Looking for broad exposure to the Energy - Broad segment of the equity market? You should consider the Fidelity MSCI Energy Index ETF (FENY), a passively managed exchange traded fund launched on 10/21/2013.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 16, placing it in bottom 0%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $1.37 billion, making it one of the largest ETFs attempting to match the performance of the Energy - Broad segment of the equity market. FENY seeks to match the performance of the MSCI USA IMI Energy Index before fees and expenses.
The MSCI USA IMI Energy 25/50 Index represents the performance of the energy sector in the U.S. equity market.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.
Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.
It has a 12-month trailing dividend yield of 3.28%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 99.90% of the portfolio.
Looking at individual holdings, Exxon Mobil Corp Common Stock (XOM) accounts for about 23.85% of total assets, followed by Chevron Corp Common Stock Usd.75 (CVX) and Conocophillips Common Stock Usd.01 (COP).
The top 10 holdings account for about 65.56% of total assets under management.
Performance and Risk
So far this year, FENY has lost about -4.45%, and is down about -9.74% in the last one year (as of 05/22/2025). During this past 52-week period, the fund has traded between $20.83 and $26.91.
The ETF has a beta of 0.77 and standard deviation of 26.47% for the trailing three-year period, making it a high risk choice in the space. With about 111 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Energy Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FENY is a reasonable option for those seeking exposure to the Energy ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Energy ETF (VDE) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE) tracks Energy Select Sector Index. Vanguard Energy ETF has $6.79 billion in assets, Energy Select Sector SPDR ETF has $26.81 billion. VDE has an expense ratio of 0.09% and XLE charges 0.08%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Fidelity MSCI Energy Index ETF (FENY): ETF Research Reports Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis Report Energy Select Sector SPDR ETF (XLE): ETF Research Reports Vanguard Energy ETF (VDE): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).
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