While PXE offers plenty of exposure to exploration and production companies, a trait investors are accustomed to with the largest energy ETFs, the fund also features one of the largest downstream allocations of any ETF as refining and marketing names account for 34.3% of the fund’s weight.
Valero (NYSE: VLO), Phillips 66 (NYSE: PSX), Marathon Petroleum (NYSE: MPC) and Western Refining are four of PXE’s top 17 holdings, positioning the ETF nicely for a rebound in refining stocks. [Energy ETFs for a Refining Rebound]
The energy sector has been viewed as a value play this year and PXE’s valuation jibes with that view. PXE’s P/E ratio is 15.79 and price-to-book ratio of 1.73 compare favorably with the same ratios found on some cap-weighted energy ETFs. Additionally, the Dynamic Energy Exploration & Production Intellidex Index has outperformed the S&P Oil & Gas Exploration & Production over the past three yeas and five years, according to PowerShares data.
PowerShares Dynamic Energy Exploration & Production Portfolio
