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.
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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.
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
XLE has outpaced XOP over the trailing twelve months, posting a 33.23% total return against 28.87%. The lead holds up over 10 years too: XLE has compounded at 9.40% a year, against 3.65% for XOP. XLE has been the steadier holding, though — annualized volatility of 21.7% against 28.0% for XOP. Figures are total returns: price change plus every distribution reinvested.
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jun 2006” measures every fund from June 22, 2006 — the youngest fund's first trading day — 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.
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 2.70% vs 1.80% 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 0.09% compared to 0.35%.
They track different benchmarks: XLE is linked to Energy Select Sector Index while XOP tracks S&P Oil & Gas Exploration & Production Select Industry Index, which means their performance drivers differ.
XLE is the larger fund by assets ($39.1B), which generally means tighter spreads and better liquidity.
Deep dive
Yield & income
On a $10,000 investment, XLE would generate roughly $22.50/month, while XOP would produce $15.00/month, at current distribution rates. Both pay quarterly distributions.
XLE yield2.70%
XOP yield1.80%
Monthly diff on $10K$7.50
Cost & efficiency
Over 10 years on $10,000, XLE would cost approximately $90 in fees vs $350 for XOP (simplified, not compounded). The $260.00 difference may be offset by yield or performance.
XLE ER0.09%
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-0.02
XOP beta-0.12
Fund details
XLE is managed by State Street (launched 12/16/1998) with $39.1B in assets. XOP is managed by State Street (launched 06/19/2006) with $3.21B in assets.
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Frequently asked questions
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.
Which has lower fees, XLE or XOP?
XLE has an expense ratio of 0.09% 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 $22.50 per month ($270.00 annually). The same in XOP would produce about $15.00 per month ($180.00 annually).
Which has performed better historically, XLE or XOP?
XLE has outpaced XOP over the trailing twelve months, posting a 33.23% total return against 28.87%. The lead holds up over 10 years too: XLE has compounded at 9.40% a year, against 3.65% for XOP. XLE has been the steadier holding, though — annualized volatility of 21.7% against 28.0% for XOP. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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