A sound investment process and strong management team underpin iShares US Oil & Gas Explor & Prod ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a sizable cost advantage over competitors, priced within the cheapest fee quintile among peers.  

 The strategy's effective investment philosophy supports an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained an overweight in volatility exposure and yield exposure compared with category peers. High volatility exposure is attributed to companies with a higher standard deviation of returns. And a high yield exposure is rooted in holding high dividend-paying or buyback stocks. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

ConocoPhillips

EOG Resources

Marathon Petroleum

Phillips 66

Diamondback Energy

Devon Energy

Hess

Valero Energy

Coterra Energy

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category benchmark on a risk-adjusted basis over the long term. iShares US Oil & Gas Explor & Prod ETF earns an Above Average Process Pillar rating. The leading factor in the rating is the fund's impressive long-term risk-adjusted performance. This can be seen in its five-year alpha calculated relative to the category index, which suggests that the process was successful over that period. This fund tracks an index, which also increases its process rating. Historical data, such as Morningstar's Active/Passive Barometer, shows that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Lastly, the process is limited by its parent firm's risk-adjusted performance, as shown by the firm's average 10-year Morningstar Rating of 3.1 stars. A lower star rating suggests that the firm has struggled to outperform on a risk-adjusted basis.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to track the investment results of the Dow Jones U.S. Select Oil Exploration & Production Index composed of U.S. equities in the oil and gas exploration and production sector.  The fund will invest at least 80% of its assets in the component securities of the index and in investments that are substantially identical to the component securities of the index and may invest up to 20% of its assets in certain futures, options and swap contracts, cash and cash equivalents, as well as in securities not included in the index, and but which BFA believes will help the fund track the index. The fund is non-diversified. 

 The portfolio is overweight in energy by 12.0 percentage points in terms of assets compared with the category average, and its consumer defensive allocation is similar to the category. The sectors with low exposure compared to category peers are utilities and industrials, with utilities underweighting the average portfolio by 6.8 percentage points of assets and industrials similar to the average. The strategy owns 50 securities and is relatively top-heavy. Of the strategy's assets, 70.7% are concentrated within the top 10 holdings, compared to the category’s 51.2% average.

Above Average

Process

iShares’s equity team is strong compared with others in the industry, resulting in an Above Average People Pillar rating. There are three managers listed on the fund: Greg Savage, Jennifer Hsui, Paul Whitehead. Experience on the team is abundant, with 18 years of average portfolio management experience. Together, they manage a total of 258 strategies, with a Silver asset-weighted average Morningstar Medalist Rating, demonstrating their potential to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

People

BlackRock offers compelling options across asset classes and vehicles. It earns an Above Average rating for Parent. 
The firm’s approximately USD 8 trillion in assets under management, as of Sept. 30, 2022, gives it unparalleled scale and influence. It is a market-leading index fund provider globally, and its iShares exchange-traded fund franchise offers a low-cost lineup of core funds that investors can use to build a well-diversified portfolio for dirt cheap. The firm can be more adventurous in its ETF launches than some peers, so not everything it launches is appropriate for the masses. As a result, it is likely to have more ETF closures than peers that stick to the basic building blocks.  
The firm’s active fixed-income and multi-asset efforts also stand out as some of the best in the industry. Those benefit from BlackRock’s commitment to building a first-class risk management system via its Aladdin analytics software. The software is also available for sale to other firms and has proved to be a popular option for competitors, a testament to its usefulness. 
More recently, the firm has shifted its focus to ESG offerings and incorporating ESG across its investment lineup, leading to a political backlash in the United States.
BlackRock isn’t the best at everything it tries to do, but retail investors, financial advisors, and large institutions could all build robust portfolios using BlackRock’s products.

Parent

iShares U.S. Oil & Gas Exploration & Production ETF

IEO tracks a market cap weighted index of companies in the U.S. oil and gas exploration and production space according to Dow Jones.

United States Brent Oil Fund LP

Invesco DB Oil Fund

Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X Shares

VanEck Vectors Oil Services ETF

iPath Pure Beta Crude Oil ETN

Invesco Dynamic Oil & Gas Services ETF

ProShares Ultra Bloomberg Crude Oil

United States Oil Fund LP

SPDR S&P Oil & Gas Exploration & Production ETF

Oil futures hovered near unchanged early Tuesday, consolidating after a pullback the previous session as investors weighed the demand outlook for China after the country's leadership outlined its economic plans.

Oil prices consolidate as investors weigh China demand

China's growth target and OPEC+'s production cuts are pivotal in shaping global crude demand and stabilizing the oil market.

Crude Oil News Today: Influenced by China Demand Outlook, OPEC+ Supply Impact

Amid China's pledge for economic transformation and a 5% growth target, Brent and WTI oil prices face a slight downturn, stirring market volatility.

Natural Gas and Oil Forecast: OPEC+ Cuts and China's 5% Growth Target Stir Market

Oil futures failed to build on last week's gains on Monday, with U.S. and global benchmark prices settling lower.

Oil prices settle lower as OPEC+ production-cut extension suggests a weak demand outlook

WTI, Brent crude dip as OPEC+ cut expected; EQT's output reduction stirs bullish surprise for NatGas traders.

Natural Gas, WTI Oil, Brent Oil Forecasts – Crude Having Buy Rumor, Sell Fact Moment

Crude oil markets continue to see a lot of noisy behavior, but at the end of the day both grades that I follow do look very bullish, and at this point I think we will eventually have some type of big breakout to the upside.

Crude Oil Price Forecast – Crude Oil Continues to See Bullish Pressure

Crude oil market supply remains tight due to OPEC+'s sustained cuts and escalating Middle East tensions, supporting prices.

Crude Oil News Today: OPEC+, Russia Deepen Cuts Adding to Supply Tightness

OPEC+ extends 2.2M bpd output cuts into next quarter; Saudi Arabia to maintain 1M bpd cut until June.

The Market News Today: OPEC+ Extends Oil Output Reductions to Bolster Stability

Oil prices traded mixed Monday after oil cartel OPEC+ agreed to extend voluntary output reductions until the second quarter of this year.

Oil prices slip after OPEC+ extends voluntary oil output cuts until mid-year

Amid geopolitical tensions and OPEC+ cuts, the latest forecast propels market optimism, boosting natural gas and oil prices with a strategic eye on supply.

Natural Gas and Oil Forecast: Geopolitical Tensions and OPEC+ Cuts Shape Market

Oil prices rose on Monday after OPEC+ members agreed to extend voluntary oil output cuts of 2.2 million barrels per day into the second quarter, largely in line with market expectations.

Oil rises after OPEC+ extends output cuts

Some members of OPEC and allies led by Russia (OPEC+) have agreed to extend voluntary first-quarter oil output cuts into the second quarter, sources said on Sunday.

Some OPEC+ members agree to extend voluntary cuts to second quarter, sources say

OPEC+'s upcoming decision on production cuts could significantly influence oil markets, with potential impacts on global supply.

Crude Oil News Today: Will OPEC+ Extend Production Cuts Beyond Q2?

OPEC+ may extend its production cuts through the second quarter.

Natural Gas, WTI Oil, Brent Oil Forecasts – Oil Tests New Highs As Traders Bet On OPEC+ Production Cuts

Crude continues to look bullish overall, as the resistance barriers above are within sight for the bullish traders. Are we about to see a major move?

Crude Oil Weekly Price Forecast – Crude Oil Continues to Look Bullish

The crude oil markets look like they are trying to build enough pressure for a breakout again on Friday. It seems at this point that it is only a matter of time.

Crude Oil Price Forecast – Crude Oil Continues to Build Pressure For a Breakout

Oil booked second consecutive monthly gain as front month contracts trade at a premium to later months, which is typically a sign of a tightening oil market.

Oil prices rise more than 1% as signs indicate tightening market ahead of OPEC+ decision

Oil futures rose Friday after a strike by Israeli forces a day earlier was said to have killed more than 100 Palestinians waiting for aid in Gaza.

Oil prices rise after Gaza deaths heighten tensions

Oil prices rise amid global supply-demand factors, OPEC+ cut speculations, and fluctuating U.S. inventories impacting short-term market forecasts.

Crude Oil News Today: OPEC+ Cuts Could Sustain $80+ Barrel Prices

With a 4.2M barrel increase in US crude inventories, the oil market faces pressure, hinting at a cautious stance for natural gas and oil forecasts amid economic uncertainties.

Natural Gas and Oil Forecast: 4.2M Barrel Inventory Jump Weighs

Oil prices rose on Friday and were set to end the week modestly higher as talks over a potential ceasefire in Gaza were further complicated by the deaths of more than 100 Palestinians waiting for an aid delivery.

Oil prices rise as Gaza deaths complicate ceasefire talks

WTI oil continues its attempts to settle above the resistance at $79.00 – $80.00.

Natural Gas, WTI Oil, Brent Oil Forecasts – WTI Oil Tests Key Resistance

The crude oil market continues to see a lot of buy on the dip” behavior, therefore I think it comes down to the idea that I had we are heading into a cyclical bullish time of year, and a lot of people will have to pay close attention.

Crude Oil Price Forecast – Crude Oil Markets Continue to Find Buyers on Dips

U.S. oil futures nudged higher early Thursday, shaking off weakness attributed to data a day earlier that showed a further rise in U.S. crude inventories.

Oil prices nudge higher, attempting to shake off rise in U.S. crude inventories

Analysts were less bullish on oil in February for a fourth straight month, with ample supplies seen holding prices near $80 a barrel this year as the Middle East conflict has only a modest impact on crude flows, a Reuters poll showed on Thursday.

News for iShares U.S. Oil & Gas Exploration & Production ETF ETF (IEO)