XOP SPDR S P Oil Gas ETFEstablished by State Street Global Advisors in January of 2. SPDR S P Oil Gas Exploration and Production ETF NYSEARCA XOP has provided an annualized return of 4. XOP tracks the performance of the S P Oil Gas Exploration and Production Select Industry Index, which is a subsection of the S P Total Markets Index. XOPs target benchmark tracks the stock of large, mid and small cap U. S. companies that operate in the exploration and production of oil and gas. Exploratory wells are used to find new reservoirs of oil and gas, while production is the process of extracting oil from found wells. Karla Kush Love here. Because consumers around the world depend on energy commodities consistently, demand for oil and gas remains high. This leads to the potential for lucrative returns over time. Fund managers with XOP utilize a sampling approach when selecting which of the 7. As of 2. 01. 5, XOP currently holds 7. Magnum Hunter Resources Corpora MHR at 2. Valero Energy Corporation VLO at 1. Phillips 6. 6 Common Stock PSX at 1. Marathon Petroleum Corporation MPC at 1. Characteristics. Like other ETFs offered through State Street Global Advisors, the SPDR S P Oil Gas Exploration and Production ETF implements a passive management investment approach with a long term perspective. Fund managers with XOP focus on keeping the funds turnover ratio low, which, when coupled with passive management, results in lower expenses for investors. Within the oil and gas exploration and production sector, ETF expense ratios range from 0. However, due to its investment approach, XOP has a gross expense ratio of 0. Serial Number Net Support School Torrent. XOP is traded on the secondary market just like other ETFs and individual stocks, but trade fees and commissions assessed by brokers vary depending on an investors selected trading platform. Suitability and Risk. Regardless of sector or industry, all investments carry a degree of risk that investors should be aware of. However, ETFs that are not diversified among different sectors or regions present a higher level of risk, as is the case with the narrowly focused investment holdings of XOP. While fund managers implement certain strategies to reduce the total risk of XOP, including sampling and equal weighting similar to that of the target index, investors are exposed to the potentially high volatility of the oil and gas exploration and production sector with this fund. The risk inherent to XOP is clear when analyzing the funds measurements of risk. For a three year period, XOP has a Sharpe ratio of 0. Transistor Tt 2222 Pdf'>Transistor Tt 2222 Pdf. The risk metrics for XOP make it clear that the investment may be more suitable for investors with a long term perspective, given the potential for more dramatic fluctuations over time. Despite energy commodities remaining in high demand, oil and gas exploration and production is a risky endeavor for even the most experienced companies. In some cases, exploratory missions to find new reservoirs of oil and gas miss the mark, leaving companies with no oil or gas to extract or produce. Oil Platform Simulator Demo Download' title='Oil Platform Simulator Demo Download' />Testudaan is the best PMP Exam Simulator with intelligent result analysis, 3500 pmp sample questions and 10 Simulated Tests. Engineering consulting services. Business improvement consulting services. New FICO Score Simulator Enables Consumers to See How Future Actions Could Affect FICO Scores. ASET offer a range of training courses for oil and gas professionals. All training courses are accredited and the facilities are best in class. Bus Simulator 2012 is licensed as Shareware for the Windows operating system platform from simulation games and can be used as a free trial until the trial period. Euro Truck Simulator 2 is a truck simulation game created by SCS Software, using OpenGL, set in. Because the cost of finding and exploring potential wells is high, oil and gas companies run the risk of losing a substantial amount of capital without the guarantee of future profit. These factors inherent to the oil and gas exploration and production sector make XOP a high risk investment. However, the industry can be highly profitable over time, making XOP suitable for investors seeking growth over the long term.