Top 5 Zacks#1 Ranked Utilities Mutual Funds - Best of Funds
March 15 2012 - 10:48AM
Zacks
Even during a market downturn, the demand for essential services
such as those provided by utilities, remains virtually unchanged.
Utilities funds are therefore an excellent choice for investors
seeking a steady income flow through consistent yields from
dividends. This is also why they are primarily considered to be a
relatively more conservative investment option. In recent times
their forays into emerging markets have led to appreciably higher
returns and they offer superior returns at a relatively lower level
of risk.
Below we will share with you 5 top rated utilities mutual funds.
Each has earned a Zacks #1 Rank (Strong Buy) as we expect the fund
to outperform its peers in the future. To view the Zacks Rank
and past performance of all utilities funds, investors can click
here to see the complete list of funds.
Putnam Global Utilities A (PUGIX) seeks invests
primarily in utility companies worldwide. The fund concentrates on
investing in large and mid-sized firms, but may also consider
smaller companies. It seeks both capital appreciation and current
income. The utilities mutual fund has a three year annualized
return of 7.63%.
Michael R. Yogg is the fund manager and he has managed
this utilities mutual fund since 2000.
Fidelity Advisor Utilities A (FUGAX) invests
the majority of its assets in public utility companies as well as
those firms which derive a large share of revenues from related
operations. It focuses on acquiring common stocks of both domestic
and foreign companies. The utilities mutual fund has a three year
annualized return of 17.29%.
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 1.35%.
Rydex Utilities (RYAUX) seeks capital
appreciation. The fund invests the majority of its assets in
utilities companies whose securities are traded in the US. It
focuses on purchasing equity securities and may also invest in
derivatives. The utilities mutual fund has a three year annualized
return of 17.27%.
Michael P. Byrum is the fund manager and he has managed this
utilities mutual fund since 2000.
Invesco Utilities Investor (FSTUX) invests a
large share of its assets in stocks of companies in the utilities
sector or related industries. Firms engaged in the production and
distribution of gas and electricity as well as those providing
telecom services constitutes its major investments. Not more than
25% of its assets are invested in foreign companies from related
industries. The utilities mutual fund has a three year annualized
return of 16.07%.
As of December 2011, this utilities mutual fund held 39 issues,
with 5.29% of its total assets invested in Southern Company.
Vanguard Utilities Index Admiral Shares (VUIAX)
seeks to track the performance of the MSCI U.S. Investable Market
Utilities Index. This index consists of companies in the utilities
sector regardless of their market capitalization. The utilities
mutual fund is non-diversified and has a three year annualized
return of 16.83%.
The utilities mutual fund has an expense ratio of 0.19% compared
to a category average of 1.35%.
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.
View All Zacks #1 Ranked Mutual Funds
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