Lower Fees, Higher Yield: Why XLE Tops XOP
Investors choosing between State Street Energy Select Sector SPDR ETF (NYSEMKT:XLE) and State Street SPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT:XOP) must weigh the cost of large-cap concentration against the higher fees of a broader, production-focused strategy.
Energy investing is rarely a monolith, and these two funds offer distinct ways to play the sector. While the Energy Select Sector fund tracks large-cap stalwarts from the S&P 500, the Oil & Gas Exploration fund provides a more targeted dive into the specific mechanics of fuel production and refining.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-year return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.