U.S. energy posts record 14-week streak; XLE draws $6B

Data from S&P Dow Jones Indices show the S&P 500 Energy sector has recorded gains for 14 consecutive weeks, the longest winning streak in the sector’s history. The sector has reached 25 all-time highs so far in 2026. Over the same period the broader S&P 500 has fallen for five straight weeks and sits roughly 9% below its record peak.

Sector returns have diverged sharply in recent trading. Over a recent one-week span, energy advanced 6.2% while communication services declined 7.2%, producing a 13.4 percentage-point gap between the best- and worst-performing sectors. Six U.S. large-cap sectors are trading at least 10% below their respective highs; real estate is the weakest, about 21% below its 2021 peak. Energy shows a 0.0% drawdown and is trading at an all-time high.

ETF Database data show the State Street Energy Select Sector SPDR Fund (XLE) drew roughly $6 billion in net inflows over the past three months, including about $1.73 billion in the most recent month. The ETF returned 11.5% over the last month and 39.5% year-to-date and carries an expense ratio of 0.08%. XLE provides exposure to oil, gas and consumable fuel companies within the S&P 500. Energy represents about 4.3% of the S&P 500.

S&P Dow Jones Indices cited geopolitical instability, particularly tensions involving Iran, as a factor that has kept monetary policymakers in a wait-and-see posture and encouraged flows into inflation-linked and defensive sectors. The index data show investors have favored targeted sector exposure amid a dispersed performance environment.

The energy sector’s run through 2026 has produced record-level sector performance even as much of the broader market trades below prior peaks, and XLE has been a prominent vehicle for investors seeking concentrated exposure to the rally in energy names.