8 Best Energy ETFs to Buy

Oil and gas stocks are off to a hot start in 2024 and these energy ETFs can give investors exposure to the space.

oil field with rigs and pumps at sunset
(Image credit: Getty Images)

Energy stocks and exchange-traded funds (ETFs) have been a popular bet so far this year. 

Indeed, the sector is far and away the best performer, with the Energy Select Sector SPDR Fund (XLE) delivering a massive total return (price plus dividends) of 13.5%, driving numerous attached energy ETFs higher. Compare that to a roughly 10% return for the second-place Communication Services Select Sector SPDR Fund (XLC), and it's not even close.

"Certainly, geopolitical concerns have added to higher prices, with focus squarely on the Israel-Hamas conflict and worries hovering over markets regarding the potential for the war to broaden into the oil-producing region," says Quincy Krosby, chief global strategist, and Joshua Cline, associate analyst, for LPL Financial. "The attacks on oil tankers in the Red Sea by the Yemen-based Houthis, considered a proxy for Iran, have also led to crude oil prices inching higher."

Additionally, "Ukraine has [recently] carried out a series of drone attacks on refineries in Russia as part of the ongoing war between the two nations," writes Jim Patterson, managing editor of The Kiplinger Letter, in Kiplinger's energy outlook. "These events have not caused major supply disruptions, but they are making traders nervous and adding a fear premium to prices."

With all of this in mind, there is reason to believe energy funds still have more gas in the tank. So if you want to add exposure to the sector, here are our eight best energy ETFs to buy now.


Data is as of April 16, 2024. Yields represent the trailing 12-month yield, which is a standard measure for equity funds. 

Kyle Woodley

Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.

Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism. 

You can check out his thoughts on the markets (and more) at @KyleWoodley.