PXI vs XLE

PXICInvesco Dorsey Wright Energy Momentum ETF

XLEAState Street Energy Select Sector SPDR ETF

In short

PXI Most energy ETFs rank holdings by size, so the majors sit on top. PXI ranks energy stocks by price strength and reshuffles quarterly. Fee: 0.60% net of a waiver through August 31, 2028.

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

PXI The fund seeks to track the Dynamic Energy Sector Intellidex Index by investing primarily in its constituent securities. The index selects energy companies using investment-merit criteria that include momentum measures.

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

• PXI Different engine: a relative-strength screen picks a minimum of 30 energy names, so leadership can shift toward refiners, midstream or services as price trends shift.nasdaqomx.com
• Trading since October 2006, which covers several full oil booms and busts. Long track records are rare among momentum-screened sector funds.
• A few dozen energy stocks, rebuilt on a published quarterly schedule rather than a manager's hunch.invesco.com
• The portfolio build is the strong part of the story, and the fund lands in the upper half of the broad energy group.

• 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

• PXI Costs 0.60% net of a waiver through August 31, 2028 (0.85% without it), above the energy category median. Plain index rivals XLE (0.08%) and VDE (0.09%) are far cheaper.
• Thinly traded with a modest asset base, so trading costs can matter more here than in the household-name energy funds.
• Momentum cuts both ways: the quarterly reshuffle buys what has been rising, and a concentrated energy-only book has no other sector to cushion a turn.

• 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 PXI profile⁠

Full XLE profile⁠