Should You Invest in the State Street Energy Select Sector SPDR ETF (XLE)?

Core Viewpoint - The State Street Energy Select Sector SPDR ETF (XLE) is a leading passively managed ETF that provides broad exposure to the Energy - Broad segment of the equity market, appealing to both retail and institutional investors due to its low costs and tax efficiency [1][3]. Group 1: ETF Overview - XLE was launched on December 16, 1998, and has amassed over $27.09 billion in assets, making it the largest ETF in the Energy - Broad segment [3]. - The ETF aims to match the performance of the Energy Select Sector Index, which includes companies in oil, gas, consumable fuels, and energy equipment & services [3]. Group 2: Costs and Performance - The annual operating expenses for XLE are 0.08%, making it the least expensive product in its category, with a 12-month trailing dividend yield of 3.22% [4]. - Year-to-date, XLE has increased by approximately 7.1%, and it has risen about 6.74% over the past year, trading between $38.22 and $47.065 in the last 52 weeks [7]. Group 3: Sector Exposure and Holdings - XLE has a 100% allocation in the Energy sector, with Exxon Mobil Corp (XOM) representing about 22.95% of total assets, followed by Chevron Corp (CVX) and Conocophillips (COP) [5]. - The top 10 holdings account for approximately 74.71% of total assets under management [6]. Group 4: Risk and Alternatives - XLE has a beta of 0.59 and a standard deviation of 21.78% over the trailing three-year period, indicating a higher risk profile compared to peers [7]. - The ETF holds a Zacks ETF Rank of 2 (Buy), suggesting it is a strong option for investors looking for exposure to the Energy ETFs segment [8].