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.