iShares Oil & Gas Exploration and Production

ETF description

This ETF focuses on companies involved in the exploration and production of oil and gas. It aims to track the performance of a specific group of companies in this sector, meaning its value will generally rise and fall in line with changes in the oil and gas industry. These companies are typically engaged in finding, extracting, and producing oil and gas, so the ETF’s performance can be influenced by global energy prices and the demand for these resources.

Investors who believe that the oil and gas sector will perform well over time or who want exposure to this industry might find this ETF interesting. It could be suitable for those looking to diversify their investments by including energy‑related assets, especially if they have a higher tolerance for risk. The value of this ETF can be quite volatile, as it is closely tied to market fluctuations in oil and gas prices, as well as geopolitical events and regulatory changes that affect the energy sector. For investors comfortable with these potential ups and downs and seeking exposure to this part of the market, this ETF offers a way to invest in a range of companies within the oil and gas industry.

Issuer details

iShares ETFs are issued and managed by BlackRock, the world’s largest asset management company.

With 800+ products globally and over $2trn in assets (as at June 2024), iShares ETFs are a flexible, low‑cost way for investors to gain exposure to various market segments, including fixed income, emerging markets and broad‑based indexes.

Index details

The Oil & Gas Exploration & Production index offers investors targeted exposure to companies involved in the upstream activities of the energy sector, such as exploring, drilling, and producing oil and natural gas. With its focus on the discovery and supply of vital energy resources, the index provides opportunities for investors to benefit from fluctuations in commodity prices and the growth potential within the energy market.