It’s also worth noting that the fund is highly concentrated: one-third of the fund is comprised of the two largest companies in the fund, Schulmberger and Halliburton. The fund mirrors the performance of its underlying index, the Market Vectors U.S. market.Īs of this writing, the ETF has been trading at $12.95 a share. companies, although it also includes some foreign companies that trade on the U.S. The VanEck Vectors Oil Services ETF has $617.4 million in AUM and focuses primarily on U.S. More specifically, the fund includes companies that deal with everything surrounding oil-oil equipment, drilling, and exploration. VanEck Vectors Oil Services ETF (OIH)Īs the name suggests, this ETF deals with oil. But for investors who want to pursue a more global approach while still investing in well-known companies, this ETF can be an appealing choice. It has over $875 million in AUM, and with an expense ratio of 0.46% it’s more expensive than other ETFs on this list. Shares are trading for $30.72 as of writing, and the fund has reported a year-to-date return of 6.65%. The companies incorporated in the fund focus on oil and gas, but include companies from France, the United Kingdom, and Canada in addition to American companies. iShares Global Energy ETF (IXC)įor investors interested in looking beyond the United States, the iShares Global Energy ETF can provide an opportunity to take on a more global approach.
The fund reported a year-to-date return of 6.30%. Keep in mind that the Vanguard Energy ETF is considered to be quite volatile in price, so if you’re considering investing in it, it’s probably best if it only comprises a small percentage of your portfolio. As of December 31, 2018, the ETF has $3.7 billion in AUM, and acts as a passively managed fund that includes different-sized companies involved in oil, coal, and natural gas.Īs of the writing of this article, the ETF has been trading at $80.18 a share. Vanguard Energy ETF (VDE)įor those of you keen to invest in traditional energy sources but don’t want to spend a lot on fees, the Vanguard Energy ETF is a popular addition to diversified portfolios. Coupled with a low expense ratio (0.13%), this ETF is a popular choice for investors looking to get a broad exposure to traditional energy sources.Īs of writing, the Energy Select Sector SPDR ETF has been trading at $60.83 a share and has registered an average year-to-date return of 8.08%. It’s got all the big players: Exxon Mobil, Chevron, and ConocoPhillips are the fund’s top three holdings. With nearly $13.5 billion in AUM, this large fund provides investors with broad exposure to companies in the oil, gas, and consumable fuel, energy equipment and services industries. With that in mind, here are some of the most popular energy ETFs of 2021, listed by decreasing assets under management (AUM), which refers to the total market value of the investments that a financial institution manages on behalf of its clients and itself. Whether that be an energy ETF or a bond or a mutual fund, is the one that best suits your needs and goals. Energy ETFs are a smart option for investors looking for significant diversification, access to various key players within the energy sector, and low costs. There are ETFs for almost any sector or industry you could think of, including the energy sector. They’re popular because they come with built-in diversification and tend to be cheap, since they’re usually not managed by humans. An ETF (exchange traded fund) is an investment fund that lets you buy a large basket of individual stocks or bonds in one purchase. Geopolitical events and shifting demands can lower or raise prices, so while investing in energy should be part of your investment strategy, diversification is your primary risk reduction strategy.īuying whole shares of specific companies may simply be out of your price range, or perhaps you’d really like to invest in various clean energy companies but simply don’t have the budget for it. Get started and we'll build you a personalized investment portfolio in a matter of minutes.
Wealthsimple Invest is an automated way to grow your money like the world's most sophisticated investors. Everyone around the globe needs energy-whether that be to charge your laptop, light the streets of a city, or keep a hospital running-the actual price of commodities within the energy sector can be volatile. There’s clean energy, there’s coal, there’s renewable energies, oil, natural gas, nuclear energy. The energy sector is one of the most important (and largest) fields in both domestic and global markets, so it makes sense that investors focused on growing their investments and maintaining a diversified portfolio want a piece of that pie. If you want to have a diversified portfolio, then stock from energy companies will most likely play a part in your investment strategy.
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