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Top 5 Best Performing Utility Mutual Funds Year to Date

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Utilities funds have been traditionally viewed as defensive investments which protect investments during difficult market conditions. Since the demand for these services remains constant over market cycles, such funds are ideal for those seeking a steady flow of current income through consistent dividend yields. In recent years many funds in this category have increased their exposure to emerging markets and have added unregulated utilities companies in their portfolio. This has led to higher returns and an increase in volatility. However, investors who are relatively risk averse can continue to rely on these funds for regular dividends over time.

Below we will share with you the 5 best performing utilities mutual funds year to date. To view the Zacks Rank and past performance of all utilities funds, then click here.

Mutual Fund Zacks Rank Total Return YTD
ProFunds Utlities Ultra Sector #1 Strong Buy 11.6%
Franlin Utilities A #1 Strong Buy 9.9%
Vanguard Utilities Index #1 Strong Buy 9.4%
Invesco Utilities Investor #1 Strong Buy 9.1%
Rydex Utilities #1 Strong Buy 7.6%

ProFunds Utilities UltraSector (UTPIX - Free Report) seeks to provide 150% of the daily return of the Dow Jones U.S. Utilities Index. It invests in equity securities and derivatives which provide identical returns. The balance of the fund’s assets are utilised to purchase money market securities. The utilities mutual fund is non-diversified and has returned 14.61% over the last one year period.

Hratch S. Najarian is the fund manager has managed this utilities mutual fund since 2011.

Franklin Utilities A (FKUTX - Free Report) concentrates on purchasing securities of public utilities companies. More than 25% of its assets are invested in companies that provide electricity, gas, water and communication services. The fund focuses on acquiring equity securities, primarily common stocks. The utilities mutual fund has a ten year annualized return of 7.97%.

As of September 2011, this utilities mutual fund held 54 issues, with 4.69% of its total assets invested in Southern Co.

Vanguard Utilities Index (VUIAX - Free Report) seeks to track the performance of the MSCI U.S. Investable Market Utilities Index. This index consists of companies in the utilities sector regardless of their market capitalization. Electric, gas and water utility companies as well as producers and distributors of power are all part of this index. This utilities mutual fund has a five year annualized return of 3.74%.

The utilities mutual fund has an expense ratio of 0.24% compared to a category average of 1.39%.

Invesco Utilities Investor (FSTUX - Free Report) invests the majority of its assets in stocks of companies in the utilities sector or related industries. Firms engaged in the production and distribution of gas and electricity as well as those providing telecom services constitutes its major investments. This utilities mutual fund has a three year annualized return of 4.83%.

Meggan Walsh is the fund manager has managed this utilities mutual fund since 2009.

Rydex Utilities (RYAUX - Free Report) seeks capital growth. The fund invests a large share of its assets in utilities companies whose securities are traded in the US. It focuses on purchasing equity securities and may also invest in derivatives. This utilities mutual fund returned 10.11% over the last one year period.

The utilities mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.87% compared to a category average of 1.39%.

To view the Zacks Rank and past performance of all utilities mutual funds, then click here.

About Zacks Mutual Fund Rank

By applying the Zacks Rank to mutual funds, investors can find funds that not only outpaced the market in the past but are also expected to outperform going forward. Learn more about the Zacks Mutual Fund Rank at https://www.zacks.com/funds



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