Launched on June 19, 2006, the State Street SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Exploration segment of the equity market.
Launched on 06/19/2006, the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) is a smart beta exchange traded fund offering broad exposure to the Energy ETFs category of the market.
Global oil markets face a looming supply glut through 2026, driven by surging production from Guyana and OPEC+, putting downward pressure on the price of oil. Oil storage is at a 4-year high, and the IEA says "something's got to give" and predicts a supply glut in 2026. I agree. Rapid EV adoption and record-high oil inventories signal ongoing demand destruction, further challenging O&G investors' portfolios.
| XBER Exchange | US Country |
The company in focus operates as an investment fund that aims to replicate the performance of the S&P Oil & Gas Exploration & Production Select Industry Index. To achieve this objective, the fund employs a sampling strategy. This means that while it aims to invest most of its assets in the securities that make up the index, it may not hold all the securities in the exact proportions as they appear in the index. The policy of the fund mandates that at least 80% of its total assets are invested in the securities of the index. The S&P Oil & Gas Exploration & Production Select Industry Index, which the fund tracks, is a subset of the S&P Total Market Index (S&P TMI). This index specifically represents the oil and gas exploration and production sector, highlighting companies engaged in the exploration, extraction, and production of oil and natural gas.
The primary product offered by the fund is an investment vehicle that allows investors to gain exposure to the oil and gas exploration and production industry. By investing in this fund, shareholders indirectly invest in a portfolio of companies that are part of the S&P Oil & Gas Exploration & Production Select Industry Index. This includes a range of companies from those involved in the early stages of exploration to those engaged in the extraction and production of oil and natural gas. The fund's strategy involves a sampling approach to the index it tracks, meaning it selects a portion of the index's securities to achieve a similar performance, rather than replicating the index exactly. This method provides investors with a diversified exposure to the oil and gas sector, potentially mitigating risks associated with investing in individual stocks within this volatile industry.