The Top 10 Holders of Energy ETFs in 2022

It was not that long ago in April 2020 when US crude oil had gone negative ( below $0) as the Covid shutdown caused us to run out of physical places to store crude. 

It became the “hot potato” of the commodity sector. While the globe flipped short term consumption into the “ off “ position, it was not as easy to do in capital and labor intensive industries such as oil and natural gas.  

Prior to the pandemic, the sector was already experiencing an evacuation of both financial and physical investment due to the ESG/Carbon Zero movements underway and the desire of capital sources to reduce their exposure to the industry in its entirety. 

We saw this reflected not just via 13F ETF flows, but also via the Public Pension Plan minutes which Dakota provides in Marketplace. 

Many pension, endowments, and foundations had made it clear that they were pulling investment allocations completely away from fossil fuels moving forward. 

By November of 2020, the energy sector had sunk to below 2% of the entire S&P 500 on a market cap basis. 

To put this in perspective, over the past 40 years, energy stocks went from 30% to less than 3% of the S&P 500, and now make up none of the top 10 biggest stocks. 

During the  2010s, the sector rose just 3.3% per year from 2010-2019 versus 13.4% annual returns for the overall S&P 500. All of this led to energy having the worst price performance versus the SP 500 since the Great Depression and having a weighting smaller than Apple.

(source : Bespoke Investments)

Once the vaccines were released, particularly in the US, where there was a robust rollout program, many realized that we did in fact need diesel, jet fuel, natural gas and other forms of fossil fuels for the world to operate and re-open. Yet, the industry had suffered from under-investment and human capital for over a year now as many viewed investment in fossil fuels as socially unacceptable. 

In mid-2021, the demand for oil, gas, and natural gas by-products had already reached pre-Covid levels, yet OPEC was already pumping at 2019 levels with very little to no spare capacity. 

Over the past three quarters now, as energy companies reap the benefit of spiraling oil and natural gas prices, the energy sector is catching up again and flows have followed with energy being the unloved to being on the world stage. 

• Q3 2021: Last year we saw a muted 2% gain, as concerns about global growth, COVID, etc. continued and did not see many commitments in filings.
• Q4 2021: Vaccine usage increased, and investors began to realize how cheap the sector had gotten, resulting in a 7% increase in flows via filings.
• Q1 2022: A massive 48% in sector flows was accelerated by the Ukrainian-Russian conflict among allocators who filed. 

Looking under the hood, the last two quarters have shown a preference towards exploration, production, and drilling focused ETFs and closed end funds. 

Allocators are looking for operating and earnings leverage from these companies being so lean right now and that they have pricing power.  MLPs have participated in an increase as well, but much less due to their role in the sector.  

While the sector is in favor today, we have seen boom and bust cycles in energy before and ESG trends will continue as many countries strive to get to Net Zero in carbon emissions. Some additional things to consider include:

• ESG focus has led to an evacuation of capital and caused energy capex to drop 30% from pre covid levels and 50% from 2014 levels. CapEx for renewable energy is now twice that of oil and gas.
• Currently solar and wind represent 2% of energy output, compared to fossil fuels at 80%. This is a sobering reminder that the transition to ESG energy will take time and large investment. 
• Oil Rig count was at 800 in Jan 2019, now only 750 rigs in operation despite energy demand rebounding and exceeding where we were pre-COVID. 
• With Russian oil banned for the foreseeable future, the energy industry needs to come up with an additional 38 million barrels per day to fill this void. 

Below are the top energy EFTs held by allocators as reported via 13Fs at the end of Q1 2022.

1. CitiGroup Private Bank: $1,143,391,000

Investment strategies:

• Energy Select Sector SPDR: $253,582,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $397,344,000.00
• Energy Select Sector SPDR: $225,498,000.00
• Energy Select Sector SPDR: $57,666,000.00
• United States Natural Gas Fund: $14,520,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $82,358,000.00
• Energy Select Sector SPDR: $40,131,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $28,393,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $21,138,000.00
• United States Natural Gas Fund: $2,407,000.00
• Vanguard Energy: $5,887,000.00
• United States Oil Fund: $3,971,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $4,709,000.00
• iShares Dow Jones US Energy: $971,000.00
• Energy Select Sector SPDR: $1,452,000.00
• United States Oil Fund: $1,376,000.00
• United States Oil Fund: $1,123,000.00
• Vanguard Energy: $829,000.00
• NB MLP and Energy Income Fund Inc.: $19,000.00
• United States Brent Oil: $7,000.00
• iShares Dow Jones US Energy: $9,000.00
• Kayne Anderson MLP/Midstream: $1,000.00
• United States Natural Gas Fund: $0,000.00
• First Trust North American Energy I: $0,000.00

2. Envestnet: $1,131,982,000

Investment strategies:

• iShares Dow Jones US Energy: $762,378,000.00
• Energy Select Sector SPDR: $178,250,000.00
• Vanguard Energy: $149,283,000.00
• First Trust Energy AlphaDEX ETF: $16,232,000.00
• First Trust North American Energy I: $6,648,000.00
• Invesco DB Oil: $3,954,000.00
• First Trust Nasdaq Oil & Gas ETF: $3,220,000.00
• Invesco DB Energy: $2,206,000.00
• Credit Suisse X-Lnks Crude oil: $410,000.00
• Invesco Dynamic Oil & Gas Services: $335,000.00
• First Trust MLP & Energy Inc Fund: $410,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $5,821,000.00
• NB MLP and Energy Income Fund Inc.: $194,000.00
• Kayne Anderson MidstreamEnergy: $172,000.00
• Invesco Dynamic Engy Explr & Prdtn: $542,000.00
• Kayne Anderson MLP/Midstream: $179,000.00
• ClearBridge MLP and Midstream: $484,000.00
• Invesco DWA Energy Momentum ETF: $437,000.00
• JHancock Multifactor Energy ETF: $319,000.00
• United States Oil Fund: $508,000.00

3. Raymond James & Associates Inc.: $791,700,000

Investment strategies:

• Kayne Anderson MidstreamEnergy: $29,209,000.00
• First Trust Energy AlphaDEX ETF: $47,531,000.00
• Energy Select Sector SPDR: $200,375,000.00
• Energy Select Sector SPDR: $193,745,000.00
• First Trust Energy AlphaDEX ETF: $22,596,000.00
• First Trust Nasdaq Oil & Gas ETF: $31,795,000.00
• Kayne Anderson MLP/Midstream: $8,216,000.00
• iShares Dow Jones US Energy: $36,414,000.00
• First Trust Nasdaq Oil & Gas ETF: $20,069,000.00
• First Trust North American Energy I: $14,653,000.00
• Invesco Dynamic Oil & Gas Services: $2,397,000.00
• First Trust North American Energy I: $12,435,000.00
• Kayne Anderson MLP/Midstream: $3,631,000.00
• Vanguard Energy: $36,380,000.00
• First Trust MLP & Energy Inc Fund: $2,786,000.00
• Invesco Dynamic Oil & Gas Services: $1,506,000.00
• ClearBridge MLP and Midstream TR: $7,172,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $31,019,000.00
• First Trust Energy Inc & Growth: $3,590,000.00
• Invesco DB Energy: $4,948,000.00
• Invesco DWA Energy Momentum ETF: $8,356,000.00
• Vanguard Energy: $20,347,000.00
• iShares Dow Jones US Energy: $7,620,000.00
• First Trust Energy Infra. Fund: $2,799,000.00
• NB MLP and Energy Income Fund Inc.: $1,082,000.00
• First Trust New Opps MLP & Energy: $1,020,000.00
• Invesco Dynamic Engy Explr & Prdtn: $4,193,000.00
• ClearBridge MLP and Midstream: $4,208,000.00
• First Trust MLP & Energy Inc Fund: $966,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $14,556,000.00
• Invesco Dynamic Engy Explr & Prdtn: $2,233,000.00
• Cushing NextGen Infrastructure Inco: $3,002,000.00
• Kayne Anderson MidstreamEnergy: $568,000.00
• Invesco DWA Energy Momentum ETF: $2,568,000.00
• First Trust Energy Infra. Fund: $725,000.00
• Energy Select Sector SPDR: $2,693,000.00
• Energy Select Sector SPDR: $408,000.00
• ClearBridge MLP and Midstream: $915,000.00
• Invesco DB Energy: $609,000.00
• Energy Select Sector SPDR: $239,000.00
• NB MLP and Energy Income Fund Inc.: $87,000.00
• First Trust Energy Inc & Growth: $176,000.00
• First Trust New Opps MLP & Energy: $64,000.00
• First Trust North American Energy I: $218,000.00
• Vanguard Energy: $639,000.00
• iShares Dow Jones US Energy: $231,000.00
• United States Oil Fund: $259,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $360,000.00
• iShares Dow Jones US Energy: $86,000.00
• Energy Select Sector SPDR: $6,000.00

4. Bank of Montreal: $735,085,000

Investment strategies:

• Energy Select Sector SPDR: $213,180,000.00
• Energy Select Sector SPDR: $129,334,000.00
• United States Oil Fund: $116,976,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $72,833,000.00
• United States Oil Fund: $39,494,000.00
• Energy Select Sector SPDR: $29,808,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $46,417,000.00
• United States Oil Fund: $16,326,000.00
• Energy Select Sector SPDR: $15,504,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $13,652,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $12,584,000.00
• Energy Select Sector SPDR: $6,314,000.00
• United States Natural Gas Fund: $1,561,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $9,557,000.00
• United States Natural Gas Fund: $1,210,000.00
• United States Oil Fund: $2,418,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $3,741,000.00
• First Trust Energy Inc & Growth: $250,000.00
• First Trust North American Energy I: $303,000.00
• Energy Select Sector SPDR: $744,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $1,249,000.00
• Energy Select Sector SPDR: $599,000.00
• Energy Select Sector SPDR: $398,000.00
• iShares Dow Jones US Energy: $133,000.00
• iShares Dow Jones US Energy: $118,000.00
• Energy Select Sector SPDR: $115,000.00
• Vanguard Energy: $89,000.00
• iShares Dow Jones US Energy: $24,000.00
• Energy Select Sector SPDR: $39,000.00
• Vanguard Energy: $52,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $41,000.00
• Vanguard Energy: $22,000.00

5. J.P. Morgan Private Bank: $611,193,000

Investment strategies:

• Energy Select Sector SPDR: $179,423,000.00
• Energy Select Sector SPDR: $164,785,000.00
• Energy Select Sector SPDR: $124,561,000.00
• Energy Select Sector SPDR: $94,777,000.00
• First Trust North American Energy I: $8,916,000.00
• First Trust Energy AlphaDEX ETF: $2,393,000.00
• Energy Select Sector SPDR: $6,997,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $10,741,000.00
• Vanguard Energy: $6,077,000.00
• United States Natural Gas Fund: $864,000.00
• United States Oil Fund: $2,385,000.00
• Energy Select Sector SPDR: $2,265,000.00
• First Trust North American Energy I: $574,000.00
• iShares Dow Jones US Energy: $767,000.00
• iShares Dow Jones US Energy: $543,000.00
• Vanguard Energy: $1,245,000.00
• Invesco DB Oil: $196,000.00
• Energy Select Sector SPDR: $791,000.00
• Energy Select Sector SPDR: $665,000.00
• Invesco DB Oil: $148,000.00
• Energy Select Sector SPDR: $607,000.00
• InfraCap MLP ETF: $223,000.00
• iShares Dow Jones US Energy: $295,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $515,000.00
• ClearBridge MLP and Midstream TR: $73,000.00
• United States 12 Month Oil: $69,000.00
• Energy Select Sector SPDR: $125,000.00
• Vanguard Energy: $115,000.00
• United States Gasoline: $35,000.00
• United States Brent Oil: $15,000.00
• ClearBridge MLP and Midstream: $7,000.00
• Invesco DB Energy: $1,000.00

6. Blackrock: $537,992,000

Investment strategies:

• iShares Dow Jones US Energy: $108,521,000.00
• iShares Dow Jones US Energy: $74,790,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $142,448,000.00
• iShares Dow Jones US Energy: $30,893,000.00
• Energy Select Sector SPDR: $46,475,000.00
• United States Oil Fund: $20,503,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $30,869,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $26,076,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $19,120,000.00
• Energy Select Sector SPDR: $10,363,000.00
• Energy Select Sector SPDR: $8,580,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $13,576,000.00
• United States Oil Fund: $3,223,000.00
• Energy Select Sector SPDR: $1,363,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $656,000.00
• United States Oil Fund: $273,000.00
• United States Oil Fund: $259,000.00
• Energy Select Sector SPDR: $2,000.00
• Vanguard Energy: $2,000.00
• Energy Select Sector SPDR: $0,000.00

7. Scotiabank: $381,242,000

Investment strategies:

• Energy Select Sector SPDR: $238,731,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $142,145,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $269,000.00
• Energy Select Sector SPDR: $97,000.00
• Energy Select Sector SPDR: $0,000.00

8. Bessemer Trust: $334,650,000

Investment strategies:

• SPDR S&P Oil & Gas Explor & Prod ET: $202,641,000.00
• Energy Select Sector SPDR: $62,824,000.00
• Vanguard Energy: $68,966,000.00
• Kayne Anderson MLP/Midstream: $24,000.00
• Energy Select Sector SPDR: $116,000.00
• NB MLP and Energy Income Fund Inc.: $8,000.00
• Kayne Anderson MidstreamEnergy: $9,000.00
• Salient Midstream & MLP: $3,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $44,000.00
• ClearBridge MLP and Midstream: $9,000.00
• ClearBridge MLP and Midstream TR: $4,000.00
• Cushing NextGen Infrastructure Inco: $2,000.00

9. Healthcare of Ontario Pension Plan (HOOPP): $266,491,000

Investment strategies:

• SPDR S&P Oil & Gas Explor & Prod ET: $242,594,000.00
• SPDR S&P Oil & Gas Explor & Prod ET: $18,164,000.00
• Energy Select Sector SPDR: $5,733,000.00

10. Beacon Capital Management: $259,858,000

Investment strategies:

• Vanguard Energy: $259,858,000.00

The above are the top 10 biggest holders of energy ETFs so far in 2022. For more information on each of these firms, their holdings, and more, we'd love to offer you a free trial of Dakota Marketplace.