Oil & Gas continues to trounce green energy
Jun. 02, 2021 1:14 PM ETiShares S&P Global Clean Energy Index ETF (ICLN), XLEXLE, OIH, IEZ, XES, GRNTF, TAN, ICLN, CTECBy: Jason Capul, SA News Editor52 Comments
- Oil & Gas ETFs continue their march to the topside as they inversely trade against many green energy-related names. Energy stocks are the top performing aspect of the market in Wednesday afternoons trading session, while specific green energy names are among the worst performers.
- Oil and gas is currently trending upward as crude oil hit its highest trading levels in more than two years, dating back to October of 2018 yesterday after OPEC+ agreed to continue the current pace of gradually easing oil supply.
- Per the Guardian, new data divulges the fact that the United Kingdom, United States, Canada, Germany, France, Italy, and Japan committed $189B to support oil, coal, and gas between January 2020 and March 2021, compared to spending $147B on clean energy.
- The investment community has pumped large amounts of capital into the oil and gas space as it has been the top-performing sector of the market year-to-date.
- Examining two different exchange traded funds, Energy Select Sector SPDR ETF (NYSEARCA:XLE) and iShares S&P Global Clean Energy Index ETF (NASDAQ:ICLN) and investors can see the apparent divergence in performance.
- Below is a year-to-date chart of the two ETFs and the performance of the S&P 500, which is tracked in the middle.
- Additional oil & gas ETFs and their daily performance: (NYSEARCA:XES) +8.99%, (NYSEARCA:OIH) +8.15%, and (NYSEARCA:IEZ) +7.75%.
- Additional green energy ETFs and their daily performance: (NASDAQ:CTEC) -1.97%, (NYSEARCA:TAN) -1.73%, and (NYSEARCA:GRN) -1.59%.
- In other exchange traded fund news, ETFs have now attracted nearly +$400B in inflows YTD, more than three-fold witnessed at this time in 2020.