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Should You Invest in the Fidelity MSCI Energy Index ETF (FENY)?
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Looking for broad exposure to the Energy - Broad segment of the equity market? You should consider the Fidelity MSCI Energy Index ETF (FENY - Free Report) , 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.
Investor-friendly, sector ETFs provide many options 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 6, placing it in top 38%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $805.76 million, making it one of the larger 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.
MSCI USA IMI Energy 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 3.77%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 100% of the portfolio.
Looking at individual holdings, Exxon Mobil Corp Common Stock (XOM - Free Report) accounts for about 21.53% of total assets, followed by Chevron Corp Common Stock Usd.75 (CVX - Free Report) and Conocophillips Common Stock Usd.01 (COP - Free Report) .
The top 10 holdings account for about 69.21% of total assets under management.
Performance and Risk
The ETF return is roughly 31.13% and was up about 91.61% so far this year and in the past one year (as of 03/25/2021), respectively. FENY has traded between $7.20 and $14.52 during this last 52-week period.
The ETF has a beta of 1.82 and standard deviation of 39.28% for the trailing three-year period, making it a high risk choice in the space. With about 83 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Energy Index ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. FENY, then, is not the best option for investors seeking exposure to the Energy ETFs segment of the market. However, there are better ETFs in the space to consider.
Vanguard Energy ETF (VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $4.61 billion in assets, Energy Select Sector SPDR ETF has $21.97 billion. VDE has an expense ratio of 0.10% and XLE charges 0.12%.
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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Should You Invest in the Fidelity MSCI Energy Index ETF (FENY)?
Looking for broad exposure to the Energy - Broad segment of the equity market? You should consider the Fidelity MSCI Energy Index ETF (FENY - Free Report) , 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.
Investor-friendly, sector ETFs provide many options 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 6, placing it in top 38%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $805.76 million, making it one of the larger 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.
MSCI USA IMI Energy 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 3.77%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Energy sector--about 100% of the portfolio.
Looking at individual holdings, Exxon Mobil Corp Common Stock (XOM - Free Report) accounts for about 21.53% of total assets, followed by Chevron Corp Common Stock Usd.75 (CVX - Free Report) and Conocophillips Common Stock Usd.01 (COP - Free Report) .
The top 10 holdings account for about 69.21% of total assets under management.
Performance and Risk
The ETF return is roughly 31.13% and was up about 91.61% so far this year and in the past one year (as of 03/25/2021), respectively. FENY has traded between $7.20 and $14.52 during this last 52-week period.
The ETF has a beta of 1.82 and standard deviation of 39.28% for the trailing three-year period, making it a high risk choice in the space. With about 83 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Energy Index ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. FENY, then, is not the best option for investors seeking exposure to the Energy ETFs segment of the market. However, there are better ETFs in the space to consider.
Vanguard Energy ETF (VDE - Free Report) tracks MSCI US Investable Market Energy 25/50 Index and the Energy Select Sector SPDR ETF (XLE - Free Report) tracks Energy Select Sector Index. Vanguard Energy ETF has $4.61 billion in assets, Energy Select Sector SPDR ETF has $21.97 billion. VDE has an expense ratio of 0.10% and XLE charges 0.12%.
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.