Buying OIH, however, can prove problematic for some investors. As with all HOLDRs, its shares can only be bought in round lots of 100, and those shares trade around $150.
Those two factors could make investing in OIH too inflexible for some. Consider that energy makes up roughly 10% of the S&P 500, while oil services makes up only a quarter of the sector, as measured by the Energy Sector SPDR (XLE). As a result, 100 shares of OIH may be too large of a bet for many investors, as the size of the investment could dominate a portfolio.
State Street Global Advisors and iShares have both recently rolled out funds that allow investors to more flexibly capture the exploration and production (E&P) and services portions of the energy sector.State Street now offers:
- iShares Dow Jones U.S. Oil Equipment & Services (IEZ)
- iShares Dow Jones U.S. Oil and Gas Exploration & Production (IEO)