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

Last updated: March 2026Fidelity Energy

Expense Ratio

0.08%

AUM

$1.5B

Dividend Yield

3.20%

Inception

2013

Beginner Score

8.5/10

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

Expense Ratio0.08%
Total Holdings118
P/E Ratio12.5
Beta1.08
Dividend Yield3.20%
AUM$1.5B
Inception Year2013
IssuerFidelity

Top 10 Holdings in FENY

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

#CompanyTickerWeight
1Exxon Mobil Corp.XOM22.00%
2Chevron Corp.CVX14.00%
3ConocoPhillipsCOP7.00%
4EOG ResourcesEOG4.00%
5Schlumberger Ltd.SLB3.80%
6Marathon PetroleumMPC3.50%
7Phillips 66PSX3.20%
8Pioneer Natural ResourcesPXD3.00%
9Valero EnergyVLO2.80%
10Williams CompaniesWMB2.50%

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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:

YTD

1.00%

1 Year

5.00%

3 Year

15.00%

5 Year

10.00%

10 Year

4.00%

Beginner Suitability Score: 8.5/10

Great for Beginners

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.

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):

Monthly10 Years20 Years30 Years
$100/mo$18,417$59,295$150,030
$250/mo$46,041$148,237$375,074
$500/mo$92,083$296,474$750,148

*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.

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Pros and Cons of FENY

Pros

  • Cheapest energy sector ETF available at only 0.08% expense ratio
  • Generous dividend yield from cash-rich oil and gas companies
  • Provides a natural hedge against rising oil prices and inflation
  • Diversified across upstream, midstream, and downstream energy operations

Cons

  • Extremely sensitive to volatile oil and gas commodity price swings
  • Long-term energy transition to renewables poses a structural headwind
  • Top two holdings Exxon and Chevron represent over a third of the portfolio

Frequently Asked Questions

Is FENY a good ETF for beginners?

FENY has a Beginner Suitability Score of 8.5/10 on our scale. This makes it a strong choice for new investors due to its low fees and broad diversification.

What is the expense ratio of FENY?

FENY has an expense ratio of 0.08%. This means for every $10,000 you invest, you pay approximately $8 per year in fees. This is considered very low and cost-efficient.

How much money do I need to invest in FENY?

You can invest in FENY with as little as $1 through brokers that offer fractional shares (like Fidelity, Schwab, or Robinhood). There is no minimum investment required beyond the share price itself, which changes daily. Dollar cost averaging — investing a fixed amount regularly — is a popular strategy.

Does FENY pay dividends?

Yes, FENY pays dividends with a current yield of approximately 3.20%. Dividends are typically paid quarterly and can be reinvested automatically through most brokers.

What are the top holdings in FENY?

The top holdings in FENY include Exxon Mobil Corp. (22.00%), Chevron Corp. (14.00%), ConocoPhillips (7.00%), and more. The fund holds 118 total positions, providing broad diversification across many companies.