IXC, the iShares offering, is a global ETF combining both U.S. and foreign companies. The $1 billion ETF allocates over 38% of its combined weight to Exxon, Chevron, Shell, BP and Total, giving fund plenty of potential leverage to a new-look oil industry in Mexico. [Stick With Energy ETFs]
As an ETF that holds no U.S. energy firms, IPW comes with its own set of advantages. Shell, BP and Total combine for about 38% of IPW’s weight, giving the fund plenty of exposure to Mexico, but Mexico is not the only reason to consider IPW.
For starters, global energy stocks are less expensive than their U.S. counterparts. IPW’s P/E ratio is just over 13 compared to 15.3 on the Energy Select Sector SPDR (NYSEArca: XLE), the largest energy ETF.
Shell, BP and Total also sport higher dividend yields than their U.S. equivalents. The average yield for Exxon and Chevron is 2.95%, but average yield on Shell, BP and Total is 4.6%. IPW’s dividend yield is 3.2% compared to 1.76% on XLE. [Attractive Dividends, Valuations With Energy ETFs]
SPDR S&P International Energy Sector ETF
