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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.
Many funds in this category have increased their exposure to emerging markets and unregulated companies in recent years. Though this strategy has increased the risk involved, it has also generated higher returns.
PGIM Jennison Utility Fund- Class Z seeks capital appreciation by investing most of its net assets along with borrowings, if any in equity or equity-related securities of utility companies. PRUZX advisors also invest in investment-grade debt securities in such companies as well.
PGIM Jennison Utility Fund- Class Z has a three-year annualized return of 12.4%. As of the end of November 2021, PRUZX held 43 issues with 9.95% of its assets invested in NextEra Energy Inc.
Fidelity Select Utilities Portfolio fund invests most of its net assets in common stocks of foreign and domestic companies primarily engaged in the utility industry or companies that get a majority of their revenues from their utility operations. FSUTX advisors choose to invest in stocks based on fundamental analysis factors such as financial condition, industry position, market, and economic conditions.
Fidelity Select Utilities Portfolio fund has three-year annualized returns of 11.9%. FSUTX has an expense ratio of 0.76% compared with the category average of 0.94%.
Cohen & Steers Global Infrastructure Fund, Inc. Class Z seeks capital appreciation by investing most of its net assets in common stocks of US-based infrastructure companies consisting of utilities, pipelines, toll roads, airports, railroads, marine ports, and telecommunications. CSUZX may choose to invest a small portion of its net assets in securities of companies doing a substantial business outside the United States.
Cohen & Steers Global Infrastructure Fund, Inc. Class Z has returned 9.5% in the past three years. Benjamin Morton has been one of the fund managers of CSUZX since April of 2008.
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3 Top Utility Sector Funds Worth Betting On
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.
Many funds in this category have increased their exposure to emerging markets and unregulated companies in recent years. Though this strategy has increased the risk involved, it has also generated higher returns.
Below we share with you three Utility sector mutual funds, namely, PGIM Jennison Utility Fund- Class Z (PRUZX - Free Report) , Fidelity Select Utilities Portfolio (FSUTX - Free Report) , and Cohen & Steers Global Infrastructure Fund, Inc. Class Z (CSUZX - Free Report) . Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform peers in the future. Investors can click here to see the complete list of funds.
PGIM Jennison Utility Fund- Class Z seeks capital appreciation by investing most of its net assets along with borrowings, if any in equity or equity-related securities of utility companies. PRUZX advisors also invest in investment-grade debt securities in such companies as well.
PGIM Jennison Utility Fund- Class Z has a three-year annualized return of 12.4%. As of the end of November 2021, PRUZX held 43 issues with 9.95% of its assets invested in NextEra Energy Inc.
Fidelity Select Utilities Portfolio fund invests most of its net assets in common stocks of foreign and domestic companies primarily engaged in the utility industry or companies that get a majority of their revenues from their utility operations. FSUTX advisors choose to invest in stocks based on fundamental analysis factors such as financial condition, industry position, market, and economic conditions.
Fidelity Select Utilities Portfolio fund has three-year annualized returns of 11.9%. FSUTX has an expense ratio of 0.76% compared with the category average of 0.94%.
Cohen & Steers Global Infrastructure Fund, Inc. Class Z seeks capital appreciation by investing most of its net assets in common stocks of US-based infrastructure companies consisting of utilities, pipelines, toll roads, airports, railroads, marine ports, and telecommunications. CSUZX may choose to invest a small portion of its net assets in securities of companies doing a substantial business outside the United States.
Cohen & Steers Global Infrastructure Fund, Inc. Class Z has returned 9.5% in the past three years. Benjamin Morton has been one of the fund managers of CSUZX since April of 2008.
To view the Zacks Rank and past performance of all Utility Sector Mutual Funds, investors can click here to see the complete list of funds.
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