📌 Overview
| Fund Name | Energy Select Sector SPDR® Premium Income Fund |
| Ticker | XLEI |
| Issuer | State Street Global Advisors (SPDR) |
| Inception Date | July 29, 2025 sectorspdrs.com+12SSGA+12etf.com+12 |
| Expense Ratio | 0.35% SSGASeeking Alpha |
| Structure | Covered call strategy on XLE (Energy Sector SPDR ETF) SSGAinvestors.statestreet.com |
📌 XLEI is a thematic ETF offering exposure to U.S. energy sector stocks while providing monthly income via call option writing.
🧠 Investment Strategy & Structure
- Primarily invests in XLE, which tracks large-cap energy companies in oil, gas, and energy services.
- Sells short-term call options on XLE to generate monthly premium income.
- Seeks to balance energy sector capital growth potential with consistent income generation.
- Structure includes XLE holdings, short call positions, and minimal cash/bill-like holdings. SSGA+11SSGA+11etf.com+11investors.statestreet.comFintel
💼 Portfolio Composition (as of July 31, 2025)
| Energy Select Sector SPDR ETF | ~99.52% |
| Short XLE Aug 25 90 Call | ~−0.73% |
| Cash / Money Market | ~1.21% |
| (total ~2 holdings + option) sectorspdrs.com+12SSGA+12Yahoo Finance+12 |
Industry Exposure:
- Oil, Gas & Consumable Fuels: ~91.6%
- Energy Equipment & Services: ~8.4% investors.statestreet.com+2SSGA+2Yahoo Finance+2
📌 Direct exposure to energy-themed large caps, with income enhancement via derivative overlay.
📈 Performance & Metrics (as of July 31, 2025)
| NAV | $24.87 SSGA |
| Closing Price | $24.85 (premium ~ -0.02%) SSGA |
| AUM | ~$0.99M (~2,000 shares outstanding) SSGASeeking Alpha |
| Distribution Yield | TBD (first monthly distribution pending) |
📌 Initial performance is limited due to recent launch; long-term yield history not yet established.
🔍 Pros & Cons
| Monthly income potential from option premiums | Limited upside due to covered call cap |
| Exposure to energy sector innovation and dividends | Higher fees than XLE (0.35% vs 0.10%) |
| Attractive in sideways/volatile markets for income focus | New ETF, limited liquidity and AUM |
| Sector exposure with defined income overlay | No historical track record yet |
✅ Conclusion
XLEI is designed for those wanting energy sector exposure (including oil, gas, and energy services) combined with regular income through a covered call overlay strategy.
It suits income-oriented investors who seek sector growth plus monthly cash flow.
For portfolio diversification, pairing XLEI with conventional energy ETFs (like XLE) or other premium income ETFs can optimize sector exposure and income balance.
🏷️ Recommended Tags
#XLEI #EnergySectorETF #CoveredCall #MonthlyIncome #SPDR #PremiumIncome #EnergyDividend #IncomeETF #SectorStrategy