Explore the Top Seven Energy ETFs for Powerful Investing Opportunities!

Looking to invest in the energy sector? If the big ride of oil prices this year, hiking to all-time highs, has caught your attention, then Energy Exchange-Traded Funds (ETFs) are for you. Simply put, buying an energy ETF means purchasing a little piece of different companies involved in the energy business – like a mini energy stocks portfolio.

While perhaps not the first stop for long-term investors, energy ETFs are making waves in 2022. With inflation speeding up and gas prices rising, these funds provide a short-term solution for many.

In this digestible guide, we’re going to introduce you to seven of the top energy ETFs out there. If you want to dive deeper, consider checking out StockRover. It lets you compare your chosen stocks or ETFs and even create and experiment with your own portfolios.

But before you start buying, remember investing is a risk, not a guarantee. You could end up losing money with these ETFs. Always consider your own financial situation and seek advice from a professional if you need it.

So, what are Energy ETFs? They invest in shares of oil and natural gas companies and sometimes in alternative energy companies too. Their value greatly fluctuates based on oil and gas prices. You can trade them any time the market is open, just like individual stocks.

Here are the top energy ETFs:

1. Energy Select Sector SPDR Fund (XLE) – Mainly investing in big U.S. energy firms like Exxon Mobil and Chevron.

2. Vanguard Energy ETF (VDE) – This fund includes large, medium, and small-cap U.S. companies in the energy sector.

3. iShares U.S. Oil & Gas Exploration & Production ETF (IEO) – This follows the U.S. Select Oil Exploration & Production Index and offers diverse holdings.

4. Invesco Dynamic Energy Exploration & Production ETF (PXE) – Uses the Dynamic Energy Exploration & Production Intellidex Index, and aims to perform better than market-cap-weighted benchmarks.

5. Fidelity MSCI Energy Index (FENY) – Tracks big global oil producers and offers diversification among about 80 different companies.

6. Global X MLP & Energy Infrastructure ETF (MLPX) – Track the Stuttgart Solactive MLP & Energy Infrastructure. Offers good dividends but is not the most diversified.

7. United States 12 Month Oil Fund LP (USL) – Unique as it invests in crude oil futures for the next 12 months only.

Energy ETFs are not for everyone and are best suited for specific financial circumstances. They can be a good bet when inflation is high and with oil and natural gas prices peaking this year, they can offer attractive returns. Invest wisely and good luck!