Energy, Financial and Real Estate top S&P500 sectors year-to-date

As the S&P500 continues its record-breaking uprun (+25% YTD), three sub-sectors stood out so far this year: Energy (+52.31%), Financials (+35.47%), and Real Estate (+31.89%). Economic recovery- spurred demand for fossil fuels amid supply shortages lifted oil, gas, and coal prices to multi-year or record highs, consequently boosting Energy stocks revenue and bottom-line outlook. Financials (e.g Banks) followed suit during the strong inflationary period as investors bet that inevitable rate hikes will increase Banks' financial results. Real Estate stocks garnered similar attention amid uncertainty, due to their historical stability compared to the overall market.

For investors willing to squeeze out whatever juice left in these sectors, ETFs are the best tools to do that by mitigating risks through diversification. With exposure to S&P 500 Energy stocks, Energy Select Sector SPDR Fund ETF (XLE) is one of the largest U.S Energy ETFs out there, with $27 billion in assets under its belt. Year-to-date the fund gained +56.75%.

The $46 billion SPDR Financial Select Sector Fund ETF (XLF), provides exposure to Large and Mid-Cap US Financials Equities. XLF rose by +37.41% this year.  For exposure to the third-best sector of the year, the SPDR Real Estate Select Sector ETF (XLRE) can do the trick, having delivered +34.39% in returns this year.

Investors should keep in mind that past performance is no guarantee of future results. Further due diligence is required to find the most suitable investments.

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