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Bloomberg
With oil hovering just above its lowest level since August 2017, at least one large investor is dumping a BlackRock Inc exchange-traded fund (ETF) tracking the global energy industry.
Two large blocks of the $1.4 billion iShares Global Energy ETF, or IXC, sold. The first was 1.1 million shares worth $34 million at 10:37 am in New York, and
the second trade was just shy of 2 million shares worth $60 million about eight minutes later. The activity pushed IXC’s turnover for the day to $144 million, the most this month and about 10 times the daily average for the past year.
IXC is hardly alone. Investors have yanked more than $1 billion from all US-listed energy ETFs, putting 2018 on track to be the first year of outflows ever for the industry. Energy is the biggest decliner among all groups in the S&P 500 Index this year, plunging almost 20 percent.
The price of oil has tumbled recently amid economic jitters, a sell-off in global equities and surging output in nations outside of Opec. US inventories, for example, have grown, adding to
concerns about a potential glut. West Texas Intermediate crude settled at its lowest price since August 2017.