What is the difference between FENY and VDE regarding their expense ratios?

FENY (Fidelity Energy ETF) has an expense ratio of 0.08%, while VDE (Vanguard Energy ETF) has a slightly higher expense ratio of 0.09%. This 0.01 percentage point difference means that for every £100 invested, FENY charges 8 pence annually, and VDE charges 9 pence. While the difference is minimal, understanding expense ratios is crucial as these fees are deducted from fund assets and can impact long-term net returns. Both funds remain highly cost-efficient compared to many other ETFs in the energy sector.

Why is the 'Index tracked' field marked as not available for both funds?

For both FENY and VDE, the 'Index tracked' field is marked as not available in the provided data. This typically occurs when specific index methodology details are not publicly disclosed or indexed differently across data providers. It does not imply poor performance but may limit transparency for investors trying to benchmark exact replication methods. Since both are energy sector ETFs, they aim to mirror the broader energy market, yet the lack of index visibility makes direct methodology comparison difficult for beginner investors seeking precise tracking clarity.

How do inception dates influence the evaluation of these ETFs?

VDE was established on 23 September 2004, offering a longer track record of over two decades. FENY, launched on 24 October 2013, has a shorter history of approximately twelve years. A longer inception date allows investors to observe performance through more market cycles, such as the 2008 financial crisis and energy price fluctuations of the 2010s. While past performance does not guarantee future results, VDE’s extended history provides more data points for assessing volatility and consistency compared to FENY’s more recent operational record.

How similar are the top holdings between FENY and VDE?

Both FENY and VDE exhibit significant holdings overlap. Their top holdings include Exxon Mobil (XOM) and Chevron (CVX), which are the largest positions in both funds. Additionally, they share nine of their top ten holdings: XOM, CVX, COP, MPC, VLO, PSX, WMB, EOG, and SLB. This high concentration means both ETFs provide nearly identical exposure to major integrated oil companies and natural gas producers. Investors should note that this overlap suggests choosing one over the other based on holdings alone may not significantly diversify their energy exposure.

What are the dividend yields for FENY and VDE, and how do they compare?

FENY has a dividend yield of 2.32%, while VDE offers a nearly identical yield of 2.33%. These yields indicate the annual income generated relative to the share price, assuming distributions are paid out. Since both funds invest in established energy companies with consistent dividend policies, their yields are closely aligned. The minor difference is negligible for income-focused investors. Both funds distribute dividends periodically, and the yield reflects the aggregated dividends from their respective underlying holdings, providing a modest income stream alongside potential capital appreciation.

How does net asset size impact liquidity in these ETFs?

VDE has substantial net assets of $10.9 billion, ensuring very strong liquidity and easier trading with potentially tighter bid-ask spreads. FENY holds $2.1 billion, which is significant but smaller than VDE. Larger fund sizes generally attract more institutional activity, enhancing day-to-day tradability. While FENY offers reasonable liquidity, VDE’s larger asset base might provide slightly better execution for large trades. However, for typical retail investors, both funds are sufficiently liquid to buy or sell shares on exchange without major impact on price, making size a secondary differentiator.

How does the concentration in top holdings affect risk for these energy ETFs?

Both FENY and VDE have high concentration in their top two holdings, Exxon Mobil and Chevron, which exceed 36% and roughly 35% respectively. This means a significant portion of each fund’s performance relies on the stock movements of these two giants. While this concentration aligns with the market-cap weighting of the energy sector, it introduces specific company risk. An adverse event affecting XOM or CVX could disproportionately impact both funds. Investors should be aware that energy sector ETFs are not equally weighted and are heavily influenced by a few large players.

What exposure does each fund provide to the broader energy market?

Both funds provide broad exposure to the US energy sector, including companies involved in oil and gas exploration, production, refining, and distribution. Given their shared top holdings, they track similar market segments. FENY and VDE offer access to large-cap integrated energy firms as well as midstream and drilling companies. Since both are equity energy ETFs, their performance is closely tied to crude oil and natural gas prices. The primary difference lies in issuer management and minor variations in holding weights, but the underlying market exposure remains largely comparable for sector-based investing.

Which ETF might suit an investor focused on long-term stability versus cost efficiency?

An investor prioritizing long-term stability and issuer reputation might lean towards VDE due to its longer track record since 2004 and Vanguard’s established presence. Conversely, an investor focused strictly on cost efficiency might prefer FENY for its marginally lower expense ratio of 0.08% versus 0.09%. However, the fee difference is minimal over time. Both funds are well-suited for a core energy allocation. The choice often comes down to personal preference for the issuer or platform availability, as their holdings, yields, and overall risk profiles are remarkably similar in the current market environment.

Are there any significant differences in how distributions are handled?

The provided data does not specify distinct distribution frequencies or mechanisms for FENY versus VDE, but both are standard ETFs that typically distribute dividends quarterly. The yields of 2.32% for FENY and 2.33% for VDE suggest comparable income generation. Investors should check the issuer’s website for exact payment dates and reinvestment options. Both funds pass through dividends received from underlying companies. Reinvestment options, such as DRIP, depend on the brokerage used rather than the ETF itself. Therefore, distribution handling is likely similar, offering modest, regular income to holders.

Important educational disclaimer regarding this ETF comparison.

This comparison is for educational purposes only and does not constitute financial advice. It is based on data from Yahoo Finance fetched on 22 September 2026. Figures such as expense ratios, net assets, and holdings may change over time. Investing in the stock market involves risk, including possible loss of principal. You should conduct your own research or consult a qualified financial advisor before making any investment decisions. Past performance is not indicative of future results. This content aims to help beginners understand how to interpret ETF data, not to recommend buying or selling specific funds.

FENY vs VDE

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares FENY (Fidelity Energy ETF) and VDE (Vanguard Energy ETF) by examining fees, holdings, dividends and how each fund tracks its market. Note that expense ratios are 0.08% for FENY and 0.09% for VDE. Both funds exhibit similar top holdings, such as XOM and CVX. Educational content, not financial advice.

Fund Snapshot

Key Fund Metrics

FENY

Metric

VDE

0.08%

Expense Ratio

0.09%

2.32%

Dividend Yield

2.33%

$2.14B

Net Assets

$10.94B

106

Holdings

117

Oct 24, 2013

Inception Date

Sep 23, 2004

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Index Tracked

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Equity Energy

Fund Category

Equity Energy

FENY costs about $1.00 less per year for every $10,000 invested.

Shared Top Holdings

Holding	FENY	VDE
XOMExxonMobil Holdings Corporation	22.03%	21.82%
CVXChevron Corporation	14.37%	14.03%
COPConocoPhillips	6.01%	5.99%
MPCMarathon Petroleum Corporation	4.58%	4.06%
VLOValero Energy Corporation	4.56%	3.98%
PSXPhillips 66	4.06%	3.67%
WMBThe Williams Companies, Inc.	3.21%	3.36%
EOGEOG Resources, Inc.	2.89%	2.89%
SLBSLB N.V.	2.85%	3.36%

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Investment Analysis

FENY

Pros

Low expense ratio of 0.08% supports cost efficiency.
Substantial net assets of $2.1 billion aid liquidity.
Reasonable dividend yield of 2.32% enhances income appeal.

Considerations

High concentration with Exxon Mobil and Chevron exceeding 36% combined.
Index tracked is not available, limiting transparency.
Moderate fund size compared to larger energy competitors.

VDE

Pros

High net assets of $10.9 billion ensure strong liquidity.
Established inception date of 2004 offers a longer track record.
Vanguard's issuer reputation supports operational stability and investor trust.

Considerations

Slightly higher expense ratio of 0.09% compared to FENY.
Index tracked is not available, reducing methodology transparency.
Similar high concentration in top two holdings to FENY.

About FENY and VDE

FENY (FENY)

The Fidelity Energy ETF, traded under the ticker FENY, offers investors targeted exposure to the global energy sector. As an exchange-traded fund managed by Fidelity Covington Trust, it aims to track the performance of a broad energy index, encompassing over 100 holdings. With a remarkably low expense ratio of just 0.08%, it provides a cost-efficient way to diversify within the energy industry, covering sub-sectors like oil, gas, and consumable fuels. Established in 2013, the fund has accumulated significant net assets, currently standing at approximately USD 2.14 billion. It provides a dividend yield of around 2.32%, offering potential income alongside capital appreciation. This ETF is designed for those seeking to understand the dynamics of the energy market, balancing the potential for growth in a vital global industry with the inherent volatility that often accompanies commodity-linked sectors. Investors should remember that capital is at risk and values can fall.

VDE (VDE)

The Vanguard Energy ETF offers investors diversified exposure to the global energy sector. As a passively managed fund, it aims to track the performance of a broad energy industry benchmark by holding shares in leading energy companies worldwide. With an impressive low expense ratio of 0.09%, this fund provides a cost-effective way to gain sector-specific exposure while keeping fees minimal. Recent verified data highlights its strong position with USD 10.94 billion in net assets and 117 holdings, ensuring breadth and diversification within the energy space. It currently offers a competitive dividend yield of 2.33%, making it attractive for those looking to generate steady income alongside potential capital growth. Established in September 2004, this fund has a long track record, providing investors with a familiar tool to navigate the evolving energy landscape, from traditional resources to the energy transition.

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FENY vs VDE

Fund Snapshot