Should You Invest in the VanEck Oil Services ETF (OIH)?

If you're interested in broad exposure to the Energy - Equipment and services segment of the equity market, look no further than the VanEck Oil Services ETF (OIH), a passively managed exchange traded fund launched on 12/20/2011.Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Equipment and services is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 6, placing it in top 38%.Index DetailsThe fund is sponsored by Van Eck. It has amassed assets over $1.51 billion, making it one of the larger ETFs attempting to match the performance of the Energy - Equipment and services segment of the equity market. OIH seeks to match the performance of the MVIS U.S. Listed Oil Services 25 Index before fees and expenses.The MVIS U.S. Listed Oil Services 25 Index tracks the overall performance of U.S.-listed companies involved in oil services to the upstream oil sector, which include oil equipment, oil services, or oil drilling.CostsExpense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining the same.Annual operating expenses for this ETF are 0.35%, making it one of the least expensive products in the space.It has a 12-month trailing dividend yield of 1.92%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Energy sector--about 94.90% of the portfolio.Looking at individual holdings, Schlumberger Nv (SLB) accounts for about 19.49% of total assets, followed by Baker Hughes Co (BKR) and Halliburton Co (HAL).The top 10 holdings account for about 71.43% of total assets under management.Performance and RiskYear-to-date, the VanEck Oil Services ETF has added roughly 4.49% so far, and it's up approximately 0.33% over the last 12 months (as of 02/11/2025). OIH has traded between $260.96 and $349.35 in this past 52-week period.The ETF has a beta of 1.73 and standard deviation of 35.89% for the trailing three-year period, making it a high risk choice in the space. With about 27 holdings, it has more concentrated exposure than peers.AlternativesVanEck Oil Services ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, OIH is a good option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.IShares U.S. Oil Equipment & Services ETF (IEZ) tracks Dow Jones U.S. Select Oil Equipment & Services Index and the SPDR S&P Oil & Gas Equipment & Services ETF (XES) tracks S&P Oil & Gas Equipment & Services Select Industry Index. IShares U.S. Oil Equipment & Services ETF has $167.20 million in assets, SPDR S&P Oil & Gas Equipment & Services ETF has $225.22 million. IEZ has an expense ratio of 0.40% and XES charges 0.35%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report VanEck Oil Services ETF (OIH): ETF Research Reports Schlumberger Limited (SLB): Free Stock Analysis Report Halliburton Company (HAL): Free Stock Analysis Report Baker Hughes Company (BKR): Free Stock Analysis Report iShares U.S. Oil Equipment & Services ETF (IEZ): ETF Research Reports SPDR S&P Oil & Gas Equipment & Services ETF (XES): ETF Research ReportsTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks