Oil ETFs Are Still Slumping in the Wake of Venezuela Uncertainty
Oil ETFs are baskets of securities that track the price of oil as a commodity, or contain oil stocks. They are an easy way to invest in oil markets, but they do carry risk.
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Investing in oil is typically reserved for advanced commodity traders — if you're trying to invest in the commodity itself. But if you're just looking to gain exposure to oil, and to perhaps try to profit from its big swings, oil exchange-traded funds may be a better approach.
What are oil ETFs?
Oil ETFs are baskets of securities that either track the price of oil as a commodity or contain oil stocks. Oil ETFs give investors easy access to a commodity that’s difficult to own and store. But oil prices can swing drastically in either direction and can be closely correlated to global and geopolitical events, making it a complex and often risky investment.
» Want to know more? Learn how to invest in oil
Oil ETF Performance
The oil ETFs we track are commodities ETFs, meaning they track the price of oil through benchmarks such as the Brent Crude Oil or West Texas Intermediate benchmarks. These categories of ETFs do not hold oil company stocks. Our screen also may include oil ETNs (more on that below).
While some oil stocks got a big bump on news that U.S. oil companies could potentially expand operations in Venezuela following the removal of the country's former president Nicolás Maduro, oil commodity ETFs remained muted. Back in the summer of 2025, OPEC+ agreed to boost production, and then in October, increased output by 30,000 barrels per day compared to September's total. In Jan. 2026, the organization stated it plans to keep output steady into the first quarter of 2026. Given this, oil ETFs have been struggling of late, as indicated below.
Ticker | Company | Performance (Year) |
|---|---|---|
USO | United States Oil Fund | -7.68% |
DBO | Invesco DB Oil Fund | -10.98% |
OILK | ProShares K-1 Free Crude Oil ETF | -14.94% |
Source: Finviz. Data is current as of Jan. 5, 2025, and is intended for informational purposes only. | ||
» Curious about oil stocks? Explore how to buy oil stocks
What are oil ETNs?
Oil ETNs, or exchange-traded notes, are similar to oil ETFs in that they are both traded on securities exchanges and can be bought and sold throughout the trading day, similar to stocks. A major difference between ETFs and ETNs is that ETFs are investment companies registered by the U.S. Securities and Exchange Commission, and ETFs actually own the underlying assets that you, as an investor, own a part of. ETNs do not own an underlying portfolio of assets, and instead are made up of unsecured debt obligations. ETNs are generally considered riskier investments than ETFs.
» Ready to get started? Check out the best brokers for ETF investors
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