The energy sector has been one of the worst-performing groups dating back to 2014 and with that laggard status has come plenty of controversy. But give exchange traded funds such as the iShares U.S. Energy ETF (NYSE: IYE) some credit because they are less bad than the S&P 500 to this point in 2016.
Year-to-date, IYE has outpaced the benchmark U.S. equity index by 70 basis points after plunging 22.2 percent last year. Part of the controversy surrounding IYE and rival energy stems from declining multiples and whether those lower valuations imply compelling deals or are merely the result of contracting earnings.
Some market participants see the energy sector as finally offering compelling value.
<>/www.benzinga.com/trading-ideas/long-ideas/16/02/6403572/this-sector-etf-is-a-value-proposition alt=This Sector ETF Is A Value Proposition>Full story available on Benzinga.com
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