Energy Select Sector SPDR Fund (XLE): Time to Go Classic!

West Texas Intermediate (WTI) crude oil price trades with clear positivity to attack 77.80/bbl level apparently looking towards potential test to the key resistance 78.70/bbl. Some institutional analysts predict that Brent Crude Oil could hit $85 per barrel in the short term and maybe $90 by year-end. That would translate into $80 for WTI crude oil in the short run and $85 by year-end.

In this respect, it’s worth revisiting some classic energy ETFs and update what they can offer at the moment. One of the best ideas, beyond a controversial USO, is the Energy Select Sector SPDR Fund (XLE) seeking to track the performance of the Energy Select Sector Index. The index is designed to track the energy sector of the S&P 500, focusing on companies in the oil, natural gas, consumer fuels, and energy equipment and services sectors. The Energy Select Sector SPDR Fund, founded in December 1998, has an expense ratio of 0.09% and its portfolio consists of 23 stocks. It's one of the best energy ETFs one can buy currently. The Energy Select Sector SPDR Fund (XLE) 5-year price performance is almost 35% up.

Notably, Exxon Mobil Corporation (XOM ) is the largest holding in the Energy Select Sector SPDR Fund. On February 2, Exxon Mobil Corp. (XOM) announced a quarterly dividend of $0.95 per share, the same as before. The dividend will be paid on March 11 to shareholders of record on February 14. Interestingly, some 85 hedge funds were bullish on Exxon Mobil Corp. (XOM), compared with 79 funds bullish in the prior quarter.