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8 Best Energy ETFs to Buy

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Whether GDP continues to grow or slows down is a key determinant behind the Federal Reserve’s decisions to start cutting down rates – which will be a bullish indicator for the economy and the stock market. XLE was launched in 1988 and has a very low expense ratio of 0.12%. Such a huge portfolio of companies at a surprisingly low expense ratio makes XLE one of the best ETFs to buy for 2023.

The longer the investors hold the BOIL ETF, the more the investor is exposed to drift and slippage effects, which can lead to price decay or erosion. Get this delivered to your inbox, and more info about our products and services. Many brokers offer their own oil ETFs, so if you have a specific fund you want to invest in, that can guide your brokerage choice.

Canadian Investors, Take Note: AI Is More Than Just a Trend

One drawback of the fund is that it has just $147.0 million under management, so shares may not be as liquid as investors would like. Also, the expense ratio is a bit high at 0.41%, equivalent to $4.10 for every $1,000 invested. Read on for a closer look at why investors would want to choose an oil ETF and some of the top oil ETFs of 2023. Those looking for diversification across industries can turn to some of the best index funds. At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict
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OKE announced that Gerald B. Smith, the founder, chairman, and chief executive officer of Smith Graham and Company Investment Advisors rejoins the company as a director to the board. John W. Gibson, ONEOK chairman believes that their board and shareholders will benefit from Smith’s rejoining. The company recently announced its intention to offer $500 million in aggregate principal amount of senior unsecured notes due 2026 in a private placement to eligible purchasers. Learn about ETFs that provide investments in top lithium and battery technology for the electric vehicle industry. The Global X Hydrogen ETF (HYDR -1.17%) was formed in 2021 and had $35.3 million in assets under management (AUM) as of late 2023.

So naturally, the potential for social media firms to earn money and expand their user bases is quite big in Asia. As a whole, the global social media market was worth $193 billion in 2022 and is expected to sit at $231 billion by the end of this year. From then until 2027, the sector is projected to grow at a compounded annual growth rate (CAGR) of 17.1% to be worth $434 billion by the end of the forecast period. Unsurprisingly, Asia Pacific was the largest market in 2022 and is expected to be the fastest growing moving forward. Equitrans Midstream Corporation is a natural gas gatherer in the United States.

Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. While it’s a more direct play on oil prices, it still won’t perfectly track WTI, and you won’t receive dividend income like you will with so many of the other energy ETFs on this list. When gas prices rise, people start looking to add oil securities to their portfolios.

President Donald Trump threatened to impose 10% tariffs on an additional $300 billion of Chinese goods, and then in a surprising move, delayed them. Here’s how to figure out if your dividend stock is a solid company or potential yield trap. This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. ETFs in an RRSP is to avoid the 15% foreign withholding tax on distributions. If you’re a Canadian and own U.S. stocks or bonds, the dividends or income you receive is taxed by Uncle Sam because, well, you’re a foreign investor.

ETFs in Focus

For this reason, some investors stick to basic broadly diversified index funds, such as those based on the Standard & Poor’s 500 index, and leave the trading to the pros. It’s also important to know why you’re buying into energy fusion markets review companies. For example, you may buy an energy ETF to help offset the effect of rising oil prices on your other investments. Or do you expect the investment in an energy ETF to always make a return on your investment?

Fidelity MSCI Energy Index ETF

Every conversation about energy ETFs rightfully should begin with the Energy Select Sector SPDR Fund (XLE, $91.26) – the largest such exchange-traded fund on the market by a country mile. At $39 billion, nord fx brokerage platform review XLE has roughly five times as much in assets under management than No. 2, the Vanguard Energy ETF (VDE, ~$.6 billion in AUM). The previous year will be (hopefully) almost impossible to replicate.

Oil ETF with the Best 1-Year Return: United States Brent Oil Fund LP (BNO)

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According to Lee, this regional diversity in FEMKX’s holdings is currently giving it an edge. And while the short-term effects of the trade war are hurting Chinese stocks and EEM, he believes the next two or three years will bring growth — potentially at a massive level — to China-based emerging market funds. UGA majorly invests in listed RBOB futures contacts and other gasoline futures contracts. These investments are collateralized by cash, cash equivalents, and US government obligations with remaining maturities of two years or less. Based on the nature of this fund, UGA is more towards offering a short-term tactical tilt towards a specific corner of the energy market. The ETF invests almost entirely in 1 specific niche of the oil market, so it is exceptionally volatile and subject to seasonal and unexpected price fluctuations.

These applications require a consistent and affordable source of energy, which natural gas can provide more reliably than intermittent renewable energy sources like wind and solar power. Natural gas is available 24/7 and can be used as a consistent energy source to meet these increasing energy needs. The Balance does not provide tax, investment, or financial services and advice.

There’s no doubt that these names — and a handful of other Chinese stocks — are set for success. As Lee argues, the trade war’s impacts on China’s economy will force growth, which should boost EEM. So for readers who saw EEM as a compelling choice, there are two future options. One, find a similar fund with more regional diversity to mitigate the trade war’s impact. Or two, wait for a resolution knowing that it’s likely EEM’s future returns will reflect China’s investment in its domestic economy.