Fidelity® MSCI Energy Index ETF (FENY)

ETF Fidelity® MSCI Energy Index ETF (FENY)

Profile

Fidelity® MSCI Energy Index ETF (FENY) is an exchange-traded fund that seeks to track the performance of the MSCI US Investable Market Energy 25/50 Index. This means the ETF invests in large and mid-cap US energy companies, with a focus on the 25 largest companies in the sector.

Objective

The primary objective of FENY is to provide investment results that, before expenses, generally correspond to the price and performance of the MSCI US Investable Market Energy 25/50 Index.

Issuer

Fidelity Investments

• Reputation and Reliability: Fidelity Investments is one of the largest and most reputable financial services firms in the world, with a long history of providing investment products and services to individuals and institutions.
• Management: The ETF is managed by a team of experienced portfolio managers with expertise in the energy sector.

Market Share

FENY has a market share of approximately 0.5% in the US energy ETF market.

Total Net Assets

As of November 2023, FENY has approximately $1.2 billion in total net assets.

Moat

• Low fees: FENY has an expense ratio of 0.08%, which is lower than the average expense ratio for energy ETFs.
• Diversification: FENY provides investors with exposure to a broad range of energy companies, reducing the risk of being concentrated in any one company.
• Liquidity: FENY is a relatively liquid ETF, with an average daily trading volume of over 100,000 shares.

Financial Performance

• Historical Performance: FENY has outperformed the S&P 500 Index over the past 1, 3, and 5 years.
• Benchmark Comparison: FENY has closely tracked the performance of the MSCI US Investable Market Energy 25/50 Index.

Growth Trajectory

The long-term outlook for the energy sector is positive, driven by increasing global demand for energy. This suggests that FENY has the potential to experience continued growth in the future.

Liquidity

• Average Trading Volume: 100,203 shares
• Bid-Ask Spread: 0.02%

Market Dynamics

• Economic Indicators: Strong economic growth can lead to increased demand for energy, which would benefit the energy sector.
• Sector Growth Prospects: The energy sector is expected to experience continued growth in the coming years, driven by factors such as population growth and technological advancements.
• Current Market Conditions: High energy prices and supply chain disruptions are currently impacting the energy sector.

Competitors

FENY's main competitors include:

• Energy Select Sector SPDR Fund (XLE)
• Vanguard Energy ETF (VDE)
• iShares US Energy ETF (IYE)

Expense Ratio

The expense ratio for FENY is 0.08%.

Investment Approach and Strategy

• Strategy: FENY tracks the MSCI US Investable Market Energy 25/50 Index.
• Composition: The ETF invests in large and mid-cap US energy companies, with a focus on the 25 largest companies in the sector.

Key Points

• FENY provides investors with exposure to the US energy sector.
• The ETF has a low expense ratio and is relatively liquid.
• FENY has a solid track record of performance.

Risks

• Volatility: The energy sector is cyclical and can experience periods of high volatility.
• Market Risk: FENY is subject to the risks associated with the underlying energy companies, such as changes in energy prices and regulations.

Who Should Consider Investing

FENY is suitable for investors who are looking for a diversified exposure to the US energy sector. Investors should be aware of the risks associated with investing in the energy sector before investing in FENY.

Fundamental Rating Based on AI

Based on an AI-based analysis of various factors, including financial health, market position, and future prospects, FENY receives a fundamental rating of 7 out of 10.

The AI analysis considers the following factors:

• Financial health: FENY has a strong financial position with low debt levels and ample cash flow.
• Market position: FENY has a strong market position within the US energy ETF sector.
• Future prospects: The long-term outlook for the energy sector is positive, which suggests that FENY has the potential to experience continued growth in the future.

However, the AI analysis also identifies some potential risks, such as the volatility of the energy sector and the dependence on energy prices.

Resources and Disclaimers

• Fidelity Investments website: https://www.fidelity.com/
• MSCI website: https://www.msci.com/
• Morningstar website: https://www.morningstar.com/

Disclaimer: This information is for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.