Energy exchange traded funds (ETFs) cover the entire energy sector including companies involved in the discovery, extraction and production of energy as well as alternative energy. Some of the energy companies include ExxonMobil, BP and Total. Oil and gas are considered commodities, Seeking Alpha says. Sector ETFs are more concentrated than broad index ETFs and may have a higher expense ratio. Sector ETFs come in four levels:
- United States or international
- Main industry sub-groups
- Narrower groups of companies
To see a list of energy ETFs, go to Seeking Alpha’s article.
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