IYE Looks A Bit Expensive Compared To IGE

Aug. 15, 2022 9:08 AM ETiShares U.S. Energy ETF (IYE)IGE

Summary

  • IYE is weighted towards integrated oil and oil E&P which are both commodity exposed.
  • We think that supply dynamics will remain favourable, but there are commodity risks on the demand side with the macro environment.
  • IGE has more exposures that are less commodity exposed. It is our preference given the superior earnings yield in light of macro risks.
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The iShares U.S. Energy ETF (NYSEARCA:IYE) is a US energy ETF that is focused more on integrated and E&P oil companies, and therefore has more commodity exposure. The situation in oil markets is pretty favourable in particular from the

iye breakdown

Sector Breakdown (iShares.com)

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