“The investment thesis for taking a stake in OIH is likely motivated by the fact that the incremental barrel of oil being produced is increasingly coming from areas (deep water, oil shale, the Arctic) that demand more services expertise and technology,” Gabriel said. “Such a dynamic supports healthy long-term industry trends and pricing power. However, prospective investors should also keep in mind that oil-services firms do tend to move in a somewhat outsized fashion depending on which way the economic winds are blowing.”

OIH holds 25 of the largest companies in the space and includes a large tilt toward Schlumberger (NYSE: SLB) and Halliburton (NYSE: HAL).

Alternatively, the iShares U.S. Oil Equipment & Services ETF (NYSEArca: IEZ) provides a slightly more diversified portfolio of about 50 companies, but it is still top heavy. Additionally, the SPDR Oil & Gas Equipment & Services ETF (NYSEArca: XES) equally weights a portfolio of about 50 oil services companies.

For more information on the energy services sector, visit our oil services category.

Max Chen contributed to this article.

Full disclosure: Tom Lydon’s clients own shares of SPY.