The markets aren’t off to a strong start in 2022 as the S&P 500 has fallen more than 9% through the first two months of the year. But not all stocks are struggling. One exchange-traded fund (ETF) that has been performing exceptionally well is the Fidelity MSCI Energy Index ETF (NYSE Arca: FENY). With the price of oil hitting highs not seen in years, this energy-focused ETF has risen more than 30% thus far.
And so if you are bullish on the price of oil, this can continue to be a top-performing ETF. The fund’s two top holdings include oil and gas giants Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX), with each making up more than 17% of the fund’s total weight. There are more than 100 holdings in the ETF, but the top 10 account for more than 66%. ConocoPhillips (NYSE:COP) is the only other stock that even makes up more than 5% — its total weight sits currently at just under 8%.
These are among the largest oil an gas companies in North America, so it’s a great fund to invest in if you want exposure to the sector. It has yielded 2.9% for the trailing 12 months and its net expense ratio of 0.08% is incredibly minimal.
Over the past year, the stock has generated total returns (which include dividends) of 58%. But investors who want to invest need to be careful as over the past five years, the total return is just 26%, reflecting the bearishness in the sector in recent years.