Should I Buy XLE (XLE)? Finance YouTuber Analysis

Joseph Hogue suggests XLE, the Energy Select Sector SPDR Fund, as a good inflation hedge. He notes that energy historically outperforms during inflationary periods, beating inflation by about 15% over a 12-month period 75% of the time. The fund provides exposure to the largest energy companies.

“You've also got the XLE, which is the sector spider, owns all of the uh the energy stocks in the S&P 500. So, that would be I think that's about 28 of the largest energy companies there in the uh in the in the S&P 500.”

The YouTuber suggests buying the Energy ETF (XLE) as a protective measure against a potential AI bubble pop. He notes that after significant gains in AI stocks, diversifying into non-related sectors like energy offers a value play and protection for a portfolio.

“The best you can do here is have some of your money in those non-related sectors like stocks in real estate, consumer staples, and energy. All of those very attractive value plays right now, nation.”

The analyst favors the Energy Spider ETF as part of a barbell portfolio strategy, suggesting it offers attractive value and can protect a portfolio during market sell-offs. This aligns with a broader market shift into sectors like energy and healthcare.

“Besides the broad ETFs with these sectors like the Energy Spider, the XLE, and the Healthcare ETF, ticker XLV, I'm also watching stocks like EOG Resources, ticker EOG, Chevron, CVX, United Health Group, UNH, and Novartis, NVS.”

The YouTuber suggests buying the XLE ETF as a broad, diversified way to gain exposure to the energy sector. He argues that energy stocks are currently undervalued, trading at a discount to their 10-year average forward P/E, and are poised for significant earnings growth in 2026. Potential catalysts include a large EU-US energy deal and tariffs on Indian oil imports, which could drive up US oil prices.

“If you wanted to just ride that big picture support for all stocks in the sector, we've got the Energy Select Sector Spider Fund. The XLE here holds all 22 stocks, energy stocks in the S&P 500. So, it's a very good broad diversified way to get that big picture upside, but without having to pick stocks.”

Hogue suggests that the Energy Select Sector SPDR Fund (XLE) and its underlying stocks are attractively priced. He notes that oil prices are at the low end of their range, providing a floor of support, and that potential geopolitical tensions could lead to a spike in oil prices, offering upside for the sector.

“Shares of the energy select sector spider fund, the XLE, and the stocks within it are priced attractively with the floor of the support on oil and potential for a pop on any new hostilities.”

The YouTuber recommends XLE as a relatively safe investment during potential market volatility, especially given ongoing Middle East tensions. He notes its recent jump due to oil price increases and its 3.5% dividend yield, suggesting it will hold up well.

“The energy sector spider ETF, ticker XLE, which holds the 23 largest energy companies, jumped 1.6% on Friday's news and pays you a 3 and a.5% dividend while you wait.”

The YouTuber suggests the XLE ETF as a safer alternative to individual energy stocks like ExxonMobil, expecting the energy sector to perform well under a Trump presidency.

“Exon Mobile will be one of those ones or if you want to play it a little safer than the individual stock consider The XLE that's the ETF for energy okay”