Energy Stands Its Ground:

The XOP like many of its components has so far successfully retested prior cup base breakouts for the initial time following, which usually presents a good risk/reward opportunity on the long side. It also occurred right at the very round par number, showing why round number theory exists. The more top-heavy XLE is still far and away the best performing major S&P sector on a YTD basis having advanced 56% thus far, nearly 20 handles more than its closest competitor in the financials. Now it provides a healthy dividend yield of almost 4%, compared to the XOP paying 1.3%, but from a capital appreciation standpoint, the XOP is superior having gained 84% in 2021. Looking at how far both ETFs are from their most recent 52-week highs the nod goes to the XLE, just 4% off its annual peak as the XOP is 8% off its own. I still think looking within the XOP will give better buying opportunities for those looking for PRICE appreciation.

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