BKR - Is XLE ETF A Good Buy Now?

• The Energy sector ETF XLE holds a very small number of large-cap oil and gas-related stocks selected from the S&P 500, far fewer than its rivals.
• Its performance over the past decade has been inconsistent. An equal-weighted holding of just its two top stocks, XOM and CVS, has almost always outperformed XLE.
• XLE is not a foolproof hedge against inflation because so many other factors besides Russia's invasion of Ukraine have created it. Broader commodity strategies may be preferable.
• Oil stocks over the past 20 years have mainly appealed to those looking for safe, higher-than-market dividends. XLE's dividend is not competitive with a small holding of individual oil stocks.

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