WEEI vs XLE

WEEIDWestwood Salient Enhanced Energy Income ETF

XLEAState Street Energy Select Sector SPDR ETF

In short

WEEI Most energy ETFs hand you the sector and stop there. WEEI is the active one: North American energy stocks with covered calls written on top, distributions paid monthly. The options overlay is the whole product, and you pay up for it.

XLE The 1998 original and still the default way to trade US energy: XLE holds only the oil, gas and oilfield services names inside the S&P 500, capped-weighted, for 0.08% a year.

Stated mandate

WEEI The actively managed ETF seeks current income and capital appreciation, investing primarily in equity securities of energy companies and normally at least 80% of net assets in those companies.

XLE The fund seeks to provide investment results that generally track the price and yield performance of the Energy Select Sector Index before expenses.

Why people hold it

• WEEI A rare setup in energy: an active manager picks the stocks, then writes calls against them, with income paid monthly. The big index peers deliver sector beta and nothing more.westwoodgroup.com
• Calls are written only against shares the fund already owns. The premium comes from capping upside on stock it holds, not from borrowed money or naked options.westwoodgroup.com
• Westwood states the call writing is meant to damp volatility and run a lower beta than the S&P Energy Select Sector Index, the yardstick most sector funds hug.westwoodgroup.com
• The active mandate lets managers roam upstream, midstream, downstream, services and integrateds, with at least 80% of net assets in energy companies.westwoodgroup.com

• XLE 0.08% a year against a 0.45% median for broad energy funds. It ties the cheapest in its group (FENY) and undercuts VDE.
• Launched December 1998 as one of the first sector ETFs. Today a multi-billion-dollar fund and one of the most heavily traded in its category.
• Clean pure play: oil, gas and consumable fuels plus energy equipment and services drawn from the S&P 500. No utilities riding along.ssga.com
• Pays quarterly, and a deep listed options market sits around it for hedging or covered-call work.barchart.com

Worth knowing

• WEEI At 0.85% a year, one of the priciest tickets in the energy aisle. The cohort median is 0.45%, and index heavyweights XLE and FENY charge 0.08%.
• Covered calls swap upside for premium. When oil and gas names run hard, the shares with calls written on them get capped while plain sector funds keep climbing.westwoodgroup.com
• Westwood notes distributions may include return of capital, which can reduce NAV over time. The fund launched in 2024 and remains small, so the track record is short.westwoodgroup.com

• XLE A short roster by design, with the integrated majors carrying most of the weight. The index caps weights at each quarterly rebalance so no single stock runs away.spglobal.comssga.com
• Large-cap US only. Small caps, midstream partnerships and overseas majors sit outside the mandate; FENY and VDE cast a wider net.ssga.com
• One sector tied to one commodity complex: results move with crude and gas prices, in wider swings than a diversified index.ssga.com

Full WEEI profile⁠

Full XLE profile⁠