The energy sector has been on fire all year long. Oil prices continue to rise and there’s seemingly no end in sight. One way to profit in the energy sector is to buy the Exchange Traded Fund XLE.
Before I continue, I must note that as of this writing (July 12, 2007) XLE is in my portfolio.
Energy Select Sector SPDR Fund (Symbol: XLE) is traded on AMEX and it closed at $73.23 on Wednesday.
The Fund has $4.2 billion in assets, and it’s been on a tear since March—where it was around $55. It gives investors a low-cost vehicle for securing a portfolio of equity securities of companies in the energy sector.
You’re probably familiar with many holdings of XLE, which include:
XLE has 99.6% of its holdings in Oil & Gas, but it also has 2.1% in Basic Materials and 1.2% in Utilities. It’s up 28.50% on the year, with most of that (15.20%) coming in the past three months.
This fund pays a dividend. The yield is 1.11%.
If you’re looking to invest in the energy sector, but you can’t decide on what company to invest in, take a look at XLE. You’ll get a basket of strong energy companies in a bullish sector.
My name is Jason A. Martin. I'm an investor/trader and financial writer. This is my blog. I also run a site dedicated to currency trading at CapitalistNation.com. If you'd like to follow me on twitter, here's the link: Jason A. Martin If you need financial content (articles, newsletters, eBooks, etc) for your site, publication and/or business, go to FinancialWriter.org (my service) for more details.
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My name is Jason A. Martin and this is my investment blog. Back in Jr. High School I fell in love with an electrical wiring company's stock on Wall Street. After following the stock daily in the papers—the Internet wasn't around back then—I sent them a letter and they sent me back all sorts of wonderful information about their company.
In High School, we had a stock market contest. All the kids were picking companies that made stuff they consumed. When I announced my beloved company, I was laughed at. Little did they know that my company was going to be the subject of a takeover soon.
Long story short, I won the contest and have made money in the stock market, through real estate investing, currency trading and so forth.
I hope you enjoy Financial Rebel. If you do, please leave your comments and share this site with those you know. I also run a currency trading blog over at CapitalistNation.com.
Jason
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