XLE vs ICLN: Head-to-Head Comparison
XLE vs ICLN: Energy Select Sector SPDR Fund has an expense ratio of 0.09% while iShares Global Clean Energy ETF charges 0.40%. XLE holds 23 securities vs ICLN's 100. 5-year returns: 14.20% vs 4.00%.
Last updated: April 2026
Energy
Quick Verdict
ICLN edges out XLE with a stronger Beginner Suitability Score (8 vs 7.5). It offers better overall characteristics for new investors.
Side-by-Side Comparison
| Metric | XLE | ICLN |
|---|---|---|
| Expense Ratio | 0.09% | 0.40% |
| AUM | $35.0B | $3.0B |
| Dividend Yield | 3.30% | 0.80% |
| Holdings | 23 | 100 |
| 1-Year Return | 9.50% | -10.00% |
| 5-Year Return (Ann.) | 14.20% | 4.00% |
| 10-Year Return (Ann.) | 5.50% | 6.00% |
| Beta | 1.12 | 1.25 |
| P/E Ratio | 13.5 | 28.5 |
XLE 5-year annualized return is 14.20% compared to ICLN's 4.00%. Over 10 years, XLE returned 5.50% vs ICLN's 6.00%.
View data table
| Period | XLE Return | ICLN Return |
|---|---|---|
| YTD | 1.80% | -5.00% |
| 1 Year | 9.50% | -10.00% |
| 3 Year | 18.50% | -15.00% |
| 5 Year | 14.20% | 4.00% |
| 10 Year | 5.50% | 6.00% |
Key Differences Between XLE and ICLN
XLE (Energy Select Sector SPDR Fund) is a energy sector fund managed by State Street Global Advisors. XLE holds the energy companies from the S&P 500, including major oil and gas producers, refiners, and energy equipment providers. It is the most popular way to get targeted exposure to the traditional energy sector. Beginners should understand that XLE is heavily tied to oil and gas prices, making it a cyclical investment that can deliver strong returns when energy prices rise but suffer during downturns.
ICLN (iShares Global Clean Energy ETF) is a clean energy fund managed by BlackRock. ICLN invests in companies worldwide that produce energy from solar, wind, and other renewable sources. It is one of the most popular clean energy ETFs, giving investors exposure to the global transition away from fossil fuels. The fund holds a mix of utility-scale renewable producers and clean energy technology firms across developed and emerging markets.
The most notable differences are in fees (0.09% vs 0.40%), number of holdings (23 vs 100), and 5-year returns (14.20% vs 4.00%).
XLE vs ICLN multi-factor comparison: XLE has a 0.09% expense ratio, 14.20% 5-year return, 23 holdings, 1.12 beta, and 3.30% yield. ICLN has 0.40% expense ratio, 4.00% 5-year return, 100 holdings, 1.25 beta, and 0.80% yield.
View data table
| Metric | XLE | ICLN |
|---|---|---|
| Expense Ratio | 0.09% | 0.40% |
| 5-Year Return | 14.20% | 4.00% |
| Holdings | 23 | 100 |
| Beta | 1.12 | 1.25 |
| Dividend Yield | 3.30% | 0.80% |
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Holdings Overlap Analysis
0%
Holdings Overlap
XLE and ICLN share only 0% of their top holdings. These funds are quite different, making them complementary choices if you want broader market coverage.
XLE and ICLN share 0% of their top holdings (low overlap). XLE has 23 total holdings and ICLN has 100.
View data table
| Metric | XLE | ICLN |
|---|---|---|
| Overlap | 0% | 0% |
| Unique Holdings | 100% | 100% |
| Total Holdings | 23 | 100 |
Cost Comparison Over Time
If you invest $10,000 and hold for 20 years (assuming 8% annual returns):
XLE
Fee cost: $771
ICLN
Fee cost: $3,334
Over 20 years, the fee difference amounts to $2,563 on a $10,000 investment. XLE saves you more in fees over time.
On a $10,000 investment over 20 years at 8% return, XLE (0.09% fee) grows to $45,839 while ICLN (0.40% fee) grows to $43,276. The fee difference costs $2,563.
View data table
| Year | XLE Value | ICLN Value |
|---|---|---|
| 0 | $10,000 | $10,000 |
| 5 | $14,632 | $14,423 |
| 10 | $21,410 | $20,803 |
| 15 | $31,327 | $30,004 |
| 20 | $45,839 | $43,276 |
Which One Should a Beginner Choose?
Choose XLE if: You want investors who want to overweight energy based on their outlook for oil and gas prices, income seekers attracted to the high dividends paid by profitable energy companies, tactical investors using energy as an inflation hedge during rising commodity price environments. It's managed by State Street Global Advisors with an expense ratio of 0.09%.
Choose ICLN if: You want investors with strong conviction in the long-term growth of renewable energy, those seeking thematic exposure to the global clean energy transition, growth-oriented investors willing to tolerate higher volatility for sector upside. It's managed by BlackRock with an expense ratio of 0.40%.
Can You Own Both XLE and ICLN?
Absolutely! With only 0% overlap, XLE and ICLN complement each other well. A simple portfolio might allocate 60% to one and 40% to the other, or you could pair them with a bond ETF like BND for a complete three-fund portfolio.
Frequently Asked Questions
Should I buy XLE or ICLN?▾
ICLN edges out XLE with a stronger Beginner Suitability Score (8 vs 7.5). It offers better overall characteristics for new investors. However, both are solid options. XLE is best for investors who want investors who want to overweight energy based on their outlook for oil and gas prices, while ICLN is better suited for investors with strong conviction in the long-term growth of renewable energy.
What is the difference between XLE and ICLN?▾
XLE (Energy Select Sector SPDR Fund) tracks energy sector investments with 23 holdings and a 0.09% expense ratio. ICLN (iShares Global Clean Energy ETF) focuses on clean energy with 100 holdings at 0.40%. Their top holdings overlap by 0%.
Can I own both XLE and ICLN?▾
Yes! With only 0% holdings overlap, XLE and ICLN complement each other well. Owning both gives you broader diversification.