Investing Port

This ETF offers exposure to the exploration and production sub-sector of the U.S. industry, a corner of the market that may be appealing for investors bullish on the outlook of the energy sector. Given the targeted focus of IEO, this ETF is likely inappropriate for those constructing a long-term portfolio, but it can be very useful for more active traders seeking to establish a tilt towards domestic energy companies. Like many energy ETFs IEO faces some concentration issues, as a handful of stocks account for a significant chunk of this portfolio. XOP stands out as a more balanced option that delivers generally similar exposure, spreading assets more equally among component companies.