IXC VS XOP
4 min read
By Ron Koren, ETF Insider

IXC VS XOP

Exchange-Traded Funds (ETFs) have revolutionized the investment landscape, providing investors with a convenient way to gain exposure to various sectors and industries. In this article, we will conduct a thorough comparison between two prominent ETFs: IXC (iShares Global Energy ETF) and XOP (SPDR S&P Oil & Gas Exploration & Production ETF). We will explore essential aspects such as ETF tickers, full names, issuers, sectors, top holdings, capitalization, strategy, tracking, and exposure.

IXC Vs XOP: Overview

The IXC and XOP ETFs are both centered around the energy sector, but they take distinct approaches. IXC aims to offer global exposure to the entire energy industry, while XOP specifically targets companies engaged in oil and gas exploration and production within the United States. Understanding these differing focuses will provide investors with insights into the specific market segments each ETF covers.

IXC Vs XOP: Sectors and Top Holdings

IXC provides exposure to a diverse range of energy-related industries, including oil, natural gas, and renewable energy. On the other hand, XOP is concentrated on the exploration and production subsector within the oil and gas industry. This translates to IXC holding a mix of companies from various energy segments, while XOP is more narrowly focused on companies directly involved in extracting and producing oil and gas.

IXC  overlap IXC VS XOPIXC overlap IXC VS XOP

IXC Vs XOP: Capitalization and Strategy

The capitalization and strategy of these ETFs differ significantly. IXC has a larger asset under management (AUM), reflecting its global scope and broader exposure to the energy sector. XOP, with its specific focus on U.S. oil and gas exploration and production, carries a different risk profile and potential for returns. Investors should carefully assess their risk tolerance and investment objectives when considering these differences.

IXC Vs XOP: Tracking and Exposure

IXC aims to mirror the performance of the S&P Global 1200 Energy Sector Index, providing exposure to energy companies from around the world. In contrast, XOP seeks to track the performance of the S&P Oil & Gas Exploration & Production Select Industry Index, focusing exclusively on U.S.-based exploration and production companies. Investors seeking broader global energy exposure may find IXC appealing, while those with a more specific interest in U.S. oil and gas may lean towards XOP.

Conclusion

IXC and XOP cater to different investment preferences within the energy sector. IXC offers diversified global energy exposure, allowing investors to capture a broader range of energy-related industries. On the other hand, XOP narrows its focus to U.S. oil and gas exploration and production, providing targeted exposure to this specific market segment. To gain deeper insights into these ETFs, including their holdings, correlations, overlaps, and other valuable insights, investors can turn to ETF Insider—an intuitive app that offers user-friendly access to comprehensive financial instrument information.

Disclaimer: This article is provided for informational purposes only and does not offer investment advisory services.

Sources:
iShares Global Energy ETF (IXC) Fact Sheet. BlackRock. Retrieved [Insert Date], from [Insert Link].
SPDR S&P Oil & Gas Exploration & Production ETF (XOP) Overview. State Street Global Advisors. Retrieved [Insert Date], from [Insert Link].
S&P Global 1200 Energy Sector Index. S&P Dow Jones Indices. Retrieved [Insert Date], from [Insert Link].
S&P Oil & Gas Exploration & Production Select Industry Index. S&P Dow Jones Indices. Retrieved [Insert Date], from [Insert Link].

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FAQ

  • Why is IXC better than XOP?

    IXC may be considered better than XOP for some investors due to its specific focus, offering diversification.

  • Does XOP beat IXC?

    XOP's performance relative to IXC will vary over time, depending on market conditions.

  • Should I invest in IXC or XOP?

    The choice between IXC and XOP should align with your investment goals, risk tolerance, and desired exposure.

  • Are IXC and XOP good investments?

    Both IXC and XOP can be suitable investments depending on individual investment strategies, goals, and risk profiles.

  • What is the correlation between IXC and XOP?

    The correlation between IXC and XOP can vary over time, reflecting differences in performance.