FENY vs IYE

FENYAFidelity MSCI Energy Index ETF

IYEBiShares U.S. Energy ETF

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.

IYE One of the first US sector ETFs, live since 2000. It tracks the energy corner of the Russell 1000, so mid-size drillers and refiners ride along with the oil majors, and index caps stop any one name from running the show.

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.

IYE The fund aims to follow an index made up of U.S. companies from the energy sector.

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.

• IYE Live since June 2000, one of the first wave of US sector ETFs. A billion-dollar fund, actively traded, paying quarterly.
• Index rules cap any single company at 22.5% and hold all 4.5%-plus names to 45% combined, so the majors cannot swallow the portfolio.ftserussell.comishares.com
• Built off the Russell 1000, so the roster reaches past the mega-cap majors into mid-size producers, refiners and pipeline owners.ishares.com
• Costs 0.37% a year, with no fee waiver propping that up, and that sits below the median fee in broad energy.

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.

• IYE 0.37% is several times what the big index rivals ask: XLE at 0.08%, FENY at 0.084%, VDE at 0.09%.
• About 40 holdings in oil and gas production and distribution, so a few giants drive the ride even with the index caps in place.ishares.com
• A single-sector fund that moves with oil and gas, which can mean sharper swings than a whole-market fund.ishares.com

Full FENY profile⁠

Full IYE profile⁠