As crude oil prices flirt with $100 per barrel and the possibility of a conflict between Russia and Ukraine looming over the energy landscape in Eastern Europe, energy ETFs have climbed in response.
Increased volatility in global energy markets coincided with the preparation of U.S. sanctions on Russia in response to Russian President Vladimir Putin’s recent order to move soldiers into two breakaway areas of Ukraine held by separatists.
Policymakers in Western countries will have to strike a careful balance between sanctions on Russian businesses, particularly lucrative ones like energy, while also avoiding a spike in the price of energy.
As a result, we’ve compiled a list of the top 5 performing non-leveraged energy ETFs that have produced over a 20% return on investment (ROI) so far in 2022.
1. VanEck Oil Services ETF (NYSEARCA: OIH) delivered 28% ROI YTD
When it comes to price and yield performance, the VanEck Oil Services (NYSEARCA: OIH) ETF attempts to replicate as closely as possible, before fees and costs, the price and yield performance of the Market Vectors U.S. Listed Oil Services 25 Index, which is a benchmark for the oil services industry in the United States.
The MVIS U.S. Listed Oil Services 25 Index (MVOIHTR) is the benchmark against which the fund attempts to match price and yield performance.
This index is comprised of common stocks and depository receipts of oil services businesses that are publicly traded and is designed to track the overall performance of publicly traded companies that provide services to the upstream oil industry, such as oil equipment, oil services, and oil drilling.
Currently, OIH is trading at $236.73; it is up +$3.65 (1.57%)over the past five days. Year-to-date (YTD) VanEck Oil Services ETF is up 28.07%, and the long and short-term trends are both positive.
In the last month, OIH has been trading in the range between $ 210.72 – 252.81 range and is currently trading in the middle of this range.
Furthermore, OIH is trading well above its 20, 50, and 200-day simple moving averages (SMA), typically utilized by stock investors as uptrend indications.
As a result of its recent performance and a price of 8.81% above its 20-day SMA, it appears that the firm’s short-term positive momentum might push it bullish.
2. iShares U.S. Oil Equipment & Services ETF (NYSEARCA: IEZ) delivered 25% ROI YTD
With the iShares U.S. Oil Equipment & Services ETF, investors can follow the performance of an index comprising of stocks in the oil equipment and services sector in the United States.
The fund invests at least 90% of its assets in index securities and depositary receipts reflecting index securities. Companies that provide equipment or services to oil fields and offshore platforms, such as drilling, exploration, and platform building, are included in the index.
In the last month, IEZ has been trading in a range between $14.54 – $17.16, and it is currently trading in the middle of this range, so some resistance may be found above. Notably, the volume has been considerably higher in the last couple of days, which investors should bear in mind.
IEZ also presents a decent setup pattern; a resistance zone exists just above the current price, starting at $17.07. Another positive sign for IEZ is the recent Pocket Pivot signal that has appeared, which is a price/volume accumulation pattern when the price swings up when the volume of trading is much greater than the biggest down volume recorded in the preceding ten days.
Finally, IEZ is trading well above its 20, 50, and 200-day SMAs, with a price of 7.24% above its 20-day SMA.
3. SPDR S&P Oil & Gas Equipment & Services ETF (NYSEARCA: XES) delivered 22% ROI YTD
The fund aims to emulate the performance of an index constructed from the oil and gas equipment and services component of a total market composite index in the United States. Investors in the fund will be tracking the S&P Oil and Gas Equipment and Services Select Industry Index via the use of passive management strategies.
Some resistance may be found above the $54.90–$64.71 price range that XES has been trading in for the past month.
In addition, XES has a reasonable setup pattern. Recently, the ETF has been consolidating. A reversal is taking place, which might provide a good entry point and little resistance exists at this present pricing.
Large players have shown an interest in XES in the previous few days, which is encouraging. The Effective Volume indicator is used to gauge the behavior of major participants with high-volume transactions scanned using the 1-minute timeframe.
4. Invesco Dynamic Oil & Gas Services ETF (NYSEARCA: PXJ) delivered 21% ROI YTD
The Fund intends to achieve investment returns that are typically consistent with the price and yield of an equity index known as the Dynamic Oil Services Intellidex Index. On average, the Fund will allocate at least 80% of its total assets to investments in common stocks of firms that are involved in the exploration, production, processing, and distribution of crude oil and natural gas.
Since last month, PXJ has traded in a range of $3.50 to $4.09 and is presently trading in the center of this range, suggesting that some resistance may be found above. Volume has also been noticeably higher in the last couple of days.
Prices have been consolidating recently, and a good setup pattern has developed. Another encouraging indicator is the accumulating pattern of Pocket Pivot signals that recently appeared.
PXJ is also trading well above its 20, 50, and 200-day SMAs, with a price of 25.41% above its 50-day SMA.
5. Invesco S&P 500® Equal Weight Energy ETF (NYSEARCA: RYE) delivered 20% ROI YTD
The S&P Equal Weight Energy Index is the benchmark against which the fund tries to duplicate its performance. Oil and gas exploration, production, marketing, refining, and/or transportation as well as energy equipment and services businesses, are represented by the common stocks included in this index.
RYE is currently trading in the upper part of its 52-week range; given that the market is still in the middle of its 52-week zone, RYE slightly outperforms the market at the moment.
This month, RYE has traded between $52.45 and $61.09, which is a significant range. The ETF is presently trading in the center of this range, which suggests that some resistance may be found above the current price.
In general, compared to the overall market, RYE is showing a solid and steady performance.
Recent price consolidation has occurred; there is little resistance above the present price, and there is a support zone below the current price at $57.66, which means that traders might put a Stop Loss order below this area.
RYE is presently trading well above its 20, 50, and 200-day SMAs, with a price of 42.92% above its 200-day SMA.
All in all, Energy ETFs have long-term growth and return potential because of their tax efficiency, low cost, liquidity, and transparency. Given the present geopolitical concerns, they may well be worth considering.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.