Explore the potential benefits and risks of investing in the Fidelity MSCI Energy Index ETF
These types of ETFs are gaining traction among both big institutions and everyday investors. Why? They’re low-cost, transparent, and flexible. Plus, they’re tax-efficient, making them great for long-term investing.
FENY focuses on the energy sector, which is one of the 16 sectors tracked by Zacks. Right now, it’s ranked 9th, putting it in the lower 44%. But don’t let that scare you off; it’s still a solid option.
The fund is backed by Fidelity and has over $1.56 billion in assets. That makes it one of the largest ETFs in the energy space. FENY aims to match the performance of the MSCI USA IMI Energy Index, which reflects the U.S. energy sector.
When picking an ETF, costs matter. FENY has an annual operating expense of just 0.08%, making it one of the cheapest options out there. Plus, it offers a 12-month trailing dividend yield of 2.86%.
One of the perks of ETFs is that they spread out your risk. FENY is heavily invested in the energy sector, with about 99.90% of its portfolio in that area. The biggest players in this fund are Exxon Mobil, Chevron, and ConocoPhillips, which together make up a significant chunk of the assets.
So far this year, FENY has gained about 6.63%, and it was up around 15.19% over the last year. It has a beta of 1.24, indicating it’s a bit riskier than the market. But with 109 holdings, it does a good job of diversifying risk.
FENY has a Zacks ETF Rank of 2, which means it’s a “Buy.” If you’re looking for energy sector exposure, it’s a great choice. There are other options too, like the Vanguard Energy ETF and the Energy Select Sector SPDR ETF, which have slightly higher expense ratios.
In summary, if you want to dive into the energy sector, FENY is worth considering. For more info on ETFs, check out Zacks ETF Center. They offer insights and updates that can help you make informed decisions.
