Saudi Arabia ETF Up 5.5% YTD as 4M bpd Rerouted via Red Sea
The iShares MSCI Saudi Arabia ETF holds $716 million in assets and is up 5.5% year to date despite missile and drone attacks on energy infrastructure. Saudi Arabia rerouted 4 million barrels per day via the Red Sea; higher oil prices support the ETF's 42% financials and 15% materials weighting.
1. ETF's Year-to-Date Performance
The iShares MSCI Saudi Arabia ETF manages $716 million and has gained 5.5% so far this year, outperforming many regional counterparts despite escalating regional tensions.
2. Impact of Regional Strikes
Missile and drone strikes on Gulf energy infrastructure and shipping through the Strait of Hormuz have raised geopolitical risk, yet KSA’s share price remains resilient.
3. Oil Export Rerouting
Saudi Arabia has rerouted approximately 4 million barrels per day of crude through the Red Sea, maintaining a significant portion of its usual 6–7 million bpd exports despite Strait of Hormuz disruptions.
4. Diversified Sector Composition
Energy accounts for just 13% of the ETF, with financials at 42% and materials at 15%, sectors that benefit indirectly from oil revenue through banking services and industrial activity.