SPDR® S&P Oil & Gas Equipment & Services ETF (XES)

Overview

The SPDRu00ae S&P Oil & Gas Equipment & Services ETF (XES) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Oil & Gas Equipment & Services Select Industry Index. It focuses on companies involved in providing equipment and services for the oil and gas industry.

Reputation and Reliability

State Street Global Advisors (SSGA) is a reputable and reliable issuer, one of the largest asset managers globally with a long track record in the ETF market.

Management Expertise

SSGA has a team of experienced professionals managing the ETF, leveraging their industry knowledge and market insights.

Goal

To provide investment results that, before fees and expenses, correspond generally to the total return performance of the S&P Oil & Gas Equipment & Services Select Industry Index.

Investment Approach and Strategy

Strategy: The ETF employs a replication strategy, aiming to hold all or substantially all of the securities in the underlying index.

Composition The ETF primarily holds stocks of companies in the oil and gas equipment and services sector.

Market Share: XES holds a significant market share within the oil and gas equipment and services ETF segment.

Total Net Assets (AUM): 630630288

Key Competitors

• Invesco Oil & Gas Services ETF (PXJ)
• VanEck Oil Services ETF (OIH)

Competitive Landscape

The ETF industry for oil and gas equipment and services is competitive. XES, OIH, and PXJ compete primarily on expense ratios, tracking error, and liquidity. XES benefits from SSGA's brand recognition and generally tight tracking, but it may have higher expense ratios than some competitors. OIH has the highest AUM, giving it liquidity benefits. PXJ is a smaller competitor with a unique equal weight strategy.

Historical Performance: Historical performance varies with oil and gas market cycles. Returns are highly correlated with energy prices.

Benchmark Comparison: XES aims to closely track the S&P Oil & Gas Equipment & Services Select Industry Index, with any deviations primarily due to fees and expenses.

Expense Ratio: 0.35

Average Trading Volume

XES has a generally healthy average trading volume, facilitating relatively easy entry and exit for investors.

Bid-Ask Spread

The bid-ask spread for XES is typically tight, indicating good liquidity and lower transaction costs.

Market Environment Factors

Economic indicators, oil prices, regulatory changes, and technological advancements significantly affect XES.

Growth Trajectory

Growth depends on global energy demand, exploration and production activities, and geopolitical stability. The ETF's strategy and holdings generally remain consistent.

Competitive Edge

XES benefits from SSGA's established reputation and expertise in managing ETFs. It offers investors focused exposure to the oil and gas equipment and services sector, providing a convenient and liquid way to access this specific industry. While not having a completely unique strategy, XES has a sizable AUM, which contributes to greater liquidity and tighter tracking of its underlying index. Its competitive edge lies in its combination of brand recognition, liquidity, and index replication.

Volatility

XES exhibits high volatility due to its concentration in the oil and gas sector, which is sensitive to commodity price fluctuations and geopolitical events.

Market Risk

The specific risks associated with XES include commodity price risk, regulatory risk, and the cyclical nature of the oil and gas industry. Lower demand in oil prices, and geopolitical instability could all negatively impact the ETF.

Ideal Investor Profile

The ideal investor for XES is one seeking targeted exposure to the oil and gas equipment and services sector and willing to accept the associated volatility. Investors who believe in the long-term growth of the oil and gas industry and its equipment needs may find XES suitable.

Market Risk

XES is more suitable for active traders or those with a higher risk tolerance, rather than passive index followers seeking broad market exposure.

The SPDRu00ae S&P Oil & Gas Equipment & Services ETF (XES) offers focused exposure to companies providing equipment and services to the oil and gas industry. It tracks the S&P Oil & Gas Equipment & Services Select Industry Index and is managed by State Street Global Advisors. While it provides a convenient way to access this specific sector, XES carries inherent risks associated with commodity price volatility and industry cycles. It's best suited for investors with a higher risk tolerance and a bullish outlook on the long-term prospects of the oil and gas equipment and services sector, and it offers liquidity and a well-known brand.

• OIH
• PXJ
• FRAK

Data Sources:

• State Street Global Advisors Website
• ETF.com
• Yahoo Finance

Disclaimers:

The data and analysis provided are for informational purposes only and should not be considered investment advice. Past performance is not indicative of future results. Market data is as of a specific date and may change.