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XLE - ETF AI Analysis

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XLE

Energy Select Sector SPDR Fund (XLE)

Rating:74Outperform
Price Target:
XLE, the Energy Select Sector SPDR Fund, earns a solid overall rating thanks to large positions in strong, diversified energy leaders like Exxon Mobil and Chevron, which benefit from healthy financials, strategic growth initiatives, and supportive earnings call commentary. Additional support comes from well-run producers and infrastructure names such as ConocoPhillips, EOG Resources, Schlumberger, and Williams, which show solid cash flow, reasonable valuations, and generally positive outlooks. The main risk is that the fund is heavily concentrated in the energy sector, so it remains sensitive to energy prices and industry-specific challenges, and some holdings like Valero, Marathon Petroleum, and Kinder Morgan face issues such as high leverage, weaker momentum, or valuation concerns that modestly weigh on the rating.
Positive Factors
Strong Recent Performance
The ETF has shown solid gains over the past month, three months, and year-to-date, indicating positive recent momentum in the energy sector.
Leading Energy Companies in Top Holdings
The largest positions, including major energy firms like Exxon Mobil and Chevron, have delivered generally strong year-to-date results that support the fund’s overall performance.
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of the returns generated by the portfolio.
Negative Factors
High Sector Concentration
Almost all of the ETF’s assets are invested in the energy sector, making it very sensitive to downturns in oil and gas markets.
Heavy Reliance on a Few Stocks
A large share of the fund is concentrated in just two companies, Exxon Mobil and Chevron, increasing the impact that any weakness in these stocks could have on the ETF.
Limited Geographic Diversification
With nearly all holdings based in the United States, the fund offers little exposure to energy companies in other regions, which may reduce diversification benefits.

XLE vs. SPDR S&P 500 ETF (SPY)

XLE Summary

The Energy Select Sector SPDR Fund (XLE) is an ETF that tracks the S&P Energy Select Sector Index, focusing on large U.S. energy companies. It mainly holds big names like Exxon Mobil and Chevron, which are involved in oil, gas, and related energy services. Investors might consider XLE if they want simple, one-click exposure to the energy sector for potential growth when energy prices rise, plus possible dividend income. However, this fund is heavily tied to the energy market, so its price can swing a lot with changes in oil and gas prices and overall market conditions.
How much will it cost me?The Energy Select Sector SPDR Fund (XLE) has an expense ratio of 0.08%, which means you’ll pay $0.80 per year for every $1,000 invested. This is lower than average because XLE is a passively managed ETF that tracks the S&P Energy Select Sector Index, keeping costs down.
What would affect this ETF?The Energy Select Sector SPDR Fund (XLE) could benefit from rising energy prices, increased demand for oil and gas, and advancements in renewable energy technologies, which align with its focus on large U.S. energy companies like Exxon Mobil and Chevron. However, it may face challenges from regulatory changes targeting fossil fuels, economic slowdowns reducing energy consumption, or volatility in global energy markets. Its heavy reliance on the U.S. energy sector makes it sensitive to domestic policy shifts and geopolitical events.

XLE Top 10 Holdings

XLE is riding on the broad shoulders of Big Oil, with Exxon Mobil and Chevron doing most of the heavy lifting as their shares keep climbing on solid cash flows and upbeat earnings. ConocoPhillips and EOG Resources add more fuel to the rally, benefiting from rising production and steady demand. Refiners like Valero and Marathon Petroleum are also running hot, giving the fund an extra boost. A few names, such as Schlumberger and Williams, are more mixed lately, but this is still very much a U.S.-focused, oil-and-gas story with heavy concentration in a handful of giants.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Exxon Mobil23.10%$9.84B$669.56B54.01%
74
Outperform
Chevron17.34%$7.39B$397.02B38.87%
71
Outperform
Conocophillips7.27%$3.10B$159.54B51.26%
78
Outperform
EOG Resources4.22%$1.80B$76.53B29.03%
78
Outperform
Schlumberger4.13%$1.76B$73.93B42.15%
75
Outperform
Williams Co4.12%$1.76B$88.05B31.94%
76
Outperform
Valero Energy3.99%$1.70B$72.99B133.16%
69
Neutral
Phillips 663.91%$1.67B$70.62B78.33%
73
Outperform
Marathon Petroleum3.87%$1.65B$71.25B99.66%
66
Neutral
Kinder Morgan3.52%$1.50B$73.35B30.37%
68
Neutral

XLE Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
55.32
Positive
100DMA
50.16
Positive
200DMA
46.50
Positive
Market Momentum
MACD
1.62
Positive
RSI
56.29
Neutral
STOCH
37.36
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XLE, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 58.83, equal to the 50-day MA of 55.32, and equal to the 200-day MA of 46.50, indicating a bullish trend. The MACD of 1.62 indicates Positive momentum. The RSI at 56.29 is Neutral, neither overbought nor oversold. The STOCH value of 37.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XLE.

XLE Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$41.76B0.08%
74
Outperform
$106.32B0.09%
74
Outperform
$85.59B0.08%
76
Outperform
$48.56B0.08%
72
Outperform
$12.05B1.01%
79
Outperform
$10.46B0.09%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XLE
Energy Select Sector SPDR Fund
59.25
21.34
56.29%
VGT
Vanguard Information Technology ETF
XLK
Technology Select Sector SPDR Fund
XLF
Financial Select Sector SPDR Fund
AMLP
Alerian MLP ETF
VDE
Vanguard Energy ETF
Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
DisclaimerThis AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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