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Should You Invest in the VanEck Oil Services ETF (OIH)?
ZACKSยท 2025-08-20 11:21
Core Insights - The VanEck Oil Services ETF (OIH) provides broad exposure to the Energy - Equipment and services segment, appealing to both retail and institutional investors due to its low costs, transparency, flexibility, and tax efficiency [1][2] Fund Overview - OIH, launched on December 20, 2011, has accumulated over $923.44 million in assets, making it one of the larger ETFs in the Energy - Equipment and services sector [3] - The ETF aims to match the performance of the MVIS U.S. Listed Oil Services 25 Index, which tracks U.S.-listed companies involved in oil services [4] Cost Structure - OIH has an annual operating expense ratio of 0.35%, positioning it as one of the least expensive options in its category, with a 12-month trailing dividend yield of 2.29% [5] Sector Exposure and Holdings - The ETF has a significant allocation in the Energy sector, approximately 94.7% of its portfolio [6] - Schlumberger Nv (SLB) constitutes about 19.22% of total assets, with Baker Hughes Co (BKR) and Halliburton Co (HAL) also among the top holdings; the top 10 holdings represent about 71.95% of total assets [7] Performance Metrics - As of August 20, 2025, OIH has experienced a loss of approximately 12.38% year-to-date and a decline of about 20.06% over the past year, with trading between $196.72 and $307.26 in the last 52 weeks [8] - The ETF has a beta of 1.20 and a standard deviation of 34.12% over the trailing three-year period, indicating a higher risk profile compared to peers [8] Alternatives - OIH holds a Zacks ETF Rank of 3 (Hold), suggesting it is a viable option for investors seeking exposure to the Energy ETFs market; other alternatives include iShares U.S. Oil Equipment & Services ETF (IEZ) and SPDR S&P Oil & Gas Equipment & Services ETF (XES) [9][10]