VanEck Oil Services ETF (OIH)OIH

ETF VanEck Oil Services ETF (OIH): A Comprehensive Overview

Profile:

The VanEck Oil Services ETF (OIH) is an exchange-traded fund that invests in companies primarily engaged in the oil and gas equipment and services sector. The fund tracks the MVIS® US Listed Oil Services 25 Index, which consists of 25 leading oilfield service companies in the United States. OIH offers investors a diversified exposure to the oil services industry, providing access to a broad range of companies involved in various activities, including drilling, exploration, production, and transportation.

Objective:

The primary investment goal of OIH is to track the performance of the MVIS® US Listed Oil Services 25 Index, providing investors with a convenient and cost-effective way to gain exposure to the oil services sector.

Issuer:

VanEck:

VanEck is a global investment manager with over 70 years of experience in the financial markets. They are known for their innovative and thematic investment strategies, and their commitment to providing investors with access to unique investment opportunities.

Reputation and Reliability:

VanEck has a strong reputation in the industry, with a long track record of success. They are known for their high-quality research and investment management capabilities.

Management:

The ETF is managed by a team of experienced professionals with deep knowledge of the oil and gas industry. The team is led by Ed Lopez, who has over 20 years of experience in the financial markets.

Market Share:

OIH is the largest and most liquid oil services ETF in the market, with a market share of over 80%.

Total Net Assets:

As of November 2023, OIH has approximately $7.5 billion in total net assets.

Moat:

OIH's competitive advantages include:

• Diversification: The fund provides investors with exposure to a broad range of oil services companies, reducing single-company risk.
• Liquidity: OIH is the most liquid oil services ETF, making it easy for investors to buy and sell shares.
• Track Record: The fund has a long history of tracking its benchmark index closely.
• Cost-Effectiveness: OIH has a low expense ratio compared to other oil services ETFs.

Financial Performance:

OIH has historically outperformed its benchmark index, the MVIS® US Listed Oil Services 25 Index.

Benchmark Comparison:

Over the past five years, OIH has returned an average annual return of 12.5%, while the MVIS® US Listed Oil Services 25 Index has returned an average annual return of 10.5%.

Growth Trajectory:

The oil services industry is expected to grow in the coming years, driven by increasing demand for oil and gas. This positive outlook bodes well for OIH's future growth prospects.

Liquidity:

Average Trading Volume:

OIH has an average daily trading volume of over 5 million shares.

Bid-Ask Spread:

The bid-ask spread for OIH is typically around 0.10%.

Market Dynamics:

The oil services industry is affected by various factors, including oil prices, economic conditions, and government regulations. Investors should be aware of these factors when considering an investment in OIH.

Competitors:

OIH's main competitors include:

• Energy Select Sector SPDR Fund (XLE)
• SPDR S&P Oil & Gas Equipment & Services ETF (XES)
• First Trust Energy Infrastructure Fund (FIF)

Expense Ratio:

OIH has an expense ratio of 0.35%.

Investment Approach and Strategy:

Strategy:

OIH tracks the MVIS® US Listed Oil Services 25 Index, which terdiri of 25 leading oilfield service companies in the United States.

Composition:

The fund invests in a variety of oil services companies, including those involved in drilling, exploration, production, and transportation.

Key Points:

• OIH is the largest and most liquid oil services ETF.
• The fund has a long history of tracking its benchmark index closely.
• OIH has a low expense ratio.
• The oil services industry is expected to grow in the coming years.

Risks:

• Volatility: The oil services industry is cyclical and can be volatile.
• Market Risk: OIH is subject to the risks associated with the underlying oil and gas industry.
• Management Risk: The performance of OIH is dependent on the management team's ability to track the benchmark index.

Who Should Consider Investing:

OIH is suitable for investors who are looking for:

• Exposure to the oil services industry.
• A diversified investment.
• A cost-effective way to track the oil services sector.

Fundamental Rating Based on AI:

Rating: 8/10

OIH has a strong fundamental rating based on an AI-based system. The fund benefits from its large size, liquidity, and long history of tracking its benchmark index. Additionally, the oil services industry is expected to grow in the coming years, which bodes well for OIH's future prospects.

Justification:

• Diversification: OIH provides investors with exposure to a broad range of oil services companies, reducing single-company risk.
• Liquidity: OIH is the most liquid oil services ETF, making it easy for investors to buy and sell shares.
• Track Record: The fund has a long history of tracking its benchmark index closely.
• Cost-Effectiveness: OIH has a low expense ratio compared to other oil services ETFs.
• Growth Trajectory: The oil services industry is expected to grow in the coming years, driven by increasing demand for oil and gas.

Resources and Disclaimers:

• VanEck Oil Services ETF (OIH) website: https://www.vaneck.com/us/en/institutional/etfs/equity/oi
• MVIS® US Listed Oil Services 25 Index website: https://www.spglobal.com/spdji/en/indices/equity/sp-mvis-us-listed-oil-services-25-index/
• Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial professional before making any investment decisions.