FENY vs FXN

FENYAFidelity MSCI Energy Index ETF

FXNCFirst Trust Energy AlphaDEX Fund

In short

FENY One of the cheapest ways to own U.S. energy: 0.08% a year for roughly 110 energy stocks tracked through MSCI's full-market benchmark. No stock picking, no clever tilts, just the sector at cost.

FXN Energy exposure without the two-giant problem. FXN ranks Russell 1000 energy names on growth and value marks, keeps the best scorers, and tier-weights about 40 of them so smaller drillers carry real weight. Running since 2007.

Stated mandate

FENY Seeks investment returns that generally correspond, before fees and expenses, to the performance of the MSCI USA IMI Energy 25/50 Index. The fund invests at least 80% of assets in securities included in that index and uses representative sampling.

FXN The Fund seeks to track before expenses the price and yield of the StrataQuant® Energy Index, an enhanced index using the AlphaDEX® methodology to select energy-sector stocks.

Why people hold it

• FENY Costs 0.08% a year against a 0.45% median for broad energy funds. Only XLE matches it; VDE, IYE and ENFR all charge more.
• Tracks MSCI's USA IMI energy benchmark, a full-market read on the sector, so the basket runs roughly 110 names deep rather than a short list.
• Returns have lined up closely with the index it follows, and it trades actively. As implementations of broad energy go, this is one of the tidiest in the group.
• Running since 2013, so it has a long record through both oil booms and busts, and Fidelity has kept it plain vanilla the whole way.

• FXN Rules do the picking: stocks are scored on growth marks (3, 6 and 12-month price moves, sales to price, sales growth) and value marks, then sorted into quintiles by score.nyse.comftportfolios.com
• Weighting is tiered, not cap-driven: the top-scoring quintile takes a third of the index, equal-weighted within tiers, so about 40 names share the load instead of two giants.nyse.com
• A 2007 launch means this strategy has run through multiple oil booms and busts, and shares change hands actively. Pays quarterly.

Worth knowing

• FENY One sector, one country. Oil and gas prices set the mood here, and the swings run wider than a total-market fund's.
• The index weights by company size, so even with roughly 110 holdings a handful of giants carry most of the load.
• Distributions land quarterly, not monthly, which matters if you are pacing income.

• FXN At 0.63% a year, it charges roughly double the median factor fund in its peer group. That is the price of the quant screen.
• The index reconstitutes and rebalances quarterly, which the fund's prospectus notes can push portfolio turnover higher.otcmarkets.comnyse.com
• One sector, concentrated by design: energy prices and drilling budgets drive results, with no cushion from other parts of the market.ftportfolios.com

Full FENY profile⁠

Full FXN profile⁠