The $100 Oil Trade Is Back, and These 3 ETFs Make It Easy to Profit

Core Insights - WTI crude oil prices have increased significantly from a low of $55.44 in December 2025 to approximately $81 per barrel, driven by geopolitical tensions following the death of Iranian Supreme Leader Ayatollah Ali Khamenei on February 28, 2026, which has reignited concerns over Middle East supply disruptions [2][7] - Energy equities have responded positively, with major energy ETFs rising over 25% year-to-date, indicating strong market interest in energy sector investments [2][7] Fund Analysis - The Energy Select Sector SPDR Fund (XLE) is the largest energy ETF with $33 billion in assets and an expense ratio of 0.08%. It primarily invests in major integrated oil companies like Exxon Mobil and Chevron, which together represent about 41% of its portfolio [3] - The Fidelity MSCI Energy Index ETF (FENY) offers broader exposure by tracking mid- and small-cap energy companies across various segments, achieving a one-year return of 35.38%, outperforming XLE's 33.54%. It has a lower expense ratio of 0.084%, making it a cost-effective option for investors [4] - The iShares U.S. Oil & Gas Exploration & Production ETF (IEO) focuses on exploration and production companies, providing direct leverage to oil prices. It gained 6.59% in a week following the geopolitical event, highlighting its sensitivity to crude price movements [5][7] Performance Metrics - Over the past year, XLE returned 33.54%, while FENY achieved a return of 35.38%. IEO's performance in a single week post-event was 6.59%, showcasing its volatility and responsiveness to oil price changes [6][7] - The recent geopolitical developments have pushed WTI crude prices up by 10.3% to $71 per barrel, positively impacting the performance of energy ETFs [7]