The iShares U.S. Oil & Gas Exploration & Production ETF (IEO) is an exchange-traded fund designed to track the performance of U.S. companies engaged in the exploration and production of oil and natural gas. The ETF is managed by BlackRock through its iShares platform and trades under the ticker IEO on the Cboe BZX Exchange.

Classified as a sector equity ETF, the fund provides exposure to companies primarily involved in discovering, developing, and producing energy resources. Its portfolio focuses on the upstream segment of the oil and gas industry, which encompasses exploration and extraction activities.

The ETF follows a passive management approach and seeks to replicate the performance of the Dow Jones U.S. Select Oil Exploration & Production Index, a benchmark composed of U.S. companies primarily engaged in hydrocarbon exploration and production.

Diversification and sector exposure

IEO provides exposure primarily associated with:

• Oil exploration.

• Oil and gas production.

• Energy.

• Independent energy producers.

• Crude oil.

• Natural gas.

• Energy resources.

• Upstream energy operations.

The portfolio consists of companies directly involved in oil and natural-gas production, including independent producers and firms with significant operations across various regions of the United States.

The ETF’s performance is closely tied to conditions in the energy market and is heavily influenced by crude-oil and natural-gas prices, as well as global supply-and-demand expectations.

Structure and costs

IEO shares trade on the secondary market on the Cboe BZX Exchange during regular trading hours. Share creation and redemption occur through authorized participants, a mechanism intended to help align the ETF’s market price with its net asset value (NAV).

The fund charges a management fee as outlined in its prospectus and does not apply a performance fee. Dividends received from portfolio holdings may be distributed periodically to shareholders according to the fund’s distribution policy.

Because the ETF concentrates its investments within a specific segment of the energy industry, it may experience greater volatility than broadly diversified equity funds, particularly during periods of significant fluctuations in energy commodity prices.

History and evolution of the ETF

The iShares U.S. Oil & Gas Exploration & Production ETF was launched in 2006 with the objective of providing targeted exposure to the U.S. oil and gas exploration and production industry.

Since inception, the fund has tracked major developments within the energy sector, including the rise of shale oil and shale gas production in the United States, shifts in global energy markets, and multiple commodity-price cycles.

In recent years, themes such as energy security, the energy transition, evolving global fuel demand, and geopolitical developments have continued to shape the operating environment of the companies represented in the ETF’s portfolio.

Additional Information

iShares U.S. Oil & Gas Exploration & Production ETF (United States) is an exchange-traded fund (ETF), with assets under management totaling $565.77 million.

Over the past 12 months, iShares U.S. Oil & Gas Exploration & Production ETF recorded a return of 45.93%, with its price trading between $86.38 and $128.99 during the same period.

The ETF is traded under the ticker IEO.