5 Best Performing Utilities Mutual Funds Year to Date

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Even during difficult economic conditions, the demand for essential services such as utilities remains more or less constant. This is why utilities funds are an excellent choice for investors who are seeking a steady income flow through consistent yields from dividends. In fact, investments in this sector are usually considered to be a conservative investment option. Moreover, in the past utilities funds have ventured into emerging markets and provided appreciably higher returns at relatively lower levels of risk.

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, investors can click here to see the complete list of funds.

Mutual Fund

Zacks Rank

Total Return YTD

ProFunds Utilities UltraSector

#1 Strong Buy

29.93%

Fidelity Select Utilities Portfolio

#1 Strong Buy

19.96%

 

Vanguard Utilities Index

#2 Buy

19.87%

 

Fidelity Advisor Utilities A

#1 Strong Buy

19.78%

 

Rydex Utilities Advisor

#2 Buy

19.16%

 

 

ProFunds Utilities UltraSector (UTPIX) seeks to provide 150% of the daily return of the Dow Jones U.S. Utilities Index by investing in equity securities and derivatives with identical daily returns. The balance of the fund’s assets is utilized to purchase money market securities. The utilities mutual fund has a three year annualized return of 20.94%.

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

Fidelity Select Utilities Portfolio (FSUTX) invests the majority of its assets in utility companies or those deriving a large share of their revenues from operations in this sector. The fund focuses in acquiring common stocks. The fund may invest in both domestic and foreign instruments. The utilities mutual fund has a three year annualized return of 16.69%.

The utilities mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.84% compared to a category average of 1.23%.

Vanguard Utilities Index Fund Admiral Shares (VUIAX) seeks to return performance identical to the benchmarks index. The fund invests all its assets in stocks that constitute the MSCI U.S. Investable Market Index (IMI)/ Utilities 25/50. This index consists of companies from the utilities sector regardless of their market capitalization. The utilities mutual fund has a three year annualized return of 15.74%.

As of March 2013, this utilities mutual fund held 79 issues, with 8.47% of its total assets invested in Duke Energy Corporation.

Fidelity Advisor Utilities A (FUGAX) invests a large share of its assets in firms from the utilities sector as well as those which derive a large share of revenues from related operations. It purchases both domestic and foreign securities. The utilities mutual fund has a three year annualized return of 16.31%.

Douglas Simmons is the fund manager has managed this utilities mutual fund since 2006.

Rydex Utilities Advisor (RYAUX) seeks capital growth. The fund invests the majority of its assets in equity securities of utilities firms traded on domestic exchanges as well as derivatives. It focusses on investing in small to mid-sized companies. The utilities mutual fund has a three year annualized return of 14.27%.

The utilities mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.84% compared to a category average of 1.23%.

To view the Zacks Rank and past performance of all utilities mutual funds, investors can click here to see the complete list of funds.

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.

Read the analyst report on UTPIX

Read the analyst report on FSUTX

Read the analyst report on VUIAX

Read the analyst report on FUGAX

Read the analyst report on RYAUX

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