Best Energy ETFs (2026)

Which energy sector fund to hold — 10 funds ranked on cost, yield, return, risk and ETFValuer's overall grade.

Updated July 29, 2026

Every figure on this page is recalculated from market data each day, so the ranking reflects current conditions rather than whenever this page was written. Educational content — not financial advice.

Top Picks Right Now

#1
XLE
State Street Energy Select Sector SPDR ETF
B+ 75.5/100
  • cheapest in the group at 0.08%
  • largest and most liquid at $35.7B
#2
MLPX
Global X MLP & Energy Infrastructure ETF
B 74.8/100
  • strongest 3-year return at +102.5%
#3
VDE
Vanguard Energy Index Fund ETF Shares
B 73.2/100
  • scores 73.2 on the overall model (grade B)

Ranked by ETFValuer's overall score. Recalculated every day from live market data — these positions change as the underlying numbers move.

At a Glance

Cheapest
XLE
0.08%
Highest yield
AMLP
7.76%
Best risk-adjusted
OIH
Sharpe 1.51
Largest
XLE
$35.7B
Shallowest drawdown
AMLP
-14.3%

Each superlative is measured within this group of 10 funds, not across the whole market.

All 10 Funds Ranked

FundCategoryCostYield1Y3YVolatilityMax DDSharpeAUMScoreGrade
1 XLEState Street Energy Select Sector SPDR ETFEnergy0.08%3.70%+36.3%+47.5%21.1%-20.1%1.49$35.7B75.5B+
2 MLPXGlobal X MLP & Energy Infrastructure ETFEnergy0.45%4.13%+28.6%+102.5%15.8%-16.8%1.49$3.5B74.8B
3 VDEVanguard Energy Index Fund ETF SharesEnergy0.09%1.50%+36.4%+47.8%20.9%-21.4%1.50$11.1B73.2B
4 FENYFidelity MSCI Energy Index ETFEnergy0.08%2.63%+36.4%+47.9%20.9%-21.5%1.50$1.7B70.3B
5 AMLPAlerian MLP ETFEnergy1.01%7.76%+21.0%+69.6%12.6%-14.3%1.27$12.2B68.9B
6 IYEiShares U.S. Energy ETFEnergy0.38%1.34%+35.6%+46.1%20.5%-20.4%1.49$1.5B67.2B
7 OIHVanEck Oil Services ETFEnergy0.35%1.31%+49.8%+15.3%29.7%-43.8%1.51$2.0B60.3C
8 IEOiShares U.S. Oil & Gas Exploration & Production ETFEnergy0.38%2.12%+36.2%+37.4%25.8%-31.5%1.21$516M58.4C
9 XOPState Street SPDR S&P Oil & Gas Exploration & Production ETFEnergy0.35%0.82%+33.0%+27.3%28.4%-35.0%0.99$2.9B57.3C
10 ICLNiShares Global Clean Energy ETFEnergy0.39%0.90%+24.4%+4.1%30.2%-40.8%0.64$2.9B47.4D

Max DD is the deepest peak-to-trough fall over the measurement window. Sharpe ratio measures return per unit of volatility — higher is better. Every figure is recalculated daily.

What Makes a Good Fund Here

Energy fund returns track the oil price far more closely than the broad market, which is exactly why some investors hold them — the sector often rises when inflation hurts everything else.

The ETFValuer score blends trailing return, risk-adjusted return, expense ratio, maximum drawdown, fund size and volatility, each percentile-ranked against the full tracked universe, into a single 0-100 figure graded A+ to F. It is a systematic summary of past data, not a forecast — read it alongside the individual columns rather than instead of them.

Head-to-Head Comparisons

Full metric-by-metric breakdowns for the closest calls in this group.

Frequently Asked Questions

What is the best energy ETF?

XLE ranks highest of the 10 energy funds tracked, scoring 75.5 (B+). XLE is the cheaper at 0.08%.

Are energy ETFs a good inflation hedge?

Energy has historically been one of the few sectors to perform well during inflationary periods, since rising energy prices are frequently a cause of inflation. The trade-off is long stretches of poor returns when prices are falling.

Compare any of these funds directly

Side-by-side metrics, holdings overlap and return correlation for any pair.

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