Best And Worst Q3 2021: Energy ETFs And Mutual Funds
Summary
- The Energy sector ranks tenth in Q3'21.
- Based on an aggregation of ratings of the 158 stocks in the Energy sector.
- TPYP is our top-rated Energy sector ETF and EIPIX is our top-rated Energy sector mutual fund.
- Looking for a helping hand in the market? Members of Value Investing 2.0 get exclusive ideas and guidance to navigate any climate. Learn More »
The Energy sector ranks tenth out of the 11 sectors as detailed in our Q3'21 Sector Ratings for ETFs and Mutual Funds report. Last quarter, the Energy sector ranked tenth as well. It gets our Unattractive rating, which is based on an aggregation of ratings of the 158 stocks in the Energy sector. See a recap of our Q2'21 Sector Ratings here.
Figures 1 and 2 show the best and worst rated ETFs and mutual funds in the sector. Not all Energy sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 18 to 158). This variation creates drastically different investment implications and, therefore, ratings.
Investors seeking exposure to the Energy sector should buy the Very Attractive rated ETF from Figure 1.
Figure 1: ETFs with the Best & Worst Ratings
* Best ETFs exclude ETFs with TNAs less than $100 million for inadequate liquidity.
Sources: New Constructs, LLC and company filings
Figure 2: Mutual Funds with the Best & Worst Ratings
* Best mutual funds exclude funds with TNAs less than $100 million for inadequate liquidity.
Sources: New Constructs, LLC and company filings
TPYP is the top-rated Energy ETF and EIPIX is the top-rated Energy mutual fund. TPYP earns a Very Attractive rating and EIPIX earns a Neutral rating.
PXE is the worst-rated Energy ETF and RYESX is the worst Energy mutual fund. They both earn a Very Unattractive rating.
158 stocks of the 2800+ we cover are classified as Energy stocks.
The Danger Within
Buying a fund without analyzing its holdings is like buying a stock without analyzing its business and finances. Put another way, research on fund holdings is necessary due diligence because a fund’s performance is only as good as its holdings’ performance.
Performance of Holdings = Performance of Fund
Analyzing each holding within funds is no small task. Our Robo-Analyst technology enables us to perform this diligence with scale. More of the biggest names in the financial industry (see At BlackRock, Machines Are Rising Over Managers to Pick Stocks) are now embracing technology to leverage machines in the investment research process. Cut costs and fulfill the fiduciary duty of care. Investors, clients, advisors and analysts deserve the latest in technology to get the diligence required to make prudent investment decisions.
Figures 3 and 4 show the rating landscape of all Energy ETFs and mutual funds.
Figure 3: Separating the Best ETFs From the Worst ETFs
Sources: New Constructs, LLC and company filings
Figure 4: Separating the Best Mutual Funds from the Worst Mutual Funds
Sources: New Constructs, LLC and company filings
This article was originally published on July 13, 2021.
Disclosure: David Trainer, Kyle Guske II, and Matt Shuler receive no compensation to write about any specific stock, sector or theme.
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