The energy sector is just one of two S&P 500 sectors that currently trades at a noticeable discount to its long-term averages. Additionally, the energy sector is usually among one of the largest sector weights in value ETFs, underscoring the point that the group is attractively valued relative to some defensive sectors, which trade at lofty multiples.

Still, making the sector’s rebound this year all the more impressive is that it comes against the backdrop of still low oil prices, little help in the way of significant production cuts and massive spending reductions by global oil majors.

Related: Why Investors are Bearish on Oil ETFs

“RJO Futures senior market strategist Phillip Streible also believes that oil’s drop isn’t too big of a concern, especially the oil supply glut that has investors nervous,” according to CNBC.

For more information on Energy ETFs, visit our Energy category.

Energy Select Sector SPDR