FENY vs PSCE

FENYAFidelity MSCI Energy Index ETF

PSCEBInvesco S&P SmallCap 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.

PSCE Most energy ETFs are Exxon and Chevron wearing a trench coat. PSCE goes the other way: about 30 small-cap US energy names pulled from the S&P SmallCap 600, capped so no single driller runs the show, for 0.29% a year.

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.

PSCE The fund seeks to invest at least 90% of its assets in small-capitalization U.S. energy companies included in its underlying index.

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.

• PSCE Genuine small-cap exposure: at least 90% of assets sit in small-cap US energy companies from the S&P SmallCap 600, so the mega-cap majors never crowd out the drillers and service names.invesco.com
• The 0.29% fee sits below the 0.45% median for broad energy funds, though the index giants (XLE, FENY, VDE) run cheaper at 0.08% to 0.09%.
• Rules-based and hands-off: the index is reconstituted and rebalanced quarterly, and its caps stop any one holding from swallowing the portfolio.invesco.comaaii.com
• Trading since 2010, it has run through several oil booms and busts, and the portfolio build lands it in the upper half of its broad-energy peer group.

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.

• PSCE Concentrated by design: roughly 30 holdings in a non-diversified structure, so one company's earnings miss can move the whole fund.aaii.com
• Thinly traded with a modest asset base, so spreads can run wider than the mega-cap energy funds. Limit orders are the usual tool here.
• Small-cap energy is one of the market's rougher rides. These names swing hard with oil and gas prices, in both directions.invesco.com

Full FENY profile⁠

Full PSCE profile⁠