Has Wall Street Boosted Energy ETFs despite Oil’s Weakness?



US equity indexes

On December 21–28, US equity indexes ended in the green. Last week, the S&P Mid-Cap 400 (IVOO), the S&P 500 (SPY), and the Dow Jones Industrial Average (DIA) rose 2.9%, 2.7%, and 2.2%, respectively. Energy stocks form ~5.1%, 5.9%, and 5.2%, respectively, of these equity indexes.

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Oil, broader market, and energy ETFs

Last week, US crude oil February futures fell 0.6%, while the Energy Select Sector SPDR ETF (XLE) rose 1.7%. XLE saw the second-lowest rise among the SPDR ETFs that break the broad market into subsectors. The broader market indexes might have a significant role in XLE’s rise. Equity indexes have recovered due to easing concerns about an economic slowdown.

Last week, the Utilities Select Sector SPDR ETF (XLU) fell 1.8%—the highest fall on our list. The Consumer Discretionary Select Sector SPDR ETF (XLY) rose 4.5%—the highest rise on our list during this period. Most of the SPDR ETFs ended in the green last week.

Energy ETFs

In the week ending on December 28, major energy subsector ETFs’ price metrics were:

  • The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 4%.
  • The VanEck Vectors Oil Services ETF (OIH) rose 3.4%.
  • The VanEck Vectors Oil Refiners ETF (CRAK) rose 2.4%.
  • The Alerian MLP ETF (AMLP) fell 0.9%.

The rise in the broader market might have been behind the rise in most of these energy ETFs last week.


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