Oil prices are rising following recent escalations in the Middle East, boosting the outlook for the energy sector. The prices of West Texas Intermediate crude and Brent crude are currently at $85 and $92 per barrel, respectively. Another supportive factor is OPEC+’s commitment to balancing the oil market. At its July 5 meeting, the producer group approved a 188,000-barrel-per-day production adjustment for August and is keeping an eye on production levels in the subsequent months as well.
As higher oil prices translate into greater cash flow and earnings for the energy producers, energy mutual funds could become an attractive investment choice. Energy mutual funds invest primarily in the oil and gas exploration and production companies as well as the integrated energy companies (which include refiners, pipeline companies, as well as oilfield service companies), positioning them to benefit from a favorable environment for energy stocks.
We have three energy funds, Victory Global Energy Transition RSNRX, Invesco SteelPath MLP Select 40 MLPFX and Vanguard Energy Opportunities Inv VGENX, which investors should buy now for the long term. These funds have a Zacks Mutual Fund Rank #1 (Strong Buy) or 2 (Buy), positive three-year and five-year annualized returns, minimum initial investments within $5000 and expense ratios considerably lower than the category average. So, these funds have provided a comparatively stronger performance and carry a lower fee.
Victory Global Energy Transition fund invests most of its assets in securities of companies the sub-adviser considers principally engaged in natural resources industries required for the Energy Transition, defined as efforts to develop zero-carbon energy systems and expand access to affordable, sustainable energy services.
Mackenzie B. Davis has been the lead manager of RSNRX since Jan. 3, 2005. Most of the fund’s holdings were in companies, such as Compass Minerals International, Inc. (11.3%), Sunrise Energy Metals Ltd (8.2%) and Iluka Resources Ltd (7.6%) as of March 31, 2026.
RSNRX’s 3-year and 5-year annualized returns are 31.9% and 28.6%, respectively. Its net expense ratio is 1.48%. RSNRX has a Zacks Mutual Fund Rank #1.
To see how this fund performed compared to its category, and other 1 and 2 Ranked Mutual Funds, please click here.
Invesco SteelPath MLP Select 40 fund invests a majority of its net assets (plus any borrowings for investment purposes) in master limited partnership (MLP) investments of issuers engaged in transportation, storage, processing, refining, marketing, exploration, production, and mining of minerals and natural resources, and in derivatives and other instruments with similar economic characteristics.