Oil & Gas Exploration & Production ETF Allocation Reduced

By on June 1, 2021

SPDR Oil Exploration ETF ChartThe SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has turned from hated to loved in the past seven months. The once considered uninvestible (according to Cramer) has become the hottest sector in the market.

I thus decided to reduce the position of XOP in the SMA Portfolio by 10%. XOP was sold this morning at $92.20.

The SMA portfolio continues to retain an overweight allocation to the energy sector. Many market pundits are now advocating investing in the energy complex.

Disclaimer: It is very challenging to outperform a buy and hold strategy. Historically, investors have found themselves well-served over the long-term by investing regularly in a diversified portfolio of stocks or low cost, broadly diversified indexed stock funds. Profitable trades are not guaranteed. No system or methodology ensures stock market profits. All investors are advised to conduct their own independent research into individual stocks, closed-end funds, mutual funds, and exchange traded funds or any other investment vehicle before making a purchase decision. In addition, investors are advised that past performance has demonstrated no relation to future performance. Although accuracy is strived for, no guarantee is made regarding the accuracy of data presented.

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