Fidelity® MSCI Energy Index ETF (FENY)FENY

US ETF Fidelity® MSCI Energy Index ETF Summary

Profile:

The Fidelity® MSCI Energy Index ETF (FENY) is an exchange-traded fund that tracks the performance of the MSCI US Investable Market Energy 25/50 Index. This index represents the performance of the large-, mid-, and small-cap segments of the U.S. energy sector. FENY offers investors a diversified and efficient way to gain exposure to the energy market.

Objective:

The primary investment goal of FENY is to provide investment results that generally correspond to the price and yield performance of the underlying index.

Issuer:

FENY is issued by Fidelity Investments, a leading global asset management firm with a long history and strong reputation for providing high-quality investment products and services.

Market Share:

FENY has a 0.32% market share in the energy sector ETF space.

Total Net Assets:

As of November 2023, FENY has approximately $1.25 billion in total net assets.

Moat:

The competitive advantages of FENY include:

• Low expense ratio: FENY has an expense ratio of 0.08%, which is below the average for energy sector ETFs.
• Diversification: FENY provides exposure to a broad range of energy companies across different market capitalizations.
• Underlying index: The MSCI US Investable Market Energy 25/50 Index is a well-known and widely tracked benchmark for the U.S. energy sector.

Financial Performance:

Historically, FENY has performed well, closely tracking the underlying index. However, past performance is not indicative of future results.

Benchmark Comparison:

FENY has historically outperformed its benchmark index, the MSCI US Investable Market Energy 25/50 Index, on a risk-adjusted basis.

Growth Trajectory:

The long-term outlook for the energy sector is positive, driven by increasing global energy demand and technological advancements.

Liquidity:

FENY has an average trading volume of approximately 200,000 shares per day, making it a reasonably liquid ETF. The bid-ask spread is typically tight, indicating low trading costs.

Market Dynamics:

Factors affecting the market environment for FENY include:

• Oil prices: The price of oil is a key driver of energy sector performance.
• Economic growth: A strong economy leads to increased energy demand.
• Government policies: Government policies can impact the energy sector in various ways, such as through subsidies or regulations.

Competitors:

Key competitors of FENY include:

• XLE: Energy Select Sector SPDR Fund (36.2% market share)
• VDE: Vanguard Energy ETF (20.2% market share)
• IYE: iShares US Energy ETF (18.4% market share)

Expense Ratio:

FENY has an expense ratio of 0.08%.

Investment Approach and Strategy:

FENY passively tracks the MSCI US Investable Market Energy 25/50 Index, investing in the same proportions as the underlying index. The ETF primarily holds stocks of companies in the energy sector, including oil and gas producers, refiners, and distributors.

Key Points:

• Low expense ratio
• Diversified exposure to the energy sector
• Tracks a well-known and widely followed index
• Strong historical performance
• Positive long-term growth outlook

Risk:

• Volatility: The energy sector is known for its volatility, which can lead to significant fluctuations in the value of FENY.
• Market risk: FENY is subject to the risks associated with the energy sector, such as changes in oil prices, economic conditions, and government policies.

Who Should Consider Investing:

FENY is a suitable investment for investors seeking:

• Exposure to the U.S. energy sector
• A low-cost and diversified investment option
• Long-term capital appreciation

Fundamental Rating Based on AI:

Based on an AI-powered analysis, FENY receives a 7.5 out of 10 for its fundamentals. This rating considers factors such as financial health, market position, and future prospects. The analysis indicates FENY is a well-managed ETF with a strong track record and a positive long-term outlook.

Disclaimer:

This summary is for informational purposes only and should not be considered investment advice. Please consult a financial advisor before making any investment decisions.

Resources:

• Fidelity Investments website: https://www.fidelity.com/etfs/feny
• MSCI website: https://www.msci.com/
• Morningstar website: https://www.morningstar.com/etfs/0P0001J6T0/feny-fidelity-msci-energy-index-etf/
• ETF.com: https://www.etf.com/FENY

Please note: This summary is based on publicly available information as of November 2023.