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Best Oil ETFs to Buy in 2026

fool.com·May 2, 2026

The Energy Select Sector SPDR ETF has seen a significant 32.07% increase due to rising oil prices linked to the war in Iran, outperforming other sector ETFs. Investors have various options for oil ETFs, including the Fidelity MSCI Energy Index ETF for broader exposure and the Alerian MLP ETF for dividend seekers.

For a professional investor focusing on oil ETFs and seeking to capitalize on current market conditions, the Energy Select Sector SPDR ETF (XLE) stands out as a strong performer due to its significant exposure to ExxonMobil and Chevron, which are benefiting from geopolitical tensions such as the war in Iran. Additionally, the Fidelity MSCI Energy Index ETF (FENY) offers a broader market approach with more holdings, potentially providing better long-term returns for those looking to diversify within the energy sector.

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