FENY: FIDELITY MSCI ENERGY INDEX ETF
ETF Education Report: Fidelity MSCI Energy Index ETF (FENY)
What this ETF is trying to do
The Fidelity MSCI Energy Index ETF (FENY) is designed to track the performance of companies in the energy sector. This includes large companies involved in oil, gas, and other energy resources. Based on its top holdings, the fund has significant exposure to major companies like ExxonMobil and Chevron.
What the numbers show
When looking at an ETF, it is important to understand two different types of returns: price return and total return.
• Price Return: This measures only the change in the share price. For FENY, the one-year price return was approximately 41.91%. The year-to-date (YTD) price return was approximately 41.34%.
• Total Return: This includes the share price change plus any cash distributions (dividends) paid out to investors. The one-year total return was approximately 45.67%, and the YTD total return was approximately 43.98%.
Over a longer period, the three-year total return was approximately 63.22%, and the five-year total return was approximately 170.38%.
To visualize the price change, we can look at an estimated price from roughly one year ago, which was $24.67. The current price is $35.01.
Income and distribution explanation
Some investors look for ETFs that pay out cash regularly. This is called the distribution yield. FENY has a distribution yield of approximately 2.25%. This means the ETF paid out about $0.79 per share in trailing distributions over the last year. These payments usually happen quarterly, and there were 4 payouts in the last 12 months.
NAV erosion explanation
"NAV erosion" refers to a situation where the value of the underlying assets in the fund decreases significantly over time. It is important to note that a falling share price does not always mean NAV erosion is happening. For this ETF, the erosion-risk score is 100, and the label indicates "No price erosion detected." There is no severe erosion-risk flag for this fund.
Top Holdings
The following are the top holdings in this ETF (note that this list is partial):
• ExxonMobil Holdings Corp (22.15%)
• Chevron Corp (14.45%)
• ConocoPhillips (6.01%)
• Marathon Petroleum Corp (4.52%)
• Valero Energy Corp (4.48%)
• Phillips 66 (3.94%)
• Williams Companies Inc (3.18%)
• EOG Resources Inc (2.90%)
• SLB Ltd (2.88%)
• Targa Resources Corp (2.25%)
Pros
• The fund has shown strong total returns over the one-year, three-year, and five-year periods.
• The erosion-risk measurement is rated as "good."
Cons
• The fund's performance is tied to the energy sector, which can be volatile.
Beginner takeaway
When studying FENY, remember that the price return and total return are different numbers. The total return is often higher because it includes the cash distributions paid to you. Always look at both the share price movement and the distribution yield to get a full picture of how an ETF is performing.
Top Holdings
Structured portfolio holdings supplied by the ETF data provider. These figures are not generated by the AI article.
| # | Holding | Ticker | Weight |
|---|---|---|---|
| 1 | EXXONMOBIL HOLDINGS CORP | XOM | 22.15% |
| 2 | CHEVRON CORP | CVX | 14.45% |
| 3 | CONOCOPHILLIPS | COP | 6.01% |
| 4 | MARATHON PETROLEUM CORP | MPC | 4.52% |
| 5 | VALERO ENERGY CORP | VLO | 4.48% |
| 6 | PHILLIPS 66 | PSX | 3.94% |
| 7 | WILLIAMS COMPANIES INC | WMB | 3.18% |
| 8 | EOG RESOURCES INC | EOG | 2.90% |
| 9 | SLB LTD | SLB | 2.88% |
| 10 | TARGA RESOURCES CORP | TRGP | 2.25% |