XLE and XLV

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ENERGY SELECT SECTOR SPDR ETF (XLE)

The clear winner of 2022 was the energy sector. While inflation rose, prices followed, and in particular… the cost of energy. Oil and natural gas stocks pushed higher than the rest of the market leading to the Energy Select Sector SPDR ETF (XLE) to post an over 40% gain throughout 2022.

The question after this kind of performance then becomes, how will energy perform in 2023? The only way to find out is to watch how the market and global economy unfold over the next year. Regardless, the prior year’s performance has this sector high on everyone’s list to see if the energy can post a repeat.

HEALTH CARE SELECT SECTOR SPDR ETF (XLV)

Another one of the best performing ETFs of last year was the Health Care Select Sector SPDR ETF (XLV). Healthcare has traditionally done well in highly inflationary, or recessionary type environments as there is an ongoing need for healthcare, regardless of economic climate. This coupled with the renewed interest in medicine that could prevent the next pandemic, or at the very least. better prepare us for one, has granted investors with a bit of a “safe-haven” in an underperforming market.

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