- Ethan Price
Will Energy Stocks Continue to Boom in 2022?
Image Source: StockMarket.com
By: Ethan Price
January 10th, 2022
Many energy investors were happy to watch their favorite picks grow over the course of 2021. Research by Morningstar Investment Analysis determined that the energy sector fund significantly out preformed every other sector, growing by a net $11.4 billion. Additionally, the total return for the energy sector was 53.3%. The boom within the energy industry has been attributed to increased energy needs, as the economy starts to open back up around the globe.
Investment Analyst with the WSJ seem to believe that the need for sustainable energy will continue to drive the energy sector in 2022. Oil prices were very high in 2021 but countries around the world, including the US, have dipped into their own reserves in an attempt to decrease the absurdly high oil rates much of the world is seeing currently.
For investors interested in energy ETFs, funds such as Vanguard Energy (VDE), First Trust Natural Gas (FCG) and Direxion Daily (GUSH) all had unbelievable gains in 2021. Vanguard Energy grew by 56.2% while bot FCG and GUSH grew by about 100% each.
As the economy attempts to operate at full capacity once again, it seems as if the energy sector is going to see continued growth.