State Street Energy Select Sector SPDR ETF

XLE

Market cap $37.6B

As the Q2 earnings season kicks off, the market is widely anticipating strong results, with the technology and energy sectors expected to lead the charge. Current analyst expectations point to a robust 23.3% earnings growth for the S&P 500, which would mark the second consecutive quarter of over 20% growth, according to FactSet.

London's FTSE 100 was little changed on Monday as gains in oil majors helped offset weakness in financial shares, leaving investors to weigh the market impact of renewed US-Iran military exchanges. The blue-chip index edged up 0.03% to 10,499.88 points by 0927 GMT, while the domestically focused FTSE 250 slipped 0.1%.

State Street Energy Select Sector SPDR ETF offers a significantly lower expense ratio and higher dividend yield compared to iShares Global Clean Energy ETF While iShares Global Clean Energy ETF provides broader global exposure through 105 holdings, State Street Energy Select Sector SPDR ETF concentrates on 21 S&P 500 energy giants State Street Energy Select Sector SPDR ETF has historically experienced lower volatility and smaller drawdowns than the renewable-focused iShares fund

Fresh tanker attacks in the Strait of Hormuz prompted the US Treasury Department to revoke a waiver allowing Iranian oil sales, and WTI crude jumped more than 5% on the news.

Sentiment indicators in the energy sector are nearing a long-term buy signal but have not yet reached levels that triggered previous buying signals. Investors should wait for it before reentering.

While volatile oil prices have taken much of the spotlight in the energy sector this year, increasing global energy security concerns amid geopolitical tensions, soaring data center energy demand, and substantial international investment have propelled clean energy ETF gains in 2026.

A deepening sell-off in chip and memory stocks dragged all four major U.S. equity indexes lower by midday Tuesday.

Saudi Arabia is considering expanding the capacity of its crude ​oil pipeline to the western Red Sea coast, five sources close to the matter said, enabling the kingdom and possibly neighbours ‌to transport more oil without crossing the Strait of Hormuz.

President Trump is ramping up pressure on the industry to lower gas prices ahead of November's midterm elections.

The top performing sector SPDR's in 2026 were led by the State Street Technology Select Sector SPDR Fund (XLK) with gains of 33% year-to-date, followed by the State Street Energy Select Sector SPDR Fund (XLE) and the State Street Industrial Select Sector SPDR Fund (XLI), which rose 21% and 20% respectively in the first half