5 Best Performing No-Load Energy Mutual Funds Of Q1
Zacks Investment Research | May 03, 2017 10:54PM ET
With a staggering 24% return, the energy sector was the best performer among the S&P 500 sectors last year. But, oil prices fell in the first quarter of 2017, which in turn weighed on the energy sector, making it the only loser among the S&P 500 sectors.
Moreover, no energy mutual funds gained in the first quarter. However, broader trend and analysis show that certain energy funds are buy ranked and they will perform better in the future based on positive first quarter earnings results. In this context, investing in such mutual funds from the sector continues to be a prudent investment choice.
Oil Price Performance in Q1
Crude prices logged a loss of almost 6% for the first quarter as traders focused on the rising flood of U.S. shale-driven production. In other words, while OPEC's moves to trim output and rebalance the demand-supply situation have stabilized the market to a large extent, in the process it has incentivized shale drillers to churn out more.
With the recent uptick in U.S. shale production putting more pressure onto the market, oil ended the first quarter at $50.60 per barrel, 5.8% lower than year-end 2016 prices.Natural gas fared worse, dropping more than 14% in the Jan-Mar period, thanks to one of the mildest winters on record. (Read More: Zacks Investment Research
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