5 Best ETFs to Diversify Your Portfolio and Avoid Risks

1. VanEck Oil Services ETF (NYSE:OIH)

VanEck Oil Services ETF (NYSE:OIH) aims to replicate the price and yield performance of the MVIS US Listed Oil Services 25 Index, which tracks the overall performance of American companies specializing in the upstream oil sector. As of September 22, the ETF has $2.1 billion in total net assets and a net expense ratio of 0.35%. VanEck Oil Services ETF (NYSE:OIH) has registered YTD gains of 13.24% as of September 22. It is one of the best ETFs to diversify a portfolio and avoid risks, as crude oil will climb yet again in the winter. 

Schlumberger Limited (NYSE:SLB) is the largest holding of VanEck Oil Services ETF (NYSE:OIH), representing 20.02% of the total net assets. Schlumberger Limited (NYSE:SLB) is a Texas-based company providing technology for the energy industry worldwide. In late July, Benchmark analyst Douglas Becker upgraded Schlumberger Limited (NYSE:SLB) to Buy from Hold with a $55 price target, supported by a positive inflection point in international spending and activity. The analyst expects the company to reach its 25% EBITDA margin target in Q3 2023, a quarter earlier than initial forecasts. He sees the reward-risk being “skewed nearly 3:1 to the upside”.

According to Insider Monkey’s data, 64 hedge funds were bullish on Schlumberger Limited (NYSE:SLB) at the end of June 2022, up from 58 funds in the last quarter. William B. Gray’s Orbis Investment Management is a prominent stakeholder of the company, with 12.8 million shares worth $457.65 million. 

Here is what ClearBridge Investments specifically said about Schlumberger Limited (NYSE:SLB) in its Q2 2022 letter.

“We further added to our positioning for the accelerating energy transition with the purchase of Schlumberger Limited (NYSE:SLB), a global provider of oilfield services. As a technology leader, Schlumberger should generate strong free cash flow over the next few years as the industry recovers, using its excess cash to gain market share from smaller players and to expand into new areas of growth. Through its scale, presence, partnerships and technology, Schlumberger is targeting expansion into new large addressable markets such as carbon capture, hydrogen, geothermal and lithium extraction.”

You can also take a look at 10 Best Quality Stocks To Buy and 10 Best Consumer Discretionary Stocks To Buy. 

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