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 commodity producers. 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 mutualfunds, viz., Fidelity Select Energy FSENX, Calvert Global Energy Solutions Fund CGAEX 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 Energy seeks capital appreciation by investing the majority of its assets in common stocks of companies principally engaged in the energy field, including the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale and solar power. FSENX offers dividends and capital gains in April and December.
Fidelity Select Energy has three-year annualized returns of 24.6%. As of August 2022, FSENX held 55 issues, with 20.9% of its assets invested in EXXON MOBIL CORP.
Calvert Global Energy Solutions Fund aims 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 primarily engaged in the reduction of greenhouse gas emissions.
Calvert Global Energy Solutions Fund has three-year annualized returns of 16.5%. Thomas Seto has been one of the fund managers of CGAEX since 2016.
Cohen & Steers MLP & Energy Opportunity Fund, Inc. seeks to provide attractive total return by investing 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 12.7%. 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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