities mutual fund held 281 issues, with 3.59% of its total assets invested in National Fuel Gas Company.
Rydex Utilities (RYAUX - MF report) seeks capital appreciation. The fund invests the majority of its assets in utilities companies whose securities are traded in the US. It focuses on purchasing equity securities and may also invest in derivatives. The utilities mutual fund has a three year annualized return of 16.36%.
Michael P. Byrum is the fund manager and he has managed this utilities mutual fund since 2000.
Putnam Global Utilities A (PUGIX - MF report) invests primarily in utility companies worldwide. The fund concentrates on investing in large and mid-sized firms, but may also consider smaller companies. It seeks both capital appreciation and current income. The utilities mutual fund has a three year annualized return of 7.21%.
The utilities mutual fund has a minimum initial investment of $500 and an expense ratio of 1.28% compared to a category average of 1.29%.
ProFunds Utilities UltraSector (UTPIX - MF report) seeks to provide 150% of the daily return of the Dow Jones U.S. Utilities Index by investing in equity securities and derivatives with identical daily returns. The balance of the fund’s assets is utilized to purchase money market securities. The utilities mutual fund has a three year annualized return of 22.86%.
Hratch S. Najarian is the fund manager and he has managed this utilities mutual fund since 2011.
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.
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