ETFs Ride Oil Price Surge to Outperform S&P 500

Several exchange-traded funds (ETFs) have outperformed the SPDR S&P 500 ETF Trust (SPY) in 2026, driven by surging oil prices and strong demand for semiconductors.

The United States Oil Fund (USO), which tracks the daily price movements of WTI crude oil, has more than doubled this year due to rising oil prices caused by the U.S.-Israel's war against Iran. The effective shutting down of the Strait of Hormuz pressured global energy supplies and contributed to a surge in oil prices.

Crude oil prices have spiked to levels close to 2022, with physical crude prices reaching near $150 per barrel in April due to disruptions. Analysts expect oil prices to remain elevated even if the U.S. and Iran close on a peace deal.