IGE: A Legacy Natural Resources ETF That Lags Its Peers
iShares North American Natural Resources ETF offers a concentrated, oil-and-gas-heavy portfolio with strong value characteristics and a supportive macro backdrop. Despite recent outperformance versus the S&P 500, IGE consistently lags peer ETFs in both long-term and recent risk-adjusted returns. IGE's exclusion of chemicals and steel, high industry concentration, and significant issuer risk limit its appeal compared to more diversified competitors.
IGE: Natural Resource ETF Benefits From Supply Imbalances But Has Underperformed Historically
IGE aims to provide economic exposure to U.S. and Canadian natural resource firms and has performed well recently, mainly due to the Strait of Hormuz crisis. Since its inception in 2001, its total return of 533% failed to outperform either the S&P 500 (869%) or Russell 2000 (741%). The fund is dominated by exposure to oil and gas firms and associated sub-sectors, with minimal exposure to other natural resources.
