Thursday, February 17, 2011
Top 5 Energy Mutual Funds
By: Zacks Investment Research
With oil touching a ten-week low after Egyptian President Mubarak’s resignation, immediate concerns about energy prices have been put to rest. During this period, crude stockpiles had been strengthened as oil prices touched a two-year high. The situation clearly illustrates the importance countries and corporations attach to energy security. The fact that investing in the energy sector is a prudent long term choice is borne out by the performance of such securities in the recent past. Energy mutual funds greatly reduce the associated risks by holding widely diversified portfolios put together after thorough and systematic research.
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 theZacks Rank and past performance of all energy funds, then click here.
BlackRock Energy & Resources (SSGRX) invests a large share of its assets in energy and natural resources firms worldwide. It also invests in companies in related sectors as well as in utilities. This energy mutual fund returned 24.57% over the last one year and has a ten year annualized return of 18.37%.
The energy mutual fund has a minimum initial investment of $1,000 and an expense ratio of 1.31% compared to a category average of 1.72%.
U.S. Global Investors Global Resources (PSPFX) seeks capital appreciation and protection of capital against inflation and currency fluctuations. The majority of its assets are invested in securities of companies from the natural resources sector. It purchases common and preferred stock, convertible securities, rights and warrants, and depository receipts. The energy mutual fund has a five year annualized return of 8.48%.
As of September 2010, this energy mutual fund held 100 issues, with 4.35% of its total assets invested in Pacific Rubiales Energy Corp.
JHancock2 Natural Resources 1 (JINRX) invests heavily in equity and related securities of companies across the world whose primary operations involve natural resources. The fund selects firms which are expected to gain from increasing demand for natural resources and related products and services. The energy mutual fund returned 14.88% over the last one year period.
The fund manager is James A. Bevilacqua and he has managed this energy mutual fund since 2005.
Vanguard Energy (VGENX) seeks long term capital appreciation. The majority of its assets are used to purchase common stocks of companies whose primary activities are energy related. This energy mutual fund has a ten year annualized return of 14.16%.
The energy mutual fund has an expense ratio of 0.38% compared to a category average of 1.72%.
Putnam Global Natural Resources A (EBERX) primarily invests in common stocks of energy and natural resources companies across the world. It focuses on acquiring value stocks and invests in large and mid-cap companies. The energy mutual fund returned 17.47% over the last one year period.
The fund manager is John Morgan and he has managed this energy mutual fund since 2008.