BP rival Royal Dutch Shell (NYSE: RDS-A) has a 45% stake Iraq’s Majnoon field, which produces over 200,000 barrels per day. BP and two Shell securities combine for 27% of IPW’s weight. France’s Total (NYSE: TOT), which has a checkered history in Iraq, still maintains a presence there. The stock is IPW’s largest individual holding with a weight of 10.6%.
Beyond Iraq, IPW and IXC offer another advantage to investors, that being European oil majors typically feature greater dividend yields than their U.S. counterparts.
The average dividend yield for BP, Shell, Total and Italy’s Eni (NYSE: E) is 4.7% compared to an average yield of 3.1% for Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), ConocoPhillips (NYSE: COP) and Occidental Petroleum (NYSE: OXY). Those U.S.-based companies combine for over a third of XLE’s weight.
XLE’s dividend yield is 1.64% compared to 2.29% for IXC. Confirming what a difference excluding U.S. stocks makes, IPW’s trailing 12-month yield is 2.84%. [Stick With Energy ETFs]
SPDR S&P International Energy Sector ETF