What are broad energy ETFs?
Energy ETFs mostly own companies that produce, refine, transport and store oil and natural gas. The five largest funds are XLE, VDE, FENY, IXC and IYE. In all five, Exxon Mobil is the biggest holding, at 17.58% to 22.73% of assets, and Chevron is second. Phillips 66, EOG Resources and ONEOK each appear in 11 of the 15 largest funds. ConocoPhillips, Williams and Kinder Morgan each appear in 10.
Most of these funds track an index, but the indexes differ. XLE holds just 21 stocks, while Vanguard's VDE holds 111 and Fidelity's FENY holds 101. IXC adds non-US companies such as Shell and TotalEnergies. RSPG tracks the S&P 500 Equal Weight Energy Plus Index, so its largest holding, Valero, is only 5.38%. PSCE holds smaller companies, and EINC follows a North American energy infrastructure index. First Trust's EIPX and EIPI and Westwood's WEEI name no index in their objectives. EIPI, WEEI and Tortoise's TPZ are option-income funds: they collect cash from options in exchange for giving up some gains. Four funds are leveraged or inverse. ERX and DIG aim for twice an energy index's daily move, and ERY and DUG aim for twice the opposite.
Costs vary widely. The expense ratio is the yearly fee, shown as a share of the money invested. The median is 0.6% across all the funds, or 0.41% if you leave out the leveraged and inverse funds. XLE charges the least, at 0.08%, and EIPI the most, at 1.11%.
The money is concentrated, too. The 23 funds hold about $58.7 billion, and 93.3% of it sits in the five largest. XLE alone holds about $35.7 billion, more than all the other funds combined.
Broad energy ETF holdings: the stocks most funds own
The stocks that show up most often among the largest positions of the 15 biggest broad energy ETFs with holdings reports, from their latest N-PORT filings.
| Stock | Funds holding it | Typical weight |
|---|---|---|
| Phillips 66 | 11 of 15 | 3.67% |
| EOG Resources Inc | 11 of 15 | 3.49% |
| ONEOK Inc | 11 of 15 | 3.14% |
| ConocoPhillips | 10 of 15 | 4.46% |
| Williams Cos Inc | 10 of 15 | 3.42% |
| Kinder Morgan Inc | 10 of 15 | 2.77% |
| Chevron Corp | 9 of 15 | 14.38% |
| Marathon Petroleum Corp | 9 of 15 | 4.15% |
| Valero Energy Corp | 9 of 15 | 4.06% |
| ExxonMobil Holdings Corp | 8 of 15 | 14.59% |
| Targa Resources Corp | 8 of 15 | 2.55% |
| Devon Energy Corp | 8 of 15 | 2.29% |
Typical weight is the median share of each fund’s assets in the stock, among the funds that hold it in their 25 largest positions.
The largest broad energy ETFs, side by side
Swipe the table to see all 5 funds.
| XLE | VDE | FENY | IXC | IYE | |
|---|---|---|---|---|---|
| Net assets | $35.72B | $13.26B | $2.01B | $2.00B | $1.76B |
| Expense ratio | 0.08% | 0.09% | 0.08% | 0.37% | 0.37% |
| Holdings | 21 | 111 | 101 | 59 | 40 |
| In the 10 largest | 75.54% | 65.38% | 65.07% | 57.37% | 70.36% |
| Biggest holding | Exxon Mobil Corp (22.67%) | ExxonMobil Holdings Corp (21.4%) | ExxonMobil Holdings Corp (22%) | Exxon Mobil Corporation (17.58%) | Exxonmobil Holdings Corporation (22.73%) |
| Yield | 2.17% | 2.09% | 2.14% | 2.51% | 1.88% |
| 1-year return | +64.6% | +62.1% | +56.9% | +54.8% | +56.7% |
| 3 years, a year | -4.0% | +21.4% | +20.5% | +20.9% | +20.5% |
| 5 years, a year | +6.3% | +23.3% | +22.7% | +21.1% | +21.6% |
| Worst drop, past year | -15.0% | -15.0% | -14.9% | -18.0% | -14.5% |
| Launched | 1998 | 2004 | 2013 | 2001 | 2000 |
The largest ordinary funds by net assets (leveraged and inverse funds are listed further down). Holdings from each fund’s latest N-PORT report; returns include reinvested distributions, as of Oct 30, 2026.
Head to head
XLE vs VDE
XLE tracks the Energy Select Sector Index with 21 stocks, while Vanguard's VDE holds 111. Both lean on Exxon Mobil (22.67% of XLE, 21.4% of VDE). XLE is more concentrated, with 75.54% in its top 10 holdings versus 65.38%. About 60.3% of their assets overlap. Fees are nearly identical at 0.08% and 0.09%. In the year to October 30, 2026, XLE returned 64.6% and VDE 62.1%, and each fell as much as 15% from a peak. XLE may suit investors who prefer a shorter list of holdings. VDE spreads money across many more names.
VDE vs FENY
These two are close to twins. Vanguard's VDE holds 111 stocks. Fidelity's FENY tracks the MSCI USA IMI Energy 25/50 Index and holds 101. They share 100 holdings, and 96.9% of their assets overlap. Exxon Mobil is 21.4% of VDE and 22% of FENY, and each has about 65% in its top 10. FENY charges 0.084% and VDE 0.09%. In the year to October 30, 2026, VDE returned 62.1% and FENY 56.9%. Their worst drops from a peak were similar, at 15% and 14.9%. Either may suit investors who want broad US energy exposure at a low fee.
IYE vs IXC
Both are iShares funds charging 0.37%, but they cover different ground. IYE holds 40 US energy stocks, with Exxon Mobil at 22.73% and 70.36% in its top 10. IXC holds 59 energy stocks worldwide, including Shell (6.75%) and TotalEnergies (5.03%). Its Exxon Mobil stake is 17.58%, and its top 10 make up 57.37%. Only 42% of their assets overlap. In the year to October 30, 2026, IYE returned 56.7% and IXC 54.8%. IXC's worst drop was deeper, at 18% versus 14.5%. IXC may suit investors who want energy companies outside the US. IYE sticks to US stocks.
How much do the largest broad energy ETFs overlap?
Owning two funds that hold the same stocks adds little diversification. Overlap here is the share of assets two funds have in common: for each stock both own, the smaller of its two weights, added up.
| Funds | Assets in common | Shared holdings | |
|---|---|---|---|
| VDE and FENY | 96.9% | 100 | |
| FENY and IYE | 90.6% | 35 | |
| VDE and IYE | 90.2% | 35 | |
| XLE and IYE | 66.2% | 20 | |
| XLE and VDE | 60.3% | 20 | |
| XLE and FENY | 60% | 20 | |
| XLE and IXC | 59.6% | 21 | |
| FENY and IXC | 42% | 20 | |
| IXC and IYE | 42% | 20 | |
| VDE and IXC | 41.9% | 20 |
From each fund’s full holdings in its latest N-PORT report.
How have broad energy ETFs performed?
The five largest ordinary funds: growth from the start of the range, distributions reinvested. The dashed gray line is the S&P 500 (SPY).
Best-performing broad energy ETFs over the past year
| # | Fund | Net assets | Cost | 1 mo | YTD | 1 yr | 3 yr |
|---|---|---|---|---|---|---|---|
| 1 | XLE Energy Select Sector SPDR Fund | $35.72B | 0.08% | +13.9% | +59.7% | +64.6% | -4.0% |
| 2 | VDE Vanguard Energy ETF | $13.26B† | 0.09% | +13.5% | +58.1% | +62.1% | +21.4% |
| 3 | DRLL Strive U.S. Energy ETF | $261.2M | 0.41% | +11.0% | +59.1% | +59.9% | +19.6% |
| 4 | FXN First Trust Energy AlphaDEX Fund | $379.1M | 0.63% | +10.6% | +52.3% | +58.5% | +15.6% |
| 5 | FENY Fidelity MSCI Energy Index ETF | $2.01B | 0.08% | +9.5% | +54.1% | +56.9% | +20.5% |
| 6 | IYE iShares U.S. Energy ETF | $1.76B | 0.37% | +10.0% | +53.7% | +56.7% | +20.5% |
| 7 | RSPG Invesco S&P 500 Equal Weight Energy ETF | $573.6M | 0.4% | +8.4% | +52.0% | +56.1% | +19.7% |
| 8 | IXC iShares Global Energy ETF | $2.00B | 0.37% | +8.3% | +51.0% | +54.8% | +20.9% |
| 9 | PSCE Invesco S&P SmallCap Energy ETF | $109.9M | 0.29% | +2.0% | +41.5% | +42.4% | +5.5% |
| 10 | PXI Invesco Dorsey Wright Energy Momentum ETF | $52.5M | 0.6% | +6.3% | +46.5% | +41.8% | +16.8% |
Funds with at least $25 million in net assets; leveraged and inverse funds left out. Past returns don’t predict future returns.
How broad energy ETFs did in past market crashes
| Fund | 2008 crash | 2020 crash | 2022 drop |
|---|---|---|---|
| XLE | -48.3% | -56.0% | +42.2% |
| VDE | not yet launched | not yet launched | +44.9% |
| FENY | not yet launched | -56.4% | +45.2% |
| IXC | -46.8% | -53.0% | +29.9% |
| IYE | -47.0% | -56.5% | +43.6% |
| S&P 500 (SPY) | -55.2% | -33.7% | -24.5% |
Total return from the stock market’s peak to its low in each fall, distributions reinvested.
What drives broad energy ETFs?
Energy companies' profits rise and fall mainly with oil and natural gas prices. Those prices swing with global economic growth, output decisions by big oil-exporting countries, weather and politics. Producers such as Exxon Mobil, Chevron, ConocoPhillips and EOG Resources feel price changes most directly. Refiners such as Valero, Marathon Petroleum and Phillips 66 earn the gap between the cost of crude oil and the price of gasoline and diesel. Pipeline companies such as Williams, Kinder Morgan and ONEOK mostly collect fees for moving and storing fuel, which tends to be steadier.
Because oil and gas prices follow their own cycle, energy funds have often moved out of step with the S&P 500. In the 2008 financial crisis, XLE fell 48.3%, IYE 47% and IXC 46.8%, less than the S&P 500's 55.2% drop. In the 2020 COVID crash, as travel and fuel use plunged, they fell harder. XLE lost 56% and IYE 56.5%, against 33.7% for the S&P 500. In the 2022 bear market the pattern flipped. The S&P 500 fell 24.5%, while FENY gained 45.2%, VDE 44.9%, XLE 42.2% and IXC 29.9%.
Broad energy ETFs with the lowest expense ratios
| # | Fund | Expense ratio | On $10,000 | Net assets |
|---|---|---|---|---|
| 1 | XLE Energy Select Sector SPDR Fund | 0.08% | $8 a year | $35.72B |
| 2 | FENY Fidelity MSCI Energy Index ETF | 0.08% | $8 a year | $2.01B |
| 3 | VDE Vanguard Energy ETF | 0.09% | $9 a year | $13.26B |
| 4 | SPXE ProShares S&P 500 Ex-Energy ETF | 0.09% | $9 a year | $86.6M |
| 5 | PSCE Invesco S&P SmallCap Energy ETF | 0.29% | $29 a year | $109.9M |
Ordinary funds with at least $10 million in net assets. The median ordinary broad energy ETF charges 0.41% a year; leveraged and inverse funds usually charge more.
Do broad energy ETFs pay dividends?
19 of the 19 ordinary broad energy ETFs with a page here paid distributions over the last 12 months, with a median yield of 2.14%.
| Highest yields | Yield | Net assets |
|---|---|---|
| WEEI Westwood Salient Enhanced Energy Income ETF | 10.55% | $98.4M |
| FILL iShares MSCI Global Energy Producers ETF | 9.16% | $83.6M |
| EIPI FT Energy Income Partners Enhanced Income ETF | 7.45% | $1.11B |
| EINC VanEck Energy Income ETF | 4.16% | $108.7M |
| TPZ Tortoise Essential Energy Fund | 3.54% | $128.6M |
Distributions over the last 12 months divided by the price; funds with at least $25 million in net assets. Some of these yields come from selling options, which gives up some of the gains.
How to choose a broad energy ETF
- Yearly fees run from 0.08% to 1.11%. XLE (0.08%), FENY (0.084%) and VDE (0.09%) cost the least. XLE is also the largest, at about $35.7 billion. IXC and IYE charge 0.37%, and the income-focused EIPI charges 1.11%.
- How much rides on Exxon and Chevron. DRLL puts 21.98% in Exxon Mobil and 21.77% in Chevron, and XLE keeps 75.54% in its top 10. VDE and FENY, with over 100 stocks, hold about 65% in their top 10. Fewer names mean more riding on each.
- How each index picks and weights stocks. RSPG tracks an equal-weight S&P 500 energy index, so its largest holding, Valero, is only 5.38%. FXN's StrataQuant Energy Index leads with HF Sinclair and APA. PSCE tracks small companies, led by SM Energy. None leads with Exxon Mobil.
- US-only, global or North American infrastructure. Most large funds stick to US stocks. IXC is global, with Shell (6.75%) and TotalEnergies (5.03%) among its top five. EINC tracks a North American energy infrastructure index led by Williams, Enbridge and TC Energy.
- Income funds trade growth for payouts. As of October 30, 2026, WEEI yielded 10.55% and EIPI 7.45%, against a 2.14% median. Both use options for income. Over the prior year, EIPI returned 24.2% and WEEI 39.5%, while XLE returned 64.6%.
- Leveraged and inverse funds are daily trading tools. ERX and DIG aim for twice an energy index's daily move; ERY and DUG, twice the opposite. Daily resets mean longer-term results can drift from 2x. ERX gained 127.5% and ERY lost 62.1% in the year to October 30, 2026.
What are the risks of broad energy ETFs?
- Heavy reliance on Exxon Mobil and Chevron. Exxon Mobil is 22.67% of XLE and Chevron 16.09%; in DRLL the two are 21.98% and 21.77%. Top 10 holdings make up 75.54% of XLE and 78.54% of DRLL, so trouble at one company shows up quickly.
- Big swings with oil and gas prices. Over the year to October 30, 2026, XLE and VDE had volatility (how much prices bounce around) near 22% and fell as much as 15% from a peak. In the 2020 crash, XLE lost 56%.
- Owning several funds adds little variety. Many energy ETFs hold the same stocks. VDE and FENY share 96.9% of their assets, and VDE and IYE share 90.2%. Even XLE and IXC, one US-only and one global, overlap by 59.6%.
- Leveraged and inverse funds can lose fast. ERX aims for twice its index's daily move and had volatility of 44.6%, with a worst drop of 30%, over the year to October 30, 2026. Inverse funds ERY and DUG each lost about 62% as energy stocks rose.
- Option income caps gains and costs more. EIPI, WEEI and TPZ trade away some upside for option income and charge 0.85% to 1.11% a year. WEEI, whose top holdings resemble XLE's, returned 39.5% in the year to October 30, 2026, against 64.6% for XLE.
Leveraged and inverse broad energy ETFs (2x)
These funds aim for a multiple, or the opposite, of one day’s return, and reset every day. Held for longer than a day, their results can drift far from that multiple, especially when prices swing. They are trading tools, not long-term holdings. Why leveraged ETFs decay →
List of all broad energy ETFs, by size
| # | Fund | Net assets | Cost | Yield | YTD | 1 yr | 5 yr |
|---|---|---|---|---|---|---|---|
| 1 | XLE Energy Select Sector SPDR Fund | $35.72B | 0.08% | 2.17% | +59.7% | +64.6% | +6.3% |
| 2 | VDE Vanguard Energy ETF | $13.26B† | 0.09% | 2.09% | +58.1% | +62.1% | +23.3% |
| 3 | FENY Fidelity MSCI Energy Index ETF | $2.01B | 0.08% | 2.14% | +54.1% | +56.9% | +22.7% |
| 4 | IXC iShares Global Energy ETF | $2.00B | 0.37% | 2.51% | +51.0% | +54.8% | +21.1% |
| 5 | IYE iShares U.S. Energy ETF | $1.76B | 0.37% | 1.88% | +53.7% | +56.7% | +21.6% |
| 6 | EIPI FT Energy Income Partners Enhanced Income ETF | $1.11B | 1.11% | 7.45% | +21.0% | +24.2% | — |
| 7 | RSPG Invesco S&P 500 Equal Weight Energy ETF | $573.6M | 0.4% | 1.74% | +52.0% | +56.1% | — |
| 8 | EIPX FT Energy Income Partners Strategy ETF | $563.5M | 0.95% | 2.66% | +30.8% | +32.4% | — |
| 9 | FXN First Trust Energy AlphaDEX Fund | $379.1M | 0.63% | 1.66% | +52.3% | +58.5% | +17.3% |
| 10 | DRLL Strive U.S. Energy ETF | $261.2M | 0.41% | 1.9% | +59.1% | +59.9% | — |
Questions investors ask about broad energy ETFs
What is the largest energy ETF?
The Energy Select Sector SPDR Fund (XLE) is the largest, with about $35.7 billion in assets. It launched on December 16, 1998, and tracks the Energy Select Sector Index. It holds 21 stocks, led by Exxon Mobil at 22.67% and Chevron at 16.09%. The Vanguard Energy ETF (VDE) is second, at about $13.3 billion. Together, the five largest funds (XLE, VDE, FENY, IXC and IYE) hold 93.3% of the money in energy ETFs.
What is the cheapest energy ETF?
XLE has the lowest expense ratio (yearly fee), at 0.08%. Fidelity's FENY is close behind at 0.084%, and Vanguard's VDE charges 0.09%. Invesco's PSCE, which holds smaller energy companies, costs 0.29%. The ProShares S&P 500 Ex-Energy ETF (SPXE) also charges 0.09%, but as its name says, it holds the S&P 500 without its energy stocks. Across all energy ETFs, the median fee is 0.6%. The highest is 1.11%, for First Trust's EIPI.
XLE vs VDE: what's the difference?
Both are low-cost index funds led by Exxon Mobil and Chevron, but VDE is broader. XLE charges 0.08% and holds 21 stocks, with 75.54% in its top 10. VDE charges 0.09% and holds 111, with 65.38% in its top 10. About 60.3% of their assets overlap. In the year to October 30, 2026, XLE returned 64.6% and VDE 62.1%, and both fell as much as 15% from a peak. Their yields were 2.17% and 2.09%.
Is there a Vanguard or Fidelity energy ETF?
Yes. The Vanguard Energy ETF (VDE) charges 0.09% and holds 111 stocks. It is an exchange-traded share class of Vanguard Energy Index Fund. The Fidelity MSCI Energy Index ETF (FENY) charges 0.084% and tracks the MSCI USA IMI Energy 25/50 Index with 101 stocks. The two are close to twins: they share 100 holdings, and 96.9% of their assets overlap. Over the year to October 30, 2026, VDE returned 62.1% and FENY 56.9%.
Do energy ETFs pay dividends?
Yes. All 19 energy ETFs with dividend data paid out income. Their median yield (yearly income as a share of price) was 2.14% as of October 30, 2026. XLE yielded 2.17%, VDE 2.09% and the global IXC 2.51%. Income-focused funds paid more: WEEI yielded 10.55%, EIPI 7.45% and EINC 4.16%. WEEI and EIPI add option income to dividends. That means their payouts can vary, and they give up some gains when stocks rise.
Do energy ETFs hold Exxon Mobil?
Yes, and in large amounts. Exxon Mobil is the biggest holding in XLE (22.67%), VDE (21.4%), FENY (22%), IYE (22.73%) and the global IXC (17.58%). It also tops WEEI at 24.05% and DRLL at 21.98%. Chevron is usually second. Funds built differently spread their money more evenly. Equal-weight RSPG's largest holding is Valero at 5.38%, and small-company PSCE's is SM Energy at 7.59%.
How many energy ETFs are there?
There are 23 US-listed broad energy ETFs, with about $58.7 billion in total assets. Four are leveraged or inverse funds built for short-term trading. The money is concentrated: 93.3% sits in the five largest, XLE, VDE, FENY, IXC and IYE. Many of the rest are small specialty funds. PSCE (smaller companies), EINC (energy infrastructure) and WEEI (option income) each hold between about $98 million and $110 million.
What are the leveraged and inverse energy ETFs?
There are four. Direxion Daily Energy Bull 2X Shares (ERX) and ProShares Ultra Energy (DIG) aim for twice an energy index's daily return. Direxion Daily Energy Bear 2X Shares (ERY) and ProShares UltraShort Energy (DUG) aim for twice the opposite. Because they reset every day, results over weeks or months can drift far from 2x, especially when prices swing. In the year to October 30, 2026, ERX gained 127.5% and ERY lost 62.1%. They are built as short-term trading tools, not long-term holdings.
Is there a Vanguard, Fidelity or Schwab energy ETF?
Yes. Vanguard offers one: VDE (Vanguard Energy ETF). Fidelity offers one: FENY (Fidelity MSCI Energy Index ETF). Schwab doesn’t have a energy ETF.
