Energy Select Sector SPDR Fund (XLE) Top 22 Holdings

The Energy Select Sector SPDR Fund (XLE) is the go-to ETF for investors who want to capture the energy sector’s performance without picking individual winners. Launched in 1998, XLE tracks the energy companies of the S&P 500, spanning integrated oil majors, refiners, service providers, and infrastructure plays. The fund has become a staple for investors who see oil and gas as both a cyclical opportunity and a hedge against inflation.

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XLE is highly concentrated, with just over 20 companies inside the portfolio, but make no mistake, two names dominate. Exxon Mobil and Chevron together account for over 40% of the ETF’s weight, while ConocoPhillips, Williams, EOG Resources, and Marathon Petroleum round out the next tier. That concentration means the fund moves in step with the largest integrated oil producers.

The reality for investors is simple: when oil prices rally, XLE is one of the quickest ways to participate. But it’s not just about crude, these companies are generating massive free cash flows, returning billions in dividends and buybacks, and investing heavily in energy transition. To highlight what drives performance inside XLE, let’s start with the biggest holdings.

1. Exxon Mobil (XOM)

Exxon Mobil is the backbone of XLE, accounting for more than 23% of the fund. The company remains one of the largest publicly traded energy giants, spanning upstream exploration, refining, and chemicals. In recent years, Exxon has focused heavily on efficiency improvements and capital discipline, generating record free cash flow while maintaining control over capital expenditures.

Its Permian Basin operations are now among the most productive in the world, while its refining and chemicals units help balance earnings when crude prices swing. Exxon’s dividend track record is a key draw for income investors, with more than 40 years of uninterrupted payouts.

For XLE holders, Exxon is the ultimate bellwether: when Exxon outperforms, the ETF usually follows. With the energy transition underway, Exxon is also investing in carbon capture and low-carbon solutions, though its core earnings remain tied to traditional oil and gas.

2. Chevron (CVX)

Chevron is the second-largest component of XLE, accounting for more than 18% of the fund. Its integrated model spans global upstream production, downstream refining, and a growing renewables portfolio. Recent mergers and acquisitions, including its deal with Hess, expand its footprint in Guyana, home to one of the world’s most attractive new offshore oil plays.

What sets Chevron apart is its strong balance sheet. The company has consistently maintained lower debt levels compared to peers, giving it flexibility to raise dividends, authorize buybacks, and invest in long-cycle projects. That financial strength makes it a cornerstone holding in the energy sector.

For XLE investors, Chevron brings diversification alongside Exxon, but it’s still heavily tied to the same global crude cycle. Together, the two companies drive more than 40% of the ETF, magnifying their impact on returns.

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3. ConocoPhilips (COP)

ConocoPhillips holds the third-largest weight in XLE at just over 7%. Unlike Exxon and Chevron, it’s a pure-play exploration and production (E&P) company, without refining operations to balance its business. That gives Conoco more torque to rising oil and gas prices, but also more volatility when prices fall.

The company has built a reputation for operational excellence in the Lower 48 shale plays, particularly in the Permian Basin, Eagle Ford, and Bakken. Internationally, it maintains positions in LNG and other high-demand markets. Its disciplined capital returns program, including buybacks and dividends, has helped attract long-term investors.

For XLE, Conoco provides the “upstream kicker.” Its performance is closely tied to commodity prices, making it an essential complement to the integrated majors in the portfolio.

The Strength of XLE Is In Three Names

Even though XLE has 20+ holdings, it’s really a story of Exxon, Chevron, and Conoco. Together, those three names make up nearly 50% of the ETF’s weight. That concentration makes XLE less of a “sector basket” and more of a leveraged play on the energy supermajors and top-tier E&Ps

For investors, that concentration has historically delivered big when oil rallies, but it also amplifies risk if crude prices slump. Smaller positions like Williams, EOG, and Marathon Petroleum add some balance, but they can’t offset the top-heavy structure.

Key Insights

• Heavy concentration in just two stocks. Exxon and Chevron alone make up more than 40% of the fund. That magnifies their impact on returns.
• Oil-price sensitivity. XLE tends to outperform in rising crude environments but lags when energy prices cool.
• Dividend income. Energy giants like Exxon, Chevron, and Conoco return large portions of cash flow to shareholders, boosting yield compared to broader market ETFs.
• Energy transition exposure. While still oil-heavy, the majors are investing in LNG, renewables, and carbon capture, giving investors some exposure to the shift toward cleaner energy.

Why Oil Majors Drive the Energy Sector

XLE is one of the cleanest, most direct energy plays in the ETF universe. For investors seeking exposure to the oil and gas sector without hand-picking individual names, it provides instant access to the majors, midstream operators, refiners, and service providers that define the industry.

The trade-off is concentration: Exxon and Chevron alone account for a significant share of performance. If you’re comfortable with that, XLE provides both dividend income and cyclical upside, often moving in step with oil prices.

For many portfolios, XLE serves as a tactical allocation, an ETF you overweight when energy prices are rising, and underweight when they cool. For long-term investors, it serves as a reminder that even within “sector funds,” a handful of companies often call the shots.

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Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!