It's been a tough year on the markets for some stocks. And even for exchange-traded funds (ETFs), many are struggling to deliver positive returns for investors. A couple of the best ETFs this year have been those that are betting against the markets, and those that are in energy.
Invesco Dynamic Energy Exploration & Production ETF (NYSE Arca: PXE) falls into the latter category. This fund, which isn't terribly big as it holds around 30 stocks, focuses on oil and gas companies. It rebalances every quarter and it has been generating some great returns: year to date, it has soared more than 50%, which is impressive compared with the struggling S&P 500 that's down close to 20% over the same period.
Included within the ETF are some of the most popular stocks in the oil and gas industry, including ConocoPhillips (NYSE:COP) which makes up 5.5% of the fund's weight and is its largest holding. Other stocks that are in the ETF include Devon Energy (NYSE:DVN), Murphy Oil (NYSE:MUR), and Diamondback Energy (NASDAQ:FANG).
The fund averages a price-to-earnings ratio of less than seven, so investors are getting some good value from these stocks. The ETF's expense ratio of 0.63% doesn't make it the cheapest option out there, but given the solid returns the ETF has been delivering this year, it's certainly a justifiable cost for investors.
If you want exposure to the energy sector, this could be a great ETF to buy as even with its rise in value, it could go even higher as its holdings aren't overvalued.
