2017's Worst Performing ETFs Have One Thing In Common

Six of the worst performing (non-leveraged) large exchange-traded funds as measured by their performance year-to-date have one thing in common: They are all tied to the price of oil. According to a CNBC "Trading Nation" segment, four of the worst performing ETFs are down by a double digit percentage point, including VanEck Vectors Oil Services ETF OIH (down 17 percent), SPDR S&P Oil & Gas Explore & Prod. (ETF) XOP (down 14 percent), United States Oil Fund LP (ETF) USO (down 13 percent) and Vanguard Energy ETF VDE (down 10 percent).

Shale Produces Adding To Energy's Headache

Sanchez also highlighted an OPEC agreement which calls on members to collectively lower their output but many members, including Saudi Arabia, is cheating. Related Links: OPEC Cuts Aren't Cutting It Optimism Gushes Forth: Oil's Q1 Earnings Roundup

Ari Wald, head of technical analysis for Oppenheimer, weighed in on the topic and doesn't see the energy sector turning around after underperforming relative to the S&P 500 index. However, he does see the energy sector near a bottom which creates the likelihood for a "very choppy trading" environment in the coming months which can even last years.

Wald cited the energy sector relative to the S&P 500, which dipped below its yearly support levels and is now trading at the lowest relative level since 2004.

As such, the energy sector will continue underperforming and equities as a whole will do better than the energy sector for the time being.

Gina Sanchez of Chantico Global jumped in and offered her take on energy's outlook. She noted that many U.S. shale producers are now bringing their production online. Coupled with the rising rig counts, any rally in oil prices could be brief.

"If you look at it, Saudi Arabia is over 100 percent of the compliance, and everybody else is kind of cheating a little," she said. "And that's the story with OPEC — supplies just aren't coming down."