Energy Select Sector SPDR (ETF) (NYSEARCA:XLE) Outperforms Oil Sector


Dallas, Texas 10/23/2013 (Financialstrend) – Energy Select Sector SPDR (ETF) (NYSEARCA:XLE) is an exchange traded fund. Its motto is to aim for results which are in line with the returns posted by the Energy Select Sector of the S&P 500 Index. This index tracks oil and gas producing companies and companies which provide services like drilling and oil transportation. The fund managers are advised by “SSgA Funds Management, Inc.”

In the past 12 months, the ETF has paid out dividend of $1.56 per share which translates to a 1.79% dividend yield for the year. Not only has the ETF stock managed to pay out dividend, but has also managed to increase its net asset value over the past few months. The stock has appreciated by 2.93% in the past one week.  It has also recorded a 4.07% increase in value over the past one month. Investors who had put their money into the fund one year back would have seen a 17% appreciation, which is pretty healthy considering the oil marketing firms have struggled through the year due to erratic oil prices in the international market.

At close of business on October 22, the stock was trading at $87.03 per share up 0.55% from its previous day close. At these heightened valuations the stock is trading just a shade lower than its 52 week high valuation of $87.24.

The ETF share value might get impacted when the U.S. Supreme Court might pronounce its verdict on environmental protection agency to regulate green house gas emission which is emitted by refineries. This ruling can swing either way and has created uncertainty in the markets. If the U.S. Supreme Court strikes down the provisions, then the petroleum industry will cheer the pronouncement. In the case of Supreme Court upholding the provisions in the Clean Air Act the oil production and refining companies will end up spending huge part of their resources into getting their emissions under control.