VDEETF

The Fidelity MSCI Energy Index ETF (FENY) offers broad exposure to the energy sector with a low 0.08% expense ratio and $2.12 billion in assets. The ETF has delivered strong year-to-date returns of 43.53% and holds major energy companies like ExxonMobil, Chevron, and ConocoPhillips. With a Zacks ETF Rank of 1 (Strong Buy), it presents a competitive option compared to alternatives like Vanguard Energy Index Fund (VDE) and State Street Energy Select Sector SPDR (XLE).

RSPG is a smart beta ETF launched in 2006 that tracks the S&P 500 Equal Weight Energy Plus Index with $624.72 million in assets. The fund has delivered strong performance with 43.62% year-to-date gains and a low expense ratio of 0.40%. However, it carries higher concentration risk with only 24 holdings and a beta of 0.56, making it more volatile than traditional energy ETFs like VDE and XLE.

FTXN is a smart beta ETF providing exposure to US oil and gas companies with $970.56 million in assets. It tracks the Nasdaq US Smart Oil & Gas Index with a 0.60% expense ratio and 1.84% dividend yield.

The fund returned 41.33% overall and 38.71% year-to-date as of October 2026, with top holdings including ConocoPhillips, Chevron, and ExxonMobil. However, cheaper alternatives like VDE (0.09% expense ratio) and XLE (0.08% expense ratio) offer lower-cost market-cap weighted energy exposure.

Vanguard Energy ETF (VDE) and First Trust North American Energy Infrastructure Fund (EMLP) offer different energy exposure strategies. VDE focuses on oil majors with a low 0.09% expense ratio and 37.7% 1-year returns, while EMLP targets midstream and utilities with a higher 3.0% dividend yield but 0.95% expense ratio. VDE is recommended for cost-conscious investors seeking broad energy exposure, while EMLP suits income-focused investors willing to pay higher fees.

FXN is a smart beta ETF launched in 2007 that tracks the StrataQuant Energy Index with a 0.63% expense ratio. The fund has delivered strong year-to-date returns of 45.33% and 54.47% over the past year, but carries higher risk with a beta of 0.62 and 25.13% standard deviation. It holds approximately 40 energy stocks with top holdings including HF Sinclair Corp., APA Corporation, and Devon Energy Corporation.

The Global X U.S. Electrification ETF (ZAP), launched in December 2024, offers broad exposure to the Energy - Broad sector with a 0.5% expense ratio and $450.69 million in assets. The fund has gained 10.03% year-to-date and 7.52% over the past year, with heavy allocation to Utilities (70.7%). However, it carries a Zacks ETF Rank of 3 (Hold) and has more concentrated exposure than peers with 47 holdings.

Energy stocks have emerged as a notable outlier during the recent bond market selloff, with rising oil prices supporting earnings as Treasury yields surge to their highest levels since 2002. Energy ETFs like XLE have gained over 40% year-to-date, significantly outperforming the broader S&P 500's 11.8% gain. The sector benefits from commodity-driven earnings that are less sensitive to interest rate increases, while structural pressures and geopolitical uncertainties suggest continued support for energy prices.

Zacks identifies three high-performing mutual funds suitable for retirement investing: American Funds Growth Portfolio R6 with a 0.02% expense ratio and 9.36% five-year return, Vanguard Energy Admiral with 0.37% expense ratio and 19.86% yearly returns, and DWS Equity Sector Strategy A with 0.73% expense ratio and 11.93% five-year returns. The article emphasizes the importance of analyzing fund performance, diversification, and fees when selecting retirement investments.