The iShares S&P 500 Energy Sector UCITS ETF (IUES) is an Ireland-domiciled equity ETF managed by BlackRock through its iShares platform. IUES represents the fund's USD trading line on the London Stock Exchange.

The fund seeks to track the S&P 500 Capped 35/20 Energy Index, a benchmark comprising energy companies within the S&P 500 universe.

IUES follows a passive investment strategy and uses physical replication. Its portfolio invests directly in equities with the objective of closely tracking the composition and performance of its benchmark.

The S&P 500 Capped 35/20 Energy Index includes S&P 500 companies classified within the energy sector under the Global Industry Classification Standard (GICS). The benchmark therefore provides targeted exposure to large U.S. companies operating across the energy industry.

Composition / Exposure Profile

IUES is concentrated in the U.S. energy sector and provides exposure to different areas of the industry, including:

• Oil and gas exploration and production.

• Refining and fuel marketing.

• Energy transportation and storage.

• Equipment and services for the energy industry.

• Other oil, gas, and fuel-related activities.

Although the portfolio includes companies with different business models, IUES remains concentrated in a single sector. Its performance can therefore be more sensitive to energy-specific factors than ETFs that spread their investments across multiple areas of the economy.

These factors include oil and natural gas prices, global supply and demand, production decisions, operating costs, economic activity, and regulatory and environmental developments.

Structure and Costs

The fund and share class have the U.S. dollar as their base currency. On the London Stock Exchange, the accumulating share class trades in USD under IUES and in GBP under IESU. The trading currency does not change the portfolio's underlying economic exposure or provide currency hedging.

The ETF has a total expense ratio (TER) of 0.15% per year, uses physical replication, and is domiciled in Ireland. It operates as part of iShares V plc under the UCITS framework.

IUES follows an accumulating income policy. Dividends received from portfolio companies are therefore reinvested within the fund rather than periodically distributed to shareholders.

History and Evolution of the ETF

The iShares S&P 500 Energy Sector UCITS ETF USD (Acc) was launched in 2015 to provide targeted exposure to the energy sector represented within the S&P 500.

Since its launch, the fund has maintained a passive strategy linked to the S&P 500 Capped 35/20 Energy Index, tracking large U.S. companies classified within the energy sector.

Throughout its history, IUES's performance has reflected factors including changes in oil and natural gas prices, shifts in global energy supply and demand, economic cycles, and regulatory and structural developments across the energy industry.

Additional Information

iShares S&P 500 Energy Sector UCITS ETF USD Acc (Ireland) is an exchange-traded fund (ETF), with assets under management totaling $1.55 billion.

Over the past 12 months, iShares S&P 500 Energy Sector UCITS ETF USD Acc recorded a return of 45.40%, with its price trading between $8.90 and $13.90 during the same period.

The ETF is traded under the ticker IUES.