Top 10 Oil ETFs to Watch in 2026

Oil is once again at the centre of global markets in 2026. Rising tensions around the Iran-U.S. conflict, along with continued uncertainty over supply, have pushed crude back into focus. 

For investors looking to position around this volatility, an oil ETF can offer a relatively accessible route to exposure. But not all oil ETFs provide the same type of exposure. Some track front-month crude futures, some spread exposure across the futures curve, and others hold energy equities whose performance may diverge meaningfully from spot oil. 

In this guide, we look at the top 10 oil ETFs to watch in 2026 and, more importantly, the structural differences that can affect tracking, volatility, risk profile, and use case. 

The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.

What is an Oil ETF? 

An oil ETF is a listed fund that provides exposure to oil without requiring direct participation in commodity markets.  

These funds may provide exposure either through crude futures or through listed energy companies, and that distinction is central to how they behave.  

Futures-based funds typically track short-term oil moves more closely, while equity-based products such as an oil producer ETF, oil company ETF, or oil refinery ETF may also be influenced by margins, balance-sheet quality, and broader equity market sentiment. 

Types of Oil ETFs 

List of Top Oil ETFs to Watch Out for in 2026 

Here is a quick list of some of the top oil ETFs in 2026. Remember that returns, AUM and overall performance can be useful reference points, but they do not by themselves indicate how closely a fund reflects oil prices.

*Data as on 9 April 2026. For informational purposes only. Past performance is not a reliable indicator of future results, or future performance. 

A Deep Dive Into 3 Popular Oil ETFs 

Let's delve deeper and take a look at three popular ones from the above oil ETFlist. 

1. State Street Energy Select Sector SPDR ETF (XLE)

State Street Energy Select Sector SPDR ETF (XLE) is a NYSE Arca-listed ETF that tracks the performance of Energy Select Sector Index, giving investors exposure to large U.S. energy companies in the S&P 500. It is an energy equities ETF, not a direct crude oil fund, so it aims to provide indirect exposure to oil through oil company shares rather than through oil prices themselves. This composition makes XLE a commonly referenced oil company ETF and often cited as the largest oil ETF by assets under management. 

The portfolio is concentrated in established industry leaders, with Exxon Mobil and Chevron typically making up a large share of holdings. Most of the fund is allocated to oil, gas, and consumable fuels, with a smaller portion in energy equipment and services.  

Because of this structure, XLE tends to reflect broader energy-sector conditions, including oil prices, corporate earnings, and macroeconomic trends.  

Among the oil ETF list, the fund has the lowest expense ratio and the largest AUM, along with relatively stable performance over the past five years. 

2. iShares Global Energy ETF (IXC)

iShares Global Energy ETF (IXC) is also a NYSE Arca-listed oil and gas ETF that tracks a global index of energy companies. Like XLE, it offers indirect exposure to oil through equities, but with an international footprint rather than a U.S.-only focus. 

The fund typically holds around 60 to 70 large energy companies from different markets, including names such as Exxon Mobil, Chevron, Shell, and TotalEnergies, alongside pipeline and infrastructure firms like Enbridge. This gives investors exposure across upstream, midstream, and integrated energy businesses.  

Its main appeal is global diversification, making it a useful option for investors who want energy exposure beyond the U.S. market.  

The ETF has delivered around 130% returns over the past five years and carries an expense ratio of 0.40%, placing it as a relatively balanced option within the indirect oil ETF category. 

3. ProSharesUltra Bloomberg Crude Oil (UCO)  

ProShares Ultra Bloomberg Crude Oil (UCO) is very different from XLE and IXC. It is a 2x leveraged crude oil ETF that seeks to deliver 2x the daily performance of the Bloomberg Commodity Balanced WTI Crude Oil Index.  

Instead of holding energy company shares, it gains exposure through futures and swaps linked to crude oil, so it is designed for direct oil-price exposure rather than equity exposure. 

Because UCO is an oil leveraged ETF, daily moves are amplified by 2x. For example, if the underlying index rises 5% in a day, UCO is designed to gain about 10% before fees and expenses; if the index falls 5%, losses are magnified in the same way. 

There is also an UltraShort counterpart of this fund, ProShares UltraShort Bloomberg Crude Oil (SCO), which is an inverse leverage ETF and seeks -2x the daily performance of the same index. It is intended for investors who want to benefit from falling oil futures prices or potentially hedge against an expected decline in the oil market. 

Important Points to Look at Before Selecting an Oil ETF 

Past performance and fund size is what investors often check, but they only show part of the picture. Before selecting an oil ETF, it is worth looking a little deeper at how the fund is structured, as some of these details can make a meaningful difference over time. 

1. Understand the Underlying Exposure

An “oil ETF” does not always mean the same thing. Some funds track crude oil futures directly; others are more indirect and track energy stocks or related themes. 

This matters because the underlying exposure determines whether the product behaves more like a commodity instrument, a sector equity allocation, or something in between.  

2. Pay Attention to Futures Rollover Structure 

Oil futures ETFs do not track oil prices perfectly. Rollover methodology can make a significant difference. Front-month funds are often more sensitive to contango and backwardation, while longer-dated rollover strategies may reduce roll drag but also may become less responsive to short-term spot moves. 

3. Check if it’s Leveraged or Inverse 

Leveraged and crude oil inverse ETFs are generally trading tools rather than passive exposure vehicles. The daily reset mechanism can have a meaningful effect on holding-period returns, particularly when positions are maintained beyond the short term. 

How to Invest in Oil ETFs 

With Admirals, you can trade and invest in numerous oil stocks and oil exchange-traded funds from all around the world, with the following commissions: 

• UK stocks and ETFs – 0.1% of trade value, 1 GBP minimum commission. 
• US stocks and ETFs – From $0.02 per share, 1 USD minimum commission. 
• France/Germany stocks and ETFs - 0.1% of trade value, 1 EUR minimum commission. 

You can learn more about trading and investing commissions on the Admirals Contract Specification page. You can search for global stocks and ETFs from the MT5 web platform.  

How to Invest in an Oil ETF from the UK 

Whilst UK investors can invest in oil and gas equity ETFs, such as the iShares Oil & Gas Exploration & Production UCITS ETF, UCITS diversification rules prohibit single commodity ETFs in the UK and EU. However, UK investors can still gain direct exposure to oil prices using oil ETCs (Exchange-Traded Commodities), which is often the closest alternative to an oil ETF UK investors can access. 

Here’s how to buy Oil ETFs in four steps: 

1. Open an account with Admirals and complete the onboarding process. 
2. Click on Trade on one of your live or demo trading accounts to open the web platform. 
3. Search for your symbol at the top of the search window. 
4. Click Create New Order in the bottom window to open a trading ticket to input your trade size, stop loss and take profit level. 

The Bottom Line on Oil ETFs 

Investing in the Top oil ETFs provides loose exposure to the performance of oil and oil companies. Some funds focus on purchasing the stocks of oil companies while some invest in oil futures contracts. By investing in oil crude ETFs, investors can diversify their portfolios. It is important to note, that the oil market is extremely volatile. Therefore, proper risk management is essential.   

Other articles you may find interesting:  

• How to Trade Crude Oil CFDs 
• 6 Oil Stocks to Watch 
• ETFs vs Mutual Funds 

Frequently Asked Questions on Oil ETFs 

About Admirals

Admirals is a multi-award-winning, regulated Forex and CFD broker, offering trading on over 8,000 financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5.