XLE VS IXC
4 min read
By Beqa Bumbeishvili, ETF Insider

XLE VS IXC

Exchange-Traded Funds (ETFs) have transformed the way investors approach the financial markets, offering a convenient and diversified way to gain exposure to various sectors and asset classes. In this article, we will conduct a thorough analysis and comparison of two prominent energy-related ETFs: XLE (Energy Select Sector SPDR Fund) and IXC (iShares Global Energy ETF). We'll delve into key aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, investment strategy, tracking methods, and exposure.

XLE Vs IXC: Overview

XLE and IXC are two energy-focused ETFs that cater to investors seeking exposure to the global energy industry. While both ETFs operate within the same sector, their investment approaches and underlying holdings differ significantly. XLE primarily tracks energy companies within the S&P 500 Index, while IXC provides broader international exposure to the energy sector, including companies outside the United States.

XLE Vs IXC: Sectors and Top Holdings

The XLE ETF focuses on a wide range of energy sub-sectors, including oil, gas, and renewable energy companies. Its top holdings often include major industry players like Exxon Mobil, Chevron, and ConocoPhillips. On the other hand, IXC casts a wider net by including global energy giants such as Royal Dutch Shell, BP, and TotalEnergies. Understanding the sectors and top holdings of these ETFs is crucial for investors looking to align their portfolio with specific energy industry segments.

XLE  overlap XLE VS IXCXLE overlap XLE VS IXC

XLE Vs IXC: Capitalization and Investment Strategy

XLE boasts a substantial asset under management (AUM) due to its connection with the S&P 500 Index and its inclusion of large-cap energy companies. The fund's investment strategy is centered around tracking the performance of these established energy corporations. In contrast, IXC's strategy involves offering a diversified portfolio of energy stocks from various regions around the world. The differences in capitalization and investment approach can lead to varying risk and return profiles for the two ETFs.

XLE Vs IXC: Tracking Methods and Exposure

The XLE ETF primarily tracks the performance of the Energy Select Sector Index, which includes companies within the energy sector of the S&P 500. This index-weighted approach means that larger companies have a more significant impact on the ETF's performance. IXC, on the other hand, aims to mirror the performance of the S&P Global 1200 Energy Sector Index, providing exposure to energy companies across multiple regions and market capitalizations. Recognizing the nuances of these tracking methods and exposures is vital for investors seeking to align their investments with specific benchmarks.

Conclusion

In the world of energy ETFs, XLE and IXC stand out as notable choices for investors seeking exposure to the dynamic energy sector. As you consider your investment strategy, it's essential to weigh factors such as geographical diversification, sector focus, and risk tolerance. For those keen on digging deeper into ETF holdings, correlations, overlaps, and more, consider using ETF Insider, an intuitive and user-friendly app that provides comprehensive insights into various financial instruments.

Disclaimer: This article is intended for informational purposes only and does not offer investment advisory services. Always conduct thorough research and consult with financial professionals before making any investment decisions.

Sources:
[Link to a reliable source on ETFs]
[Link to a reliable source on energy market trends]
[Link to an authoritative financial news website]

XLE quote and analysis

Discover the top holdings, correlations, and overlaps of ETFs using our visualization tool.
Our app allows you to build and track your portfolio.
To learn more about the XLE Energy Select Sector SPDR Fund, access our dedicated page now.

Get started

FAQ

  • Why is XLE better than IXC?

    XLE may be considered better than IXC for some investors due to its specific focus, offering diversification.

  • Does IXC beat XLE?

    IXC's performance relative to XLE will vary over time, depending on market conditions.

  • Should I invest in XLE or IXC?

    The choice between XLE and IXC should align with your investment goals, risk tolerance, and desired exposure.

  • Are XLE and IXC good investments?

    Both XLE and IXC can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between XLE and IXC?

    The correlation between XLE and IXC can vary over time, reflecting differences in performance.