IGE: A Legacy Natural Resources ETF That Lags Its Peers

Fred Piard Investing Group Leader Follow Summary iShares North American Natural Resources ETF offers a concentrated, oil-and-gas-heavy portfolio with strong value characteristics and a supportive macro backdrop. Despite recent outperformance versus the S&P 500, IGE consistently lags peer ETFs in both long-term and recent risk-adjusted returns. IGE's exclusion of chemicals and steel, high industry concentration, and significant issuer risk limit its appeal compared to more diversified competitors. A tactical allocation to natural resources is timely, but MGNR, NANR, and HAP provide superior historical returns and risk-adjusted performance. Quantitative Risk & Value members get exclusive access to our real-world portfolio. See all our investments here » dongfang zhao/iStock via Getty Images iShares North American Natural Resources ETF ( IGE ) is one of the oldest and most narrowly defined ETFs in the natural resources category, with an exclusion of chemicals and steel that sets it apart from This article was written by Fred Piard 16.47K Followers Follow Fred Piard, PhD. is a quantitative analyst and IT professional with over 30 years of experience working in technology. He is the author of three books and has been investing in data-driven systematic strategies since 2010. Fred runs the investing group Quantitative Risk & Value where he shares a portfolio invested in quality dividend stocks, and companies at the forefront of tech innovation. Fred also supplies market risk indicators, a real estate strategy, a bond strategy, and an income strategy in closed-end funds. Learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of MGNR either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.