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Attacks on crucial Saudi Arabian oil facilities on Sep 14 disrupted the kingdom’s oil capacity by half, making oil prices jump their highest in decades. As Saudi Arabia is one of the largest oil producers and exporters worldwide, the impact of this disruption will be felt ahead especially in oil prices.
Therefore mutual fund investors, seeking to take advantage of oil’s recent spike, should consider investing in a couple of energy mutual funds.
Saudi Attacks Push Oil Prices Up
Crude oil futures moved north after coordinated strikes on key oil facilities in Saudi Arabia affected production of about 5.7 million barrels a day of crude oil and gas. The projectile attacks affected as much as 5% of global daily oil output and raised fears over the world’s oil supplies.
Yemen’s Houthi rebels — who are aligned with Iran — claimed responsibility for the attack. This further raised tensions between Saudi Arabia and Iran as Houthi rebels have been at war with a Saudi-United Arab Emirates-led coalition since 2015.
Oil prices were almost 15% higher on Sep 16 with West Texas Intermediate (WTI) crude oil futures trading at $62.90 a barrel and Brent crude trading at $69.02 a barrel. West Texas Intermediate registered its biggest one-day percentage rise since December 2008 and Brent crude registered its largest jump one-day percentage gain since at least 1988.
Our Choices
We have, therefore, selected four mutual funds that invest in energy companies. All of these funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have encouraging year-to-date returns. Additionally, the minimum initial investment is within $5,000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Natural Resources Portfolio (FNARX - Free Report) fund aims for capital growth. The fund invests the majority of its assets in companies that own and develop natural resources or provide goods and services to such companies. The fund mostly invests in common stocks of companies.
This Zacks sector – Energy product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FNARX carries a Zacks Mutual Fund Rank #1. The fund has an annual expense ratio of 0.81%, which is below the category average of 1.40%. The fund has returned 8.8% on a year-to-date basis. FNARX has no minimum initial investment.
Advisory Research MLP & Energy Income Fund Class A (INFRX - Free Report) aims for current income and capital appreciation over a long period. The non-diversified fund invests the majority of its assets in equity and debt securities of master limited partnerships that mainly focus on the energy infrastructure sector.
This Zacks sector – Energy product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
INFRX carries a Zacks Mutual Fund Rank #1. The fund has an annual expense ratio of 1.41%, which is below the category average of 1.88%. The fund has returned 11.2% on a year-to-date basis. INFRX has minimum initial investment of $2500.
T. Rowe Price New Era Fund (PRNEX - Free Report) seeks long-term capital appreciation. The fund invests the majority of its assets in common stocks of companies that own or develop natural resources. The fund also invests in other basic commodities and stocks of selected non-resource growth companies.
This Zacks sector – Energy product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRNEX carries a Zacks Mutual Fund Rank #1. The fund has an annual expense ratio of 0.69%, which is below the category average of 1.37%. The fund has returned 5.3% on a year-to-date basis. PRNEX has minimum initial investment of $2500.
BlackRock Natural Resources Trust Investor A Shares (MDGRX - Free Report) fund aims for capital appreciation over a long period. The fund invests the majority of its assets in equity securities with considerable natural resource assets.
This Zacks sector – Energy product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
MDGRX carries a Zacks Mutual Fund Rank #2. The fund has an annual expense ratio of 1.18%, which is below the category average of 1.37%. The fund has returned 9.8% on a year-to-date basis. MDGRX has minimum initial investment of $1000.
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4 Energy Funds to Gain From Oil's Ascent
Attacks on crucial Saudi Arabian oil facilities on Sep 14 disrupted the kingdom’s oil capacity by half, making oil prices jump their highest in decades. As Saudi Arabia is one of the largest oil producers and exporters worldwide, the impact of this disruption will be felt ahead especially in oil prices.
Therefore mutual fund investors, seeking to take advantage of oil’s recent spike, should consider investing in a couple of energy mutual funds.
Saudi Attacks Push Oil Prices Up
Crude oil futures moved north after coordinated strikes on key oil facilities in Saudi Arabia affected production of about 5.7 million barrels a day of crude oil and gas. The projectile attacks affected as much as 5% of global daily oil output and raised fears over the world’s oil supplies.
Yemen’s Houthi rebels — who are aligned with Iran — claimed responsibility for the attack. This further raised tensions between Saudi Arabia and Iran as Houthi rebels have been at war with a Saudi-United Arab Emirates-led coalition since 2015.
Oil prices were almost 15% higher on Sep 16 with West Texas Intermediate (WTI) crude oil futures trading at $62.90 a barrel and Brent crude trading at $69.02 a barrel. West Texas Intermediate registered its biggest one-day percentage rise since December 2008 and Brent crude registered its largest jump one-day percentage gain since at least 1988.
Our Choices
We have, therefore, selected four mutual funds that invest in energy companies. All of these funds carry a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy). Moreover, these funds have encouraging year-to-date returns. Additionally, the minimum initial investment is within $5,000.
We expect these funds to outperform their peers in the future. Remember, the goal of the Zacks Mutual Fund Rank is to guide investors to identify potential winners and losers. Unlike most of the fund-rating systems, the Zacks Mutual Fund Rank is not just focused on past performance, but also on the likely future success of the fund.
The question here is: why should investors consider mutual funds? Reduced transaction costs and diversification of portfolio without several commission charges that are associated with stock purchases are primarily why one should be parking money in mutual funds (read more: Mutual Funds: Advantages, Disadvantages, and How They Make Investors Money).
Fidelity Select Natural Resources Portfolio (FNARX - Free Report) fund aims for capital growth. The fund invests the majority of its assets in companies that own and develop natural resources or provide goods and services to such companies. The fund mostly invests in common stocks of companies.
This Zacks sector – Energy product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
FNARX carries a Zacks Mutual Fund Rank #1. The fund has an annual expense ratio of 0.81%, which is below the category average of 1.40%. The fund has returned 8.8% on a year-to-date basis. FNARX has no minimum initial investment.
Advisory Research MLP & Energy Income Fund Class A (INFRX - Free Report) aims for current income and capital appreciation over a long period. The non-diversified fund invests the majority of its assets in equity and debt securities of master limited partnerships that mainly focus on the energy infrastructure sector.
This Zacks sector – Energy product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
INFRX carries a Zacks Mutual Fund Rank #1. The fund has an annual expense ratio of 1.41%, which is below the category average of 1.88%. The fund has returned 11.2% on a year-to-date basis. INFRX has minimum initial investment of $2500.
T. Rowe Price New Era Fund (PRNEX - Free Report) seeks long-term capital appreciation. The fund invests the majority of its assets in common stocks of companies that own or develop natural resources. The fund also invests in other basic commodities and stocks of selected non-resource growth companies.
This Zacks sector – Energy product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
PRNEX carries a Zacks Mutual Fund Rank #1. The fund has an annual expense ratio of 0.69%, which is below the category average of 1.37%. The fund has returned 5.3% on a year-to-date basis. PRNEX has minimum initial investment of $2500.
BlackRock Natural Resources Trust Investor A Shares (MDGRX - Free Report) fund aims for capital appreciation over a long period. The fund invests the majority of its assets in equity securities with considerable natural resource assets.
This Zacks sector – Energy product has a history of positive total returns for more than 10 years. To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
MDGRX carries a Zacks Mutual Fund Rank #2. The fund has an annual expense ratio of 1.18%, which is below the category average of 1.37%. The fund has returned 9.8% on a year-to-date basis. MDGRX has minimum initial investment of $1000.
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 >>