Energy Select Sector SPDR Fund (XLE) aims to provide before-expenses investment results that correspond with the price and yield performance of the Energy Select Sector Index companies. The fund follows a replication strategy and offers exposure to the United States energy sector and can be used as a tactical overlay for investors looking for exposure when oil prices show promise.
Oil prices rose on Friday on OPEC’s supply cut signals. Brent rose 4.4% for the week, and the West Texas Intermediate was set to rise 2.5%. Saudi Arabia signaled that OPEC could cut outputs. The United Arab Emirates also stated that the country was aligned with Saudi Arabia’s plans regarding the crude market.
German bank Commerzbank stated, “The impression remains that Saudi Arabia is not willing to tolerate any price slide below $90. Speculators could view this as an invitation to bet on further price rises without the need to fear any more pronounced price declines.”
The ETF has gained 68% over the past year, 49.3% year-to-date, and 17.4% over the past six months, compared with the broader SPDR S&P 500 ETF Trust (SPY) 10%, 14.7%, and 7.2% decline over the same periods, respectively. The ETF closed the last trading session at $82.84. XLE has a five-year monthly beta of 1.58.
Here are the factors that could affect XLE’s performance in the near term:
Steady Fund Stats
As of August 26, XLE has $38.55 billion in assets under management and a NAV of $82.83. Its gross expense ratio of 0.10% is significantly lower than the category average of 0.46%. The fund has a net flow of $194.29 million over the past year and $287.89 million over the past month.
Top Holdings
TOP 10 STOCKS FOR THE YEAR AHEAD
As of August 26, the fund’s top holdings include Exxon Mobil Corporation (XOM) with a 22.66% weight, Chevron Corporation (CVX) with a 20.95% weight, ConocoPhillips (COP) with a 4.89% weight, Occidental Petroleum Corporation (OXY) with a 4.74% weight, and EOG Resources, Inc. (EOG) with a 4.39% weight.
Attractive Dividend
XLE’s annual dividend of $2.16 yields 3.75% on prevailing prices. Its dividend payouts have increased at a 9.5% CAGR over the past three years and a…
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