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Grab These 3 Energy Mutual Funds for Impressive Returns

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The recent war between Israel and the Palestine-based militant group Hamas has affected the global supply chain. Also, the prevailing war between Russia and Ukraine has prompted several governments, including the Biden administration, to impose sanctions on Russian oil and energy. Crude prices have gone up on supply concerns from Russia, which is one of the world’s biggest producers of the commodity. Prices have risen further after the U.S. government imposed a ban on the import of oil and other energy products.

Geopolitical tensions are likely to keep markets volatile for some time, with the energy sector making the most of the opportunity. So, investing in funds with exposure to energy equities is likely to help in the near term.

Below, we share with you three energy mutual funds, viz., Invesco Steelpath Mlp Alpha Fund (MLPAX - Free Report) , Vanguard Energy Fund (VGENX - Free Report) and Franklin Natural Resources (FRNRX - Free Report) . Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of energy mutual funds.

Invesco Steelpath Mlp Alpha Fund invests most of its assets, along with borrowings, if any, in the master limited partnership of companies, which are engaged in the transportation, storage, processing, refining, marketing, exploration, production, and mining of minerals and natural resources. MLPAX advisors also invest in derivatives and other instruments with similar economic characteristics in the same industry.

Invesco Steelpath Mlp Alpha Fund has three-year annualized returns of 26%. As of November 2024, MLPAX held 21 issues, with 14.1% of its assets invested in Energy Transfer.

Vanguard Energy Fund invests most of its net assets in common stocks of companies that are engaged in the energy industry. VGENX advisors prefer to invest in companies involved in exploration, production, transmission, energy research and conservation and pollution control.

Vanguard Energy Fund has three-year annualized returns of 12.8%. VGENX has an expense ratio of 0.44%.

Franklin Natural Resources fund invests most of its net assets in equity and debt securities of smaller-capitalization companies in the natural resources sector. FRNRX advisors may also invest a small portion of its net assets in equity or debt securities of any type of issue.

Franklin Natural Resources fund has three-year annualized returns of 7.1%. Steve M. Land has been one of the fund managers of FRNRX since April 1999.

To view the Zacks Rank and the past performance of all energy mutual funds, investors can click here to see the complete list of energy mutual funds.

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