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  • Mark December 2018
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9 of best energy etf

edited December 2018 in Fund Discussions
https://money.usnews.com/investing/funds/slideshows/9-of-the-best-energy-etfs-to-watch?src=usn_invested_nl


These affordable funds give investors many options to tap into the potential for profits
. Energy Select Sector SPDR Fund (ticker: XLE). XLE is the largest energy sector fund as measured by assets under management, with about $15.5 billion in market value at present. It's a simple way to play the sector, and a very liquid ETF that is reasonably priced, with an expense ratio of just 0.13 percent, or $13 annually for every $10,000 invested.

It’s worth noting, however, that the fund is not very diversified. With 30 holdings and roughly 40 percent of the entire portfolio allocated to mega-caps Exxon Mobil Corp. (XOM) and Chevron Corp. (CVX), one big move in either of these stocks can really affect the fund. Still, the fund is popular and widely held.

2. Invesco S&P 500 Equal Weight Energy ETF (RYE). If you don't like putting all your eggs in one basket, you can avoid the overreliance on Exxon and Chevron with this fund. The RYE similarly has about 30 holdings spanning the largest and most influential energy stocks, but uses an equal-weight strategy and rebalancing to ensure each position represents about 3 percent of the portfolio.

That adds diversification, but many large-cap energy stocks on this list like exploration player Occidental Petroleum Corp. (OXY) or oilfield service company Baker Hughes (BHGE) are in many ways subject to the same industry pressures and may not necessarily differ tremendously in their performance. – Jeff Reeves


I likely will add energy etf soon dca or buy more of PBA

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