Oilfield services tend to boom when production is expanding. OIH gives you leveraged exposure to drilling and engineering companies riding the oil wave. Momentum investing in energy is risky but can be rewarding. PXI tries to capture trends and ride the wave – perfect if you like technicals over fundamentals.
Bloomberg Brent Crude performance
WTI is a US-based benchmark, while Brent is an international benchmark. Their prices can differ due to supply, demand, and logistical factors. The VanEck Vectors Oil Services ETF focuses entirely on the oil industry of the United States by tracking the MVIS U.S. Listed Oil Services 25 Index. Benzinga compiles a list of oil ETFs on the move every day. Check out oil ETF movers we’re watching so that you can get in on the action at the right time.
Select Sector SPDR Trust – The Energy Select Sector SPDR Fund
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- That makes sense at first glance, given the basic mechanics of how an integrated oil and gas company earns revenue.
- Energy producers who sell those inputs can benefit from higher prices and pricing power, making them a rare winner when everything else is getting squeezed.
These companies make money by best oil etf providing midstream services such as operating pipelines or liquefied natural gas (LNG) export facilities. The MoneyMagpie Site is intended for reference purposes only and use of the Site and/or the Content is entirely at your own risk. You should always carry out your own research and/or take specific professional advice before choosing any financial products or services or undertaking any business or financial venture.
SPDR S&P Oil & Gas Equipment & Services ETF (XES)
This makes the SPDR S&P Oil & Gas Equipment & Services ETF a less risky option when compared to other oil ETFs on the market. The United States Oil Fund is an inexpensive ETF that tracks the price of West Texas Intermediate Light Sweet Crude Oil. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. More concentrated than VDE or XLE, so you get greater exposure to fast-growing U.S. producers – ideal if you’re optimistic about American shale. This ETF gives you that high-risk, high-reward exposure – but with a safety net through diversification. A newsletter built for market enthusiasts by market enthusiasts.
Check Expense Ratios
The international daily demand for crude oil is at an all-time high, and data from Statista suggests the world consumes over 99 million barrels of oil every day. This list is regularly updated to include newly launched funds. Feel free to sort the ETF list by assets under management (AUM), expense ratio, yield, performance, fund flows, and more. Currently, the Oil & Gas ETF list contains 48 funds with a combined AUM of $56.10B and an average 1-year return of -6.40%.
The International Energy Agency (IEA) expects oil demand to continue growing through 2030. Oil companies should be able to increase their production and cash flow to meet demand, giving them the funds to provide value to their shareholders through share repurchases and dividend payments. Investing in oil stocks directly can be like trying to predict the British weather. One minute the sun’s shining (aka prices are booming), the next you’re caught in a downpour of falling profits and political drama.
The top oil ETFs in 2025
Energy producers who sell those inputs can benefit from higher prices and pricing power, making them a rare winner when everything else is getting squeezed. But that’s just one of many ways energy ETFs can fit into your portfolio.
Her dedication to providing valuable content empowers readers to make informed decisions in the dynamic world of finance. Sarah’s expertise extends across various investment vehicles, including stocks, bonds, cryptocurrencies, and real estate. Whether analyzing market movements, evaluating investment opportunities, or demystifying complex financial concepts, Sarah’s writing is characterized by clarity, accuracy, and actionable insights.
Oil & Gas ETFsOil & Gas ETF List
Lower expense ratios mean more of your investment return is retained. Compare expense ratios across different oil ETFs, but also consider the ETF’s tracking performance and trading volume.. Finally, we have leveraged oil ETFs, which track the price of crude oil or a specific oil sector, and has a certain performance multiplier. Add to that the tug-of-war between environmental concerns, climate policy, and old-school fossil fuel demand, and it’s a complex puzzle.
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- Some of the fund’s largest holdings are in the ProPetro Holding Corporation, the Keane Group Inc. and RPC Inc.
- These factors, coupled with evolving energy policies, create a dynamic landscape for oil investments.
- Try our ETF Screener or compare funds side by side with our ETF Comparison tool.
Please note that, whilst we endeavour to provide accurate and useful information, the Content may not be wholly accurate or up-to-date and is subject to change, often at very short notice. Small-caps can shoot up quickly when oil prices are on the rise – but they can also tumble just as fast. This is the granddaddy of oil ETFs – a firm favourite among investors.
The oil ETFs we track are commodities ETFs, meaning they track the price of oil through benchmarks such as the Brent Crude Oil or West Texas Intermediate benchmarks. These categories of ETFs do not hold oil company stocks. Our screen also may include oil ETNs (more on that below). NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor.
With all that excess cash, they’ve ramped up shareholder returns through stock buybacks and, more notably, dividends. Energy giants routinely offer dividend yields that far surpass the broader market, making energy ETFs an appealing option for income-focused investors. Some oil ETFs, like USL, are designed to mitigate contango, making them potentially more suitable for longer-term investing. However, oil prices are inherently volatile, so consider your risk tolerance. Several factors are contributing to the underperformance of natural gas ETFs in 2024.
Investors will want to consider having some exposure to the oil market in their portfolio. Oil ETFs make getting into the sector easy by allowing investors to potentially profit from the sector’s upside by holding either a basket of oil stocks or an ETF focused on crude oil prices. There are several top oil stock ETFs, giving investors many easy ways to add some oil market exposure to their portfolios. The fund uses a market-weight strategy, so assets are highly concentrated at the top. Two of the world’s largest integrated energy companies by market cap comprise more than 40% of the fund’s total holdings. Oil ETFs are baskets of securities that track the price of oil as a commodity, or contain oil stocks.
