Should You Invest in the SPDR S&P Oil & Gas Exploration & Production ETF (XOP)?

Core Insights - The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is a passively managed ETF launched on June 19, 2006, designed to provide broad exposure to the Energy - Exploration segment of the equity market [1] - XOP has gained popularity among retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency, making it suitable for long-term investors [1] Fund Overview - Sponsored by State Street Investment Management, XOP has amassed over $1.83 billion in assets, positioning it as one of the largest ETFs in the Energy - Exploration segment [3] - The ETF aims to match the performance of the S&P Oil & Gas Exploration & Production Select Industry Index, which represents the oil and gas exploration and production sub-industry of the S&P Total Markets Index [4] Cost Structure - XOP has an annual operating expense ratio of 0.35%, making it one of the least expensive options in its category [5] - The ETF offers a 12-month trailing dividend yield of 2.49% [5] Sector Exposure and Holdings - The ETF has a significant allocation in the Energy sector, comprising approximately 98.4% of its portfolio [6] - The top three holdings include Hf Sinclair Corp (3.59%), Chevron Corp, and Apa Corp, with the top 10 holdings accounting for about 31.82% of total assets [6][7] Performance Metrics - As of September 10, 2025, XOP has experienced a year-to-date loss of about 1.38% and a one-year increase of approximately 3.06% [8] - The fund has traded between $101.91 and $148.67 over the past 52 weeks, with a beta of 1.02 and a standard deviation of 30.05% for the trailing three-year period, indicating a high-risk profile [8] Investment Alternatives - XOP carries a Zacks ETF Rank of 3 (Hold), suggesting it is a reasonable option for investors seeking exposure to the Energy ETFs market [10] - Alternatives include Invesco Energy Exploration & Production ETF (PXE) with $71.03 million in assets and iShares U.S. Oil & Gas Exploration & Production ETF (IEO) with $468.34 million in assets, each with different expense ratios [11]