The State Street Energy Select Sector SPDR ETF (XLE) has surged 50% year-to-date, driven by high energy prices due to ongoing disruptions in the Strait of Hormuz and strong global demand. Despite this rise, top holdings like ExxonMobil (XOM) and Chevron (CVX) trade below their historical EV/EBITDA averages and may see profits normalize if geopolitical tensions ease. Dividend yields for XLE constituents are currently low, making the ETF less attractive for income-focused investors despite improved balance sheets. The analyst recommends selective stock picking within the energy sector, highlighting Canadian companies CNQ, CVE, SU, and Brazilian PBR for their value, growth potential, and payout profiles.
As of Oct 16, 2026 04:41 WIB, XLE trades near its 52-week high at USD 66.49, just below the peak of USD 67.61, while ExxonMobil (XOM) and Chevron (CVX) also hover close to their yearly highs at USD 174.56 and USD 219.35 respectively. Despite XLE's strong year-to-date surge, typical hold times on Pluang show investors hold XOM and CVX longer, at 100 and 102 days, compared to 68 days for XLE. Dividend yields vary, with CVX offering 3.21% and XOM 2.33%, contrasting with the ETF's lower income appeal noted in the news.
