Energy can help fuel a portfolio.

As many investors know, energy prices are prone to ups and downs. Demand for energy products is in many ways a proxy for global economic growth since businesses increase or decrease their activities to reflect big-picture trends. That makes investments in oil, gas and other energy stocks an important part of any diversified portfolio. While there is a risk of declines when crude oil prices roll back, there is also the potential for shared upside when the global economy is humming. If you're looking beyond individual big oil names and prefer to invest in broad energy trends via an exchange-traded fund, or ETF, here are nine to consider.

Next:Energy Select Sector SPDR ETF (ticker: XLE) Credit

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Energy Select Sector SPDR ETF (ticker: XLE)

With more than $10 billion under management, this SPDR fund is the largest energy sector ETF by total assets and regularly trades millions of shares each day. It's incredibly affordable, with a gross expense ratio of just 0.13% (or $13 annually on each $10,000 you invest). That affordability, along with 30 core holdings that include giants Exxon Mobil Corp. (XOM), Chevron Corp. (CVX) and ConocoPhillips (COP), make it easy to see why this is the go-to choice for many energy investors. Just keep in mind that large energy companies are very much the focus of this ETF, with those three stocks representing roughly half of the entire portfolio.

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Energy can help fuel a portfolio.

As many investors know, energy prices are prone to ups and downs. Demand for energy products is in many ways a proxy for global economic growth since businesses increase or decrease their activities to reflect big-picture trends. That makes investments in oil, gas and other energy stocks an important part of any diversified portfolio. While there is a risk of declines when crude oil prices roll back, there is also the potential for shared upside when the global economy is humming. If you're looking beyond individual big oil names and prefer to invest in broad energy trends via an exchange-traded fund, or ETF, here are nine to consider.

Energy Select Sector SPDR ETF (ticker: XLE)

With more than $10 billion under management, this SPDR fund is the largest energy sector ETF by total assets and regularly trades millions of shares each day. It's incredibly affordable, with a gross expense ratio of just 0.13% (or $13 annually on each $10,000 you invest). That affordability, along with 30 core holdings that include giants Exxon Mobil Corp. (XOM), Chevron Corp. (CVX) and ConocoPhillips (COP), make it easy to see why this is the go-to choice for many energy investors. Just keep in mind that large energy companies are very much the focus of this ETF, with those three stocks representing roughly half of the entire portfolio.

iShares US Oil & Gas Exploration & Production (IEO)

If you're looking for an ETF that still plays large energy companies but has a slightly broader portfolio that isn't quite as heavily weighted towards the big names, then consider IEO. Its list of components is twice as long as XLE at 60 stocks. And while its largest holding is ConocoPhillips at about 13%, the top three positions tally about 30% of assets and feature lesser-obvious names such as EOG Resources (EOG). For some investors, it may make more sense to buy Exxon stock directly if they only want to play big oil. But if they want broad energy exposure, they often look to this ETF instead.

VanEck Vectors Oil Services ETF (OIH)

For a different twist, the OIH fund offers a focus on oil field service stocks rather than the integrated names that dominate other energy ETFs. Top holdings include names like Schlumberger Ltd. (SLB) and Halliburton Co. (HAL) instead of Exxon and Chevron. The fund is still top-heavy, however, with these two big service providers representing about a third of the portfolio. And these companies come with their own unique risks as service contracts are open to cutbacks if and when crude oil prices decline significantly. Still, this ETF offers a different twist than the typical big oil company approach to the energy sector.

iShares Global Energy ETF (IXC)

Another way to slice the sector is to take a global approach that layers in non-U.S. corporations such as BP (BP) and Royal Dutch Shell (RDS.A), as well big domestic names. You're likely very familiar with these companies, given the fact that integrated and multinational oil companies are all over America. This means there's no worry of aggressive investments in far-flung regions of the world. And thanks to the inclusion of other oil giants topping $100 billion in value, this market capitalization-weighted ETF is actually pretty diversified across roughly 70 stocks. Less than 30% of the fund’s assets are in its top three positons.

Alerian MLP ETF (AMLP)

Another popular energy fund is this targeted Alerian ETF that zeroes in on master limited partnerships, or MLPs. These unique energy stocks are structured as partnerships and typically are pass-through entities for oil or gas, including pipelines and storage facilities. Although there's not much growth here, there tends to be incredibly reliable revenue and a mandate for big dividends. Thanks to top holdings like Magellan Midstream Partners (MMP) and Enterprise Product Partners (EPD), the AMLP fund boasts a yield of roughly 7.1% at present.

iShares Global Clean Energy ETF (ICLN)

In stark contrast to prior funds, the Global Clean Energy ETF is a unique offering that focuses on entities outside oil and natural gas companies. Specifically, ICLN targets companies involved in solar projects, wind turbines and even utilities that are focused on renewable energy. This fund is much smaller – not just in terms of its roughly $230 million in assets under management, but in its focused portfolio of 30 stocks that feature midsized companies First Solar Corp. (FSLR) and Ormat Technologies (ORA).

First Trust ISE-Revere Natural Gas Index Fund (FCG)

When most people think of energy stocks, they think about companies that are involved in crude oil production. However, natural gas is an increasingly dominant part of the global energy supply chain. The fossil fuel is abundant and relatively inexpensive thanks to hydraulic fracturing and in many ways, it is a cleaner-burning alternative to crude. First Trust offers the FCG fund, then, for investors looking beyond big oil. Top holdings of this ETF aren't as recognizable, including Cabot Oil & Gas Corp. (COG) and EQT Corp. (EQT), but they are dominant in this subsector of energy and can add a different twist to your portfolio.

Invesco DWA Energy Momentum Portfolio ETF (PXI)

Can't choose which flavor of energy stocks to pursue? Irritated that most energy ETFs are concentrated in their top five holdings? Then consider this PowerShares fund that takes a "dynamic" approach by focusing on share-price momentum and other technical factors. It is much more diversified, currently allocating only a third of its assets to large-cap firms, and only one single stock accounts for more than 4% of total assets as of this writing. But there are risks, since this ETF relies on smaller companies that are not as well-heeled as Exxon. If you want to look beyond the usual suspects, however, then PXI is an option to play the energy sector more broadly.

Invesco S&P 500 Equal Weight Energy ETF (RYE)

If you are interested in avoiding a focus on big oil but doesn't necessarily want to worry about momentum or other factors, then RYE offers a plain vanilla approach toward diversified energy investment. The fund takes the top 29 energy stocks in the S&P 500, then simply divides up the portfolio equally among them. Positions wax and wane based on market movements, but regular rebalancing by Invesco ensures you don't have all your eggs in one basket. If you want a simple one-stop investment to play the biggest names in energy without bias, this is your best bet.

Energy ETFs to buy now.

Energy Select Sector SPDR ETF (XLE)iShares US Oil & Gas Exploration & Production (IEO)VanEck Vectors Oil Services ETF (OIH)iShares Global Energy ETF (IXC)Alerian MLP ETF (AMLP)iShares Global Clean Energy ETF (ICLN)First Trust ISE-Revere Natural Gas Index Fund (FCG)Invesco DWA Energy Momentum Portfolio ETF (PXI)Invesco S&P 500 Equal Weight Energy ETF (RYE)1 of 12

Jeff Reeves, Contributor

A veteran journalist with extensive capital markets experience, Jeff Reeves began writing for ...  Read more

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