The largest risk factor remains the oil price. If he increases-driven by demand, conflicts or opec resolutions-the profits of the promotional companies bubble up. (Photo: Freepik, Andreas)
The Ishares Oil & Gas Exploration & Production ETF (ISIN: IE00B6R51Z18) is not for the faint of heart. It attracts risk-loving investors to the world of oil and gas production- an industry that is characterized by spectacular profits, but also by deep falls.
The ETF depicts the S&P Commodity Producers Oil & Gas Exploration & Production Index and combines companies that bring raw materials out of the earth: from the discovery of new occurrence to the promotion of the last barrel of oil. Anyone investing here relies on the primal forces of global energy supply – and must also submit to the moods of the oil price.
Performance: roller coaster ride of the returns
The numbers of the ETF read like a mountain and descent. In the past 5 years he has increased by impressive 90 percent, started with an increase of 7 percent into 2025 and achieved a one -year return of around 18 percent. But the success story also has dark sides: Between edition 2011 and March 2020, the fund slipped into the minus by around 60 percent.
Such phases show: A buy-and-hold strategy that works with broad market ETFs reaches its limits here. Rather, timing, market gods and the willingness to react quickly are in demand – for example when the oil price tilts or geopolitical crises shake the markets.
The giants of funding
At the top of the portfolio are heavyweights such as Eog Resources (10.09 percent), a pioneer of the US fracking revolution, conocophillips (9.65 percent), known for its global exploration projects, and Canadian Natural Resources (9.22 percent) , a Canadian raw material giant. These companies combine technical know-how, financial strength and access to huge occurrence.
The ETF also relies on smaller, agile players such as Devon Energy, which open up unconventional sources using innovative methods. This mixture of stability and dynamics promises growth – but also increases volatility.
Geographical focus: USA dominate
With 68 percent in the United States and 19 percent in Canada, the ETF is strongly focused on North America. Smaller positions in Australia (7 percent), Japan, Norway and Great Britain ensure limited Diversification. The regional concentration reflects the power of the US oil industry, which not least benefits from the slate gas revolution. It also makes the ETF dependent on Washington’s energy policy-whether fracking regulation, taxes on fossil fuels or export restrictions.
Oil price: curse and blessing at the same time
The largest risk factor remains the oil price. If he increases-driven by demand, conflicts or opec resolutions-the profits of the promotional companies bubble up. If he falls, as in 2020, there are painful losses. The ETF is therefore a direct tile in the raw material poker. For investors, this means that those who get in here must have the analysis of the oil market in their blood – or rely on long -term trends such as the persistent dependence of the world on fossil fuels.
Environmental risks and pressure on decarbonization
Added to this is the increasing headwind. Climate protection goals, the withdrawal of investors from fossil fuels and the expansion of renewable energies could put the industry under pressure in the long term. Oil and gas are still needed for decades – but the political and social focus is shifting. Companies that do not invest in low -carbon technologies risk losses of image and regulatory hurdles.
Who is the ETF worth for?
The Ishares Oil & Gas Exploration & Production ETF is ideal for strategic gamers and energy -savvy investors who are willing to accept high volatility for possible returns. As an admixture, it can give a portfolio buoyancy with increasing oil prices. As a long -term core investment, however, he is only something for conviction who believe in the further dominance of fossil energy sources.
Conclusion: high-risk asset with character
This ETF is not a comfortable passive investment, but a tool for professionals and brave private investors. It offers the opportunity to participate in the raw material dynamics – but requires a certain amount of risk to risk. If you get it into the depot, you should keep an eye on the oil price charts, follow geopolitical developments and be ready to act quickly in case of doubt. In a world that fluctuates between energy safety and climate change, this remains an exciting but sensitive game.
Disclaimer:
No investment advice. No call to buy or sell securities.