ETF Research Center

The iShares U.S. Oil & Gas Exploration & Production ETF seeks to track the investment results of an index composed of U.S. equities in the oil and gas exploration and production sector.

FUND BASICS
Category	US Equities
Fund Sponsor	Barclays Global Investors
Website	www.ishares.com
Inception date	May 05, 2006
Assets (mns)	$230
Currency	USD
Expense ratio	42 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	State Street Bank & Trust
Weighting	Market Cap
Index replication	Optimized
Uses derivatives	No
Options available	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	53
Wgt avg mkt cap (mns)	$33,342
Large cap (>$10bn)	73.4%
Mid cap ($2-10bn)	20.1%
Small cap (<$2bn)	6.5%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	68.8 %
CONOCOPHILLIPS	15.5 %
EOG RESOURCES INC	10.8 %
PHILLIPS 66	10.0 %
VALERO ENERGY CORP	7.2 %
PIONEER NATURAL RESOURCES CO	4.6 %
CONCHO RESOURCES INC	4.5 %
HESS CORP	4.5 %
MARATHON PETROLEUM	4.2 %
CHENIERE ENERGY INC	3.8 %
DIAMONDBACK ENERGY INC	3.6 %

TOP COUNTRY EXPOSURE
	UNITED STATES	99.9 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
9.6%	9.6%	-3.6%	1.4%	2.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.42	47%
MSCI EAFE	1.61	50%
MSCI Emg. Mkts.	0.96	30%

Technical Indicators
Recent close	$54.67
30d moving avg.	$54.30
Annualized volatility	25.1%
Short interest (ETF)	0.0%
Short interest (Underlying)	5.1%
Relative strength (RSI)	68

Liquidity measures
Avg. volume (thou.)	121
Turnover	2.9%
Bid/Ask (% of price)	0.03%
ADV underlying (mns)	$4,497

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 19 potential alternatives to the iShares U.S. Oil & Gas Exploration & Production ETF based on the alternatives' overlap in portfolio holdings with IEO. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

IEO

Expense:

42 bp

ALTAR Score™:

2.8%

ALTERNATIVE ETFs BASED ON OVERLAP WITH IEO
Ticker	Fund Name	Overlap¹ vs IEO (%)	Expense ratio (bp)	Savings vs IEO (bp)	ALTAR Score™ (%)	ALTAR vs IEO (%)
JHME	John Hancock Multifactor Energy	57.4	40	2	3.1	+0.3
FRAK	VanEck Vectors Unconventional Oil & Gas	54.6	54	-12	1.8	-1.0
XOP	SPDR S&P Oil & Gas Exploration & Production	50.9	35	7	2.9	+0.1
FXN	First Trust Energy Alphadex	48.2	63	-21	3.9	+1.1
RYE	Invesco S&P Equal Weight Energy ETF	47.5	40	2	3.2	+0.4
FTXN	First Trust Nasdaq Oil & Gas	42.0	60	-18	4.0	+1.2
PXI	Invesco Dynamic Energy Sector	38.0	60	-18	0.4	-2.4
VDE	Vanguard Energy	36.6	10	32	3.8	+1.0
FENY	Fidelity MSCI Energy	35.9	8	34	3.8	+1.0
IYE	iShares DJ US Energy Sector	35.5	42	0	3.8	+1.0
XLE	Energy Select Sector SPDR	33.9	13	29	4.2	+1.4
PXE	Invesco Dynamic Energy Exploration & Production	32.1	63	-21	2.8	+0.1
IGE	iShares North American Natural Resources	26.6	46	-4	3.8	+1.0
FCG	First Trust ISE-Revere Natural Gas	25.3	60	-18	6.4	+3.6
CRAK	VanEck Vectors Oil Refiners	21.1	60	-18	13.5	+10.7
EQRR	ProShares Equities for Rising Rates	19.8	35	7	7.5	+4.7
FILL	iShares MSCI Global Energy Producers	17.9	39	3	5.5	+2.7
IXC	iShares Global Energy	17.0	46	-4	4.9	+2.2
NANR	SPDR S&P N. American Nat. Resources	16.1	35	7	3.8	+1.1

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

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RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

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VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	iShares U.S. Oil & Gas Exploration & Production
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

AVOID

Not worthwhile for most investors. A rating of AVOID is assigned to ETFs with ALTAR Scores in the lowest quintile (the bottom 20%) of their category. Often, funds in this category consist of stocks with little if any history or expectation of profitability, and as a result our fundamentally-driven analysis may not be relevant.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	3.9	%
Divided by: Fwd. P/BV	1.2	x
Less: Expense ratio	42	bp
Equals: ALTAR Score	2.8	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.34	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.