With every passing year, the world’s appetite for energy continues to increase steadily. Governments and corporations alike are therefore constantly on the lookout for new energy sources or more efficient technology in this domain. For fast growing economies such as China and India, the situation is even more acute. Thus, prices of these invaluable resources are surging and investors could benefit from the situation by investing in the energy industry. Energy mutual funds are a superior option for forays into the industry as they reduce risks involved by holding widely diversified portfolios.
Below we will share with you 5 top rated energy mutual funds. Each has earned a Zacks #1 Rank (Strong Buy) as we expect these mutual funds to outperform their peers in the future. To view the Zacks Rank and past performance of all energy funds, then click here.
BlackRock Energy & Resources (SSGRX) seeks capital appreciation over the long term. The majority of the fund’s assets are invested in energy and natural resources firms worldwide. It also invests in companies in related sectors as well as in utilities. This energy mutual fund returned 13.93% over the last one year and has a ten year annualized return of 18.4%.
The fund manager is Daniel J. J Rice, III and he has managed this energy mutual fund since 1990.
Ivy Energy A (IEYAX) invests at least 80% of its assets in securities issued by energy companies. Companies engaged in exploration, discovery, production and distribution of energy constitute the fund’s major investments. The energy mutual fund returned 10.92% over the last one year period.
The energy mutual fund has a minimum initial investment of $500 and an expense ratio of 1.60% compared to a category average of 1.68%.
Guinness Atkinson Global Energy (GAGEX) seeks long term capital growth. The fund invests heavily in both domestic and foreign companies from the energy sector. It may invest in 25 to 75 companies at any given time. The energy mutual fund is non-diversified and has a five year annualized return of 6.48%.
As of December 2009, this energy mutual fund held 43 issues, with 3.46% of its total assets invested in Canadian Natural Resources, Ltd.
Waddell & Reed Energy A (WEGAX) invests the majority of its assets in equity securities of energy companies. Both domestic and foreign companies from the conventional and alternative energy spheres are considered fro investment purposes. The energy mutual fund returned 11.51% over the last one year period.
The fund manager is David P. Ginther and he has managed this energy mutual fund since 2006.
Fidelity Select Energy Service (FSESX) seeks long term capital growth. The fund invests the majority of its assets in companies from the energy service domain. These companies could provide services to both conventional and alternative energy firms. The energy mutual fund is non-diversified and has a ten year annualized return of 6.42%.
The energy mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.16% compared to a category average of 1.68%.
To view the Zacks Rank and past performance of all energy 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 http://www.zacks.com/funds/mutualfund/
