The Energy Sector SPDR (XLE)’s 43 holdings are presented below, ranked by exposure.
Among these positions, Exxon Mobil (XOM), Chevron (CVX), Kinder Morgan (KMI), and EOG Resources (EOG) rank among the top five securities. The top five holdings in XLE account for 45% of its market cap, making it a very concentrated ETF. This is why the weighted average market cap of the ETF is $121 billion, while the mean is $36.4 billion and the median is $18.4 billion. Exxon (XOM), a $400 billion-market-cap Goliath, makes up 16.3% of the security, driving the weighted average market cap and mean higher.
You should note that this market-weighted index ETF is highly sensitive to changes in the performance of these top five securities. In the next part of this series, we’ll analyze XLE’s metrics and explore the performance of some of its key holdings.