3 Energy Mutual Funds Outpacing the Competition

The energy sector was on a downward spiral going into February, but has made an impressive comeback to end Q1. Oil prices hit rock bottom on February 11, with the WTI slumping 28.7% and Brent crude falling 19.2%.

WTI and Brent crude gained 4.3% and 6.4% in the first quarter despite hitting lows in February.

A rebound for oil has helped the energy sector rebound greatly following the early slump that had investors worried. Economic improvements in both the United States and China has helped three energy mutual funds in particular see massive gains.

mutual funds

1.     BlackRock National Resources Investor A (MDGRX)

Performing well over the last 90 days, this mutual fund is at $40.08 a share after hitting three-month lows on January 20 of $30.90. The fund invests mostly in companies that have a majority of their assets in natural resources.

Investing in companies in the energy, oil and gas sectors, BlackRock provided a return of 3.9% in the first quarter and has rallied to returns of 17.7% over the past three months.

Energy EFTS have an average expense ratio of 1.51%, but BlackRock has low expense ratios of just 1.1%.

2.     Vanguard Energy Investor (VGENX)

Vanguard sees returns over the long-term, and the fund invests the majority of its assets into companies in the energy sector. Common stocks are the most prominent investment the fund makes.

Vanguard outperforms where others struggle, especially in Q1.

The fund had returns of 7.8% in the first quarter of the year, with returns of 20.3% over the last 90 days. Vanguard’s expense ratio is even more impressive than BlackRock’s, at 0.37%. January 20 marks a low for the fund, reaching $35.26. The fund is up 0.19% on the day, trading at $46.26.

The 12-month high for the mutual fund was reached on May 4, 2015 and was $58.43 a share.

3.     Fidelity Select Energy (FSENX)

Fidelity is the last mutual fund on the list. The fund seeks capital growth and invests in common stocks. Diversified, it has holdings in electricity, oil, gas and solar power. The fund also invests in securities globally, making it a well-rounded choice for investors.

Fidelity is down 0.39% on the day, selling at $38.16.

Shares fell to a low of $29.63 on January 20 and have steadily increased since. First-quarter returns reached 3.3%, with three-month returns hitting 15.8%. The fund maintains an expense ratio of 0.79%.

These three energy mutual funds have solid portfolios and a history to back their validity. With oil on the rise once again, these are three funds you’ll want to add to your portfolio in Q2.

Ben Myers

Ben began his long career in international finance and investing after graduating with a degree in Finance & Accounting. Prior to founding a financial advisory firm he worked with multi-national institutions including HSBC and Bank of Ireland. After several stints as a chief analyst at forex/binary options companies Ben still remains a keen trader and featured contributor on numerous financial sites.