What are the best Distillate ETFs?
4 min read
By Beqa Bumbeishvili, ETF Insider

What are the best Distillate ETFs?

If you're looking to invest in distillate ETFs, this article will guide you through some of the best options available in the market. Distillate ETFs offer investors exposure to a diverse range of companies involved in the distillate industry, making them an attractive choice for those seeking to capitalize on this sector's growth potential.

Understanding Real ETFs: Distillate US Fundamental Stability & Value ETF (DSTX, DSMC, DSTL)

Real ETFs focusing on the distillate sector are a specialized type of exchange-traded fund that offers investors exposure to the distillate industry. Distillate refers to refined petroleum products used for various applications, such as heating, transportation, and industrial uses. These real ETFs invest in companies involved in distillate production, distribution, or related services, providing a convenient way for investors to access this sector without the risks associated with individual stocks.

Comparing Real Distillate ETFs: DSTX vs. DSMC vs. DSTL

Among the notable real distillate ETFs, we have the Distillate US Fundamental Stability & Value ETF (DSTX), the Distillate US Midstream Energy ETF (DSMC), and the Distillate US Long/Short Equity ETF (DSTL). Each of these ETFs has a unique focus within the distillate sector.

DSTX aims to track the performance of a specific distillate index, investing in companies that display fundamental stability and value characteristics within the distillate industry.

DSMC, on the other hand, concentrates on companies involved in the midstream aspects of the distillate sector, encompassing transportation, storage, and logistics.

DSTL takes a long/short equity approach to the distillate industry, seeking to provide investors with both potential long-term growth opportunities and the ability to hedge against downside risks.

When comparing these real distillate ETFs, investors should carefully assess their investment objectives, risk tolerance, and desired level of exposure to the distillate sector. DSTX may suit those seeking stable value investments, while DSMC could be appealing to those focusing on the midstream aspects. DSTL may attract investors seeking a more nuanced approach with both long and short positions in the distillate industry.

 DSTL overlap What are the best Distillate ETFs? DSTL overlap What are the best Distillate ETFs?

Why Invest in Real Distillate ETFs?

Investing in real distillate ETFs can offer several advantages. Firstly, they provide investors with diversification within the energy sector, which can help mitigate the risks associated with individual stocks. Moreover, these ETFs provide exposure to an industry that continues to experience growth in response to increasing global energy demands. Real ETFs also offer liquidity, transparency, and cost-efficiency, making them accessible to a broad range of investors.

Factors to Consider When Choosing Real Distillate ETFs

Investors considering real distillate ETFs should carefully evaluate various factors. These include the expense ratio, liquidity, tracking error, and the underlying index methodology of each ETF. Historical performance and the reputation and expertise of the ETF issuer are also essential considerations. Additionally, investors should examine the holdings of each ETF to ensure they align with their specific investment goals and risk tolerance.

In conclusion, real distillate ETFs can be a valuable component of an investment portfolio, providing exposure to the distillate sector without the need for individual stock selection. However, before investing, it is crucial to conduct thorough research and due diligence to select the ETF that best aligns with your investment objectives and risk profile.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or provide any investment advisory services. Investors should conduct their research and seek professional advice before making investment decisions.

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  • What is the Distillate ETF?

    The term "Distillate ETF" is not specific to a particular ETF. It might refer to ETFs that focus on distillate products, such as oil and gasoline. However, without a specific Distillate ETF mentioned, it is difficult to provide precise information.

  • What are distillate products in the context of energy?

    Distillate products in the energy industry generally refer to refined petroleum products with higher boiling points than gasoline but lower boiling points than residual fuel oil. They include products like diesel fuel, heating oil, and jet fuel.

  • Are there any ETFs that specialize in distillate products?

    There are ETFs that focus on the energy sector, which may include companies involved in the production, refining, or distribution of distillate products. However, it is important to research and review the specific holdings and investment strategy of any ETF to determine if it aligns with your investment goals.

  • What factors should I consider when evaluating Distillate ETFs?

    When evaluating Distillate ETFs, consider factors such as the ETF's expense ratio, liquidity, underlying index or strategy, holdings diversification, performance history, and the expertise of the fund manager. Additionally, it is crucial to assess your own investment objectives, risk tolerance, and time horizon.

  • Can you provide examples of ETFs that focus on the energy sector?

    Some examples of ETFs that focus on the energy sector, which may have exposure to distillate products, include the Energy Select Sector SPDR Fund (XLE), Vanguard Energy ETF (VDE), iShares U.S. Energy ETF (IYE), and Fidelity MSCI Energy Index ETF (FENY). It's important to research each ETF to determine their specific holdings and investment strategies.