Final Trade: XLE, PANW, XHB, BMY
The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.
ETF inflows top $1 trillion in 2024. What comes next in 2025?
Investors poured over $1 trillion into exchange-traded funds (ETF) in 2024, with single-stock ETFs showing some of the highest annual returns. Clough Capital President and CEO Vince Lorusso — whose firm manages the Clough Select Equity ETF (CBSE) — appears on Wealth to analyze this trend and where he envisions strong ETF inflows to continue throughout 2025 and beyond.
Should You Invest in the Energy Select Sector SPDR ETF (XLE)?
Launched on 12/16/1998, the Energy Select Sector SPDR ETF (XLE) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Broad segment of the equity market.
XLE: Mind The Gap Between Oil Stocks And Oil Prices
The XLE ETF, dominated by Exxon and Chevron, has decoupled from WTI crude oil prices over the past 18 months, suggesting a potential profit-taking opportunity. At current oil prices, the P/E ratio may rise to over 20x over the next 12 months, which would be expensive for a sector that is barely growing. Investors are likely to be better off buying oil futures rather than the XLE, as the current ratio implies negative excess returns over the coming years.
XLE: Trump SPR Refill And Geopolitical Risk Point To Oil Rally In 2025
Although incoming President Donald Trump aims to increase oil drilling, his incoming administration can do little to improve US oil production, given today's low prices. If Trump rapidly increases strategic petroleum reserve inventories, however, the US may see an increase in oil demand of 1-2M barrels per day in early 2025. The lower US rig count and stagnant drilled-but-uncompleted well inventories indicate stagnant or negative US production changes in 2025, though demand is also stagnant.
XLE: The Sector Has Not Performed Well In Recent Interest Rate Cut Cycles
The oil and gas sector has averaged a -1.5% return in recent rate-cutting cycles, underperforming other cyclical and defensive sectors. XLE trades above its 3-year historical average in both P/E and EV/EBITDA, implying a 17% downside to fair value. Despite potential risks, historical data and current valuation support selling XLE, with a fair value estimate of $75.
Should You Invest in the Energy Select Sector SPDR ETF (XLE)?
Designed to provide broad exposure to the Energy - Broad segment of the equity market, the Energy Select Sector SPDR ETF (XLE) is a passively managed exchange traded fund launched on 12/16/1998.
Trade Tracker: Jason Snipe sells the XLE Energy ETF
Jason Snipe, founder and CIO at Odyssey Capital Advisors, joins CNBC's “Halftime Report” to explain why he's getting out of Energy.
Energy Vs. Midstream - XLE Vs. AMLP: Only One Is A Buy
Midstream and Energy have both been on a strong run in recent years. We compare the sectors in light of current macro factors. We then take a look at representative ETFs (XLE and AMLP) and share which is worth buying today.
XLE: Cheap, But No Catalyst Yet (Technical Analysis)
Energy sector stocks, particularly those in the Energy Select Sector SPDR Fund ETF, often move in sync with commodities but can show divergence due to capitalization weighting. XLE is highly concentrated, with the top two holdings making up over 40% of the ETF, leading to potential misinterpretation of sector performance. Despite strong historical returns, XLE's current valuation and yield suggest it is not particularly cheap, needing a catalyst for significant movement.
Rise in Oil Price Fails to Lift Energy ETFs: What's Ahead?
Oil heads for its first weekly gain in a month buoyed by Hurricane Francine but fails to spur energy ETFs.
Oil Stocks Crash After OPEC Revises Demand Forecast Downward
Among the hardest hit were Diamondback Energy, APA Corporation, and ExxonMobil. with shares of each falling around 4% on Tuesday.
