Energy stocks are cyclical, which means these companies perform extremely well during periods of economic expansion, and trail the markets significantly during recessions. After touching multi-year highs in 2022, energy stocks pulled back significantly last year, due to a challenging macro backdrop. 

But a resilient job market has helped oil prices move higher on a year-to-date basis. And more recently, crude futures (CLK24) rallied after an International Energy Agency (IEA) report indicated that oil markets are likely to face a supply deficit for the rest of 2024, due to the possibility of production cuts from OPEC+. 

The IEA also raised its forecast for global crude oil demand in 2024 to 1.3 million bpd, up by 110,000 bpd compared to its earlier guidance, due to a stronger economic outlook and the Red Sea shipping crisis, which should boost oil demand. 

For investors looking to gain exposure to a continued rise in oil prices, here are five exchange-traded funds (ETFs) you can buy right now. 

1. Energy Select Sector SPDR Fund (XLE)

The Energy Select Sector SPDR Fund (XLE) offers exposure to the energy sector in the U.S., and includes some of the largest oil companies in the world. The ETF is a solid investment choice for investors looking to shift exposure to a sector that can deliver outsized gains when oil prices surge higher. 

With $38.4 billion in assets under management, the XLE ETF has an expense ratio of 0.09%. Some of the fund's top holdings include Exxon Mobil (XOM), Chevron (CVX), ConocoPhillips (COP), Schlumberger (SLB), and EOG Resources (EOG), which account for more than 55% of the ETF. XLE offers a yield of 3.15%.

2. Vanguard Energy ETF (VDE)

The Vanguard Energy ETF (VDE) is a low-cost ETF with an expense ratio of 0.10%. Compared to XLE, the VDE fund holds four times the number of stocks, which further diversifies your portfolio. 

With $8.6 billion in assets under management, the VDE ETF is a multi-cap fund. Like XLE, some of the fund's top holdings include Exxon Mobil, Chevron, ConocoPhillips, Schlumberger, and EOG Resources, which account for 50% of the ETF. VDE yields 3.01%.

3. VanEck Oil Services ETF (OIH)

The VanEck Oil Services ETF (OIH) tracks the largest 25 listed oil companies in the U.S., limiting your exposure in the process. However, around 25% of the fund is invested in foreign equities, and several companies are cross listed on international exchanges. 

With $2.2 billion in assets under management, the OIH ETF has an expense ratio of 0.35%, which is quite high compared to the other funds on the list. Some of the ETF's top holdings include Schlumberger, Halliburton (HAL), Baker Hughes (BKR), Weatherford International (WFRD), and Tenaris (TS), which account for 50% of the fund. OIH currently yields 1.27%.

4. SPDR Oil & Gas Exploration & Production ETF (XOP)

The SPDR Oil & Gas Exploration & Production ETF (XOP) provides exposure to the exploration and production subsector of the domestic energy market. The XOP is an equal-weighted fund and is useful for investors who are interested in companies responsible for discovering and accessing new oil and gas deposits. 

With $4.2 billion in assets under management, the XOP ETF has an expense ratio of 0.35%. Some of the ETF's top holdings include PBF Energy (PBF), Valero Energy(VLO), Marathon Petroleum (MPC), and HF Sinclair (DINO). XOP has a portfolio of 55 stocks, with the top 10 accounting for 26.35% of the fund. XOP yields 2.24%.

5. Global X MLP Energy & Infrastructure Fund (MLPX)

The Global X MLP Energy & Infrastructure Fund (MLPX) tracks an index of master limited partnerships (MLPs) and companies engaged in the energy infrastructure sector. According to regulations, MLPX can allocate up to 24% of its portfolio to MLPs, with the rest going to infrastructure companies. 

With just over $1 billion in assets under management, the MLPX has an expense ratio of 0.45%. Its top five holdings include Williams Companies (WMB), ONEOK (OKE), Enbridge (ENB), TC Energy (TRP), and Cheniere Energy (LNG), which account for over 40% of the ETF. 

The fund holds 26 stocks, and the top 10 constitute 66% of the ETF. MLPX offers a generous yield of 4.94%.