What Are the Key ETFs When Crude Oil Rallies?

Between April 2011 and February 2012, the SPDR Oil & Gas Exploration & Production ETF (XOP) returned 45.8%. The iShares Global Energy (IXC) returned 29.5% and the Energy Select Sector SPDR ETF (XLE) returned 31.4%. During the same period, the United States Oil (USO)—the crude oil tracking ETF—returned 40% compared to XOP’s 45%. These energy equity ETFs’ returns include dividends. During the last two crude rallies in 2006–2008 and 2009–2011, XOP outperformed USO, IXC, and XLE.

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Energy ETF correlations with WTI crude oil

XOP had a correlation of 78.6% with WTI (West Texas Intermediate) crude oil from June 27, 2006, to March 9, 2016. IXC had a correlation of 78.4% with crude oil during the same period.