$Energy Select Sector SPDR Fund(XLE)$
Oil prices gained 3% today as US positive economic data and robust US fuel consumption offset concerns that slowing economic growth may undercut demand. Brent Crude futures rose to USD 2.94 or 3.1% to close at USD 96.59 a barrel.
$Energy Select Sector SPDR Fund(XLE)$ tracks the performance of the largest and strongest US Energy companies within the S&P500 universe. In just 1 trade, you gain access to the US Energy Giants like Exxon Mobil, Chevron and Occidental Petroleum which is Warren Buffett 's favourite energy stock.
The Top 10 holdings include Exxon Mobil, Chevron Corp, ConocoPhillips, Occidental Petroleum, EOG Resources, Marathon Petroleum, Pioneer Natural Resources, Schlumberger, Valero Energy and Phillips 66.
Top 10 Holdings weightage is 77%
Total number of Holdings is 21.
Exxon Mobil and Chevron Corp takes up 45% of the ETF.
Expense ratio is a low 0.10%
Dividends are paid quarterly. The current dividend yield is 3.62%. The next ex dividend date is 19 September 2022.
Even though there are concerns that the global economy is slowing down and recession is on the way, the demand for oil far outstrips its supply. Moreover the war in Ukraine is still ongoing and there is a current ban on Russian oil by US and its allies.
I am bullish on $Energy Select Sector SPDR Fund(XLE)$ as it will continue its upward trend due to these macroeconomic factors.
$Energy Select Sector SPDR Fund(XLE)$ is diversified and minimises my risk on single stocks. It is also low cost compared to buying individual stocks. Best of all, I collect dividends every 3 months. My next paycheck is due on 19 September. How good is that!
$Energy Select Sector SPDR Fund(XLE)$ is also a defensive play and a great hedge against high inflation.
@Daily_Discussion@TigerStars@CaptainTiger@MillionaireTiger
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