In total, the fund holds about 104 securities in its basket. Of these firms, BP occupies the second position with 10.1% of total assets. About 90% of the portfolio is allocated to gas and consumable fuels, and the rest to equipment & services. The product is a large cap centric fund with a tilt toward value stocks.
In terms of country exposure, United Kingdom takes the largest share at 34.7% while Canada and France also gets double-digit exposure at 27.2% and 12.2%, respectively. The product added nearly 6.3% in the year-to-date time frame.
iShares MSCI ACWI ex U.S. Energy ETF (AXEN)
This ETF follows the MSCI All Country World ex USA Energy Index, giving investors exposure to the global energy space outside the U.S. The fund holds 102 stocks in its basket with AUM of $5.5 million while charging 48 bps in fees per year. Volume is little as it exchanges nearly 3,000 shares per day.
BP takes the top spot making up 8.24% of the assets while the gas and consumable fuels sector dominates with 93% share. Like IPW, this ETF also focuses on large caps with a nice mix of value, blend and growth securities (read:Is This the Top for Oil Service ETFs?).
The product is spread out across many nations, including United Kingdom (27.25%), Canada (19.90%), France (8.68%), Russia (7.85%) and China (6.82%). AXEN gained nearly 4% so far this year.
iShares MSCI Global Energy Producers ETF (FILL)
This fund manages a $5.1 million asset base and provides exposure to a large basket of 243 global energy producer stocks by tracking the MSCI ACWI Select Energy Producers Investable Market Index. The product has an expense ratio of 0.39% and sees a paltry volume of about 6,000 shares a day.
FILL is also a large cap centric fund with a slight tilt toward value stocks. Here, BP occupies the third position in the basket at 5.03%. North American firms dominate the fund’s returns with 48.83% of total assets, closely followed by United Kingdom (16.75%) and Canada (9.89%).
From a sector look, the product is skewed toward oil and gas integrated with 61% share and exploration and production with 32% share. The fund has returned over 12% so far this year.
BP’s earnings beat sent the stock higher on the day, thus becoming the cornerstone for other stocks in the space. A stronger economic outlook in the U.S. and a rebound in many international markets bode well for the energy stocks.
However, the sector currently seems to be under pressure from the sluggish trading in oil, trading below the triple-digit mark, and a huge supply of the commodity in the U.S. Given this, investors could definitely take advantage of the slowdown in the space as well as solid earnings results from many oil companies.
This article is brought to you courtesy of Eric Dutram.