Investors looking for stable current income would do well to consider utility funds. They are used as defensive instruments, which protect investments 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. Though this strategy has increased the risk involved, it has also generated higher returns.
Below we will share with you 3 top-rated utility mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (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 utilities mutual funds, investors can click here to see the complete list of funds.
Fidelity Select Utilities (FSUTX - Free Report) seeks growth in capital. FSUTX invest the majority of its assets in securities of companies primarily involved in the utilities industry and companies deriving a large portion of their revenues from their utility operations. FSUTX offers dividends & capital gains twice a year in April and December. Fidelity Select Utilities is a non-diversified fund and has a three-year annualized return of 9.2%.
FSUTX has an expense ratio of 0.78% as compared to the category average of 1.12%.
Putnam Global Utilities A invests mostly in common stocks of large and midsize companies across the globe. PUGIX invests a major portion of its assets in securities of companies predominantly involved in the utilities industry. PUGIX seeks capital growth and current income. Dividends are distributed quarterly. Capital gains are distributed annually. Putnam Global Utilities A has a three-year annualized return of 6.2%.
William Rives is the asset manager since May 12, 2017.
Vanguard Utilities Index Admiral (VUIAX - Free Report) seeks to track the performance of the MSCI US Investable Market Index (IMI)/Utilities 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the utilities sector. Vanguard Utilities Index Admiral is a non-diversified fund and has a three-year annualized return of 12.4%.
VUIAX has an expense ratio of 0.1% as compared to the category average of 1.12%.
To view the Zacks Rank and past performance of all utility mutual funds, investors can click here to see the complete list of funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Investors looking for stable current income would do well to consider utility funds. They are used as defensive instruments, which protect investments 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. Though this strategy has increased the risk involved, it has also generated higher returns.
Below we will share with you 3 top-rated utility mutual funds. Each has earned a Zacks Mutual Fund Rank #1 (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 utilities mutual funds, investors can click here to see the complete list of funds.
Fidelity Select Utilities (FSUTX - Free Report) seeks growth in capital. FSUTX invest the majority of its assets in securities of companies primarily involved in the utilities industry and companies deriving a large portion of their revenues from their utility operations. FSUTX offers dividends & capital gains twice a year in April and December. Fidelity Select Utilities is a non-diversified fund and has a three-year annualized return of 9.2%.
FSUTX has an expense ratio of 0.78% as compared to the category average of 1.12%.
Putnam Global Utilities A invests mostly in common stocks of large and midsize companies across the globe. PUGIX invests a major portion of its assets in securities of companies predominantly involved in the utilities industry. PUGIX seeks capital growth and current income. Dividends are distributed quarterly. Capital gains are distributed annually. Putnam Global Utilities A has a three-year annualized return of 6.2%.
William Rives is the asset manager since May 12, 2017.
Vanguard Utilities Index Admiral (VUIAX - Free Report) seeks to track the performance of the MSCI US Investable Market Index (IMI)/Utilities 25/50, an index made up of stocks of large, mid-size, and small U.S. companies within the utilities sector. Vanguard Utilities Index Admiral is a non-diversified fund and has a three-year annualized return of 12.4%.
VUIAX has an expense ratio of 0.1% as compared to the category average of 1.12%.
To view the Zacks Rank and past performance of all utility mutual funds, investors can click here to see the complete list of funds.
Want key mutual fund info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing mutual funds, each week. Get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on VUIAX - FREE
Get the latest research report on FSUTX - FREE