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Valued Contributor

XLE vs. VDE vs. FENY

In terms of expense ratio, they line up

  • FENY - 0.08%
  • VDE - 0.1%
  • XLE - 0.13% (includes a 0.04% 12b-1 fee)

From www.etf.com, the Distribution (TTM) yields are:

  • XLE - 6.76%
  • FENY - 6.44%
  • VDE - 3.44% (?)

XLE has the highest volume, but they're all pretty liquid. Per etf.com, average daily volumes are:

  • XLE - $779.8m
  • VDE - $31.2m
  • FENY - $4.16m

With virtually all brokerages offering $0 commissions, there isn't any consideration regarding commissions.

It's remarkably hard to quickly identify what index each fund tracks. As far as I can figure out, they are:

  • XLE - S&P Energy Select Sector Index
  • VDE - MSCI US Investable Market Index (IMI)/Energy 25/50
  • FENY - MSCI USA IMI Energy Index

(Note: Why does MSCI need two domestic energy indexes?)

I tried to chart all three, but Morningstar's "Show Interactive Chart" is completely broken. Not sure why I even bothered trying.

So ..... does it make any difference?

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7 Replies
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Explorer ○○

Re: XLE vs. VDE vs. FENY

Are you considering buying one of these Energy ETF's and holding long term? I would advise against it. Have you looked at their returns? On each M* page under Performance and Trailing Returns I see negative numbers for each ETFs YTD, 1 Yr, 3 Yr, and 5 Yr. IMO you'd be better off buying a Tech ETF for the long haul. Tech is the long term winner. 

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Explorer ○○○

Re: XLE vs. VDE vs. FENY

About that broken M* 'Interactive Chart' tool. I've found it to be a bit tricky when trying to compare ETF's. I assume that you already know this but I will try to illustrate anyway. Start with just a quote of one of your chosen ETF's and click on the 'Interactive Chart' button. When the chart shows up you hopefully see the 'Add comparison' area. Type in your next ETF. Here is where it gets weird. If you started with VDE for example and now type in XLE to add you'll see a drop down list of perhaps 10-15 options for XLE. For comparisons sake it's important that you scroll down that list to XLE in the 'ETF' section and click on it. Ditto for adding FENY. Don't ask me why it's like this, I haven't a clue.

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Valued Contributor

Re: XLE vs. VDE vs. FENY


@dbcooper93 wrote:

Are you considering buying one of these Energy ETF's and holding long term? I would advise against it. Have you looked at their returns? On each M* page under Performance and Trailing Returns I see negative numbers for each ETFs YTD, 1 Yr, 3 Yr, and 5 Yr. IMO you'd be better off buying a Tech ETF for the long haul. Tech is the long term winner. 


Yes, long term. Of course the last five years returns suck. That’s the whole point. The unloved will become loved again.

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Valued Contributor

Re: XLE vs. VDE vs. FENY


@stormy wrote:

About that broken M* 'Interactive Chart' tool. I've found it to be a bit tricky when trying to compare ETF's. I assume that you already know this but I will try to illustrate anyway. Start with just a quote of one of your chosen ETF's and click on the 'Interactive Chart' button. When the chart shows up you hopefully see the 'Add comparison' area. Type in your next ETF. Here is where it gets weird. If you started with VDE for example and now type in XLE to add you'll see a drop down list of perhaps 10-15 options for XLE. For comparisons sake it's important that you scroll down that list to XLE in the 'ETF' section and click on it. Ditto for adding FENY. Don't ask me why it's like this, I haven't a clue.


The user interface for Morningstar must have been designed by an ex-brain surgeon. I haven't tried what you suggested, and I doubt that I will bother. This site is just so **bleep** annoying.

**Bleep**? Is the word d-a-m-n really that offensive? Really, there are far more offensive words which are not censored.

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Participant ○

Re: XLE vs. VDE vs. FENY

"Yes, long term. Of course the last five years returns suck. That’s the whole point. The unloved will become loved again."

That is generally true but does not apply to that which human civilization is trying to get away from - like horse buggy.  If this sector turns around, I stand to gain because of my legacy investment in MLPs but not very hopeful.  Tobacco companies surprised me though.

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Participant ○○

Re: XLE vs. VDE vs. FENY


@chang wrote:

 

I tried to chart all three, but Morningstar's "Show Interactive Chart" is completely broken. Not sure why I even bothered trying.

 


image.png

Here you go... growth of 10K, 5yr, div reinvested.

Blue S&P500 (using vanguard fund as proxy);  Orange  - XLE; Red & green the other two are almost indistinguishable. Yellow - PIMIX in ref to your other thread on what to do with annoying spare cash (PDI would be even more annoying, so I left that out).

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Valued Contributor

Re: XLE vs. VDE vs. FENY

Chart XLE VDE FENY

This method for generating old style M* charts still works   https://community.morningstar.com/t5/forums/forumtopicprintpage/board-id/mf/message-id/283/print-sin...

New charts are so clunky that I don't use them.

Stockcharts can also be used.

YBB
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