18 Mar

Energy Subsector ETFs Rose with Oil Gains

WRITTEN BY Rabindra Samanta

Energy subsector ETFs

In the week ending March 15, major energy subsector ETFs had the following performances:

  • The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) rose 6.1%.
  • The VanEck Vectors Oil Services ETF (OIH) rose 5.7%.
  • The VanEck Vectors Oil Refiners ETF (CRAK) rose 3.3%.
  • The Alerian MLP ETF (AMLP) rose 1.3%.

Energy Subsector ETFs Rose with Oil Gains

Energy subsector rose with oil

Last week, US crude oil futures rose 4.4%. All of these energy ETFs ended in the green. The S&P 500 Index (SPY) rose 2.9%, which might have supported these energy ETFs. On March 8–15, other US equity indexes also rose. The S&P Mid-Cap 400 (IVOO) and the Dow Jones Industrial Average (DIA) rose 1.9% and 1.6%, respectively. These equity indexes have an exposure of 5.9%, 5.1%, and 5.2% to energy stocks, respectively.

However, a contraction of ~$1 in the Brent-WTI spread last week might have a negative impact on CRAK. US downstream stocks account for ~30.1% of CRAK and are sensitive to the Brent-WTI spread.

Energy sector performance

Last week, US crude oil April futures rose 4.4%, while the Energy Select Sector SPDR ETF (XLE) rose 2.5%. XLE had the fourth-highest rise among the sector-specific SPDR ETFs under review.

Last week, the Technology Select Sector SPDR ETF (XLK) rose 4.6%—the largest rise among the sector-specific SPDR ETFs. The Industrial Select Sector SPDR ETF (XLI) fell 0.4%—the only decline among the sector-specific SPDR ETFs.

Most of the sector-specific SPDR ETFs closed in the green last week.

Next, we’ll discuss the top energy gains last week.

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