Mike Cintolo
Cabot Top Ten Trader
Geoffrey Seiler
Bullmarket.com
Sy Harding
Street Smart Report
Nicholas Vardy
Bull Market Alert

FBR Gas Utility A 'great find'


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by Genia Turanova, editor Leeb Income Performance

The FBR Gas Utility Index Investors Fund (GASFX), despite its somewhat cumbersome name, is a great find and an income pick we are really excited about.

The name is truly descriptive: it’s an index fund that invests in publicly traded companies that are members of the American Gas Association (AGA), tracking the total return of the AGA Stock Index.

This index is market-cap weighted but adjusted for the percentage of natural gas assets on each company’s balance sheet, with no company being greater than 5 percent of total assets, and is reset monthly or whenever a qualifying event, such as a merger or acquisition or capital restructuring occurs.


And don’t let the record low price of natural gas keep you away from this fund: its portfolio is mostly dedicated to gas distribution stocks, which benefit from record demand, and there are several MLPs among its top positions.  

In addition, the fund’s long-term record also speaks volumes about its potential. Its low turnover and low volatility are further positives.

The fund’s long-term record of capturing the market upside/downside is outstanding: over the past 10 years about 98.6 percent of the market’s upside and only 71.6 percent of the downside was captured, resulting in sector-and market- beating gains.   

This no-load five-star-rated utilities fund joins our Mutual Funds portfolio with a strong buy rating.  

Learn more about this financial newsletter at Genia Turanova's Leeb Income Performance.

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