Energy Select Sector SPDR Fund (XLE) aims to provide before-expenses investment results that correspond with the price and yield performance of the Energy Select Sector Index companies. The fund follows a replication strategy and offers exposure to the United States energy sector and can be used as a tactical overlay for investors looking for exposure when oil prices show promise.
Oil prices are soaring again on concerns over a tight supply during the upcoming winter season. The global oil supply is expected to tighten when a European Union embargo on Russian oil takes effect in December. Moreover, the G7 countries’ expected price cap on Russian oil to limit Russia’s oil export revenue could skyrocket gasoline prices in winter.
