This ETF offers an opportunity to invest in the lesser known midcap oil companies. It invests at least 80%, of its assets in the securities included in the S&P Oil & Gas Exploration & Production Select Industry Index. That index represents the oil and gas exploration and production segment of the S&P Total Market Index.
SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
From Positive Patterns
SPDR S&P Oil & Gas Exploration & Production ETF (XOP) includes the less than major mid-sized oil companies and to me, a good way to play higher oil prices.
I think higher prices are coming, and this would be a good trade for an IRA, etc.—not a buy/keep but a cyclical trade for the next 4-5 years. The ETF owns the usual suspects in this area—Continental Resources, Inc. (CLR), Whiting Petroleum Corporation (WLL), RSP Permian, Inc. (RSPP), Callon Petroleum Company (CPE), Carrizo Oil & Gas, Inc. (CRZO, Delek US Holdings, Inc. (DK), Apache Corporation (APA), etc.
I would buy this up to $42 and think of it as a 3 to 5-year trade.
Bob Howard, Positive Patterns, P.O. Box 310, Turners, MO 65765, 417-887-4486, May 3, 2018