7 Best Energy Exchange Traded Funds (ETFs) To Invest In 2023

Energy is one of few sectors expected to end 2022 green. Natural resource companies including coal, oil, and natural gas saw their share prices rise with rising inflation.

Investing in an energy sector ETF can provide greater diversification than picking individual energy firms. Here are the top seven energy ETFs to buy right now.

[{"selector":"#anim-a65d51cc-b791-4b2a-b8c2-4ab9c9c9e392 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.249999886225726%, 0, 0) translate(25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] Unsplash Learn more

Energy Select Sector SPDR Fund (XLE) Investors who want to focus on the S&P 500's large-cap firms' brand awareness can purchase XLE for targeted energy sector exposure.

[{"selector":"#anim-181d90e8-ac1d-4c8f-b6ee-8ff57e8cb07a [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(49.847881663089744%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Unsplash Learn more

Vanguard Energy ETF (VDE) VDE has 112 energy equities, five times as numerous as XLE. The ETF is market-cap weighted, with Exxon and Chevron accounting for 38%.

[{"selector":"#anim-997181e4-5f8d-4713-9f72-6fc830e82f5d [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(31.493749887704798%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Unsplash Learn more

Shares U.S. Energy ETF (IYE) IYE, which tracks the Russell 1000 Energy RIC 22.5/45 Capped Gross Index, is another strong choice forUS energy equities.

[{"selector":"#anim-2506ae24-a6ac-4ae1-9f58-b8c73a2f79ec [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(34.84411076253812%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Unsplash

Shares Global Energy ETF (IXC) IXC, which tracks the S&P Global 1200 Energy Sector Index, is a wonderful method to acquire both domestic and international energy equities under one ticker.

[{"selector":"#anim-2fac8163-1188-462e-8049-1c41ce2cda1d [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-31.249999886225726%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Unsplash

Invesco S&P 500 Equal Weight Energy ETF (RYE) RYE owns 25 enerqy equities in the U.S. So, Chevron gets the same allotment as EQT Corp.

[{"selector":"#anim-7eaca996-d3a1-4d43-905a-6bc5b1b4c13a [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-37.18261710972462%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] Unsplash Learn more

VanEck Oil Services ETF (OIH) Investors that are bullish on a certain industry in the energy sector, such as oil, can use ETFs such as OlH to gain specialised exposure.

SPDR S&P Oil & Gas Exploration & Production ETF (XOP) XOP is for oil and gas investors. This ETF tracks S&P Oil & Gas Exoloration & Production Select Industry Index, holding 61 U.S.

Share if you liked this story