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Top 5 Best Performing Utilities Mutual Funds Year to Date

Zacks Investment Research

Utilities funds have been traditionally viewed as defensive investments which protect investments during difficult market conditions. Since the demand for these services remains constant over market cycles, such funds are ideal for those seeking a steady flow of current income through consistent dividend yields. In recent years many funds in this category have increased their exposure to emerging markets and have added unregulated utilities companies in their portfolio. This has led to higher returns and an increase in volatility. However, investors who are relatively risk averse can continue to rely on these funds for regular dividends over time.

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, investors can click here to see the complete list of funds.

Mutual Fund

Zacks Rank

Total Return YTD

Fidelity Select Utilities

#2 Buy

6.8%

Fidelity Advisor Utilities A

#2 Buy

6.6%

Franklin Utilities A

#4 Sell

6.2%

American Century Utilities

#1 Strong Buy

5.9%

MFS Utilities A

#3 Hold

4.9%

 

Fidelity Select Utilities (FSUTX) invests the majority of its assets in utility companies or those deriving a large share of their revenues from operations in this sector. The fund focuses in acquiring common stocks. The utilities mutual fund has a three year annualized return of 15.74%.

Douglas Simmons is the fund manager has managed this utilities mutual fund since 2006.

Fidelity Advisor Utilities A (FUGAX) seeks capital growth. The fund invests a large share of its assets in firms from the utilities sector as well as those which derive a large share of revenues from related operations. It purchases both domestic and foreign securities. The utilities mutual fund has a three year annualized return of 15.44%.

The utilities mutual fund has a minimum initial investment of $2,500 and an expense ratio of 1.20% compared to a category average of 1.28%.

Franklin Utilities A (FKUTX) concentrates on purchasing securities of public utilities companies. These are those companies that provide electricity, gas, water and communication services. More than 25% of its assets are invested in the utilities sector. The fund focuses on acquiring equity securities, primarily common stocks. The utilities mutual fund has a three year annualized return of 15.86%.

John Kohli is the fund manager has managed this utilities mutual fund since 1998.

American Century Utilities (BULIX) seeks current income and capital appreciation. The fund invests the majority of its assets in securities listed on at least one index made up entirely of electricity, natural gas, cable television, water or sanitation services companies. The utilities mutual fund has a three year annualized return of 14.14%.

As of June 2012, this utilities mutual fund held 51 issues, with 12.81% of its total assets invested in AT&T Inc.

MFS Utilities A (MMUFX) invests a large share of its assets in securities issued by companies from the utility sector. The fund focuses on acquiring equity securities. However, it may also purchase debt securities, including those rated lower than investment grade. This utilities mutual fund has a three year annualized return of 15.12%.

The utilities mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.04% compared to a category average of 1.28%.

To view the Zacks Rank and past performance of all utilities 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 FSUTX

Read the analyst report on FUGAX

Read the analyst report on FKUTX

Read the analyst report on BULIX

Read the analyst report on MMUFX

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