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

 The strategy's sensible investment philosophy merits an Above Average Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in volatility exposure and an overweight in yield exposure compared with category peers. Low volatility exposure is attributed to stocks with a lower 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

Exxon Mobil

Chevron

Shell PLC

TotalEnergies SE

ConocoPhillips

Canadian Natural Resources

EOG Resources

Marathon Petroleum

Schlumberger

Enbridge

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 Global Energy ETF earns an Above Average Process Pillar rating. The most substantial contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. The firm's five-year retention rate of 92% also supports the process. 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 S&P Global 1200 Energy 4.5/22.5/45 Capped IndexTM.  The fund generally invests at least 80% of its assets in the component securities of its underlying index and in investments that have economic characteristics that are substantially identical to the component securities of its underlying index and may invest up to 20% of its assets in certain futures, options and swap contracts, and cash and cash equivalents. The index is designed to measure the performance of global equities in the energy sector. The fund is non-diversified. 

 The portfolio is overweight in energy by 12.8 percentage points in terms of assets compared with the category average, and its communication services 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 7.3 percentage points of assets and industrials similar to the average. The portfolio is positioned across 67 holdings and is quite concentrated. In particular, 58.4% of the portfolio's assets are housed within the top 10 holdings, as opposed to the category average of 51.9%. And in closing, in terms of portfolio turnover, on a year-over-year basis, 10% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

Above Average

Process

iShares Global Energy ETF benefits considerably from its equity team, earning it an Above Average People Pillar rating. There are three managers listed on the fund: Paul Whitehead, Jennifer Hsui, Greg Savage. Experience on the team is abundant, with 18 years of average portfolio management experience. Together, they manage a total of 257 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 Global Energy ETF

IXC tracks a market-cap-weighted index of global energy companies.

IXC tracks a market cap-weighted index of global energy companies.

The iShares Global Energy ETF has traded sideways over the past year but cheap valuations and upside risks to oil prices suggest a resumption of long term outperformance. The IXC ETF is more diversified than its rival the XLE, with a lower concentration risk, although this comes at the expense of fees.

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US equities have been dominated by a handful of stocks, highlighting the need for diversification. US stocks and bonds have been positively correlated, making it challenging to hedge equity risks.

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After staying above $80 per barrel for past few weeks (and even crossing the $90-mark in late September), oil prices declined below the $80 per barrel mark for the first time in over two months.

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Investing in the iShares Global Energy ETF (IXC) provides exposure to major energy companies from around the world. IXC has delivered decent returns over the past five years, but investing in US energy stocks has been more profitable.

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For investors seeking momentum, iShares Global Energy ETF IXC is probably on radar. The fund just hit a 52-week high and is up 31% from its 52-week low price of $31.91/share.

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The Energy, Consumer Non-cyclicals, and Healthcare sectors each earn an attractive-or-better rating at the start of 3Q23, based on the aggregation of individual stock ratings. Investors are advised to focus on sector funds that hold quality stocks and have low fees, with iShares Global Energy ETF rated as the top Energy fund. The article warns that cheap funds can deceive investors and emphasizes the importance of investing in funds with good stocks and low fees.

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I evaluate the iShares Global Energy ETF as a potential investment option at its current market price. I continue to own this passively managed sector fund and plan to continue investing in it despite its volatility. The headwinds that currently exist for the broader Energy sector suggests that taking some profit here might be the right course of action.

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Inflation is hot across the globe. The Russia-Ukraine war, the supply-chain woes resulting from the pandemic and the resultant rally in commodity prices have amplified inflation.

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In our discussion of IXC, we want to identify a new speculative factor that interacts in an important way with oil prices through OPEC supply decisions. That is the fact that the oil environment highlights that peak oil is further away than many thought, and stranded asset risk of current oil assets is much lower.

IXC: Trust In OPEC, They Don't See Stranded Asset Risk

I turned cautious on Energy when March got underway. Even with that backdrop, I'm surprised how quickly (and by how much) the sector has dropped. The good news is this opens up a buying opportunity. Crude has sold off, and that often suggests the time is ripe for building positions.

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IXC has significantly outperformed the market in the past year. However, the oil market cycle is now moving into a less favorable phase for the ETF. Energy stocks, which make up the entire portfolio, are yet to reflect the bearish trend. However, the moment of truth is inevitable.

IXC: Realize The Profits Before Reality Sets In

Oil stocks remain near all-time highs despite the significant decline in oil prices seen over recent months, which suggest near-term caution towards the sector is warranted. While the sector has seen its valuation discount narrow significantly, it remains attractive relative to the broader market.

IXC: Oil Stocks Face Near-Term Risks But I Remain Long

Harris Kupperman, the president of Praetorian Capital, made a couple of interesting calls heading into 2022. He predicted that stocks of the giant tech-oriented companies that led the bull market would be sold off, and that oil prices would continue to rise through the end of 2022.

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While oil prices have declined lately, strong dividend distribution, re-openings in China and a likely decline in Russian oil exports may boost oil prices and the relevant ETFs.

Pain or Gain Ahead for Energy ETFs?

The iShares Global Energy ETF continues to outperform the broader market, rising by 160% versus the MSCI World in total return terms over the past two years. There is still room for further gains as valuations remain incredibly attractive relative to their own history and the broader market.

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Global stocks have been on a wild ride this year due to rising recession risks.

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This has been a painful year for stock market investors, as nothing seems to be working.

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Energy is a strategic investment right now as it relates to the Ukraine war. No more flaring for shale oil producers, because gas is the hottest commodity in the market.

Qui Bono? Everything In The IXC

I am reducing my positions in the Energy Sector Select SPDR in favor of the iShares Global Energy ETF as the latter trades at much more attractive valuations. IXC has a trailing free cash flow yield of 12.3% and a forward free cash flow yield of 20.5% compared to the XLE's 10.4% and 13.0%.

IXC: 20% Free Cash Flow Yield Too High To Ignore

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With a wild first half of the year in the books, investors may want to go thematic with the best ETFs to buy now for the second. The post 7 Best ETFs to Buy Now for July 2022 appeared first on InvestorPlace.

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IXC invests in oil and gas stocks. The portfolio is priced for long-term decline.

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The iShares Global Energy ETF (IXC) hits a new 52-week high. Are more gains in store?

iShares Global Energy ETF (IXC) Hits a 52-Week High

IXC is exposed to oil and gas producers. Recent upside in energy stocks has enabled IXC to outperform on a short-term time horizon.

News for iShares Global Energy ETF ETF (IXC)