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Bad News For ETFs: S&P Deals A Blow To Oil Services Stocks: (OIH)

TedTed
in The Bullpen
FYI: Already being hammered by declining oil prices, the trade war and investors shifting away from riskier assets, downgrades from a major ratings agency could be the next headwind faced by cap-weighted oil services exchange traded funds.

The VanEck Vectors Oil Services ETF OIH, -1.43% one of the largest ETFs tracking providers of oilfield services, plunged 8.48 percent last week, extending its month-to-date loss to 20.5 percent.

Late Friday, Standard & Poor's, one of the major ratings agencies, lowered its rating on Sclumberger Ltd. SLB, -1.31% while paring its outlook on Halliburton Co. HAL, -2.30%

Understanding why the S&P downgraded the aforementioned oil services giant is important to OIH investors is easy. The two stocks combined for 35.45 percent of the ETF's weight as of Friday, May 24, according to issuer data.
Regards,
Ted
https://www.marketwatch.com/story/bad-news-for-etfs-sp-deals-a-blow-to-oil-services-stocks-2019-05-26-1746425/print

M* Snapshot: OIH:
https://www.morningstar.com/etfs/ARCX/OIH/quote.html
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