3 ETFs For Avoiding Energy Stocks

What happens with SPXE is that the energy sector is eliminated and its weight is redistributed among the other 10 sectors comprising the S&P 500. The difference is meaningful. SPXE is up 4.57% year-to-date while the S&P 500 is higher by 3.77%.

SPDR MSCI ACWI Low Carbon Target ETF (LOWC)

The SPDR MSCI ACWI Low Carbon Target ETF LOWC tracks the MSCI ACWI Low Carbon Target Index, which is essentially the MSCI ACWI Index reweighted with a bias toward companies with low or no carbon footprints.

This fund does have a 3.06% weight to energy stocks, explaining why it's up just 2.33% to start 2020. Technology and financial services stocks combine for 35% of the fund's weight, but LOWC is underweight the former and overweight the latter relative to the S&P 500.

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