Along with the positive cyclical data that has helped the energy sector, long-term trends will continue to support these energy stocks. [Energy ETF Highest Since 2008]
“Oil, in particular, is becoming harder to find and extract,” according to Morningstar analyst John Gabriel. “Global oil production has been stagnant since 2005, even after a trillion-dollar investment by the oil and gas industry. The number of oil discoveries as well as the size of discoveries made has been declining for decades. Oil-services firms’ expertise is growing increasingly more valuable as the industry seeks to explore and extract oil from ever-more-challenging frontiers in new deep-water and even Arctic efforts.”
Other energy sector ETFs include:
- Vanguard Energy Index Fund (NYSEArca: VDE): up 8.9% year-to-date
- Market Vectors Oil Services ETF (NYSEArca: OIH): up 10.4% year-to-date
- iShares Dow Jones US Energy Sector Index Fund (NYSEArca: IYE): up 9.5% year-to-date
In comparing the energy sector with the broader S&P 500, XLE is finally gaining against SPY.
For more information on energy, visit our energy category.
Max Chen contributed to this article.