FENY vs WEEI

FENYAFidelity MSCI Energy Index ETF

WEEIDWestwood Salient Enhanced Energy Income 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.

WEEI Most energy ETFs hand you the sector and stop there. WEEI is the active one: North American energy stocks with covered calls written on top, distributions paid monthly. The options overlay is the whole product, and you pay up for it.

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.

WEEI The actively managed ETF seeks current income and capital appreciation, investing primarily in equity securities of energy companies and normally at least 80% of net assets in those companies.

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.

• WEEI A rare setup in energy: an active manager picks the stocks, then writes calls against them, with income paid monthly. The big index peers deliver sector beta and nothing more.westwoodgroup.com
• Calls are written only against shares the fund already owns. The premium comes from capping upside on stock it holds, not from borrowed money or naked options.westwoodgroup.com
• Westwood states the call writing is meant to damp volatility and run a lower beta than the S&P Energy Select Sector Index, the yardstick most sector funds hug.westwoodgroup.com
• The active mandate lets managers roam upstream, midstream, downstream, services and integrateds, with at least 80% of net assets in energy companies.westwoodgroup.com

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.

• WEEI At 0.85% a year, one of the priciest tickets in the energy aisle. The cohort median is 0.45%, and index heavyweights XLE and FENY charge 0.08%.
• Covered calls swap upside for premium. When oil and gas names run hard, the shares with calls written on them get capped while plain sector funds keep climbing.westwoodgroup.com
• Westwood notes distributions may include return of capital, which can reduce NAV over time. The fund launched in 2024 and remains small, so the track record is short.westwoodgroup.com

Full FENY profile⁠

Full WEEI profile⁠