Conversely, XLE, which tracks the sector currently most undervalued against the S&P 500, is EQL’s smallest holding. AltaVista has a bold overweight rating, the only one of the nine SPDRs the research firm currently applies that rating to.
“Profit expectations have been deteriorating rapidly as oil prices have fallen, and OPEC’s recent decision to maintain production levels is confirmation that larger supplies from America’s shale oil & gas revolution means lower energy prices–great for consumers but a threat to the long-term profitability of Energy firms. The Energy sector appears attractive in terms of valuation, but momentum isn’t currently in the sector’s favor,” said AltaVista.
EQL’s estimated 2015 P/E is 16.7 with a price-to-book ratio of 2.3, according to AltaVista data. The ETF charges 0.54 per year.
ALPS Equal Sector Weight ETF