GET DAILY SIGNALSXES vs XOP: Weighing Two State Street Energy ETFs
Key Takeaways
- XES (SPDR S&P Oil & Gas Equipment & Services ETF) focuses on oilfield services and equipment providers — the "picks and shovels" of energy production — while XOP (SPDR S&P Oil & Gas Exploration & Production ETF) holds the producers and refiners that contract them.
- Both funds are passively managed, modified equal-weight products from State Street with identical 0.35% expense ratios, yet they sit at opposite ends of the energy value chain.
- XOP is meaningfully more diversified and liquid, holding roughly 56 names and billions in assets, whereas XES is more concentrated at around 35–45 holdings and carries a higher-volatility profile.
- Structural exposure differs sharply: XES is levered to upstream capital expenditure and drilling activity, while XOP includes integrated majors and refiners that provide a more defensive earnings base.
- Tickeron AI Verdict: XOP — the AI would currently favor XOP for its superior diversification, deeper liquidity, and comparatively lower volatility within the same cyclical energy complex.
Why These Two ETFs Stand Apart
Investors looking for energy exposure often turn to sector ETFs without fully appreciating how two similarly named funds can behave quite differently. XES and XOP are both State Street SPDR products launched on the same day in 2006. Both track modified equal-weight S&P Select Industry indices and carry the same 0.35% fee. Still, they are not interchangeable. This comparison feels relevant now because the funds sit at distinct points along the energy supply chain, and their relative performance can shift with drilling budgets, commodity prices, and refinery margins. Understanding these differences helps when deciding where to allocate capital.
SPDR S&P Oil & Gas Equipment & Services ETF (XES) at a Glance
XES tracks the S&P Oil & Gas Equipment & Services Select Industry Index, a modified equal-weight benchmark focused on the oilfield services segment. The fund holds roughly 35–45 companies, with all assets in energy and a 0.35% net expense ratio. It uses a passive sampling approach. Top holdings often feature offshore drillers and service names such as NE (Noble Corp), VAL (Valaris), RIG (Transocean), and SDRL (Seadrill), along with equipment and technology providers like BKR (Baker Hughes), HAL (Halliburton), FTI (TechnipFMC), and WHD (Cactus). Because revenue for these firms ties to producers’ capital spending, XES acts as a high-beta play on upstream activity, with the top 10 holdings typically making up about 40% or more of assets. I also checked this using Tickeron’s AI Screener to see how the fund compares to others in the industry.
SPDR S&P Oil & Gas Exploration & Production ETF (XOP) at a Glance
XOP tracks the S&P Oil & Gas Exploration & Production Select Industry Index, covering companies that find, develop, and refine hydrocarbons. It holds approximately 56 stocks, with nearly all assets in energy and the same 0.35% net expense ratio. Like XES, it follows a passive sampling strategy. Holdings span production and refining, including integrated majors such as XOM (ExxonMobil) and CVX (Chevron), large independents like COP (ConocoPhillips) and EOG (EOG Resources), and refiners such as MPC (Marathon Petroleum), VLO (Valero Energy), and PSX (Phillips 66). With the top 10 positions accounting for only about 28–30% of the portfolio, XOP spreads risk more evenly across a broader set of issuers.
The Energy Sector Backdrop
Both funds operate inside a global energy environment shaped by commodity prices, capital discipline, and geopolitical factors. Producers and refiners have focused on shareholder returns and measured spending lately, which directly affects earnings for the service companies in XES. Offshore drilling demand, pressure pumping, and well-completion volumes drive XES holdings, while XOP names respond more directly to crude and natural gas prices, refining margins, and downstream operations. Macro elements such as interest rate expectations, OPEC+ decisions, and the pace of the energy transition influence both, though through different channels. Thematic flows have leaned toward equal-weight and diversified energy products, which has generally benefited the broader structure seen in XOP.
Performance Patterns and Positioning
Recent cycles have underscored the contrast between the two approaches. XES, with its higher beta and concentration in smaller service providers, tends to show larger moves when drilling activity and capital expenditure plans shift. XOP has historically posted a lower beta and more contained volatility, thanks to the steadier cash flows from integrated majors, large independents, and refiners. In periods of rising crude prices and growing upstream budgets, XES can deliver stronger cyclical gains. Yet when prices soften or producers pull back on spending, XES can lag and decline more sharply. XOP’s mix of production and refining exposure has offered more balanced positioning overall.
How Tickeron’s AI Tools Support ETF Research
I’ve found Tickeron’s AI Screener particularly useful when comparing sector ETFs like these. It lets me filter on technical patterns, fundamentals, volatility, and AI signals to quickly surface ideas and see how holdings stack up against peers. The tool has helped me confirm the diversification edge in XOP without having to run every screen manually. If you’re evaluating energy exposure, it’s worth testing the platform with your own criteria to see what surfaces.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
Momentum Indicator for XES turns negative, indicating new downward trend
XES saw its Momentum Indicator move below the 0 level on November 02, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 86 similar instances where the indicator turned negative. In 82 of the 86 cases, the stock moved further down in the following days. The odds of a decline are at 90%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for XES turned negative on November 04, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 41 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 90%.
XES moved below its 50-day moving average on November 02, 2026 date and that indicates a change from an upward trend to a downward trend.
The 50-day moving average for XES moved below the 200-day moving average on October 29, 2026. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where XES declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 88%.
The Aroon Indicator for XES entered a downward trend on October 27, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where XES's RSI Indicator exited the oversold zone, 21 of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 90%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +3.34% 3-day Advance, the price is estimated to grow further. Considering data from situations where XES advanced for three days, in 314 of 346 cases, the price rose further within the following month. The odds of a continued upward trend are 90%.
XES may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
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