However, because of the equal-weight methodology that reduces its leverage to the industry’s largest names, XES could benefit more than its rivals if oil services mergers and acquisitions activity increases.
That is not a far flung scenario as both Schlumberger and National Oilwell Varco (NYSE: NOV), just to name two, have deep histories of acquisitions.
So while OIH and IEZ are home to an array of potential acquirers, XES offers exposure to more than a few potential targets. XES constituent firms that have previously been rumored to be targets include but are not limited to Weatherford, Tidewater (NYSE: TDW), Dril-Quip (NYSE: DRQ) and McDermott International (NYSE: MDR).
SPDR Oil & Gas Equipment & Services ETF
