“In our view, land drillers will continue to outperform [oil and gas stocks], given prospective increases in rig activity and cash margins,” RBC Capital Markets said in a research note.

Both PSCE and IOIL include a blend of smaller companies that engage in energy infrastructure and actual producers and distributors. The PowerShares ETF tracks the S&P SmallCap 600 Capped Energy Index while the IndezIQ ETF follows a customized IQ Global Oil Small Cap Index, which includes global small-cap oil companies.

PSCE, though, focuses on smaller and more risky companies, which have helped contribute to the better performance so far this year. Small-caps make up 61.6% and micro-caps make up 38.4% of PSCE portfolio. The fund’s top holdings include Bristow Group (NYSE: BRS) 8.4%, Exterran Holdings (NYSE: EXH) 7.9% and Stone Energy (NYSE: SGY) 7.0%.

IOIL includes some larger companies. The ETF includes large-caps 2.1%, mid-caps 45.8%, small-caps 45.3% and micro-caps 6.9%. The fund’s top holdings include Gulfport Energy (NasdaqGS: GPOR) 9.6%, Kodiak Oil & Gas (NYSE: KOG) 5.3% and Tonengeneral Sekiyu (TGRLF) 4.2%.

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