Although the $884 million IXC is a global ETF with over 59% of its weight devoted to U.S. stocks, European oil majors account for a significant percentage of the ETF’s weight. For example, the U.K., France and Italy combine for nearly 23% of the ETF’s weight.
Bright spots have been few and far between for equity-based energy exchange traded funds this year and for all the struggles the encountered by the sector, it still is not inexpensive relative to the S&P 500. In fact, the energy patch is downright pricey compared to the broader market. This after a spate of spending cuts that have not been met with widespread enthusiasm among investors. [Oil ETF Dividends Appear Safe…Sort Of]
“Oil producers lost more than $1.7 trillion in market value since crude prices began to slide. The specter of shrinking cash flow prompted more than 240,000 job cuts as drillers canceled rig contracts, slashed dividends and walked away from their riskiest, most ambitious projects,” according to Bloomberg.
iShares Global Energy ETF
