Rivals to IYE include the Fidelity MSCI Energy Index ETF (NYSEArca: FENY) and the Vanguard Energy ETF (NYSEArca: VDE), which are two of the least expensive energy sector ETFs.
“Investors should buy energy stocks due to the sector’s cheap valuation and improving sales growth this year, according to Jefferies, which raised its rating on the sector to overweight from market weight,” reports CNBC.
Energy’s earnings drag is evaporating as S&P 500 energy earnings are expected to be only slightly negative for the fourth quarter and offer significant upside potential moving forward in 2017.
Notable is the fact that February marks the start of a multi-month stretch that is considered the seasonally strong period for the energy sector.
For more information on the oil market, visit our oil category.