3 Funds to Cash In on an Oil Boom

Energy funds remove the risk of individual stock picks

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3 Funds to Cash In on an Oil Boom

Energy SPDR

StateStreetSPDR185 3 Funds to Cash In on an Oil BoomAssets: $8 billion
YTD Returns: 17% vs. 18% for the S&P 500
Gross Expenses: 0.18%, or $18 annually on every $10,000 invested
Dividend Yield: 2%

The biggest energy ETF by far is the Energy SPDR (XLE) fund, which boasts $8 billion in assets.

Top holdings include Exxon Mobil (XOM), Chevron (CVX) and Schlumberger (SLB), with these three plays making up more than a third of the entire asset allocation. Sector-wise, the fund is about 79% in direct oil and gas plays, which include integrated oil stocks like XOM, and roughly 21% in energy equipment and service stocks like SLB.

The yield in this fund is slightly higher and the expenses slightly lower than its competitors, making it a top fund in the energy ETF space for good reason.


Article printed from InvestorPlace Media, http://investorplace.com/2013/09/3-funds-to-cash-in-on-an-oil-boom/.

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