U.S. Markets closed

Top 5 Best Performing Utilities Mutual Funds Year to Date

Zacks Investment Research

Even during difficult economic conditions, the demand for essential services such as utilities remains more or less constant. This is why utilities funds are an excellent choice for investors who are seeking a steady income flow through consistent yields from dividends. In fact, investments in this sector are usually considered to be a conservative investment option. Moreover, in the past utilities funds have ventured into emerging markets and provided 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, investors can click here to see the complete list of funds.

Mutual Fund

Zacks Rank

Total Return YTD

Fidelity Select Utilities

#3 Hold

3.2%

Fidelity Adv Utilities Fd A

#3 Hold

3.0%

Franklin Utilities A

#3 Hold

2.6%

American Century Utilities

#2 Buy

1.4%

FBR Gas Utility Index

#3 Hold

0.2%

 

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. It is non-diversified and may purchase foreign securities. The utilities mutual fund has a three year annualized return of 16.19%.

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 15.98%.

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 1.29%.

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 16.49%.

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 13.98%.

As of March 2012, this utilities mutual fund held 57 issues, with 12.19% of its total assets invested in AT&T Inc.

FBR Gas Utility Index Investor (GASFX) invests nearly 85% of its assets in companies from the natural gas distribution and transmission domain. The fund seeks to provide returns identical to that of the American Gas Association Stock Index. This utilities mutual fund has a three year annualized return of 20.2%.

The utilities mutual fund has a minimum initial investment of $2,000 and an expense ratio of 0.71% compared to a category average of 1.29%.

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 GASFX

Zacks Investment Research



More From Zacks.com