Hiroshi Watanabe/DigitalVision via Getty Images Main Thesis & Background The purpose of this article is to evaluate the iShares Global Energy ETF ( IXC ) as an investment option at its current market price. This is a passively managed sector fund with an objective "to track the investment results of an index composed of global equities in the energy sector". I slapped a "buy" rating on IXC back in...
Hiroshi Watanabe/DigitalVision via Getty Images Main Thesis & Background The purpose of this article is to evaluate the iShares Global Energy ETF ( IXC ) as an investment option at its current market price. This is a passively managed sector fund with an objective "to track the investment results of an index composed of global equities in the energy sector". I slapped a "buy" rating on IXC back in mid-2025. Energy more broadly had been struggling, and I saw this ETF as a smart way to capture some "alpha". I liked the global exposure, and I believed the sector was due for a rebound. Looking back on performance, I was definitely correct with this call: Fund Performance (Seeking Alpha) As you can see, IXC has had a remarkable run. With my eyes on the rest of 2026, it could be logical for some to want to take profits here. But I will resist that urge. I continue to view European shares positively and see their inclusion in IXC as a benefit. Further, Energy remains attractively priced compared to the market. Finally, I think the supply glut fears are overblown, and there will be a balance in the market near year-end. I will discuss these reasons in detail here and explain why I continue to believe "buy" is the right call for this fund. Weak Earnings Growth, but P/E Reflects This Those who are fans of "sector investing" (as I am) may wonder why Energy is a good move here. After all, other sectors are growing much faster. In truth, Q4 earnings for the Energy sector, in aggregate, were not that impressive. While by no means the worst of the pack, earnings growth was weak in comparison to other high-flyers like Tech, Industrials, and Communications: Earnings Growth (YOY) (Q4) (By Sector) (FactSet) But there is a silver lining here. The fact is the market is reflecting this backdrop. I say this because while the S&P 500 - while it has strong earnings growth - is priced quite richly with a P/E ratio of nearly 30. By contrast, IXC sits with a P/E under 20. Not exactly "cheap", ...