4 ETFs That Are Worth Buying For $100 Oil

Core Viewpoint - The article discusses the impact of geopolitical tensions, particularly Iran's closure of the Strait of Hormuz, on oil prices, highlighting investment opportunities in four specific ETFs that benefit from rising oil prices, particularly as WTI crude approaches $100 per barrel [1]. Group 1: Oil Price Impact - Iran's closure of the Strait of Hormuz has caused WTI crude prices to surge from $55 in December to nearly $95, marking a significant supply shock that benefits upstream producers and integrated oil majors [1]. - The International Energy Agency has labeled the current conflict as the biggest-ever disruption to oil supply, with Iran's security chief indicating that the conflict is unlikely to resolve soon [1]. Group 2: Investment Opportunities - XLE: The Direct Earnings Lever The Energy Select Sector SPDR Fund (XLE) provides direct exposure to integrated oil majors, with 99% of its portfolio in energy. It has gained 27% year-to-date and 35% over the past year, reflecting the earnings power of companies like ExxonMobil and Chevron during high oil prices [1]. - IXC: Owning the Global Windfall The iShares Global Energy ETF (IXC) includes both U.S. and international companies, benefiting from global oil price increases. It has $1.9 billion in assets and a dividend yield of approximately 3.5%, with a stronger one-year return compared to XLE due to its broader geographic exposure [1]. - AMLP: The Infrastructure Play The Alerian MLP ETF (AMLP) focuses on pipelines and gathering systems, which generate fee-based revenues independent of oil prices. It has nearly $12 billion in assets and has gained 14% year-to-date, benefiting from increased drilling activity due to high oil prices [1]. - MLPIX: A Mutual Fund Route Into Midstream The MLPIX mutual fund offers midstream and MLP exposure with active management. It has a one-year return of nearly 12%, similar to AMLP, but has recently diverged in performance, reflecting differences in portfolio management [2].