Top 5 Zacks #1 Ranked Utilities Mutual Funds - Best of Funds
June 01 2012 - 11:49AM
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.
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 22.86%.
Hratch S. Najarian is the fund manager and he has managed this
utilities mutual fund since 2011.
Gabelli Utilities AAA (GABUX) invests a majority of its
assets in utilities companies. The fund focuses on acquiring
securities of firms providing electricity, gas and water services
or equipment for these industries. Not more than 40% of its assets
are utilized to purchase foreign securities. The utilities mutual
fund has a three year annualized return of 15.97%.
As of December 2011, this utilities mutual fund held 282 issues,
with 4.14% of its total assets invested in National Fuel Gas
Company.
Invesco Utilities Investor (FSTUX) seeks capital growth
over the long term. The fund 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 15.34%.
The utilities mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.45% compared to a category average
of 1.36%.
Putnam Global Utilities A (PUGIX) 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
7.21%.
Michael R. Yogg is the fund manager and he has managed this
utilities mutual fund since 2000.
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 16.36%.
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
(FSTUX): ETF Research Reports
(GABUX): ETF Research Reports
(PUGIX): ETF Research Reports
(RYAUX): ETF Research Reports
(UTPIX): ETF Research Reports
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