Since the start of 2022, most equity indices are trading significantly lower from all-time highs. At the time of writing, the S&P 500 index is down 10% while the tech-heavy Nasdaq Composite index has entered bear-market territory, which constitutes a fall of more than 20% from record levels.
However, the energy sector has crushed the broader indices in 2022, due to higher commodity prices arising from the ongoing war between Ukraine and Russia as well as higher demand, all around the world. The Energy Select Sector SPDR Fund (XLE) is up 52% in the last year and has gained 33% in 2022.
