As a sector, energy has been one of the dominant corners of the market in 2026, and in some respects it all comes down to a handful of factors: supply disruption, refining margins, and a seismic shift in geopolitics with the advent and continuation of the Iran war. Regardless of whether this conflict is resolved this year, it's likely that the global oil market will continue to feel the impacts for a long time because of massive disruptions to pumping stations and pipelines in the Middle East, as well as how the major players in energy realign and shift their priorities.
A number of oil and gas exchange-traded funds (ETFs) offer varied approaches to the energy sector. All have performed exceptionally well, returning at least 40% year to date (YTD), but it's crucial that investors understand their differences to best match their investment goals amid a turbulent market.
