Clean Energy ETF Sees 92% Gain Under Biden, Oil & Gas ETF Up 46% Under Trump 2, Data Shows

A recent tweet from prominent energy investor John Arnold highlighted significant disparities in the performance of oil and gas versus clean energy exchange-traded funds (ETFs) during the Trump and Biden administrations. The data, shared on social media, indicates a substantial 92% increase for the Clean Energy ETF (ICLN) under President Biden's tenure, while the Oil and Gas E&P ETF (XOP) saw a 57% decline during the first Trump administration. According to Arnold's post, the XOP, representing oil and gas exploration and production companies, experienced a 57% decrease during the Trump presidency. Conversely, the ICLN, tracking clean energy companies, surged by 277% in the same period. The trend shifted under President Biden, with ICLN recording a 63% decrease, while XOP saw a 92% increase. The tweet also included a "Trump 2" projection, showing XOP down 11% and ICLN up 46%. The performance figures reflect the contrasting energy policies of the two administrations. The Trump administration generally favored deregulation and increased domestic fossil fuel production, aiming for "energy dominance." This approach included efforts to roll back environmental regulations and promote oil, gas, and coal. However, despite these policies, the XOP ETF experienced a significant downturn during his first term. The Biden administration, on the other hand, has prioritized climate action and the transition to clean energy, rejoining the Paris Agreement and setting ambitious goals for a carbon-free power sector by 2035. While these policies aim to accelerate clean energy adoption, the ICLN ETF experienced a notable decline under his presidency, suggesting market complexities beyond policy alone. The market's response to these policy shifts underscores the volatile nature of energy investments and the broader global energy transition.