ETF Comparison

XLE vs XOP: Which Is the Better Pick in 2026?

A head-to-head comparison of State Street Energy Select Sector SPDR ETF and SPDR S&P Oil & Gas Exploration & Production ETF covering yield, cost, risk, and income potential.

Updated October 16, 2026

How these figures are calculated: methodology.

Best for

XLEInvestors who want higher current income (2.23% vs 1.51% for XOP).
XOPInvestors who want broad equity exposure.

Jump to the side-by-side numbers

Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.

XLE has lagged XOP over the trailing twelve months, posting a 64.60% total return against 65.83%. The picture flips over 10 years, though — XLE has compounded at 11.36% a year, ahead of XOP at 4.91%. XLE has been the steadier holding, though — annualized volatility of 21.9% against 28.4% for XOP. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD cumulative	1Y cumulative	3Y annualized	5Y annualized	10Y annualized	Since Jun 2006	Volatility	Sharpe	Sortino	Max drawdown
XLE	55.65%	64.60%	18.48%	23.19%	11.36%	7.97%	21.9%	0.59	0.79	-20.1%
XOP	60.75%	65.83%	12.70%	16.51%	4.91%	3.28%	28.4%	0.28	0.37	-35.0%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 16, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jun 2006” measures every fund from June 22, 2006 — the start of shared available history — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	XLE	XOP
Full name	State Street Energy Select Sector SPDR ETF	SPDR S&P Oil & Gas Exploration & Production ETF
Issuer	State Street	State Street
Underlying index	Energy Select Sector Index	S&P Oil & Gas Exploration & Production Select Industry Index
Last Close	$68.24 as of October 16, 2026	$200.38 as of October 16, 2026
Distribution rate	2.23%	1.51%
Trailing 12-month yield	2.23%	1.56%
Distribution Safety Score™	91	86
Safety-Adjusted Yield	2.03%	1.30%
Expense ratio	0.08%	0.35%
AUM	$44.8B	$4.30B
Distribution frequency	Quarterly	Quarterly
Objective	Provide exposure to the fund's underlying index or strategy per issuer materials.	Tracks the S&P Oil & Gas Exploration & Production Select Industry Index.
Asset class	Equity	Equity
Inception date	12/16/1998	06/19/2006
Beta	-0.03	-0.16
Last dividend	$0.38028	$0.757
Ex-dividend date	09/21/2026	09/21/2026

Bottom lineChoose XLE if you want higher current income (2.23% vs 1.51% for XOP). Choose XOP if you want broad equity exposure.

Model this comparison:

Compare in my portfolio Forecast income Save to watchlist

Income calculator

See how much monthly income a hypothetical investment would generate in each ETF at current yields.

State Street

ETFs186

Total AUM$2.15T

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLE and XOP.

See all ETFs from State Street

Want to go deeper?

Add these ETFs to a sample portfolio and forecast your dividend income over 5+ years — free to start, no credit card.

Compare in my portfolio Forecast income Save to watchlist

Quick verdict

XLE (State Street Energy Select Sector SPDR ETF) and XOP (SPDR S&P Oil & Gas Exploration & Production ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

XLE offers the higher yield at 2.23% vs 1.51% for XOP. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLE is cheaper with an expense ratio of 0.08% compared to 0.35%.

They have different reference exposures: XLE is linked to Energy Select Sector Index while XOP is linked to S&P Oil & Gas Exploration & Production Select Industry Index, which means their performance drivers differ.

XLE is the larger fund by assets ($44.8B), but assets alone do not establish trading costs or liquidity.

Still deciding? Track XLE & XOP for free

Create a free Dividend Vision account to keep them on a watchlist, get notified when they declare dividends, and see how much income they would add to your portfolio.

Add to my watchlist See what a free account includes

Deep dive

Yield & income

On a $10,000 investment, XLE would generate roughly $55.75 cash per distribution, while XOP would produce $37.75 cash per distribution, at current distribution rates. Both pay quarterly distributions.

XLE yield2.23%

XOP yield1.51%

Cash diff on $10K$18.00

Cost & efficiency

Over 10 years on $10,000, XLE would cost approximately $80 in fees vs $350 for XOP (simplified, not compounded). The $270.00 difference may be offset by yield or performance.

XLE ER0.08%

XOP ER0.35%

Strategy & risk

XLE tracks Energy Select Sector Index with an oil approach, while XOP tracks S&P Oil & Gas Exploration & Production Select Industry Index.

XLE beta-0.03

XOP beta-0.16

Fund details

XLE is managed by State Street (launched 12/16/1998) with $44.8B in assets. XOP is managed by State Street (launched 06/19/2006) with $4.30B in assets.

XLE AUM$44.8B

XOP AUM$4.30B

Ready to act?

Open in Comparator Model in portfolio See pricing

Frequently asked questions

What is the current distribution rate for XLE and XOP?

XLE currently distributes 2.23% and XOP 1.51%, based on fund data updated October 2026. Distribution rate moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is XLE or XOP better for dividend income?

It depends on your goals. XLE currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between XLE and XOP?

XLE (State Street Energy Select Sector SPDR ETF) tracks Energy Select Sector Index with an oil approach, while XOP (SPDR S&P Oil & Gas Exploration & Production ETF) tracks S&P Oil & Gas Exploration & Production Select Industry Index. They are issued by State Street and State Street respectively.

Can I hold both XLE and XOP?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is XLE or XOP safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — XLE scores 91, XOP scores 86, so XLE's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, XLE or XOP?

XLE has an expense ratio of 0.08% while XOP charges 0.35%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in XLE vs XOP generate?

At current rates, $10,000 in XLE would generate roughly $55.75 cash per distribution ($223.00 annually). The same in XOP would produce about $37.75 cash per distribution ($151.00 annually).

Which has performed better historically, XLE or XOP?

More comparisons to explore

People also compare XLE with

Popular comparisons

Dividend dates and history

XLE vs XOP — at a glance

Generated October 17, 2026.

Overview

XLE and XOP are both energy-sector equity ETFs from State Street that track different slices of the oil and gas market. XLE provides broad exposure to all energy companies in the S&P 500—integrated majors, refiners, pipelines, and equipment makers—while XOP focuses narrowly on exploration and production (E&P) companies, the upstream drillers and well operators. The key tradeoff is breadth versus pure-play upstream exposure.

How they differ

XLE tracks the Energy Select Sector Index, which spans the entire energy sector and includes integrated oil majors like Exxon and Chevron alongside midstream infrastructure and oilfield services. XOP tracks only E&P firms—companies primarily engaged in finding, developing, and extracting oil and gas reserves—making it a concentrated play on commodity price volatility. XLE's 2.23% yield slightly exceeds XOP's 1.51%, though both pay quarterly; the higher XLE yield partly reflects the dividend income from integrated oil companies and pipeline royalties embedded in the broader sector index.

Who each is best for

XLE: Fits investors seeking broad energy-sector diversification with lower fees and meaningful liquidity—those who want commodity exposure without betting the entire portfolio on E&P company operational risk or commodity supercycle timing.

XOP: Fits investors with conviction in upstream oil and gas supply tightness and who can tolerate higher price swings in exchange for direct leverage to crude and natural gas realizations; also suits tactical rotations into E&P on weakness when valuations are depressed relative to energy prices.

Key risks to know

E&P operational and reserve risk: XOP's narrower focus on exploration and production operators concentrates exposure to drilling economics, reserve replacement, and capital allocation discipline at individual firms. Dry wells, reserve writedowns, or failed acquisitions at major E&P holdings can move the ETF more sharply than XLE.

Commodity price sensitivity: Both funds track energy equities, not energy futures, but XOP's E&P focus magnifies leverage to crude and gas price moves because E&P cash flows are more directly tied to wellhead realizations. A sustained downturn in oil prices has historically eroded E&P profitability and valuations more than integrated majors or pipeline income.

Midstream and services diversification absent from XOP: XLE includes pipeline REITs, oilfield services, and equipment manufacturers whose earnings are less directly tied to commodity prices. XOP omits this buffer, making it more sensitive to upstream sector-specific headwinds.

Negative beta puzzles: Both funds report negative betas (XLE at -0.03, XOP at -0.16), which conflicts with energy's long-term equity market correlation and may reflect outdated data or index construction artifacts. Verify current correlations before relying on these figures for portfolio hedging. If you're comfortable with concentrated upstream risk and want maximum upside from E&P profitability during commodity strength, XOP delivers pure E&P leverage at the cost of higher fees and lower liquidity. Past performance does not predict future results.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

Learn the method

The metrics behind this comparison, explained in the Academy.

Still deciding? Compare them against your own portfolio

See how each ETF fits alongside your real holdings — forecast future income, analyze overlap, and gauge risk. Start a free 7-day Dividend Vision trial and make the call with your full portfolio in view.

Start Free Open in Comparator Browse Screener

These comparisons follow the Dividend Vision methodology.