XOP Profile
The SPDR S&P Oil & Gas Exploration & Production ETF aims to replicate the performance of the S&P Oil & Gas Exploration & Production Select Industry Index. This index is specifically designed to capture the performance of companies involved in the exploration and production segments of the oil and gas industry. The ETF uses a sampling strategy to achieve this, investing substantially all, but at least 80%, of its total assets in the component securities of the index.
The S&P Oil & Gas Exploration & Production Select Industry Index is a specialized subset of the broader S&P Total Market Index, focusing exclusively on firms engaged in the upstream sector of the oil and gas industry. This sector includes companies involved in the exploration for and production of crude oil and natural gas, which are crucial for meeting global energy demands. The index aims to provide a comprehensive representation of this segment, including a range of companies from large multinational corporations to smaller exploration and production firms.
By adhering to a sampling strategy, the fund seeks to effectively capture the performance characteristics of the index without holding all the constituent securities. This approach allows for efficient management of the ETF while aiming to closely track the index's returns. The ETF's investments are selected to match the economic characteristics of the index, ensuring alignment with its performance objectives.
Investors in the SPDR S&P Oil & Gas Exploration & Production ETF gain targeted exposure to the oil and gas exploration and production sector, benefiting from the index's focus on this critical industry segment. As a result, the ETF provides an opportunity for investors to gain specific exposure to the performance of companies engaged in the upstream oil and gas industry, reflecting the dynamics of global energy markets and sector-specific trends.
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