Top 5 Best Performing Utilities Mutual Funds Year to Date

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During difficult economic conditions, the demand for essential services such as utilities remains more or less constant. Since this category of funds protects investments during a downturn, they are viewed as a defensive choice, and have gained strength in current market conditions. They are also an excellent choice for investors seeking a steady income flow from consistent dividends yields. Investments in this sector are usually considered to be a conservative investment option. However, many utilities funds are now venturing into emerging markets and provide 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

American Century Utilities

#1 Strong Buy

10.2%

Franklin Utilities A

#1 Strong Buy

9.3%

ProFunds Utilities UltraSector

#1 Strong Buy

9.0%

Fidelity Select Utilities

#1 Strong Buy

8.9%

Fidelity Advisor Utilities A

#1 Strong Buy

8.8%

 
American Century Utilities (BULIX) seeks current income and capital appreciation. The fund invests the majority of its assets in securities listed on at least one index made up entirely of electricity, natural gas, cable television, water or sanitation services companies. The utilities mutual fund has a three year annualized return of 14.17%.

Lynette Pang is the fund manager and has managed this utilities mutual fund since 2010.

Franklin Utilities A (FKUTX) concentrates on purchasing securities of public utilities companies. These are those companies that provide electricity, gas, water and communication services. More than 25% of its assets are invested in the utilities sector. The fund focuses on acquiring equity securities, primarily common stocks. The utilities mutual fund has a three year annualized return of 15.42%.

As of June 2012, this utilities mutual fund held 58 issues, with 4.25% of its total assets invested in Southern Co.

ProFunds Utilities UltraSector (UTPIX) seeks to provide 150% of the daily return of the Dow Jones U.S. Utilities Index. It invests in equity securities and derivatives which provide identical returns. The balance of the fund’s assets are utilised to purchase money market securities. The utilities mutual fund is non-diversified and has returned 18.69% over the last one year period.

The utilities mutual fund has an expense ratio of 1.54% compared to a category average of 1.28%.

Fidelity Select Utilities (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 utilities mutual fund has a three year annualized return of 14.4%.

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

Fidelity Advisor Utilities A (FUGAX) seeks capital growth. The fund 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 14.15%.

The utilities mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.20% compared to a category average of 1.28%.

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 BULIX

Read the analyst report on FKUTX

Read the analyst report on UTPIX

Read the analyst report on FSUTX

Read the analyst report on FUGAX

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