In this article, we discuss the 5 best performing energy ETFs in 2022. If you want to see more ETFs in this selection, check out 10 Best Performing Energy ETFs in 2022.
5. Invesco Dynamic Energy Exploration & Production ETF (NYSE:PXE)
YTD Share Price Gain as of December 7: 47.37%
Invesco Dynamic Energy Exploration & Production ETF (NYSE:PXE) is based on the Dynamic Energy Exploration & Production Intellidex Index. The benchmark index evaluates companies based on a set investment merit criteria, including price momentum, earnings momentum, quality, management action, and value. The Index comprises 30 U.S. equities involved in the exploration and production of natural resources used to produce energy. As of December 6, Invesco Dynamic Energy Exploration & Production ETF (NYSE:PXE) offers a 30-day SEC yield of 2.38% and a total expense ratio of 0.63%.
Pioneer Natural Resources Company (NYSE:PXD) is one of the largest holdings of Invesco Dynamic Energy Exploration & Production ETF (NYSE:PXE). The company is engaged in independent oil and gas exploration and production in the United States. It has operations in the Midland Basin in West Texas and provides oil, natural gas liquids, and gas. On October 27, Pioneer Natural Resources Company (NYSE:PXD) declared a $5.71 per share quarterly dividend. The dividend is distributable on December 15, to shareholders of the company as of November 30. The dividend yield on December 7 came in at 11.43%.
According to Insider Monkey’s Q3 data, Pioneer Natural Resources Company (NYSE:PXD) was part of 49 hedge fund portfolios, compared to 56 in the prior quarter. Donald Yacktman’s Yacktman Asset Management is a prominent stakeholder of the company, with 686,869 shares worth $148.7 million.
Here is what Carillon Scout Mid Cap Fund has to say about Pioneer Natural Resources Company (NYSE:PXD) in its Q1 2022 investor letter:
“Pioneer Natural Resources (NYSE:PXD) performed well in a strong energy sector. Pioneer stood out recently with a pledge to return a large majority of free cash flow to shareowners through dividends and stock buybacks, and ended hedging to give shareowners more earnings and dividend potential should oil and gas prices continue to rise.”
4. iShares U.S. Energy ETF (NYSE:IYE)
YTD Share Price Gain as of December 7: 47.90%
iShares U.S. Energy ETF (NYSE:IYE) seeks to track the performance of Russell 1000 Energy RIC 22.5/45 Capped Gross Index, which is composed of U.S. equities in the energy sector. As of December 6, the net assets of the fund stood at $2.2 billion, and the 30-day SEC yield came in at 2.43%. iShares U.S. Energy ETF (NYSE:IYE)’s portfolio consisted of 41 equities, with an expense ratio of 0.39%.
Exxon Mobil Corporation (NYSE:XOM) is the largest holding of iShares U.S. Energy ETF (NYSE:IYE). The company explores for and produces crude oil and natural gas in the United States and internationally. On November 22, Citi analyst Alastair Syme raised the price target on Exxon Mobil Corporation (NYSE:XOM) to $110 from $98 and maintained a Neutral rating on the shares. History indicates that energy equities usually perform well in an earnings recession, which is Citi’s base-case for 2023, noted the analyst.
According to Insider Monkey’s Q3 data, Exxon Mobil Corporation (NYSE:XOM) was part of 75 hedge fund portfolios, compared to 72 in the prior quarter. Rajiv Jain’s GQG Partners held the leading stake in the company, comprising 33.8 million shares worth nearly $3 billion.
In its Q2 2022 investor letter, First Eagle Investments, an asset management firm, highlighted a few stocks and Exxon Mobil Corporation (NYSE:XOM) was one of them. Here is what the fund said:
“Integrated oil and gas giant Exxon Mobil Corporation (NYSE:XOM) performed well in the second quarter as continued high prices for energy products supported the stock. As the largest refiner in the US, the company has benefitted from wide “crack spreads,” or the margin between the cost of crude oil and the petroleum products extracted from it. Exxon continues to invest in refining capacity in the US, which industrywide has been in steady decline since 2019. We are pleased that Exxon has been using its strong cash flows to reduce debt and to return cash to shareholders through dividends and stock repurchases.”
3. Vanguard Energy Index Fund (NYSE:VDE)
YTD Share Price Gain as of December 7: 48.74%
Vanguard Energy Index Fund (NYSE:VDE) seeks to track the investment performance of the MSCI US Investable Market Energy 25/50 Index. It is passively managed and uses a full-replication strategy when possible and a sampling strategy if there are regulatory constraints. The portfolio consisting of 107 stocks focuses on companies involved in the exploration and production of energy products such as oil, natural gas, and coal. The ETF offers an expense ratio of 0.10%. Vanguard Energy Index Fund (NYSE:VDE) is one of the best performing ETFs this year.
One of the top holdings of Vanguard Energy Index Fund (NYSE:VDE) is Chevron Corporation (NYSE:CVX), a California-based company engaged in integrated energy and chemicals operations worldwide. On November 22, Citi analyst Alastair Syme raised the firm’s price target on Chevron Corporation (NYSE:CVX) to $180 from $155 and kept a Neutral rating on the shares.
According to Insider Monkey’s database, Chevron Corporation (NYSE:CVX) was part of 66 hedge fund portfolios at the end of Q3 2022, compared to 59 in the prior quarter. Warren Buffett’s Berkshire Hathaway held the largest position in the company, comprising 165.3 million shares worth $23.75 billion.
In its Q1 2022 investor letter, Diamond Hill, an asset management firm, highlighted a few stocks and Chevron Corporation (NYSE:CVX) was one of them. Here is what the fund said:
“Other top contributors in Q1 included multinational energy company Chevron Corp. (NYSE:CVX). The company benefited from increased energy demand as COVID-related economic restrictions eased in tandem with concerns regarding supply interruptions related to Russia’s invasion of Ukraine.”
2. Fidelity MSCI Energy Index ETF (NYSE:FENY)
YTD Share Price Gain as of December 7: 49.01%
Fidelity MSCI Energy Index ETF (NYSE:FENY) seeks to provide investment returns that correspond generally to the performance of the MSCI USA IMI Energy Index. The fund has net assets worth $1.7 billion as of November 30 and offers an incredibly low expense ratio of 0.08%. Fidelity MSCI Energy Index ETF (NYSE:FENY) was established in 2013 and it is passively managed.
Of the 118 long positions, EOG Resources, Inc. (NYSE:EOG) is one of the top holdings of Fidelity MSCI Energy Index ETF (NYSE:FENY). The company explores for, develops, produces, and markets crude oil, natural gas, and natural gas liquids. Its principal producing areas are in New Mexico, Texas, and the Republic of Trinidad and Tobago. On November 3, EOG Resources, Inc. (NYSE:EOG) declared a $0.825 per share quarterly dividend, a 10% increase from its prior dividend of $0.750. The dividend is payable on January 31, 2023 to shareholders of record on January 17. The company also declared a special dividend of $1.50 per share, which is distributable on December 30.
According to Insider Monkey’s data, 52 hedge funds were long EOG Resources, Inc. (NYSE:EOG) at the end of Q3 2022, up from 43 funds in the prior quarter. Harris Associates held the biggest position in the company, consisting of 7 million shares worth $787.4 million.
Here is what Oakmark Select Fund has to say about EOG Resources, Inc. (NYSE:EOG) in its Q1 2022 investor letter:
“EOG Resources (NYSE:EOG) (+36%), was among our top contributors in the quarter as oil prices rallied due to tight supplies, which were then exacerbated by the Russian invasion of Ukraine. Although their share prices have increased considerably, both companies still look quite undervalued even using longer term oil prices in the $65-70 dollar range. Meanwhile, if times are good over the next couple of years, we expect these companies to return significant percentages of their market caps to shareholders.”
1. Energy Select Sector SPDR Fund (NYSE:XLE)
YTD Share Price Gain as of December 7: 49.37%
Energy Select Sector SPDR Fund (NYSE:XLE) seeks to provide investment results that correspond generally to the price and yield performance of the Energy Select Sector Index, which represents the energy sector of the S&P 500 Index. Energy Select Sector SPDR Fund (NYSE:XLE) was launched on December 16, 1998 and it currently has 23 holdings in its portfolio. On December 6, 2022, the 30-day SEC yield came in at 3.20% and the fund has $40.2 billion in assets under management.
Marathon Petroleum Corporation (NYSE:MPC) is one of the top holdings of Energy Select Sector SPDR Fund (NYSE:XLE). It operates as an integrated downstream energy company in the United States. On November 1, Marathon Petroleum Corporation (NYSE:MPC) declared a $0.75 per share quarterly dividend, a 29.3% increase from its prior dividend of $0.58. The dividend is distributable on December 12, to shareholders of record on November 16.
According to Insider Monkey’s Q3 data, Marathon Petroleum Corporation (NYSE:MPC) was part of 50 hedge fund portfolios, and Paul Singer’s Elliott Management held the biggest position in the company, consisting of 11 million shares worth $1 billion.
Here is what Clark Street Value has to say about Marathon Petroleum Corporation (NYSE:MPC) in its Q4 2021 investor letter:
“During the worst of covid, I bought some LEAPs on Marathon Petroleum (MPC) as a proxy for Par Pacific (PARR) since long dated options weren’t available on the later. Those MPC calls expire next month and I’ll take profits, with PARR I’ve reduced my position throughout the year and might sell the rest early next year, I’ve owned it for 6-7 years and it has gone nowhere, they haven’t touched the NOLs, just a difficult business that I probably don’t understand as well as I should.”
You can also take a look at 11 Best Hardware Stocks To Buy and 10 Best Gold Stocks with Dividends.
