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Zacks Market Edge Highlights: ARKK, XLE, XOM, CVX and XOP
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For Immediate Release
Chicago, IL – June 2, 2022 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/1932584/arkk-v-oil-etfs-in-2022)
ARKK v. Oil ETFs in 2022
Welcome to Episode #316 of the Zacks Market Edge Podcast.
(3:40) - Is ARK The New Janus Twenty?
(11:00) - Are Investors Still Buying Into Kathy Wood's Strategy?
(19:15) - Should Your Portfolio Have Exposure To Energy Stocks?
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Director of ETF Research, Neena Mishra, to discuss the intriguing comparison of ARK Innovation and the Energy ETFs in 2022.
ARKK v Energy ETFs
On past podcasts, Tracey and Neena have talked about Cathie Wood's ARK Investment ETFS, especially Ark Innovation, the flagship fund which launched in 2014.
But in 2022, it's the energy sector, for the second year in a row, which has been outperforming. The largest energy ETFs, the Energy Select Sector SPDR and SPDR S&P Oil & Gas Exploration & Production ETF are both up over 50% year-to-date, as they're being driven by the big returns in Big Oil stocks like ExxonMobil and Chevron.
ARKK is a mirror of the Energy ETFs on performance, with shares down 50% year-to-date.
Yet more money continues to roll into the ARK Innovation ETF compared to the Energy SPDR ETF. In 2022, $1.6 billion has flowed into the flagship ARKK fund.
Is this a bullish, or bearish, signal for these ETFs?
ARK Innovation, the flagship ARK Investment fund, was one of the big winning ETFs prior to the pandemic and in the first year after the pandemic began. In 2020, ARKK was up 152.5%. The money poured in as investors wanted a taste of Cathie's investing magic.
But in 2021, and now again in 2022, ARKK has seen big declines. ARKK fell 23.4% in 2021 and is down 50% year-to-date in 2022. Even with that performance, the money is still coming in.
Cathie continues to add to her growth stock portfolio, even as the shares sink.
The Energy ETF covers the entire industry including producers, refiners and those in the service sector. However, the two largest holding in XLE are ExxonMobil (XOM - Free Report) and Chevron (CVX - Free Report) . Combined, ExxonMobil and Chevron account for 43.7% of the XLE.
ExxonMobil is up 56.9% year-to-date while Chevron has gained 48.8%. They are driving this ETF higher. Both ExxonMobil and Chevron remain value stocks with forward P/Es of 9.6 and 10.5%, respectively.
If you want to own a basket of energy stocks, is XLE the way to go?
3. SPDR S&P Oil & Gas Exploration and Production ETF (XOP - Free Report)
The Oil & Gas Exploration and Production ETF owns only the energy producers. It is an equal weight ETF so you won't see a big concentration in ExxonMobil or Chevron, even though both are also in this ETF. It's largest holding is Callon Petroleum which is 3% of the ETF.
Shares of XOP are up 61.3% year-to-date but unlike the Energy ETF, the outflows have been greater than the inflows, possibly as investors cash out profits.
Is all the good news already priced into XOP?
What Else do you Need to Know About ARKK Versus the Energy ETFs in 2022?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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Zacks Market Edge Highlights: ARKK, XLE, XOM, CVX and XOP
For Immediate Release
Chicago, IL – June 2, 2022 – Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: https://www.zacks.com/stock/news/1932584/arkk-v-oil-etfs-in-2022)
ARKK v. Oil ETFs in 2022
Welcome to Episode #316 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
This week, Tracey is joined by Zacks Director of ETF Research, Neena Mishra, to discuss the intriguing comparison of ARK Innovation and the Energy ETFs in 2022.
ARKK v Energy ETFs
On past podcasts, Tracey and Neena have talked about Cathie Wood's ARK Investment ETFS, especially Ark Innovation, the flagship fund which launched in 2014.
But in 2022, it's the energy sector, for the second year in a row, which has been outperforming. The largest energy ETFs, the Energy Select Sector SPDR and SPDR S&P Oil & Gas Exploration & Production ETF are both up over 50% year-to-date, as they're being driven by the big returns in Big Oil stocks like ExxonMobil and Chevron.
ARKK is a mirror of the Energy ETFs on performance, with shares down 50% year-to-date.
Yet more money continues to roll into the ARK Innovation ETF compared to the Energy SPDR ETF. In 2022, $1.6 billion has flowed into the flagship ARKK fund.
Is this a bullish, or bearish, signal for these ETFs?
Value Versus Growth ETFs
1. ARK Innovation (ARKK - Free Report)
ARK Innovation, the flagship ARK Investment fund, was one of the big winning ETFs prior to the pandemic and in the first year after the pandemic began. In 2020, ARKK was up 152.5%. The money poured in as investors wanted a taste of Cathie's investing magic.
But in 2021, and now again in 2022, ARKK has seen big declines. ARKK fell 23.4% in 2021 and is down 50% year-to-date in 2022. Even with that performance, the money is still coming in.
Cathie continues to add to her growth stock portfolio, even as the shares sink.
Is the worst now priced in with ARKK?
2. Energy Select Sector SPDR (XLE - Free Report)
The Energy ETF covers the entire industry including producers, refiners and those in the service sector. However, the two largest holding in XLE are ExxonMobil (XOM - Free Report) and Chevron (CVX - Free Report) . Combined, ExxonMobil and Chevron account for 43.7% of the XLE.
ExxonMobil is up 56.9% year-to-date while Chevron has gained 48.8%. They are driving this ETF higher. Both ExxonMobil and Chevron remain value stocks with forward P/Es of 9.6 and 10.5%, respectively.
If you want to own a basket of energy stocks, is XLE the way to go?
3. SPDR S&P Oil & Gas Exploration and Production ETF (XOP - Free Report)
The Oil & Gas Exploration and Production ETF owns only the energy producers. It is an equal weight ETF so you won't see a big concentration in ExxonMobil or Chevron, even though both are also in this ETF. It's largest holding is Callon Petroleum which is 3% of the ETF.
Shares of XOP are up 61.3% year-to-date but unlike the Energy ETF, the outflows have been greater than the inflows, possibly as investors cash out profits.
Is all the good news already priced into XOP?
What Else do you Need to Know About ARKK Versus the Energy ETFs in 2022?
Tune into this week's podcast to find out.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performancefor information about the performance numbers displayed in this press release.