Key Takeaways
- The oil and gas sector dramatically underperformed the broader market over the past year.
- The ETFs with the best 1-year trailing total return are FCG, XOP, and IEO.
- The top holdings of these ETFs are Diamondback Energy Inc., Renewable Energy Group Inc., and ConocoPhillips, respectively.
First Trust Natural Gas ETF (FCG)
- Performance over 1-Year: 30.2%
- Expense Ratio: 0.60%
- Annual Dividend Yield: 2.99%
- 3-Month Average Daily Volume: 961,124
- Assets Under Management: $129.9 million
- Inception Date: May 11, 2007
- Issuer: First Trust
FCG is a multi-cap, mixed fund for the ISE-Revere Natural Gas Index. The index is balanced and holds exchange-listed companies that derive a large portion of revenues from the discovery and development of natural gas. FCG owns a basket of approximately 34 firms, with the top 10 holdings accounting for approximately 45 per cent of the assets invested. The Fund’s top holdings include Diamondback Energy Inc. (FANG); Occidental Petroleum Corp. (OXY); and Marathon Oil Corp. (MRO), both of which are energy firms involved in the discovery and development of natural gas and related items.
SPDR S&P Oil & Gas Exploration & Production ETF (XOP)
- Performance over 1-Year: 2.8%
- Expense Ratio: 0.35%
- Annual Dividend Yield: 1.48%
- 3-Month Average Daily Volume: 8,343,997
- Assets Under Management: $2.7 billion
- Inception Date: June 19, 2006
- Issuer: State Street SPDR
XOP is a multi-cap, blended ETF targeting the S&P Oil & Gas Exploration & Production Select Industry Index. The index aims to provide exposure to companies active in the Integrated Oil & Gas, Oil & Gas Exploration & Development and Oil & Gas Refining & Marketing subsectors.4 Due to its equal weighting approach, XOP is more balanced than some of the other oil and gas ETFs. The top holdings of this fund include Renewable Energy Group Inc. (REGI), a manufacturer of biofuels and renewable energy; Diamondback Energy; and Marathon Oil.5.
iShares U.S. Oil & Gas Exploration & Production ETF (IEO)
- Performance over 1-Year: -5.8%
- Expense Ratio: 0.42%
- Annual Dividend Yield: 2.65%
- 3-Month Average Daily Volume: 140,959
- Assets Under Management: $188.9 million
- Inception Date: May 5, 2006
- Issuer: iShares
IEO is a mixed multi-cap fund that monitors the Dow Jones U.S. Select Oil Exploration & Production Index. This index consists of U.S. shares in the oil and gas exploration and production industries. The top 10 holdings account for nearly three quarters of invested assets, and the top 5 holdings represent more than 50 percent . The top three holdings are ConocoPhillips (COP); EOG Resources Inc. (EOG); and Phillips 66. (PSX). The first two firms are mainly oil and/or gas exploration and production companies, while the third is a downstream energy business engaged in oil refining, marketing and transport.
The comments, opinions and analyses expressed herein are for informational purposes only
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