XOP is an equal weight ETF and, in a departure from cap-weighted equivalents, Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) are not among XOP’s top-10 holdings. In fact, integrated oil stocks represent just 5% of the ETF’s weight and that’s important because the aforementioned seasonality is most efficacious to exploration and production and oil services names. [Buy Now: Energy ETFs]
“Here is the Daily price chart. XOP was stuck inside the parallel green channel late last year before finally breaking out last month! Often times, a breakout will include a pullback to the breakout point (also know as a test) before continuing on,” according to Captain John Charts.
Chart Courtesy: Captain John Charts
The bullish outlook for XOP comes with the ETF just 5.4% below its 52-week and after the fund surged 8.8% last month. Investors are noticing. On Feb. 21, XOP had $959 million in assets under management. As of Feb. 27, that number was up to $1.15 billion, according to State Street data.