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Energy ETFs in Focus Post Exxon, Chevron Q4 Earnings
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The pandemic-led lockdowns have been hurting oil consumption across the world putting huge pressure on oil price and profitability in the energy sector.
In particular, earnings from the two U.S. supermajor oil producers, namely Exxon Mobil (XOM - Free Report) and Chevron (CVX - Free Report) have been mixed. While Exxon outpaced earnings estimates, Chevron missed. On the other hand, revenues from both companies fell shy of estimates (see: all the Energy ETFs here).
Earnings in Focus
The largest U.S. oil producer Exxon Mobil came up with earnings of 3 cents per share, beating the Zacks Consensus Estimate of a penny. In the year-ago quarter, the company reported earnings of 41 cents per share. Revenues tumbled 30.7% year over year to $46.5 billion and fell shy of the estimated figure of $48.6 billion.
Chevron reported a loss of one cent. The Zacks Consensus Estimate was earnings of 8 cents. The company had earned $1.49 per share in the year-ago period. Revenues plunged 30.5% year over year to $25.2 billion and fell short of the consensus mark of $27.3 billion.
ETFs in Focus
Following the results, energy ETFs with the largest allocation to the energy behemoths are in focus. Below we highlight a few in details.
This is the largest and the most-popular ETF in the energy space with AUM of $16.5 billion and an average daily volume of 32.2 million shares per day. Expense ratio is 0.12%. The fund follows the Energy Select Sector Index and holds 24 securities in its basket. Exxon Mobil and Chevron occupy the top two spots with 24% and 21.8% share, respectively. The product has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: Cyclical ETFs in Spotlight on Biden's American Rescue Plan).
This ETF tracks the Dow Jones U.S. Oil & Gas Index, giving investors exposure to U.S. companies that produce and distribute oil and gas. It holds 33 stocks in its basket with AUM of $567.7 million and an average daily volume of about 2 million shares. The product charges 42 bps in fees per year from its investors. Exxon Mobil and Chevron occupy the top two positions in the basket, taking the bigger chunk of assets at 23% and 19.9%, respectively. The product has a Zacks ETF Rank #3 with a High risk outlook.
This fund manages $3.8 billion in asset base and provides exposure to a basket of 103 energy stocks by tracking the MSCI US Investable Market Energy 25/50 Index. The product sees a good volume of about 1.2 million shares and charges 10 bps in annual fees. Here again, Exxon and Chevron are the two leading firms with respectively 20.9% and 19.6% allocation. VDE has a Zacks ETF Rank #3 with a High risk outlook (read: ETFs to Shine as Oil Gains on Stimulus Optimism).
The fund follows the MSCI USA IMI Energy Index, holding 85 stocks in its basket. Of these, XOM and CVX take the top two spots at 21% and 19.7%, respectively. The product charges 8 bps in annual fees and trades in a good volume of around 914,000 shares. It has accumulated $679.8 million in its asset base.
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Energy ETFs in Focus Post Exxon, Chevron Q4 Earnings
The pandemic-led lockdowns have been hurting oil consumption across the world putting huge pressure on oil price and profitability in the energy sector.
In particular, earnings from the two U.S. supermajor oil producers, namely Exxon Mobil (XOM - Free Report) and Chevron (CVX - Free Report) have been mixed. While Exxon outpaced earnings estimates, Chevron missed. On the other hand, revenues from both companies fell shy of estimates (see: all the Energy ETFs here).
Earnings in Focus
The largest U.S. oil producer Exxon Mobil came up with earnings of 3 cents per share, beating the Zacks Consensus Estimate of a penny. In the year-ago quarter, the company reported earnings of 41 cents per share. Revenues tumbled 30.7% year over year to $46.5 billion and fell shy of the estimated figure of $48.6 billion.
Chevron reported a loss of one cent. The Zacks Consensus Estimate was earnings of 8 cents. The company had earned $1.49 per share in the year-ago period. Revenues plunged 30.5% year over year to $25.2 billion and fell short of the consensus mark of $27.3 billion.
ETFs in Focus
Following the results, energy ETFs with the largest allocation to the energy behemoths are in focus. Below we highlight a few in details.
Energy Select Sector SPDR (XLE - Free Report)
This is the largest and the most-popular ETF in the energy space with AUM of $16.5 billion and an average daily volume of 32.2 million shares per day. Expense ratio is 0.12%. The fund follows the Energy Select Sector Index and holds 24 securities in its basket. Exxon Mobil and Chevron occupy the top two spots with 24% and 21.8% share, respectively. The product has a Zacks ETF Rank #3 (Hold) with a High risk outlook (read: Cyclical ETFs in Spotlight on Biden's American Rescue Plan).
iShares U.S. Energy ETF (IYE - Free Report)
This ETF tracks the Dow Jones U.S. Oil & Gas Index, giving investors exposure to U.S. companies that produce and distribute oil and gas. It holds 33 stocks in its basket with AUM of $567.7 million and an average daily volume of about 2 million shares. The product charges 42 bps in fees per year from its investors. Exxon Mobil and Chevron occupy the top two positions in the basket, taking the bigger chunk of assets at 23% and 19.9%, respectively. The product has a Zacks ETF Rank #3 with a High risk outlook.
Vanguard Energy ETF (VDE - Free Report)
This fund manages $3.8 billion in asset base and provides exposure to a basket of 103 energy stocks by tracking the MSCI US Investable Market Energy 25/50 Index. The product sees a good volume of about 1.2 million shares and charges 10 bps in annual fees. Here again, Exxon and Chevron are the two leading firms with respectively 20.9% and 19.6% allocation. VDE has a Zacks ETF Rank #3 with a High risk outlook (read: ETFs to Shine as Oil Gains on Stimulus Optimism).
Fidelity MSCI Energy Index ETF (FENY - Free Report)
The fund follows the MSCI USA IMI Energy Index, holding 85 stocks in its basket. Of these, XOM and CVX take the top two spots at 21% and 19.7%, respectively. The product charges 8 bps in annual fees and trades in a good volume of around 914,000 shares. It has accumulated $679.8 million in its asset base.
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>