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XOP - ETF AI Analysis

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XOP

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

Rating:68Neutral
Price Target:
XOP, the SPDR S&P Oil & Gas Exploration & Production ETF, has a solid overall rating driven by strong, diversified energy producers like Matador Resources and ConocoPhillips, which benefit from healthy cash flow, solid balance sheets, and supportive earnings calls. Chord Energy and APA also add strength through good profitability, dividends, and effective cost and cash flow management. The main risk is that the fund is heavily tied to the oil and gas exploration and production sector, where commodity price swings and some holdings with higher leverage, cash flow issues, or bearish technical trends (such as VG and SM Energy) can weigh on performance.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered strong gains so far this year, showing solid momentum in its target segment.
Broad Mix of Energy Producers
The top holdings are spread across many different oil and gas exploration and production companies, reducing reliance on any single stock.
Generally Strong Top Holdings
Most of the largest positions have shown strong performance this year, helping support the fund’s overall returns.
Negative Factors
Highly Concentrated in Energy
With almost all assets in the energy sector, the fund is very sensitive to swings in oil and gas prices.
Limited Geographic Diversification
The ETF is almost entirely invested in U.S. companies, offering little exposure to energy markets in other regions.
Recent Short-Term Weakness
The fund has seen a weak one-month performance, which may signal higher short-term volatility for investors.

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

XOP Summary

XOP is an ETF that follows the S&P Oil & Gas Exploration & Production Select Industry Index, focusing on U.S. energy companies that search for, drill, and produce oil and gas. It holds a wide mix of firms such as Diamondback (FANG) and Coterra Energy (CTRA), and gives each stock a similar weight so you’re not relying on just one big name. Someone might invest in XOP to bet on the long-term demand for energy and to get diversified exposure to many oil and gas producers at once. A key risk is that it can rise or fall sharply with oil and gas prices and overall energy sector swings.
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 a pure U.S. oil and gas exploration and production play, with performance driven by a pack of mid-cap drillers rather than one dominant giant. Names like SM Energy, Matador Resources, Permian Resources, and Chord Energy have been rising over the past few months, giving the fund a solid tailwind as investors reward strong cash flow and disciplined drilling. Diamondback and Viper are also pulling their weight, while Murphy Oil and Coterra look a bit more mixed lately. With nearly everything tied to energy, the fund’s fortunes rise and fall with the commodity cycle.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Murphy Oil2.90%$96.25M$5.59B85.57%
68
Neutral
APA2.89%$96.02M$13.33B132.20%
73
Outperform
SM Energy2.84%$94.22M$6.90B23.30%
72
Outperform
Diamondback2.79%$92.53M$54.80B42.52%
81
Outperform
Viper Energy2.75%$91.11M$17.01B13.48%
69
Neutral
Chord Energy2.74%$90.98M$7.67B45.07%
76
Outperform
Matador Resources2.72%$90.21M$7.51B47.30%
82
Outperform
Coterra Energy2.70%$89.74M$25.46B30.91%
73
Outperform
HF Sinclair Corporation2.70%$89.67M$10.86B101.43%
68
Neutral
Permian Resources2.68%$88.90M$17.77B66.50%
81
Outperform

XOP Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
167.61
Positive
100DMA
150.32
Positive
200DMA
138.89
Positive
Market Momentum
MACD
1.28
Negative
RSI
61.37
Neutral
STOCH
96.42
Negative
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 169.90, equal to the 50-day MA of 167.61, and equal to the 200-day MA of 138.89, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 61.37 is Neutral, neither overbought nor oversold. The STOCH value of 96.42 is Negative, 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
$3.35B0.35%
68
Neutral
$9.97B0.09%
72
Outperform
$3.35B0.45%
71
Outperform
$2.13B0.77%
72
Outperform
$1.99B0.08%
72
Outperform
$1.73B0.38%
73
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
XOP
SPDR S&P Oil & Gas Exploration & Production ETF
178.21
67.89
61.54%
VDE
Vanguard Energy 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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