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It’s Not Tech: Energy Leads the S&P 500

BY | ETF Database
7:20 am ET 11/03/26 | 8 VIEWS
  • Related Symbols
  • XLE
Traditionally speaking, when one is choosing to lean into a particular sector of the equity market, they’re going to want to lean into the one that’s offering the best performance.Key Takeaways: While some may assume tech is the top performing sector of the S&P 500, the actual top sector is energy. As of the end of October, energy is up 14% across the month, and has grown 59.92% year-to-date. The State Street Energy Select Sector SPDR ETF XLE offers targeted exposure to the energy sector of the S&P 500. If you were to ask the average person on the street what sector of the S&P 500 was doing the best on both one-month and year-to-date basis, they’d probably guess technology. However, that would be the wrong guess – energy is leading the pack on both fronts. Earlier this month, S&P Global released a report examining how the S&P 500’s respective sectors are doing. As the report noted, the energy sector was up 14% across the month of October. The one-month gap between the highest- and lowest-performing sectors is significant, given that the weakest monthly sector–-communication services–-was down 15.1% in October. This represents a difference of about 29% between energy and communication services, all within a singular month. See More: Coca-Cola Sips on Profits While Inflation Sweats The distance between energy and communication services grows even wider on a year-to-date basis. Energy has climbed 59.92%, whereas communication services remains the worst-performing sector, down 11.31%. That creates an immense gap of over 71% between the two.Time to Refuel Your S&P 500 Energy ExposureNaturally, this may lead advisors and investors to consider allocating more assets to the energy sector. After all, this cyclical sector is offering significant near-term and long-term opportunities, if S&P’s newest report can serve as any indication. The State Street Energy Select Sector SPDR ETF XLE can help portfolios cultivate stronger access to the energy sector. XLE, for the cost of 8 basis points, offers targeted exposure to the energy sector of the S&P 500. Due to XLE’s focus on S&P energy giants, the fund invests in plenty of household energy names. This includes ExxonMobil, Chevron, and ConocoPhillips, as of November 2, 2026. Given the performance data cited above, it is certainly at least worth considering gaining focused exposure to this sector. After all, energy companies have shown how well-positioned they are to benefit from ongoing geopolitical and macroeconomic conditions. For more news, information, and analysis, visit our Sector Investing Content Hub.

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