Trackinsight writes that energy ETFs have been the top performing sector of the week, rising an average of 2.6 per cent and seeing inflows of over USD1.1 billion.
Clean energy funds in particular have benefitted from heightened concerns around energy security resulting from the ongoing war in Ukraine and biting sanctions against Russia and it’s energy companies that have sent European gas prices to fresh records and triggered one of the most significant oil-supply shocks since World War II. With traditional fossil fuels close to, or at record prices, green energy is now looking more attractive to both industry and consumers.
The Global X Hydrogen ETF (HYDR) jumped by 16 per cent this week, the North Shore Uranium Mining ETF (URNM) rose by 15 per cent, the ProShares S&P Kensho Cleantech ETF (CTEX) jumped 14 per cent and the Invesco Solar ETF (TAN), was up 13 per cent.
ETFs exposed to the Oil & Gas servicing also rose as their profitability is expected to increase along with the rise in energy prices. VanEck Vectors Oil Services ETF (OIH) rose 11.6 per cent and the SPDR S&P Oil & Gas Equipment & Services ETF (XES) and iShares US Oil & Gas Equipment and Services ETF (IEZ) were up 11 per cent each.
The conflict has also sent investors pouring into safe havens like Gold. Over last week alone, Gold ETFs have witnessed USD3.4 billion of net inflows with the iShares Gold Trust (IAU) collecting USD890 million of new assets and the SPDR Gold Shares (GLD) capturing USD2.7 billion of inflows.