“And while we’re on the topic of XLE extremes, we would be remiss not to point out that, following a 17.68% decline in the reporting period ended April 1, short interest on the energy fund is now at its lowest point — just 18.49 million shares — since September 2009,” notes Schaeffer’s.
Favorable seasonality is also playing a role in the resurgence of the energy sector.
“Since inception, the fund has delivered its biggest average monthly return of the year — a gain of 3.4% — during April,” according to Schaeffer’s.
Rivals to XLE include the Vanguard Energy ETF (NYSEArca: VDE), iShares U.S. Energy ETF (NYSEArca: IYE) and the Fidelity MSCI Energy Index ETF (NYSEArca: FENY). Exxon is the largest holding in all of those ETFs with ConocoPhillips figuring prominently in the lineups of each of those funds.
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