Looking for broad exposure to the Energy - Equipment and services segment of the equity market? You should consider the VanEck Oil Services ETF (OIH), a passively managed exchange traded fund launched on December 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 Details
The fund is sponsored by Van Eck. It has amassed assets over $2.05 billion, making it one of the largest 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.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 1.12%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector -- about 95.4% of the portfolio.
Looking at individual holdings, Schlumberger Nv (SLB) accounts for about 19.37% of total assets, followed by Baker Hughes Co (BKR) and Technipfmc Plc (FTI).The top 10 holdings account for about 69.26% of total assets under management.
Performance and Risk
The ETF has gained about 53.31% so far this year and is up roughly 73.3% in the last one year (as of 09/03/2026). In that past 52-week period, it has traded between $242.45 and $453.92.
The ETF has a beta of 0.90 and standard deviation of 30.61% for the trailing three-year period, making it a high risk choice in the space. With about 26 holdings, it has more concentrated exposure than peers.
Alternatives
VanEck Oil Services ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, OIH is a great option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
iShares U.S. Oil Equipment & Services ETF (IEZ) tracks Dow Jones U.S. Select Oil Equipment & Services Index and the State Street 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 $400.47 million in assets, State Street SPDR S&P Oil & Gas Equipment & Services ETF has $409.53 million. IEZ has an expense ratio of 0.37%, and XES charges 0.35%.
Bottom Line
To 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.
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VanEck Oil Services ETF (OIH): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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