Should You Invest in the iShares U.S. Oil Equipment & Services ETF (IEZ)?

Launched on May 1, 2006, the iShares U.S. Oil Equipment & Services ETF (IEZ) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Equipment and services segment of the equity market.While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Equipment and services is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 5, placing it in top 31%.Index DetailsThe fund is sponsored by Blackrock. It has amassed assets over $671.21 million, making it one of the larger ETFs attempting to match the performance of the Energy - Equipment and services segment of the equity market. IEZ seeks to match the performance of the Dow Jones U.S. Select Oil Equipment & Services Index before fees and expenses.The Dow Jones U.S. Select Oil Equipment & Services Index comprises of U.S. equities in the oil equipment and services sector.CostsWhen considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.Annual operating expenses for this ETF are 0.38%, making it one of the cheaper products in the space.It has a 12-month trailing dividend yield of 1.18%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.This ETF has heaviest allocation in the Energy sector -- about 100% of the portfolio.Looking at individual holdings, Slb Nv (SLB) accounts for about 22.36% of total assets, followed by Baker Hughes Class A (BKR) and Technipfmc Plc (FTI).Performance and RiskSo far this year, IEZ has added about 47.89%, and is up roughly 82.24% in the last one year (as of 06/09/2026). During this past 52-week period, the fund has traded between $16.78 and $32.54.The ETF has a beta of 0.88 and standard deviation of 29.87% for the trailing three-year period, making it a high risk choice in the space. With about 35 holdings, it has more concentrated exposure than peers.AlternativesiShares U.S. Oil Equipment & Services ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, IEZ is an outstanding option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.State Street SPDR S&P Oil & Gas Equipment & Services ETF (XES) tracks S&P Oil & Gas Equipment & Services Select Industry Index and the VanEck Oil Services ETF (OIH) tracks MVIS U.S. Listed Oil Services 25 Index. State Street SPDR S&P Oil & Gas Equipment & Services ETF has $588.36 million in assets, VanEck Oil Services ETF has $2.43 billion. XES has an expense ratio of 0.35%, and OIH charges 0.35%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks