fbpx

Best Energy ETFs Right Now

Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

Billions of people around the globe depend on companies that produce and distribute energy. From the lights in your home to the fuel in your car, you need energy to get things done.

Energy’s sheer demand makes it a smart choice for traders to grow wealth. Energy exchange-traded funds (ETFs) are a good place to start investing in the energy sector.  

There are essentially 2 major categories of energy ETFs you can invest in. You can put your money behind nonrenewable or renewable energy ETFs.

Renewable energy ETFs contain assets such as stocks and equities of different companies that produce or distribute natural gas, oil, nuclear energy and coal. Nonrenewable energy ETFs contain assets of multiple companies that produce and distribute energy from sources such as solar, wind, water or recycled waste.   

Energy ETFs are highly volatile. But they are ideal if you want to expand their financial portfolio to multinational corporations.  

Energy ETFs Biggest Gainers and Losers

Here’s a quick look at energy ETFs on the market with the best profits and worst losses. 

Gainers

Session: Oct 29, 2020 4:00 pm – Oct 30, 2020 3:59 pm
Symbol Open Close Change Change % Volume
Buy EINC Stock – Trade for Free EINC
VanEck Vectors Energy Income ETF
33.23 34.22 0.99 2.97% 15.61K
Buy JHME Stock – Trade for Free JHME
John Hancock Multifactor Energy ETF
10.60 10.84 0.24 2.26% 0.21K
Buy ERX Stock – Trade for Free ERX
Direxion Energy Bull 2X Shares
8.38 8.45 0.07 0.83% 5.83M
Buy IXC Stock – Trade for Free IXC
iShares Global Energy ETF
15.46 15.56 0.11 0.67% 90.49K
Buy RYE Stock – Trade for Free RYE
Invesco S&P 500 Equal Weight Energy ETF
21.25 21.38 0.13 0.61% 63.69K
Buy XLE Stock – Trade for Free XLE
SPDR Select Sector Fund – Energy Select Sector
28.56 28.68 0.12 0.40% 35.87M
Buy VDE Stock – Trade for Free VDE
Vanguard Energy ETF
38.73 38.83 0.10 0.25% 1.09M
Buy IYE Stock – Trade for Free IYE
iShares U.S. Energy ETF
15.34 15.37 0.04 0.22% 2.87M
Buy FENY Stock – Trade for Free FENY
Fidelity MSCI Energy Index ETF
7.59 7.60 0.02 0.19% 60.12K
Buy MLPX Stock – Trade for Free MLPX
Global X MLP & Energy Infrastructure ETF
22.44 22.47 0.03 0.13% 10.79K
Buy PXI Stock – Trade for Free PXI
Invesco DWA Energy Momentum ETF
12.33 12.34 0.01 0.10% 4.98K

Losers

Session: Oct 29, 2020 4:00 pm – Oct 30, 2020 3:59 pm
Symbol Open Close Change Change % Volume
Buy PBW Stock – Trade for Free PBW
Invesco WilderHill Clean Energy ETF
65.28 63.20 -2.08 -3.19% 39.88K
Buy QCLN Stock – Trade for Free QCLN
First Trust NASDAQ Clean Edge Green Energy Index Fund
48.55 47.20 -1.35 -2.79% 28.13K
Buy SPXE Stock – Trade for Free SPXE
ProShares S&P 500 Ex-Energy ETF
72.88 70.98 -1.90 -2.61% 0.60K
Buy PSCE Stock – Trade for Free PSCE
Invesco S&P SmallCap Energy ETF
3.04 2.98 -0.06 -1.98% 53.50K
Buy PBD Stock – Trade for Free PBD
Invesco Global Clean Energy ETF
23.24 22.87 -0.37 -1.61% 56.00K
Buy EMLP Stock – Trade for Free EMLP
First Trust North American Energy Infrastructure Fund
19.87 19.65 -0.22 -1.11% 85.75K
Buy ICLN Stock – Trade for Free ICLN
iShares S&P Global Clean Energy Index Fund
19.75 19.54 -0.22 -1.09% 3.38M
Buy DBE Stock – Trade for Free DBE
Invesco DB Energy Fund
8.85 8.77 -0.08 -0.91% 16.24K
Buy NLR Stock – Trade for Free NLR
VanEck Vectors Uranium & Nuclear Energy ETF
45.56 45.18 -0.38 -0.84% 0.94K
Buy PXE Stock – Trade for Free PXE
Invesco Dynamic Energy Exploration &Production ETF
7.32 7.26 -0.06 -0.82% 2.08K
Buy ERY Stock – Trade for Free ERY
Direxion Daily Energy Bear 2X Shares
74.18 73.59 -0.59 -0.80% 47.05K
Buy ENFR Stock – Trade for Free ENFR
Alerian Energy Infrastructure ETF
12.40 12.31 -0.09 -0.73% 12.41K
Buy SMOG Stock – Trade for Free SMOG
VanEck Vectors Low Carbon Energy ETF
115.65 114.97 -0.69 -0.60% 4.69K
Buy YLCO Stock – Trade for Free YLCO
Global X YieldCo & Renewable Energy Income ETF
14.96 14.87 -0.09 -0.59% 33.94K
Buy FAN Stock – Trade for Free FAN
First Trust Global Wind Energy ETF
18.13 18.03 -0.10 -0.56% 99.59K
Buy FXN Stock – Trade for Free FXN
First Trust Energy AlphaDEX Fund
5.62 5.61 -0.02 -0.27% 15.96K
Buy FILL Stock – Trade for Free FILL
iShares MSCI Global Energy Producers Fund
9.88 9.86 -0.02 -0.21% 45.88K

Premarket Energy ETFs

Take a look at the premarket positions of energy ETFs to help you predict price movements during trading sessions. 

Gainers

Session: Oct 29, 2020 4:00 pm – Oct 30, 2020 9:29 am
Symbol Open Close Change Change % Volume
Buy ICLN Stock – Trade for Free ICLN
iShares S&P Global Clean Energy Index Fund
19.75 20.00 0.25 1.24% 1.41K
Buy ERY Stock – Trade for Free ERY
Direxion Daily Energy Bear 2X Shares
74.18 75.00 0.82 1.10% 4.23K
Buy MLPX Stock – Trade for Free MLPX
Global X MLP & Energy Infrastructure ETF
22.44 22.60 0.16 0.71% 0.38K

Losers

Session: Oct 29, 2020 4:00 pm – Oct 30, 2020 9:29 am
Symbol Open Close Change Change % Volume
Buy FENY Stock – Trade for Free FENY
Fidelity MSCI Energy Index ETF
7.59 7.30 -0.29 -3.76% 0.68K
Buy QCLN Stock – Trade for Free QCLN
First Trust NASDAQ Clean Edge Green Energy Index Fund
48.55 47.55 -1.00 -2.06% 0.74K
Buy ERX Stock – Trade for Free ERX
Direxion Energy Bull 2X Shares
8.38 8.25 -0.13 -1.56% 9.70K
Buy XLE Stock – Trade for Free XLE
SPDR Select Sector Fund – Energy Select Sector
28.56 28.42 -0.14 -0.50% 27.45K
Buy VDE Stock – Trade for Free VDE
Vanguard Energy ETF
38.73 38.72 -0.01 -0.03% 0.21K
Buy YLCO Stock – Trade for Free YLCO
Global X YieldCo & Renewable Energy Income ETF
14.96 14.96 0.00 -0.02% 0.13K

Aftermarket Energy ETFs

Here are the positions of energy ETFs after major stock exchanges are closed for trading.   

Gainers

Session: Oct 30, 2020 4:00 pm – Oct 30, 2020 7:59 pm
Symbol Open Close Change Change % Volume
Buy ICLN Stock – Trade for Free ICLN
iShares S&P Global Clean Energy Index Fund
19.56 19.57 0.01 0.05% 16.21K

Losers

Session: Oct 30, 2020 4:00 pm – Oct 30, 2020 7:59 pm
Symbol Open Close Change Change % Volume
Buy ERY Stock – Trade for Free ERY
Direxion Daily Energy Bear 2X Shares
73.41 72.60 -0.81 -1.11% 0.85K
Buy ERX Stock – Trade for Free ERX
Direxion Energy Bull 2X Shares
8.47 8.45 -0.02 -0.24% 79.30K

Why Invest in Energy ETFs?

Energy ETFs are highly volatile, but that doesn’t mean the risk isn’t worth the reward. Energy ETFs are growing in demand, add diversification to your investments and energy companies wield major influence in the global marketplace.

1. Growing Demand

Power generators and distributors are a part of the core industries of our society. Although recently the demand for natural gas and oil has rapidly declined over the years, it’s still a vested interest for investors. Some of the biggest companies in the U.S. are from the nonrenewable energy sector with billion-dollar capitalizations. 

The turn of the millennium has paved the way for newer generations to be conscious of the environment. This bold shift toward clean energy has resulted in an explosion of eco-friendly firms all over the world. And the rise in internationally observed events such as Earth Day, World Ocean Day, Global Wind Day and Ecological Debt Day has heavily impacted the growth of clean energy enterprises. 

2. Diversification

Buying a large volume of stocks in a single major natural gas and oil company such as Royal Dutch Shell (RSD-A) or BP (BP) might be out of your financial reach. Energy ETFs can afford you the opportunity to invest in MNCs with marginal stakes in multiple industry-leaders.  

Keep in mind the energy sector is a highly volatile market. A harsh summer can dry up rivers and oceans, lowering the units of power produced in a hydropower plant. A longer winter can have a direct effect on solar energy harnessed in power plants.

And political escalations in the Middle East can severely affect the price of oil. A diversified portfolios can guard your investments and significantly reduce the risk of incurring losses.    

3. Global Influencer 

Companies that generate and dispense energy have a huge role to play in empowering global economies. Economic powerhouses pump out energy. China produce 7,111.8 TWh, and the U.S. produces 4,460.8 TWh of the total world electricity. A small stake in energy producers from any of these countries makes you a global influencer and adds tremendous value to your financial portfolio.             

3 Energy ETF(s) by AUM

Diversified energy ETFs offer a mix of small-, mid- and large-cap companies to balance the disruptive demand and supply cycles expected of the industry. 

Measure and compare expense ratios, historical performance, liquidity and the total assets under management (AUM) before you choose an ETF. Get started with a few of our top picks.

1. SPDR Energy Select Sector Fund (XLE)

Symbol Company % Change Price Invest
XLE SPDR Select Sector Fund – Energy Select Sector
+ 0.53%
$28.71 Buy stock

SPDR Energy Select Sector Fund has been on the market since December 1998. It tracks the Energy Select Sector Index and offers exposure to the U.S. energy industry, including many of the world’s largest oil producers. Its opening rate is $29.06 as of March 31, 2020 with a change rate of 1.54%. It has a low expense ratio of 0.13% with a total AUM of $6,468 million. It has high liquidity with an average daily trade volume of 34,330,500 shares.  

Historical performance of Energy Select Sector SPDR Fund over the last 5 years.
Source – Nasdaq

2. Vanguard Energy ETF (VDE)

Symbol Company % Change Price Invest
VDE Vanguard Energy ETF
+ 0.37%
$38.87 Buy stock

Vanguard Energy ETF has been on the market since September 2004. It tracks the MSCI U.S. Investable Market Energy 25-50 Index and offers broad-based exposure to the U.S. energy industry. It has an opening rate of $38.22 as of March 31, 2020 with a change rate of 1.65%. It has a low expense ratio of 0.10% and a total AUM of $1,989 million. It has high liquidity with an average daily trade volume of 2,269,300 shares.

Historical performance of Vanguard Energy ETF over the last 5 years.
Source – Nasdaq

3. First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN)

Symbol Company % Change Price Invest
QCLN First Trust NASDAQ Clean Edge Green Energy Index Fund
– 2.41%
$47.38 Buy stock

QCLN utilizes the NASDAQ Clean Edge Green Energy Index as a benchmark. The multi-cap, blended ETF offers you exposure to a variety of green energy like solar, biofuels, advanced batteries and photovoltaics.

Its top 3 holdings include:

  • Tesla Inc. (TSLA)
  • NIO Inc. (NIO), a China-based electric car manufacturer
  • Solaredge Technologies Inc. (SEDG), an Israel-based smart energy technology company

It has an expense ratio of 0.60% and a total AUM of $361 million.

Best Online Brokers for Energy ETFs

An online broker can help you find the best ETFs in the energy sector for investing. Most online brokers allow you to trade ETFs commission-free. Benzinga recommends the following online brokers to get you started.  

Commissions
$0
Account Minimum
$0

1. TradeStation

More than 99,000 people around the world use TradeStation as their preferred online broker. You can open a TS GO account with a $0 minimum deposit or open a TS Select account with a $2,000 minimum deposit. TradeStation provides more than 2,000 ETFs to invest in.

You can invest in energy ETFs commission-free on the platform. You can also trade ETFs with the ability to track indices, sectors, commodities and currencies.

TradeStation is regulated by the Securities and Exchange Commision (SEC) and Financial Industry Regulatory Authority (FINRA).  

Commissions
$0 when you trade stocks, ETFs, options, and mutual funds online
Account Minimum
$0

2. Firstrade

Established in 1985, Firstrade has been a leading online broker for more than 3 decades. You can open an account on Firstrade with a $0 minimum deposit. It has an average trade execution speed of 0.1 seconds.

Firstrade offers more than 2,200 ETFs to invest in at a $0 commission fee. It’s regulated by the SEC and FINRA.

Commissions
$0 $6.95 for OTC Stocks
Account Minimum
$0

3. TD Ameritrade

With a client base of 11 million and a total of over $1 trillion in assets, TD Ameritrade is a trusted online broker. You can open an account on TD Ameritrade with a $0 minimum deposit.

All ETFs on the platform are traded at $0 commission rates except for broker-assisted trades that will cost you $25 per trade.

You can take advantage of powerful trading tools such as comprehensive charting and customizable algorithms to help you elevate your trading experience. TD Ameritrade is regulated by FINRA.   

Invest in a Better Future

There’s a limited reserve of natural gas and oil under the earth’s surface. Investing in companies that produce cleaner energy is the need of the hour.

You can do your part by investing in energy ETFs that are eco-friendly and leave a smaller carbon footprint on the planet. Get started with a few of our top picks today.

Benzinga's #1 Breakout Stock Every Month

Looking for stocks that are about to breakout for gains of 10%, 15%, even 20% potentially or more? The only problem is finding these stocks takes hours per day. Fortunately, Benzinga's Breakout Opportunity Newsletter that could potentially break out each and every month. You can today with this special offer:

Click here to get our #1 breakout stock every month.

Hire a Pro: Compare Financial Advisors In Your Area