The case for having Big Oil in your 401(k) or IRA

Energy companies represent a significant portion of the S&P 500 and other broad market index funds that commonly form the basis of 401(k) and IRA portfolios. As of 2026, the energy sector comprises approximately 4 to 5 percent of major U.S. stock indices. Investors holding diversified index funds in retirement accounts have indirect exposure to oil, natural gas, and related companies through standard market allocations.

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