Investing in oil ETFs can be a complex endeavor. For most investors, even large traders, taking delivery of oil and storing it is simply impractical or impossible to do. Thus, oil ETFs have become a popular instrument with which to access the oil market. In today's market, investors can find ETFs that track the daily price of oil and that aim to mitigate the effects of contango and backwardation, as well as ETFs exposed to companies in the oil sector.
This channel is designed to help you understand oil ETFs, how they are built, how they behave, their objectives, their risks and their rewards.
With 22 ETFs traded in the U.S. markets, Oil ETFs gather total assets under management of $2.93B. The average expense ratio is 0.70%. Oil ETFs can be found in the following asset classes:
The largest Oil ETF is the SPDR S&P Oil & Gas Exploration & Production ETF XOP with $1.23B in assets. In the last trailing year, the best performing Oil ETF was the DRIP at 421.98%. The most-recent ETF launched in the Oil space was the Credit Suisse X-Links Crude Oil Shares Covered Call ETN USOI in 04/25/17.