Assessing the Near-Term Outlook for Oil Services ETFs

PXJ follows a fundamentally weighted index, which selects stocks based on price momentum, earnings momentum, quality, management action, and value. Importantly, that methodology steers PXJ away from the large weightings to a small number of stocks as is seen in rival oil services ETFs.

“While the U.S. oil-rig count fell 25% from April through June, it climbed by seven last week to 447, marking the third straight rise and the sixth gain out of the last seven weeks. KeyBanc Capital Markets analyst Robin Shoemaker said the rig count is up 10% from its bottom and will be up 10%-15% in Q3,” reports Investor’s Business Daily.

Related: A Very Bullish Call for Oil ETFs

This is a potentially pivotal week for OIH on the earnings front because Schlumberger (NYSE: SLB) and Halliburton (NYSE: HAL), the world’s two largest oilfield services providers, report earnings. Halliburton reports on Wednesday and Schlumberger follows on Thursday. Those two stocks combine for 36% of OIH’s weight.

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VanEck Vectors Oil Service ETF