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US Economy Boosts XLE Subsectors in the Week Ended August 28

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Hedge fund benchmark indices post losses

As the following table illustrates, the Morningstar Long/Short Commodity index posted a year-to-date (or YTD) return of 1.53%. In contrast, its Long-Only Commodity Index posted a YTD loss of 14.05%.

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Energy ETFs rallied in the week ended August 28

As shown in the table below, energy ETFs such as the Energy Select Sector SPDR ETF (XLE) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) posted weekly gains last week.

XLE subsectors posted gains, led by oil and gas equipment and services

As the table below shows, the oil and gas equipment and services subsector posted weekly gains of 18.56%, followed by the oil drilling subsector and the exploration and production subsector. The improving prospects for US economic growth caused crude oil to experience one of its biggest two-day rallies in more than five years. The US gross domestic product (or GDP) rose 3.7% in 2Q15, exceeding analysts’ expectations.

Oil and gas equipment and services firms Schlumberger (SLB) and Cameron International (CAM) were the worst and best performers, respectively, in the equipment and services subsector of the Energy Select Sector SPDR ETF (XLE). These two firms together form 8.1% of XLE.

Refiners Phillips 66 (PSX) and Valero Energy (VLO) were the best and worst performers, respectively, in the refining and marketing subsector, which posted the lowest weekly returns among all XLE subsectors.

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