The Oil Spill, Drilling Stocks and ETFs: BP Is Far From the Only One Affected

by: Tom Lydon

BP’s stock has plummeted by half since the oil spill began in April. While there are several ETFs that have exposure to the company, many more don’t and have managed to dodge any ill effects.

Since BP is a company based in the United Kingdom, trading in America via American Depositary Receipts (ADRs), it’s not a component of many ETFs that follow the energy sector, including two of the largest: Energy Select Sector SPDR (NYSEARCA:XLE) and Vanguard Energy (NYSEARCA:VDE), says Ian Salisbury for The Wall Street Journal.

Transocean, the owner of the rig, complicates things a bit. Although it’s not technically a U.S. company – it’s based in Zug, Switzerland – it’s still classified as one by MSCI and is a major holding in VDE. Transocean is down 49% year-to-date.

But it’s not just BP and Transocean (NYSE:RIG) who are falling in this mess. There are other companies at play here, too, and they’re major holdings in some energy ETFs:

  • Anadarko Petroleum (NYSE:APC), down 44% year-to-date
  • Halliburton (cement company) (NYSE:HAL), down 25% year-to-date
  • Cameron International (responsible for blowout preventer) (NYSE:CAM), down 18% year-to-date
  • SPDR Energy Select Sector (XLE): Anadarko, 2.3%; Halliburton, 2.3%; Cameron, 1.2%

  • iShares S&P Global Energy Sector Index Fund (NYSEARCA:IXC): Halliburton, 1%; Anadarko, 0.8%; Cameron, 0.4%

  • Vanguard Energy ETF (VDE): Anadarko, 2.7%; Halliburton, 2%

Tisha Guerrero contributed to this article.

Disclosure: None