About XLE ETF
The State Street Energy ETF (XLE) has investments in crude, oil, natural gas and other energy related service companies and is managed by State Street Global Advisors that has a total AUM of $2.73T. Street Energy ETF (XLE) is an exchange-traded fund incorporated in the USA in Dec 1998.
About the Fund Manager:
State Street was incorporated in 1792, has four decades of experience meeting complex client needs and is the third largest asset manager in the world managing $2.73T. It is the 2nd United States bank on the list of oldest banks in continuous operation. State Street is ranked 14th on the list of largest banks in the United States by assets.
The ETF tracks the performance of the Energy Sector Index that holds large-cap U.S. energy stocks.
XLE invests in companies that develop & produce crude oil & natural gas, provide drilling and other energy related services. It offers exposure to the complete market of US energy firms.
XLE invests 99% of its assets in the U.S. and just 1% in the U.K.
XLE invests in stocks from the S&P 500 rather than the total market, so its portfolio is smaller than that of peer funds and is tilted towards large cap companies.
According to ETFdb.com, "XLE can be potentially useful as a tactical overlay for those looking to shift exposure towards a sector that thrives when oil prices show strength."
1. Fund Factsheet
2. Best Oil Stock ETF for Investing in Oil
How did we identify this ETF:
A complete pool of 2100+ ETFs is screened on various qualitative and quantitative parameters to evaluate efficiency, tradability and fit. The metrics used were alpha, beta and R-Squared with respect to the segment benchmark and ETF specific metrics such as expense ratio, drawdown, volatility and the overall rating. We evaluate all ETFs and assign a composite score based on our analysis and then select the top ones in a category based on that comprehensive score by the in-house research/quant analysts team. The fund has very low holding costs thanks to a low fee, low tracking error and an extremely high volume contributing to the selection in the Energy Equities segment. The strategy is rebalanced on a quarterly basis with the rebalancing mechanism being determined by an algorithm that takes into account the overall performance of the strategy so far.