Equity: U.S. Energy

PSCE Top Performer Intra-day
Price $16.30
Today’s Change 2.07%
3:59pm 08/21/2018
XLE Bottom Performer Intra-day
Price $73.47
Today’s Change 0.51%
4:00pm 08/21/2018

ETF.com Insight

With 9 ETFs and over $24.25B in combined AUM, the Equity: U.S. Energy segment provides exposure to the U.S. space with a focus on Energy securities.

Year-to-date, the best-performing ETF in the segment is the First Trust Energy AlphaDEX Fund (FXN), with a total return of 5.34%. Meanwhile, the most popular ETF is the Energy Select Sector SPDR Fund (XLE) with $17.51BB in assets under management.

Investors should take a look at the Vanguard Energy ETF (VDE). This fund has been chosen as an Analyst Pick by FactSet, thus is the best ETF for the average investor. The Vanguard Energy ETF tracks a market-cap-weighted index of US energy companies. The index includes those companies deemed investable by MSCI and covers 98% of the market. VDE has an expense ratio of 0.10% and tracks the MSCI US Investable Market Energy 25/50 Index.

ETF.com Efficiency Insight

The average efficiency score in the Equity: U.S. Energy segment is 95 out of 100, with the Fidelity MSCI Energy Index ETF(FENY) obtaining the highest rating of 100 out of 100.

Costs dominate the discussion around efficiency. ETFs in the segment have an average expense ratio of 0.35% per year, with the Fidelity MSCI Energy Index ETF (FENY) having the lowest expense ratio, charging investors 0.08% yearly.

Investors should look for funds with tight tracking, such as the Vanguard Energy ETF (VDE), with a 12-month median tracking difference of -0.08%.

Tracking Difference (12 Month)

ETF.com Tradability Insight

The average tradability score in the Equity: U.S. Energy segment is 91 out of 100, with the iShares U.S. Energy ETF(IYE) obtaining the highest rating of 99 out of 100.

The Energy Select Sector SPDR Fund (XLE) is the undisputed segment leader when it comes to liquidity. The fund trades 972.78M in daily average volume. Investors should also find ample liquidity in the Vanguard Energy ETF (VDE), with $23.14M in daily dollar volume.

Use limit orders to trade funds such as the Invesco S&P SmallCap Energy ETF(PSCE), due to their double-digit market spreads.

ETF.com/ Block Liquidity

IYE
5
4
3
2
1
XLE
5
4
3
2
1
VDE
5
4
3
2
1
FENY
5
4
3
2
1
FXN
5
4
3
2
1
RYE
5
4
3
2
1
PXI
5
4
3
2
1
JHME
5
4
3
2
1
PSCE
5
4
3
2
1
This measurement shows how easy it is to trade 25,000 shares of each ETF.

ETF.com Fit Insight

The Thomson Reuters US Energy - Fossil Fuels has been selected as the index that most accurately represents the market in question. The benchmark has been selected by the ETF Analytics team at FactSet, according to a series of guidelines to ensure this index accurately captures its market.

Investors trying to match a broad market exposure should pay attention to IYE. This fund obtains a high Fit score and investors should capture market-like returns.

Other funds diverge from the market, by nature of their investment mandates; for example, PSCE follows a Vanilla strategy and obtains a low Fit score compared with our neutral benchmark.

Index Methodology