Top 8 Best Energy Sector Equity Mutual Funds 2012

Mutual funds investing in energy sector have shown tremendous long term prospects and should be part of any diversified portfolios. Some of the best energy equity mutual funds are: Invesco Energy Investor, Waddell & Reed Energy A, Ivy Energy A, Vanguard Energy Inv, etc.


The last five years, energy sector equity mutual funds have outperformed the next closest US domestic equity fund category by a huge margin. Most of this success is attributable to the oil and natural gas sectors. As part of non-renewable energy, the fast depleting reserves coupled with rising demand have headed to a solid increase in both commodity and stock prices. By investing in Energy mutual funds, investor can greatly reduce the risk involved in investing in this sector because they hold widely diversified portfolios.

Top Energy Stock Mutual Funds

These best equity energy funds are ranked based on its long term performance. You will find some of the fund review from this article: Other information about these energy sector stock funds are: management, sales load, yield, annual holding turnover, initial investment, total net assets, fund objective, top stocks, etc.

The 8 Best Energy Sector Equity Mutual Funds of 2012 are:
  1. Invesco Energy Investor (FSTEX)
  2. Waddell & Reed Energy A (WEGAX)
  3. Ivy Energy A (IEYAX)
  4. ICON Energy A (ICEAX)
  5. Vanguard Energy Investor (VGENX)
  6. Guinness Atkinson Global Energy (GAGEX)
  7. BlackRock Energy & Resources Inv A (SSGRX)
  8. Rydex Energy Inv (RYEIX)
updated on 4/3/2012

Invesco Energy Investor
1. Invesco Energy Investor (FSTEX)

The Invesco Energy mutual fund objective is to provide long-term growth of capital. This sector mutual fund generally invests >80% of its net assets in energy-related industries companies’ stocks. It may invest in foreign securities. This Invesco mutual fund invests in 4 major energy subsectors: major oil, energy services, oil and gas exploration/production, and natural gas & logistic pipeline.

This mutual fund has total net assets of $1.70 billion. The YTD return of this best energy equity fund is 10.73%. Andrew Lee has been managing this fund since May 2008. This investment fund was first introduced to public in January 1984. The annual expense ratio of this fund is 1.13%. The fund has no sales charge. There are 101 brokerages that provide the sale of this fund.

As of December 2011, the top equity holdings are Schlumberger Ltd (6.98%), National Oilwell Varco Inc (5.62%), Occidental Petroleum Corp (5.60%), Anadarko Petroleum Corp (5.18%) and Halliburton Co (5.00%).

2. Waddell & Reed Energy A (WEGAX)

The Waddell & Reed Energy fund utilizes its net assets to purchase securities of companies within the energy sector such as exploration, discovery, production, distribution or infrastructure of energy and/or alternative energy sources. It invests in companies domiciled throughout the world, including emerging markets.

Wandell & Reed Energy
This energy equity mutual fund is rated with 3-stars return rating by Morningstar. Since its inception in 2006, this fund is managed by David P. Ginther. The total annual expense ratio is 1.63%. Investors can start investing in this top fund with as low as $500 for brokerage or retirement account. The maximum sales charge of investing in this domestic stock fund is 5.75%. The YTD return is 10.51%. The 5-year annualized return of this fund is 17.68%.

As of December 2011, the portfolio composition of this fund is Domestic Common Stock (77.36%), Foreign Common Stock (19.60%) and Cash and Cash Equivalents (3.04%). The top equity holdings are National Oilwell Varco Inc (4.6%), Schlumberger Limited (3.9%), Continental Resources Inc (3.6%) and Anadarko Petroleum Corporation (3.6%).

3. Ivy Energy A (IEYAX)

The investment objective of Ivy Energy fund is to achieve capital growth and appreciation. This Ivy fund invests normally majority of net assets in securities of companies within the energy sector. These companies may include oil companies, oil and gas exploration companies, refinery corporations, natural gas pipeline companies, energy conservation businesses, coal, transporters, utilities, alternative energy companies and innovative energy technology enterprises.

The minimum initial investment for investing in this top performer fund is $500. This Ivy fund has total net assets of $128.59 million. It has a dividend yield of 0% (i.e. no yield). Morningstar gave this fund 3-star rating. Since its inception, the fund has achieved 3 years of positive return and 2 years of negative return. The best 1-year total return was achieved in 2007 (48.95%). The 3-year beta is 1.41. The benchmark of this mutual fund is S&P 1500 Energy TR.

The top sector allocation of this fund as of January 2012 is Energy (91.4%). The top holdings of this fund as of December 2011 are National Oilwell Varco Inc (4.6%), Schlumberger Limited (3.9%), Continental Resources Inc (3.5%), Anadarko Petroleum Corporation (3.5%) and Exxon Mobil Corporation (3.3%).

4. ICON Energy A (ICEAX)

Icon Energy A fund
The ICON Energy fund uses its total assets to buy equity securities of companies in the Energy sector. This mutual fund may invest in common stocks and preferred stocks of any market capitalization. It is considered as a non-diversified mutual fund.

This sector mutual fund has 5-year annualized return of 5.21%. It has total net assets of $675.60 million. The dividend yield of this fund is 0.44%. It is rated with 4-stars rating by Morningstar. Although the class A of this fund has just been introduced to public since 2010, but Derek Rollingson has managed it since May 2007. This energy equity fund can be purchased from a limited list of 18 brokerages only. The management fee is 0.25%.

Best Growth Stock Mutual Funds 2012

The top equity holdings as of December 2011 are Exxon Mobil Corp (15.61%), Chevron Corp (11.02%), Conoco Philips (7.38%), Schlumberger Ltd (7.00%) and Occidental Petroleum Corp (5.81%). The top industries are Integrated Oil & Gas (46.66%) and Oil & Gas Equipment & Services (23.79%).

5. Vanguard Energy Investor (VGENX)

The Vanguard Energy investment fund is seeking long-term capital appreciation. This Vanguard mutual fund invests most of its assets in the common stocks of energy industry companies. It may invest <100% of its assets in foreign equities.

Morningstar has rated this energy equity fund with 5-stars rating and Gold rating. This US domestic stock fund has 12-month dividend yield of 1.61%. The fund’s total net assets are $13.37 billion. It has been in the market since 1984. The most recent dividend was distributed in December 2011 ($0.25). The annual expense ratio of this Vanguard Energy fund is 0.34%. Karl E. Bandtel is the current lead manager.

As of January 2012, this sector equity fund has a total of 143 stocks. The top equity sector diversifications are Integrated Oil & Gas (49.80%), Oil & Gas Exploration & Production (30.0%) and Oil & Gas Equipment & Services (9.30%).

6. Guinness Atkinson Global Energy (GAGEX)

Guinness Atkinson Global Energy
The Guinness Atkinson Global Energy fund uses most of its assets to buy stocks of both U.S. and non-U.S. companies principally engaged in the production, exploration or discovery, or distribution of energy including the research and development or production of alternative energy sources. It may have as few as 25 holdings, or may hold securities in 75 or more companies. The fund is a non-diversified mutual fund.

Morningstar has rated this top fund with 4 stars rating. It has YTD return of 12.99%. The current fund manager is Timothy Guinness. The annual expense ratio of this fund is 1.25%. The minimum initial purchase is $5.000. There is no management fee and no sales charge for investing in this fund.

Top Performer US Domestic Stock Mutual Funds 2011

As of January 2012, the top stocks in its holdings are Suncor Energy Inc (3.72%), Valero Energy Coro (3.71%), Petro China Co Ltd – H Shares (3.68%), Haliburton Co (3.64%) and Nexen Inc (3.60%).

7. BlackRock Energy & Resources Inv A (SSGRX)

Rated with Bronze rating, this BlackRock Energy & Resources Inv A fund has a dividend yield of 1.63%. It also has a sales load of 5.25%. The total net assets are $1.3 Billion. The top 3 stocks in its holdings are: Alpha Natural Resources Inc, Plains Exploration & Production Company, and Consol Energy Inc.

8. Rydex Energy Inv (RYEIX)

This Rydex Energy fund has a small total assets of $74 million only. This equity energy fund has an expense ratio of 1.39%. The annual holdings turnover rate is 273%. Investor can start investing with $2,500 minimum initial investment.

Disclosure: No Position

Other Best Mutual Funds articles:

NoNameTicker1 Year Return %3 Year Return %5 Year Return %10 Year Return %Expense Ratio
1Invesco Energy InvFSTEX-9.31%17.72%5.65%14.24%1.13%
2Waddell & Reed Energy AWEGAX-10.46%17.68%5.50%-1.63%
3Ivy Energy AIEYAX-10.09%18.13%5.29%-1.60%
4ICON Energy AICEAX-9.11%13.25%5.21%13.52%1.70%
5Vanguard Energy InvVGENX-3.82%18.57%5.08%15.00%0.34%
6Guinness Atkinson Global EnergyGAGEX-14.39%22.17%4.31%-1.25%
7BlackRock Energy & Resources Inv ASSGRX-14.70%25.01%4.01%18.01%1.29%
8Rydex Energy InvRYEIX-7.24%18.40%3.64%10.65%1.39%


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