Advertisement
investing

Energy Select Sector SPDR ETF

This low-cost fund lets you own all of the energy stocks in the S&P 500.

The Energy Select Sector SPDR (symbol XLE), the oldest exchange-traded fund to focus on the energy business, remains one of the best for providing you with a diversified package of stocks in the oil, coal and natural gas industries. And with nearly $12 billion in assets, it's one of the largest ETFs.

Advertisement - Article continues below

Energy SPDR is one of nine Select Sector SPDR ETFs. Combined, the funds contain all 500 stocks in Standard & Poor's 500-stock index, with each ETF corresponding to one of the nine business sectors represented in the index. As a result, all of the firms in the Sector SPDR ETFs are based in the U.S. However, because most of Energy Select's companies, led by ExxonMobil, have multinational operations, the ETF offers some global exposure (its smallest holding in mid April was Helmerich & Payne, a contract driller). The only time a change is made to a portfolio is when a company is added to or dropped from the S&P 500.

Energy SPDR is a favorite of professional investors because of its high liquidity. More than 15 million shares trade daily, on average, and the bid-ask spread (the difference between the highest price a buyer is willing to pay for a share of the ETF and the lowest price for which a seller is willing to sell it) is typically a penny a share. Moreover, if you want to bet against the energy sector, the ETF is easy to sell short. Individual investors love Energy SPDR for its low operating cost, just 0.2% a year.

Advertisement

Most Popular

What Are the Income Tax Brackets for 2020 vs. 2019?
tax brackets

What Are the Income Tax Brackets for 2020 vs. 2019?

The IRS unveiled the 2020 tax brackets, and it's never too early to start planning to minimize your future tax bill.
June 20, 2020
Tax Changes and Key Amounts for the 2020 Tax Year
tax law

Tax Changes and Key Amounts for the 2020 Tax Year

Americans are facing a long list of tax changes for the 2020 tax year...and it's never too early to start thinking about next year's return.
June 22, 2020
10 Tax Breaks for the Middle Class
tax deductions

10 Tax Breaks for the Middle Class

Tax breaks aren't just for the rich. There are plenty of them that are only available to middle- and low-income Americans.
June 30, 2020

Recommended

17 Wonderful Work-From Home Stocks
stocks

17 Wonderful Work-From Home Stocks

Is the run in work-from-home stocks over? The pros don't think so. These 17 "WFH" stocks appear poised to continue climbing on the longer-term remote-…
July 1, 2020
Cash In With This Gaming ETF
Technology

Cash In With This Gaming ETF

Cash in on the video gaming craze with this fund.
July 1, 2020
Inside the New Work From Home ETF (WFH)
ETFs

Inside the New Work From Home ETF (WFH)

The Direxion Work From Home ETF (WFH) puts investors in touch with dozens of companies benefiting from the suddenly accelerating trend of remote work.
June 25, 2020
5 High-Yield ETFs to Buy
Real Estate Vanguard ETF (VNQ)

5 High-Yield ETFs to Buy

For investors committed to generating income, these five high-yield ETFs could be worth including in your buy-and-hold portfolio.
June 17, 2020