Top 5 Zacks #1 Ranked Utilities Mutual Funds - Best of Funds
May 02 2012 - 7:55AM
Zacks
Utilities funds are an excellent choice for investors seeking a
steady income flow. They are also used as defensive instruments,
which protect investments during a market downturn. This is because
the demand for essential services such as those provided by
utilities remains unchanged even during difficult times. In recent
years, many funds in this category have increased their exposure to
emerging markets and unregulated companies. This has increased the
risk involved but has also generated higher returns.
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.
ProFunds Utilities UltraSector (UTPIX) seeks to provide
150% of the daily return of the Dow Jones U.S. Utilities Index by
investing in equity securities and derivatives with identical daily
returns. The balance of the fund’s assets is utilized to purchase
money market securities. The utilities mutual fund has a three year
annualized return of 22.48%.
Hratch S. Najarian is the fund manager and he has managed this
utilities mutual fund since 2011.
Franklin Utilities A (FKUTX) concentrates on purchasing
equity in public utilities companies and focuses on acquiring
common stocks. More than 25% of its assets are invested in
companies that provide electricity, gas, water and communication
services. The utilities mutual fund has a three year annualized
return of 17.71%.
As of March 2012, this utilities mutual fund held 57 issues,
with 4.77% of its total assets invested in Exelon Corp.
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
16.34%.
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. The
fund focuses on acquiring common stocks of both domestic and
foreign companies. The utilities mutual fund has a three year
annualized return of 17.22%.
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 is non-diversified and has a three year annualized
return of 16.53%.
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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