Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, the iShares Dow Jones U.S. Oil Equipment & Services Index Fund
With that in mind, let's take a closer look at iShares Dow Jones U.S. Oil Equipment and see what CAPS investors are saying about the ETF right now.
iShares Dow Jones U.S. Oil Equipment facts
|Total Assets||$426 million|
|Investment Approach||Seeks results that correspond to the Dow Jones U.S. Select Oil Equipment & Services Index, which includes suppliers of equipment or services to oil fields and offshore platforms, such as drilling, exploration, engineering, logistics, seismic information, and platform construction.|
|1-Year / 3-Year / 5-Year Annual Returns||(5.9%) / 31% / 3.2%|
|Top Holdings with High CAPS Rating (4 or 5 Stars) and Portfolio Weight||
National Oilwell Varco
SPDR S&P Oil & Gas Equipment & Services
Energy Select Sector SPDR
Sources: Morningstar and Motley Fool CAPS.
Having gotten on board a few years ago, melgenraich45 summed up the bull case: "[H]ow can you buck the trend re: oil and gas exploration, and the companies that do the dirty work to find these precious resources? This 'boom' is not even close to over until we get serious about alternatives to oil."
iShares Dow Jones U.S. Oil Equipment & Services, in particular, sports a portfolio whose stocks average long-term earnings growth of 19%. That's higher than that of main rival SPDR S&P Oil & Gas Equipment & Services (17%), as well as broader energy plays like Energy Select Sector SPDR (10%).
CAPS member akok expands on the outperform argument:
Oil services are being lifted primarily on the supply constraints -- new production being brought online are no longer compensating for the declines in oil production from mature fields … Supply constraints will drive higher prices, given that there's little progress in alternative energy sources, especially for transportation. Look for this trend to be mitigated once viable alternatives (such as broad adoption of electric cars) are available.
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