The iShares U.S. Oil Equipment & Services ETF (IEZ) was launched on May 1, 2006, and is a passively managed exchange traded fund designed to offer broad exposure to the Energy - Equipment and services segment of the equity market.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options 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 1, placing it in top 6%.
Index Details
The fund is sponsored by Blackrock. It has amassed assets over $423.41 million, making it one of the average sized 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.
Costs
When 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 1.25%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that 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, Baker Hughes Class A (BKR) accounts for about 22.64% of total assets, followed by Slb Nv (SLB) and Technipfmc Plc (FTI).The top 10 holdings account for about 74.56% of total assets under management.
Performance and Risk
The ETF return is roughly 39.88% and it's up approximately 91.51% so far this year and in the past one year (as of 04/08/2026), respectively. IEZ has traded between $15.28 and $29.81 during this last 52-week period.
The ETF has a beta of 0.87 and standard deviation of 30.3% for the trailing three-year period, making it a high risk choice in the space. With about 34 holdings, it has more concentrated exposure than peers.
Alternatives
iShares U.S. Oil Equipment & Services ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, IEZ is a good option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $472.30 million in assets, VanEck Oil Services ETF has $2.34 billion. XES has an expense ratio of 0.35%, and OIH charges 0.35%.
Bottom Line
To 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.
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iShares U.S. Oil Equipment & Services ETF (IEZ): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).