Which Utilities Mutual Fund Should You Buy: BULIX Or EVUAX?
Zacks Investment Research | Mar 05, 2020 07:08AM ET
Investors looking for stable current income would do well to consider utility funds. Such funds are used as defensive instruments, which protect investments during a market downturn. This is because the demand for essential services such as those provided by utilities remains unchanged even during difficult times.
In recent years, many funds in this category have increased their exposure to emerging markets and unregulated companies. Though this strategy has increased the risk involved, it has also generated higher returns.
The Utilities Select Sector SPDR Fund (XLU) has gained 20.1% over the past year, boosted by fears related to a slowdown in the global economy as well as trade tensions.
Thus, investing in utility mutual funds seems prudent as of now. However, choosing the right mutual funds for your portfolio can become cumbersome. To that end, let us find out which of the two funds discussed below is better.
American Century Utilities Fund Investor Class (Zacks Investment Research
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