3 Energy Mutual Funds That Deserve Your Attention
The recent war between Israel and the Palestine-based militant group Hamas has affected the global supply chain. Also, the prevailing war between Russia and Ukraine has prompted several governments, including the Biden administration, to impose sanctions on Russian oil and energy.
Crude prices have gone up on supply concerns from Russia, which is one of the world’s biggest producers of the commodity. Prices have risen further after the U.S. government imposed a ban on the import of oil and other energy products.
Geopolitical tensions are likely to keep markets volatile for some time, with the energy sector making the most of the opportunity. So, investing in funds with exposure to energy equities is likely to help in the near term.
Below, we share with you three top-ranked energy mutual funds, viz., BNY Mellon Natural Resources Fund DNLAX, Vanguard Energy Inv VGENX and Invesco SteelPath MLP Select 40 Fund MLPFX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of energy mutual funds.
BNY Mellon Natural Resources Fund invests most of its assets along with borrowings, if any, in securities of domestic and foreign (including emerging markets) companies with major exposure in natural resources and natural-resources-related sectors, irrespective of any market capitalization. DNLAX advisors choose to invest in growth and value stocks.
BNY Mellon Natural Resources Fund has three-year annualized returns of 17.2%. As of December 2023, DNLAX held 43 issues, with 4.7% of its assets invested in Weatherford International plc.
Vanguard Energy Inv fund seeks long-term growth of capital. VGENX invests in stocks of companies engaged in the production, transmission, marketing, or research of energy.
Vanguard Energy Inv has three-year annualized returns of 17.1%. VGENX has an expense ratio of 0.44%.
Invesco SteelPath MLP Select 40 Fund invests the majority of its net assets in master limited partnerships of companies engaged in the transportation, storage, processing, refining, marketing, exploration, production and mining of minerals and natural resources. MLPFX advisors also invest in derivatives and other instruments with similar economic characteristics in the same industry.
Invesco SteelPath MLP Select 40 Fund has three-year annualized returns of 25.4%. Stuart Cartner has been one of the fund managers of MLPFX since March 2010.
To view the Zacks Rank and the past performance of all energy mutual funds, investors can click here to see the complete list of energy mutual funds.
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