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A Breakdown of XLE’s Market Capitalization by Subsector

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Breakdown in performance of XLE subsectors by market cap

The Energy Select Sector SPDR Fund (XLE) is primarily composed of large-cap stocks. Although performance based on market cap delineations was inconclusive last week, over the last 12 months, average returns for the firms with caps above $20 billion saw a loss of 16%, while those below the $20 billion threshold lost nearly twice as much, averaging -32%.

In general, large caps offered an average weekly return of -0.63%, while mid-cap firms offered an average weekly return of -0.81%. Among large caps, Williams Companies (WMB) offered the worst trailing five-day returns, while Cameron International (CAM) offered the best five-day weekly return. Among mid caps, FMC Technologies (FTI) fared well in terms of weekly returns, while ONEOK (OKE) posted weekly losses.

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In the next part of this series, we’ll analyze the performance of the stocks in these subsectors based on the growth in EBITDA (earnings before interest, taxes, depreciation, and amortization). Investors could consider investing in the iShares US Energy ETF (IYE) to obtain exposure to US energy stocks.

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