Related: Two Oil ETFs That Could Slump in September
Another energy ETF to consider is the iShares U.S. Oil Equipment & Services ETF (NYSEArca: IEZ). IEZ reflects a traditional market cap-weighted indexing methodology. If crude oil prices rebound, shale hydraulic fracturing companies could increase spending on exploration and production this year.
Current OPEC compliance with production cut plans remains above their historical average, and it usually takes between two to three quarters for inventories to normalize after the cuts. The challenge for energy equities is that some oil market observers see more declines coming for crude. Oil traders are concerned over how fast U.S. shale oil producers will increase production to capture the rising prices.
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