iShares S&P Global Energy Sector Index Fund (NYSEArca: IXC)
An investment in IXC does not mean sacrificing exposure to U.S. energy stalwarts such as Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX) as the two largest U.S. oil companies combine for 23.6% of the ETF’s weight. However, IXC does mix in major European integrated oil names such as BP (NYSE: BP) and Royal Dutch Shell (NYSE: RDS-A).
In terms of yield, the international exposure afforded by IXC works in investors favor because the European oil giants usually feature higher yields than their U.S. counterparts. IXC has a trailing 12-month yield of 2.42%, which is almost 35 basis points better than the Energy Select Sector SPDR (NYSEArca: XLE). [Energy ETFs Offer Attractive Yields]
iShares S&P Global Industrials Sector Index Fund (NYSEArca: EXI)
On the back of impressive performances by Dow components Boeing (NYSE: BA) and General Electric (NYSE: GE) along with Union Pacific (NYSE: UNP), the U.S. industrials sector has been solid this year. That is a good thing for EXI. The fund has also gotten a lift from its weight to Japan. Combined, the U.S. and Japan represent nearly two-thirds of the ETF’s weight, which has been good news for the ETF as those have been two of the best-performing equity markets in the developed world.
EXI’s exposure to Australia, Canada and the Eurozone explains why the fund has lagged U.S. counterparts. However, Eurozone industrial production rose for a third straight month in April with the bulk of those gains attributable to the region’s two largest economies, Germany and France. Those two countries combine for over 9% of the fund’s weight.
Industrial production in the U.K., EXI’s third-largest country weight, also posted a small, surprise increase in April. Europe has taught investors some hard lessons over the past several years, among them that news flow there can turn on a dime. However, if improving economic news becomes the norm, EXI could benefit.
iShares S&P Global Industrials Sector Index Fund
