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Energy, Metals Sector Funds Do Best in May

Richard Widows

06/10/08 - 10:45 AM EDT
As anyone who has bought gasoline might guess, the energy/natural resources sector easily outdistanced all other equity mutual fund categories in May.

The average fund in the energy/natural resources sector moved up 7.10% during the most recent month, while the weak U.S. dollar and worldwide economic jitters lifted the average precious metals fund by 6.01% into second place.

Of 17 equity fund actively-managed investment objectives in the accompanying table, all achieved positive returns in May except for the related groupings of financial services, which sank 2.83%, placing it in last place, and real estate, in which the average fund surrendered 0.70%.

The top fund for May in the winning energy/natural resources grouping was BlackRock Global Resources(SSGRX Quote - Cramer on SSGRX - Stock Picks), which vaulted 12.38% during the month. The fund has surged 29.60% for the first five months of 2008 and has enriched investors by 45.69% over the past 12 months. Its largest portfolio holdings include Consol Energy(CNX Quote - Cramer on CNX - Stock Picks), Massey Energy(MEE Quote - Cramer on MEE - Stock Picks) and Arch Coal (ACI Quote - Cramer on ACI - Stock Picks).

Four of the 17 funds that lead their respective investment objectives for May were leveraged, as indicated by the phrase "Ultra" or the indications of "2X" and "2.5X" in their names.

The best performing fund for the month in the adjoining table is the leveraged ProFunds Ultra Latin America Fund(UBPIX Quote - Cramer on UBPIX - Stock Picks), up 18.75% in May and 36.10% year to date. Its largest holdings are Petroleo Brasileiro (ADS)(PBR Quote - Cramer on PBR - Stock Picks) and Companhia Vale do Rio Doce ADR(RIO Quote - Cramer on RIO - Stock Picks).

Although the emerging markets sector was ahead by a middle-of-the-pack 2.42% average pace in May, the grouping's top fund, energy-heavy ING Russia(LETRX Quote - Cramer on LETRX - Stock Picks), jumped 15.22% for the month to top off a 12-month climb of 47.40%. Its largest holdings are energy giants Lukoil and Gazprom. The fund is managed by a unit of ING Groep (ADS)(ING Quote - Cramer on ING - Stock Picks).

EQUITY FUND CATEGORY AVERAGES & LEADING PERFORMERS FOR MAY
CATEGORY MAY '08 AVG. RET'N (%) CATEGORY'S LEADING FUND FOR MAY '08, TICKER & TheStreet.com RATINGS GRADE MAY '08 TOTAL RET'N (%) YR.-TO- DATE RET'N (%) 12-MO. TOTAL RET'N (%)
Aggressive Growth 3.13 Rydex Dyn-NASDAQ 100 2x Strgy A (RYVLX) E+ 11.65 -9.20 0.19
Emerging Market Equity 2.42 ING Russia A (LETRX) B+ 15.22 8.73 47.40
Equity Income 1.51 Keeley All Cap Value Fd (KACVX) U 8.51 4.28 4.59
Global Equity 1.91 J Hancock Funds Global Oppty 8.40 5.53 18.69
Growth - Domestic 2.45 Direxion Nasdaq 100 Bull 2.5X Inv (DXQLX) U 13.99 -13.83 -5.81
Growth & Income 1.64 Ancora Homeland Security Fund C (ANHCX) U 8.56 2.35 1.44
Growth & Income 1.64 Navellier Fundamental A (NFMAX) U 7.93 -8.84 -6.06
Mid Cap 4.18 Keeley Sm/Md Cap Val Fd (KSMVX) U 10.15 7.74 N/A
Non-US Equity 1.57 ProFunds-Ultra Latin America Inv (UBPIX) U 18.75 36.10 N/A
Sector - Energy/Natural Res 7.10 BlackRock Global Resources Inv A (SSGRX) C 12.38 29.60 45.69
Sector - Financial Services -2.83 Fidelity Select Brkge & Invst Mgt (FSLBX) C+ 2.03 -8.27 -15.74
Sector - Health/Biotechnology 2.56 Fidelity Select Medical Delivery (FSHCX) E 4.77 -18.23 -16.27
Sector - Precious Metals 6.01 Vanguard Prec. Metals & Mining Fd (VGPMX) B+ 9.26 22.30 36.59
Sector - Real Estate -0.70 CGM Realty Fund (CGMRX) C+ 2.80 8.81 26.52
Sector - Tech/Communications 5.23 Fidelity Select Netwrkg & Infrastr (FNINX) E- 9.86 -5.65 -9.30
Sector - Utilities 3.61 ProFunds-Utilities UltraSector Inv (UTPIX) B- 4.85 -3.73 -3.37
Small Cap 4.60 Van Wagoner Growth Opportunities (VWGOX) E- 11.31 -13.86 -24.28
Source: TheStreet.com Ratings - Data as of 5/31/2008.
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