Top 5 Zacks #1 Ranked Utilities Mutual Funds - Best of Funds
April 17 2012 - 11:00AM
Zacks
Even during difficult economic conditions, the demand for
essential services such as utilities remains more or less constant.
This is why utilities funds are an excellent choice for investors
who are seeking a steady income flow through consistent yields from
dividends. In fact, investments in this sector are usually
considered to be a conservative investment option. Moreover, in the
past utilities funds have ventured into emerging markets and
provided appreciably higher returns at relatively lower levels 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 current income
and capital appreciation. The fund 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.
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. 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 Co.
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 1.36%.
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%.
Douglas Simmons is the fund manager and he has managed this
utilities mutual fund since 2006.
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%.
The utilities mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 1.87% compared to a category average
of 1.36%.
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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