The State Street SPDR S&P Oil & Gas Equipment & Services ETF (XES) was launched on June 19, 2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Energy - Equipment and services segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Equipment and services is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 1, placing it in top 6%.
Index Details
The fund is sponsored by State Street Investment Management. It has amassed assets over $540.92 million, making it one of the average sized ETFs attempting to match the performance of the Energy - Equipment and services segment of the equity market. XES seeks to match the performance of the S&P Oil & Gas Equipment & Services Select Industry Index before fees and expenses.
The S&P Oil & Gas Equipment & Services Select Industry Index represents the oil and gas equipment and services sub-industry portion of the S&P Total Markets Index. The S&P TMI tracks all the U.S. common stocks listed on the NYSE, AMEX,NASDAQ National Market and NASDAQ Small Cap exchanges. The Oil & Gas Equipment Index is a modified equal weight index.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.08%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector -- about 100% of the portfolio.
Looking at individual holdings, Tidewater Inc (TDW) accounts for about 4.46% of total assets, followed by Seadrill Limited (SDRL) and Technipfmc Plc (FTI).The top 10 holdings account for about 42.76% of total assets under management.
Performance and Risk
The ETF has gained about 56.82% and is up about 119.3% so far this year and in the past one year (as of 04/29/2026), respectively. XES has traded between $57.24 and $128.22 during this last 52-week period.
The ETF has a beta of 0.91 and standard deviation of 32.99% for the trailing three-year period, making it a high risk choice in the space. With about 35 holdings, it has more concentrated exposure than peers.
Alternatives
State Street SPDR S&P Oil & Gas Equipment & Services ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, XES is a great option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
iShares U.S. Oil Equipment & Services ETF (IEZ) tracks Dow Jones U.S. Select Oil Equipment & Services Index and the VanEck Oil Services ETF (OIH) tracks MVIS U.S. Listed Oil Services 25 Index. iShares U.S. Oil Equipment & Services ETF has $525.22 million in assets, VanEck Oil Services ETF has $2.47 billion. IEZ has an expense ratio of 0.38%, and OIH charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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State Street SPDR S&P Oil & Gas Equipment & Services ETF (XES): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).