With nearly $7.7 billion in assets, the XLE tracks the energy sector representatives of the S&P 500. As expected, that mandate results in a concentrated portfolio of just 43 different energy names with an average holding around $127 billion. And these aren’t junior explorers or wildcatters. No, we are talking about Exxon, Chevron and Occidental Petroleum (NYSE:OXY) — the big dogs of the U.S. energy sector.
While the XLE’s holdings are contained in many energy ETFs, the fund provides a unique way to capitalize on the growth in energy demand and production globally. Many of its constituents have their hands in production activities and reserves located all over the world, as well as refining and export interests.
The fund’s concentrated nature provides plenty of E&P muscle, all for only 0.18% in expenses.