iShares U.S. Energy ETF

This ETF offers exposure to the domestic energy market, including many of the Big Oil companies that are responsible for significant portions of global energy supply. IYE is likely too targeted for those with a long time horizon, but this fund can potentially be useful for those implementing a sector rotation strategy or looking to overweight this corner of the market. Like many domestic energy ETFs, IYE has significant concentration in a small handful of names that account for big chunks of the overall portfolio; the equal-weighted RYE may be an appealing option for those looking to avoid this issue (same goes for the alpha-seeking FXN). Another drawback of IYE is the cost; the expense ratio is considerably higher than both XLE and FEG, limiting the usefulness of this fund. Cost conscious investors have better choices available, as do those concerned about excessive concentration.