As an equal-weight ETF, XOP is not excessively exposed to any of those names on an individual basis, but in aggregate, continued downside for those stocks will be problematic for the ETF. Of the stocks mentioned above, XOP does not hold shares of Resolute Resources, but the rest of the names combine for nearly 12% of the ETF’s weight.

Some of those names, including Chesapeake and Whiting Petroleum, are becoming favorite destinations for short seller. [Short Sellers Love This ETF’s Holdings]

IEO is cap-weighted, so its exposure to some of the stocks downgraded by Barclays is even heavier than XOP’s. For example, Devon, Marathon Oil and Chesapeake combine for 9.5% of IEO’s weight.

SPDR S&P Oil & Gas Exploration & Production ETF