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

Core Insights - The State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is a passively managed ETF launched on June 19, 2006, aimed at providing broad exposure to the Energy - Exploration segment of the equity market [1] - The ETF has gained popularity among retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency, making it suitable for long-term investment [1] Fund Overview - XOP is sponsored by State Street Investment Management and has accumulated over $1.86 billion in assets, positioning it as one of the largest ETFs in the Energy - Exploration segment [3] - The ETF seeks 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 [4] Cost Structure - The annual operating expense ratio for XOP is 0.35%, making it one of the least expensive options in its category [5] - The ETF has a 12-month trailing dividend yield of 2.44% [5] Sector Exposure and Holdings - Approximately 99.6% of XOP's portfolio is allocated to the Energy sector, providing significant sector-specific exposure [6] - The top three holdings include Murphy Oil Corp (2.97%), CNX Resources Corp, and Range Resources Corp, with the top 10 holdings accounting for about 27.92% of total assets [7] Performance Metrics - As of November 11, 2025, XOP has gained about 1.08% year-to-date but is down approximately 3.87% over the past year [8] - The ETF has traded between $101.91 and $148.67 in the last 52 weeks, with a beta of 0.94 and a standard deviation of 28.49% over the trailing three-year period, indicating a higher risk profile [8] Alternatives - Other ETFs in the energy exploration space include Invesco Energy Exploration & Production ETF (PXE) and iShares U.S. Oil & Gas Exploration & Production ETF (IEO), with PXE having $70.88 million in assets and IEO having $443.42 million [11]