Energy ETFs have emerged as the top performers in 2026, with funds like the Breakwave Tanker Shipping ETF (BWET) and major oil-linked ETFs leading the gains. The rally has been driven by a sharp rise in oil prices.
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While tech stocks face pressure from valuation concerns, investor focus has shifted toward energy and commodity-linked assets. This move is largely tied to supply disruptions around the Strait of Hormuz, a key route for global oil shipments, which has pushed prices higher and lifted returns across the sector.
Tanker ETF Leads with Standout Gains
The biggest gainer this year is the Breakwave Tanker Shipping ETF (BWET), which is up an exceptional 585% year-to-date. The fund tracks tanker freight rates, which have surged as supply routes face disruption.
Unlike standard oil funds, BWET tracks the cost of transporting crude oil. Because of the conflict with Iran, tankers are either refusing to enter the Strait or charging massive premiums to take the risk. This has caused “freight futures” to explode, handing BWET investors historic gains.
Oil ETFs Near 100% Gains
Crude oil prices have also moved higher as supply tightens, reflecting the impact of ongoing disruptions. This has supported strong gains in oil-linked ETFs, with several popular funds now approaching the 100% mark for the year. As a result, energy-focused investments continue to lead the market.
- United States Oil Fund (USO): Up 99.42%
- United States Brent Oil Fund (BNO): Up 91.10%
- Invesco DB Energy Fund (DBE): Up 73.95%
Unlike previous energy rallies, the current surge is also being driven by a shortage of refined products such as gasoline and diesel. This has pushed funds like the United States Gasoline Fund (UGA) up over 71% this year.
A key factor behind this move is the Strait of Hormuz, through which roughly 20% of the world’s oil supply passes. With ongoing disruptions, markets are factoring in potential supply risks. As a result, investors are shifting away from growth stocks toward energy-related assets that tend to benefit in such conditions.
What to Watch Next
The “wait-and-see” phase continues as the Tuesday deadline for reopening the Strait approaches. If a 45-day ceasefire is finalized, these energy gains could cool off rapidly. However, as long as the blockade remains in place, energy and tanker stocks are likely to remain among the few areas showing gains in an otherwise weak market.
The following are the top-performing energy ETFs in 2026 so far:
