Top 5 Zacks #1 Ranked Utilities Mutual Funds - Best of Funds
August 27 2012 - 8:12AM
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.
American Century Utilities (BULIX) seeks current income
and capital appreciation. The fund invests the majority of its
assets in securities listed on at least one index made up entirely
of electricity, natural gas, cable television, water or sanitation
services companies. The utilities mutual fund has a three year
annualized return of 14.17%.
Lynette Pang is the fund manager and he has managed this
utilities mutual fund since 2010.
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 15.42%.
As of June 2012, this utilities mutual fund held 58 issues, with
4.25% 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 Index
(IMI)/ Utilities 25/50. 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 14.08%.
The utilities mutual fund has an expense ratio of 0.19% compared
to a category average of 1.28%.
Fidelity Advisor Utilities A (FUGAX) invests a large
share 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 14.15%.
Douglas Simmons is the fund manager and he has managed this
utilities mutual fund since 2006.
Invesco Utilities Investor (FSTUX) seeks capital growth
over the long term. The fund invests the majority 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 12.71%.
The utilities mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.32% compared to a category average
of 1.28%.
To view the Zacks Rank and past performance of all utilities
mutual funds, investors can click 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
(BULIX): ETF Research Reports
(FKUTX): ETF Research Reports
(FSTUX): ETF Research Reports
(FUGAX): ETF Research Reports
(VUIAX): ETF Research Reports
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