5 Energy ETFs That Have Soared in 2026

With three quarters of the current year in the books, the U.S. stock market is on track for a fourth consecutive year of double-digit gains, with massive AI infrastructure spending coupled with exceptionally strong corporate earnings growth giving the market a major boost. The S&P 500 has returned 11.8% year-to-date, with only Utilities (-7.7%), Consumer Discretionary (-6.3%), and Financial Sector (-2.5%) still in the red. Hardly surprisingly, the Energy Sector has emerged as the top performer amongst the market’s 11 sectors, managing a 37.4% YTD return compared to a 27.9% gain by second-placed Information Technology (IT) Sector over the timeframe.However, the energy gains have not been uniform, with Oil & Gas stocks overperforming amid global supply shock triggered by the expanding Middle East conflict, while renewable energy stocks have underperformed. Indeed, the popular fossil fuel benchmark, State Street Global Advisors Energy Select Sector SPDR Fund (XLE), has returned 39.1% YTD while its clean energy peer, iShares Global Clean Energy ETF (ICLN), has notched a mere 3.1% gain. Energy stocks have been surging due to elevated oil and gas prices, surging power demand from AI data centers as well as a shift towards strict corporate capital discipline. However, energy exchange-traded funds (ETFs) have performed even better than individual energy equities thanks to many funds holding underlying futures contracts, shipping derivatives, or niche sub-sectors that capture soaring commodity prices directly, rather than relying strictly on corporate earnings.Here are the best-performing energy ETFs so far in 2026.#1 Breakwave Tanker Shipping ETF (BWET) Assets Under Management (AUM): $190.2M Expense Ratio: 3.50% YTD Return: 4,050%The Breakwave Tanker Shipping ETF (BWET), issued by Amplify ETFs and designed by Breakwave Advisors, was launched in 2023 as the first ETF focused specifically on crude tanker freight futures. Unlike a traditional shipping ETF, it doesn’t own tanker stocks. Instead, BWET holds Forward Freight Agreements (FFAs), essentially futures contracts tied to the cost of moving crude by sea, giving investors direct exposure to tanker rates.That exposure has made BWET the standout ETF of 2026. Daily charter rates for Very Large Crude Carriers (VLCCs), the huge tankers used for long-haul crude shipments, jumped from roughly $75,000 to $100,000 before the Iran war to as much as $470,000 to $600,000 after fighting began in late February. Roughly 90% of BWET tracks VLCC routes from the Persian Gulf to China, putting the fund directly in the path of that surge.BWET has also benefited from steep backwardation in tanker freight futures. In simple terms, tanker capacity today costs considerably more than the market expects it to cost several months from now. When BWET replaces contracts approaching expiration with cheaper later-dated contracts, it can capture an additional return from the difference, on top of the increase in freight rates.There could still be upside, although after a roughly 4,000% gain this year, the bar is considerably higher. Gulf producers are moving more crude again, while ship-to-ship transfers and disrupted shipping routes require more tanker capacity to move it. If vessel availability tightens further, freight rates could climb again, while continued backwardation would provide another source of return. The reverse is equally important: if Hormuz traffic normalizes and tanker rates fall sharply, BWET has no fleet or charter revenue underneath it to cushion the decline.#2 United States Gasoline Fund LP ETF (UGA) Assets Under Management (AUM): $190.2M Expense Ratio: 1.02% YTD Return: 147.9%The United States Gasoline Fund (UGA) offers one of the most direct ways for investors to bet on U.S. gasoline prices. The fund tracks RBOB gasoline delivered into New York Harbor, the benchmark used in the U.S. futures market, primarily by holding the nearest-month NYMEX gasoline contract. As that contract approaches expiration, UGA sells it and moves into the following month, maintaining continuous exposure to gasoline prices.That exposure has paid off spectacularly so far this year as the Iran war disrupted global fuel supplies and pushed gasoline prices sharply higher. Unlike an investment in a refiner such as Valero or Marathon Petroleum, UGA does not depend on refinery margins, operating costs or corporate earnings. When gasoline futures rise, the fund gets the benefit much more directly.There could still be upside after UGA's roughly 148% gain this year. Global fuel markets remain tight, while the Iran war continues to disrupt Middle Eastern supplies. Any further disruption to Gulf fuel exports or refinery capacity could push gasoline futures higher again.The risk is that UGA is tied just as directly to gasoline on the way down, of course. A fall in fuel prices would feed quickly into the fund, while contango creates an additional problem. If later-dated gasoline contracts cost more than the contracts UGA is selling, the fund repeatedly has to sell cheaper contracts and buy more expensive ones as it rolls its positions. That can eat into returns even when the spot price of gasoline changes very little. #3 United States Brent Oil Fund LP ETF (BNO) Assets Under Management (AUM): $645.8M Expense Ratio: 1.14% YTD Return: 121.3%The United States Brent Oil Fund (BNO) gives investors direct exposure to Brent crude without buying oil producers or trading futures themselves. The fund primarily holds short dated Brent futures traded on ICE Futures Europe, moving from the nearest contract into the following month as expiration approaches. That makes BNO much more directly tied to the price of global crude than an oil stock, where returns also depend on production costs, hedging, taxes and company-specific decisions.That exposure has driven BNO's roughly 121% gain this year. The Iran war disrupted Gulf exports and pushed Brent sharply higher, with the global benchmark remaining above $100 per barrel in late September. Analysts surveyed by Reuters raised their average 2026 Brent forecast to $89.05 per barrel at the end of September, up from $85.08 a month earlier, as expectations for a rapid normalization of shipping through Hormuz faded.BNO can also benefit from backwardation. When the nearest Brent contract costs more than the following month's contract, BNO moves out of the more expensive contract and into the cheaper one as part of its regular roll. That can add to returns when the market is short of immediately available crude. The opposite happens in contango: BNO has to move into a more expensive later contract, which can steadily eat into returns even if Brent itself does not fall substantially. USCF explains the effect of contango and backwardation in its description of the fund and its risks.There could still be upside after BNO's roughly 121% gain, but from here it increasingly depends on what happens to Gulf supply. Further attacks on oil infrastructure, another deterioration in Hormuz shipping, or a renewed decline in Gulf exports could send Brent higher and keep the futures curve favorable for BNO. A sustained recovery in Gulf exports would work in the opposite direction. #4 United States Oil Fund LP ETF (USO) Assets Under Management (AUM): $1.69B Expense Ratio: 0.83% YTD Return: 116.4%The United States Oil Fund (USO) is the WTI counterpart to BNO, giving investors direct exposure to the main U.S. crude benchmark without buying oil stocks or trading futures themselves. USO primarily holds NYMEX crude futures, along with other oil-related contracts, and regularly rolls those positions forward rather than taking delivery of physical crude.USO has gained roughly 116% this year as the Iran war sent crude prices sharply higher. While Brent is more directly exposed to disruptions in international oil trade, WTI has followed the global rally as lost Gulf supply tightened the market and pulled more U.S. crude toward export markets. The United States has also become increasingly important as a source of replacement barrels, with U.S. crude exports rising as buyers seek alternatives to disrupted Middle Eastern supplies.Like BNO, USO can get an additional boost when the oil futures market is in backwardation. When near-term WTI contracts trade above later dated contracts, the fund can sell its expiring positions at higher prices and move into cheaper contracts further out. That positive roll yield can add to returns beyond the increase in crude prices themselves. USCF explains that the shape of the futures curve can materially affect USO's performance.There could still be upside after USO's roughly 116% gain if Gulf supply remains disrupted and international buyers continue turning to U.S. crude. Further losses of Middle Eastern production or another deterioration in Hormuz shipping could push both Brent and WTI higher. #5 Invesco DB Energy Fund ETF (DBE) Assets Under Management (AUM): $122.8M Expense Ratio: 0.75% YTD Return: 114.0%The Invesco DB Energy Fund (DBE) is the broadest energy trade on this list. Rather than tracking a single commodity, the fund uses futures to gain exposure to five major energy markets: Brent crude, WTI crude, RBOB gasoline, heating oil and natural gas. That gives investors exposure to both sides of the energy market, from the crude barrel itself to refined fuels and natural gas.That mix has worked exceptionally well in 2026. DBE has gained roughly 114% as the Iran war pushed crude and refined fuel prices sharply higher and disruptions to Middle Eastern energy flows tightened markets well beyond oil. Unlike USO, BNO or UGA, however, DBE does not need one particular commodity to carry the entire trade. A surge in gasoline or heating oil can contribute even if crude prices are relatively stable, while a rally in natural gas provides another source of gains.DBE also handles its futures exposure somewhat differently from the other funds on this list. Rather than automatically buying the nearest contract, the fund follows the DBIQ Optimum Yield Energy Index, which selects futures contracts using rules intended to reduce the damage from contango and take advantage of favorable futures curves. That does not eliminate roll risk, but it gives DBE more flexibility than a fund mechanically rolling from one front-month contract into the next.There could still be upside after DBE's roughly 114% gain if the current energy squeeze persists. Its diversified structure gives it several ways to benefit from continued disruption, whether through higher crude prices, tighter gasoline and distillate supplies or another move higher in natural gas. The same breadth works in reverse if the war premium unwinds across energy markets, however. A broad decline in crude, fuels and natural gas would leave DBE with fewer places inside the portfolio to offset the losses.By Alex Kimani for Oilprice.comMore Top Reads From Oilprice.comLNG Canada to Double Export Capacity After Shell Approves Phase 2Saudi Arabia Restarts Red Sea Crude Oil LoadingsIndia Looks to Boost Exploration as Hormuz Crisis Threatens Supply