Oil Services Industry ETF

What is ‘Oil Services Industry ETF’

A sector exchange-traded fund (ETF) that invests in companies engaged in providing services such as drilling and seismic testing to the oil exploration & production (E&P) industry. Oil service companies generally do not produce oil and gas themselves, since their core competency lies in supplying services and associated products to energy producers.

Explaining ‘Oil Services Industry ETF’

The fortunes of an oil services ETF are closely tied to those of the overall energy industry, whose outlook in turn depends on prices of oil and natural gas. The performance of the oil services sector and related ETFs depends on the current stage of the economic cycle.

By owning an ETF, you get the diversification of an index fund as well as the ability to sell short, buy on margin and purchase as little as one share. Another advantage is that the expense ratios for most ETFs are lower than those of the average mutual fund. When buying and selling ETFs, you have to pay the same commission to your broker that you’d pay on any regular order

Further Reading

  • An econometric analysis of ETF and ETF futures in financial and energy markets using generated regressors – www.mdpi.com [PDF]
  • Volatility and return spillovers in Canadian and US industry ETFs – www.sciencedirect.com [PDF]
  • Oil prices, SUVs, and Iraq: An investigation of automobile manufacturer oil price sensitivity – www.sciencedirect.com [PDF]
  • From performativity to political economy: index investing, ETFs and asset manager capitalism – www.tandfonline.com [PDF]
  • Commodity financialization and sector ETFs: Evidence from crude oil futures – www.sciencedirect.com [PDF]
  • Minimum-Variance Hedging Oil Price Risk for US Energy ETF Investors: Out-of-Sample Investigation – papers.ssrn.com [PDF]
  • Exchange-traded funds 101 for economists – www.aeaweb.org [PDF]
  • Trading your neighbor's ETFs: Competition or fragmentation? – www.sciencedirect.com [PDF]
  • An econometric analysis of ETF and ETF futures in financial and energy markets using generated regressors – www.econstor.eu [PDF]
  • To trust or not to trust? A comparative study of conventional and clean energy exchange-traded funds – www.sciencedirect.com [PDF]