After rising modestly in August, energy commodity prices have continued to advance in September, lifting energy ETFs.
Saudi Arabia and Russia on Tuesday announced they would extend voluntary cuts to oil production until the end of the year, prompting a rally in oil prices. Brent, the international crude benchmark, rose above $90 a barrel for the first time since last November.
While energy commodities continue to strengthen, four Invesco ETFs providing exposure to energy commodities and equities are rallying.
Invesco DB Oil Fund (DBO)
DBO is up 6.5% in the past week and has climbed 6.33% in one-month period.
While many other funds, including two on this list, offer exposure to equities, DBO is designed as a way for investors to get convenient, cost-effective exposure to energy commodity futures. DBO’s underlying index comprises futures contracts on light sweet crude oil (WTI), the U.S. crude benchmark.
Of all the energy ETFs listed, DBO is the largest with $269 million in assets. The fund carries a 76 basis point expense ratio.
Invesco DB Energy Fund (DBE)
Meanwhile, DBE has advanced 4.4% in the past week. The fund is up 4.2% in a one-month period.
Like DBO, DBE offers exposure to commodity futures and does not hold equities. However, compared to DBO, DBE offers much broader exposure to the energy sector. DBE’s underlying index is composed of futures contracts on WTI crude, the U.S. benchmark, heating oil, Brent crude, the international benchmark, RBOB gasoline, and natural gas.
DBE charges 77 basis points and has $95 million in assets under management.
Invesco S&P SmallCap Energy ETF (PSCE)
PSCE has climbed 3% in one week. The fund is up 4.4% in the past month.
The fund offers exposure to small-cap companies in the broad energy sector. According to Invesco, these companies are engaged in the business of producing, distributing, or servicing energy related products, including oil and gas exploration and production, refining, oil services, and pipelines.
PSCE has $255 million in assets while charging just 29 basis points.
Invesco Dynamic Oil & Gas Services ETF (PXJ)
PXJ is up 2.9% in one week and up 3% in one month.
PXJ’s underlying index comprises 30 U.S. companies that assist in the production, processing, and distribution of oil and gas. The index therefore includes companies that are engaged in the drilling of oil and gas wells, manufacturing oil, and gas field machinery and equipment.
Additionally, companies providing services to the oil and gas industry may be included. This includes well analysis, platform and pipeline engineering and construction, logistics and transportation services, oil and gas well emergency management and geophysical data acquisition and processing.
Furthermore, the fund has $37 million in assets under management and charges 63 basis points.
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