XLE News & Analysis
3 articles
Market Mood
USO Surged 70% YTD vs XLE's 29% Amid Market Dynamics
As of July 13, 2026, the United States Oil Fund (USO) has gained 70.32% year-to-date, significantly outpacing the Energy Select Sector SPDR Fund (XLE), which has increased by 28.64%. Over the past ten years, XLE has returned 146.29%, while USO's return stood at 33.97%. The differences arise from how these funds operate in contango markets, where USO sells low and buys high when rolling futures, unlike XLE, which benefits from dividends and stock buybacks. This performance disparity highlights the risks of short-term trading versus long-term investing for energy equity investors.
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Breakwave Tanker ETF (BWET) Surges Over 600% Amid Geopolitical Tensions
The Breakwave Tanker Shipping ETF (BWET) has increased over 600% year-to-date due to rising crude oil tanker freight costs amid ongoing geopolitical tensions. This ETF, launched in May 2023 and currently valued at $30 million, is capturing investor interest as traditional energy stocks like the U.S. Oil Fund (USO) rose close to 90% and the SPDR State Street Energy Select Sector ETF (XLE) increased over 23%. The Baltic Exchange Dry Index also recorded a 41% gain this year. The focus on shipping costs signifies a shift in investor strategy regarding energy volatility and infrastructure investments.
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XLK and XLE ETF Strategy Yields Positive Returns Since 2020
Billionaire investor John Arnold highlighted his investment approach via a recent tweet, showcasing the performance of the Select Sector SPDR ETFs, XLK and XLE, from 2020 to 2026 YTD. The 50/50 split of these ETFs recorded year-over-year positive returns in six out of seven years, notably outperforming the SPDR S&P 500 ETF Trust (SPY) in four of those years. For 2022, the 50/50 split maintained a positive return while the SPY reported a -19.5% decline. As of 2026 YTD, the 50/50 split showed a -8% performance compared to SPY's -7%.
Read More: XLK and XLE ETF Strategy Yields Positive Returns Since 2020