In the world of investment, energy is a sector that holds great potential for both growth and value. Over recent years, Environmental, Social, and Corporate Governance (ESG) investing has gained significant popularity. Energy Exchange Traded Funds (ETFs) offer a diverse array of investment opportunities focused on the traditional energy sector as well as renewable energy alternatives. In this article, we will cover the five best-performing energy ETFs that deserve your attention.

1. iShares Global Clean Energy ETF (ICLN)

The iShares Global Clean Energy ETF focuses on companies operating within the clean energy sector, such as wind, solar, and biofuels among others. The fund tracks the S&P Global Clean Energy Index and invests in companies from various countries around the world. ICLN has consistently delivered impressive returns in recent years due to increased interest in alternative energy sources and growing ESG awareness among investors.

2. Invesco Solar ETF (TAN)

Invesco Solar ETF is another popular choice among investors seeking exposure to the renewable energy space. This fund specifically targets solar power industries by tracking the MAC Global Solar Energy Index. It holds a diversified portfolio of solar companies with varying market capitalizations from different countries. TAN’s performance in recent years has attracted numerous investors who are confident about the potential growth of renewable energy markets.

3. ALPS Clean Energy ETF (ACES)

Designed to capitalize on the transition to sustainable and cleaner energy sources, ALPS Clean Energy ETF includes companies focused on renewables, electric grids & management systems, and other sustainable advances. The fund offers a diversified approach by spreading investments across multiple clean energy subsectors. ACES’ strong performance in recent years underscores its potential as an attractive choice for ESG-focused investors.

4. Alerian MLP ETF (AMLP)

For investors seeking exposure to pipeline infrastructure and energy services, the Alerian MLP ETF is an excellent option. It tracks the performance of MLP’s (Master Limited Partnerships) by replicating the Alerian MLP Infrastructure Index. AMLP invests in companies engaged in the transportation, storage, and processing of crude oil, natural gas, and related products. Despite market fluctuations, AMLP continues to be a popular choice for investors interested in significant dividend yields.

5. VanEck Vectors Oil Services ETF (OIH)

The VanEck Vectors Oil Services ETF provides an opportunity for investors to gain exposure to oilfield services companies. OIH tracks the MVISU.S. Listed Oil Services 25 Index, which consists of companies involved in drilling, testing, processing, and supporting oil production activities. With the gradual recovery of oil prices and increasing demand for energy commodities, OIH has shown promising performance recently.

In conclusion, these five best-performing energy ETFs offer unique opportunities for growth and value within the evolving energy sector landscape. By diversifying your investments across traditional and renewable energy sources and incorporating a mix of diverse subsectors, investors can capitalize on new market trends while also mitigating risks associated with specific industries. Keep these top-performing funds in mind as you construct your next investment portfolio.