Beware of These 3 Funds – You May Be VERY Overweight In XOM Stock

Odds are you already own plenty of Exxon shares

    View All  
Beware of These 3 Funds – You May Be VERY Overweight In XOM Stock

Exxon Mobil (XOM) is a tour de force, with energy assets spanning the globe. And XOM stock is one of the largest oil stocks on the planet. Even with its recent missteps on the production front, XOM still churns out tons of oil, natural gas and profits for its shareholders.

ExxonMobilLogo Beware of These 3 Funds   You May Be VERY Overweight In XOM StockOver the long haul, XOM stock has certainly earned its $435 billion market cap.

However, that hefty market cap and size can be a bit of a problem for investors. XOM stock is found everywhere; it’s the top one or two holdings in almost every large-cap U.S. stock mutual fund or exchange-traded fund (ETF) on the planet. While that in of itself isn’t’t too much of an issue, it can be a big problem if investors own several different funds or own XOM stock individually in addition to ETFs or mutual funds.

Simply put, too much of your portfolio’s overall returns may be riding on the performance of XOM stock. A prolonged lull in Exxon shares has the very real possibility of holding your portfolio down. And despite long-term gains, XOM stock has underperformed many of its energy peers in the past … as it did in 2013.

The lesson: Investors in these four funds may want to think about avoiding adding additional XOM stock to their portfolios.


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/xom-stock-iye-jkf-vti/.

©2014 InvestorPlace Media, LLC

Comments are currently unavailable. Please check back soon.