Share-split context: A reverse split was recorded on Mar 30, 2020 with coefficient 0.25. A reverse split combines multiple old shares into fewer new shares and mechanically raises the quoted price per share. That mechanical increase does not restore lost investment value. The returns in this report are already split-adjusted, while reverse-split history remains a separate structural warning.

What this ETF is trying to do

The State Street S&P Oil & Gas Exploration & Production ETF (XOP) is an exchange-traded fund that focuses on companies involved in finding and extracting oil and gas. It holds a variety of different companies within this sector. Because it tracks many different businesses, it provides exposure to the oil and gas industry rather than just one single company.

What the numbers show

When looking at how this ETF has performed, it is important to understand two different types of returns: price return and total return.

• Price Return: This measures only the change in the share price.

• Total Return: This includes both the share price changes and the money paid out through distributions.

For XOP, the numbers show growth across several timeframes:

• Year-to-Date (YTD): The price return is approximately 49.09%, while the total return is approximately 51.03%.

• One Year: The price return is approximately 40.76%, while the total return is approximately 43.63%.

• Three Years: The price return is approximately 34.99%, while the total return is approximately 44.68%.

This ETF has a history of a reverse split, which occurred on March 30, 2020. In a reverse split, multiple old shares are combined into fewer new shares. This causes the price per share to rise mechanically, but it does not change the actual value of your investment at that moment.

Income and distribution explanation

Some investors look for ETFs that pay out cash regularly. This is called a distribution yield. XOP has a distribution yield of approximately 1.66%. These distributions are usually paid out quarterly, and over the last 12 months, there were four payouts.

It is important to remember that a distribution yield is not the same as total return. While distributions provide cash, they are separate from the growth of the share price itself.

NAV erosion explanation

"NAV erosion" is a term used to describe when the value of an ETF's underlying assets declines significantly over time. StockValueFinder uses an erosion-risk score to help measure this risk.

For XOP, the erosion score is 100, which is labeled as "No price erosion detected." The erosion severity is rated as "good," and there is no severe erosion-risk flag present.

Top Holdings

The following are some of the top companies held by this ETF. Please note that this is a partial list and holdings can change over time:

• PBF Energy Inc Class A (2.88%)

• Valero Energy Corp (2.86%)

• ExxonMobil Holdings Corp (2.84%)

• HF Sinclair Corp (2.84%)

• Marathon Petroleum Corp (2.84%)

• Par Pacific Holdings Inc (2.81%)

• Phillips 66 (2.81%)

• Murphy Oil Corp (2.76%)

• Chevron Corp (2.74%)

• Delek US Holdings Inc (2.72%)

Pros and Cons

Pros:

• The ETF has shown positive price returns and total returns over the last year and three years.

• It provides a distribution yield for those seeking regular cash payments.

Cons:

• The ETF has a history of reverse splits.

• Because it focuses on one specific sector (oil and gas), its performance is tied to that industry.

Beginner takeaway

When looking at XOP, remember to distinguish between the share price moving up and the total return including distributions. While this ETF provides income through distributions, always look at the total return to see how the investment has performed overall.