iShares S&P Global Energy ETF
Crude oil and natural gas are global commodities, consumed and traded all over the world. As such, some of the sectors best opportunities lie within firms domiciled outside of the U.S. That’s where the iShares S&P Global Energy ETF (NYSE:IXC) comes in.
Aside from providing a 51% weighting of energy firms in the states, the fund also tracks a virtual who’s-who of the largest international energy concerns across its 90 holdings. This includes companies like France’s Total (NYSE:TOT) and BP (NYSE:BP). That international focus also includes a nearly 10% weighting towards Canada — a nation most investors a woefully under exposed to.
Of course, expenses for IXC aren’t as cheap as Vanguard’s star energy fund, coming in at 0.48%. However, the fact that IXC basically follows a 50/50 breakdown of U.S. and international companies means that price is pretty reasonable.
Plus, over the last decade, IXC has managed to produce just under a 12% annual return.