XLE is U.S. energy industry, including many of the world’s largest oil producers. Compared to other energy options, XLE is impressive in terms of both cost efficiency and liquidity; investors can generally expect to execute at penny wide spreads. But like many funds offering exposure to the energy sector, XLE maintains some concentration issues, as a few stocks account for big chunks of the total portfolio.
Sector ETFs
JETS is the diversified Airlines Sector ETF. As a subset of the Transports sector, this ETF tracks the XAL almost perfectly but can actually be traded on both the shares & options side (XAL cannot be trades its purely an index in the academic sense purely from a nominal basis.) If you want to play the airlines but don’t know enough about the specifics of each balance sheet, don’t worry this is the perfect diversified instrument for you to play.