iShares Natural Resources Sector ETF: A Good Passive Investment Vehicle

May.27.09 | About: iShares North (IGE)

iShares S&P North American Natural Resources Sector Index (NYSEARCA:IGE) is an equity ETF that tracks an index based on US traded natural resources related stocks.

iShares IGE ETF is a passive fund and seeks to replicate the performance of the underlying index. At any given point, it invests about 90% of its assets in the underlying index related stocks.

The iShares IGE ETF has a total operating expense of 0.48%. The iShares IGE ETF may declare and pay out a dividend semi-annually and if there are any capital gains from sales of its assets, it may pay that at the end of the year.

The ETF has about 1.24 billion dollars worth of assets under management and its P/E Ratio was 13.31 as on 5/15/2009.

Top Stock Holdings

Chevron (NYSE:CVX): 6.93%

Exxon Mobil (NYSE:XOM): 6.75%

ConocoPhilips (NYSE:COP): 6.06%

Schlumberger Ltd (NYSE:SLB): 5.25%

Occidental Petroleum (NYSE:OXY): 4.87%

Encana Corp (NYSE:ECA): 3.29%

Barrick Gold Corp (NYSE:ABX): 3.06%

Goldcorp Inc (NYSE:GG): 2.63%

Newmont Mining Corp (NYSE:NEM): 2.37%

Apache Corp (NYSE:APA): 2.32%

Top Sectoral Holdings

Oil Gas & Consumable Fuels: 64.87%

Metals and Mining: 15.58%

Energy Equipment & Services: 14.36%

Containers and Packaging: 2.74%

Paper and Forest Products: 1.23%

Construction Materials: 1.07%

S-T Securities: 0.09%

Source: iShares Fact Sheet


The iShares IGE ETF is a good passive investment vehicle for people who are looking for investing in natural resources related stocks. While it is concentrated in the Oil and Energy sector, it has very little exposure to any single stock and that helps hedge risks against the declines in stock prices of a single company.