4 Oil ETFs Riding the Crude Price Surge: What Investors Should Know

Key Points

• Top oil-focused ETFs have risen by 600% or more year to date as oil prices have skyrocketed amid the Iran war.
• Investors have a range of ETFs from which to choose in order to gain direct or indirect exposure to the space, with funds like UCO offering plays on oil futures and USOY generating income with options strategies based on a major oil commodity pool.
• Indirect exposure is also possible through funds like BWET, which focuses on oil freight futures, and DIG, which gives leveraged access to oil and gas stocks.

With the price of crude oil futures rising to the highest level in years amid the Iran war, investors may be looking to strategically shift their allocations to take advantage of the spike. While commodities trading or individual oil stocks are appealing to more active investors, others may look for exchange-traded funds (ETFs) that provide access to the space without the need for the same level of involvement.

The funds below provide different ways of gaining exposure to the rising price of oil. Keep in mind, however, that the space is experiencing significant volatility as a result of the geopolitical situation that continues to develop, so investors should not assume that ETFs necessarily carry a lower level of risk than other ways of accessing the oil and broader energy markets.

More than 600% Gains in 2026 With an Oil Freight Futures Strategy

Already one of the top-performing ETFs of 2026 prior to the start of the war, the Breakwave Tanker Shipping ETF NYSEARCA: BWET has now risen by more than 600% year-to-date (YTD).

The fund tracks an index that follows crude oil tanker freight rates via investments in futures contracts. This ETF has recently been boosted by a series of events that have caused the price of shipping oil to rise, from the end of winter and its concurrent increases in global demand to the United States' involvement in Venezuela and now the Iran war.

While BWET has already dominated nearly every other corner of the market in 2026, investors with a tolerance for the risk associated with a futures-focused ETF strategy may find that the price could increase even further if conflict in the Middle East continues to disrupt oil transport on a global scale. Investors pay handsomely for the fund's exposure to this market, though, as BWET has an expense ratio of 3.5%, as well as low asset levels and trading volumes that may make liquidity an issue.

A 2X Play on Crude Oil Futures May Appeal to Risk-Tolerant Bulls

Another oil fund with potential appeal for investors willing to accept a high degree of risk is the ProShares Ultra Bloomberg Crude Oil NYSEARCA: UCO. Tied to an index of crude oil futures contracts, UCO offers 2X daily leverage. As a leveraged fund, UCO is appropriate only for active investors willing to monitor the market closely and reset positions on a daily basis. This may make UCO most appropriate for those oil bulls anticipating a major one-day price movement upward for crude.

UCO is also costly compared to most ETFs, although with an expense ratio of 1.43%, it is significantly less expensive than BWET above.

It also enjoys strong trading volume, with a one-month average of nearly 18 million, which should help investors to be sure that they can easily move in and out of positions as the market changes.

USOY's Dividend Yield Shines, but Direct Oil Exposure Is Lacking

Investors seeking an income-generating fund linked to oil might look to the Defiance Oil Enhanced Options Income ETF NASDAQ: USOY, an actively managed ETF that uses options to generate gains based on the performance of another fund, the United States Oil Fund NYSEARCA: USO.

As such, USOY is not directly tied to the price of oil, but rather offers exposure to oil futures contracts indirectly via USO.

The dividend strategy pays off—USOY has a very high dividend yield of around 60%, which may more than make up for its fairly high expense ratio of 1.12%.

However, this ETF may not appeal to investors looking for a more direct way to benefit from increases in the price of oil, as its complex strategy is more removed than those of many other oil funds.

Another 2X Leveraged ETF, but With a Broader Focus on Oil and Gas Stocks

The ProShares Ultra Energy ETF NYSEARCA: DIG is, like UCO above, a 2X leveraged play. However, it takes as its target an index of oil and gas stocks, including about two dozen of the biggest names in the domestic energy space. While not directly tied to the price of oil, these stocks are nonetheless often closely linked to the underlying performance of related commodities.

Like UCO, DIG is designed for short-term investments to help investors maximize gains on days when the energy space performs exceptionally well. Thanks to its focus on energy stocks, some of which pay dividends, DIG offers a dividend yield of about 1.5%, which is an enticing bonus for investors primarily focused on day-to-day spikes in share prices. The fund also has the lowest annual fee of any on this list at 0.95%.