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XOP - ETF AI Analysis

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XOP

SPDR S&P Oil & Gas Exploration & Production ETF (XOP)

Rating:67Neutral
Price Target:
XOP, the SPDR S&P Oil & Gas Exploration & Production ETF, has a solid overall rating that reflects a mix of strong energy names and some more challenged holdings. Higher-quality positions like Phillips 66, Texas Pacific Land, and Expand Energy support the fund with strong financial performance, positive earnings commentary, and generally favorable trends, helping to anchor the ETF’s quality. However, weaker holdings such as Delek US Holdings and PBF Energy, which face financial and momentum challenges, along with risks like high valuations and volatility across several names, keep the fund from earning a higher rating and highlight the sector’s inherent risk.
Positive Factors
Strong Recent Performance
The ETF has delivered strong gains so far this year and over the past month, showing solid momentum in its strategy.
Top Holdings with Strong YTD Gains
Several of the largest positions, such as PBF Energy, Par Pacific Holdings, and Delek US Holdings, have posted strong year-to-date performance, helping drive the fund’s returns.
Focused Exposure to the Energy Sector
The fund’s heavy weighting in energy companies gives investors targeted exposure to a sector that has recently been performing well.
Negative Factors
High Sector Concentration
With most of its assets in the energy sector, the ETF is heavily exposed to swings in oil and gas markets, which can increase volatility.
Limited Geographic Diversification
The portfolio is overwhelmingly invested in U.S. companies, offering little protection if the U.S. energy market faces a downturn.
Moderate Expense Ratio
While not extremely high, the fund’s expense ratio is a noticeable cost that can slightly reduce long-term returns compared with cheaper alternatives.

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

XOP Summary

The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is a fund that follows the S&P Oil & Gas Exploration & Production Select Industry Index. It focuses on U.S. energy companies that search for, drill, and produce oil and gas. Well-known names in the fund include Valero Energy and Marathon Petroleum. Because the ETF spreads money fairly evenly across many energy firms, it offers a simple way to bet on the oil and gas sector for potential growth and diversification. However, it can be very volatile and will rise or fall with oil and gas prices and overall energy market conditions.
How much will it cost me?The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has an expense ratio of 0.35%, which means you’ll pay $3.50 per year for every $1,000 invested. This is slightly higher than average because it is a sector-focused ETF, which typically requires more active management compared to broad market index funds. However, it provides specialized exposure to the energy sector, particularly oil and gas companies.
What would affect this ETF?The XOP ETF could benefit from rising global energy demand and higher oil and gas prices, driven by economic growth or geopolitical tensions that disrupt supply chains. However, it may face challenges from regulatory changes targeting fossil fuels, advancements in renewable energy, or declining oil prices due to reduced demand or oversupply. Its focus on U.S.-based energy companies and balanced exposure across holdings provides diversification but makes it sensitive to domestic energy policies and market conditions.

XOP Top 10 Holdings

XOP is essentially a bet on U.S. oil and gas refiners and producers, with names like PBF Energy and Par Pacific powering recent gains as they ride improving margins and upbeat earnings. HF Sinclair and Marathon Petroleum add steady strength, helping keep the fund’s engine humming even when volatility picks up. On the flip side, Texas Pacific Land has been losing a bit of steam, with weaker momentum and valuation worries acting as a mild drag. Overall, the ETF is tightly focused on the U.S. energy patch, with performance driven by the ebb and flow of the oil market.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
PBF Energy3.48%$125.45M$7.29B150.04%
55
Neutral
Par Pacific Holdings3.22%$116.09M$3.88B145.37%
67
Neutral
Delek US Holdings3.14%$113.33M$3.87B175.97%
49
Neutral
HF Sinclair Corporation3.01%$108.54M$15.92B101.82%
68
Neutral
Marathon Petroleum2.83%$102.25M$90.28B78.69%
66
Neutral
Valero Energy2.83%$102.01M$89.82B110.66%
69
Neutral
Venture Global, Inc. Class A2.73%$98.33M$35.55B-15.49%
58
Neutral
Phillips 662.72%$98.19M$82.90B62.75%
73
Outperform
Texas Pacific Land2.71%$97.77M$28.93B21.84%
76
Outperform
Permian Resources2.59%$93.37M$17.88B41.31%
81
Outperform

XOP Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
164.11
Positive
100DMA
167.23
Positive
200DMA
149.59
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For XOP, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 164.06, equal to the 50-day MA of 164.11, and equal to the 200-day MA of 149.59, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for XOP.

XOP Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$3.59B0.35%
67
Neutral
$9.35B0.44%
65
Neutral
$3.74B0.45%
71
Outperform
$2.27B0.77%
73
Outperform
$2.01B0.08%
72
Outperform
$1.75B0.38%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XOP
SPDR S&P Oil & Gas Exploration & Production ETF
169.08
40.29
31.28%
IBB
iShares Biotechnology ETF
MLPX
Global X MLP & Energy Infrastructure ETF
MLPA
Global X MLP ETF
FENY
Fidelity MSCI Energy Index ETF
IYE
iShares U.S. 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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