As of Dec. 26, there was $311.1 billion allocated to sector ETFs with energy ETFs accounting for $44.7 billion of that total, according to Bloomberg.
Valuations are one reason energy ETFs are teeming with new assets. XLE sports a P/E ratio of just 13.8 compared to almost 18.9 for the S&P 500, according to State Street data.
Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX), the two largest U.S. oil companies, have forward P/E’s of 16.4 and 15.6, respectively. The two stocks, which combine for over 30% of XLE’s weight, are two of just five members of the Dow Jones Industrial Average to trade lower this year.
Energy Select Sector SPDR
