This is one of the largest oil ETFs available. It uses near-month futures, and it is not at risk for closure. Derivative returns can fluctuate. Also, USO maintains front-month futures contracts on WTI. It rolls into the next contract each month. This can lead to heavy roll costs. Short-term moves in crude prices make USO a great investment.
USO is designed as a commodities pool. If you invest long-term, you will be taxed on any gains, even if they didn’t sell shares. USO does an outstanding job of seizing the performance of the near-term oil futures market at a low all in cost. It is one of the best oil ETFs.
2. iShares U.S. Oil & Gas Exploration and Production ETF
This is one of the most productive oil ETFs. It gives you the opportunity to invest in the oil and gas exploration and production sector. The investment allocates its portfolio in component companies included in its benchmark index. Small, medium, or large-cap companies may be included. The companies included engage in exploring, drilling, refining, producing, and merchandising certain types of oil and gas. Because the oil and gas sector is booming, you will have the opportunity for high returns with this oil ETF.
This oil ETF consists of 72 holdings and a turnover ratio of about 7%. This is a high risk but high reward investment. People who are in it for the long-term are more suited for this best oil ETF.
3. SPDR S & P Oil & Gas Exploration and Production ETF
This crude oil ETF started in 2006 and tracks and tries to match the performance of S&P’s Select Oil and Gas Exploration & Production Industry Index. This fund takes advantage of passive strategies for management with a focus on long-term returns. The managers of this oil ETF attempt to keep the turnover ratio for the fund’s holding as low as they can.
The expenses with the fund are kept lower than many other ETFs. The expense ratio is .35%. The yearly total return is 1.69%. The fund favors mid and small capitalization companies. The fund offers an excellent liquidity and is an intriguing investment choice for potential investors searching for exposure to the oil and gas exploration and manufacture in the country. Before making any final decisions, make sure you understand the risk involved.
4. VanEck Vectors Oil Services ETF
This crude oil ETF is meant to track the Market Vectors U.S Listed Oil Services 25 Index. This totals the performance of 25 big publicly traded oil services companies. This company counts on companies that offer drilling operations, seismic testing, and other missions suited to help oil or shale exploration and production. These companies are connected most closely to the performance and demands of the energy production industry. They do not directly manufacture oil and gas.
The fund’s hidden index consists of mainly common stocks of American oil and gas service companies. The fund is 95% turned toward the energy sector. It favors cyclical and sector-based fluctuations. The investment is very productive and provides good tracking management. This Is a high-risk, high-reward fund. It is one of the most popular oil ETFs in 2017.
5. SPDR S & P Oil & Gas Equipment & Services ETF
This fund had given a yearly return of 4.4% to investors since it began. New reservoirs are found by using exploratory wells. Demand for oil and gas continues to be high because people all over the globe consistency depend on energy commodities. This can result in huge returns long-term.
This fund includes a passive management investment approach. It is a long-term investment. The people in charge try to keep the funds turnover ratio low. This results in lower costs for investors. The expense ratios vary from 0.45 up to 1.1%. This fund is traded on the secondary market.
This fund carries high-risk. However, the managers of the fund attempt to minimize the total risk. The Sharpe ratio for a 3-year time frame is 0.06%, an alpha of -19.85, and a beta of 1.68 against the standard index.
6. Vanguard S & P 500 ETF
This fund is considered safer than some other ETFs. It consists of large-cap stocks. These are harder to turn if the market declines. The fund provides 1.78% annual dividend yield and carries and expense ratio of only 0.05%.
The fund began in 2010, and since has appreciated 187.25%, and it is currently up. If you lean toward the conservative side, then you might consider moving most of your capital to cash. If prices decline because of deflation, you will have cash.
7. Global X Robotics & Artificial Intelligence Thematic ETF
Robot stocks are on the rise. This fund deals with the design, operation, and use of robots. With the world of technology, more jobs are resorting to robots. Therefore, investing in robots makes sense. This fund attempts to invest in companies that might benefit from increased adoption and utilization of robotics and artificial intelligence.
8. SPDR Barclays High Yield Bond ETF
This is one of the largest high-yield ETF. The fund had a 4.4 duration and a 6.3 weighted average maturity. It maintained an average volume of almost $500 million. It has a lower than average expense ratio, so it was simple to hold and easy to trade productively. The yearly return over the last 5 years was -0.06. The one month return was 5.61%.
9. PowerShares Senior Loan ETF
This fund focuses on senior floating rate debt devices provided by banks to mainly non-investment grade corporations. The fund consists of the adjustable interest feature on its debt. This fund holds some safety from rising rates. If rates rise quickly, the fund could pose a problem. It began in 2011 and provides a high-yield investment. It is an ETF to consider in 2017.
Oil is a booming business in the world today, and 2017 looks to be an exciting year. Oil EFTs have become popular, so you have so many choices. These ETFs will allow investors to predict the future of the industry. Research your options to see which fund is right for you.