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iShares North American Natural Resources ETF

IGE

Market cap $794M

65.08 USD

-0.83

1.26%

At close Updated Sep 14, 4:00 PM EDT

1 day

-1.26%

5 days

-1.85%

1 month

2.36%

3 months

10.17%

6 months

6.48%

Year to date

27.31%

1 year

35.02%

5 years

128.43%

10 years

98.05%

News

Positive

Neutral

Negative

Sentiment 3-Months

Positive 0%

Neutral 0%

Negative 100%

IGE: A Legacy Natural Resources ETF That Lags Its Peers

iShares North American Natural Resources ETF offers a concentrated, oil-and-gas-heavy portfolio with strong value characteristics and a supportive macro backdrop. Despite recent outperformance versus the S&P 500, IGE consistently lags peer ETFs in both long-term and recent risk-adjusted returns. IGE's exclusion of chemicals and steel, high industry concentration, and significant issuer risk limit its appeal compared to more diversified competitors.

IGE: A Legacy Natural Resources ETF That Lags Its Peers

IGE: Natural Resource ETF Benefits From Supply Imbalances But Has Underperformed Historically

IGE aims to provide economic exposure to U.S. and Canadian natural resource firms and has performed well recently, mainly due to the Strait of Hormuz crisis. Since its inception in 2001, its total return of 533% failed to outperform either the S&P 500 (869%) or Russell 2000 (741%). The fund is dominated by exposure to oil and gas firms and associated sub-sectors, with minimal exposure to other natural resources.

IGE: Natural Resource ETF Benefits From Supply Imbalances But Has Underperformed Historically

Tech Innovation Breeds Opportunities in Natural Resources

Artificial intelligence (AI), cloud computing, and machine learning are just a few of the obvious tech innovations dominating the majority of investor attention spans these days. Along with the companies focused on these technologies, attention also diverts to those integral to meeting hardware demands, like semiconductor firms.

Tech Innovation Breeds Opportunities in Natural Resources

IGE: Natural Resources Alternative To XLE

IGE is a passively managed ETF that tracks the S&P North American Natural Resources Sector Index. IGE and XLE have similar sector compositions, but IGE has a lower weighting in the top three holdings. IGE may provide a superior return due to overvaluation and overweighting of top holdings in XLE, the fund's similar risk return ratios, and larger expected multiple expansion for IGE.

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