The prevailing 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 rose 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 energy mutual funds, viz., Tortoise Energy Infrastructure Total Return Fund TORCX, Vanguard Energy Fund VGENX and Franklin Natural Resources FRNRX. 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.
Tortoise Energy Infrastructure Total Return Fund invests most of its assets along with borrowings, if any, in equity securities of energy infrastructure companies. TORCX advisors prefer to invest in midstream master limited partnerships of power and renewable infrastructure companies.
Tortoise Energy Infrastructure Total Return Fund has three-year annualized returns of 24.6%. As of August 2024, TORCX held 27 issues, with 9.8% of its assets invested in Targa Resources.
Vanguard Energy Fund invests most of its net assets in common stocks of companies that are engaged in energy industry. VGENX advisors prefer to invest in companies involved in exploration, production, transmission, energy research and conservation and pollution control.
Vanguard Energy Fund has three-year annualized returns of 14.2%. VGENX has an expense ratio of 0.44%.
Franklin Natural Resources fund invests most of its net assets in equity and debt securities of smaller-capitalization companies in the natural resources sector. FRNRX advisors may also invest a small portion of its net assets in equity or debt securities of any type of issues.
Franklin Natural Resources fund has three-year annualized returns of 10.9%. Steve M. Land has been one of the fund managers of FRNRX since April 1999.
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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