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Profit Without Panic: 7 ETFs to Diversify Your Portfolio - 2 of 7

 
 

#2 - Energy Select Sector SPDR Fund (NYSEARCA:XLE)

While a fund like the VTI is exceptional at delivering broad market coverage, the Energy Select Sector SPDR Fund (NYSEARCA: XLE) gives you exposure to all areas of the oil sector. Integrated oil companies such as Exxon Mobil Corp. (NYSE: XOM) and Chevron Corp. (NYSE: CVX) make up nearly 40% of the fund’s weighting. However, you also get exposure to midstream companies and oil services companies.  

Energy stocks are cyclical, but their stable, defensive posture is attractive to many investors. The fund has delivered a total return of 48% over the past three years. And if you go back longer than that, you’ll see a consistent double-digit rate of return. Plus, XLE pays an annual dividend with a yield of approximately 3.6%. XLE has over $32 billion in assets under management and a low expense ratio of just 0.09%.  



About Energy Select Sector SPDR Fund

Energy Select Sector SPDR Fund (the Fund) seeks to provide investment results that correspond generally to the price and yield performance of the Energy Select Sector Index (the Index). The Index includes companies from the following industries oil, gas and consumable fuels, and energy equipment and services. More about Energy Select Sector SPDR Fund
Current Price
$87.43
Asset Class
Equity
Fund AUM
$31.55 billion
Expense Ratio
0.09%
6-Month Performance
0.98%
1-Year Performance
-0.84%