Energy sector versus the broader market
From December 8–15, 2016, the Energy Select Sector SPDR ETF (XLE) only rose 0.1%. It was the fifth-highest rise among the sector-based SPDR ETFs that we’ll cover in this part of the series.
US crude oil (USO) (USL) January futures rose 0.1% from December 8–15 due to the factors we looked at earlier in this series. The slight gain in XLE corresponds to the slight rise in crude oil prices.
Among the SPDR ETFs, the Health Care Select Sector SPDR ETF (XLV) rose the most. It rose ~2.7% from December 8–15, 2016.
During this period, the S&P 500 Index (SPY) (QQQ) (IVV) (VFINX) (IWM) rose 0.7%. The slight rise in XLE contributed to the gains in the broader market. The energy sector accounts for ~7.3% of the S&P 500.
Crude oil this week
On December 16, 2016, at 2:19 AM EST, US crude oil (OIIL) was trading at $51.07 per barrel—an 0.8% fall compared to its closing price on December 9, 2016. Crude oil will likely close on a negative note this week. From December 2–December 9, 2016, crude oil fell 0.3%.
Moves in crude oil (SCO) prices are an important factor for ETFs such as the iShares US Oil Equipment & Services ETF (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 this series, we’ll see how crude oil and natural gas drive energy ETFs.