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.
JHancock2 Natural Resources 1 (JINRX) invests heavily in equity and related securities of those global companies which 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. This energy mutual fund has a five year annualized return of 7.34%.
The fund manager is John O’Toole and he has managed this energy mutual fund since 2009.
Guinness Atkinson Alternative Energy (IGNAX) seeks capital appreciation. It invests heavily in equity securities of companies, whose primary operations are related to natural resources, including suppliers and service providers. It may invest in both foreign and domestic firms whose primary operations are conducted abroad. This energy mutual fund has a five year annualized return of 11.23%.
The energy mutual fund has an expense ratio of 1.52% compared to a category average of 1.51%.
RS Global Natural Resources A (RSNRX) invests most of its assets in securities of global natural resources companies. These companies should have a presence in a minimum of three countries. The energy mutual fund has a five year annualized return of 12.67%.
As of September 2013, this energy mutual fund held 38 issues, with 5.32% of its total assets invested in First Quantum Minerals Ltd.
ProFunds Oil Equipment Services & Distribution (OEPSX) seeks capital growth over the long term. The fund invests the majority of its assets in equity securities of energy and natural resources companies worldwide. Not more than 40% of its assets may be utilized to purchase foreign equity securities. The energy mutual fund has a five year annualized return of 19.83%.
The fund manager is Michael Neches and he has managed this energy mutual fund since 2013.
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. The energy mutual fund has a five year annualized return of 13.55%.The energy mutual fund has an expense ratio of 1.66% compared to a category average of 1.64%.
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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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.
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Read the analyst report on JINRX
Read the analyst report on IGNAX
Read the analyst report on RSNRX
Read the analyst report on OEPSX
Read the analyst report on WEGAX
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