Free Trial

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, it lacks when it comes to providing sector-specific exposure. For example, energy stocks are cyclical, but their stable, defensive posture is attractive to many investors.  

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.  

The fund has delivered a total return of 48% in the three years ending January 31, 2025. And if you go back longer than that, you’ll see a consistent double-digit rate of return. Plus, the fund delivers an annual dividend with a yield of approximately 3.6%. The 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
Current Price
$90.04
Consensus Rating
Moderate Buy
Ratings Breakdown
3 Buy Ratings, 4 Hold Ratings, 0 Sell Ratings.
Consensus Price Target
$90.04 (0.0% Downside)