Best Mutual Funds Awards 2026: Best Sector Stock Funds

If you’re evaluating mutual funds for your investment portfolio or retirement account, this list highlights the best sector funds to consider now, based on each fund outperforming the S&P 500 over the past one-, three-, five- and 10-year periods.

Shaded cells in the table below indicate the five best-of-the-best funds based on 10-year performance. Of 268 sector funds at least 10 years old, just 27 of them, or 10%, won awards.

A sector fund invests in a particular sector of the economy — energy or utilities, for example. There are many different types of sector funds, and they can differ significantly in terms of the market capitalization of the stocks they own and their investment objectives (e.g. growth vs. income). Morningstar says of sector funds, “These picks are good for plugging holes or tilting a portfolio toward a certain part of the market.”

For more details, read about how the best mutual funds deliver benchmark-beating returns, and see the full 2026 list of IBD’s Best Mutual Funds in every category, including bond funds, diversified stock funds, blend and index funds.

All returns are as of Dec. 31, 2025.

Best Sector Funds

Fund
Symbol
1-year total return
3-year total return
5-year total return
10-year total return
Morningstar category
Annual report net expense ratio
Benchmark: S&P 500 TR USD
17.88%
23.01%
14.42%
14.82%
Fidelity Select Semiconductors
FSELX
42.90
54.01
30.40
30.28
US Fund Technology
0.62
Fidelity Advisor Semiconductors I
FELIX
45.24
54.23
30.43
30.21
US Fund Technology
0.69
Rydex Electronics Inv
RYSIX
42.04
37.16
19.30
24.13
US Fund Technology
1.38
OCM Gold Investor
OCMGX
166.69
50.73
20.55
23.42
US Fund Equity Precious Metals
2.38
Aegis Value I
AVALX
67.07
27.41
25.77
22.82
US Fund Natural Resources
1.45
Fidelity Select Technology
FSPTX
23.40
38.70
15.49
22.76
US Fund Technology
0.62
Columbia Seligman Tech & Info A
SLMCX
37.39
35.94
19.14
22.49
US Fund Technology
1.16
Columbia Seligman Global Tech A
SHGTX
35.08
35.30
18.63
22.46
US Fund Technology
1.25
Franklin Gold and Precious Metals A
FKRCX
195.22
52.41
21.13
21.86
US Fund Equity Precious Metals
0.87
Columbia Global Technology Growth Inst
CMTFX
25.13
37.23
15.82
21.69
US Fund Technology
0.91
Rydex Precious Metals Inv
RYPMX
148.96
41.97
18.41
21.52
US Fund Equity Precious Metals
1.29
VanEck International Investors Gold A
INIVX
165.86
49.55
19.84
21.50
US Fund Equity Precious Metals
1.42
Allspring Precious Metals A
EKWAX
163.54
51.51
23.35
21.37
US Fund Equity Precious Metals
1.08
US Global Investors Gld & Prec Mtls
USERX
167.46
46.87
18.46
21.16
US Fund Equity Precious Metals
1.69
Gabelli Gold AAA
GOLDX
167.26
49.06
21.82
21.08
US Fund Equity Precious Metals
1.44
Invesco Gold & Special Minerals A
OPGSX
131.03
40.57
17.54
21.07
US Fund Equity Precious Metals
1.05
American Century Global Gold Inv
BGEIX
158.48
47.34
20.58
20.67
US Fund Equity Precious Metals
0.66
DWS Science and Technology A
KTCAX
21.26
39.00
15.87
20.03
US Fund Technology
0.88
Victory Precious Metals and Minerals
USAGX
156.06
44.64
19.11
19.76
US Fund Equity Precious Metals
1.14
Fidelity Select Tech Hardware
FDCPX
39.68
31.68
15.06
19.64
US Fund Technology
0.68
Wireless
WIREX
26.57
40.29
17.23
18.93
US Fund Technology
1.95
First Eagle Gold A
SGGDX
128.38
39.19
19.61
18.52
US Fund Equity Precious Metals
1.14
Sprott Gold Equity Investor
SGDLX
147.67
44.92
18.43
18.17
US Fund Equity Precious Metals
1.46
Fidelity Select Gold
FSAGX
142.93
40.64
16.61
17.83
US Fund Equity Precious Metals
0.68
Midas Discovery
MIDSX
195.76
46.06
17.47
17.26
US Fund Equity Precious Metals
5.98
Fidelity Select Communication Services
FBMPX
34.89
41.19
15.03
15.74
US Fund Communications
0.67
Fidelity Select Defense & Aerospace
FSDAX
49.98
26.38
17.75
15.19
US Fund Industrials
0.65
Sources: IBD, Morningstar Direct

The 2026 Best Mutual Funds logo and accolades are available for licensing through Investor’s Business Daily’s partner, The YGS Group. For more information and ordering, please visit www.IBDlicensing.com or call 800-290-5460.

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