If you want to bypass futures-based ETFs such as PowerShares DB Oil (NYSEArca: DBO) and United States Oil (NYSEArca: USO) and head straight to equities, oil explorers have been doing well this year as a result of higher oil prices.
iShares Dow Jones U.S. Oil Equipment & Services Index Fund (NYAR: IEZ) is a standout: it’s up 51% in the last six months. PowerShares Dynamic Oil Services (NYSEArca: PXJ) and SPDR S&P Oil & Gas Equipment & Services (NYSEArca: XES) have also done well, gaining 50.8% and 46.8%, respectively in the last six months. You can find a complete list of the the oil explorers in the ETF Analyzer.
Despite solid performance in 2010, most oil production ETFs are still well off their highs by as much as 50%. Time to go bargain shopping!
For more information on the oil industry, visit our oil & gas exploration category.
Max Chen contributed to this article.