Ongoing bullishness in the energy sector is benefiting a plethora of equity-based exchange traded funds, including familiar faces and new kids on the block.
Year-to-date, no sector ETF has taken in more new assets than the nearly $3 billion hauled in by the Energy Select Sector SPDR Fund (NYSEArca: XLE). XLE has retaken its spot as third-largest of the nine sector SPDRs, trailing only the Financial Select Sector SPDR (NYSEArca: XLF) and the Technology Select Sector SPDR (NYSEArca: XLK). [More Upside for Energy ETFs]
Some new energy ETFs are proving successful as well, including the Fidelity MSCI Energy Index ETF (NYSEArca: FENY). FENY is one of four Fidelity sector ETFs that as of the end of the May had over $100 million in assets under management.
FENY, which debuted in late October along with nine other sector offerings from the Massachusetts-based mutual fund giant, had $113.5 million in AUM as of May 31, according to issuer data.
Like the other Fidelity sector ETFs, FENY has an annual expense ratio of 0.12%. That makes it the lowest cost energy ETF and those costs are reduced further for Fidelity clients, which can trade FENY and the other ETFs on a commission-free basis. [Fidelity ETFs Off to Impressive Start]
As is the case with rivals such as XLE and the Vanguard Energy ETF (NYSEArca: VDE), FENY is heavily allocated to Dow components Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX), the two largest U.S. oil companies. XLE’s almost 28% combined weight to those stocks is large, but FENY goes further by allocating 32% of its combined weight Exxon and Chevron.
The rest of FENY’s top-10 lineup is comparable to its cap-weighted rivals with exposure to familiar energy giants such as Schlumberger (NYSE: SLB), ConocoPhillips (NYSE: COP), Occidental Petroleum (NYSE: OXY) and Anadarko (NYSE: APC), among others.
Three other Fidelity ETFs – the Fidelity MSCI Information Technology Index ETF (NYSEArca: FTEC), the Fidelity MSCI Health Care Index ETF (NYSEArca: FHLC) and the Fidelity MSCI Financials Index ETF (NYSEArca: FNCL) – also have more than $100 million in assets. The Fidelity MSCI Industrials Index ETF (NYSEArca: FIDU) could be the next Fidelity ETF to join the $100 million club as it had $96.6 million at the end of last month.
Fidelity MSCI Energy Index ETF
ETF Trends editorial team contributed to this post.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.