is XLE a good ETF to buy Oil?

Discussion in 'ETFs' started by RGLD, Aug 1, 2020.

  1. RGLD

    RGLD

    I know it's energy related, it's probably not the best ETF if you want pure oil.

    Like right now WTI Crude is at the highest post covid, while XLE is not. It's at $36 and the peak of $47 was in early June.

    It's not moving with WTI anymore!!!
     
  2. ET180

    ET180

    If you want pure oil play, XOP would be better if not USO.
     
  3. RGLD

    RGLD

    It's the same chart as XLE. It's also chilling in the middle right now while it peaked in June just like XLE.

    WTI Crude is at it's highest point post Covid.
     
  4. ET180

    ET180

    XOP will trade based on where the market thinks crude is going in the future. The fact that it has not gone higher while crude has indicates that the market thinks upside is limited for oil. Also, oil is highly cyclical. Demand peaks around now / the summer and drops off during the winter...or at least it used to. Not sure how C19 affects that cycle.
     
    murray t turtle likes this.
  5. %%
    XLE pays a good dividend;
    oil has none./BUT with spy doing better ytd, typical good dividend etf/tends to underperform.
    Looks like with rioters/looters pushing up the virus kill rate; spy is still bullish but summer slump is normal...…………………………………………………………………….