Ratings: Energy & Natural Resource Funds

Former Vice President Al Gore testified before Congress this week about global warming. At the same time, energy markets around the world were heating up.

Human beings may be causing the Earth to warm, but the inconvenient truth is that we are also causing the run-up in energy prices.

With gasoline stockpiles declining and the summer driving season around the corner, refineries must boost production of gasoline to meet demand. The Energy Department announced that refinery utilization is at a five-week high. This absorbs the crude oil supply.

Another factor stoking the flames of the energy and natural resource funds is the outlook for interest rates. The Federal Reserve this week eliminated the bias toward higher interest rates, sparking a broad stock market rally.

For energy stocks, the theory is that if interest rates can come down, the economy expands, and more energy will be demanded.

The ( ENPIX Quote)ProFunds Oil & Gas UltraSector ProFund (ENPIX) bubbled to the top of our best-performing list with a total return of 7.66% from Thursday, March 15, to Thursday, March 22.

Exxon Mobil (XOM Quote), Chevron (CVX Quote), ConocoPhillips (COP Quote), and Schlumberger (SLB Quote) are the fund's largest holdings.

But the stocks with the highest percentage gains include Todco (THE Quote), up 24.2%, and Pride International (PDE Quote), up 10.6%. Todco, being acquired by Hercules (HERO Quote), may clear away one of Pride's competitors for Gulf of Mexico contract drilling.

The only losing position for ENPIX was Halliburton (HAL Quote), down 4.3%, on lower expectations of first-quarter profits and declining exposure to North American oil and gas production.

On Tuesday, March 20, Gastar Exploration (YGA Quote) was one of 16 energy companies with market caps below $1 billion presenting at the Johnson Rice Emerging Growth Energy Conference in New York City.

The audience must have liked what they heard, since the stock soared 26.3% for the period under review. Gastar helped the Fidelity Select Natural Gas Portfolio to a return of 6.02%.

If you need immediate gratification and can't wait until the end of the day to make your energy trade, check out the PowerShares Dynamic Energy Exploration & Production Portfolio (PXE Quote). This ETF rose 5.98% on outsized returns of 16.2% from Alon USA Energy (ALJ Quote), 11.1% from Western Refining (WNR Quote) and 10.5% from Rosetta Resources (ROSE Quote).

Best-Performing Energy and Natural Resource Funds
Fund	Ticker	Rating	1-Week Total Return	Fund Type
ProFunds Oil & Gas UltraSector ProFund	ENPIX	C	7.66%	Open-End
Fidelity Select Natural Gas Portfolio	FSNGX	C	6.02%	Open-End
PowerShares Dynamic Energy, Expl & Prod	PXE	E+	5.98%	ETF
ICON Energy Fund	ICENX	C	5.92%	Open-End
Allianz RCM Global Resources Fund	RGLIX	U	5.78%	Open-End
PowerShares Dynamic Oil & Gas Services	PXJ	E-	5.76%	ETF
Fidelity Select Energy Portfolio	FSENX	B	5.70%	Open-End
Fidelity Advisor Energy Fund	FAGNX	C	5.69%	Open-End
Rydex Series - Energy Services Fund	RYVIX	C	5.62%	Open-End
BlackRock Natural Resources Trust	MAGRX	B-	5.43%	Open-End
Source: Bloomberg 3/15/07 to 3/22/07

The table below is one of the best worst-performing lists possible. With ProFunds covering both the long and short side of the oil and gas group, there is bound to be at least one oil and gas fund falling each week.

Worst-Performing Energy and Natural Resource Funds
Fund	Ticker	Rating	1 Week Total Return	Fund Type
ProFunds Short Oil & Gas ProFund	SNPIX	U	-4.83%	Open-End
ING Risk Managed Natural Resources Fund	IRR	U	-0.21%	Closed-End
Energy Income and Growth Fund	FEN	A	0.11%	Closed-End
Kayne Anderson Energy Total Return Fund	KYE	C+	0.27%	Closed-End
Kayne Anderson MLP Investment Co	KYN	A-	1.24%	Closed-End
Tortoise Energy Capital Corp	TYY	A	1.57%	Closed-End
Fidelity Select Paper & Forest Products	FSPFX	D	1.74%	Open-End
BlackRock Real Asset Equity Trust	BCF	U	1.91%	Closed-End
Tortoise Energy Infrastructure Corp	TYG	B+	2.39%	Closed-End
Van Kampen Utility Fund	VKUAX	A+	3.40%	Open-End
Source: Bloomberg 3/15/07 to 3/22/07

< Previous

1 2

Next >