Investors have poured money into energy stock ETFs this year as oil prices have climbed to near their highest levels since 2022.
Roughly $13 billion has flowed into U.S.-listed energy equity ETFs. Of that, $5.1 billion has gone into the Energy Select Sector SPDR Fund (XLE), which tracks energy stocks in the S&P 500. Another roughly $1 billion has gone into the Vanguard Energy ETF (VDE), which includes smaller energy companies as well.
While those funds haven’t matched the eye-popping gains of oil futures ETFs like the United States Oil Fund (USO) and the United States Brent Oil Fund (BNO), which are up 70% and 79%, respectively, this year, they’ve still delivered standout returns.
XLE and VDE are each up about 39%, sharply outperforming the S&P 500’s 5% loss and making energy by far the best-performing sector in the stock market this year.
Because energy stocks…
