“Uncover the Top 7 Energy ETFs Redefining Investment Success”
Summary: Here, we’ll discuss the top seven energy ETFs of 2022. Keep in mind, investing in energy ETFs isn’t for everyone– particularly those wanting a long-term, stable investment. However, with the current high oil prices and unpredictably rising inflation, some have turned to energy ETFs as a short-term solution.
For people wanting to invest in the energy industry, ETFs are an easy route. When owning an ETF, you hold a share in a selection of energy-related stocks. This gives access to a portion of the whole energy sector without needing to buy each stock individually.
But what are energy ETFs? They are financial assets that focus on the stocks of companies in the energy sector, dealing with oil, natural gas, as well as renewable energies. We want to highlight that their values are highly dependent on oil and gas prices. When these prices increase, their values typically go up as well.
Now, let’s highlight some of the best energy ETFs:
1. **Energy Select Sector SPDR Fund (XLE)**: This fund invests in the energy companies in the S&P 500, like Exxon Mobil and Chevron.
2. **Vanguard Energy ETF (VDE)**: This fund includes large, medium, and small-cap energy companies for more balance. Exxon Mobil and Chevron hold the top spots here too.
3. **iShares U.S. Oil & Gas Exploration & Production ETF (IEO)**: This ETF mimics the Dow Jones U.S. Select Oil Exploration & Production Index. Top holdings are ConocoPhillips and EOG Resources.
4. **Invesco Dynamic Energy Exploration & Production ETF (PXE)**: This fund tracks Dynamic Energy Exploration & Production Intellidex Index, which includes around 30 different stocks, none of which stake more than 5% of the total ETF.
5. **Fidelity MSCI Energy Index (FENY)**: This ETF follows the MSCI USA IMI Energy 25/50 Index, featuring many of the world’s largest oil producers. Exxon Mobil and Chevron make up about 37% of the holdings.
6. **Global X MLP & Energy Infrastructure ETF (MLPX)**: The fund tracks the Stuttgart Solactive MLP & Energy Infrastructure, while offering an attractive 5% dividend yield.
7. **United States 12 Month Oil Fund LP (USL)**: Unique in its approach, the USL invests in oil futures for the next year, serving as a potential hedge against inflation.
Energy ETFs could prove beneficial in specific situations and may serve as an inflationary defense. Amidst high oil and gas prices, 2022 seems to favor them. Hence, more investors have found value in such ETFs.
Remember to use trading platforms like Public.com, Webull, or Moomoo for free trading. Note: This information doesn’t constitute as financial advice, and you might lose money with these ETFs. Do seek professional help if you are unsure.