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) seeks capital appreciation. The fund invests the majority of its assets in securities issued by energy companies. Companies engaged in exploration, discovery, production and distribution of energy constitute the fund’s major investments. It may utilize all of its assets to purchase foreign instruments. The energy mutual fund has a three year annualized return of 7.08%.
The fund manager is David P. Ginther and he has managed this energy mutual fund since 2006.
RS Global Natural Resources A (RSNRX) invests heavily in shares of companies primarily engaged in the energy and natural resources business. It invests in minimum at least three different nations. This energy mutual fund has a three year annualized return of 8.63%.
The energy mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.45% compared to a category average of 1.56%.
Vanguard Energy Investor (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 those engaged in energy conservation. The energy mutual fund has a three year annualized return of 5.26%.
As of December 2012, this energy mutual fund held 135 issues, with 8.90% of its total assets invested in Exxon Mobil Corporation.
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 energy mutual fund is non-diversified and has a three year annualized return of 4.28%. The energy mutual fund has a minimum initial investment of $5,000 and an expense ratio of 1.34% compared to a category average of 1.58%.
Putnam Global Natural Resources A (EBERX) seeks capital growth. The majority of its assets are utilized to purchase common stocks. It focuses on acquiring both value and growth oriented stocks. It primarily invests in large and mid-cap companies. The energy mutual fund is non-diversified and has a three year annualized return of 5.08%. The fund manager is Christopher Eitzmann and he has managed this energy mutual fund since 2012.
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.
View All Zacks #1 Ranked Mutual Funds
More From Zacks.com
- Mutual Funds
- mutual funds