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3 Top-Ranked Energy Mutual Funds to Buy for Attractive Returns

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Oil mutual funds present an attractive opportunity in the current scenario. With global energy demand steadily rebounding, oil prices remain well-supported despite market volatility. Geopolitical tensions, supply constraints from OPEC+ cuts and underinvestment in new oil projects have created a favorable supply-demand imbalance. At the same time, inflationary pressures make commodities, including oil, a strong hedge against eroding purchasing power.

In an inflationary environment, oil serves as a good hedge. While the long-term trend is toward clean energy, the transition will take decades, ensuring oil remains vital for the global economy. Oil mutual funds offer a way to invest in this critical sector and benefit from strong company earnings, dividends and share buybacks without the risk of picking individual stocks. For investors seeking growth, diversification and inflation protection, oil mutual funds offer a timely and strategic investment choice in today’s uncertain economic environment.

Below, we share with you three top-ranked energy mutual funds, viz., Victory Global Energy Transition Fund (RSNRX - Free Report) , Vanguard Specialized Portfolios Energy Fund (VGENX - Free Report)  and Fidelity Natural Resources Fund (FNARX - 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.

Victory Global Energy Transition Fund invests most of its net assets in domestic and foreign companies that its sub-advisors SailingStone Capital Partners LLC, believe are principally engaged in natural resources industries. RSNRX is a non-diversified fund.

Victory Global Energy Transition Fund has three-year annualized returns of 24.3%. As of the end of September 2025, RSNRX had 25 issues and invested 12.8% of its net assets in Compass Minerals International.

Vanguard Specialized Portfolios 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 Specialized Portfolios Energy Fund has three-year annualized returns of 15.5%. VGENX has an expense ratio of 0.45%.

Fidelity Natural Resources Fund invests most of its assets, along with borrowings, if any, in equity securities of domestic and foreign companies principally engaged in owning or developing natural resources, or supplying goods and services to such companies, and in precious metals. FNARX advisors choose to invest in issues based on fundamental analysis factors such as financial condition, industry position, as well as market and economic conditions.

Fidelity Natural Resources Fund has three-year annualized returns of 13.9%. Ashley Fernandes has been the fund manager of FNARX since January 2021.

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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