Energy Trounced All Other Sectors In The First Quarter

Energy Trounced All Other Sectors In The First Quarter

Share to Linkedin The logo for ExxonMobil appears above a trading post on the floor of the New York Stock Exchange, ... [+] Tuesday, Oct. 8, 2019. (AP Photo/Richard Drew) After three abysmal quarters in 2020 “” due to the triple whammy of an oil price war between Saudi Arabia and Russia, demand destruction as a result of the Covid-19 pandemic, and perceptions that oil is giving up its dominance to renewable energy and electric vehicles “” the energy sector has dramatically picked up over the past two quarters. The Energy Select Sector SPDR ETF XLE tracks an index of energy companies in the S&P 500. The XLE represents the stocks of large energy companies from different sub-sectors (e. g., integrated, oil production, equipment services). It is, therefore, a good benchmark for conservative energy investors. Some of the XLE's biggest holdings are ExxonMobil XOM , Chevron CVX , ConocoPhillips COP , EOG Resources EOG , and Schlumberger SLB . As the energy sector plunged in February and March 2020, at one point the XLE was down more than 60%. The XLE bounced back strongly in the fourth quarter with a sector-leading return of 28. 2%, but still ended the year