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Is State Street SPDR S&P Oil & Gas Equipment & Services ETF (XES) a Strong ETF Right Now?
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Making its debut on 06/19/2006, smart beta exchange traded fund State Street SPDR S&P Oil & Gas Equipment & Services ETF (XES - Free Report) provides investors broad exposure to the Energy ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $253.47 million, this makes it one of the average sized ETFs in the Energy ETFs. XES is managed by State Street Investment Management. This particular fund seeks to match the performance of the S&P Oil & Gas Equipment & Services Select Industry Index before fees and expenses.
The S&P Oil & Gas Equipment & Services Select Industry Index represents the oil and gas equipment and services sub-industry portion of the S&P Total Markets Index. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX,NASDAQ National Market and NASDAQ Small Cap exchanges. The Oil & Gas Equipment Index is a modified equal weight index.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.35% for this ETF, which makes it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.70%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
XES's heaviest allocation is in the Energy sector, which is about 100% of the portfolio.
When you look at individual holdings, Liberty Energy Inc (LBRT) accounts for about 6.79% of the fund's total assets, followed by Helmerich + Payne (HP) and Transocean Ltd (RIG).
The top 10 holdings account for about 49.89% of total assets under management.
Performance and Risk
Year-to-date, the State Street SPDR S&P Oil & Gas Equipment & Services ETF has added about 4.69% so far, and it's up approximately 8.74% over the last 12 months (as of 12/26/2025). XES has traded between $52.84 $87.75 in this past 52-week period.
XES has a beta of 0.96 and standard deviation of 34.29% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers .
Alternatives
State Street SPDR S&P Oil & Gas Equipment & Services ETF is not a suitable option for investors seeking to outperform the Energy ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
iShares U.S. Oil Equipment & Services ETF (IEZ) tracks Dow Jones U.S. Select Oil Equipment & Services Index and the VanEck Oil Services ETF (OIH) tracks MVIS U.S. Listed Oil Services 25 Index. iShares U.S. Oil Equipment & Services ETF has $133.58 million in assets, VanEck Oil Services ETF has $1.33 billion. IEZ has an expense ratio of 0.38% and OIH changes 0.35%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Energy ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Is State Street SPDR S&P Oil & Gas Equipment & Services ETF (XES) a Strong ETF Right Now?
Making its debut on 06/19/2006, smart beta exchange traded fund State Street SPDR S&P Oil & Gas Equipment & Services ETF (XES - Free Report) provides investors broad exposure to the Energy ETFs category of the market.
What Are Smart Beta ETFs?
Market cap weighted indexes were created to reflect the market, or a specific segment of the market, and the ETF industry has traditionally been dominated by products based on this strategy.
Market cap weighted indexes work great for investors who believe in market efficiency. They provide a low-cost, convenient and transparent way of replicating market returns.
But, there are some investors who would rather invest in smart beta funds; these funds track non-cap weighted strategies, and are a strong option for those who prefer choosing great stocks in order to beat the market.
These indexes attempt to select stocks that have better chances of risk-return performance, based on certain fundamental characteristics or a combination of such characteristics.
The smart beta space gives investors many different choices, from equal-weighting, one of the simplest strategies, to more complicated ones like fundamental and volatility/momentum based weighting. However, not all of these methodologies have been able to deliver remarkable returns.
Fund Sponsor & Index
Because the fund has amassed over $253.47 million, this makes it one of the average sized ETFs in the Energy ETFs. XES is managed by State Street Investment Management. This particular fund seeks to match the performance of the S&P Oil & Gas Equipment & Services Select Industry Index before fees and expenses.
The S&P Oil & Gas Equipment & Services Select Industry Index represents the oil and gas equipment and services sub-industry portion of the S&P Total Markets Index. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX,NASDAQ National Market and NASDAQ Small Cap exchanges. The Oil & Gas Equipment Index is a modified equal weight index.
Cost & Other Expenses
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Operating expenses on an annual basis are 0.35% for this ETF, which makes it one of the least expensive products in the space.
The fund has a 12-month trailing dividend yield of 1.70%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
XES's heaviest allocation is in the Energy sector, which is about 100% of the portfolio.
When you look at individual holdings, Liberty Energy Inc (LBRT) accounts for about 6.79% of the fund's total assets, followed by Helmerich + Payne (HP) and Transocean Ltd (RIG).
The top 10 holdings account for about 49.89% of total assets under management.
Performance and Risk
Year-to-date, the State Street SPDR S&P Oil & Gas Equipment & Services ETF has added about 4.69% so far, and it's up approximately 8.74% over the last 12 months (as of 12/26/2025). XES has traded between $52.84 $87.75 in this past 52-week period.
XES has a beta of 0.96 and standard deviation of 34.29% for the trailing three-year period, which makes the fund a high risk choice in the space. With about 32 holdings, it has more concentrated exposure than peers .
Alternatives
State Street SPDR S&P Oil & Gas Equipment & Services ETF is not a suitable option for investors seeking to outperform the Energy ETFs segment of the market. Instead, there are other ETFs in the space which investors should consider.
iShares U.S. Oil Equipment & Services ETF (IEZ) tracks Dow Jones U.S. Select Oil Equipment & Services Index and the VanEck Oil Services ETF (OIH) tracks MVIS U.S. Listed Oil Services 25 Index. iShares U.S. Oil Equipment & Services ETF has $133.58 million in assets, VanEck Oil Services ETF has $1.33 billion. IEZ has an expense ratio of 0.38% and OIH changes 0.35%.
Investors looking for cheaper and lower-risk options should consider traditional market cap weighted ETFs that aim to match the returns of the Energy ETFs
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.