Energy stocks and exchange-traded funds (ETFs) were a popular bet heading into 2022. So far, so good – the sector has been by far and away the best performer as the end of the year nears.
And this is still the case, even as oil and gas prices have rolled back from highs of about $130 per barrel earlier this year, down into the $80s as of this writing. That decline from early 2022 highs may have slowed down some of the red-hot gains for the energy sector that we saw early on, but stocks are still boasting impressive returns. In fact, when you look at the top-performing ETFs of any flavor this year, the vast majority of them are related to energy in some way.
Past performance is never an indicator of future returns, so it’s worth taking that with a grain of salt. But given chronic supply constraints brought on by global sanctions on Russia and strong baseline demand from around the world, chances are that energy prices are going to stay elevated for the foreseeable future – and prop up energy stocks for some time as a result.
If you want to increase your exposure to this sector, here are nine top energy ETFs to consider. Most of these funds are extremely sensitive to energy-price movements – but that relationship cuts both ways. If you believe there’s additional upside to be had in oil and natural gas – like we saw following the recent OPEC+ output cut announcement – these funds should help you leverage those gains. On the other hand, if crude and nat-gas prices head even lower, these ETFs could struggle.
Data is as of Oct. 11. Yields represent the trailing 12-month yield, which is a standard measure for equity funds.