5 Funds to Play U.S. Oil Dominance

IEA predicts America will lead world in oil producing by 2017

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5 Funds to Play U.S. Oil Dominance

iShares Dow Jones US Energy Fund

iShares185 5 Funds to Play U.S. Oil DominanceSince IEA’s forecast focuses on the U.S., it stands to reason that a broad U.S.-based energy ETF should be at the top of the list. So, here it is: the iShares Dow Jones US Energy Fund (NYSE:IYE).

The fund tracks 88 different U.S. oil and natural gas producers including heavyweights like ConocoPhillips (NYSE:COP) and Exxon Mobil (NYSE:XOM). Additionally, the ETF includes a roughly 25% weighting in the oil service and refining sectors, making it a balanced and appealing fund for U.S. energy dominance.

That growing dominance has been reflected in the share price of the fund. Since its inception in 2000, the ETF has managed to produce a 9.14% annualized total return. Not too shabby, considering the broad market has been flat during that time. Add in a cheap expense ratio of 0.47% as well a dividend yield of 1.61% — which is decent for the sector — and investors have a great way to play the future of U.S. energy.


Article printed from InvestorPlace Media, http://investorplace.com/2012/11/5-funds-to-play-u-s-oil-dominance/.

©2014 InvestorPlace Media, LLC

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