The VanEck Vectors Unconventional Oil & Gas ETF (FRAK), which has a 0.54 percent expense ratio, has gained 5.6 percent in 2018, trailing the IEO and XOP funds cited earlier. That’s because those funds also have exposure to energy refining firms, which have sharply surged in value this year. The VanEck fund is more of a pure play on E&P.  

In light of the rapidly changing profit trends in place in this industry, a more proactive ETF approach could be the key to outsized gains. The Invesco Dynamic Energy Exploration & Production ETF (PXE) has risen 14.4 percent this year, the best showing among the funds mentioned here.

This ETF, which carries a hefty 0.88 percent expense ratio, employs a factor-based index that emphasizes price momentum, earnings momentum, quality, management action and value.

As Garcia from OppenheimerFunds noted earlier, the ongoing investments in production automation should help drillers to continue to expand profit margins. Even if oil prices stay flat, lowered cost structures portend continued income gains and higher trading prices for these ETFs.

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