Energy is the best-performing sector in 2026, and it's not even close. The S&P 500 energy sector has delivered a total return of more than 40% in 2026. Meanwhile, the next best-performing sector, technology, has a return below 30%. Large increases in energy commodity prices have been a boon to the sector, with West Texas Intermediate oil futures up more than 40% in 2026.
While energy’s price performance may not always be this strong, many names in this sector provide solid dividend returns, making them appealing to investors.