The exchange-traded funds that invest in the securities of energy companies, including natural gas, oil, and alternative energy companies like those for electric cars. The exposure also consists of securities of the companies that produce and transport energy resources in both domestic and international markets, the ones that manufacture energy equipment, and certain utility operators.
With the considerable diversity in the energy sector, energy ETFs expose investors to a large variety of businesses, geographies, and assets. Therefore, energy ETFs are excellent additions to create a well-balanced investment portfolio. As the energy industry is a significant part of the global economy, energy ETFs also serve the purpose of hedging investments, curbing inflation, and spreading risks.
Ticker | Company Name | Last Price | 1-Year Return |
|---|---|---|---|
| XLE | Energy Select Sector SPDR Fund | #N/A | #N/A |
| AMLP | Alerian MLP ETF | #N/A | #N/A |
| VDE | Vanguard Energy ETF | #N/A | #N/A |
| EMLP | First Trust North American Energy Infrastructure Fund | #N/A | #N/A |
| XOP | SPDR S&P Oil & Gas Exploration & Production ETF | #N/A | #N/A |
| AMJ | JPMorgan Alerian MLP Index ETN | #N/A | #N/A |
| MLPA | Global X MLP ETF | #N/A | #N/A |
| IXC | iShares Global Energy ETF | #N/A | #N/A |
| OIH | VanEck Vectors Oil Services ETF | #N/A | #N/A |
| MLPX | Global X MLP & Energy Infrastructure ETF | #N/A | #N/A |
| ERUS | iShares MSCI Russia ETF | #N/A | #N/A |
| IYE | iShares U.S. Energy ETF | #N/A | #N/A |
| TPYP | Tortoise North American Pipeline Fund | #N/A | #N/A |
| FENY | Fidelity MSCI Energy Index ETF | #N/A | #N/A |
| TAN | Invesco Solar ETF | #N/A | #N/A |
| ICLN | iShares Global Clean Energy ETF | #N/A | #N/A |
| GREK | Global X FTSE Greece 20 ETF | #N/A | #N/A |
| ATMP | Barclays ETN+ Select MLP ETN | #N/A | #N/A |
| AMZA | InfraCap MLP ETF | #N/A | #N/A |
| ERX | Direxion Daily Energy Bull 3X Shares | #N/A | #N/A |
| IEO | iShares U.S. Oil & Gas Exploration & Production ETF | #N/A | #N/A |
| PZD | Invesco Cleantech™ ETF | #N/A | #N/A |
| PBW | Invesco WilderHill Clean Energy ETF | #N/A | #N/A |
| GUSH | Direxion Daily S&P Oil & Gas Exploration & Production Bull 3x Shares | #N/A | #N/A |
| XES | SPDR S&P Oil & Gas Equipment & Services ETF | #N/A | #N/A |
| QCLN | First Trust NASDAQ Clean Edge Green Energy Index Fund | #N/A | #N/A |
| RYE | Invesco S&P 500® Equal Weight Energy ETF | #N/A | #N/A |
| HDGE | AdvisorShares Ranger Equity Bear ETF | #N/A | #N/A |
| ACES | ALPS Clean Energy ETF | #N/A | #N/A |
| SMOG | VanEck Vectors Low Carbon Energy ETF | #N/A | #N/A |
| FXN | First Trust Energy AlphaDEX Fund | #N/A | #N/A |
| IEZ | iShares U.S. Oil Equipment & Services ETF | #N/A | #N/A |
| FAN | First Trust ISE Global Wind Energy Index Fund | #N/A | #N/A |
| FCG | First Trust ISE-Revere Natural Gas Index Fund | #N/A | #N/A |
| DIG | ProShares Ultra Oil & Gas | #N/A | #N/A |
| PBD | Invesco Global Clean Energy ETF | #N/A | #N/A |
| ENFR | Alerian Energy Infrastructure ETF | #N/A | #N/A |
| FILL | iShares MSCI Global Energy Producers ETF | #N/A | #N/A |
| NRGD | MicroSectors U.S. Big Oil Index -3X Inverse Leveraged ETN | #N/A | #N/A |
| NRGU | MicroSectors U.S. Big Oil Index 3X Leveraged ETN | #N/A | #N/A |
| DRIP | Direxion Daily S&P Oil & Gas Exploration & Production Bear 3x Shares | #N/A | #N/A |
| CRAK | VanEck Vectors Oil Refiners ETF | #N/A | #N/A |
| MLPY | Morgan Stanley Cushing MLP High Income Index ETN | #N/A | #N/A |
| EINC | VanEck Vectors Energy Income ETF | #N/A | #N/A |
| PXI | Invesco DWA Energy Momentum ETF | #N/A | #N/A |
| GRID | First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund | #N/A | #N/A |
| MLPB | ETRACS Alerian MLP Infrastructure Index ETN | #N/A | #N/A |
| YLCO | Global X YieldCo Index ETF | #N/A | #N/A |
| BMLP | Dorsey Wright MLP Index ETN | #N/A | #N/A |
| AMUB | ETRACS Alerian MLP Index ETN | #N/A | #N/A |
| ERY | Direxion Daily Energy Bear 3X Shares | #N/A | #N/A |
| PXE | Invesco Dynamic Energy Exploration & Production ETF | #N/A | #N/A |
| MLPO | Credit Suisse S&P MLP Index ETN | #N/A | #N/A |
| IMLP | iPath S&P MLP ETN | #N/A | #N/A |
| PSCE | Invesco S&P SmallCap Energy ETF | #N/A | #N/A |
| NLR | VanEck Vectors Uranium+Nuclear Energy ETF | #N/A | #N/A |
| PYPE | ETRACS NYSE Pickens Core Midstream Index ETN | #N/A | #N/A |
| JHME | John Hancock Multi-Factor Energy ETF | #N/A | #N/A |
| FRAK | VanEck Vectors Unconventional Oil & Gas ETF | #N/A | #N/A |
| DUG | ProShares Ultra Short Oil & Gas | #N/A | #N/A |
| PXJ | Invesco Dynamic Oil & Gas Services ETF | #N/A | #N/A |
| USAI | American Energy Independence ETF | #N/A | #N/A |
| CNRG | SPDR S&P Kensho Clean Power ETF | #N/A | #N/A |
| FTXN | First Trust Nasdaq Oil & Gas ETF | #N/A | #N/A |
| DDG | Short Oil & Gas ProShares | #N/A | #N/A |
| CHIE | Global X MSCI China Energy ETF | #N/A | #N/A |
Factors to Consider Before Investing in Energy ETFs
Investors must consider the types of energy sources they would like to invest in. The selection of energy ETFs will largely depend on the kind of energy resources, varying from coal, natural gas, nuclear energy, renewable energy, and alternative sources of energy to a mixture of some or all.
Another significant factor to be considered is the expense ratio of the energy ETFs. The money that the ETFs use to cover their expenses should be as low as possible to generate high returns to investors.
Additionally, investors must also keep in mind that energy ETFs are volatile investments and get affected by shifts in demand and geopolitical events. Therefore, the overall economic and political environment must be taken into account before investing in energy ETFs.
Which Energy ETFs Should I Buy?
A vast number of energy ETFs trade on the US stock exchanges. Some follow a complete sector index, while others are focused on a specific sub-sector. We have shortlisted the best energy ETFs for investors to make their selection from.
Investors should buy the energy ETFs that go well with their overall investment goals. The selection should be based on individual risk tolerance, geographical exposure, sub-sector of interest, or a balanced mix of all. The expense ratios of energy ETFs should always remain a vital criterion before buying energy ETFs to generate high and stable returns on investment.
