Oil ETFs

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by Ticker Table

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Best Oil ETFs

There is such a large variety of ETFs that you can invest in. There’s financial ETFs and Energy ETFs to name just a few, and then there are Oil ETFs. Oil ETFs are the exchange-traded funds that invest in the stocks of oil companies. They are simple and effective avenues to become a part of the oil markets without taking too much risk.

Oil is a highly volatile commodity with big swings both on a short-term and long-term basis. Therefore, it becomes extremely risky to invest directly in oil stocks. Especially for beginners who do not have in-depth knowledge of the oil markets, oil stocks can lead to massive losses.

This is when oil ETFs come to the rescue. They allow investors to buy into the dynamic oil markets, without a lot of risk exposure.

Ticker
Company Name
Last Price
1-Year Return
XOPSPDR S&P Oil & Gas Exploration & Production ETF$129.0659.79%
USOUnited States Oil Fund LP$71.5453.52%
OIHVanEck Vectors Oil Services ETF$225.2023.05%
UCOProShares Ultra Bloomberg Crude Oil$32.9893.43%
DBOInvesco DB Oil Fund$16.5436.36%
IEOiShares U.S. Oil & Gas Exploration & Production ETF$81.0461.18%
GUSHDirexion Daily S&P Oil & Gas Exp. & Prod. Bull 3X Shares$140.52114.24%
XESSPDR S&P Oil & Gas Equipment & Services ETF$59.5317.90%
IEZiShares U.S. Oil Equipment & Services ETF$15.4520.33%
BNOUnited States Brent Oil Fund LP$29.4964.11%
SCOProShares UltraShort Bloomberg Crude Oil$26.36-73.20%
USLUnited States 12 Month Oil Fund LP$35.8948.67%
FILLiShares MSCI Global Energy Producers ETF$21.6236.49%
DRIPDirexion Daily S&P Oil & Gas Exp. & Prod. Bear 3X Shares$19.73-97.94%
PXEInvesco Dynamic Energy Exploration & Production ETF$27.1473.86%
PXJInvesco Dynamic Oil & Gas Services ETF$3.7918.81%
USOICredit Suisse X-Links Crude Oil Shares Covered Call ETN$4.48-10.40%
OILKProShares K-1 Free Crude Oil Strategy ETF$46.62-19.68%
OILiPath Series B S&P GSCI Crude Oil ETN$30.7653.03%

Factors to Consider Before Investing in Oil ETFs

Investors must consider that the oil sector is very volatile, and it is largely affected by economic, political, and government factors. Oil ETFs are also impacted by the demand-supply dynamics, oil prices, and government policies.

Therefore, despite being less risky than investing in oil through futures contracts and oil stocks, oil ETFs have high-risk exposure. Overall, oil ETFs follow a high-risk high-reward profile, with strong potential for long-term gains.

Which Oil ETFs Should I Buy?

Various types of oil ETFs trade on the US stock exchanges. Some invest in futures contracts of oil while others invest in forward and swap contracts. Among the multiple options, we have aggregated a list of the best oil ETFs for investors.

Investors must choose oil ETFs with average yields as both very high and very low yields are not sustainable. Additionally, investors must consider the price, average volume, and assets under management.

The fee charged by the fund or the net expense ratio is also a significant factor in determining which oil ETFs to buy. The choice of oil ETFs will also vary with the risk appetite of investors.