After months of strength, oil prices are exhibiting short-term weaknesses, with China imposing additional COVID-19 lockdowns. Analysts are concerned that reduced crude demand could meet with an oversupplied market in the near term.
However, oil stocks are showing a completely different scenario. The Energy Select Sector SPDR Fund (XLE) aims to provide before-expenses investment results that correspond with the price and yield performance of the Energy Select Sector Index companies. The fund follows a replication strategy and offers exposure to the U.S. energy sector.
The ETF has gained 65.3% over the past year, 65.5% year-to-date, and 10.9% over the past three months, compared with the broader SPDR S&P 500 ETF Trust’s (SPY) 12.3%, 15.3%, and 0.7% declines over the same periods, respectively. The ETF closed the last trading session at $91.87. XLE has a five-year beta of 1.57.
Here are the factors that could affect XLE’s performance in the near term:
Fund Stats
As of November 25, XLE has…
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