Top 5 Zacks #1 Ranked Utilities Mutual Funds - Best of Funds
October 16 2012 - 12:11PM
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.
Allianz RCM Global Water (AWTAX) seeks long term capital
appreciation by investing majority of its assets in utility
companies that are predominantly engaged in the water-related
business. The fund may invest in non-U.S companies including
emerging markets. At any time, the fund in exposed to at least
eight countries. This utilities mutual fund has a three year
annualized return of 9.50%.
The utilities mutual fund has a minimum initial investment of
$1,000 and an expense ratio of 1.68% compared to a category average
of 1.43%.
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 15.92%.
Hratch Najarian is the fund manager and he has managed this
utilities mutual fund since 2011.
Rydex Utilities (RYAUX) invests the majority of its
assets in utilities companies whose securities are traded in the
US. The fund focuses on purchasing equity securities and may also
invest in derivatives. The utilities mutual fund has a three year
annualized return of 11.22%.
As of September 2012, this utilities mutual fund held 67 issues,
with 3.95% of its total assets invested in Duke Energy
Corporation.
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 13.05%.
The utilities mutual fund has a minimum initial investment of
$2,500 and an expense ratio of 0.68% compared to a category average
of 1.42%.
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 14.03%.
John Kohli is the fund manager and he has managed this utilities
mutual fund since 1998.
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
(AWTAX): ETF Research Reports
(BULIX): ETF Research Reports
(FKUTX): ETF Research Reports
(RYAUX): ETF Research Reports
(UTPIX): ETF Research Reports
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