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.

Rivals to XLE include the Vanguard Energy ETF (NYSEArca: VDE), iShares U.S. Energy ETF (NYSEArca: IYE) and the Fidelity MSCI Energy Index ETF (NYSEArca: FENY).

The Guggenheim S&P 500 Equal Weight Energy ETF (NYSEArca: RYE) is another idea to consider among energy ETFs as it was one of the group’s best-performing ETFs last year.

The outperformance in RYE may be explained in its alternative indexing methodology. As opposed to traditional beta-index ETFs, like XLE that reflects a cap-weighted index like the S&P 500 Energy Index, the Guggenheim Energy ETF equally weights its components so that smaller companies have a larger tilt in its underlying portfolio.

For more information on the energy sector, visit our energy category.

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