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Asset Class: Energy Sector
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Oldest ETF back tested: The Energy Select Sector SPDR® Fund (XLE)
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Correlation to U.S. Stock Market: 0.62
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Long-Term Performance: 7.98% CAGR
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S&P 500 Performance: 7.29% CAGR
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Back test timeframe: January 1999 – November 2023
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Number of ETFs available in this asset class: 29
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Number of ETFs in this asset class that are 10-years old or older: 18
XLE vs SPY: January 1999 – November 2023
XLE vs SPY: December 22, 1998 – December 8, 2023
The Deep Value ETF Accumulator rankings for the 18 oldest Energy sector ETFs:
The 5 top ranked Energy sector ETFs head-to-head comparisons:
IEO vs XLE vs PXE vs VDE vs IYE: June 2006 – November 2023
IEO vs XLE vs PXE vs VDE vs IYE: May 5, 2006 – December 8, 2023
Stated objectives of 5 top ranked Energy sector ETFs:
IEO – The iShares U.S. Oil & Gas Exploration & Production ETF seeks to track the investment results of an index composed of U.S. equities in the oil and gas exploration and production sector. Exposure to U.S. companies that are engaged in the exploration, production, and distribution of oil and gas. Targeted access to domestic oil and gas stocks. Use to express a sector view.
XLE – The Energy Select Sector SPDR® Fund seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Energy Select Sector Index (the “Index”). The Index seeks to provide an effective representation of the energy sector of the S&P 500 Index. Seeks to provide precise exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries. Allows investors to take strategic or tactical positions at a more targeted level than traditional style based investing.
PXE – The Invesco Energy Exploration & Production ETF (Fund) is based on the Dynamic Energy Exploration & Production Intellidex℠ Index (Index). The Fund will normally invest at least 90% of its total assets in the securities that comprise the Index. The Index thoroughly evaluates companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value. The Index is composed of securities of 30 U.S. companies involved in the exploration and production of natural resources used to produce energy. These companies are engaged principally in exploration, extraction and production of crude oil and natural gas from land-based or offshore wells. These companies include petroleum refineries that process the crude oil into finished products, such as gasoline and automotive lubricants, and companies involved in gathering and processing natural gas, and manufacturing natural gas liquid. The Fund and Index are rebalanced and reconstituted quarterly in February, May, August and November.
VDE – Vanguard Energy ETF. Seeks to track the performance of a benchmark index that measures the investment return of stocks in the energy sector.
Passively managed, using a full-replication strategy when possible and a sampling strategy if regulatory constraints dictate. Includes stocks of companies involved in the exploration and production of energy products such as oil, natural gas, and coal.
IYE – The iShares U.S. Energy ETF seeks to track the investment results of an index composed of U.S. equities in the energy sector. Exposure to U.S. companies that produce and distribute oil and gas. Targeted access to domestic energy stocks. Use to express a sector view.
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Respectfully yours, Micah McDonald, aka the Deep Value ETF Accumulator
Disclosure: We own shares of XLE and we intend to buy more shares in the future. I am not a professional investment advisor. Please perform your own due diligence or seek the advice of a Registered Investment Advisor before investing in any security mentioned in this article. This website contains affiliate links to Google AdSense.