Vanguard Energy Fund
Karl Bandtel — who has managed Vanguard Energy (MUTF:VGENX) for more than two decades — is a pro when it comes to investing in the energy market. The tape tells the tale, with VGENX’s average annual returns coming to 15% over the past decade, almost double the S&P 500.
Vanguard Energy focuses on large-cap operators, primarily because they have diverse businesses that can ride out the volatility in commodities prices. Top holdings are a who’s who of Big Energy, such as Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX) and BP (NYSE:BP). These companies help provide a decent 2.1% dividend yield.
Also, Bandtel takes a very buy-and-hold approach to investing, which manifests itself in a scant 24% portfolio turnover.
Naturally, as it’s part of the Vanguard family, VGENX features low costs, including no load charge and just 0.34% in expenses. It also has earned a four-star rating by Morningstar.