R4| Monday, December 7, 2020 THE WALL STREET JOURNAL.
O
il-and-gasstocks have struggled in 2020,
weighed down by lockdowns and travel restric-
tions. But could the promise of Covid-19 vac-
cines fuel the sector in 2021?
A large number of exchange-traded funds
focus on companies in the industry, either tak-
ing a wide-ranging approach or focusing on
specific niches like exploration and production. For the most
part, these funds have had a tough year, though there has
been a rebound recently, including rallies Friday on renewed
hope for a coronavirus-aid package.
For example, the $13.6 billionEnergy Select Sector SPDR
(XLE) is down 32% for this year. However, it is up 17% for the
past three months, and 37% in the past month alone. Other
major funds in the sector—such as the $3.4 billionVanguard
EnergyETF (VDE) and the $962 millioniShares Global En-
ergyETF (IXC)—have had an almost identical performance.Hit by the pandemic
The sector was among the hardest hit by the pandemic, says BRANDON THIBODEAUX FOR THE WALL STREET JOURNALJOURNAL REPORT|INVESTING IN FUNDS & ETFS
Neena Mishra, director of ETF re-
search for Zacks Investment Re-
search; as the economy nosedived,
so demand for fuel fell, particularly
with travel grinding to a virtual
standstill for months. However, en-
couraging vaccine-trial results have
helped support a rebound.
Matt Bartolini, head of SPDR
Americas Research at State Street
Global Advisors, says XLE and the
$2.3 billionSPDR S&P Oil & Gas Ex-
ploration & ProductionETF (XOP)
both notched their third-best days
ever in terms of returns in early No-
vember. This could be driven partly
by volatility, Mr. Bartolini says, be-
cause oil-focused stocks often gy-
rate at times of economic upheaval.
The two days with better returns
were in March, at the onset of the
pandemic, and in autumn 2008, dur-
ing the depths of the 2007-09 re-
cession.
Still, Mr. Bartolini says he be-
lieves that much of the upturn in
the past few months is due to thepositive vaccine news “and a bit of
an eye toward recovery.” He notes
that many cyclical sectors—those
tied to the health of the economy—
have seen a similar trajectory, such
as banks.Not an easy play
Mr. Bartolini says he believes there
could be opportunities now for value-
oriented investors in oil-and-gas
stocks. However, he warns that “in-
vesting in oil and gas requires a bit
of a steel stomach.” Earnings expec-
tations are downbeat, Mr. Bartolini
says, though this could change in the
medium term depending on the
strength of the recovery.
ETFs focused on oil-and-gas com-
panies have performed poorly for
years, not just in 2020, says Todd
Rosenbluth, head of ETF and mutual-
fund research at CFRA. The industry
has been struggling since the collapse
of oil prices in 2014, he says, while
there has long been a world-wide glut
of the commodity.
Any recovery in demand would help
replace the pandemic-driven decline,
but doesn’t change the oversupply,
says Mr. Rosenbluth.
CFRA forecasts that crude prices
will remain mediocre in 2021, he
says, even with a Covid-19 vaccine.
In such an environment, investors
should be particularly wary of en-
ergy companies with high debt lev-
els or looming maturity dates on
their corporate bonds.
Another concern: The pace of re-
covery might not continue in the
coming months, Ms. Mishra says. The
wide rollout of vaccines is still
months away, “and if Covid infections
continue to surge at the current pace,
we may see even tighter restrictions
resulting in additional downward
pressure on oil.”
In the longer term, the Biden ad-
ministration is likely to push for a
transition to cleaner energy, Ms.
Mishra adds, though she notes that
some of the major oil companies
“have started investing more in re-
newables to prepare for a low-car-
bon future.”Mr. Cowanis a writer in Northern
Ireland. He can be reached at
[email protected].•SectorStrategy
Oil-and-Gas ETFs Show Some Life
Investing in oil-and-gas
stocks and ETFs often
requires guts.Pummeled for most of 2020, as
travel dried up, the sector has been
boosted by Covid-19 vaccinesBYGERRARDCOWANEnergy Select Sector SPDR
Vanguard Energy
SPDR S&P Oil & Gas Explor. & Prod.PerformanceofenergyETFsSource: FactSet2020 Dec.-70-60-50-40-30-20-10010%N.A.:Not applicable; fund is too new * Annualized Note: For funds with multiple share classes, only the largest is shown. Source: Refinitiv Lipper
Leaders and Laggards
Performance numbers are total returns (changes in net asset values with reinvested distributions) as of
Nov. 30; assets are as of Oct. 30. All data are final.Best-Performing Stock Funds
Total Return (%)
Assets Annualized
Fund Ticker ($ millions) November YTD 1-year 3-year 5-year
MS FANG+ Index 3x Lev FNGU 783.7 23.7 259.9 345.5 N.A. N.A.
MS FANG+ Index 2X Lev FNGO 132.8 15.8 180.3 223.9 N.A. N.A.
Invesco Solar TAN 1,806.0 22.9 174.9 203.4 52.4 28.5
Invesco WldHill CE PBW 869.6 44.9 171.0 198.3 56.7 36.0
GMO:Spec Opptys Fd;VI GSOFX 218.3 21.6 168.5 165.4 46.4 32.8
Frst Tr:NASDAQ CE Green QCLN 756.6 33.9 155.5 178.3 47.3 34.9
ARK Genomic Revolution ARKG 2782.2 24.4 143.3 141.0 51.9 34.3
ARK Next Gen Int ETF ARKW 2,825.5 22.8 136.0 142.2 58.0 50.1
Morg Stan I:Disc;A MACGX 3,298.2 19.0 133.3 129.0 53.8 34.2
Zevenbergen Genea;Inv ZVGNX 99.0 20.9 130.6 137.7 49.2 36.9
Am Beacon:ARK TI;Y ADNYX 677.1 22.0 124.9 125.7 43.4 N.A.
ARK Innovation ARKK 9,643.2 23.7 124.2 123.7 49.0 42.7
Direxion:DJ Int Bull 3X WEBL 47.8 32.9 116.7 122.4 N.A. N.A.Best-Performing Bond Funds
Total Return (%)
Assets Annualized
Fund Ticker ($ millions) November YTD 1-year 3-year 5-year
Lord Abbett Convert;F LBFFX 1,194.4 13.0 53.4 57.8 22.7 18.9
iShares:Convertible Bond ICVT 851.5 14.7 49.9 54.0 22.1 18.0
AllianzGI:Conv;Inst ANNPX 2,096.7 12.9 45.1 48.7 23.6 17.8
Direxion:20+Y Trs Bl 3X TMF 282.9 4.26 44.4 30.2 22.2 15.2
SPDR Bbg Barclays Cnv Sc CWB 5,172.2 13.6 43.1 47.4 19.5 16.7
Calamos:Convertible;I CICVX 1,161.9 12.3 40.9 43.9 19.2 15.0
Franklin Inv:Cv Sc;Adv FCSZX 4,506.9 10.6 40.2 41.8 22.1 18.0
Frst Tr IV:SSI St Cnv Se FCVT 236.8 14.6 39.8 43.2 18.8 15.0
Columbia:Conv Secs;I NCIAX 1,995.6 13.0 39.5 43.1 20.5 17.1
Putnam Conv Sec;A PCONX 887.6 11.0 37.0 39.2 17.9 15.1
Invesco Conv Sec;A CNSAX 1,243.6 11.1 35.7 37.7 17.3 13.1
ProShares:Ult 20+ Yr Tr UBT 49.9 2.2 34.5 26.4 17.7 12.6
HCM Income Plus;A HCMEX 278.6 9.6 34.3 38.3 14.1 N.A.Worst-Performing Stock Funds
Total Return (%)
Assets Annualized
Fund Ticker ($ millions) November YTD 1-year 3-year 5-year
Direxion:S&P OG EP Bl 2X GUSH 342.3 68.7 –97.8 –96.5 –85.5 –73.7
Direxion:Jr Mnr Bear 2X JDST 87.1 5.6 –94.8 –96.4 –80.1 –85.1
MS US BO Idx 3X Lvrgd NRGU 84.5 112.0 –94.7 –93.8 N.A. N.A.
MS FANG+ Idx -3X Inv Lev FNGD 87.6 –23.4 –93.9 –95.2 N.A. N.A.
ProShs II:Ult Blm CrO UCO 1,011.0 42.4 –93.6 –92.2 –60.7 –48.4
Direxion:MSCI Bra Bull2X BRZU 157.8 51.3 –93.1 –90.0 –57.1 –28.6
Direxion:EnergyBull 2X ERX 257.5 58.3 –92.2 –90.8 –64.1 –47.0
Direxion:Semicnd Bear 3X SOXS 93.8 –43.3 –91.6 –93.4 –77.5 –75.2
VelShs 3x Long Nat Gas 156.9 –48.1 –90.0 –91.5 –79.4 –74.2
Direxion:S&P 500 HB Br3X HIBS 52.8 –58.1 –89.3 –91.1 N.A. N.A.
Direxion:Jr Mnr Bull 2X JNUG 643.5 –13.7 –87.9 –83.8 –47.9 –30.1
Direxion:S&P Btech Br 3X LABD 69.0 –42.5 –87.3 –88.1 –68.3 –65.0
Direxion:DJ Int Bear 3X WEBS 5.3 –30.4 –86.1 –86.5 N.A. N.A.Worst-Performing Bond Funds
Total Return (%)
Assets Annualized
Fund Ticker ($ millions) November YTD 1-year 3-year 5-year
Barclays Inv US TC ETN TAPR 3.5 -4.4 -60.4 -56.2 -38.0 -30.2
Direxion:20+Y Trs Br 3X TMV 99.0 -6.1 -55.5 -51.4 -34.0 -28.2
ProShares:UPSh 20+ Trs TTT 24.4 -5.2 -55.3 -51.6 -33.8 -27.8
iPath ETN Trs 5Yr Bear DFVS 1.9 -1.6 -50.1 -48.7 -24.2 -15.5
ProShares:UlS 20+ Yr Trs TBT 485.1 -3.3 -39.1 -35.5 -22.1 -17.9
Braddock Mlt-Str Inc;Ins BDKNX 838.3 1.6 -29.5 -29.1 -8.0 N.A.
Direxion:7-10Y Trs Br 3X TYO 6.9 -1.4 -27.8 -25.9 -16.7 -13.3
ProFunds:Rs Rt Opp;Inv RRPIX 7.4 -3.1 -27.8 -24.6 -15.4 -12.2
Direxion:M25TBr1.35X;Inv DXSTX 0.2 -2.5 -25.2 -21.8 -15.2 -11.9
Rydex:Inv Gv LB Str;Inv RYJUX 29.6 -2.3 -22.0 -19.1 -11.6 -9.0
ProShares:Sht 20+ Treas TBF 253.6 -1.6 -20.3 -18.0 -10.5 -8.4
ProShares:UlS 7-10Y Trs PST 25.6 -0.8 -19.0 -17.6 -10.0 -7.4
Direxion:M7-10Y B 2x;Inv DXKSX 1.5 -0.8 -18.6 -17.0 -10.5 -8.2
Note: For funds with multiple share classes, only the largest is shown. N.A.:Not applicable; fund is too new or data not available Source: Refinitiv LipperCategory Kings in 10 Realms
Top-performing funds in each category, ranked by year-to-date total returns (changes in net asset values
with reinvested distributions) as of Nov. 30; assets are as of Oct. 30. All data are final.
Large-Cap Core
Assets Total return (%)
($ millions) Nov YTD 1-yr 5-yr*
HCM Defender 100 Idx ETF 119.5 14.9 32.1 38.1 N.A.
AdvsrShs DW FSM US Core 56.5 10.8 31.1 N.A. N.A.
CB Sustain Leaders;I 20.1 11.0 29.1 32.1 17.2
ImpShs:YMCA Wmn Empwrmt 9.7 12.1 26.7 31.0 N.A.
Centre Am Sel Eq;Inv 160.7 8.8 25.3 29.4 12.5
Fidelity Magellan Fund 19,911.8 8.1 24.2 27.0 15.0
IndexIQ:IQ Cndrm ESG US 220.5 10.4 22.8 N.A. N.A.
Category Average: 1,370.2 10.8 12.3 15.5 12.4
Fund Count 687 682 643 636 512
Small-Cap Core
Assets Total return (%)
($ millions) Nov YTD 1-yr 5-yr*
Needham:Sm Cap Gro;Instl 158.2 22.1 54.6 62.1 N.A.
Jacob Micro Cap Gro;Inst 18.1 24.4 52.9 57.5 21.9
Perkins Discovery 8.9 29.6 37.9 43.1 17.1
Paradigm:Micro-Cap 67.7 25.4 34.0 42.5 15.9
WesMark:Sm Company Gro 99.2 14.3 23.7 25.3 9.1
THB Asst Mgt MicCp;Inst 50.8 20.4 18.3 22.4 11.8
BNY Mellon:SC Mlt-St;M 492.7 15.2 18.3 21.7 12.0
Category Average: 461.7 16.6 1.3 4.1 7.2
Fund Count 921 919 905 899 720Large-Cap Value
Assets Total return (%)
($ millions) Nov YTD 1-yr 5-yr*
Barclays iPath Shiller 203.7 12.2 15.1 17.8 16.2
DoubleLine:Sh En CAPE;I 7,162.6 13.5 12.1 14.7 16.0
Invesco S&P 100 Eq Wght 61.3 14.0 9.9 12.8 13.1
Vanguard Windsor II;Adm 41,988.7 13.3 9.4 12.5 10.8
AMG Yacktman Focsd;N 3,013.2 14.1 9.3 14.0 12.1
Amer Cent:DC Val;Inv 2,114.6 10.6 8.4 10.8 11.0
Neuberger LC Value;Inv 1,670.8 19.8 8.2 11.9 12.8
Category Average: 999.7 14.0 0.3 3.0 8.5
Fund Count 382 382 373 372 331
Large-Cap Growth
Assets Total return (%)
($ millions) Nov YTD 1-yr 5-yr*
Transam:Large Gro;I3 982.7 15.2 68.4 70.3 N.A.
Touchstone Inst:Snd Gr 2,243.4 11.9 59.2 63.8 22.1
Touchstone:Sel Gro;Y 2,226.1 12.0 58.9 63.4 21.8
PGIM Jenn Focused Gr;Z 981.0 15.5 57.0 60.1 22.7
Fidelity Blue Chip Gr K6 4,324.1 13.6 54.0 59.4 N.A.
Fidelity Blue Chip Gr 39,699.1 13.6 53.3 58.7 23.2
Vanguard US Growth;Adm37,309.0 13.4 51.2 55.0 21.6
Category Average: 2,314.5 10.2 31.6 35.3 17.7
Fund Count 685 685 657 655 553
Midcap Core
Assets Total return (%)
($ millions) Nov YTD 1-yr 5-yr*Carillon:Sct Mid Cap;I 2,805.3 12.9 18.9 21.4 13.2
Invesco S&P MidCap Qlty 67.3 12.5 18.7 21.9 12.3
Tarkio 106.7 18.4 17.9 18.9 13.7
JPMorgan:MdCp Eq;R6 1,738.8 13.7 17.3 19.8 13.0
Clarkston Founders;Inst 78.0 14.5 16.7 18.5 N.A.
Thrivent Fds:MC Stk;A 2,247.5 15.9 16.2 19.3 13.7
Destinations SMC Eq;I 939.8 17.3 14.4 18.6 N.A.
Category Average: 1,183.2 13.4 3.7 6.1 7.9
Fund Count 352 353 342 336 258
Small-Cap Value
Assets Total return (%)
($ millions) Nov YTD 1-yr 5-yr*
North Star Micro Cap;I 82.8 16.0 32.2 37.6 12.0
Bridgeway:Ultra-Sm Co 58.8 24.0 19.8 24.3 4.3
Brandes Inv:SC Val;I 0.7 16.9 14.6 18.4 N.A.
Bridgeway:U-Sm Co Mkt 150.4 24.9 13.9 21.1 7.4
Invesco S&P SC 600 Rev 214.6 24.2 13.0 16.5 7.8
Snow Capital SC Val;A 11.5 24.5 11.0 15.3 4.9
Aegis Value;I 102.5 12.7 8.6 28.3 16.2
Category Average: 315.3 18.2 –3.6 –0.3 5.3
Fund Count 226 225 218 217 184Midcap Value
Assets Total return (%)
($ millions) Nov YTD 1-yr 5-yr*
Hennessy:Crnst MdCp;Inv 324.4 12.6 17.6 18.9 5.1
WM Blair:Sm-Md Cp Cr;I 24.2 15.5 11.1 13.4 N.A.
T Rowe Price MC Vl 11,039.5 13.4 4.0 8.3 8.4
J Hancock II:Mid Val;NAV 1,258.4 13.3 3.9 8.2 8.1
Gabelli Eq:Foc Five;AAA 30.0 15.1 3.6 8.0 2.1
GoodHaven Fund 77.1 11.0 3.0 7.9 5.5
GW:Ariel MC Val;Inv 148.8 15.3 2.7 4.6 6.2
Category Average: 498.6 15.7 –2.7 0.3 5.8
Fund Count 155 154 149 149 122
Small-Cap Growth
Assets Total return (%)
($ millions) Nov YTD 1-yr 5-yr*
Morg Stan I:Inc;I 413.2 27.8 109.6 106.7 27.3
Renaissance IPO ETF 303.7 27.0 106.9 105.7 25.0
Delaware Sm Cap Gro;Inst 100.5 16.5 78.8 77.8 N.A.
Osterweis Emerg Oppt 158.6 15.6 71.8 71.3 N.A.
Driehaus:Micro Cap Gro 260.2 21.8 64.6 72.3 25.7
Lord Abbett McCp Gro;I 115.0 19.9 58.3 66.6 24.3
Columbia:SmCp Gro I;I 1,717.2 17.3 57.3 57.9 24.9
Category Average: 568.8 14.8 27.1 29.2 14.7
Fund Count 679 678 671 671 539Multicap Core
Assets Total return (%)
($ millions) Nov YTD 1-yr 5-yr*
Permanent Port:Aggr Gr;I 26.7 16.2 35.4 38.3 14.5
Needham:Growth;Retail 113.9 17.2 34.6 38.8 15.2
Miller Opportunity;I 1,657.8 24.2 26.5 27.8 12.8
Domini:Impct Equity;Inv 848.5 10.7 25.2 28.8 13.1
Putnam Sstnbl Ldrs;A 5,253.4 10.0 24.4 28.2 17.9
TANAKA:Growth Fund;R 9.7 16.5 23.2 23.9 1.5
Schwab Cap:Lg-Cap Gro 210.0 8.4 23.1 26.4 14.5
Category Average: 2,309.5 11.5 11.7 14.7 11.3
Fund Count 687 689 663 654 507Multicap Growth
Assets Total return (%)
($ millions) Nov YTD 1-yr 5-yr*
Zevenbergen Genea;Inv 99.0 20.9 130.6 137.7 36.9
Morg Stan Insight;A 6,012.0 19.6 115.1 114.4 35.0
Baron Partners Fund;Rtl 4,512.4 30.8 114.7 126.2 32.8
Bail Giff US EG;K 76.2 20.2 112.3 116.0 N.A.
Zevenbergen Growth;Inst 79.3 16.2 111.9 119.1 31.8
Morg Stan I:Growth;I 13,840.4 19.2 111.8 109.9 31.6
Transam:Cap Growth;I 4,090.4 18.9 109.6 107.8 30.7
Category Average: 695.3 11.8 36.1 38.8 17.2
Fund Count 522 522 511 511 406