Oil prices stepped up in the recent past after major oil producing nations agreed to cut their crude production. Moreover, a significant decline in U.S. crude inventories had a positive impact on oil prices. A stable domestic economy is also expected to boost overall crude demand.
Recent recovery in oil prices pushed the energy sector northward. So, energy mutual funds that have significant exposure to the energy sector could be solid investments. Energy funds are better options while foraying into an industry as these reduce risks by holding a diversified portfolio.
Below we share with you three top-ranked energy funds. Each has earned a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. To view the Zacks Rank and past performance of all energy mutual funds, investors can click here to see the complete list of energy funds.
Fidelity Select Energy Service Portfolio (MUTF:FSESX) seeks appreciation of capital for the long run. This specialty natural resources fund invests a bulk of assets in equity securities of companies principally involved in the energy service field. FSESX invests heavily in common stocks of energy companies. Fidelity Select Energy Service Portfolio has returned 63.6% since January 2000.
As of June 2017, FSESX held 42 issues with about 14.46% of its assets invested in Schlumberger Ltd.
Columbia Global Energy & Natural Resources Z (MUTF:UMESX) seeks capital growth for the long run. UMESX invests a major portion of its assets in securities of domestic and foreign companies. The fund primarily focuses on acquiring securities of companies from the natural resources and energy industries. Moreover, UMESX invests more than half of its assets in petroleum and crude oil companies. Columbia Global Energy & Natural Resources Z has returned about 37% since January 2000.
UMESX has an expense ratio of 1.09% as compared to the category average of 1.37%.
Dreyfus Natural Resources Fund A (MUTF:DNLAX) invests the lion’s share of its assets in companies from the natural resources sector. DNLAX seeks capital appreciation over the long run. DNLAX generally invests in both growth and value stocks. DNLAX not only invests in domestic companies but also in foreign companies. Dreyfus Natural Resources Fund A has returned 122.6% since November 2003.
Elizabeth Slover is one of the fund managers of DNLAX since 2011.
To view the Zacks Rank and past performance of all energy mutual funds, investors can click here to see the complete list of energy funds.
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