Analysts expect that trend to continue in 2016. Bright spots have been few and far between for equity-based energy exchange traded funds this year and for all the struggles the encountered by the sector, it still is not inexpensive relative to the S&P 500. In fact, the energy patch is downright pricey compared to the broader market. This after a spate of spending cuts that have not been met with widespread enthusiasm among investors. [Oil ETF Dividends Appear Safe…Sort Of]

“The problem that many energy investors today face is that it is not clear which energy stocks are well positioned, and which are not. While the sector as a whole may represent a good value, some companies will likely end up going bankrupt or being sold in a distressed sale before the market turns around. Investors betting on individual stocks in this market run the risk of picking a name that could go bankrupt before the market turns,” adds OilPrice.com

Energy Select Sector SPDR