Investors may want to keep an eye on beaten down oil names.

At the moment, oil prices are rebounding on news the International Energy Agency (IEA) raised its forecast for global oil demand.  In fact, the IEA hiked its 2022 oil demand growth estimate by 380,000 b/d to 2.1 million b/d, citing “soaring” oil use in power generation and gas-to-oil switching in industry prompted by the Ukraine crisis and surging gas price, as noted by S&P Global.

While investors can always invest in Exxon Mobil (XOM) and Chevron (CVX), ETFs offer a good deal of diversification at less cost.  Some of the top ones include:

SPDR Energy Select Sector ETF (XLE)

With an expense ratio of 0.12%, the XLE ETF provides exposure to companies in the oil, gas and consumable fuel, energy equipment and services industries, as noted by State Street SPDR. Not only does an ETF allow for diversification, you can buy it for less. 

For example, we can buy the SPDR Energy Select Sector ETF (XLE) for $55 a share.  If we were to buy 100 shares, it would cost us $5,500.  If we were to buy some of the fund’s top holdings individually, it would cost far more than that.

SPDR S&P Oil & Gas Exploration & Production ETF (XOP)

With an expense ratio of 0.35%, the ETF provides exposure to the oil and gas exploration and production segment of the S&P TMI, which comprises the following sub-industries: Integrated Oil & Gas, Oil & Gas Exploration & Production, and Oil & Gas Refining & Marketing, as noted by State Street SPDR.  

Some of its top holdings include Callon Petroleum, SM Energy Company, Devon Energy Corporation, EOG Resources, and ConocoPhillips, for example.

iShares Global Energy ETF (IXC)

The iShares Global Energy ETF seeks to track the investment results of an index composed of global equities in the energy sector. Trading at $27, some of its top holdings include Exxon Mobil, Chevron Corporation, BP PLC, Total SA, and EOG Resources.