Fidelity MSCI Energy Index ETF (FENY): Complete Beginner's Guide

What is Fidelity MSCI Energy Index ETF?

FENY provides low-cost exposure to U.S. energy companies, including oil and gas producers, refiners, and pipeline operators. Energy stocks can deliver strong returns when commodity prices rise but can also be quite volatile. This fund suits investors who want targeted energy sector access at one of the lowest fees in the industry.

FENY is managed by Fidelity and has been available since 2013. With $1.5B in assets under management, it's a growing fund that has attracted significant investor interest. The fund charges an expense ratio of 0.08%, which means for every $10,000 you invest, you pay approximately $8 per year in management fees.

FENY at a Glance — Key Metrics

Top 10 Holdings in FENY

FENY holds 118 different securities. Here are the largest positions that make up the core of this fund:

FENY Performance History

Here's how FENY has performed over different time periods. Remember that past performance doesn't guarantee future results, but it gives you a sense of the fund's track record:

Beginner Suitability Score: 8.5/10

Our proprietary Beginner Suitability Score evaluates ETFs based on five factors that matter most to new investors: fees, volatility, diversification, dividend history, and track record length.

FENY scores 8.5/10 because it has very low fees, can be more volatile than the broader market, offers broad diversification across 118 holdings, and has been available since 2013, giving it a proven track record.

How to Buy FENY — Step by Step

1. Open a brokerage account — We recommend Fidelity, Charles Schwab, or Vanguard for ETF investing. All offer $0 commissions on ETF trades.
2. Fund your account — Transfer money from your bank. You can start with as little as $1 if your broker offers fractional shares.
3. Search for "FENY" — Use the search bar in your brokerage platform to find Fidelity MSCI Energy Index ETF.
4. Place your order — Choose "Market Order" for simplicity or "Limit Order" if you want to set a specific price. Enter how many shares (or dollar amount) you want to buy.
5. Set up automatic investing — Most brokers let you schedule recurring purchases (e.g., $100/month on the 1st). This is dollar cost averaging in action.

FENY Sector Allocation

Here's how FENY distributes its investments across different sectors of the economy:

Dollar Cost Averaging Into FENY

Here's what consistent monthly investing could look like over time, assuming an average annual return of 8% (approximate historical stock market average):

*Projections assume 8% average annual return with monthly compounding. Actual returns will vary. Past performance doesn't guarantee future results.

Fee impact: With FENY's expense ratio of 0.08%, a $10,000 investment would lose approximately $686 to fees over 20 years compared to a zero-fee investment. This is a reasonable fee level for the value provided.

Pros and Cons of FENY

Frequently Asked Questions