In this piece, we will take a look at five best oil and gas ETFs. If you want to learn about the latest trends in the oil industry, then check out 11 Best Oil and Gas ETFs.
5. First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN)
5 Year Share Price Gains: 26.46%
First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN) tracks the performance of the NASDAQ U.S. Smart Oil and Gas Index. This is an index of U.S. oil companies, and the ETF has net assets of $255 million and a net asset value of $30.4, which is in line with its market share price. Like other U.S. oil and gas ETFs, the top three holdings of the fund are Conoco, Chevron, and Exxon. More than half of the positions are in oil producers, with refining and marketing companies being the second biggest sector.
4. Vanguard Energy Index Fund (NYSE:VDE)
5 Year Share Price Gains: 27.19%
Vanguard Energy Index Fund (NYSE:VDE) is one of the biggest energy ETF, with more than $10 billion in net assets. It was set up in 2004 and has a net asset value of $127.76, which is just a couple of cents higher than the market share price. It is a passively managed fund that seeks to fully replicate an underlying index if regulatory constraints allow. The minimum investment criterion is just $1 and the fund has an expense ratio of 0.1%, which is lower than peer funds. The top three holdings are the usual list of suspects in the U.S. oil industry, with integrated oil firms being the largest constituents.
3. Invesco Energy Exploration & Production ETF (NYSE:PXE)
5 Year Share Price Gains: 29.75%
Invesco Energy Exploration & Production ETF (NYSE:PXE) tracks an index of 30 U.S. companies engaged in oil and gas exploration and production. When compared to some of the giants that we’ve discussed earlier, it is a relatively small fund with $159 million in net assets and a net asset value that tracks its share price. However, in a change, the top three holdings of the Invesco Energy Exploration & Production ETF (NYSE:PXE) are Ovintiv Inc. (NYSE:OVV), Marathon Petroleum Corporation (NYSE:MPC), and HF Sinclair Corporation (NYSE:DINO). Hedge fund investors in the three companies sit at 24, 42, and 22 respectively as of this year’s June quarter.
2. ProShares UltraShort Oil & Gas (NYSE:DUG)
5 Year Share Price Gains: 30.68%
ProShares UltraShort Oil & Gas (NYSE:DUG) is an ETF for you if you want to profit from oil companies’ losses. It is an inverse tracker of the S&P Energy Select Sector index, and 90% of its holdings are in oil and gas companies. It is also a rather technical fund, which seeks twice the negative returns of the underlying index on a daily basis, requiring careful monitoring of the index since returns can significantly change in just a week.
1. iShares U.S. Oil & Gas Exploration & Production ETF (BATS:IEO)
5 Year Share Price Gains: 39.84%
iShares U.S. Oil & Gas Exploration & Production ETF (BATS:IEO) is a sector specific ETF that tracks companies in the U.S. oil and gas production sector – excluding midstream and other companies. It has $768 million in net assets and investments in 48 companies The top three holdings are Marathon Petroleum Corporation (NYSE:MPC), ConocoPhillips (NYSE:COP), and EOG Resources, Inc. (NYSE:EOG).
Disclosure: None. You can also take a look at 12 Best NASDAQ ETFs and Goldman Sachs Dividend Stocks: Top 12 Stock Picks.
