The Dow Jones U.S. Oil Development and Production Index is an index weighted by market value for companies in the S&P 500 that belong to the oil and gas exploration and production industries. The historical performance of the index is as follows: Figure 1 The historical performan

Dow Jones U.S. Oil Development and Production Index is an index weighted by market value for companies in the S&P 500 that belong to the oil and gas exploration and production industries.

The historical performance of this index is as follows:

Figure 1 The historical performance of the Dow Jones U.S. oil development and production index

Source: S&P Dow Jones official website

The index's annualized return in the past decade is -3.79%, with poor performance.

Figure 2 The annualized income of the Dow Jones U.S. Petroleum Development and Production Index

Source: S&P Dow Jones official website

The index's annual performance fluctuated greatly, with a return of 67.58% in 2021, and recorded negative returns for four consecutive years from 2017 to 2020.

Figure 3 The annual performance of the Dow Jones U.S. Petroleum Development and Production Index

Source: S&P Dow Jones official website

The index's expected price-to-earnings ratio is 6.61 times, and its valuation is relatively reasonable.

Figure 4 The fundamentals of the Dow Jones US Petroleum Development and Production Index

Source: S&P Dow Jones official website

The top ten components of this index are as follows, including ConocoPhillips, Pioneer Natural Resources, Marathon Crude Oil, Daven Energy and other world-renowned companies.

Figure 5 The top ten components of the Dow Jones U.S. oil development and production index

Source: S&P Dow Jones official website

The following will introduce the MSCI U.S. REIT index, a major asset allocation in the world.

(not as investment advice, investment is risky)