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Top-Performing Energy ETFs & Stocks of 2019

Sweta Killa

Oil price recorded the highest yearly gains in three years with U.S. crude rallying 34.5% and Brent jumping 22.7%. Middle East tensions, dwindling inventories and fresh OPEC output cuts led to the supply disruption, resulting in a spike in oil price.

Tensions in the Middle East escalated after Iran shot down a U.S. drone over the vital oil shipping lane, the Strait of Hormuz, in September. This has disrupted supplies from the Middle East, which provides more than a fifth of the world’s oil output. The tanker attacks in the Gulf of Oman, which feeds into the Strait of Hormuz, also threatened oil supply.

The deeper cuts from OPEC and its allies came on Dec 5, wherein they agreed to cut production by 500,000 barrels per day through the first quarter of 2020, bringing the total production cut to 1.7 million barrels per day. Additionally, supply conditions remained tight given U.S. sanctions on Iran and Venezuela, declines in potentially Libya output and temporary outages in Russia (read: Oil Rally in the Cards for 2020: ETF & Stock Picks).

Meanwhile, the improvement in U.S.-China trade relations, abating worries over the global economic growth, global monetary easing policies and lower uncertainty related to Brexit buoyed the outlook for demand and led to a strong run-up in oil price.

Given one of the best years for oil price, the energy sector enjoyed a strong surge. As such, we have highlighted the five top-performing energy ETFs and stocks of 2019. Investors should note that most of the ETFs have an unfavorable Zacks Rank #5 (Strong Sell), suggesting that the fundamentals for the energy market are extremely strong.

Best ETFs

Invesco S&P 500 Equal Weight Energy ETF RYE

This product follows the S&P 500 Equal Weight Energy Index, which equally weights stocks in the energy sector of the S&P 500 Index.

Zacks Rank: #5
AUM: $134.1 million
Expense Ratio: 0.40%
2019 Return: 13.4%

The Energy Select Sector SPDR Fund XLE

This fund provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries by tracking the Energy Select Sector Index (read: A Look Back At S&P 500 Sector ETFs in 2019).

Zacks Rank: #5
AUM: $10.9 billion
Expense Ratio: 0.13%
2019 Return: 10.7%

Multifactor Energy ETF JHME

This fund tracks the John Hancock Dimensional Energy Index.

Zacks Rank: #5
AUM: $19.9 million
Expense Ratio: 0.40%
2019 Return: 9.9%

iShares Global Energy ETF IXC

This product offers exposure to companies that produce and distribute oil and gas by tracking the S&P Global 1200 Energy Sector Index.

Zacks Rank: NA
AUM: $846.5 million
Expense Ratio: 0.46%
2019 Return: 9.8%

iShares U.S. Oil & Gas Exploration & Production ETF IEO

This ETF offers exposure to U.S. companies that are engaged in the exploration, production, and distribution of oil and gas and follows the Dow Jones U.S. Select Oil Exploration & Production Index (see: all the Energy ETFs here).

Zacks Rank: #5
AUM: $241.5 million
Expense Ratio: 0.42%
2019 Return: 9.6%

Best Stocks

World Fuel Services Corporation INT

This global energy management company is involved in supply fulfillment, energy procurement advisory services, and transaction and payment management solutions to commercial and industrial customers, principally in the aviation, marine and land transportation industries. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Rank: #2 (Buy)
VGM Score: C
Market Cap: $2.84 billion
2019 Return: 102.8%

Stone Energy Corporation TALO

This company is engaged in the exploration, development and production of oil and natural gas properties.

Zacks Rank: #3 (Hold)
VGM Score: A
Market Cap: $1.63 billion
2019 Return: 84.7%

Comstock Resources Inc. CRK

This company is an independent oil and gas exploration and production company engaged in the acquisition, exploration, and development of oil and gas properties.

Zacks Rank: #3
VGM Score: B
Market Cap: $1.56 billion
2019 Return: 81.7%

Helix Energy Solutions Group Inc. HLX

This international offshore energy company provides specialty services to the offshore energy industry, with a focus on their growing well intervention and robotics operations (read: Time to Buy Beaten Down Oil ETFs).

Zacks Rank: #3
VGM Score: A
Market Cap: $1.43 billion
2019 Return: 78%

Ion Geophysical Corporation IO

It is a leading provider of geophysical technology, services, and solutions for the global oil & gas industry.

Zacks Rank: #3
VGM Score: A
Market Cap: $130.54 million
2019 Return: 67.6%

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