From 24/7 Wall St. · Omor Ibne Ehsan · · 50s
XLE ETF Holds 91% Oil and Gas
XLE ETF's oil-heavy holdings mean investors may own less energy than they think.
In brief
XLE ETF's oil-heavy holdings mean investors may own less energy than they think. XLE ETF is 91% oil and gas, so investors buying 'energy' may own less than they expect. Originally reported by 24/7 Wall St..
XLE ETF Basics
XLE is the default energy fund for investors.
XLE's Oil Focus
XLE holds 91% oil and gas stocks with Exxon at 23% and Chevron at 16%.
Excluded Businesses
Utilities and solar wind companies are excluded from XLE.
XLE's Performance
XLE up 46% year to date as oil prices rise.
XLE's Structure
XLE focuses on large-cap fossil fuels with no renewable exposure.
XLE's Risks
XLE's value tied to oil prices with limited renewable exposure.
The takeaway
XLE ETF is 91% oil and gas, so investors buying 'energy' may own less than they expect.
