Most effective energy ETFs

Jan 05, 2023 By Triston Martin

Despite the S&P 500 Index's decline and oil and gas prices rising after plummeting from their summer highs, three of the best-performing energy ETFs offer exposure to the industry, with gains of up to 72% over the past year.

Millions of dollars are invested in oil and natural gas firms and the alternative energy industry through ETFs like Invesco's exchange-traded fund for energy exploration and production, the iShares U.S. Oil & Gas Exploration & Production ETF, and the Energy Select Sector SPDR Fund.

Energy Stock Exchange Traded Fund for Gas Exploration & Production

The three best energy ETFs have beaten major oil and natural gas benchmarks over the past year and have also beaten the overall market.

The funds are the Energy Select Sector SPDR Fund, the Energy Select Sector ETF (Invesco), and the iShares U.S. Oil & Gas Exploration & Production ETF (iShares). ConocoPhillips is the largest holding in the first two funds, while Exxon Mobil Corp. is the largest holding in the third.

Investments Have Outperformed

Around 50 energy exchange-traded funds (ETFs) trade in the United States. This number does not include inverse or leveraged ETFs or funds with less than $50 million in assets under management (AUM).

As of November 15th, the top three funds have outpaced the S&P 500 Index's 13% fall, the Bloomberg Natural Gas Subindex's 19% increase and the Bloomberg Composite Crude Oil Subindex's 35% gain. They've done as well over the past year as the S&P 500 Energy Sector Index, which has gained 71%.

Exploration and Generation of Energy at a Rapid Pace

Approximately 30 U.S. firms engaged in the exploration and production of oil, natural gas, and other resources make, which PXE, a multi-cap blended fund, mimicsEarnings momentum, price momentum, quality, management action, and value are only some of the criteria used to choose stocks. Refining crude oil into gasoline, gathering and processing natural gas, and producing natural gas liquids are all included in the portfolio (NGL.

Energy firm-centric

ConocoPhillips, Diamondback Energy, and Marathon Petroleum Corp. are the top three holdings (MPC). The first two are upstream energy producers looking for new oil and gas reserves, while the third is a downstream energy firm concerned with distribution and processing.

Rate of Expenditures: 0.39%

The Dividend Yield Per Annum Is 1.96 Percent

Volume per day: 236,674

Investment Funds: $1,3 Billion

Start Date: May 1, 2006

BlackRock Financial Management, the Issuer

The Dow Jones U.S. Select Oil Exploration & Production Index is a benchmark for IEO. It represents the economic sector where IEO's assets are invested. The market capitalization-weighted ETF also holds companies involved in refining, marketing, and transportation.

Exploration and Production Corporation for Gas

Using a blended approach, the fund allocates its resources across a broad range of market cap sizes to pursue its investment objective of providing investors with exposure to growth and value businesses.

IEO's top three interests are the oil and gas exploration and production firms ConocoPhillips, EOG Resources Inc. (EOG), and Pioneer Natural Resources Company, Inc. (PXD).

An Introduction to the SPDR Select Sector Fund (XLE)

Return on Investment after One Year: 69.5%

Cost Percentage: 0.10

The Dividend Yield Per Annum Is 3.75 Percent

Normalized Three-Month Average Volume per day: 26,432,914

Assets of 44.6 Billion Dollars Are Being Managed

Launched on the 16th of December, 1998

Bank of State Street

Select Sector Energy Index

Energy Select Sector Index is the aim of XLE, which invests in U.S. firms operating in the oil and gas, consumable fuel, energy equipment, and energy services sectors. The product is highly liquid and has a low expense ratio, characteristics shared by many energy ETFs. Over 90% of the fund's holdings are in oil, gas, and consumable fuels companies, with the remaining 10% divided among energy equipment and services firms.

Provider of oilfield services

Exxon Mobil Corporation (XOM), Chevron Corporation (CVX), and Schlumberger Ltd. account for over half of XLE's total assets (SLB). The first two are oil and gas explorers and producers, while the oilfield services provider is a different type of business entirely.

Guidance On How To Invest One's Money

This article is for educational purposes only and does not constitute personalized investment advice or a suggestion to purchase or sell any security or engage in any particular investment plan. Although we believe the data presented here to be accurate and full, we make no guarantees. Not all readers will agree with our opinions or find our techniques advantageous.

All views, opinions, and analyses expressed in our content are made as of the publishing date. They are subject to change without notice due to the dynamic nature of the market and economic situations.

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