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Energy ETFs: Powering Your Portfolio with Sustainable and Traditional Resources

Your comprehensive guide to investing in Energy through diversified ETFs

Guide to Investing in Energy ETFs

The energy sector is a cornerstone of the global economy, encompassing traditional oil and gas giants, renewable energy pioneers, and everything in between. Energy ETFs provide investors with diversified exposure to this critical sector, offering a balanced approach to investing in fossil fuels, clean energy, and the transition to sustainable resources. Whether you're interested in the stability of established energy companies or the growth potential of renewables, Energy ETFs can help you navigate this dynamic landscape with ease.

Key Benefits:

Diversified Energy Exposure

Gain access to a broad range of energy companies, from oil and gas producers to renewable energy leaders, reducing reliance on any single segment.

Income Potential

Many energy companies offer attractive dividends, making Energy ETFs a potential source of steady income.

Inflation Hedge

Energy commodities often perform well during inflationary periods, providing a buffer against rising prices.

Growth and Transition Opportunities

Participate in the global shift toward renewable energy while maintaining exposure to traditional energy sources that remain critical to the economy.

ETFs in Sector: Energy

ETF Name	Ticker	Expense Ratio	AUM	Asset Class	1 Month	YTD	3 Year	ALL Years
Energy Select Sector SPDR Fund	XLE	0.08 %	$33.1B	Equity	8.52 %	48.06 %	16.01 %	9.22 %
Alerian MLP ETF	AMLP	0.85 %	$10.8B	Equity	3.99 %	26.60 %	20.09 %	6.17 %
Vanguard Energy ETF	VDE	0.09 %	$9.7B	Equity	8.10 %	47.82 %	16.03 %	8.77 %
Fidelity Investment Grade Securitized ETF	FSEC	0.36 %	$3.5B	Bond	-5.53 %	17.23 %	5.35 %	6.56 %
First Trust North American Energy Infrastructure Fund	EMLP	0.95 %	$3.3B	Equity	1.52 %	18.30 %	21.37 %	9.71 %
Global X MLP & Energy Infrastructure ETF	MLPX	0.45 %	$2.8B	Equity	3.48 %	29.80 %	27.73 %	9.55 %
Global X Uranium ETF	URA	0.69 %	$2.6B	Equity	5.59 %	9.67 %	29.85 %	-2.19 %
Nuveen Growth Opportunities ETF	NUGO	0.56 %	$2.4B	Equity	-2.60 %	8.17 %	22.66 %	12.37 %
SPDR S&P Oil & Gas Exploration & Production ETF	XOP	0.35 %	$2.2B	Equity	10.85 %	55.83 %	10.95 %	3.14 %
Global X MLP ETF	MLPA	0.45 %	$1.9B	Equity	3.83 %	26.15 %	18.17 %	4.83 %
iShares Global Energy ETF	IXC	0.41 %	$1.8B	Equity	7.68 %	44.81 %	17.44 %	8.80 %
Fidelity MSCI Energy Index ETF	FENY	0.08 %	$1.6B	Equity	3.05 %	40.94 %	14.23 %	6.05 %
iShares Global Clean Energy ETF	ICLN	0.41 %	$1.3B	Equity	-38.72 %	9.91 %	6.84 %	-3.82 %
iShares U.S. Energy ETF	IYE	0.39 %	$1.3B	Equity	7.69 %	46.47 %	15.64 %	7.83 %
VanEck Oil Services ETF	OIH	0.35 %	$1.2B	Equity	4.38 %	50.77 %	8.58 %	-2.26 %
United States Oil Fund LP	USO	0.70 %	$1.1B	Commodity	19.10 %	116.85 %	24.19 %	-6.12 %
VanEck Uranium and Nuclear ETF	NLR	0.61 %	$988.6M	Equity	5.09 %	-1.01 %	26.22 %	3.78 %
Invesco Solar ETF	TAN	0.71 %	$738.5M	Equity	-7.94 %	-2.81 %	-4.75 %	-7.19 %
iShares North American Natural Resources ETF	IGE	0.41 %	$641.1M	Equity	6.69 %	33.97 %	19.02 %	8.03 %
SPDR S&P North American Natural Resources ETF	NANR	0.35 %	$627.5M	Equity	6.88 %	35.67 %	21.75 %	15.59 %
ProShares UltraShort Bloomberg Natural Gas	KOLD	—	$573.9M	Commodity	-6.95 %	-8.27 %	-1.57 %	9.27 %
iShares U.S. Oil & Gas Exploration & Production ETF	IEO	0.40 %	$567.1M	Equity	12.45 %	60.21 %	14.82 %	6.82 %
SPDR S&P Capital Markets ETF	KCE	0.35 %	$483.6M	Equity	1.40 %	11.70 %	25.12 %	7.85 %
InfraCap MLP ETF	AMZA	2.18 %	$452.8M	Equity	4.47 %	36.95 %	23.90 %	4.60 %
United States Natural Gas Fund LP	UNG	1.01 %	$440.3M	Commodity	-49.31 %	-17.70 %	-27.83 %	-28.36 %
ProShares Ultra Bloomberg Crude Oil	UCO	—	$437.9M	Commodity	21.86 %	159.94 %	13.30 %	-23.15 %
First Trust Natural Gas ETF	FCG	0.60 %	$397.2M	Equity	6.91 %	37.53 %	8.79 %	-4.00 %
First Trust NASDAQ Clean Edge Green Energy Index Fund	QCLN	0.59 %	$394M	Equity	-5.19 %	10.69 %	3.10 %	5.26 %
First Trust Energy AlphaDEX Fund	FXN	0.61 %	$333.4M	Equity	2.13 %	40.46 %	11.17 %	2.42 %
Alerian Energy Infrastructure ETF	ENFR	0.35 %	$316.5M	Equity	3.35 %	31.56 %	28.02 %	8.74 %
Hartford Core Bond ETF	HCRB	0.29 %	$310.5M	Bond	-17.92 %	-51.78 %	4.71 %	9.25 %
Strive U.S. Energy ETF	DRLL	0.41 %	$302.3M	Equity	9.40 %	50.20 %	14.49 %	16.28 %
Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares	GUSH	—	$270.5M	Equity	22.21 %	120.12 %	6.72 %	-40.67 %
Direxion Daily Energy Bull 2X Shares	ERX	—	$267.9M	Equity	16.90 %	103.65 %	20.51 %	-5.96 %
YieldMax AMZN Option Income Strategy ETF	AMZY	1.17 %	$248.2M	Equity	-6.83 %	5.27 %	19.62 %	21.98 %
ProShares Ultra Bloomberg Natural Gas	BOIL	—	$228M	Commodity	4.30 %	—	—	-77.18 %
ETRACS Alerian MLP Infrastructure Index ETN Series B	MLPB	0.85 %	$227.8M	Equity	3.84 %	30.52 %	22.81 %	6.80 %
Invesco WilderHill Clean Energy ETF	PBW	0.65 %	$215.6M	Equity	-9.13 %	3.68 %	-1.60 %	-2.66 %
Direxion Daily AMZN Bull 2X Shares	AMZU	—	$197.9M	Equity	-18.65 %	2.53 %	17.60 %	12.23 %
Invesco DB Oil Fund	DBO	0.75 %	$197.5M	Commodity	17.31 %	100.49 %	17.08 %	1.11 %
SPDR S&P Oil & Gas Equipment & Services ETF	XES	0.35 %	$183.1M	Equity	2.83 %	51.30 %	9.73 %	-3.02 %
ProShares UltraShort Bloomberg Crude Oil	SCO	—	$175M	Commodity	-19.05 %	-72.96 %	-32.47 %	-26.95 %
Direxion Daily Aerospace & Defense Bull 3X Shares	DFEN	—	$168.8M	Equity	-34.59 %	-11.57 %	52.60 %	11.46 %
DB Gold Double Long Exchange Traded Notes	DGP	—	$155M	Commodity	6.00 %	89.44 %	60.27 %	10.46 %
iShares U.S. Oil Equipment & Services ETF	IEZ	0.40 %	$155M	Equity	3.48 %	47.39 %	9.00 %	-1.41 %
TrueShares Active Yield ETF	ERNZ	0.75 %	$152.3M	Equity	0.00 %	4.50 %	47.70 %	9.84 %
First Trust Global Wind Energy ETF	FAN	0.60 %	$130.4M	Equity	63.32 %	16.87 %	17.65 %	37.56 %
VanEck Low Carbon Energy ETF	SMOG	0.61 %	$117.3M	Equity	34.40 %	8.03 %	9.91 %	1.77 %
SPDR S&P Kensho Clean Power ETF	CNRG	0.45 %	$116.6M	Equity	-3.93 %	67.29 %	8.76 %	16.62 %
iShares MSCI Agriculture Producers ETF	VEGI	0.39 %	$98.5M	Equity	8.94 %	27.05 %	9.99 %	6.54 %
United States Brent Oil Fund LP	BNO	0.94 %	$98.1M	Commodity	18.38 %	109.46 %	24.11 %	5.30 %
iShares MSCI Kuwait ETF	KWT	0.74 %	$95.9M	Equity	2.00 %	1.21 %	11.65 %	7.18 %
Direxion Daily Gold Miners Index Bear 2x Shares	DUST	—	$94.9M	Equity	-21.49 %	-55.17 %	-69.80 %	-50.47 %
ProShares Ultra Energy	DIG	—	$90.8M	Equity	16.78 %	102.95 %	20.31 %	97.27 %
United States Gasoline Fund LP	UGA	1.17 %	$90M	Commodity	13.26 %	117.14 %	22.46 %	5.55 %
Invesco Energy Exploration & Production ETF	PXE	0.63 %	$86.3M	Equity	10.60 %	53.49 %	10.90 %	6.94 %
ALPS Clean Energy ETF	ACES	0.55 %	$85.6M	Equity	-5.62 %	-6.68 %	-8.16 %	3.28 %
Invesco S&P SmallCap Energy ETF	PSCE	0.29 %	$68.8M	Equity	7.72 %	52.28 %	5.64 %	-3.16 %
ProShares K-1 Free Crude Oil ETF of Benef Interest	OILK	0.69 %	$68M	Commodity	10.65 %	70.76 %	13.04 %	4.40 %
Invesco Global Clean Energy ETF	PBD	0.75 %	$67.7M	Equity	-2.42 %	10.87 %	5.12 %	-39.58 %
WisdomTree Efficient Gold Plus Equity Strategy Fund	GDE	0.20 %	$63.2M	Multi-Asset	-1.38 %	8.81 %	46.00 %	27.59 %
Amplify Lithium & Battery Technology ETF	BATT	0.59 %	$56M	Equity	1.02 %	14.28 %	13.26 %	-80.49 %
Invesco DB Energy Fund	DBE	0.75 %	$54.6M	Commodity	16.71 %	108.36 %	21.06 %	3.28 %
Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X Shares	DRIP	—	$53.1M	Equity	-24.03 %	-61.18 %	-27.26 %	11.08 %
MicroSectors Oil & Gas Exp. & Prod. 3x Leveraged ETN	OILU	—	$49.7M	Commodity	22.97 %	147.76 %	4.95 %	18.34 %
United States 12 Month Oil Fund LP	USL	0.79 %	$47.8M	Commodity	8.99 %	65.88 %	11.79 %	38.67 %
Global X Gold Explorers ETF	GOEX	0.65 %	$47.2M	Equity	9.73 %	15.91 %	61.18 %	1.43 %
Invesco Oil & Gas Services ETF	PXJ	0.66 %	$32.5M	Equity	7.07 %	63.58 %	18.80 %	-1.25 %
VanEck Oil Refiners ETF	CRAK	0.62 %	$24.5M	Equity	18.39 %	76.75 %	28.31 %	14.51 %
Global X Renewable Energy Producers ETF	RNRG	0.65 %	$23.8M	Equity	20.46 %	3.81 %	2.84 %	-2.45 %
First Trust Emerging Markets Equity Select ETF	RNEM	0.75 %	$18M	Equity	1.31 %	4.88 %	8.39 %	9.39 %
Direxion Daily Energy Bear 2X Shares	ERY	—	$17.8M	Equity	-14.98 %	-56.30 %	-26.66 %	-40.40 %
ProShares UltraShort Energy	DUG	—	$17.4M	Equity	-14.82 %	-56.41 %	-27.15 %	-30.59 %
United States 12 Month Natural Gas Fund LP	UNL	1.71 %	$16.4M	Commodity	-3.18 %	-21.54 %	-19.21 %	-11.83 %
First Trust EIP Carbon Impact ETF	ECLN	0.96 %	$15.3M	Equity	0.00 %	11.66 %	10.55 %	9.84 %
Defiance Next Gen H2 ETF	HDRO	0.30 %	$14.5M	Equity	0.00 %	0.00 %	-24.52 %	-32.43 %
Texas Capital Texas Oil Index ETF	OILT	0.35 %	$12.9M	Equity	7.82 %	45.84 %	—	13.78 %
MicroSectors Oil & Gas Exp. & Prod. -3x Inverse Leveraged ETN	OILD	—	$12.8M	Commodity	-31.14 %	-72.84 %	-46.51 %	10.57 %
Kurv Yield Prem Strategy Amazon ETF	AMZP	0.99 %	$12.2M	Equity	-6.08 %	4.26 %	20.81 %	6.66 %
Range Global Coal Index ETF	COAL	0.85 %	$12M	Equity	14.52 %	24.51 %	—	6.43 %
Touchstone Climate Transition ETF	HEAT	0.69 %	$11.2M	Equity	0.00 %	0.00 %	7.61 %	7.30 %
Global X MLP & Energy Infrastructure Covered Call ETF	MLPD	0.60 %	$11M	Equity	3.52 %	8.78 %	10.06 %	6.16 %
Range Global LNG Ecosystem Index ETF	LNGZ	0.85 %	$5.5M	Equity	4.90 %	-1.73 %	4.22 %	5.51 %
Virtus Duff & Phelps Clean Energy ETF	VCLN	0.59 %	$5.4M	Equity	1.66 %	12.84 %	18.71 %	7.81 %
Gabelli Automation ETF	GAST	0.00 %	$5.1M	Equity	-12.33 %	20.13 %	16.17 %	11.74 %
Themes Uranium & Nuclear ETF	URAN	0.35 %	$5M	Equity	3.59 %	-2.82 %	—	23.30 %
Direxion Daily AMZN Bear 1X Shares ETF	AMZD	1.02 %	$4.6M	Equity	10.14 %	-12.64 %	-20.96 %	-19.30 %
First Trust S-Network Streaming and Gaming ETF	BNGE	0.70 %	$4.4M	Equity	-2.39 %	-15.02 %	14.28 %	6.51 %
Guinness Atkinson Funds SmartETFs Sustainable Energy II Fund	SOLR	0.79 %	$3.8M	Equity	0.00 %	12.11 %	4.47 %	9.93 %
ETRACS Quarterly Pay 1.5x Leveraged Alerian MLP Index ETN	MLPR	—	—	Equity	5.98 %	47.50 %	33.06 %	33.01 %
MicroSectors U.S. Big Oil -3 Inverse Leveraged ETN	NRGD	—	—	Equity	-33.85 %	-82.26 %	-50.97 %	6.16 %
MicroSectors U.S. Big Oil 3 Leveraged ETN	NRGU	—	—	Equity	35.27 %	244.11 %	—	71.44 %
Emles Real Estate Credit ETF	REC	—	—	Bond	0.00 %	-18.55 %	—	-9.50 %
ETRACS Crude Oil Shares Covered Call ETN	USOI	—	—	Multi-Asset	9.83 %	43.86 %	10.93 %	13.58 %

Why Invest?

Energy ETFs allow investors to capitalize on the sector's cyclical nature and long-term growth trends, including the global transition to renewable energy. By investing in Energy ETFs, you gain exposure to a mix of traditional energy producers, renewable energy innovators, and utility companies, reducing the risks associated with individual stocks. These funds also provide opportunities for dividend income, inflation hedging, and participation in the evolving energy landscape.

Expert Insights:

When evaluating Energy ETFs, consider the balance between traditional and renewable energy holdings, as well as geographic diversification. Pay attention to factors like oil price volatility, regulatory policies, and technological advancements in clean energy. Energy ETFs can be a valuable addition to a portfolio, but it's important to align your investment with your risk tolerance and long-term goals, given the sector's sensitivity to macroeconomic conditions and geopolitical events.

Investment Considerations

While the energy sector offers compelling opportunities, investors should be mindful of these key factors:

Commodity Price Volatility

Oil and gas prices can fluctuate significantly due to geopolitical events, supply-demand imbalances, and macroeconomic conditions.

Regulatory and Policy Risks

Government policies, subsidies, and environmental regulations can heavily influence the profitability of energy companies.

Technological Disruption

Advances in renewable energy and energy storage could disrupt traditional energy markets, creating both risks and opportunities.

Portfolio Allocation

Energy ETFs can serve as a tactical or long-term holding, but their cyclical nature warrants careful positioning within a diversified portfolio.

Sector Outlook

Sector Trends and Growth Drivers

The energy sector is undergoing significant transformation, driven by technological advancements, regulatory changes, and shifting consumer preferences.

Renewable Energy Expansion

Solar, wind, and other renewable energy sources are growing rapidly as governments and corporations commit to reducing carbon emissions.

Energy Transition

The shift from fossil fuels to cleaner energy sources is creating opportunities for companies involved in battery storage, hydrogen, and smart grid technologies.

Oil and Gas Resilience

Despite the push for renewables, traditional energy sources remain vital to global infrastructure, with demand expected to persist for decades.