XLE ETF Sells $29M Chevron, $10.8M ConocoPhillips in Sector Pullback
State Street's Energy Select Sector SPDR shed $121M on Sept. 30, trimming Chevron, ConocoPhillips, and Valero. The ETF's largest sales signal a sector rebalance.
The Energy Select Sector SPDR Fund (XLE) sold $29 million worth of Chevron shares on Sept. 30, the largest single position cut in a session that saw $121.2 million leave the fund. The $39.13 billion ETF reduced 20 of its 21 holdings and opened no new positions, according to State Street's holdings data.
ConocoPhillips absorbed the second-largest sale: 86,216 shares worth $10.8 million. Valero Energy followed with 19,552 shares sold for $7.6 million. Marathon Petroleum and Phillips 66 also saw reductions, with $7.5 million and $7.4 million in shares sold respectively. None of the moves represented full exits or new positions.
The sales trimmed the largest weights in the portfolio but left the fund's top holdings largely intact. Chevron still accounts for 18.12% of assets, behind Exxon Mobil at 24.12%. ConocoPhillips stands at 6.75%, Valero at 4.75%, and Marathon Petroleum at 4.72%.
The sell-off came on a session when crude oil prices moved lower. The ETF's year-to-date return still stood at 40.24% through the close, suggesting the reductions may reflect routine rebalancing or profit-taking after a strong run. The fund holds 21 stocks, all large-cap energy companies, and concentrates 78.3% of assets in its top 10 holdings. Its expense ratio is 0.08%.
Chevron carries an Alpha Score of 55, labeled Moderate. ConocoPhillips scores 60, also Moderate. Valero Energy scores 55 with a Mixed label, according to AlphaScala's proprietary metrics. All three sit in the Energy sector.
The fund's P/E of 14.01 and P/B of 2.01 suggest valuations are not stretched relative to historical norms, while the dividend yield of 2.9% remains attractive for income-focused investors. The Sept. 30 sales did not alter the fund's heavy tilt toward integrated oil majors; Exxon and Chevron together account for over 42% of assets.
State Street reported the holdings changes for Sept. 30. The next portfolio update will show whether the reduction was a single-session rebalance or the start of a broader pullback from the sector's largest weights.
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