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Best Performing Utilities Mutual Funds

Jon Knotts

5 Best Performing Utilities Mutual Funds Year to Date

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, then click here.


 

Mutual Fund

Zacks Rank

Total Return YTD

ProFunds Utilities UltraSector

#2 Buy

 

20.5%

Franklin Utilities A

#2 Buy

 

15.6%

 

Vanguard Utilities Index

#1 Strong Buy

 

15.2%

Rydex Utilities

#3 Hold

 

14.2%

 

Invesco Utilities Investor

#3 Hold

 

13.6%

 

 

 

ProFunds Utilities UltraSector (NASDAQ:UTPIX - News) 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 26.01% over the last one year period.

Hratch S. Najarian is the fund manager has managed this utilities mutual fund since 2011.

Franklin Utilities A (NASDAQ:FKUTX - News) concentrates on purchasing securities of public utilities companies. More than 25% of its assets are invested in companies that provide electricity, gas, water and communication services. The fund focuses on acquiring equity securities, primarily common stocks. The utilities mutual fund has a ten year annualized return of 8.6%.
 


 

As of September 2011, this utilities mutual fund held 54 issues, with 4.69% of its total assets invested in Southern Co.

Vanguard Utilities Index (NASDAQ:VUIAX - News) seeks to track the performance of the MSCI U.S. Investable Market Utilities Index. This index consists of companies in the utilities sector regardless of their market capitalization. Electric, gas and water utility companies as well as producers and distributors of power are all part of this index. This utilities mutual fund has a five year annualized return of 3.12%.

 

The utilities mutual fund has an expense ratio of 0.19% compared to a category average of 1.33%.


Rydex Utilities (NASDAQ:RYAUX - News) invests a large share of its assets in utilities companies whose securities are traded in the US. It focuses on purchasing equity securities and may also invest in derivatives. This utilities mutual fund returned 17.38% over the last one year period.

 

Michael P. Byrum is the fund manager has managed this utilities mutual fund since 2000.

 

Invesco Utilities Investor (NASDAQ:FSTUX - News) seeks capital appreciation over the long term. The fund invests the majority of its assets in stocks of companies in the utilities sector or related industries. Firms engaged in the production and distribution of gas and electricity as well as those providing telecom services constitutes its major investments. This utilities mutual fund has a three year annualized return of 10.75%.

 

The utilities mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.45% compared to a category average of 1.33%.
 


To view the Zacks Rank and past performance of all utilities mutual funds, then click here.

 

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

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