In this article, we discuss 5 best energy ETFs to buy. If you want to read our discussion on the energy sector, head directly to 11 Best Energy ETFs: Top Oil, Gas and Renewable Energy Funds.
5. iShares U.S. Oil & Gas Exploration & Production ETF (CBOE:IEO)
5-Year Share Price Performance as of March 14: 76.52%
iShares U.S. Oil & Gas Exploration & Production ETF (CBOE:IEO) is one of the best energy ETFs to invest in. iShares U.S. Oil & Gas Exploration & Production ETF (CBOE:IEO) aims to replicate the performance of the Dow Jones U.S. Select Oil Exploration & Production Index, which comprises US equities in the oil and gas exploration and production sector. Established on May 01, 2006, the ETF offers targeted access to domestic oil and gas stocks. As of March 13, 2024, iShares U.S. Oil & Gas Exploration & Production ETF (CBOE:IEO) holds a portfolio of 47 stocks with net assets exceeding $708 million, featuring a net expense ratio of 0.40%.
EOG Resources, Inc. (NYSE:EOG) is one of the top holdings of iShares U.S. Oil & Gas Exploration & Production ETF (CBOE:IEO). EOG Resources, Inc. (NYSE:EOG) is an energy company that operates in the exploration, development, production, and marketing of crude oil, natural gas liquids, and natural gas. On February 22, EOG Resources, Inc. (NYSE:EOG) declared a $0.91 per share quarterly dividend, in line with previous. The dividend is payable on April 30, to shareholders on record as of April 16.
According to Insider Monkey’s fourth quarter database, 42 hedge funds were long EOG Resources, Inc. (NYSE:EOG), compared to 45 funds in the last quarter. Harris Associates is the largest stakeholder of the company, with 7.28 million shares worth $881 million.
Artisan Value Fund stated the following regarding EOG Resources, Inc. (NYSE:EOG) in its fourth quarter 2023 investor letter:
“On the downside in Q4, our two energy holdings, Schlumberger, the world’s largest oil services company, and EOG Resources, Inc. (NYSE:EOG), a US shale-focused E&P company, were weak along with the broader sector. EOG is one of the highest quality operators in the E&P space. EOG has a low-cost production position with a strong reserve base, giving it an advantage versus peers. Further, EOG’s management has long focused on return on invested capital and cash flow generation, distinguishing it from many of the company’s competitors, which prioritize growth over profitability. Its commitment to return excess capital to shareholders via regular and special dividends is also highly appealing, particularly in a period of rising interest rates. The company has proven its ability to create economic value for shareholders, even over the past decade that included the toughest energy commodity environment of the last 30+ years. The company’s strong balance sheet enabled it to increase production capabilities during the prior downturn.”
