iShares Dow Jones US Oil Equipment & Services (IEZ)
This week, my sector pick is the iShares Dow Jones US Oil Equipment & Services (IEZ). As energy prices continue to rise and the problems in Libya remain, my model is looking towards oil related ETFs. The sector ETF I have chosen is a better option than most other ETFs at this particular moment. It tracks individual stocks and not futures. The holdings in this part of the sector are not as influenced by the constant change in oil prices. While the price of this ETF has dropped this week, I still feel energy is a great short term bet and investors could benefit from buying on the recent drop. Companies held in the ETF include firms involved in supplying equipment and services for oil fields and offshore platforms.
iShares Dow Jones US Oil Equipment & Services tracks the Dow Jones U.S. Select Oil Equipment & Services Index. This fund was launched on May 1st 2006. It has a small expense ratio of 0.47% and has an average daily trading volume of 257 thousand shares. As of April 13th, the fund had over 10.4 million shares outstanding with a market value of $654 million. Top holdings include Schlumberger Ltd (SLB), Halliburton Company (HAL), National Oilwell Varco Inc (NOV), Baker Hughes Inc (BHI), Weatherford International Ltd (WFT), Cameron International Corp (CAM), Noble Corp (NE), FMC Technologies Inc (FMC), Nabors Industries Ltd (NBR), and Pride International Inc (PDE).
David Cohne, is Senior Advisor, Investment Strategy at ETF Radar. You can reach him directly under davidcohne [at] etfradar.com