5 Best-Performing Energy ETFs & Stocks Of April

The energy sector was the outperformer in April driven by an impressive surge in oil price, which has been hovering around a three-year high. Notably, Brent oil breached the symbolic $75-per-barrel threshold last week for the first time since late 2014 (read: Oil Price Jumps on Syria Turmoil: ETFs & Stocks to Trade).

The historic output cut deal, wherein OPEC, Russia and other producers have agreed to curb production is paying off with the global oil market on its way toward balancing amid rising U.S. production. On the other hand, accelerating economic growth across the world is raising demand for the commodity despite the greenback gaining some strength lately.

Additionally, speculation that the United States could renew sanctions against the major Middle East oil producer Iran has pushed up the oil price higher. President Donald Trump is seeking to restore the sanctions on Iran by May 12 that were lifted after an agreement over its disputed nuclear program. If re-imposed, it would likely reduce Iranian oil exports, further tightening excess global supplies.

Further, falling production in Venezuela, where output has been halved since 2005 to below 2 million barrels per day due to an economic crisis, will continue to support to oil price.

The bullish trend is likely to continue at least in the short term. Given this, investors might want to tap the space with the top-performing energy ETFs and stocks of April. For them, we have highlighted five funds and stocks that are poised to perform well heading into the new month, should oil prices rise.

Best ETFs

These energy ETFs currently have a Zacks ETF Rank #3 (Hold), 4 (Sell) or 5 (Strong Sell), yet seem excellent choices to play the trend at least in the near term.

SPDR S&P Oil & Gas Equipment & Services (NYSE:XES) ETF XES

This fund tracks the S&P Oil & Gas Equipment & Services Select Industry Index, which measures the performance of the companies engaged in the oil and gas equipment and services industry (read: ETFs from Best & Worst Zones of Q1).

Zacks Rank: #5
AUM: $378.2 million
Expense Ratio: 0.35%
April Return: 17.6%

PowerShares S&P SmallCap Energy Fund PSCE

This fund offers exposure to the small-cap segment of the energy sector by tracking the S&P Small Cap 600 Capped Energy Index.

Zacks Rank: #3
AUM: $59.2 million
Expense Ratio: 0.29%
April Return: 17.3%

iShares U.S. Oil Equipment & Services ETF IEZ

This ETF offers exposure to U.S. companies that provide equipment and services for oil exploration and extraction by tracking the Dow Jones U.S. Select Oil Equipment & Services Index (read: Energy ETFs Rally: Will the Gains Last?).

Zacks Rank: #4
AUM: $235.2 million
Expense Ratio: 0.44%
April Return: 15.3%

VanEck Vectors Oil Services ETF OIH

This fund tracks the MVIS U.S. Listed Oil Services 25 Index, which offers exposure to the companies involved in oil services to the upstream oil sector, including oil equipment, oil services or oil drilling.

Zacks Rank: #3
AUM: $1.8 billion
Expense Ratio: 0.35%
April Return: 14%

PowerShares Dynamic Oil & Gas Services Fund PXJ

This product follows the Dynamic Oil Services Intellidex Index, which thoroughly evaluates companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action and value.

Zacks Rank: #5
AUM: $37.9 million
Expense Ratio: 0.63%
April Return: 13.5%

Best Stocks

We have highlighted the best-performing stocks that currently have a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3.

Baytex Energy Corp (TO:BTE)

This is a conventional oil and gas income trust focused on maintaining its production and asset base through internal property development and delivering consistent returns to its unitholders. You can see the complete list of today’s Zacks #1 Rank stocks here.

Zacks Rank: #1
VGM Score: C
Market Cap: $1.01 billion
April Return: 55.8%

Pengrowth Energy Corporation (NYSE:PGH)

This company is engaged in the acquisition, exploration, development, and production of oil and natural gas assets in Alberta, British Columbia, Saskatchewan, and Nova Scotia provinces in Canada (see: all the Energy ETFs here).

Zacks Rank: #3
VGM Score: F
Market Cap: $529.9 million
April Return: 50.2%

California Resources Corporation (NYSE:CRC)

This company operates as an oil and natural gas exploration and production company in the State of California.

Zacks Rank: #2
VGM Score: D
Market Cap: $1.05 billion
April Return: 42.9%

EP Energy Corporation (NYSE:EPE)

This company is involved in the acquisition and development of unconventional onshore oil and natural gas.

Zacks Rank: #3
VGM Score: B
Market Cap: $470.6 million
April Return: 39.5%

Oil States International Inc. (NYSE:OIS)

This company provides specialty products and services to oil and gas companies worldwide.

Zacks Rank: #3
VGM Score: D
Market Cap: $2.19 billion
April Return: 39.1%

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ISHARS-US OIL E (IEZ): ETF Research Reports

VANECK-OIL SVC (OIH): ETF Research Reports

PWRSH-SP SC EGY (PSCE): ETF Research Reports

SPDR-SP O&G EQP (XES): ETF Research Reports

PWRSH-DYN OIL&G (PXJ): ETF Research Reports

Oil States International, Inc. (OIS): Free Stock Analysis Report

Pengrowth Energy Corporation (PGH): Free Stock Analysis Report

Baytex Energy Corp (BTE): Free Stock Analysis Report

EP Energy Corporation (EPE): Free Stock Analysis Report

California Resources Corporation (CRC): Free Stock Analysis Report

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