Exchange-traded funds (ETFs) have grown in prominence in recent years, in part due to their convenience and in part due to the growing belief that simply tracking a large index yields better results than relying on often expensive financial experts.
The war with Iran, initiated with a joint U.S.-Israeli bombing campaign of the Islamic Republic that started on February 28, has led to a surge in oil, natural gas, shipping, and fuel prices and, considering the complexities of the commodity and derivatives markets, brought fossil fuel ETFs into sharp focus.
Indeed, considering that oil companies can benefit from shortages in the short-term and are expected to gain access to Iranian fossil fuel fields, both their stocks and the funds tracking the black gold have enjoyed strong performance in recent weeks.
Under the circumstances, Finold examined the top oil-focused exchange-traded products investors are buying as gas prices soar amidst the escalating war in the Middle East.
United States Oil Fund LP (USO)
Building on the previous 2026 strong performance of the energy sector, the United States Oil Fund LP (USO) soared a remarkable 46.08% since the war against Iran started from its February 27 closing price of $81.95 to $119.71 at press time on March 9.
The fund, founded in 2006, is owned and operated by a company called United States Commodity Funds – and formerly known as Victoria Bay Asset Management – and attempts to track the price of West Texas Intermediate (WTI) Light Sweet Crude Oil.
WTI is a popular crude brand that has, so far, seen smaller price fluctuations than the world’s other top black gold standard, Brent, despite itself soaring since the bombs started flying.
The ETF’s expense ratio stands at 0.60%.
ProShares K-1 Free Crude Oil ETF (OILK)
ProShares K-1 Free Crude Oil ETF (OILK) investors have been major winners in the ongoing conflict in the Middle East due to the fund’s impressive rally since February 27.
Specifically, the ETF is up 26.25% in the last 30 days and 19.20% since the war started, having rallied from $43.33 at the last close ahead of the outbreak of hostilities to $51.65 at press time on March 9.
Much like USO, OILK tracks the performance of WTI crude and is designed to help investors gain exposure to the commodity without having to tackle the K-1 tax forms. Generally, the ETF buys oil futures using a wholly-owned subsidiary that is registered in the Cayman Islands.
The ETF’s expense ratio stands at 0.69%.
Invesco DB Oil Fund (DBO)
Though it also tracks the benchmark WTI standard, the Invesco DB Oil Fund (DBO) is an ETF focused on minimizing the impact of commodity price volatility.
Looking at its recent performance and press time price of $19.42, DBO is up 38.93% in the last 30 days and, having found itself at $14.44 in the afternoon of February 27, it rallied 34.49% since the war against Iran started.
Much like its other major peers, the ETF relies on oil futures for its strategy and boasts an expense ratio of 0.76%.
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