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|
|Meeder Utilities and Infrastructure||#5 Strong Sell||16.98%|
|ProFunds Utilities UltraSector||#3 Hold|| 13.49% |
|American Century Utilities||#3 Hold|| 11.84% |
|Fidelity Select Utilities||#3 Hold|| 10.99% |
|Fidelity Advisor Utilities A||#1 Strong Buy|| 10.75% |
The utilities mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.89% compared to a category average of 1.20%.
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 15.48%.
Hratch Najarian is the fund manager and has managed this utilities mutual fund since 2011.
American Century Utilities (BULIX) invests a large share of its assets is in companies whose primary operations are involved in the utility sector. Quantitative and qualitative techniques are used to identify the company for investment. The utilities mutual fund has a three year annualized return of 13.09%.
The utilities mutual fund has a minimum initial investment of $2,500 and an expense ratio of 0.68% compared to a category average of 1.20%.
Fidelity Select Utilities (FSUTX) seeks 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 12.95%.
As of August 2013, this utilities mutual fund held 27 issues, with 7.94% 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 12.59%.
Douglas Simmons is the fund manager and has managed this utilities mutual fund since 2006.
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 RankRead the analyst report on FLRUXRead the analyst report on UTPIXRead the analyst report on BULIXRead the analyst report on FSUTXRead the analyst report on FUGAXZacks Investment Research
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