After U.S. special operations forces ousted Venezuelan President Nicolás Maduro in January, the Trump administration pursued a controversial campaign to regain control over the country’s vast oil resources and re-open the nation’s energy sector to foreign investment.
Following the operation, President Donald Trump convened a meeting with several major oil executives. During those discussions, industry leaders expressed skepticism about the long-term viability of large-scale investment in Venezuela, citing past expropriations and a lack of investment protections as key deterrents.
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“Venezuela possesses a significant amount of oil reserves, but revitalizing production will take massive capital investment,” says Rob Thummel, managing director and senior portfolio manager at Tortoise Capital. “It will be years rather than months before we expect Venezuelan oil production to increase.”
In particular, ExxonMobil Corp. (ticker: XOM) CEO Darren Wood reportedly described the country as “uninvestable,” a characterization that irritated the president and led to threats of excluding ExxonMobil from future investment opportunities.
“The major oil companies need political clarity and political stability before they will commit the capital needed to boost Venezuelan oil production,” Thummel explains. “For example, Chevron Corp. is currently the only major oil producer operating in Venezuela today.”
While policy shifts have allowed certain oil majors to secure licenses to operate in Venezuela and restart production projects, restoring capacity remains a slow, capital-intensive process with infrastructure challenges and lingering uncertainty about regulatory reforms.
Even so, investor appetite for the broader energy trade has remained strong. So far in 2026, the energy sector has delivered a 20.8% return, making it the second-best-performing sector behind materials at 24.7%, according to financial data provider FinViz.
Here are seven of the best energy exchange-traded funds (ETFs) to buy today:
| ETF | Expense ratio |
| Vanguard Energy ETF (VDE) | 0.09% |
| State Street Energy Select Sector SPDR ETF (XLE) | 0.08% |
| Invesco S&P 500 Equal Weight Energy ETF (RSPG) | 0.40% |
| iShares Global Energy ETF (IXC) | 0.40% |
| Tortoise MLP ETF (TMLP) | 0.50% |
| VanEck Oil Refiners ETF (CRAK) | 0.62% |
| VanEck Oil Services ETF (OIH) | 0.35% |
Vanguard Energy ETF (VDE)
Vanguard is best known for its low-cost, broad-market index funds, but the firm also offers a full lineup of ETFs covering each of the 11 major market sectors. For energy, the ETF to watch is VDE. It charges a 0.09% expense ratio and tracks the MSCI U.S. Investable Market Energy 25/50 Index. That benchmark includes roughly 106 energy companies across small-, mid- and large-cap segments.
Despite its broad reach, VDE’s portfolio remains heavily concentrated at the top. Because it is market capitalization weighted, the two largest U.S. supermajors, ExxonMobil and Chevron Corp. (CVX), together account for roughly 40% of total assets. That structure means VDE’s performance will be meaningfully influenced by those integrated oil giants. VDE currently pays a 2.8% 30-day SEC yield.
State Street Energy Select Sector SPDR ETF (XLE)
“We prefer energy ETFs that are market capitalization-weighted versus equal-weighted,” says Adam Grossman, global equity chief investment officer at RiverFront Investment Group. “We prefer this because we believe larger companies will have better access to capital and are more likely to have diversified businesses at the margin.” Investors can focus on large-cap energy stocks via XLE.
XLE draws from the S&P 500 index, which imposes requirements for size, liquidity and earnings consistency. This results in a narrower portfolio of just 22 energy companies with a greater emphasis on large caps. ExxonMobil and Chevron remain the two largest holdings, but with a greater combined weight of over 41%. XLE charges a 0.08% expense ratio and pays a 2.7% 30-day SEC yield.
Invesco S&P 500 Equal Weight Energy ETF (RSPG)
Unlike market-cap weighted energy ETFs like VDE or XLE, RSPG is equal-weighted. At each quarterly rebalance, this ETF will systematically sell appreciated positions and buy downtrodden ones. This reduces concentration risk in a handful of supermajors like ExxonMobil and Chevron, while giving mid-cap S&P 500 energy stocks room to potentially outperform. RSPG charges a 0.4% expense ratio.
“Equal weighting can provide broader exposure to the energy sector and allow investors to better experience broad industry fundamentals,” says Nick Kalivas, head of factor and core equity ETF strategy at Invesco. “Optimism over deregulation in the energy sector may also increase the profitability of smaller companies, although the price of oil still remains a dominant factor.”
iShares Global Energy ETF (IXC)
Several global supermajors, including Shell PLC (SHEL), TotalEnergies SE (TTE) and BP PLC (BP), are headquartered in Europe. Investors seeking exposure beyond domestic producers can consider IXC. The U.S. still represents the largest country allocation at 60% of the portfolio, and ExxonMobil and Chevron remain the top two holdings, though at a lower combined weight of around 29%.
The second-largest geographic exposure in IXC is Canada, at approximately 14.3%, reflecting the country’s deep reserves and North American integrated energy infrastructure. Notable Canadian holdings include pipeline operator Enbridge Inc. (ENB) and upstream producer Canadian Natural Resources Ltd. (CNQ). IXC charges a 0.4% expense ratio and currently pays a higher 3.5% 30-day SEC yield.
[READ: 7 Best Natural Gas Stocks and Funds to Buy]
Tortoise MLP ETF (TMLP)
“The U.S. operates the largest pipeline network in the world,” Thummel explains. “Many of these companies are structured as master limited partnerships (MLPs) that offer investors high current income plus potential growth in distributions.” However, tax treatment for MLPs can be complex, with investors receiving K-1 forms. Moreover, pure-play MLP ETFs structured as C-corporations face federal tax drag.
TMLP avoids these issues using total return swaps in a registered investment company structure. “We believe this product is a smarter way to invest in MLPs,” Thummel says. “It’s a lower-cost and tax-efficient way of getting exposure to the higher current income offered by leading energy infrastructure companies.” TMLP produces a 1099-DIV form for taxes and charges a 0.5% expense ratio.
VanEck Oil Refiners ETF (CRAK)
“CRAK isolates the refining segment, an area of the energy sector value chain with its own distinct supply-and-demand dynamics, margin drivers and geopolitical sensitivities,” explains Andrew Musgraves, vice president and senior product manager at VanEck. “Current conditions could support elevated refining margins, especially for complex refiners with access to discounted or heavy crude supplies.”
Refining margins are influenced by regional fuel demand, seasonal driving patterns, global supply disruptions and the availability of specific crude grades. Top holdings in CRAK include companies such as Phillips 66 (PSX) and Marathon Petroleum Corp. (MPC). The ETF charges a high 0.85% gross expense ratio, but VanEck has waived it down to 0.62% net until at least the start of May.
VanEck Oil Services ETF (OIH)
“OIH captures the oil services segment, which sits upstream of refiners and producers and is directly leveraged to capital spending cycles across global energy markets,” Musgraves explains. “Holdings include firms specializing in drilling services, subsea equipment and well completion — which are all businesses that tend to benefit when energy companies commit capital to new projects.”
Top holdings in OIH include SLB N.V. (SLB), Baker Hughes Co. (BKR) and Halliburton Co. (HAL), three of the largest global oilfield services firms. These companies provide drilling technology, reservoir evaluation, hydraulic fracturing and other technical services that help upstream producers find and extract hydrocarbons more efficiently. OIH charges a 0.35% expense ratio.
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7 Best Energy ETFs to Buy Now originally appeared on usnews.com
Update 02/26/26: This story was published at an earlier date and has been updated with new information.
