What Is XLE? Energy Select Sector SPDR Fund
Last updated July 2026
Short answer
XLE is the Energy Select Sector SPDR Fund, a fund that tracks the energy sector of the S&P 500 at a 0.08% expense ratio. It holds the large US oil and gas companies (XOM, CVX) and is highly concentrated in its two largest names, so it is a sector bet on energy rather than a broad-market core. Versus VOO, XLE strips out everything except energy, which makes it move closely with oil and gas prices.
XLE is issued by State Street SPDR and tracks Energy Select Sector. It charges a 0.08% expense ratio, holds approximately ~$35 billion in assets under management, yields about ~3.2%, and launched in December 1998.
What is XLE?
XLE is the Energy Select Sector SPDR Fund, a fund that tracks the energy sector of the S&P 500 at a 0.08% expense ratio. It holds the large US oil and gas companies (XOM, CVX) and is highly concentrated in its two largest names, so it is a sector bet on energy rather than a broad-market core. Versus VOO, XLE strips out everything except energy, which makes it move closely with oil and gas prices.
XLE is issued by State Street SPDR and tracks Energy Select Sector, so a single ticker gives you the whole basket of underlying holdings weighted by the index's methodology rather than by any active stock-picking.
XLE holdings: what's actually inside
XLE is weighted toward its largest constituents. As of early 2026, the top holdings are:
| Rank | Ticker | Company | % of XLE | |
|---|---|---|---|---|
| 1 | XOM | ExxonMobil | ~23% | |
| 2 | CVX | Chevron | ~17% | |
| 3 | COP | ConocoPhillips | ~8% | |
| 4 | WMB | Williams Companies | ~5% | |
| 5 | EOG | EOG Resources | ~4% | |
| 6 | KMI | Kinder Morgan | ~4% | |
| 7 | SLB | Schlumberger | ~4% | |
| 8 | OKE | ONEOK | ~4% | |
| 9 | PSX | Phillips 66 | ~3% | |
| 10 | MPC | Marathon Petroleum | ~3% |
The remaining holdings make up the balance of the fund, with weights tapering off below the top names. Because the index reconstitutes on a rolling basis, the roster stays current without active management. Each ticker above links to its individual stock guide in Walnut.
The bottom line on XLE
XLE is a low-cost way to express a view on US energy in one ticker, dominated by ExxonMobil and Chevron and tightly linked to oil and gas prices. It works as a sector tilt or inflation hedge sized around a broad core, not as a diversified holding, and it can move very differently from the overall market.
More on XLE
Whether XLE is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, concentration, and what would have to be true for it to outperform from here in is XLE a buy?
XLE yields ~3.2% as of early 2026, paid by passing through the dividends of its underlying holdings. For the payout schedule, history, and how the distributions are taxed, see XLE dividend: yield and schedule.
Build a portfolio around XLE with Walnut
Use XLE as your core holding, then let Walnut's AI propose thematic satellites: AI infrastructure, dividend growth, clean energy, whatever you believe in. Connect your broker, build the basket in conversation, track it as one unit.
FAQ
What is XLE?
+
XLE is the Energy Select Sector SPDR Fund, a single ticker that holds the energy sector of the S&P 500: large US oil and gas producers, refiners, and energy equipment and services companies. It is a sector fund, so it tracks energy rather than the broad market.
What is XLE's expense ratio?
+
0.08% per year (8 basis points) as of early 2026. On a $10,000 investment, that is about $8 per year in fees, low for a sector ETF. Verify the current figure on the State Street site.
What companies are in XLE?
+
The energy names of the S&P 500, led by ExxonMobil and Chevron, which together can be roughly 40% of the fund, followed by ConocoPhillips, Williams, EOG Resources, Kinder Morgan, Schlumberger, ONEOK, Phillips 66, and Marathon Petroleum. Weights are approximate, verify on the issuer's site.
Why is XLE so concentrated?
+
The S&P 500 energy sector is dominated by two very large companies, ExxonMobil and Chevron, so a market-cap-weighted fund like XLE inherits that concentration. The top two holdings alone can make up around 40% of the fund, which means XLE leans heavily on those two names.
XLE vs VOO: what's the difference?
+
VOO holds all 11 sectors of the S&P 500. XLE holds only the energy sector. XLE is a concentrated bet that moves with oil and gas prices, while VOO is diversified across the whole index. The two can behave very differently in a given year. Walnut is not an investment adviser, so this is not a recommendation.
Does XLE pay a dividend?
+
Yes, quarterly. The trailing yield is approximately 3.2% as of early 2026, higher than the broad market because large oil and gas companies tend to pay sizable dividends. The yield varies with commodity prices and company payouts.
What drives XLE?
+
XLE is closely tied to oil and natural gas prices, which in turn depend on global supply and demand, OPEC decisions, and the economic cycle. Because energy earnings are commodity-driven, XLE can be volatile and often moves on a different cycle from technology and the broad market.
What is XLE's AUM?
+
Approximately $35 billion as of early 2026. The exact figure moves with markets and flows, so verify on the State Street site.
When was XLE created?
+
December 1998. XLE is one of the original Select Sector SPDR funds and is the standard vehicle for large-cap US energy exposure.
How do I buy XLE?
+
XLE trades like any stock during US market hours. Buy it through any broker: Robinhood, Fidelity, Schwab, Public, M1, or others. Fractional shares are supported at most modern brokers. Connect your broker to Walnut and the AI can show how an energy tilt like XLE fits with your core.
Is XLE a good investment?
+
XLE gives a concentrated, low-cost bet on US energy that moves with commodity prices and is often used as an inflation hedge or sector tilt. Whether it fits depends on your view of energy, your time horizon, and what else you own. Walnut is not an investment adviser, so this is not a recommendation.
How do I compare XLE to similar ETFs?
+
Put a few fields side by side: the expense ratio (fees compound over decades), the index or strategy it tracks, the top holdings and how much they overlap with what you already own, the dividend yield, and the AUM, liquidity, and bid-ask spread that affect trading costs. For index funds, tracking error (how closely it follows its index) and tax efficiency matter too. XLE's figures are above; the full method is in Walnut's guide on how to compare ETFs.
Related ETFs
Walnut is informational, not investment advice. Holdings weights and fund statistics on this page are approximations stamped to early 2026; verify current figures against State Street SPDR's fund page or your broker before investing.