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3 Funds to Cash In on an Oil Boom

Energy funds remove the risk of individual stock picks

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iShares U.S. Energy ETF

iShares185Assets: $1.4 billion
YTD Returns: 18%
Gross Expenses: 0.46%
Dividend Yield: 1.5%

The iShares U.S. Energy ETF (IYE) is in many ways a similar investment to the Energy SPDR, with only slightly different weightings. Exxon Mobil (XOM), Chevron (CVX) and Schlumberger (SLB) make up the top three again, but this time they represent about 42% of the entire fund — with XOM alone a whopping 22% of the portfolio.

This overweighting would be great if Exxon picks up, but since the megacap has lagged, that has obviously held back IYE lately as a result.

Also, about 25% of IYE is focused on service and equipment stocks for a slightly higher weighting, and there’s also a smattering of alternative energy picks for good measure — though they represent less than 1% of the total makeup for this ETF.

Article printed from InvestorPlace Media,

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