XLE, the largest equity-based energy ETF, has an average December gain of just over 2.5% dating back to 1999, according to CXO data. With oil prices sliding, things could be much different for XLE and rival energy ETFs this year. Although investors poured over $1.1 billion into the fund last month, XLE slid 7.3% while the S&P 500 gained 2.5%. [Traders Dodge Bearish Oil ETFs]
As for the two worst sector SPDRs in December, that dubious honor belongs to the Consumer Staples Select Sector SPDR (NYSEArca: XLP) and the Technology Select Sector SPDR (NYSEArca: XLK), though it should be noted both ETFs usually generate small December gains.
XLP could be plagued by rich valuation multiples, but the outlook is a bit more sanguine for XLK. Not only are multiples on large-cap, mature tech names reasonable, but XLK, the largest technology sector ETF, is historically the second-best SPDR in January, according to CXO data..
Materials Select Sector SPDR
