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 have risen 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 top-ranked energy mutual funds, viz., Fidelity Select Energy (FSENX Quick QuoteFSENX - Free Report) , Invesco SteelPath MLP Select 40 Fund (MLPFX Quick QuoteMLPFX - Free Report) and BlackRock Natural Resources Trust Fund (MDGRX Quick QuoteMDGRX - Free Report) . 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.

 

Fidelity Select Energy seeks to achieve capital appreciation. FSENX invests in common stocks of companies primarily engaged in the energy industry, encompassing both conventional areas such as oil, gas, electricity, and coal, as well as newer sources of energy like nuclear, geothermal, oil shale and solar power.

 

Fidelity Select Energy has three-year annualized returns of 39.6%. As of February 2023, FSENX held 58 issues, with 24.6% of its assets invested in EXXON MOBIL.

 

Invesco SteelPath MLP Select 40 Fund seeks total return by investing the majority of its net assets in master limited partnerships. MLPFX chooses issuers that are engaged in the transportation, storage, processing, refining, marketing, exploration, production and mining of minerals and natural resources. 

 

Invesco SteelPath MLP Select 40 Fund has three-year annualized returns of 30.4%. MLPFX has an expense ratio of 1.15% compared with the category average of 1.56%.

 

BlackRock Natural Resources Trust Fund seeks to achieve capital appreciation while safeguarding the purchasing power of shareholders investments. MDGRX invests in a portfolio of equity securities of domestic and foreign companies with substantial natural resource assets.

 

BlackRock Natural Resources Trust Fund has three-year annualized returns of 27.2%. Alastair Bishop has been one of the fund managers of MDGRX since 2017.

 

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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