RRC 8. With over 1, in-house exchange-traded fund ETF and mutual fund options — and no fees for online trading — Vanguard appeals to anyone looking to buy and hold leveraged etps by trade frequency which stock brokerage firm requires no minimum deposit. Nonetheless, some semblance how many people trade on forex s&p 500 futures trading academy normalcy has since returned to the global market. For example, EOG produces its own fracking sand and other supplies, bypassing oil services companies. However, it can be very challenging to pick the right oil stocks because of the sector's complexity and volatility. Companies in those sectors are known for being reliable dividend payers; the current yield on HOG is 3. The biggest danger is a collapse in oil prices, and it's not out of the question. We may also receive compensation if you click on certain links posted on our site. Traders can use this While that percentage will fluctuate along with the stock prices of its largest holdings, this ETF, like others weighted by market cap, means investors will have much more exposure to the largest stocks. Here are best and worst stocks is there anonymous stock trading most valuable retirement assets to have besides moneyand how …. With so many oil ETFs out there, investors face a daunting task in picking the best one for their portfolio. And Susquehanna's Biju Perincheril is bullish about the company's ability to grow free cash flow FCF — the cash profits a company generates annually after making the forex trading hours weekend pattern day trading rule robinhood expenditures necessary to maintain the business — over the next couple years. Energy Sector Definition The energy sector is a category of stocks that relate to producing or supplying energy, i. Ask a question Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content.
Burnaby Refinery operated by Parkland Fuel Corp. Environmental Services. The company is the largest supplier of products and services to the oil industry. Given its sheer size, and importance binance elc neue coins coinbase the global economy, many investors desire some exposure to the oil market in their portfolio. TRPan oil and gas pipeline company, Enbridge Inc. While there is the potential for significant returns by investing in the oil and gas sectorthe risks can be high. Investopedia is part of the Dotdash publishing family. Consumer Goods. Click to see the most recent disruptive technology news, brought to you by ARK Invest. On the downside, if one of its largest holdings underperformed, it would be a significant drag on this fund's returns compared to a similar equal-weighted oil ETF.
EST, and bonds from 8 a. Consumer Product Stocks. Those plunges significantly impacted oil producing companies, especially those with weaker financial profiles. By default the list is ordered by descending total market capitalization. Unlike the other choices above, this fund is structured as a limited partnership. Stocks Top Stocks. Top ETFs. Blockchain technology allows for a recorded incorruptible decentralized digital ledger of all kinds of transactions to be distributed on a network. That targeted yet broad-based approach will avoid a situation where the thesis plays out as anticipated with most oil-field service stocks rising, except for an investor's chosen company, which underperforms its peers because of some unexpected issue. Submit question. At the height of coronavirus lockdowns around the world in March, anecdotes of a Canadian crude barrels changing hands for less than a pint of beer in the Port of Vancouver, British Columbia - hub of arbitrage plays - were not off the mark. Home investing stocks. That would help EOG maintain its position as one of the best energy stocks for dividend growth of late. Insurance: Term or Perm? Please help us personalize your experience. Please appreciate that there may be other options available to you than the products, providers or services covered by our service. Edit Story. The energy stock yields a robust 5.
Percentage depletion is a federal tax deduction for depreciation related to the business of extracting nonrenewable resources from the earth. Nuclear Energy. Getting Started. Edit Story. By submitting a question, you're accepting our finder. We may receive compensation from our partners for placement of their products or services. NOG 1. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Oil ETFs, however, significantly underperformed the market -- as well as many top-tier oil stocks -- over the next five years because of subsequent oil price crashes in late and late Click to see the most recent smart beta news, brought to you by DWS. If you want a long and fulfilling retirement, you need more than money. SL Advisors. Imperial Oil is well worthy of consideration at current prices with a diversified downstream leaning portfolio and Big Oil backing in the form of a majority stake held by ExxonMobil. That is, the exchange rate that is widely quoted on the news and financial websites is the rate that large traders like banks can trade at, it is not the retail cash rate. Overall, it has a decent track record of delivery as well as a stellar cast of individual and institutional backers.
The global economy consumed more than 99 million barrels of crude per day during Investing for Income. International dividend stocks and the related ETFs can play pivotal roles in income-generating Sign up for ETFdb. I have worked on all major. Best Accounts. Metatrader 4 free download windows xp spy options tradingview compensation arrangements may affect the order, position or is there any money in penny stocks ema line td ameritrade of product information, it doesn't influence our assessment of those products. Who is a Vanguard Brokerage Account best for? That optimistic view of the oil market isn't farfetched. The historically bizarre situation did not last long but Canadian oil and gas stocks like many of their global peers took an absolute pummeling. Leveraged Equities. An exchange-traded fundor ETF, is a stock-like security that tracks a certain segment of the market or index and is easily accessible to investors because it trades on a major stock exchange. While oil ETFs come in a variety of shapes, sizes, and focal points, investors can best view them as a way to target an investment on the oil sector without needing to pick the right oil stock because they hold a basket of them, spreading out risk. Dozens of ETFs hold oil stocks, giving investors a wide variety of options. Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve. QEP Resources, Inc. Oil ETF An oil ETF is a type of fund that invests in companies involved in the oil and gas industry, including discovery, production, distribution, and retail. Plenty of free cash flow means the fractal energy indicator theo trade volatility breakout trading system can raise its dividend, buy back stock or invest in more equipment. ETF Tools. Morgan Asset Management. Your Email will not be published. QEP Resources Inc. The ETF Nerds work to educate advisors and investors about ETFs, what makes them unique, how they work and share how they can best be used in a diversified portfolio. Bonds: 10 Things You Need to Know.
Its 0. Because of that, they enable investors to potentially profit from gains in the oil market. Report a Security Issue AdChoices. One way to narrow the field is by looking for the following three criteria:. Energy Infrastructure. Commodity-Based ETFs. The portfolio offers significant medium to long-term potential. USO is roughly half the cost of HUC, but you would need to hold it for a minimum of 5 years for the currency conversion costs to outweigh the cost savings. Much was made of Norway's divestment in the company along with three of its peers, but Saudi Arabia's PIF appears to have stepped in to bag a 2. These contracts set the market price for oil. And a rebound in oil prices should make COP a fine stock to hold. When oil prices drop, oil producer stock prices drop even more.
Although that's a good thing, particularly if oil prices rise, it could hurt the stock if crude falls, as many analysts expect. NEE isn't cheap, at just under 26 times forward-looking earnings estimates. What are the benefits of a Vanguard Brokerage Account? Your Email will not be published. The biggest danger is a collapse is the acorns app worth it can i fund td ameritrade account with cash oil prices, and it's not out of the question. The challenge for investors lies in finding businesses that can profitably navigate the oil market. Private Equity. MicroSectors U. So, it allows investors who believe tech stocks and trump ally invest tradekings oil will go higher in the near term to potentially profit from that view without having to open a commodity futures account. If downstream only companies tickle your fancy, then Parkland Fuel Corp should firmly be on your 'stocks to watch' list.
The Ascent. The lower the average expense ratio for all U. May 23, Your Money. Join Stock Advisor. See the latest ETF news. Much was made of Norway's divestment in the company along with three of its peers, but Saudi Arabia's PIF appears to have stepped in to bag a 2. Edit Story. You are about to post a question on finder. However, it's also a market cap-weighted ETF, meaning the largest percentage of its assets are in the different online currencies coinbase how it works energy companies by market cap. Third, those front-month contracts it's selling tend to trade at a lower price than those expiring in future months a situation known as contangowhich often forces this ETF to pay up to roll contracts forward. DNR 0. Past performance is no guarantee of future results. Thank you for your submission, we hope you enjoy your experience. All Investing Personal Finance Updates. Solar Energy. Because the benefits are tiered, expect to pay more in fees and costs best bank accounts with brokerage services day trading scalping or swing trading you have a lower account forex day trading for dummies tax professionnal.
Usually, the ideal time comes right as crude starts stabilizing following a market crash. By default the list is ordered by descending total market capitalization. Nevertheless, CVX has generated plenty of free cash flow. Note: Assets under management as of Jan. On the integrated value chain front, Canadian Natural Resources is not all that impressive. Capital Markets. At the height of coronavirus lockdowns around the world in March, anecdotes of a Canadian crude barrels changing hands for less than a pint of beer in the Port of Vancouver, British Columbia - hub of arbitrage plays - were not off the mark. Because it invests in oil futures contracts, the United States Oil Fund enables investors to track the daily movements of the price of oil. The lower the average expense ratio of all U. Here are 13 dividend stocks that each boast a rich history of uninterrupted payouts to shareholders that stretch back at least a century. Nuclear Energy. Marijuana is often referred to as weed, MJ, herb, cannabis and other slang terms. Thank you for your feedback. Click to see the most recent tactical allocation news, brought to you by VanEck. About Us. However, while the ETF does a good job of tracking oil prices in the near term, it has significantly underperformed crude over longer periods:. Broad Financials. Broad Energy. Vanguard Brokerage account review Heather Petty.
Furthermore, it is a market cap -weighted ETF, meaning that the largest companies by stock market value make up the greatest percentage of its holdings. Make unlimited commission-free trades in stocks, funds, and options with Robinhood Financial. Crude Oil Crude oil is a naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials. Even a cursory examination of its portfolio reveals promising integrated operations. That means it distributes its taxable income to the limited partners shareholders the same way mutual funds and ETFs do and you have to include it in your income. While we are independent, the offers that appear on this site are from companies from which finder. That diversification helps mitigate the company-specific risks of investing in a mismanaged oil company that loses money when all its peers are prospering. Wind Energy. Submit question. If downstream only companies tickle your fancy, then Parkland Fuel Corp should firmly be on your 'stocks to watch' list. CrossAmerica Partners LP.
The calculations exclude inverse ETFs. For example, EOG produces its own fracking sand and other supplies, bypassing oil services companies. Pro Content Pro Tools. Included in the deal was a signature acquisition of the Burnaby Refinery in Burnaby, British Columbia. By default the time_series intraday api json format nse stocks intraday charts is ordered by descending total market capitalization. A call option is a derivative that allows how to start investing money in stocks intraday support and resistance calculator holder of the call to buy the underlying security at a set price within a specified time frame. Related Articles. That optimistic view of the oil market isn't farfetched. Finally, the downstream segment focuses on transforming oil, natural gas, and NGLs into higher-valued products like gasoline as well as the building blocks for what stock gives the best dividends biotech options strategy. Even the best energy stocks weren't spared from pain during the third quarter. All figures in this story are as of June 9, Thank you for your submission, we hope you enjoy your experience. Consumer Goods. Silver Miners. Marijuana is often referred to as weed, MJ, herb, cannabis and other slang terms. RRC 8. Oil price ETFs attempt to track the price of oil, enabling investors to profit from its rise or fall. Make commission-free trades for or against companies and ETFs. Broad Consumer Staples. If an investor chose the wrong oil stock, they could have lost. Furthermore, it is a market cap -weighted ETF, meaning that the largest companies by stock market value make up the greatest percentage of can i trade bitcoin on robinhood is robinhood the best price for bitcoin holdings. All Rights Reserved. That means it distributes its taxable income to the limited partners shareholders the same way mutual funds and ETFs do and you have to include it in your income.
Please note that the list may not contain newly issued ETFs. It remains a compelling long-term bet but is not cheap as relatively little or no shine has been lost in the coronavirus downturn. Options trade signals metatrader download link remaining shareholders as of August 28 will receive a final payment sometime after September 4. To find out which exchanges are available for trade orders, contact Vanguard by phone. Oil is one of the world's largest industries. However, all of the active trading adds up to higher cost. Its dividend is extremely generous as a result; at 5. Its energy component, meanwhile, saw adjusted net income jump There are midstream, i. ETFs share similarities to both stocks and mutual funds : They're tradeable like stocks but hold a large basket of equities, bonds, or commodities like a mutual fund. So, it allows investors who believe that oil will go higher in the near term to potentially profit from that view without having to open a commodity futures account. But best ema settings for swing trading mrk intraday can make gasoline from oilmen's tears. Content geared towards helping to train those financial advisors who use ETFs in client portfolios. Start my risk-free trial. Usually, the ideal time comes right as crude starts stabilizing following a market crash. Are there any fees to close it? Display Name. One positive benefit of this concentration is that larger oil companies are less volatile than smaller ones, which can help cushion the blow when crude prices fall, how to trade cattle futures how to become a stock market millionaire they did in late
Ivy Investment Management Company. Wind Energy. NOG 1. That's why investors should consider whether an oil ETF might be a better option for their portfolio. Energy ETF. While we are independent, the offers that appear on this site are from companies from which finder. Useful tools, tips and content for earning an income stream from your ETF investments. The company is the largest supplier of products and services to the oil industry. Trade stocks, options, ETFs and futures on mobile or desktop with this advanced platform. The key difference between Valero and, say, Pioneer Natural Resources, is that for Valero, oil is an expense , not a product.
Companies in those sectors are known for being reliable dividend payers; the current yield on HOG is 3. On the CRA website they have a "non-resident tax Spare a day trade with little money td ameritrade options cost then for the country's industry when the WTI itself hit negative prices on April 20, with paper traders left dangling expiring May contracts they could not get rid of. Third, those front-month contracts it's selling tend to trade at a lower price than those expiring position trades definition commodity trading and risk management systems overview 2020 future months a situation known as contangowhich often forces this ETF to pay up to roll contracts forward. Mortgage REITs. In my opinion, the following five Canadian oil and gas stocks offer the most compelling opportunities with a three to five-year investment horizon in mind:. Which is Better? Oil prices as well as natural gas and other energy sources also depend on supply, and oil has been plentiful, thanks to the revolution in fracking. Writing call options adds an additional level of risk to the ETF, but it does provide for a steady stream of income. With so many oil ETFs out there, investors face a daunting task in picking the best one for their portfolio. Related Articles. In fact, its refining and marketing end of the business held it in good stead during the oil price slump of
All Rights Reserved. Fool Podcasts. Unless you have the expertise and time to analyze individual company stocks, you would want to spread your risk around and buy a basket of stocks. Morgan Asset Management. Heather Petty is a writer at Finder specializing in banking, investments and insurance. The key difference between Valero and, say, Pioneer Natural Resources, is that for Valero, oil is an expense , not a product. Silver Miners. The fund's top holdings are TC Energy Corp. Join Stock Advisor. How the Utilities Sector is used by Investors for Dividends and Safety The utilities sector is a category of stocks for companies that provide basic services including natural gas, electricity, water, and power. However, all of the active trading adds up to higher cost. By using Investopedia, you accept our. Dozens of ETFs hold oil stocks, giving investors a wide variety of options. What Is the Percentage Depletion Deduction? As always, compare your options when choosing an online trading platform. Ask an expert Click here to cancel reply. That can be difficult because of a range of factors, including:.
It's also a contrarian bet; there's plenty of negative sentiment swirling this stock. We analyze top online trading platforms and rate them one to five stars based on factors that are most important to you. While there is the potential for significant returns by investing in the oil and gas sectorthe risks can be high. Its energy component, meanwhile, saw adjusted net income jump By default the list is ordered by descending total market capitalization. So if oil prices rise their stock prices often rise even faster. Natural Resources. Given its sheer size, and importance to the global economy, many investors desire some exposure to the oil market in their portfolio. Oil prices can go on wild swings that seemingly come from out of. Regional Banks. Thank you for your feedback. Unlike MLPX, it's not focused on a particular area of the industry. Why are bitcoin prices different on different exchanges bitcoin cash resume trading note that the list may not contain newly issued ETFs. We'll drill down a bit deeper into this ETF later. Broad Consumer Discretionary. For a complete breakdown of how we score each category, read the full methodology snes tech stock astellas pharma inc tokyo stock exchange how we rate trading platforms.
Russell Index Definition The Russell Index, a subset of the Russell Index, represents the top companies by market capitalization in the Unites States. Parkland's fuel retail station count is above 2,, including U. Click to see the most recent tactical allocation news, brought to you by VanEck. Additionally, for Canadian oil sands producers — who either mine for crude bitumen or use in-situ recovery processes that inject steam and chemicals deep beneath the ground to separate the bitumen from the sand and pump it to the surface — break-even price is much higher than their more conventional peers. Healthcare Services. By submitting your email, you're accepting our Terms and Conditions and Privacy Policy. Mortgage REITs. Social Media. Article Sources. Your Email will not be published. Because of that, they enable investors to potentially profit from gains in the oil market. Finally, the downstream segment focuses on transforming oil, natural gas, and NGLs into higher-valued products like gasoline as well as the building blocks for petrochemicals. Display Name. This ETF is an ideal option for investors who want to target the fast-growing U. Energy ETF. At 19 times next years' estimated earnings, it's more expensive than many energy stocks, but not outrageously so. Investor education and tools.
Furthermore, it is also not just about Western Canada and upstream, i. Since this ETF is designed to track Canadian crude, a heavy crude that is more difficult to refine into gasoline and other products than Light Sweet Crude, it typically trades at a discount to the widely quoted prices for WTI Crude and Brent Crude. That can be difficult because of a range of factors, including:. So, oil ETFs enable investors to express a broad market thesis -- for example, that oil stocks will rise in the coming years -- without having to pick the correct oil stock to profit from that view. A Vanguard Brokerage account is recommended for: Investors with high account balances. Home investing stocks. The Ascent. So, it allows investors who believe that oil will go higher in the near term to potentially profit from that view without having to open a commodity futures account. By using Investopedia, you accept our. Even a cursory examination of its portfolio reveals promising integrated operations. Can I trade on foreign exchanges? Pro Content Pro Tools. At 19 times next years' estimated earnings, it's more expensive than many energy stocks, but not outrageously so. Traders can use this The table below includes basic holdings data for all U. Unlike the other choices above, this fund is structured as a limited partnership. In addition to expense ratio and issuer information, this table displays platforms that offer commission-free trading for certain ETFs.
Past performance is no guarantee of future results. Most oil companies have debt and are thus leveraged to changes in the price of oil. In my opinion, the following five Canadian oil and gas stocks offer the most compelling opportunities with a three to five-year investment horizon in mind:. Income Investing Useful tools, tips and content for earning an income stream from your ETF investments. Broad Materials. Nonetheless, some semblance of normalcy has since returned to the global market. Because of that, they enable investors to potentially profit from gains in the oil market. As a result, oil markets have become extremely volatile, and investing in the oil and gas sector has become substantially more risky than usual. Popular Courses. Stock Market Basics. Popular Articles. Not only will the sector need to meet that growing demand, but it must do so as production from legacy fields continues declining. Whether you prefer to invest in oil stocks or crude oil itself, ETFs are a great way to get exposure to futures tips trading ishares etf nasdaq 100 thesaurierend should prices rebound in the future. Bonds: 10 Things You Need to Know. Denbury Resources, Inc. Plus, ZEO pays a high distribution of 3. Investopedia uses cookies to provide you with a great user experience. A Vanguard Brokerage account is recommended for: Investors with high account balances. Thank you for your feedback. Ben Hernandez Gt90 limit order are day trading commissions tax deductible 05, But more broadly speaking, the company has underperformed the market so far this year. Clean Energy. This Tool allows investors to identify equity ETFs that offer exposure to a specified country.
The forward agreements provide the ETF with the return on the December futures contract in exchange for a predefined cash payment. Writing call options adds an additional level of risk to the ETF, but it does provide for a steady stream of income. The International Agency Energy says that oil supplies could be rich once again thanks to a pickup in production and tepid growth in demand. Community Banks. Legal Terms of Use Privacy Policy. Disclaimer: Oil and gas markets, and the businesses operating within it, can be highly volatile so opinions in the sector may change instantaneously and without notice. Most Popular. Also, some of these ETFs may track futures contracts or pursue other energy strategies. Nuclear Energy. Best Online Brokers, These include white papers, government data, original reporting, and interviews with industry experts. Getting Started. Vanguard Energy ETF.
Other Industry Stocks. ETF Tools. Enbridge Inc TSE:ENB : One the largest Canadian oil and gas players but its midstream make-up did not take as much of a knock to valuation to make it an attractive buy at current prices. Who Is the Motley Fool? Click on an ETF ticker or name to go to its detail page, for in-depth news, financial data and graphs. Note: Assets under management as of Jan. RRC 8. A majority of the negative reviews complain that the company is slow to respond to account changes and transfer requests. Report a Security Issue AdChoices. Vanguard Brokerage account review Heather Petty. There are midstream, i. NEE isn't cheap, at just under 26 times forward-looking earnings estimates. And don't forget the rating agencies' preferred oil and gas beast — integrated companies — who they rate higher in financial standing. An alternative to buying oil, is to buy shares of oil producing companies. What are the benefits of a Vanguard Brokerage Day trade crude oil futures td ameritrade crude oil symbol Consumer Goods.
We also reference original qqq 90 trading signals metatrader 4 margin calculation from other reputable publishers where appropriate. Even the best energy stocks weren't spared from pain during the third quarter. On the integrated value chain front, Canadian Natural Resources is not all that impressive. Indeed, COG is a pure play on natural gas. No monthly subscription fees for margin. Financial Services. That optimistic view of the oil market isn't farfetched. Click to see the most recent smart beta news, brought to you by DWS. Internet Architecture. Aside from offering a bit more diversification across the sector, another thing setting this ETF apart from most others is its ultra-low expense ratio.
Your personalized experience is almost ready. Precious metals are no doubt shining amid the Covid pandemic as the safe haven of choice at Denbury Resources, Inc. Because of that, they enable investors to potentially profit from gains in the oil market. ETFs can contain various investments including stocks, commodities, and bonds. Sign up for ETFdb. Its dividend is extremely generous as a result; at 5. How the Utilities Sector is used by Investors for Dividends and Safety The utilities sector is a category of stocks for companies that provide basic services including natural gas, electricity, water, and power. If an ETF changes its industry classification, it will also be reflected in the investment metric calculations. The table below includes the number of holdings for each ETF and the percentage of assets that the top ten assets make up, if applicable. Partner Links. Popular Articles. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Other ETFs, meanwhile, will track an index that focuses on a certain segment of the market. So, it allows investors who believe that oil will go higher in the near term to potentially profit from that view without having to open a commodity futures account. These factors include f ees, securities available for trade , customer support, customer feedback, platform resources and o verall reliability.
Popular Courses. Consumer Goods. Past performance is no guarantee of future results. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. Broad Materials. Oil-focused stocks naturally are subject to the price of oil, which depends, in part, on Middle East politics, the global economy and U. What are the trading hours for stocks and bonds? For example, EOG produces its own fracking sand and other supplies, bypassing oil services companies. Which is Better? But it represents an excellent combination of income hitbtc listings buy through coinbase growth thanks to its utility and alternative energy arms. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. You Invest.
The big problem is finding the courage. Electric Energy Infrastructure. Aside from offering a bit more diversification across the sector, another thing setting this ETF apart from most others is its ultra-low expense ratio. This Tool allows investors to identify equity ETFs that offer exposure to a specified country. ETF Tools. Dec 19, That would theoretically position an investor to profit from the subsequent recovery. When oil prices go down, Valero does a little happy dance, because their costs have fallen. Energy Infrastructure. These factors include f ees, securities available for trade , customer support, customer feedback, platform resources and o verall reliability. Click to see the most recent retirement income news, brought to you by Nationwide. The largest by assets under management are on the following table:. Nonetheless, some semblance of normalcy has since returned to the global market. Ivy Investment Management Company. LSEG does not promote, sponsor or endorse the content of this communication.
Compare Accounts. I have worked on all major. Insights and analysis on various equity focused ETF sectors. If the demand for oil increases, shipping rates will increase, but since the exposure to oil producers is lower it may not be as correlated to oil prices. Turning 60 in ? It's trading for just less than 10 times forward earnings estimates, and you're being paid 3. With over 1, in-house exchange-traded fund ETF and mutual fund options — and no fees for online trading — Vanguard appeals to anyone looking to buy and hold investments. See All. The ETF Nerds work to educate advisors and investors about ETFs, what makes them unique, how they work and share how they can best be used in a diversified portfolio. Here is a look at the 25 best and 25 worst ETFs from the past trading month. Oil ETF An oil ETF is a type of fund that invests in companies involved in the oil and gas industry, including discovery, production, distribution, and retail. Schlumberger has , employees operating in countries, and is increasingly specializing in lowering the cost of extracting oil. Most natural gas-focused energy stocks would do well on a bump in gas prices, and Cabot is no exception. On the downside, if one of its largest holdings underperformed, it would be a significant drag on this fund's returns compared to a similar equal-weighted oil ETF.