FENY vs USAI

FENYAFidelity MSCI Energy Index ETF

USAIDPacer American Energy Infrastructure 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.

USAI Skip the drillers. USAI owns the toll-booth end of energy: the pipelines, storage and processing assets that move hydrocarbons across the US and Canada, roughly 40 names, with cash paid out monthly.

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.

USAI The Fund seeks to track, before fees and expenses, the performance of the American Energy Infrastructure Index through a passive indexing strategy.

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.

• USAI Infrastructure, not exploration. The index targets the midstream assets that get paid to move and store energy, a different business than pumping it out of the ground.
• The mandate reaches into Canada as well as the US, so it picks up the big Canadian pipeline operators that US-only energy funds leave out.paceretfs.com
• Pays monthly, and it is a 1940 Act registered fund rather than a partnership, which sidesteps the K-1 paperwork attached to partnership-structured MLP vehicles.
• Rules-based and passive: it tracks the American Energy Infrastructure Index rather than leaving pipeline picks to a manager's judgment.

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.

• USAI At 0.75% a year, it costs well above the 0.45% typical for energy funds, and broad options like XLE and FENY run 0.08%. Narrow exposure carries a real price tag here.
• Thinly traded. Volume is light next to the big energy ETFs, so bid-ask spreads can widen, especially on large or fast orders.
• About 40 holdings in one slice of one sector. Pipeline economics, regulation and commodity swings drive the whole basket together.

Full FENY profile⁠

Full USAI profile⁠