FENY - FENY: Still Cheap And Well Supported By Energy Commodity Prices

2024-05-01 02:15:47 ET

Summary

• Fidelity MSCI Energy Index ETF offers exposure to the U.S. energy sector with a low expense ratio of 0.08%.
• The outlook for oil prices is bullish, supported by strong supply and demand fundamentals and geopolitical tensions in the Middle East and Ukraine.
• The energy sector's relatively cheap valuation compared to its historical average and the broader market suggests that FENY has room for upside.

Overview

The Fidelity MSCI Energy Index ETF ( FENY ) is designed to offer investors exposure to the U.S. energy sector, aligning its performance with the MSCI USA IMI Energy Index. Principally, FENY invests at least 80% of its assets in securities that are included in its underlying index, adopting a representative sampling indexing strategy. This strategy involves selecting securities that represent the full index in terms of its characteristics such as market capitalization and industry weightings. As a sector-specific, passively managed ETF, it mainly invests in North American equities, with a strong focus on large- and mid-cap companies which are about 63% and 25% of the portfolio's composition, respectively....

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