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 over 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 the energy equities is likely to benefit in the near term.
Below we share with you three top-ranked energy mutual funds, viz., Fidelity Select Portfolios – Energy Portfolio FSENX, BlackRock Natural Resources Trust Investor A Shares MDGRX and Calvert Global Energy Solutions Fund Class A CGAEX. 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 Portfolios – Energy Portfolio invests the majority of its assets in securities of companies that are engaged in the energy field. FSENX seeks growth of capital and invests mainly in common stocks. The fund focuses on acquiring securities of both U.S. and global companies.
Fidelity Select Portfolios – Energy Portfolio has three-year annualized returns of 11.8%. As of November 2021, FSENX held 53 issues, with 20.6% of its assets invested in EXXON MOBIL CORP.
BlackRock Natural Resources Trust Investor A Shares seeks growth of capital in the long run and protects the purchasing power of shareholders. MDGRX focuses mainly on companies engaged in natural resources industries, like energy, oil and mining.
BlackRock Natural Resources Trust Investor A Shares has three-year annualized returns of 18%. Thomas Holl has been one of the fund managers of MDGRX since 2017.
Calvert Global Energy Solutions Fund Class A seeks to track the performance of the Calvert Global Energy Research Index by concentrating on the sustainable energy solutions industry. CGAEX invests the majority of its net assets in equity securities of U.S. and non-U.S. companies.
Calvert Global Energy Solutions Fund Class A has three-year annualized returns of 23.4%. CGAEX has an expense ratio of 1.24% compared with the category average of 1.26%.
To view the Zacks Rank and the past performance of all energy mutual funds, investors can click here to see the complete list of energy mutual funds.
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