Top 5 Zacks #1 Ranked Energy Mutual Funds

Zacks

Mutual funds investing in energy and natural resources are excellent long term prospects and should be part of all well diversified portfolios. This is borne out by the fact that on many occasions, natural resources funds have outperformed the next closest domestic equity fund category by a huge margin. Most of this success is attributable to the oil and natural gas sectors where fast depleting reserves coupled with rising demand have led to a steady increase in both commodity and stock prices. Energy mutual funds greatly reduce the risk involved in investing in this sector because they hold 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.

Vanguard Energy (VGENX) seeks capital growth over the long term. The fund utilizes the majority of its assets to purchase common stocks of companies whose primary activities are energy related, including energy conservation and pollution control.  The energy mutual fund has a three year annualized return of 22.45%.

The energy mutual fund has a minimum initial investment of $3,000 and an expense ratio of 0.34% compared to a category average of 1.62%.

ProFunds UltraSector Oil & Gas Investor (ENPIX) 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. This energy mutual fund is non-diversified and has a three year annualized return of 28.81%.

As of October 2011, this energy mutual fund held 97 issues, with 16.62% of its total assets invested in Exxon Mobil Corporation.

Fidelity Select Energy Services (FSESX) seeks capital growth. The fund invests a large proportion of its assets in companies from the energy services domain. These companies could provide services to both conventional and alternative energy firms..  The energy mutual fund has a three year annualized return of 29.2%.

The fund manager is Jonathan Kasen and he has managed this energy mutual fund since 2010.

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. The energy mutual fund has a three year annualized return of 21.74%.

The energy mutual fund has an expense ratio of 1.12% compared to a category average of 1.46%.

Nuveen Tradewinds Global Resources A (NTGAX) seeks capital growth over the long term. The fund invests a large proportion of its assets in equity securities of energy and natural resources companies worldwide. The energy mutual fund has a three year annualized return of 27.42%.

The fund manager is Alberto Jimenez Crespo and he has managed this energy mutual fund since 2005.

To view the Zacks Rank and past performance of all energy 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 VGENX

Read the analyst report on ENPIX

Read the analyst report on FSESX

Read the analyst report on JINRX

Read the analyst report on NTGAX



View All Zacks #1 Ranked Mutual Funds

Zacks Investment Research



More From Zacks.com
View Comments