Energy ETFs have been the top-performing sector of the week, rising an average of 2.6%, and seeing inflows of over $1.1 Billion into ETFs tracking the sector.
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 its energy companies which have sent European gas prices to fresh records and triggered one of the biggest 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% this week, the North Shore Uranium Mining ETF (URNM) rose by 15%, the ProShares S&P Kensho Cleantech ETF (CTEX) jumped 14% and the Invesco Solar ETF (TAN), was up 13%.
ETFs exposed to 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% and the SPDR S&P Oil & Gas Equipment & Services ETF (XES) and iShares US Oil & Gas Equipment and Services ETF (IEZ) were up 11% each.
The conflict has also sent investors pouring into safe havens like Gold. Over this week alone, Gold ETFs have witnessed $3.4 Billion of net inflows with the iShares Gold Trust (IAU) collecting $890 million of new assets and the SPDR Gold Shares (GLD) capturing $2.7 Billion of inflows.
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