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Should You Invest in the VanEck Oil Services ETF (OIH)?
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Designed to provide broad exposure to the Energy - Equipment and services segment of the equity market, the VanEck Oil Services ETF (OIH - Free Report) is a passively managed exchange traded fund launched on 12/20/2011.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Equipment and services is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 16, placing it in bottom 0%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $1.46 billion, making it one of the larger ETFs attempting to match the performance of the Energy - Equipment and services segment of the equity market. OIH seeks to match the performance of the MVIS U.S. Listed Oil Services 25 Index before fees and expenses.
The MVIS U.S. Listed Oil Services 25 Index tracks the overall performance of U.S.-listed companies involved in oil services to the upstream oil sector, which include oil equipment, oil services, or oil drilling.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.40%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 94.60% of the portfolio.
Looking at individual holdings, Schlumberger Nv (SLB - Free Report) accounts for about 20.57% of total assets, followed by Baker Hughes Co (BKR - Free Report) and Halliburton Co (HAL - Free Report) .
The top 10 holdings account for about 73.82% of total assets under management.
Performance and Risk
So far this year, OIH has lost about -2.46%, and is down about -5.16% in the last one year (as of 10/07/2024). During this past 52-week period, the fund has traded between $268.61 and $350.37.
The ETF has a beta of 1.74 and standard deviation of 37.17% for the trailing three-year period, making it a high risk choice in the space. With about 26 holdings, it has more concentrated exposure than peers.
Alternatives
VanEck Oil Services ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, OIH is an outstanding option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Oil Equipment & Services ETF (IEZ - Free Report) tracks Dow Jones U.S. Select Oil Equipment & Services Index and the SPDR S&P Oil & Gas Equipment & Services ETF (XES - Free Report) tracks S&P Oil & Gas Equipment & Services Select Industry Index. IShares U.S. Oil Equipment & Services ETF has $144.05 million in assets, SPDR S&P Oil & Gas Equipment & Services ETF has $211.41 million. IEZ has an expense ratio of 0.40% and XES charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the VanEck Oil Services ETF (OIH)?
Designed to provide broad exposure to the Energy - Equipment and services segment of the equity market, the VanEck Oil Services ETF (OIH - Free Report) is a passively managed exchange traded fund launched on 12/20/2011.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Equipment and services is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 16, placing it in bottom 0%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $1.46 billion, making it one of the larger ETFs attempting to match the performance of the Energy - Equipment and services segment of the equity market. OIH seeks to match the performance of the MVIS U.S. Listed Oil Services 25 Index before fees and expenses.
The MVIS U.S. Listed Oil Services 25 Index tracks the overall performance of U.S.-listed companies involved in oil services to the upstream oil sector, which include oil equipment, oil services, or oil drilling.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.40%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 94.60% of the portfolio.
Looking at individual holdings, Schlumberger Nv (SLB - Free Report) accounts for about 20.57% of total assets, followed by Baker Hughes Co (BKR - Free Report) and Halliburton Co (HAL - Free Report) .
The top 10 holdings account for about 73.82% of total assets under management.
Performance and Risk
So far this year, OIH has lost about -2.46%, and is down about -5.16% in the last one year (as of 10/07/2024). During this past 52-week period, the fund has traded between $268.61 and $350.37.
The ETF has a beta of 1.74 and standard deviation of 37.17% for the trailing three-year period, making it a high risk choice in the space. With about 26 holdings, it has more concentrated exposure than peers.
Alternatives
VanEck Oil Services ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, OIH is an outstanding option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
IShares U.S. Oil Equipment & Services ETF (IEZ - Free Report) tracks Dow Jones U.S. Select Oil Equipment & Services Index and the SPDR S&P Oil & Gas Equipment & Services ETF (XES - Free Report) tracks S&P Oil & Gas Equipment & Services Select Industry Index. IShares U.S. Oil Equipment & Services ETF has $144.05 million in assets, SPDR S&P Oil & Gas Equipment & Services ETF has $211.41 million. IEZ has an expense ratio of 0.40% and XES charges 0.35%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.