XLE vs OIH Stock Comparison: AI Score, Valuation, Performance and Upside
XLE and OIH both provide energy sector exposure but to different parts of the energy value chain. XLE is primarily an integrated oil major fund (ExxonMobil, Chevron) with diversified energy exposure including refining and some services. OIH is pure oilfield services (SLB, Halliburton, Baker Hughes) with higher leverage to drilling activity and oil price upturns. In oil price rallies, OIH typically outperforms XLE; in oil price crashes, OIH typically falls harder.
XLE vs OIH — XLE (the S&P 500 energy sector ETF with integrated oil majors ExxonMobil and Chevron as top holdings alongside upstream producers and refiners, providing broad energy exposure with above-average dividend yield) versus OIH (the oil services ETF with SLB, Halliburton, and Baker Hughes as top holdings providing higher oil price leverage through drilling activity and completion services during oil upcycles).
XLE holds the edge across 4 of 5 key metrics in this comparison. OIH has delivered stronger 1-year price return (+57.00% vs +47.84% for XLE).
- want broad energy sector exposure across the full value chain — production, refining, and services — without taking the concentrated oilfield services bet
- value dividend income from integrated oil majors — ExxonMobil and Chevron's 3-4% yields provide energy sector income that pure-play upstream or services ETFs don't match
- see energy as an inflation hedge and portfolio diversifier vs growth stocks — integrated oil companies' moderate earnings cyclicality is less volatile than services companies
- are comfortable with ExxonMobil/Chevron concentration, oil price cyclicality, and long-term energy transition secular headwinds
- want maximum oil price leverage in energy sector exposure — when oil producers ramp drilling activity in response to high oil prices, services companies' revenue grows faster than integrated producers
- see international deepwater and Middle East energy development as a multi-year capex cycle — SLB and Baker Hughes benefit from global oil development spending regardless of US shale activity
- believe oilfield technology (digital, AI, completion optimization) commands growing premium in the energy services market — differentiating higher-value services from commodity drilling
- are comfortable with higher cyclicality (deeper drawdowns in oil price crashes), US rig count sensitivity, and customer pricing power pressuring services margins in downturns
| Metric | XLE | OIH |
|---|---|---|
| ETF scorei | 89.0 | 73.0 |
| Latest closei | $64.31 | $398.71 |
| 1M returni | +1.15% | -4.77% |
| 6M returni | +9.93% | +3.03% |
| 1Y returni | +47.84% | +57.00% |
The ETF score weights long-term returns and risk-adjusted performance most heavily, but still rewards low expense ratios, larger fund size, and broader diversification — so it can favor low-cost, broad, mega-cap funds over smaller thematic or actively-managed funds even when the latter have delivered stronger returns.
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | XLE | OIH |
|---|---|---|
| 1Y ago | $15.25K (+52.5%) started 2025-09-18 | $15.97K (+59.7%) started 2025-09-18 |
| 5Y ago | $39.31K (+293.1%) started 2021-09-20 | $25.77K (+157.7%) started 2021-09-20 |
| 10Y ago | $46.46K (+364.6%) started 2016-09-19 | $10.62K (+6.2%) started 2016-09-19 |
Hypothetical — past performance does not guarantee future results.
| Metric | XLE | OIH |
|---|---|---|
| Expense ratioi | 0.08% | 0.35% |
| Total assets (AUM)i | $41.44B | $2.02B |
| Dividend yieldi | 2.37% | 1.13% |
| Trailing P/Ei | 17.84 | 19.07 |
| Betai | 0.49 | 0.99 |
| 52-week change | 47.84% | 57.00% |
| Metric | XLE | OIH |
|---|---|---|
| 1Y returni | +47.84% | +57.00% |
| 6M returni | +9.93% | +3.03% |
| 1M returni | +1.15% | -4.77% |
| 1Y Sharpe ratio | 1.70 | 1.51 |
| Betai | 0.49 | 0.99 |
| Dividend yieldi | 2.37% | 1.13% |
| 5Y CAGR | +26.44% | +19.10% |
Over the past year, XLE and OIH have moved moderately in the same direction (correlation of 0.68), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | XLE | OIH |
|---|---|---|---|
| 1Y | Growthi | +47.84% | +57.00% |
| CAGRi | +47.88% | +57.04% | |
| Volatilityi | 21.86% | 30.06% | |
| Sharpe ratioi | 1.70 | 1.51 | |
| Sortino ratioi | 2.50 | 2.27 | |
| Max drawdowni | 14.98% | 20.78% | |
| Current drawdowni | 2.46% | 12.16% | |
| Avg drawdowni | 4.06% | 5.26% | |
| Ulcer Indexi | 5.67% | 7.60% | |
| Max daily dropi | 4.12% | 5.69% | |
| Max wkly dropi | 7.02% | 9.48% | |
| 5Y | Growthi | +222.68% | +139.37% |
| CAGRi | +26.44% | +19.10% | |
| Volatilityi | 25.59% | 36.08% | |
| Sharpe ratioi | 0.87 | 0.54 | |
| Sortino ratioi | 1.23 | 0.77 | |
| Max drawdowni | 26.04% | 43.80% | |
| Current drawdowni | 2.46% | 12.16% | |
| Avg drawdowni | 6.79% | 14.31% | |
| Ulcer Indexi | 8.47% | 17.59% | |
| Max daily dropi | 9.20% | 12.27% | |
| Max wkly dropi | 18.68% | 26.08% | |
| 10Y | Growthi | +184.69% | -11.33% |
| CAGRi | +11.03% | -1.20% | |
| Volatilityi | 29.59% | 42.33% | |
| Sharpe ratioi | 0.35 | 0.08 | |
| Sortino ratioi | 0.49 | 0.11 | |
| Max drawdowni | 66.81% | 89.61% | |
| Current drawdowni | 2.46% | 33.54% | |
| Avg drawdowni | 13.94% | 50.13% | |
| Ulcer Indexi | 19.30% | 53.90% | |
| Max daily dropi | 20.14% | 32.24% | |
| Max wkly dropi | 34.55% | 51.57% |
| Category | XLE | OIH |
|---|---|---|
| Fund name | State Street Energy Select Sector SPDR ETF | VanEck Oil Services ETF |
| Type | ETF | ETF |
| Expense ratioi | 0.08% | 0.35% |
| Total assets (AUM)i | $41.44B | $2.02B |
| Dividend yieldi | 2.37% | 1.13% |
- Broad energy sector diversification: XLE covers the full energy value chain — upstream production, integrated majors, midstream, refining, and services in one ETF
- Dividend income from integrated majors: ExxonMobil and Chevron have long dividend growth histories — XLE provides above-average dividend yield (~3-4%) from its integrated oil major weighting
- Inflation hedge characteristics: energy stocks historically correlate positively with inflation — XLE provides portfolio inflation protection when commodity prices rise
- Higher oil price leverage than integrated majors: when oil prices rise and producers increase drilling, services companies benefit from increased volume AND price — creating higher operating leverage than integrated oil companies in oil upcycles
- International deepwater and unconventional exposure: Schlumberger, Halliburton, and Baker Hughes provide global oilfield services — capturing international production growth in Middle East, deepwater, and unconventional plays
- Technology-intensive services commanding premiums: modern well completion technology, digital oilfield monitoring, and AI-driven production optimization are high-margin technology services growing within traditional energy
- ExxonMobil and Chevron concentration: XLE's top 2 holdings represent ~42% of the fund — performance heavily tracks these two companies rather than the broader energy sector
- Oil price cyclicality: XLE's returns are heavily dependent on WTI and Brent crude oil prices — oil price crashes (2020, 2015) devastate XLE returns regardless of company quality
- Energy transition risk: long-term oil demand may peak as electric vehicles and renewable energy grow — XLE's integrated oil holdings face secular headwinds from decarbonization trends
- Higher cyclicality than integrated majors: oilfield services are highly cyclical — when oil prices fall and producers cut drilling budgets, services companies face rapid revenue and earnings declines
- US rig count sensitivity: North American oilfield services revenue tracks US land rig count closely — rig count declines in oil price downturns rapidly translate to OIH revenue pressure
- Customer pricing power creating services margin pressure: oil producers use market power to pressure services pricing in downturns — services companies must accept lower contract prices when producers cut budgets
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