Energy stocks have underperformed the broader market in 2012 and the trend doesn’t appear to be changing anytime soon.
The Energy Select Sector ETF (XLE) is flat year-to-date in 2012 compared to an 11% gain for the broader market.
Falling natural gas prices and anemic economic growth have contributed to the underpeformance by the sector. The largest players in market, including Exxon Mobil, Chevron and Conoco, recently reported slow or no earnings growth as they struggle with low natural gas prices and falling oil production levels.
XLE tracks the energy sector of the SP 500 Index including oil, gas & consumable fuels and energy equipment & services stocks.
The expense ratio for the $7.6 billion ETF is 0.18%.
For more ways to invest, see the complete list of industry ETFs.
– ETF MarketPro Staff
April 28, 2012