One of the best-performing TSX market sectors in 2022 was energy. As commodities prices rose due to runaway inflation, energy stocks delivered high returns, outperforming other sectors and the broad market. Investors who over-weighted energy stocks in their portfolios were able to reap these benefits.
However, buying individual energy stocks can be time-consuming. With this approach, investors have to spend time on research, rebalancing their portfolio, and keeping up with earnings reports and corporate events.
A more hands-off, diversified approach using exchange-traded funds (ETFs) that track TSX energy stocks might be a good alternative.
What is an energy ETF?
An energy ETF is a fund that tracks a basket of energy sector stocks. Within the Canadian stock market, this includes companies involved in the production, processing, and sale of energy products and services. Examples include oil, natural gas, and renewable energy…
