4 Best Oil ETFs for 2023

The fund seeks to replicate the performance of the entire energy sector of the United States and doesn’t focus solely on oil investments. But the ETF’s largest holdings are in Exxon Mobil, Chevron and the Occidental Petroleum Corporation. They let an investor gain exposure to the oil market and potentially profit from an up cycle. Using an oil ETF helps reduce the risk of having the correct thesis (i.e., that oil demand and prices will rise) but selecting the wrong oil stock investment to back that bet. When trading stocks, the CFDs (contracts for difference) are stored in your account and are more liquid than the underlying asset. However, you should be aware that CFD trading is fast-moving and requires close monitoring.

The fund invests in the stocks of the most liquid oil production and distribution companies and leaders of the industry in to limit the effects of the volatile nature of the oil market. Energy Information Administration, the United States used around 18 million barrels of oil every day in 2020. 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. NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only.

United States 12 Month Oil Fund LP

Indexes are unmanaged and one cannot invest directly in an index. The ITR metric estimates a fund’s alignment with the Paris Agreement temperature goal. However, there is no guarantee that these estimates will be reached. The ITR metric is not a real time estimate and may change over time, therefore it is prone to variance and may not always reflect a current estimate. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional. The fund’s one-year returns are 74.52%, while the median return in the same asset class was 11.70% over the past year, as of Feb. 17, 2022.

When the Fund is non-diversified, it may invest a relatively high percentage of its assets in a limited number of issuers. Business Involvement metrics are designed only to identify companies where MSCI has conducted research and identified as having involvement in the covered activity. As a result, it is possible there is additional involvement in these covered activities where MSCI does not have coverage. This information should not be used to produce comprehensive lists of companies without involvement. Business Involvement metrics are only displayed if at least 1% of the fund’s gross weight includes securities covered by MSCI ESG Research. There is not a universally agreed upon set of inputs for the calculation.

This page contains certain technical information for all Crude Oil ETFs that are listed on U.S. exchanges and tracked by ETF Database. Note that the table below only includes limited technical indicators; click on the “View” link in the far right column for each ETF to see an expanded display of the product’s technicals. This page includes historical dividend information for all Crude Oil ETFs listed on U.S. exchanges that are currently tracked by ETF Database. Note that certain ETPs may not make dividend payments, and as such some of the information below may not be meaningful. The table below includes fund flow data for all U.S. listed Crude Oil ETFs.

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Most screeners will include oil ETFs within the commodities category or asset class and then in the “commodities focused” sub class. Crude Oil and all other commodities are ranked based on their AUM-weighted average dividend yield for all the U.S.-listed ETFs that are classified by ETF Database as being mostly exposed to those respective commodities. Crude Oil and all other commodities are ranked based on their aggregate assets under management (AUM) for all the U.S.-listed ETFs that are classified by ETF Database as being mostly exposed to those respective commodities.

Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, or other events could have a significant impact on the Fund and its investments. ETFs trade like stocks, are subject to investment risk, fluctuate in market value and may trade at prices above or below the ETFs net asset value. Investors who want exposure to this incredibly valuable natural resource may be interested in investing in exchange-traded funds that focus on oil and oil production. We’ve compiled this list, presented in no particular order, of the https://forexbox.info/s for investors. Crude Oil and all other commodities are ranked based on their AUM-weighted average 3-month return for all the U.S.-listed ETFs that are classified by ETF Database as being mostly exposed to those respective commodities. In addition to price performance, the 3-month return assumes the reinvestment of all dividends during the last 3 months.

Crude Oil Commodity Power Rankings

This chart shows how a hypothetical investment of $10,000 in the Fund at its inception would have performed versus an investment in the Fund’s benchmark futures contract(s). The values indicate what $10,000 would have grown to over the time period indicated. The hypothetical example does not represent the returns of any particular investment. The parameters for USO’s investment discretion are set forth and discussed in detail in USO’s prospectus. USO can change such parameters if regulatory requirements, market conditions, liquidity requirements or other factors make it necessary for USO to do so.

For example, you may buy an energy ETF to help offset the effect of rising oil prices on your other investments. Or do you expect the investment in an energy ETF to always make a return on your investment? The investment information provided in this table is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. Investing involves risk including the potential loss of principal.

Listing Information

The S&P Select Industry Index series is designed to measure the performance of narrow GICS (Global Industry Classification Standard) sub-industries. The S&P Oil & Gas Exploration & Production Select Industry Index is an equal-weighted index that draws constituents from the oil and gas exploration and production segment of the S&P TMI. Liquidity and market capitalization screens are applied to the index to ensure investability. Certain sectors and markets perform exceptionally well based on current market conditions and iShares and BlackRock Funds can benefit from that performance.

• For this reason, a demo account with us is a great tool for investors who are looking to make a transition to leveraged trading.
• None of these companies make any representation regarding the advisability of investing in the Funds.
• Holdings and sectors shown are as of the date indicated and are subject to change.
• SOLR, which is actively managed and fully transparent, is an equally weighted fund with 30 positions.
• Past performance is not a reliable indicator of future performance.

Sign up for our daily newsletter for the latest financial news and trending topics. Get advice on achieving your financial goals and stay up to date on the day’s top financial stories. Here’s a quick snapshot of how this oil ETF is doing across a few dimensions. Kyle Woodley is the Editor-in-Chief of Young and The Invested, a https://forexhistory.info/ site dedicated to improving the personal finances and financial literacy of parents and children. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more. Exxon and Chevron still lead the way here, at 17% and 11% weights, respectively.

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The following table includes ESG Scores and other descriptive information for all Crude Oil ETFs listed on U.S. exchanges that are currently tracked by ETF Database. Easily browse and evaluate ETFs by visiting our ESG Investing themes section and find ETFs that map to various environmental, social, governance and morality themes. The United States Brent Oil Fund LP is considered a good alternative to the S&P GSCI Crude Oil benchmark, outperforming it over one, three and five years.

The weighted harmonic average of closing market price divided by the most recent reported book value for each security in the fund’s portfolio as calculated for the last twelve months. This forward-looking metric is calculated based on a model, which is dependent upon multiple assumptions. Importantly, an ITR metric may vary meaningfully across data providers for a variety of reasons due to methodological choices (e.g., differences in time horizons, the scope(s) of emissions included and portfolio aggregation calculations). An ETF can make it easier to invest in the oil sector, but because of the volatile nature of oil prices and the industry dynamics, you’ll still need to know what you want to invest in. Some sectors may perform well while others do poorly, and others may be somewhat resistant to volatility because of the steadier nature of their businesses.

ETF issuers are ranked based on their AUM-weighted average 3-month return of their ETFs with exposure to Crude Oil. Crude Oil and all other commodities are ranked based on their aggregate 3-month fund flows for all U.S.-listed ETFs that are classified by ETF Database as being mostly exposed to those respective commodities. 3-month fund flows is a metric that can be used to gauge the perceived popularity amongst investors of Crude Oil relative to other commodities. This page provides links to various analysis for all Crude Oil ETFs that are listed on U.S. exchanges and tracked by ETF Database.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license https://trading-market.org/ agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management.

“Global” is the keyword here – it means the fund includes both domestic and international stocks. The official breakdown is U.S. 60%/rest of world 40%, with the U.K. (12%), Canada (11%) and France (5%) representing the top non-American country weights. Past that, though, you’re getting a similar flavor of exposure to XLE. This is a predominantly large-cap index mixed with mid-teens exposure to mid-cap stocks.