iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund (NYSEArca: IEO)
The iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund is more focused on large -caps, but has a comparable beta to XOP. Differences between these two funds are noteworthy as IEO is up 32% in the past year while XOP has climbed 27%.
IEO offers a two-fold way for investors to profit from increased North American oil production. First, it is one of just a small number of energy ETFs that feature decent exposure to refining names such as Phillips 66 (NYSE: PSX) and Marathon Petroleum (NYSE: MPC). Second, IEO’s largest holding, Occidental Petroleum (NYSE: OXY), could sell its international operations to boost shareholder value. As it is, the company is a dominant player at California’s Monterey Shale.
On a related noted, Devon Energy (NYSE: DVN) only explores for oil and gas at onshore locations in the U.S. and Canada. Those two stocks combine for 17% of the ETF’s weight.
iShares Dow Jones U.S. Oil & Gas Exploration & Production Index Fund
ETF Trends editorial team contributed to this report. Tom Lydon’s clients own shares of IEO.