Utility funds are composed of a portfolio of stocks, bonds, or other securities of companies with operations in the utilities sector. Investing in utility funds can help an investor mitigate the risk of selecting individual securities, as well as give investors a cost-effective opportunity to participate in a diversified, professionally managed portfolio. Let’s take a look at the 10 best-performing Utility funds.
10 Best-Performing Utility Funds
We have referred to the past one-year return data (from money.usnews.com) of the utility funds to come up with the 10 best-performing utility funds.
10. Fidelity® Telecom and Utilities Fund
primarily invests in the common stocks of telecommunications services companies and utility companies. This fund has given a return of over -4% in the last three months and over 6% in the last three years. FIUIX has more than $900 million in total assets. The top three holdings of the fund are: AT&T(NYSE:), NextEra Energy (NYSE:) and T-Mobile US (NASDAQ:).
9. MFS Utilities Fund
normally invests in the utility sector, including stocks, bonds and convertible securities. This fund has given a return of over -7% in the last three months and almost 8% in the last three years. MMUFX has more than $3 billion in total assets. The top three holdings of the fund are: NextEra Energy, Sempra Energy (NYSE:) and Dominion Energy.
8. Allspring Utility and Telecomms Fund
usually invests in the common, preferred and convertible preferred stocks of utility and telecommunications companies. This fund has given a return of almost -6% in the last three months and over 7% in the last three years. EVUAX has more than $400 million in total assets. The top three holdings of the fund are: NextEra Energy, Dominion Energy and Duke Energy (NYSE:).
7. PGIM Jennison Utility Fund (PRUAX, 7%)
primarily invests in equity and equity-related and investment-grade debt securities of utility companies. This fund has given a return of almost -8% in the last three months and almost 8% in the last three years. PRUAX has more than $3 billion in total assets. The top three holdings of the fund are: NextEra Energy, CenterPoint Energy (NYSE:) and Cheniere Energy (NYSE:).
6. Rydex Utilities Fund
Rydex Utilities Fund mainly invests in the equity securities of U.S. utility companies, as well as in derivatives. This fund has given a return of over -5% in the last three months and almost 5% in the last three years. RYUTX has more than $50 million in total assets. The top three holdings of the fund are: NextEra Energy, Duke Energy and Southern (NYSE:).
5. Vanguard Utilities Index Fund
aims to track the performance of the MSCI US Investable Market Index, which is made up of large, mid-size, and small U.S. companies within the utility sector. This fund has given a return of over -5% in the last three months and almost 8% in the last three years. VUIAX has more than $5 billion in total assets. The top three holdings of the fund are: NextEra Energy, Duke Energy and Southern Co.
4. Fidelity® Select Utilities Portfolio
uses fundamental analysis of the issuer, industry, as well as market and economic conditions to select the utility companies to invest in. This fund has given a return of almost -7% in the last three months and over 8% in the last three years. FSUTX has more than $1.20 billion in total assets. The top three holdings of the fund are: NextEra Energy, Southern Co and Sempra Energy.
3. Fidelity Advisor® Utilities Fund
mainly invests in companies with operations in the utility industry and companies getting most of their revenue from utility operations. This fund has given a return of over -6% in the last three months and almost 8% in the last three years. FUGAX has more than $700 million in total assets. The top three holdings of the fund are: NextEra Energy, Southern Co and Sempra Energy.
2. Franklin Utilities Fund
primarily invests in U.S. companies operating in the electricity and gas sector. This fund has given a return of over -5% in the last three months and almost 8% in the last three years. FKUTX has more than $6 billion in total assets. The top three holdings of the fund are: NextEra Energy, CMS Energy (NYSE:) and Dominion Energy.
1. Hennessy Gas Utility Fund
aims to achieve its investment objectives by investing in the common stock of companies having distribution and transmission operations. This fund has given a return of over -6% in the last three months and almost 6% in the last three years. GASFX has more than $500 million in total assets. The top three holdings of the fund are: Atmos Energy (NYSE:), Cheniere Energy and Sempra Energy.
