Energy is seldom absent from news headlines and is a major issue of controversy and concern for governments and private enterprise alike. Whether it is the BP disaster in Mexico or updates on OPEC decisions, experts and individual investors alike wait with bated breath to know how such events will effect investments in this sector. In the last five-year period energy funds have performed almost twice as well as the nearest domestic equity fund category. Despite the fact that these instruments carry a higher degree of risk, investors looking for higher returns would do well to consider mutual funds from thus category.
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.
Putnam Global Natural Resources A (EBERX) primarily invests in common stocks of energy and natural resources companies across the world. It focuses on acquiring value stocks and invests in large and mid-cap companies. The energy mutual fund returned 17.47% over the last one year period.
The fund manager is John Morgan and he has managed this energy mutual fund since 2008.
Vanguard Energy (VGENX) seeks long term capital appreciation. The majority of its assets are used to purchase common stocks of companies whose primary activities are energy related. This energy mutual fund has a ten year annualized return of 14.16%.
The energy mutual fund has an expense ratio of 0.38% compared to a category average of 1.72%.
BlackRock Energy & Resources (SSGRX) invests a large share of its assets 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 24.57% over the last one year and has a ten year annualized return of 18.37%.
As of September 2010, this energy mutual fund held 130 issues, with 5.53% of its total assets invested in Massey Energy Company.
U.S. Global Investors Global Resources (PSPFX) seeks capital appreciation and protection of capital against inflation and currency fluctuations. The majority of its assets are invested in securities of companies from the natural resources sector. It purchases common and preferred stock, convertible securities, rights and warrants, and depository receipts. The energy mutual fund has a five year annualized return of 8.48%.
The fund manager is Frank Holmes and he has managed this energy mutual fund since 1999.
JHancock2 Natural Resources 1 (JINRX) invests heavily in equity and related securities of companies across the world whose primary operations involve natural resources. The fund selects firms which are expected to gain from increasing demand for natural resources and related products and services. The energy mutual fund returned 14.88% over the last one year period.
The energy mutual fund has an expense ratio of 1.11% compared to a category average of 1.54%.
To view the Zacks Rank and past performance of all energy mutual funds, then click here.