Average Daily Volume
19.26M
Fund Overview
The Energy Select Sector SPDR Fund (XLE) is an exchange-traded fund that seeks to provide investment results that correspond generally to the price and yield performance of the Energy Select Sector Index. This index includes companies from the oil, gas, and consumable fuels, and energy equipment and services industries. XLE is one of the most widely traded ETFs in the energy sector, offering investors exposure to major energy companies such as Exxon Mobil, Chevron, and ConocoPhillips. The fund is designed for investors looking to gain broad exposure to the energy sector without having to buy individual stocks.
- Asset Class
-
Equity
- Industry
-
Broad Energy
- Annual Dividend Rate
-
- Smart Beta
-
No
- Leveraged / Inverse
-
N/A / No
- Dividend Quality - Yield
-
- 3.02 %
- Currency Hedged
-
No
- Portfolio Turnover
-
19 %
- Dividend Date
-
Why Invest in the XLE ETF?
Potential Benefits
- Provides concentrated exposure to the U.S. energy sector, including major integrated oil and gas companies.
- Highly liquid with tight bid-ask spreads, making it easy to trade.
- Low expense ratio compared to actively managed energy funds.
- Offers potential for capital appreciation and dividend income from energy sector companies.
- Diversified holdings reduce single-stock risk while maintaining sector focus.
Potential Risks
- Highly sensitive to fluctuations in oil and gas prices, which can be volatile.
- Concentration risk as the fund is heavily weighted towards a few large-cap energy companies.
- Regulatory and environmental policies can significantly impact energy sector performance.
- Geopolitical risks in oil-producing regions can affect the sector's stability.
RSI data unavailable or insufficient history.
Monthly Returns (%)
| Year |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
| 2026 |
+14.2%
|
+9.5%
|
+10.3%
|
-2.6%
|
-5.6%
|
-5.0%
|
+12.1%
|
+7.4%
|
-3.3%
|
+2.1%
|
-
|
-
|
| 2025 |
+2.3%
|
+3.8%
|
+3.5%
|
-13.9%
|
+1.3%
|
+4.9%
|
+2.8%
|
+3.6%
|
-0.3%
|
-1.4%
|
+2.6%
|
-0.3%
|
| 2024 |
-0.5%
|
+3.3%
|
+10.5%
|
-0.9%
|
-0.3%
|
-1.4%
|
+2.3%
|
-2.1%
|
-3.0%
|
+0.9%
|
+7.8%
|
-9.6%
|
| 2023 |
+2.8%
|
-6.9%
|
0.0%
|
+2.8%
|
-10.0%
|
+6.9%
|
+7.8%
|
+1.6%
|
+2.4%
|
-5.8%
|
-0.7%
|
+0.1%
|
| 2022 |
+18.8%
|
+7.1%
|
+9.3%
|
-1.7%
|
+16.0%
|
-17.1%
|
+9.7%
|
+2.7%
|
-9.6%
|
+25.0%
|
+1.3%
|
-3.0%
|
| 2021 |
+3.7%
|
+22.5%
|
+3.0%
|
+0.7%
|
+5.7%
|
+4.2%
|
-8.3%
|
-2.0%
|
+9.0%
|
+10.3%
|
-5.0%
|
+3.0%
|
| 2020 |
-11.0%
|
-15.3%
|
-34.3%
|
+30.8%
|
+2.0%
|
-1.1%
|
-4.8%
|
-1.1%
|
-14.6%
|
-4.1%
|
+28.0%
|
+4.5%
|
| 2019 |
+11.2%
|
+2.3%
|
+2.1%
|
0.0%
|
-11.1%
|
+9.4%
|
-1.6%
|
-8.3%
|
+3.9%
|
-2.1%
|
+1.6%
|
+6.0%
|
| 2018 |
+3.6%
|
-10.8%
|
+1.7%
|
+9.5%
|
+3.0%
|
+0.6%
|
+1.6%
|
-3.5%
|
+2.4%
|
-11.3%
|
-1.6%
|
-12.4%
|
| 2017 |
-3.2%
|
-2.1%
|
-1.5%
|
-2.9%
|
-3.5%
|
-0.1%
|
+2.6%
|
-5.5%
|
+10.2%
|
-0.8%
|
+1.8%
|
+5.3%
|
< -5%
-5% to -2%
-2% to 0%
0%
0% to +2%
+2% to +5%
> +5%
Top Holdings (by weight)
| Symbol |
Company Name |
Weight |
|
XOM
|
EXXON MOBIL CORP |
23.5 % |
|
CVX
|
CHEVRON CORP |
15.9 % |
|
COP
|
CONOCOPHILLIPS |
7.6 % |
|
WMB
|
WILLIAMS COMPANIES INC |
4.8 % |
|
EOG
|
EOG RESOURCES INC |
4.4 % |
|
OKE
|
ONEOK INC |
3.9 % |
|
KMI
|
KINDER MORGAN INC CLASS P |
3.8 % |
|
SLB
|
SCHLUMBERGER LTD |
3.8 % |
|
PSX
|
PHILLIPS 66 |
3.2 % |
|
MPC
|
MARATHON PETROLEUM CORP |
3.1 % |
Top 10 holdings shown, out of 25 total holdings.
Related ETFs: XLE vs Peers
Comparison highlights key differences on cost, coverage, and focus within sector ETFs.
Investment Strategy
XLE tracks the Energy Select Sector Index, which is a market-cap-weighted index of energy companies within the S&P 500. The index includes firms engaged in oil, gas, and consumable fuels, as well as energy equipment and services. The fund holds common stocks of these companies and aims to replicate the index's performance. XLE is rebalanced quarterly to maintain alignment with the index's composition. The fund does not use leverage or derivatives, opting for physical replication of its benchmark.
Frequently Asked Questions
What companies are included in XLE?
XLE holds major U.S. energy companies such as Exxon Mobil, Chevron, ConocoPhillips, and Schlumberger, focusing on oil, gas, and energy services firms.
Is XLE a good long-term investment?
XLE can be part of a long-term portfolio for investors bullish on the energy sector, but its performance is tied to volatile oil prices, requiring careful consideration of market cycles.
How does XLE differ from crude oil ETFs?
XLE invests in energy company stocks, which are influenced by corporate performance and oil prices. Crude oil ETFs track commodity prices directly, often through futures contracts.
Does XLE pay dividends?
Yes, XLE pays dividends from the underlying energy companies, many of which have historically offered attractive dividend yields.
Industry Overview
The Energy Select Sector SPDR Fund (XLE) provides exposure to the energy sector, which includes companies involved in oil, gas, and consumable fuels, as well as energy equipment and services. The energy sector is cyclical and heavily influenced by commodity prices, global demand, and geopolitical factors. Investing in XLE allows investors to participate in the performance of major energy companies that are integral to global energy production and distribution. The sector often benefits from rising oil prices but can be volatile during periods of oversupply or reduced demand.
Alternative Comparison
Compared to VDE (Vanguard Energy ETF), XLE has a slightly lower expense ratio and higher liquidity, making it more attractive for active traders. Unlike IYE (iShares U.S. Energy ETF), which includes a broader range of energy-related companies, XLE focuses specifically on S&P 500 energy constituents, offering more concentrated exposure to large-cap energy firms. XLE also differs from OIH (VanEck Oil Services ETF), which targets oil services companies rather than integrated energy producers.
Issuer Overview
XLE is issued by State Street Global Advisors (SSGA), one of the largest ETF providers globally. SSGA is known for its SPDR ETF series, which includes sector-specific and broad-market funds. The firm emphasizes low-cost, transparent, and liquid investment products, making XLE a popular choice for energy sector exposure.
Conclusion
XLE is a well-established ETF offering targeted exposure to the U.S. energy sector. Its low cost, liquidity, and focus on large-cap energy companies make it a core holding for investors bullish on oil and gas. However, investors should be aware of the sector's inherent volatility and sensitivity to commodity prices. For those seeking diversified energy exposure without stock-picking, XLE remains a compelling option.
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