Two energy behemoths — Exxon Mobil Corp. XOM and Chevron Corp. CVX — came up with mixed first-quarter 2025 results amid falling crude oil prices. Both companies beat estimates for earnings estimates but missed the same for revenues.
This has put the focus on energy ETFs like Energy Select Sector SPDR XLE, Vanguard Energy ETF VDE, iShares U.S. Energy ETF IYE, Fidelity MSCI Energy Index ETF FENY and Strive U.S. Energy ETF DRLL, with the largest allocation to energy behemoths.
Earnings in Focus
Exxon came up with earnings per share of $1.76, which surpassed the Zacks Consensus Estimate of $1.72 but declined from the year-ago earnings of $2.06. Better-than-expected earnings were fueled by higher production in Guyana and the Permian Basin as well as cost-cutting measures. Revenues of $83.13 billion missed the Zacks Consensus Estimate of $84.49 billion but improved from the year-ago figure of $83.08 billion (read: Oil's Worst Month Since 2021: Will Energy ETFs Rebound?).
Earnings per share at Chevron came in at $2.18, edging past the Zacks Consensus Estimate of $2.15 and declining from the year-ago earnings of $2.93 per share. Revenues dropped 2% year over year to $47.6 billion and missed the consensus mark of $48.7 billion.
ETFs in Focus
Energy Select Sector SPDR (XLE)
Energy Select Sector SPDR is the largest and most popular ETF in the energy space, with AUM of $26.3 billion and an average daily volume of 24 million shares per day. It offers exposure to the broad energy space and follows the Energy Select Sector Index. Energy Select Sector SPDR holds 23 securities in its basket, with Exxon Mobil and Chevron occupying the top two spots with a 23.7% and a 15.1% share, respectively.
Energy Select Sector SPDR charges 8 bps in annual fees and has a Zacks ETF Rank #1 (Strong Buy) with a High risk outlook.
Vanguard Energy ETF (VDE)
Vanguard Energy ETF provides exposure to a basket of 112 energy stocks by tracking the MSCI US Investable Market Energy 25/50 Index. Here again, Exxon and Chevron are the two leading firms with a 23.8% and 14.1% allocation, respectively.
Vanguard Energy ETF has amassed $6.6 billion in its asset base. It sees a good volume of about 730,000 shares. It charges 9 bps in annual fees and has a Zacks ETF Rank #1 with a High risk outlook.
iShares U.S. Energy ETF (IYE)
iShares U.S. Energy ETF tracks the Russell 1000 Energy RIC 22.5/45 Capped Gross Index (USD), giving investors exposure to U.S. companies that produce and distribute oil and gas. It holds 41 stocks in its basket, with Exxon Mobil and Chevron taking the top two positions at 23.1% and 14.1% share, respectively (see: all the Energy ETFs here).
iShares U.S. Energy ETF charges 39 bps in fees per year from its investors. It has AUM of $1.1 billion and an average daily volume of about 735,000 shares. The product has a Zacks ETF Rank #2 (Buy) with a High risk outlook.
Fidelity MSCI Energy Index ETF (FENY)
Fidelity MSCI Energy Index ETF fund follows the MSCI USA IMI Energy Index, holding 110 stocks in its basket. Of these, XOM and CVX take the top two spots at 23.7% and 14.1%, respectively.
Fidelity MSCI Energy Index ETF charges 8 bps in annual fees and trades in a heavy volume of around 2 million shares. It has accumulated $1.3 billion in its asset base and has a Zacks ETF Rank #3 (Hold) with a High risk outlook.
Strive U.S. Energy ETF (DRLL)
Strive U.S. Energy ETF seeks broad market exposure to the U.S. energy sector and follows the Bloomberg US Energy Select Index. It holds 41 stocks in its basket, with Exxon Mobil and Chevron taking the top two positions at 24.3% and 20.7% share, respectively.
Strive U.S. Energy ETF has gathered $256 million in its asset base. It charges 41 bps in fees per year from investors and trades in an average daily volume of 53,000 shares. DRLL has a Zacks ETF Rank #2.
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Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports iShares U.S. Energy ETF (IYE): ETF Research Reports Vanguard Energy ETF (VDE): ETF Research Reports Fidelity MSCI Energy Index ETF (FENY): ETF Research Reports Strive U.S. Energy ETF (DRLL): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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