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Energy ETFs in Focus as Exxon Beats, Chevron Disappoints
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Two energy behemoths — Exxon Mobil Corp. (XOM - Free Report) and Chevron Corp. (CVX - Free Report) — came up with varied second-quarter results recently. Exxon Mobil beat both earnings and revenue estimates and recorded its first profit increase after four quarters of decline. Meanwhile, Chevron disappointed, lagging earnings estimates.
This has put the focus on energy ETFs like Energy Select Sector SPDR (XLE - Free Report) , Vanguard Energy ETF (VDE - Free Report) , iShares U.S. Energy ETF (IYE - Free Report) , Fidelity MSCI Energy Index ETF (FENY - Free Report) and Strive U.S. Energy ETF (DRLL - Free Report) , with the largest allocation to the energy behemoths.
Earnings in Focus
The largest U.S. oil producer registered one of its highest-ever profits for a second quarter, bolstered by record production in the Permian Basin and Guyana. Exxon Mobil posted earnings per share of $2.14, outpacing the Zacks Consensus Estimate of $2.04 and higher than the year-ago earnings of $1.94. Revenues rose 12.3% year over year to $93.1 billion and edged past the consensus mark of $90.4 billion (read: Oil Headed for Best Week in 2 Months: Energy ETFs in Focus).
Earnings per share at Chevron came in at $2.55, lagging the Zacks Consensus Estimate of $2.88 and declining from the year-ago earnings of $3.08 per share. Revenues grew 4.7% year over year to $51.2 billion and beat the consensus mark of $50.8 billion.
Energy Select Sector SPDR is the largest and the most popular ETF in the energy space, with AUM of $40 billion and an average daily volume of 13 million shares per day. It offers exposure to the broad energy space and follows the Energy Select Sector Index. Energy Select Sector SPDR holds 22 securities in its basket, with Exxon Mobil and Chevron occupying the top two spots with a 24.2% and a 17.4% share, respectively.
Energy Select Sector SPDR charges 9 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
Vanguard Energy ETF provides exposure to a basket of 115 energy stocks by tracking the MSCI US Investable Market Energy 25/50 Index. Here again, Exxon and Chevron are the two leading firms with a 22.3% and 13.5% allocation, respectively.
Vanguard Energy ETF has amassed $8.5 billion in its asset base. It sees a good volume of about 294,000 shares. It charges 10 bps in annual fees and has a Zacks ETF Rank #1 with a High risk outlook.
iShares U.S. Energy ETF tracks the Russell 1000 Energy RIC 22.5/45 Capped Gross Index (USD), giving investors exposure to U.S. companies that produce and distribute oil and gas. It holds 43 stocks in its basket, with Exxon Mobil and Chevron taking the top two positions at 23.9% and 14.8% share, respectively (see: all the Energy ETFs here).
iShares U.S. Energy ETF charges 40 bps in fees per year from its investors. It has AUM of $1.3 billion and an average daily volume of about 272,000 shares. The product has a Zacks ETF Rank #1 with a High risk outlook.
Fidelity MSCI Energy Index ETF fund follows the MSCI USA IMI Energy Index, holding 115 stocks in its basket. Of these, XOM and CVX take the top two spots at 22.4% and 13.8%, respectively.
Fidelity MSCI Energy Index ETF charges 8 bps in annual fees and trades in a good volume of around 510,000 shares. It has accumulated $1.8 billion in its asset base and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
Strive U.S. Energy ETF seeks broad market exposure to the U.S. energy sector and follows the Bloomberg US Energy Select Index. It holds 41 stocks in its basket, with Exxon Mobil and Chevron taking the top two positions at 24% and 20.6% share, respectively.
Strive U.S. Energy ETF has gathered $333.8 million in its asset base. It charges 41 bps in fees per year from investors and trades in an average daily volume of 47,000 shares. DRLL has a Zacks ETF Rank #2.
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Energy ETFs in Focus as Exxon Beats, Chevron Disappoints
Two energy behemoths — Exxon Mobil Corp. (XOM - Free Report) and Chevron Corp. (CVX - Free Report) — came up with varied second-quarter results recently. Exxon Mobil beat both earnings and revenue estimates and recorded its first profit increase after four quarters of decline. Meanwhile, Chevron disappointed, lagging earnings estimates.
This has put the focus on energy ETFs like Energy Select Sector SPDR (XLE - Free Report) , Vanguard Energy ETF (VDE - Free Report) , iShares U.S. Energy ETF (IYE - Free Report) , Fidelity MSCI Energy Index ETF (FENY - Free Report) and Strive U.S. Energy ETF (DRLL - Free Report) , with the largest allocation to the energy behemoths.
Earnings in Focus
The largest U.S. oil producer registered one of its highest-ever profits for a second quarter, bolstered by record production in the Permian Basin and Guyana. Exxon Mobil posted earnings per share of $2.14, outpacing the Zacks Consensus Estimate of $2.04 and higher than the year-ago earnings of $1.94. Revenues rose 12.3% year over year to $93.1 billion and edged past the consensus mark of $90.4 billion (read: Oil Headed for Best Week in 2 Months: Energy ETFs in Focus).
Earnings per share at Chevron came in at $2.55, lagging the Zacks Consensus Estimate of $2.88 and declining from the year-ago earnings of $3.08 per share. Revenues grew 4.7% year over year to $51.2 billion and beat the consensus mark of $50.8 billion.
ETFs in Focus
Energy Select Sector SPDR (XLE - Free Report)
Energy Select Sector SPDR is the largest and the most popular ETF in the energy space, with AUM of $40 billion and an average daily volume of 13 million shares per day. It offers exposure to the broad energy space and follows the Energy Select Sector Index. Energy Select Sector SPDR holds 22 securities in its basket, with Exxon Mobil and Chevron occupying the top two spots with a 24.2% and a 17.4% share, respectively.
Energy Select Sector SPDR charges 9 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
Vanguard Energy ETF (VDE - Free Report)
Vanguard Energy ETF provides exposure to a basket of 115 energy stocks by tracking the MSCI US Investable Market Energy 25/50 Index. Here again, Exxon and Chevron are the two leading firms with a 22.3% and 13.5% allocation, respectively.
Vanguard Energy ETF has amassed $8.5 billion in its asset base. It sees a good volume of about 294,000 shares. It charges 10 bps in annual fees and has a Zacks ETF Rank #1 with a High risk outlook.
iShares U.S. Energy ETF (IYE - Free Report)
iShares U.S. Energy ETF tracks the Russell 1000 Energy RIC 22.5/45 Capped Gross Index (USD), giving investors exposure to U.S. companies that produce and distribute oil and gas. It holds 43 stocks in its basket, with Exxon Mobil and Chevron taking the top two positions at 23.9% and 14.8% share, respectively (see: all the Energy ETFs here).
iShares U.S. Energy ETF charges 40 bps in fees per year from its investors. It has AUM of $1.3 billion and an average daily volume of about 272,000 shares. The product has a Zacks ETF Rank #1 with a High risk outlook.
Fidelity MSCI Energy Index ETF (FENY - Free Report)
Fidelity MSCI Energy Index ETF fund follows the MSCI USA IMI Energy Index, holding 115 stocks in its basket. Of these, XOM and CVX take the top two spots at 22.4% and 13.8%, respectively.
Fidelity MSCI Energy Index ETF charges 8 bps in annual fees and trades in a good volume of around 510,000 shares. It has accumulated $1.8 billion in its asset base and has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
Strive U.S. Energy ETF (DRLL - Free Report)
Strive U.S. Energy ETF seeks broad market exposure to the U.S. energy sector and follows the Bloomberg US Energy Select Index. It holds 41 stocks in its basket, with Exxon Mobil and Chevron taking the top two positions at 24% and 20.6% share, respectively.
Strive U.S. Energy ETF has gathered $333.8 million in its asset base. It charges 41 bps in fees per year from investors and trades in an average daily volume of 47,000 shares. DRLL has a Zacks ETF Rank #2.