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Our Favorite Energy ETF

Energy Select Sector SPDR is a low-cost, liquid tool for strong-stomached investors seeking broad-based energy exposure.


Ben Johnson: Our favorite ETF for broad, diversified exposure to the energy sector is the Energy Select Sector SPDR (XLE).

XLE offers investors who are looking for energy exposure but might be wary of stock-specific risk a low-cost and liquid tool to express their view. This fund is, far and away, the largest of the eight broad-based ETFs tracking the sector. It is extremely liquid, and it has a very reasonable fee of 0.15%.

Ben Johnson does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.