If you're interested in broad exposure to the Energy - Equipment and services segment of the equity market, look no further than the State Street SPDR S&P Oil & Gas Equipment & Services ETF (XES), a passively managed exchange traded fund launched on June 19, 2006.
Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient 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 15, placing it in bottom 6%.
Index Details
The fund is sponsored by State Street Investment Management. It has amassed assets over $415.63 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
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
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 1.24%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. 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, Patterson Uti Energy Inc (PTEN) accounts for about 5.09% of total assets, followed by Kodiak Gas Services Inc (KGS) and Weatherford International Pl (WFRD).
The top 10 holdings account for about 48.33% of total assets under management.
Performance and Risk
Year-to-date, the State Street SPDR S&P Oil & Gas Equipment & Services ETF has added roughly 36.42% so far, and is up roughly 47.21% over the last 12 months (as of 02/24/2026). XES has traded between $52.84 and $111.94 in this past 52-week period.
The ETF has a beta of 0.96 and standard deviation of 34.1% for the trailing three-year period, making it a high risk choice in the space. With about 31 holdings, it has more concentrated exposure than peers.
Alternatives
State Street SPDR S&P Oil & Gas Equipment & Services ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. XES, then, is not a suitable option for investors seeking exposure to the Energy ETFs segment of the market. Instead, there are better ETFs in the space to consider.
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 $230.71 million in assets, VanEck Oil Services ETF has $2.42 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 ReportsThis article originally published on Zacks Investment Research (zacks.com).
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