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Energy ETFs As Value Plays

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During the worst days of oil's most recent bull market, a cacophonous debate was heard. One side argued that energy equities were legitimate value plays while those bearish on the sector posited that the only reason price-to-earnings ratios in the energy patch were declining was because earnings estimates were doing the same.

That debate could last as long as participants want it to, but there is no debating that the Energy Select Sector SPDR (ETF) (NYSE: XLE), the largest equity-based energy exchange fund by assets, is higher by 16.4 percent year-to-date. Among the sector SPDR ETFs, only the Utilities SPDR (ETF) (NYSE: XLU) is beating XLE.

The Value Factor

A glance at nearly any run-of-the-mill ETF dedicated to the value factor will turn up ...

/www.benzinga.com/trading-ideas/long-ideas/16/07/8229932/energy-etfs-as-value-plays alt=Energy ETFs As Value Plays>Full story available on Benzinga.com

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