Energy exchange traded funds slipped more than 1% on Monday and were the market’s worst-performing sector along with financials as the ETFs lost ground with oil and Halliburton (NYSE: HAL), which faced a legal setback.

Energy Select Sector SPDR Fund (NYSEArca: XLE) was down 1.4% in recent trading. Shares of Halliburton, a top holding at 3.5% of the ETF, were off nearly 4%.

The Supreme Court ruled Monday that Halliburton shareholders can pursue a class-action lawsuit claiming the oil company inflated its stock price, Reuters reported.

A pullback in crude oil prices to under $100 a barrel also hurt energy ETFs on Monday. U.S. Oil Fund (NYSEArca: USO) slid more than 1%.

The energy ETF was outperforming the broader market so far this year as of June 3 with a gain of 10.6%, according to Morningstar.

Energy Select Sector SPDR Fund

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

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