Energy Select Sector SPDR Fund

XLE

Market cap $25.9B

The Energy Select Sector SPDR ETF (XLE) was launched on December 16, 1998, and is a passively managed exchange traded fund designed to offer broad exposure to the Energy - Broad segment of the equity market.

Downgraded The Energy Select Sector SPDR Fund ETF to Sell due to weakening US and Chinese economies and rising oil supply. XLE's heavy exposure to upstream oil companies, like XOM, CVX, and COP, makes it vulnerable to falling crude prices. Forecasts from EIA and Goldman Sachs project Brent crude to average near $51/barrel in 2026, pressuring the fund's returns.

A new trade war threat from President Trump just reshuffled the entire stock market. I discuss what the big gift to dividend investors is. I also share how I am taking advantage of President Trump's gift.

It's October, and ETFs are closing in on the $1 trillion mark for net inflows in 2025 (We have $997 billion as of October 9). This is a monumental achievement given this milestone was first crossed in a calendar year only last December.

Energy stocks offer compelling value due to low sector valuations, supply constraints, and long-term demand growth, making the sector highly attractive for investors. OPEC+ spare capacity is dwindling, U.S. shale investment is declining, and political risks are curbing new supply, setting up a bullish environment for oil prices. Key investment ideas include Canadian oil sands, Permian Basin producers, and royalty/landowner companies, with a positive outlook for select natural gas and service firms.

Bet on Wall Street Q4 tailwinds -- strong GDP data, holiday sales, AI boom & earnings growth. These have put the spotlight on IWM, XLF, XLY & XLE.

Josh Brown, CEO of Ritholtz Wealth Management, joins CNBC's "Halftime Report" to spotlight energy in his "Best Stocks in the Market"

I focus on big, long-term trends and dedicate energy to sectors with tremendous value, even if they're temporarily out of favor. Earlier this year, defense contractors were extremely undervalued, but patient investors have since been rewarded as the market recognized their strengths. My investment style emphasizes patience and thesis-driven investing, which isn't for everyone. Index fund investors should stick to consistency and diversification.

The final trades of the day with CNBC's Melissa Lee and the Fast Money traders.

The Trump administration has promoted an energy policy favorable to oil and gas, but the utilities sector within the S&P 500 has been the much stronger performer this year. The Utilities Select Sector SPDR (XLU) has tripled the return generated by the Energy Select Sector SPDR (XLE) this year.