Amid speculation that oil services consolidation is on the rise following Halliburton’s (NYSE: HAL) $35 billion offer for Baker Hughes (NYSE: BHI), National Oilwell Varco has also recently been mentioned as a potential takeover target. [More M&A for Oil Services ETFs]
Speaking of the energy sector, to which IBLN allocated nearly 15.3% of its weight at the end of the third quarter, several large energy companies have been removed from the index. Anadarko Petroleum (NYSE: APC), Transocean (NYSE: RIG), which is held by Icahn, and Williams Cos. (NYSE: WMB) have been removed from IBLN’s index. Those departures could drop IBLN’s energy weight to about 10%.
Other big-name departures from the iBillionaire Index include AIG (NYSE: AIG), Microsoft (NasdaqGS: MSFT) and Netflix (NasdaqGS: NFLX).
Only NASDAQ- or NYSE-listed firms with market values of at least $1 billion are eligible for inclusion in the ETF. Each of IBLN’s 30 holdings receives a fixed equal weight of 3.33%, according to Direxion.
iBillionaire Index Weights