Back to top

Mutual Fund Commentary

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.

Fidelity Select Energy Services (FSESX - MF report) seeks capital growth. The fund invests heavily in common stocks of companies whose primary activities are energy related, including energy services and equipment. It may invest in both domestic and foreign securities. The energy mutual fund has a three year annualized return of 5.56%.

The fund manager is Jonathan Kasen and he has managed this energy mutual fund since 2010.

Invesco Energy (FSTEX - MF report) invests a majority of its assets in securities issued by companies with strong linkages to the energy sector. It focuses on acquiring equity securities and may invest all its assets in foreign securities. The energy mutual fund has a three year annualized return of 3.37%.

The energy mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.12% compared to a category average of 1.66%.

BlackRock Energy & Resources (SSGRX - MF report) seeks capital appreciation over the long term. It invests heavily in energy and natural resources entities worldwide. The fund also invests in companies in related sectors as well as in utilities. The energy mutual fund has a three year annualized return of 2.37%.

As of October 2012, this energy mutual fund held 128 issues, with 5.95% of its total assets invested in Consol Energy Inc.

JHancock2 Natural Resources 1 (JINRX - MF report) invests a large share of its assets in equity and related securities of companies across the world whose primary operations involve natural resources. It focuses on those companies which may generate higher profits from the rising demand of natural resources. The energy mutual fund has a three year annualized return of 0.04%. < P> The fund manager is John C. O’Toole and he has managed this energy mutual fund since 2009.

Ivy Global Natural Resources A (IGNAX - MF report) seeks capital appreciation. It invests heavily in equity securities of companies, whose primary operations are related to natural resources, including suppliers and service providers. It may invest in both foreign and domestic firms whose primary operations are conducted abroad. The energy mutual fund has a three year annualized return of -0.08%. < P> The energy mutual fund has a minimum initial investment of $500 and an expense ratio of 1.41% compared to a category average of 1.47%.

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 http://www.zacks.com/funds.

Please login to Zacks.com or register to post a comment.

If you wish to go to ZacksFunds.com, click OK. If you do not, click Cancel.

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SUPER MICRO… SMCI 27.00 +10.25%
CANADIAN SO… CSIQ 38.34 +8.18%
CENTURY ALU… CENX 26.97 +7.97%
WILLDAN GRO… WLDN 11.38 +5.86%
AROTECH COR… ARTX 3.78 +5.59%