Breaking down Energy Select Sector SPDR Fund: XLE

In my previous post: https://cenk-yildiran.com/2023/10/10/how-profitable-to-invest-in-energy-select-sector-spdr-fund-xle/ I showed you how profitable to invest in “Energy Select Sector SPDR Fund: XLE.”

In this post, you will be reading the ingredients of XLE.

Holdings in terms of individual companies:

As of 12 October 2023, XLE holds 23 different stocks, accounting for a market cap value of $181,664.05 million. Below are the stocks' names, ticker symbols, weights, and SIC codes.

Name	Ticker	Weight	SIC-codes
EXXON MOBIL CORP	XOM	21.9%	2911 - Petroleum Refining
CHEVRON CORP	CVX	18.4%	2911 - Petroleum Refining
EOG RESOURCES INC	EOG	4.8%	1311 - Crude Petroleum & Natural Gas
CONOCOPHILLIPS	COP	4.6%	2911 - Petroleum Refining
SCHLUMBERGER LTD	SLB	4.5%	2911 - Petroleum Refining
MARATHON PETROLEUM CORP	MPC	4.3%	2911 - Petroleum Refining
PIONEER NATURAL RESOURCES CO	PXD	4.1%	1311 - Crude Petroleum & Natural Gas
PHILLIPS 66	PSX	3.6%	2911 - Petroleum Refining
VALERO ENERGY CORP	VLO	3.3%	2911 - Petroleum Refining
HESS CORP	HES	3.2%	2911 - Petroleum Refining
WILLIAMS COS INC	WMB	3.1%	4922 - Natural Gas Transmission
OCCIDENTAL PETROLEUM CORP	OXY	3.1%	1311 - Crude Petroleum & Natural Gas
ONEOK INC	OKE	2.9%	4923 -Natural Gas Transmission & Distribution
HALLIBURTON CO	HAL	2.7%	1389 - Oil, Gas Field Services, NBC
BAKER HUGHES CO	BKR	2.6%	3533 - Oil & Gas Field Machinery & Equipment
KINDER MORGAN INC	KMI	2.4%	4922 - Natural Gas Transmission
DEVON ENERGY CORP	DVN	2.2%	1311 - Crude Petroleum & Natural Gas
DIAMONDBACK ENERGY INC	FANG	2.1%	1311 - Crude Petroleum & Natural Gas
COTERRA ENERGY INC	CTRA	1.6%	1311 - Crude Petroleum & Natural Gas
TARGA RESOURCES CORP	TRGP	1.4%	4922 - Natural Gas Transmission
MARATHON OIL CORP	MRO	1.2%	1311 - Crude Petroleum & Natural Gas
EQT CORP	EQT	1.1%	1311 - Crude Petroleum & Natural Gas
APA CORP	APA	0.9%	1311 - Crude Petroleum & Natural Gas

Exxon Mobile Corporation (XOM) is currently the most extensive weighted stock in the portfolio at 21.9%. The current price of XOM is $ 109.87; analysts calculate a fair value of $ 164.83 for XOM. This means there is almost a 50 % upside for the stock. This may explain why XOM has the most significant weight in the fund. Additionally, the dividend yield for XOM is 3.3%.

Chevron Corporation (CVX) is the second largest held stock in the fund. The current price of CVX is $ 164.06, and the fair value of the stock is $ 182.91. This means there is only a 10.3% upside for the stock. One thing to add is that CVX has a 3.7 % dividend yield.

Lastly, XLE has a dividend yield of 3.15 %. In 2022, it paid a total dividend of $ 3.22 per share. In 2023, it produced a dividend of $0.795347 on 20 March and 0.705843 on 20 June.

Holdings in terms of industry groups:

The holdings of XLE are mostly (63.7 %) invested in the industry group “Petroleum Refining,” which is a crucial sector of the energy industry responsible for processing crude oil into various refined products.

The second most-held industry group is “Crude Petroleum & Natural Gas” with 21.1 %. Crude Petroleum & Natural Gas are two of the world's most essential energy sources and raw materials.

The “Natural Gas Transmission” industry group is in third place with 6.9 %. Natural gas transmission is a crucial component of the natural gas supply chain that involves transporting natural gas from production fields and processing plants to distribution systems or end-users over long distances.

SIC-codes	Total Holdings
2911 - Petroleum Refining	63.7%
1311 - Crude Petroleum & Natural Gas	21.1%
4922 - Natural Gas Transmission	6.9%
4923 - Natural Gas Transmission & Distribution	2.9%
1389 - Oil, Gas Field Services, NBC	2.7%
3533 - Oil & Gas Field Machinery & Equipment	2.6%

Now, you have a better understanding of the XLE ETF.

Thanks for reading!

Disclaimer: This post is only for educational purposes and does not give any investing advice.

If you have liked this book, here is a book for you on ETF investing: