Here’s a Top Oil and Gas ETF to Add in May

The promise of a global economic recovery has generated positive momentum for commodities. Oil and gas prices suffered over the course of the pandemic.

However, rising demand has led to higher prices in late 2020 and early 2021. Investors may want to seek exposure to the oil and gas sector in this environment.

The spot price of West Texas Crude was threatening the $65 mark at the time of this writing. Goldman Sachs recently released a research note that projected oil prices would build momentum into the summer.

The Horizons Crude Oil ETF (TSX:HUC) is one of my favourite exchange-traded funds to target in this space.

Shares of this ETF have climbed 30% in 2021 as of close on April 28. The ETF has climbed over 100% from the prior year. This fund seeks to correspond to the performance of the Solactive Light Sweet Crude Oil Winter MD Rolling Futures Index ER. Any U.S. dollar gain or losses will be hedged back to the Canadian dollar.

This ETF suffered a 20% decline in 2020. Its hot start in 2021 is very promising. Investors who are confident in crude oil’s continued rise should feel good about buying this ETF in May. The terrific vaccine rollout in the United States has led to a strong reopening which in turn should lead to a robust summer of economic growth. Demand for oil and gas is set to erupt in the months ahead.