Energy Funds Tumble Along With Oil in Week

This week, funds that trade energy stocks and commodities stalled. Both crude oil and natural gas pulled back from record-high prices, sucker-punching some of the highflying oil and gas company stocks.

Excluding the inverse funds that short the sector, the average energy and environmentally friendly fund we track plummeted by 4.40% for the five trading days ending Thursday, July 17. Over that period, oil was down 8.76%, while natural gas declined 3.55%.

Please note that starting this week, the environmentally friendly fund sector will be included with the energy and natural resource funds. As many of these funds focus on alternative energy sources, the energy sector is a better fit than the religious and socially responsible group.

Back to energy prices: With anemic growth on the broad economic front, cash-strapped consumers are driving less and conserving more, bolstering inventory levels.

In addition, action in Washington to open up drilling in the outer continental shelf, as well as the prospect of tension-diffusing talks between the U.S. and Iran, helped to ease pressure on the price of oil.

So much for the underlying causes. Now, here are the specifics about the funds in the sector.

Four of the five best-performing funds this week were inverse energy funds, which are designed to go up in value as the underlying shares fall. The first two funds, the E-rated UltraShort Oil & Gas ProShares(DUG - Cramer's Take - Stockpickr) and Rydex Inverse 2X S&P Select Sector Energy ETF(REC - Cramer's Take - Stockpickr), used 200% negative leverage to soar 15.97% and 14.13%, respectively.

S&P Energy Index members falling sharply include Cabot Oil & Gas(COG - Cramer's Take - Stockpickr), off 15.98%; Hess(HES - Cramer's Take - Stockpickr), off 15.12%; and Consol Energy(CNX - Cramer's Take - Stockpickr), off 13.91% for the period under review.

The best-performing fund of the group that didn't short the sector is the D+ rated PowerShares WilderHill Clean Energy Portfolio(PBW - Cramer's Take - Stockpickr), up 6.11%. Just over one-third of the fund invested in alternative energy companies.

The holdings contributing to the gain include 24.28% from Fuel Systems Solutions(FSYS - Cramer's Take - Stockpickr), the fund's largest holding, 23.94% from Echelon Corp(ELON - Cramer's Take - Stockpickr), 19.39% from VeraSun Energy(VSE - Cramer's Take - Stockpickr), and 15.31% from Evergreen Solar(ESLR - Cramer's Take - Stockpickr).

Best-Performing Energy & Environmentally Friendly Funds for the Week Ending Thursday July 17
Fund	Ticker	Rating	Fund Type	1 Week Total Return
UltraShort Oil & Gas ProShares	DUG	E	ETF	15.97%
Rydex Inverse 2X S&P Select Sector Energy ETF	REC	U	ETF	14.13%
ProFunds Short Oil & Gas ProFund	SNPIX	U	Open-End	8.09%
Powershares WilderHill Clean Energy Portfolio	PBW	D+	ETF	6.11%
Short Oil & Gas ProShares	DDG	U	ETF	6.00%
Fidelity Select Paper & Forest Products Portfolio	FSPFX	E	Open-End	5.78%
First Trust NASDAQ Clean Edge US Liquid Series Index Fund	QCLN	E-	ETF	5.43%
Market Vectors Solar Energy ETF	KWT	U	ETF	5.19%
Kayne Anderson Energy Development Co	KED	U	Closed-End	4.05%
Claymore/MAC Global Solar Energy Index ETF	TAN	U	ETF	3.51%
Source: Bloomberg & TheStreet.com Ratings

The worst-performing energy sector fund this week is the iPath Dow Jones-AIG Natural Gas Total Return Sub-Index ETN(GAZ - Cramer's Take - Stockpickr) cratering 14.74%. The fund is designed to track the Dow Jones-AIG Energy Sub-Index.

Losing almost as much, at -14.35%, was the Ultra Oil & Gas ProShares(DIG - Cramer's Take - Stockpickr).

This fund employs 200% leverage to top holdings Exxon Mobil(XOM - Cramer's Take - Stockpickr), 20.4% of assets; Chevron(CVX - Cramer's Take - Stockpickr), 8.1% of assets; and ConocoPhillips(COP - Cramer's Take - Stockpickr), 5.1% of assets.

Worst-Performing Energy & Environmentally Friendly Funds for the Week Ending Thursday July 17
Fund	Ticker	Rating	Fund Type	1 Week Total Return
iPath Dow Jones-AIG Natural Gas Tot Retn Sub-Index ETN	GAZ	U	ETN	-14.74%
Ultra Oil & Gas ProShares	DIG	A-	ETF	-14.35%
United States Natural Gas Fund LP	UNG	C	ETF	-14.23%
ProFunds Oil & Gas UltraSector ProFund	ENPIX	B	Open-End	-11.47%
iPath Dow Jones AIG Energy Total Return Sub-Index ETN	JJE	U	ETN	-10.64%
SPDR S&P Oil & Gas Exploration & Production ETF	XOP	A-	ETF	-10.51%
PowerShares Dynamic Energy Expl & Prod Portfolio	PXE	B+	ETF	-10.29%
iShares Dow Jones US Oil & Gas Expl & Prod Index Fund	IEO	B+	ETF	-9.92%
Rydex 2X S&P Select Sector Energy ETF	REA	U	ETF	-9.56%
First Trust ISE-Revere Natural Gas Index Fund	FCG	C+	ETF	-9.48%
Source: Bloomberg & TheStreet.com Ratings

For an explanation of our ratings, click here.

1 What would best describe your stance heading into the coming week of trading? Bullish Bearish Neutral 2 Which of these sectors do you think is set to move up in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities 3 Which of these sectors do you think is set to move down in the coming week? --Choose One--Aerospace and DefenseAirlinesAutomobilesBeverages and Food ProductsBiotechnologyCommercial BanksComputers and PeripheralsConsumer NondurablesEnergy Equipment & ServicesHMOs and HospitalsHomebuildingInsuranceIntegrated OilInternet, Software ServicesInvestment Bankers and BrokersMediaMultiline RetailPharmaceuticalsPrecious MetalsSemis, Semi EquipmentTelecom EquipmentTobacco and AlcoholWireless CommunicationsUtilities View the results without voting