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, investors can click here to see the complete list of funds.
Waddell & Reed Energy A (WEGAX) invests a large portion of its assets in companies whose primary operations are related to the energy industry. The fund may invest all of its assets in foreign securities. It invests assets in a mix of value and growth companies which may include firms from the emerging markets. The energy mutual fund returned 14.60% over the last one year period. David P. Ginther is the fund manager and has managed the fund since 2006.
Guinness Atkinson Global Energy (GAGEX) invests heavily in equity securities of domestic and foreign companies engaged in exploration, discovery and distribution of energy as well as production of alternative energy. The non-diversified mutual fund has returned 13.66% in the last one year period.
The energy mutual fund has an expense ratio of 1.34% as compared to the category average of 1.60%.
Rydex Series Trust Energy (RYEIX) seeks capital growth. It invests almost all of its assets in domestic energy companies and derivatives. It invests small to mid-cqap companies and may also buy American Depositary Receipts for exposure to non-US energy firms. The non-diversified mutual fund has returned 9.13% in the last one year period.
As of January 2014, this energy mutual fund held 99 issues with 5.61% of its assets invested in Exxon Mobil Corporation.
Calvert Global Alternative Energy A (CGAEX) seeks capital appreciation over the long term. It invests a lion’s share in domestic and foreign companies whose primary operations are related to the alternative energy sector. At least 25% of its total assets are invested in the alternative energy industry. The non-diversified fund has returned 23.92% in the last one year period.
Treasa Ni Chonghaile is the fund manager and has managed the fund since 2007.
JHancock Natural Resources 1 (JINRX) seeks total return over the long term. The fund invests heavily in equity and related securities of global companies that are related to the natural resources industry, including those from emerging markets. Investments are focused on those companies which can profit from the future demand growth of natural resources. The energy mutual fund returned -0.43% in the last one year period.
The energy mutual fund has an expense ratio of 1.11% as compared to the category average of 1.53%.
To view the Zacks Rank and past performance of all energy mutual funds, investors click here to see the complete list of funds.
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