Should You Invest in the Fidelity MSCI Energy Index ETF (FENY)?

Launched on 10/21/2013, the Fidelity MSCI Energy Index ETF (FENY) is a passively managed exchange traded fund designed to provide a broad exposure to the Energy - Broad segment of the equity market.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.Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Energy - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 7, placing it in top 44%.Index DetailsThe fund is sponsored by Fidelity. It has amassed assets over $1.55 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.CostsCost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 2.22%.Sector Exposure and Top HoldingsETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many 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 23.11% 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 64.73% of total assets under management.Performance and RiskThe ETF has added about 4.49% so far this year and was up about 3.04% in the last one year (as of 03/18/2025). In that past 52-week period, it has traded between $23.09 and $26.91.The ETF has a beta of 1.19 and standard deviation of 26.02% 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.AlternativesFidelity MSCI Energy Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FENY is a great option for investors seeking exposure to the Energy ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.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 $7.82 billion in assets, Energy Select Sector SPDR ETF has $33.02 billion. VDE has an expense ratio of 0.09% and XLE charges 0.08%.Bottom LineTo 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.Want key ETF info delivered straight to your inbox?Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week.Get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report 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).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks