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Energy Mutual Funds Gain Momentum Amid the Iran War
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Energy mutual funds are attracting increasing investor attention as global markets navigate heightened geopolitical tensions, particularly the ongoing conflict involving Iran. Historically, the energy sector has performed well during periods of geopolitical instability because such events often disrupt global oil supply and push crude prices higher. The current situation in the Middle East has reinforced that pattern, placing energy-focused investment funds back in the spotlight.
The Iran war has had a direct impact on global energy markets. Iran sits close to the Strait of Hormuz, a critical shipping route through which roughly one-fifth of the world’s oil supply passes. Any military escalation or disruption in this narrow waterway can significantly affect global oil flows and trigger price spikes in crude markets. With Iran currently blockading the Strait, oil prices have surged sharply.
These higher oil prices typically translate into improved earnings for oil and gas producers, which are the primary holdings of energy mutual funds. Recent geopolitical developments have also created a “war risk premium” in oil prices, meaning traders are willing to pay extra for crude because of supply uncertainty. As a result, energy-focused mutual funds have delivered strong returns over the past year and are increasingly viewed by investors as a strategic way to gain exposure to rising oil prices during periods of global conflict and energy market volatility.
Hence, astute investors should now invest in energy mutual funds having oil companies as their major holdings. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio.
Goldman Sachs MLP Energy Infrastructure Fund (GLPAX - Free Report) primarily invests in global energy infrastructure securities, focusing on the energy sector while allowing limited exposure to other infrastructure companies. As of January 2026, 52% of the fund was invested in the energy sector.
Christopher A Schiesser has been the lead manager of GLPAX since 2023. Three major holdings for the fund are 12.9% in MPLX, 12.6% in Energy Transfer and 9.5% in Enterprise Products Partners.
GLPAX’s 3-year and 5-year annualized returns are 17% and 23%, respectively. Its net expense ratio is 0.1%. GLPAX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
T. Rowe Price New Era (PRNEX - Free Report) invests the majority of its assets in common stocks of companies in the natural resource sector, the earnings and tangible assets of which may benefit from periods of accelerating inflation. As of January 2026, 45.3% of the fund was invested in the energy sector.
Shinwoo Kim has been the lead manager of PRNEX since 2021. Three top holdings for the fund are 4.4% in Shell plc, 4.3% in Chevron and 3.8% in Exxon Mobil.
PRNEX’s 3-year and 5-year annualized returns are 10.1% and 13.7%, respectively. Its net expense ratio is 0.79%. PRNEX has a Zacks Mutual Fund Rank #1.
Fidelity Select Energy Portfolio (FSENX - Free Report) seeks capital appreciation by investing most of its assets in common stocks of companies principally engaged in the energy field, including the conventional areas of oil, gas, electricity and coal, and newer sources of energy. As of January 2026, 83.2% of the fund was invested in the energy sector.
Kristen Dougherty has been the lead manager of FSENX since 2024. Three major holdings for the fund are 24.6% in Exxon Mobil, 8.9% in Chevron and 5.3% in Marathon Petroleum.
FSENX’s 3-year and 5-year annualized returns are 8.5% and 26.6%, respectively. Its net expense ratio is 0.65%. FSENX has a Zacks Mutual Fund Rank #2.
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Energy Mutual Funds Gain Momentum Amid the Iran War
Energy mutual funds are attracting increasing investor attention as global markets navigate heightened geopolitical tensions, particularly the ongoing conflict involving Iran. Historically, the energy sector has performed well during periods of geopolitical instability because such events often disrupt global oil supply and push crude prices higher. The current situation in the Middle East has reinforced that pattern, placing energy-focused investment funds back in the spotlight.
The Iran war has had a direct impact on global energy markets. Iran sits close to the Strait of Hormuz, a critical shipping route through which roughly one-fifth of the world’s oil supply passes. Any military escalation or disruption in this narrow waterway can significantly affect global oil flows and trigger price spikes in crude markets. With Iran currently blockading the Strait, oil prices have surged sharply.
These higher oil prices typically translate into improved earnings for oil and gas producers, which are the primary holdings of energy mutual funds. Recent geopolitical developments have also created a “war risk premium” in oil prices, meaning traders are willing to pay extra for crude because of supply uncertainty. As a result, energy-focused mutual funds have delivered strong returns over the past year and are increasingly viewed by investors as a strategic way to gain exposure to rising oil prices during periods of global conflict and energy market volatility.
Hence, astute investors should now invest in energy mutual funds having oil companies as their major holdings. Mutual funds, in general, reduce transaction costs and diversify portfolios without an array of commission charges that are mostly associated with stock purchases (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
We have thus selected three mutual funds that boast a Zacks Mutual Fund Rank #1 (Strong Buy), 2 (Buy), have positive three-year and five-year annualized returns, minimum initial investments within $5000 and carry a low expense ratio.
Goldman Sachs MLP Energy Infrastructure Fund (GLPAX - Free Report) primarily invests in global energy infrastructure securities, focusing on the energy sector while allowing limited exposure to other infrastructure companies. As of January 2026, 52% of the fund was invested in the energy sector.
Christopher A Schiesser has been the lead manager of GLPAX since 2023. Three major holdings for the fund are 12.9% in MPLX, 12.6% in Energy Transfer and 9.5% in Enterprise Products Partners.
GLPAX’s 3-year and 5-year annualized returns are 17% and 23%, respectively. Its net expense ratio is 0.1%. GLPAX has a Zacks Mutual Fund Rank #1. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
T. Rowe Price New Era (PRNEX - Free Report) invests the majority of its assets in common stocks of companies in the natural resource sector, the earnings and tangible assets of which may benefit from periods of accelerating inflation. As of January 2026, 45.3% of the fund was invested in the energy sector.
Shinwoo Kim has been the lead manager of PRNEX since 2021. Three top holdings for the fund are 4.4% in Shell plc, 4.3% in Chevron and 3.8% in Exxon Mobil.
PRNEX’s 3-year and 5-year annualized returns are 10.1% and 13.7%, respectively. Its net expense ratio is 0.79%. PRNEX has a Zacks Mutual Fund Rank #1.
Fidelity Select Energy Portfolio (FSENX - Free Report) seeks capital appreciation by investing most of its assets in common stocks of companies principally engaged in the energy field, including the conventional areas of oil, gas, electricity and coal, and newer sources of energy. As of January 2026, 83.2% of the fund was invested in the energy sector.
Kristen Dougherty has been the lead manager of FSENX since 2024. Three major holdings for the fund are 24.6% in Exxon Mobil, 8.9% in Chevron and 5.3% in Marathon Petroleum.
FSENX’s 3-year and 5-year annualized returns are 8.5% and 26.6%, respectively. Its net expense ratio is 0.65%. FSENX has a Zacks Mutual Fund Rank #2.
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 >>