Crude oil futures have experienced significant volatility in 2026, climbing from around $60 at the start of the year to more than $112 in early April, before settling around $90 mid-month. This fluctuation has prompted some investors to seek safer investments while presenting opportunities for those willing to accept more risk. Investing in oil through exchange-traded funds (ETFs), such as the Invesco Dynamic Oil & Gas Services ETF (PXJ), allows for controlled exposure to oil services companies without direct commodity investment.
The PXJ ETF, with over 20 years of trading history, focuses on domestic oil services and has approximately $121 million in assets. Year-to-date returns are at 40% and 80% for the past year, with a dividend yield of 2.2%. In comparison, the iShares U.S. Oil Equipment & Services ETF (IEZ) offers a lower fee of 0.38% and has seen a 35% return YTD. Another option, the SPDR S&P Oil & Gas Equipment & Services ETF (XES), boasts the lowest fee at 0.35% and an equal-weight investment strategy, achieving nearly 40% returns this year.
While PXJ stands out for its higher dividend yield, IEZ and XES may be favored for their lower expenses and liquidity. All three funds have outperformed broader market indices over both one-year and year-to-date metrics.
