3 Top-Ranked Energy Funds Set to Outperform Peers
As the global appetite for energy continues to increase rapidly, governments and corporations alike are devoting greater resources for the discovery of new energy sources as well as the development of more efficient technology in this domain. In fact, newer economic powerhouses such as China are discovering that the going is even tougher for them. Prices of these invaluable resources continue to rise at a steady rate and the energy sector is clearly a lucrative investment option. Mutual funds are a superior option for forays into the industry as they reduce risks involved by holding widely diversified portfolios.
Below we will share with you 3 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 the Zacks Rank and past performance of all energy funds, investors can click here to see the complete list of funds.
Ivy Energy A (IEYAX) seeks capital growth. It invests a large portion of its assets in companies having their presence in the energy sector. It invests in energy related companies involved in exploration, production and distribution of energy sources. This energy mutual fund has a three-year return of 8.6%.
As of June 2014, this fund held 72 issues with 4.4% of its assets invested in Schlumberger NV.
Invesco Energy A (IENAX) invests mostly in equity securities of issuers engaged in energy-related industries. It also invests in derivatives and other instruments having economic traits similar to such securities. The fund seeks long-term capital appreciation. This energy mutual fund has a three-year return of 4.5%.
This fund has an expense ratio of 1.15% as compared to the category average of 1.47%.
Putnam Global Energy A (PGEAX) seeks long term capital growth. The fund invests primarily in global large and mid-size companies involved in exploration, production and refinement of conventional and alternative sources of energy. The fund may use derivative instruments for both hedging and non-hedging purposes. This non-diversified energy mutual fund has a three-year return of 3.1%.
As of June 2014, this fund held 66 issues with 9.61% of its assets invested in Royal Dutch Shell PLC Class A
To view the Zacks Rank and past performance of all energy mutual funds, investors 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 in our Mutual Fund Center.
Read the analyst report on IEYAX
Read the analyst report on IENAX
Read the analyst report on PGEAX
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