Comparing XLE’s Performance to Other SPDR ETFs



Energy sector versus the broader market

From August 18–25, 2016, the Energy Select Sector SPDR ETF (XLE) fell by 1.9%. It was the second highest fall among the SPDR ETFs that we’re covering in this part of the series.

Crude oil (UWTI) (USO) (OIIL) (USL) (SCO) (DWTI) fell by ~3.7% from August 18–25, 2016, due to the various factors we saw earlier in this series. This is what primarily fueled the fall in XLE.

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Among the SPDR ETFs, the Financial Select Sector SPDR ETF (XLF) rose the most. It rose by ~0.2% from August 18 to August 25. The small gain in XLF could be due to technical buying. Market participants are expecting a rate hike at the Fed meeting on September 21, 2016. It could be supporting XLF.

The above table shows XLE’s performance compared to ETFs representing other sectors. The returns of the ETFs in the above table are adjusted for dividends.

Crude oil this week

On August 26, 2016, at 2:10 AM EST, US crude oil was trading at $47.23 per barrel. That’s a fall of ~3.8% compared to its closing price on August 19, 2016. Crude oil could close on a negative note this week. From August 12 to August 19, crude oil rose by 8.7%.

The potential of a reversal in crude oil prices is an important factor for ETFs such as the iShares US Oil Equipment & Services (IEZ), the SPDR S&P Oil & Gas Equipment & Services ETF (XES), and the Guggenheim S&P 500 Equal Weight Energy ETF (RYE).

In the final part of our series, let’s see how crude oil and natural gas drive energy ETFs.


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