Strive U.S. Energy ETF Up 26.32% YTD with Exxon, Chevron at 47.19%
Strive U.S. Energy ETF has risen 26.32% year-to-date with Exxon Mobil and Chevron comprising 47.19% of its holdings, underperforming XLE and VDE by roughly 12-13% since its August 2022 launch. Goldman Sachs warns a Middle East escalation could push oil toward $100 per barrel, boosting energy names.
1. ETF Performance and Concentration
Since its August 2022 inception, Strive U.S. Energy ETF (DRLL) has delivered a 26.32% year-to-date return, with 98.6% of its portfolio in energy stocks and a 47.19% combined weighting in Exxon Mobil and Chevron. The fund was designed to counter ESG-driven underinvestment by backing maximum production and shareholder returns over carbon targets.
2. Underperformance Compared to Peers
Despite strong recent gains, DRLL has lagged benchmark energy ETFs, underperforming Energy Select Sector SPDR (XLE) and Vanguard Energy ETF (VDE) by approximately 12-13% since launch. Critics point to the fund’s higher expense ratio and concentrated holdings as factors that have eroded its competitive performance over passive alternatives.
3. Geopolitical Oil Price Drivers
Escalating tensions around Iran and the Strait of Hormuz, through which roughly 20% of global oil supply transits, have driven WTI crude up 10.3% in the past month to $71.13 per barrel. Goldman Sachs projects prices could reach $100 if conflict intensifies, a scenario poised to expand earnings for major producers like Exxon Mobil and Chevron.