FENY vs XLE

FENYAFidelity MSCI Energy Index ETF

XLEAState Street Energy Select Sector SPDR 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.

XLE The 1998 original and still the default way to trade US energy: XLE holds only the oil, gas and oilfield services names inside the S&P 500, capped-weighted, for 0.08% 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.

XLE The fund seeks to provide investment results that generally track the price and yield performance of the Energy Select Sector Index before expenses.

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.

• XLE 0.08% a year against a 0.45% median for broad energy funds. It ties the cheapest in its group (FENY) and undercuts VDE.
• Launched December 1998 as one of the first sector ETFs. Today a multi-billion-dollar fund and one of the most heavily traded in its category.
• Clean pure play: oil, gas and consumable fuels plus energy equipment and services drawn from the S&P 500. No utilities riding along.ssga.com
• Pays quarterly, and a deep listed options market sits around it for hedging or covered-call work.barchart.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.

• XLE A short roster by design, with the integrated majors carrying most of the weight. The index caps weights at each quarterly rebalance so no single stock runs away.spglobal.comssga.com
• Large-cap US only. Small caps, midstream partnerships and overseas majors sit outside the mandate; FENY and VDE cast a wider net.ssga.com
• One sector tied to one commodity complex: results move with crude and gas prices, in wider swings than a diversified index.ssga.com

Full FENY profile⁠

Full XLE profile⁠