What are oil & gas exploration & production ETFs?
Exploration and production (E&P) companies search for oil and natural gas, drill wells and bring what they find to market. Most funds in this guide hold baskets of these US stocks. Five companies appear in five of the seven funds with published holdings: EOG Resources, Marathon Petroleum, Diamondback Energy, Valero Energy and Permian Resources. ConocoPhillips and Devon Energy appear in four, and ConocoPhillips has the highest typical weight, a median of 7.11%.
All the ETFs here follow indexes, and the indexes differ a lot. SPDR's XOP spreads its money across 51 stocks, with just 27.94% in its top 10. iShares' IEO puts 71.26% in its top 10, including 17.26% in ConocoPhillips. First Trust's FTXN tracks the Nasdaq US Smart Oil & Gas Index, Invesco's PXE holds 30 stocks chosen by an Intellidex index, and Texas Capital's OILT follows the Alerian Texas Weighted Oil and Gas Index.
Four products are leveraged or inverse trading tools. Direxion's GUSH and DRIP seek 2x and -2x the daily move of an S&P oil and gas exploration and production index. BMO's NRGU and NRGD are exchange-traded notes (ETNs, unsecured bank debt rather than funds) whose names signal 3x and -3x exposure to big US oil stocks. UBS's USOI is a covered-call note tied to crude oil.
Expense ratios (the yearly fee, deducted from fund assets) run from 0.35% for XOP and OILT to 1.01% for DRIP, with a median of 0.60%. Among the unleveraged funds the median is 0.37%. The money is lopsided. XOP, IEO, GUSH, FTXN and DRIP hold 97.6% of the group's roughly $4.1 billion in assets, and XOP alone has about $2.9 billion.
Oil & gas exploration & production ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 7 biggest oil & gas exploration & production ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Eog Resources, Inc. | 5 of 7 | 5.6% |
| Marathon Petroleum Corp | 5 of 7 | 5.1% |
| Diamondback Energy, Inc. | 5 of 7 | 4.29% |
| Valero Energy Corp | 5 of 7 | 4.06% |
| Permian Resources Corp | 5 of 7 | 2.73% |
| Conocophillips | 4 of 7 | 7.11% |
| Devon Energy Corporation | 4 of 7 | 4.25% |
| Ovintiv Inc. | 4 of 7 | 2.73% |
| HF Sinclair Corp | 4 of 7 | 2.08% |
| Occidental Petroleum Corp | 3 of 7 | 5.23% |
| EQT Corp | 3 of 7 | 4.43% |
| Chevron Corp | 3 of 7 | 4.35% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest oil & gas exploration & production ETFs, side by side
Swipe the table to see all 5 funds.
| XOP | IEO | FTXN | PXE | OILT | |
|---|---|---|---|---|---|
| Net assets | $2.91B | $516.1M | $180.7M | $84.7M | $12.0M |
| Expense ratio | 0.35% | 0.37% | 0.6% | 0.63% | 0.35% |
| Holdings | 51 | 46 | 43 | 30 | 25 |
| In the 10 largest | 27.94% | 71.26% | 53.09% | 48.48% | 57.64% |
| Biggest holding | Texas Pacific Land Corp (3.17%) | Conocophillips (17.26%) | Conocophillips (7.26%) | Valero Energy Corp. (6.06%) | Exxon Mobil Corp (7.35%) |
| Yield | 1.56% | 1.48% | 1.7% | 1.4% | 4.57% |
| 1-year return | +59.0% | +67.3% | +57.0% | +57.9% | +64.5% |
| 3 years, a year | +14.2% | +18.3% | +16.5% | +14.1% | — |
| 5 years, a year | +16.3% | +21.5% | +18.1% | +19.3% | — |
| Worst drop, past year | -18.5% | -16.3% | -16.4% | -16.7% | -20.7% |
| Launched | 2006 | 2006 | 2016 | 2005 | 2023 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 27, 2026.
Head to head
XOP vs IEO
XOP spreads its money widely: its largest holding, Texas Pacific Land, is 3.17%, and its top 10 total 27.94%. IEO is top-heavy, with ConocoPhillips at 17.26% and 71.26% in its top 10. All 46 of IEO's stocks are also in XOP, yet only 54.5% of their assets overlap because the weights differ. Fees are close: 0.35% against 0.37%. In the year to October 27, 2026, IEO returned 67.3% to XOP's 59%, with a smaller worst drop (16.3% vs 18.5%). XOP may suit investors wanting no single stock to dominate; IEO, those comfortable with a few large positions.
XOP vs PXE
No pair here overlaps more: 66.3% of their assets are in common, and 28 of PXE's 30 stocks are also in XOP. PXE, which follows an Intellidex index, is more concentrated, with 48.48% in its top 10, led by Valero Energy at 6.06%. It costs 0.63% a year to XOP's 0.35% and has about $85 million in assets against $2.9 billion. In the year to October 27, 2026, XOP returned 59% and PXE 57.9%, with worst drops of 18.5% and 16.7%. PXE may suit investors who prefer fewer holdings; XOP, those focused on cost.
IEO vs FTXN
Both have ConocoPhillips as their largest holding, but IEO puts 17.26% there against FTXN's 7.26%, and IEO's top 10 make up 71.26% versus 53.09%. FTXN, which tracks the Nasdaq US Smart Oil & Gas Index, also owns ExxonMobil and Chevron at about 7% each. About half their assets (49.6%) overlap. IEO costs 0.37% against 0.60%; FTXN yielded 1.7% to IEO's 1.48%. In the year to October 27, 2026, IEO returned 67.3% and FTXN 57%, with worst drops of about 16% each. FTXN may suit those wanting less riding on one company; IEO, those focused on cost.
How much do the largest oil & gas exploration & production ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| XOP and PXE | 66.3% | 28 | |
| IEO and PXE | 60% | 27 | |
| XOP and IEO | 54.5% | 46 | |
| IEO and FTXN | 49.6% | 22 | |
| FTXN and OILT | 49.5% | 14 | |
| FTXN and PXE | 47.3% | 19 | |
| XOP and FTXN | 43.8% | 25 | |
| PXE and OILT | 43.8% | 14 | |
| XOP and OILT | 35.7% | 17 | |
| IEO and OILT | 33.9% | 14 |
From each fund’s full holdings in its latest N-PORT report.
How have oil & gas exploration & production ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing oil & gas exploration & production ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | IEO iShares U.S. Oil & Gas Exploration & Production E… | $516.1M | 0.37% | +10.4% | +67.5% | +67.3% | +18.3% |
| 2 | XOP SPDR S&P Oil & Gas Exploration & Production ETF | $2.91B | 0.35% | +10.2% | +60.5% | +59.0% | +14.2% |
| 3 | PXE Invesco Energy Exploration & Production ETF | $84.7M | 0.63% | +10.9% | +59.8% | +57.9% | +14.1% |
| 4 | FTXN First Trust Nasdaq Oil & Gas ETF | $180.7M | 0.6% | +9.8% | +53.9% | +57.0% | +16.5% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How oil & gas exploration & production ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| XOP | not yet launched | not yet launched | +41.6% |
| IEO | -51.7% | -60.0% | +52.0% |
| FTXN | not yet launched | -54.1% | +39.3% |
| PXE | -56.8% | -58.8% | +56.7% |
| OILT | not yet launched | not yet launched | not yet launched |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives oil & gas exploration & production ETFs?
E&P companies produce a commodity, so their profits rise and fall mainly with oil and natural gas prices. Those prices swing with global demand, economic growth, output decisions by big producing countries, weather and stored supplies. Much of the cost of drilling is fixed, so a modest price change can move profits sharply, and producers often cut spending and dividends when prices slump. Interest rates matter too, since many companies borrow to drill, and rules on drilling and emissions can raise costs.
Past downturns show how differently these funds can behave from the broad market. In the 2008 financial crisis, IEO fell 51.7% and PXE 56.8%, close to the S&P 500's 55.2% drop. In the 2020 COVID-19 crash they fell much further: IEO lost 60%, PXE 58.8% and FTXN 54.1%, against 33.7% for the S&P 500. The 2022 bear market went the other way. While the S&P 500 fell 24.5%, PXE gained 56.7%, IEO 52%, XOP 41.6% and FTXN 39.3%.
Oil & gas exploration & production ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | XOP SPDR S&P Oil & Gas Exploration & Production E… | 0.35% | $35 a year | $2.91B |
| 2 | OILT Texas Capital Texas Oil Index ETF | 0.35% | $35 a year | $12.0M |
| 3 | IEO iShares U.S. Oil & Gas Exploration & Producti… | 0.37% | $37 a year | $516.1M |
| 4 | FTXN First Trust Nasdaq Oil & Gas ETF | 0.6% | $60 a year | $180.7M |
| 5 | PXE Invesco Energy Exploration & Production ETF | 0.63% | $63 a year | $84.7M |
Ordinary funds with at least $10 million in net assets. The median ordinary oil & gas exploration & production ETF charges 0.37% a year; leveraged and inverse funds usually charge more.
Do oil & gas exploration & production ETFs pay dividends?
6 of the 6 ordinary oil & gas exploration & production ETFs with a page here paid distributions over the last 12 months, with a median yield of 1.56%.
| Highest yields | Yield | Net assets |
|---|---|---|
| FTXN First Trust Nasdaq Oil & Gas ETF | 1.7% | $180.7M |
| XOP SPDR S&P Oil & Gas Exploration & Production E… | 1.56% | $2.91B |
| IEO iShares U.S. Oil & Gas Exploration & Producti… | 1.48% | $516.1M |
| PXE Invesco Energy Exploration & Production ETF | 1.4% | $84.7M |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets.
How to choose a oil & gas exploration & production ETF
- What each fund charges. XOP and OILT charge 0.35% a year and IEO 0.37%. FTXN (0.60%) and PXE (0.63%) cost noticeably more, and the leveraged GUSH and DRIP charge 0.94% and 1.01%.
- Spread out or top-heavy. XOP's top 10 stocks make up 27.94% of the fund, so no single company dominates. IEO's top 10 are 71.26%, with ConocoPhillips at 17.26%. PXE (48.48%), FTXN (53.09%) and OILT (57.64%) sit in between.
- How each index picks its stocks. XOP and IEO track indexes covering US exploration and production stocks. FTXN follows the Nasdaq US Smart Oil & Gas Index, PXE an Intellidex index of 30 stocks, and OILT an Alerian index weighted toward Texas.
- How much two funds overlap. XOP and PXE share 66.3% of their assets, so owning both adds less variety than it may seem. IEO and OILT share only 33.9%. FTXN and OILT hold ExxonMobil among their five largest positions; XOP and IEO do not.
- Fund size and trading costs. XOP has about $2.9 billion in assets and IEO about $516 million. PXE (about $85 million) and OILT (about $12 million) are small, which can mean wider bid-ask spreads (a hidden trading cost) and a higher risk of closure.
- Leveraged, inverse and note versions differ. GUSH seeks 2x and DRIP -2x the index's daily move, resetting each day, so results over months can stray far from 2x. NRGU and NRGD are BMO notes, and USOI is a UBS covered-call note on crude oil.
What are the risks of oil & gas exploration & production ETFs?
- Prices tied to oil and gas. These companies' profits rise and fall with oil and natural gas prices, which can collapse quickly. In the 2020 COVID-19 crash, IEO lost 60% and PXE 58.8%, while the S&P 500 fell 33.7%.
- Large swings even in good years. In the year to October 27, 2026, the plain stock funds' volatility (how much prices bounce around) ran from 24.3% (FTXN) to 28.9% (XOP). XOP fell 18.5% from a peak while still gaining 59%.
- A few stocks can dominate. IEO holds 71.26% of its money in ten stocks, including 17.26% in ConocoPhillips, so one company's setback can move the whole fund. OILT (57.64%) and FTXN (53.09%) are also top-heavy; XOP, at 27.94%, is not.
- Daily leverage wears down over time. GUSH and DRIP reset their 2x and -2x bets every day. GUSH's three-year return to October 27, 2026 (13.2%) trailed the unleveraged XOP's (14.2%), and DRIP fell as much as 69% within the past year.
- Notes carry bank and option risks. NRGU, NRGD and USOI are exchange-traded notes, unsecured debt of BMO or UBS, so holders depend on the bank paying. NRGD lost 87.4% in the year to October 27, 2026. USOI's covered-call design gives up some gains.
Leveraged and inverse oil & gas exploration & production ETFs (2x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
| Fund | Daily aim | Net assets | 1-year return |
|---|---|---|---|
| GUSH Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X… | 2× | $248.0M | +120.6% |
| DRIP Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X… | −2× | $100.3M | -65.7% |
| NRGD MicroSectors U.S. Big Oil -3 Inverse Leveraged ETN | −1× | — | -87.4% |
| NRGU MicroSectors U.S. Big Oil 3 Leveraged ETN | 2× | — | +263.6% |
List of all oil & gas exploration & production ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | XOP SPDR S&P Oil & Gas Exploration & Production ETF | $2.91B | 0.35% | 1.56% | +60.5% | +59.0% | +16.3% |
| 2 | IEO iShares U.S. Oil & Gas Exploration & Production E… | $516.1M | 0.37% | 1.48% | +67.5% | +67.3% | +21.5% |
| 3 | GUSH Direxion Daily S&P Oil & Gas Exp. & Prod. Bull 2X… Leveraged | $248.0M | 0.94% | 0.96% | +129.7% | +120.6% | +14.9% |
| 4 | FTXN First Trust Nasdaq Oil & Gas ETF | $180.7M | 0.6% | 1.7% | +53.9% | +57.0% | +18.1% |
| 5 | DRIP Direxion Daily S&P Oil & Gas Exp. & Prod. Bear 2X… Inverse | $100.3M | 1.01% | 4.24% | -66.2% | -65.7% | -41.3% |
| 6 | PXE Invesco Energy Exploration & Production ETF | $84.7M | 0.63% | 1.4% | +59.8% | +57.9% | +19.3% |
| 7 | OILT Texas Capital Texas Oil Index ETF | $12.0M | 0.35% | 4.57% | +57.2% | +64.5% | — |
Questions investors ask about oil & gas exploration & production ETFs
What is the largest oil and gas exploration ETF?
SPDR's XOP is the largest, with about $2.9 billion in net assets. It launched on June 19, 2006, tracks an S&P index of US oil and gas exploration and production stocks, holds 51 companies and charges 0.35% a year. Next come iShares' IEO, at about $516 million, and Direxion's 2x leveraged GUSH, at about $248 million. With FTXN and DRIP, these five funds hold 97.6% of the group's assets.
What is the cheapest oil and gas ETF?
XOP and OILT tie for the lowest expense ratio, 0.35% a year, with IEO close behind at 0.37%. FTXN charges 0.60% and PXE 0.63%. The two cheapest differ greatly in size: XOP has about $2.9 billion in assets, while OILT, launched December 21, 2023, has about $12 million. The 2x funds cost more: the leveraged GUSH charges 0.94% and the inverse DRIP 1.01%.
XOP vs IEO: what's the difference?
The main difference is weighting. XOP spreads its money across 51 stocks, with 27.94% in its top 10 and Texas Pacific Land the largest holding at 3.17%. IEO's top 10 make up 71.26%, led by ConocoPhillips at 17.26%. Their assets overlap by 54.5%, and fees are close (0.35% vs 0.37%). In the year to October 27, 2026, IEO returned 67.3% and XOP 59%, and IEO's worst drop was smaller (16.3% vs 18.5%).
Do oil and gas ETFs pay dividends?
Yes. All six funds with yield data pay dividends, and their median yield was 1.56% as of October 27, 2026. FTXN yielded 1.7%, XOP 1.56%, IEO 1.48% and PXE 1.4%, while the small OILT showed 4.57%. A yield is a year of dividends divided by the share price. Oil and gas companies can cut payouts when energy prices fall, so these yields can change quickly.
Do oil and gas ETFs hold Exxon and Chevron?
Some do. FTXN holds ExxonMobil (7.1%) and Chevron (7.03%) among its five largest positions, and OILT's largest holding is Exxon Mobil at 7.35%. Chevron shows up in three of the seven funds with published holdings. XOP and IEO lean elsewhere: XOP's largest positions are Texas Pacific Land and PBF Energy, and IEO's are ConocoPhillips, Valero Energy and Marathon Petroleum. EOG Resources, held by five of the seven, is more common.
How many oil and gas exploration and production ETFs are there?
There are ten US-listed products in this group. Five are ordinary index ETFs that own the stocks: XOP, IEO, FTXN, PXE and OILT. Four are leveraged or inverse: Direxion's GUSH and DRIP ETFs and BMO's NRGU and NRGD notes. The tenth, UBS's USOI, is a covered-call note tied to crude oil rather than a basket of company stocks.
Is there a 3x oil and gas ETF?
Not as an ETF in this group, but there are 3x notes. BMO's NRGU and NRGD are exchange-traded notes (unsecured bank debt) whose names signal 3x and -3x exposure to big US oil stocks; in the year to October 27, 2026, they returned 263.6% and -87.4%. Direxion's GUSH and DRIP are ETFs that seek 2x and -2x an S&P index's move for a single day only. Partly because of that daily reset, GUSH's three-year return (13.2%) trailed the unleveraged XOP's (14.2%), which is why these work as short-term trading tools.
Is there a Vanguard oil and gas ETF?
No, not in this group. None of the ten exploration and production products here comes from Vanguard. They are issued by State Street (SPDR), iShares, Direxion, First Trust, Invesco, Texas Capital, BMO and UBS. For low fees, XOP and OILT, both at 0.35% a year, and IEO, at 0.37%, are worth comparing.
Is there a Vanguard, Fidelity or Schwab oil & gas exploration & production ETF?
No. None of the three offers a oil & gas exploration & production ETF. The largest oil & gas exploration & production ETFs come from SPDR (State Street) (XOP), iShares (IEO) and First Trust (FTXN), and customers of all three firms can buy other companies’ ETFs in their brokerage accounts. For a broader fund, VDE (Vanguard Energy ETF) and FENY (Fidelity MSCI Energy Index ETF) are covered in our energy ETF guide.
