Top ETFs of the week: Energy & Leisure

Rise in fossil fuel demand elevates Energy ETFs

Energy ETFs with exposure to oil companies continue their ascent for the second straight week as demand picks up around the world. Brent and WTI oil futures rose by around 3.0% last week, while Natural Gas (Henry Hub) finished the week flat.

Ongoing supply disruptions in the United States following extreme weather conditions and underproduction of several OPEC+ countries (such as Nigeria and Angola) due to underinvestment and lingering maintenance problems, have contributed to the run up in energy commodity prices.

ETFs investing in energy equities rose in tandem with the price of the oil and dominated Trackinsight's Weekly top 10 ETFs list, including iShares S&P/TSX Capped Energy Index ETF (XEG) & iShares Oil & Gas Exploration & Production UCITS ETF (SPOG) and VanEck Vectors Unconventional Oil & Gas ETF (FRAK), which posted more than 5.0% gains each.

Travel and Leisure ETF bloom with fading Covid-19 cases

Travel and Leisure ETFs have made an appearance in this week's top 10 ETFs list. Speedy vaccination campaigns, lower infection rates and ease of restrictions in US, Europe and UK, energized the travel and leisure industries. These vital service industries have rebounded sharply with rising influx of tourists, reopening of hotels, bars, restaurants and other entertaining venues. Although levels may be far behind pre-pandemic levels due to variant concerns, optimism around the industry’s outlook have refreshed related stocks and ETFs.

The optimism was highlighted by Ryanair. The airline giant recently raised its long-term traffic forecast and said it expects to fly 225 million passengers a year by 2026, up from 200 million previously as it eyes a strong recovery from the Covid-19 pandemic

In the related ETF space, SonicShares Airlines, Hotels, Cruise Lines ETF, HANetf Airlines, Hotels and Cruise Lines UCITS ETF and Harvest Travel & Leisure Index ETF posted +5.57%, +5.42% and +6.51% respectively last week. These funds invest in airlines, hotels, cruise lines and other leisure companies that are set to benefit from the industry's recovery.

Top 10 ETFs of the week: Energy & Leisure ETFs

Europe

• Xtrackers Physical Rhodium ETC: +15.85%
• WisdomTree Tin (TINM): +7.64%
• HANetf U.S. Global Jets UCITS ETF: +6.67%
• WisdomTree Carbon (CARB): +5.74%
• iShares Oil & Gas Exploration & Production UCITS ETF (SPOG): +5.62%
• HANetf Airlines, Hotels and Cruise Lines UCITS ETF: +5.42%
• ZKB Platinum ETF (ZPLA): +5.19%
• Invesco Energy S&P US Select Sector UCITS ETF(XLES): +4.75%
• Xtrackers MSCI USA Energy UCITS ETF (XUEN): +4.72%
• iShares S&P 500 Energy Sector UCITS ETF (IUES): +4.70%

Americas

• iShares S&P/TSX Capped Energy Index ETF (XEG): +7.27%
• Horizons S&P/TSX Capped Energy Index ETF (HXE): +7.25%
• Horizons Enhanced Income Energy ETF (HEE): +7.09%
• VanEck Vectors Unconventional Oil & Gas ETF (FRAK): +6.89%
• U.S. Global Jets ETF: +6.63%
• Harvest Travel & Leisure Index ETF (TRVL): +6.51%
• iShares U.S. Oil & Gas Exploration & Production ETF (IEO): +6.20%
• Global X MSCI China Utilities ETF (CHIU): +6.14%
• Ninepoint Energy Fund (NNRG): +6.06%
• SonicShares Airlines, Hotels, Cruise Lines ETF: +5.57%

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