Energy holdings of some kind are a must, as energy is a massive, massive industry with a foothold in every developed nation … and in many emerging ones as well. Heck, the world has wars over oil, the technology used to extract and refine it continues to evolve, and it remains absolutely essential to everyday life.
That’s why a good buy-and-hold stock would be an energy stock like BP (BP). Of course, you sure didn’t want to be a BP shareholder during the Deepwater Horizon debacle … which is why an energy ETF is an even smarter way to play the space.
The best energy ETF is the Energy SPDR (XLE). It holds all the important names, with top holding ExxonMobil (XOM) taking up 15% of the fund, followed by Chevron (CVX) and Schlumberger (SLB), which just posted killer earnings.
Plus, this energy ETF pays a solid dividend just under 2%, is highly liquid and can be yours for a mere 0.18% in expenses. That makes the XLE a critical component of any long-term portfolio.