The ongoing war between Russia and Ukraine has prompted several governments, including the Biden administration, to impose sanctions on Russian oil and energy. Crude prices have gone up on supply concerns from Russia, which is one of the world’s biggest producers of the commodity. Prices have risen further after the U.S. Government imposed a ban on the import of oil and other energy products.
Geopolitical tensions are likely to keep markets volatile for some time, with the energy sector making the most of the opportunity. So, investing in funds with exposure to energy equities is likely to help in the near term.
Below, we share with you three top-ranked energy mutual funds, viz., Fidelity Select Portfolio Natural Resources Portfolio FNARX, Guinness Atkinson Alternative Energy Fund GAAEX and Cohen & Steers MLP & Energy Opportunity Fund, Inc. MLOAX. Each has a Zacks Mutual Fund Rank #1 (Strong Buy) and is expected to outperform its peers in the future. Investors can click here to see the complete list of energy mutual funds.
Fidelity Select Portfolio Natural Resources Portfolio seeks capital appreciation by investing the majority of its assets in common stocks of companies principally engaged in owning or developing natural resources, or supplying goods and services to such companies and in precious metals. FNARX offers dividends and capital gains in April and December.
Fidelity Select Portfolio Natural Resources Portfolio has three-year annualized returns of 15.9%. As of August 2022, FNARX held 36 issues, with 18.4% of its assets invested in EXXON MOBIL CORP.
Guinness Atkinson Alternative Energy Fund invests most of its assets along with borrowings, if any, in publicly traded equity securities of alternative energy companies, irrespective of its market capitalization. GAAEX advisors invest in both domestic and foreign countries, including emerging markets.
Guinness Atkinson Alternative Energy Fund has three-year annualized returns of 20.9%.Will Riley has been one of the fund managers of GAAEX since 2019.
Cohen & Steers MLP & Energy Opportunity Fund, Inc. invests the majority of its net assets in Master Limited Partnerships and related companies. MLOAX, a non-diversified fund, also invests in foreign securities.
Cohen & Steers MLP & Energy Opportunity Fund, Inc.has three-year annualized returns of 7%. MLOAX has an expense ratio of 1.25% compared with the category average of 1.56%.
To view the Zacks Rank and the past performance of all energy mutualfunds, investors can click here to see the complete list of energy mutual funds.
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