Rising oil prices can only be good news for the demand for drilling and other services that support the exploration for new energy sources. That fact is reflected in higher stock prices for oil services companies which have outperformed the broader market in recent months.
The $700 million SPDR S&P Oil & Gas Equipment & Services ETF (XES) is up nearly 20% on the year compared to 8% growth for the S&P 500.
The exchange traded fund tracks an index of 47 companies that serve the oil and gas industries. Top holdings include Carbo Ceramics, RPC,Helix Energy Solutions and Key Energy Services. One of the top performing stocks for the year, Carbo Ceramics supplies ceramic proppant used in the hydraulic fracturing of natural gas and oil wells.
XES pays a dividend yield of 0.7% and has an expense ratio of 0.35%.
– ETF MarketPro Staff
May 3, 2011