Oil Services Industry ETF

AAA

DEFINITION of '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.

INVESTOPEDIA EXPLAINS '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

RELATED TERMS
  1. Integrated Oil & Gas Company

    A business entity that engages in the exploration, production, ...
  2. Oil Field

    A tract of land used for extracting petroleum, or crude oil, ...
  3. Rig Utilization Rate

    A ratio used in the oil services industry that measures the amount ...
  4. Exchange-Traded Fund - ETF

    A security that tracks an index, a commodity or a basket of assets ...
  5. Barrels Per Day - B/D

    A measure of oil output, represented by the number of barrels ...
  6. Factor Investing

    An investment strategy in which securities are chosen based on ...
Related Articles
  1. Spread Out Risk With Sector-Based ETFs ...
    Mutual Funds & ETFs

    Spread Out Risk With Sector-Based ETFs ...

  2. An Introduction To Sector ETFs
    Mutual Funds & ETFs

    An Introduction To Sector ETFs

  3. Understanding Oil Industry Terminology
    Budgeting

    Understanding Oil Industry Terminology

  4. Charts To Watch As Fed Raises Rates
    Chart Advisor

    Charts To Watch As Fed Raises Rates

Hot Definitions
  1. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  2. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  3. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  4. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
  5. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  6. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
Trading Center