How to invest in the energy sector using ETFs

With sector ETFs, you invest in a specific part of the economy, for example in the energy sector. The most widely used standard in the financial industry for dividing the economy into sectors is the Global Industry Classification Standard (GICS). The major index providers MSCI and S&P use this standard consisting of 11 sectors and 68 assigned industries.

For the classification of listed companies in each sector, the index providers analyse in which business segment companies are generating the majority of their sales and profits. Additionally, the positioning and public perception of a company are also taken into account.

How do I invest in the energy sector?

An industry or sector index consists of all the companies of a certain sector starting from a parent index. For example, the MSCI World Energy index tracks all companies from the energy sector that are included in the MSCI World. A global energy ETF thus gives you the opportunity to invest in the largest energy companies worldwide.

Sector ETFs of this type should not be mixed up with thematic ETFs. Thematic ETFs track a non-standardised industry group and a specific investment theme. We provide you with an overview of the available thematic ETFs here.
   

Which companies are included in energy ETFs?

Companies from the energy sector are active in the business areas of exploration and production, refining and marketing, storage and transport of oil, gas, coal and fuels. The energy sector also includes companies that provide equipment and services for oil and gas. The energy sector does not include companies that produce or offer renewable energy. You can invest in such companies using clean energy ETFs.

In this investment guide, you will find all ETFs that allow you to invest globally in companies from the energy sector. For a performance comparison of the various ETF sectors, please have a look at our market overview. In the table below we have listed the currently available energy ETFs. Via the "Properties" and "Performance" tabs, you can find detailed information on these ETFs and sort them according to your desired criterion. More information about the different criteria when choosing an ETF can be found in our article on ETF selection.
 

• Properties
• Performance

Source: justETF.com; As of 31/10/2023