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Energy ETFs in Focus After Exxon, Chevron's Q4 Earnings Beat
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Two energy behemoths — Exxon Mobil Corp. (XOM - Free Report) and Chevron Corp. (CVX - Free Report) — reported mixed fourth-quarter earnings. Both companies beat on the bottom line while missing on the top line. However, both Exxon Mobil and Chevron reported their second-biggest profit in a decade despite a fall in oil prices as strong U.S. oil production boosted revenues.
This has put the focus on energy ETFs like Energy Select Sector SPDR (XLE - Free Report) , Vanguard Energy ETF (VDE - Free Report) , iShares U.S. Energy ETF (IYE - Free Report) , Fidelity MSCI Energy Index ETF (FENY - Free Report) and Strive U.S. Energy ETF (DRLL - Free Report) , with the largest allocation to the energy behemoths.
Earnings in Focus
The largest U.S. oil producer, Exxon Mobil, posted earnings per share of $2.48, beating the Zacks Consensus Estimate of $2.21 but lower than the year-ago earnings of $3.40. Revenues fell 11% year over year to $84.34 billion and also lagged the consensus mark of $91.81 billion. For 2023, profit declined 35% year over year to $36 billion but represented its second-highest annual profit since 2012.
Earnings per share at Chevron came in at $3.45, which beat the Zacks Consensus Estimate of $3.29 but declined from the year-ago earnings of $4.09 per share. Revenues declined 16.5% year over year to $47.2 billion and lagged the consensus mark of $52.6 billion. Chevron raised its quarterly dividend by 8% to $1.63 from $1.51. Chevron's profit plunged 40% year over year to $21.4 billion in 2023 but represents its highest level since 2013.
Energy Select Sector SPDR is the largest and the most popular ETF in the energy space, with AUM of $35.6 billion and an average daily volume of 18 million shares per day. It offers exposure to the broad energy space and follows the Energy Select Sector Index. Energy Select Sector SPDR holds 23 securities in its basket, with Exxon Mobil and Chevron occupying the top two spots with 23% and an 18% share, respectively (read: 4 Sectors & Its ETFs to Play Solid Dividend & Buyback Yield).
Energy Select Sector SPDR charges 9 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
Vanguard Energy ETF provides exposure to a basket of 115 energy stocks by tracking the MSCI US Investable Market Energy 25/50 Index. Here again, Exxon and Chevron are the two leading firms with a 21.5% and 14.5% allocation, respectively.
Vanguard Energy ETF has amassed $8 billion in its asset base. It sees a good volume of about 607,000 shares. It charges 10 bps in annual fees and has a Zacks ETF Rank #1 with a High risk outlook.
iShares U.S. Energy ETF tracks the Russell 1000 Energy RIC 22.5/45 Capped Gross Index (USD), giving investors exposure to U.S. companies that produce and distribute oil and gas. It holds 40 stocks in its basket, with Exxon Mobil and Chevron taking the top two positions at 22.6% and 15.2% share, respectively.
iShares U.S. Energy ETF charges 40 bps in fees per year from its investors. It has AUM of $1.2 billion and an average daily volume of about 505,000 shares. The product has a Zacks ETF Rank #2 with a High risk outlook.
Fidelity MSCI Energy Index ETF fund follows the MSCI USA IMI Energy Index, holding 121 stocks in its basket. Of these, XOM and CVX take the top two spots at 21.4% and 14.5%, respectively.
Fidelity MSCI Energy Index ETF charges 8 bps in annual fees and trades in a good volume of around 583,000 shares. It has accumulated $1.4 billion in its asset base and has a Zacks ETF Rank #3 (Hold) with a High risk outlook (see: all the Energy ETFs here).
Strive U.S. Energy ETF seeks broad market exposure to the U.S. energy sector and follows the Solactive United States Energy Regulated Capped Index. It holds 63 stocks in its basket, with Exxon Mobil and Chevron taking the top two positions at 20.9% and 14.5% share, respectively.
Strive U.S. Energy ETF has gathered $322.2 million in its asset base. It charges 41 bps in fees per year from investors and trades in an average daily volume of 43,000 shares. DRLL has a Zacks ETF Rank #2.
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Energy ETFs in Focus After Exxon, Chevron's Q4 Earnings Beat
Two energy behemoths — Exxon Mobil Corp. (XOM - Free Report) and Chevron Corp. (CVX - Free Report) — reported mixed fourth-quarter earnings. Both companies beat on the bottom line while missing on the top line. However, both Exxon Mobil and Chevron reported their second-biggest profit in a decade despite a fall in oil prices as strong U.S. oil production boosted revenues.
This has put the focus on energy ETFs like Energy Select Sector SPDR (XLE - Free Report) , Vanguard Energy ETF (VDE - Free Report) , iShares U.S. Energy ETF (IYE - Free Report) , Fidelity MSCI Energy Index ETF (FENY - Free Report) and Strive U.S. Energy ETF (DRLL - Free Report) , with the largest allocation to the energy behemoths.
Earnings in Focus
The largest U.S. oil producer, Exxon Mobil, posted earnings per share of $2.48, beating the Zacks Consensus Estimate of $2.21 but lower than the year-ago earnings of $3.40. Revenues fell 11% year over year to $84.34 billion and also lagged the consensus mark of $91.81 billion. For 2023, profit declined 35% year over year to $36 billion but represented its second-highest annual profit since 2012.
Earnings per share at Chevron came in at $3.45, which beat the Zacks Consensus Estimate of $3.29 but declined from the year-ago earnings of $4.09 per share. Revenues declined 16.5% year over year to $47.2 billion and lagged the consensus mark of $52.6 billion. Chevron raised its quarterly dividend by 8% to $1.63 from $1.51. Chevron's profit plunged 40% year over year to $21.4 billion in 2023 but represents its highest level since 2013.
ETFs in Focus
Energy Select Sector SPDR (XLE - Free Report)
Energy Select Sector SPDR is the largest and the most popular ETF in the energy space, with AUM of $35.6 billion and an average daily volume of 18 million shares per day. It offers exposure to the broad energy space and follows the Energy Select Sector Index. Energy Select Sector SPDR holds 23 securities in its basket, with Exxon Mobil and Chevron occupying the top two spots with 23% and an 18% share, respectively (read: 4 Sectors & Its ETFs to Play Solid Dividend & Buyback Yield).
Energy Select Sector SPDR charges 9 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
Vanguard Energy ETF (VDE - Free Report)
Vanguard Energy ETF provides exposure to a basket of 115 energy stocks by tracking the MSCI US Investable Market Energy 25/50 Index. Here again, Exxon and Chevron are the two leading firms with a 21.5% and 14.5% allocation, respectively.
Vanguard Energy ETF has amassed $8 billion in its asset base. It sees a good volume of about 607,000 shares. It charges 10 bps in annual fees and has a Zacks ETF Rank #1 with a High risk outlook.
iShares U.S. Energy ETF (IYE - Free Report)
iShares U.S. Energy ETF tracks the Russell 1000 Energy RIC 22.5/45 Capped Gross Index (USD), giving investors exposure to U.S. companies that produce and distribute oil and gas. It holds 40 stocks in its basket, with Exxon Mobil and Chevron taking the top two positions at 22.6% and 15.2% share, respectively.
iShares U.S. Energy ETF charges 40 bps in fees per year from its investors. It has AUM of $1.2 billion and an average daily volume of about 505,000 shares. The product has a Zacks ETF Rank #2 with a High risk outlook.
Fidelity MSCI Energy Index ETF (FENY - Free Report)
Fidelity MSCI Energy Index ETF fund follows the MSCI USA IMI Energy Index, holding 121 stocks in its basket. Of these, XOM and CVX take the top two spots at 21.4% and 14.5%, respectively.
Fidelity MSCI Energy Index ETF charges 8 bps in annual fees and trades in a good volume of around 583,000 shares. It has accumulated $1.4 billion in its asset base and has a Zacks ETF Rank #3 (Hold) with a High risk outlook (see: all the Energy ETFs here).
Strive U.S. Energy ETF (DRLL - Free Report)
Strive U.S. Energy ETF seeks broad market exposure to the U.S. energy sector and follows the Solactive United States Energy Regulated Capped Index. It holds 63 stocks in its basket, with Exxon Mobil and Chevron taking the top two positions at 20.9% and 14.5% share, respectively.
Strive U.S. Energy ETF has gathered $322.2 million in its asset base. It charges 41 bps in fees per year from investors and trades in an average daily volume of 43,000 shares. DRLL has a Zacks ETF Rank #2.