The fourth fund in this group, the PowerShares Dynamic Oil & Gas Services Portfolio ETF (PXJ), is also the most expensive with an expense ratio of 0.61 percent. PXJ tracks a more specialized index that, according to the fund’s literature, is “designed to outperform traditional cap-weighted benchmarks, [which] thoroughly evaluates companies based on a variety of investment merit criteria, including price momentum, earnings momentum, quality, management action and value.” This $35.8 million fund has 31 holdings concentrated in small-cap U.S. stocks. Trading at a 0.25 percent discount to NAV, PXJ offers a dividend yield of 1.29 percent. The fund is down nearly 14 percent year-to-date.

The Bottom Line

Investors continue to await the highly anticipated return of a profitable oil sector. Stabilizing oil prices is a good sign, and if the price of oil picks up and supplies fall below the level of demand, oil equipment and services providers will experience an uptick in their business, which should allow them to increase prices and expand margins. Eventually, their share prices would catch up with that and investors should benefit.

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