E&P ETFs Still Merritt Consideration

RBC Capital Markets’ Lori Calvasina is among the analysts that are bullish on energy stocks, citing sound fundamentals.

“While energy stocks have certainly outperformed since then, Calvasina thinks that solid fundamentals, an improving environment for oil prices, positive macro tailwinds, and extremely strong earnings and revenue revisions, bode well for the sector,” according to Barron’s.

Some analysts speculate that smaller energy companies could poised for a period of out-performance over their large-cap counterparts. While the weighted average market value of XOP’s 69 holdings is $23.88 billion, as an equal-weight ETF, XOP does offer more small- and mid-cap exposure than cap-weighted rivals.

For more news on oil ETFs, visit our energy category.