Geopolitical tensions are pushing investors to reassess portfolios, with energy mutual funds gaining attention amid heightened uncertainty. Conflicts involving Russia and Ukraine, Israel and Hamas, and tensions in the Middle East have raised concerns about energy supply and global markets.
Energy mutual funds provide diversified exposure to companies across the energy sector, offering investors a way to participate in potential shifts in energy prices and demand without relying on a single stock. Geopolitical developments can continue to influence the sector’s outlook. As uncertainty persists, investors may increasingly view energy-focused funds as a portfolio diversification option. So, investing in funds with exposure to energy equities is expected to help in the near term.
Below, we share with you three top-ranked energy mutual funds, viz., Invesco Steelpath Mlp Select 40 Fund MLPFX, Vanguard Specialized Portfolios Energy Fund VGENX and Invesco Energy Fund FSTEX. 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.
Invesco Steelpath Mlp Select 40 Fund invests most of its assets, along with borrowings, if any, in master limited partnerships of companies engaged in the transportation, storage, processing, refining, marketing, exploration, production, and mining of minerals and natural resources. MLPFX advisors also invest in derivatives and other instruments with similar economic characteristics in the same industry.
Invesco Steelpath Mlp Select 40 Fund has three-year annualized returns of 21.6%. As of the end of May 2026, MLPFX had 46 issues and invested 7.6% of its net assets in Western Midstream Partners.
Vanguard Specialized Portfolios Energy Fund invests most of its net assets in common stocks of companies that are engaged in the energy industry. VGENX advisors prefer to invest in companies involved in exploration, production, transmission, energy research and conservation and pollution control.
Vanguard Specialized Portfolios Energy Fund has three-year annualized returns of 18.5%. VGENX has an expense ratio of 0.45%.
Invesco Energy Fund invests most of its assets, along with borrowings, if any, in common stock of companies that are principally engaged in energy-related industries. FNARX advisors also invest in derivatives and other instruments that have economic characteristics similar to such securities.
Invesco Energy Fund has three-year annualized returns of 15.7%. Kevin Holt has been the fund manager of FNARX since June 2020.
