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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.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options 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 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $2.80 billion, making it one of the largest 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 0.91%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Schlumberger Nv (SLB - Free Report) accounts for about 19.31% of total assets, followed by Halliburton Co (HAL - Free Report) and Baker Hughes Co (BKR - Free Report) .
The top 10 holdings account for about 72.58% of total assets under management.
Performance and Risk
Year-to-date, the VanEck Oil Services ETF has gained about 3.90% so far, and is up about 43.96% over the last 12 months (as of 01/20/2023). OIH has traded between $198.76 and $330.09 in this past 52-week period.
The ETF has a beta of 2.01 and standard deviation of 60.59% 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.
SPDR S&P Oil & Gas Equipment & Services ETF (XES - Free Report) tracks S&P Oil & Gas Equipment & Services Select Industry Index and the iShares U.S. Oil Equipment & Services ETF (IEZ - Free Report) tracks Dow Jones U.S. Select Oil Equipment & Services Index. SPDR S&P Oil & Gas Equipment & Services ETF has $333.22 million in assets, iShares U.S. Oil Equipment & Services ETF has $391.17 million. XES has an expense ratio of 0.35% and IEZ charges 0.39%.
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.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Investor-friendly, sector ETFs provide many options 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 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Van Eck. It has amassed assets over $2.80 billion, making it one of the largest 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
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 0.91%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Schlumberger Nv (SLB - Free Report) accounts for about 19.31% of total assets, followed by Halliburton Co (HAL - Free Report) and Baker Hughes Co (BKR - Free Report) .
The top 10 holdings account for about 72.58% of total assets under management.
Performance and Risk
Year-to-date, the VanEck Oil Services ETF has gained about 3.90% so far, and is up about 43.96% over the last 12 months (as of 01/20/2023). OIH has traded between $198.76 and $330.09 in this past 52-week period.
The ETF has a beta of 2.01 and standard deviation of 60.59% 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.
SPDR S&P Oil & Gas Equipment & Services ETF (XES - Free Report) tracks S&P Oil & Gas Equipment & Services Select Industry Index and the iShares U.S. Oil Equipment & Services ETF (IEZ - Free Report) tracks Dow Jones U.S. Select Oil Equipment & Services Index. SPDR S&P Oil & Gas Equipment & Services ETF has $333.22 million in assets, iShares U.S. Oil Equipment & Services ETF has $391.17 million. XES has an expense ratio of 0.35% and IEZ charges 0.39%.
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.