Understand any stock in simple English
Enter a ticker to learn what the company does and how it makes money.
It is a fund that holds a big basket of energy company stocks, letting investors bet on the whole oil, gas, and energy sector at once.
This is not a normal company. It does not make anything, sell anything, or employ rig workers. It is an exchange-traded fund, or ETF, which is a basket of stocks you can buy and sell like a single share. This fund's job is simple: it tries to mirror the MSCI USA Energy Index, a list of American energy companies. So when you buy a share, you are really buying a tiny slice of a whole pile of oil, gas, and energy-equipment businesses all at once. Fidelity runs it, and the fund trades on NYSE Arca under its own ticker.
Think of it as a pre-made sandwich platter instead of ordering one sandwich. Instead of picking Exxon or Chevron yourself, you get a bit of everyone in the energy aisle. The fund makes money for Fidelity through a small annual fee, currently around 0.08% of the money invested, which is very cheap for this kind of product. The big oil and gas giants like Exxon Mobil and Chevron tend to dominate the basket, so the fund mostly rises and falls with the price of crude oil and natural gas, plus the broader mood around energy demand. It holds roughly a hundred stocks, so no single company can sink the whole thing.
For regular investors, the appeal is one-click exposure to a notoriously boom-and-bust sector without researching individual drillers. When oil prices spike, energy stocks often jump and the fund along with them. When oil crashes, so does the fund. It pays out dividends collected from the companies it holds, and it does not buy back shares or reinvest in new projects the way an operating company would. The main risks are oil price swings, the global shift toward cleaner energy, and the fact that this fund is a follower, not a stock picker.
Saved answer · last researched 11 Oct 2026