ETF Comparison

IYE vs XLE: Which Is the Better Pick in 2026?

A head-to-head comparison of iShares U.S. Energy ETF and State Street Energy Select Sector SPDR ETF covering yield, cost, risk, and income potential.

Data updated August 14, 2026

Best for

IYEInvestors who want broad equity exposure.
XLEInvestors who want higher current income (2.49% vs 1.88% for IYE).

Jump to the side-by-side numbers

Side-by-side snapshot

Side-by-side snapshot. Each row is one metric; each column is one fund.
Metric	IYE	XLE
Full name	iShares U.S. Energy ETF	State Street Energy Select Sector SPDR ETF
Issuer	iShares	State Street
Last Close	$65.66 as of August 14, 2026	$61.91 as of August 14, 2026
Distribution yield	1.88%	2.49%
Distribution Safety Score™	85	92
Expense ratio	0.40%	0.09%
AUM	$1.73B	$38.5B
Distribution frequency	Quarterly	Quarterly
Underlying index	Dow Jones U.S. Oil & Gas Index	Energy Select Sector Index
Objective	Tracks the Dow Jones U.S. Oil & Gas Index.	Provide exposure to the fund's underlying index or strategy per issuer materials.
Asset class	Equity	Equity
Inception date	06/12/2000	12/16/1998
Beta	-0.06	-0.08
Last dividend	$0.3090	$0.3849
Ex-dividend date	06/15/2026	06/22/2026

Bottom lineChoose IYE if you want broad equity exposure. Choose XLE if you want higher current income (2.49% vs 1.88% for IYE).

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See how much monthly income a hypothetical investment would generate in each ETF at current yields.

iShares

ETFs473

Total AUM$4664B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

iShares is one of the largest ETF providers globally, known for offering a broad, diversified lineup of exchange-traded funds across multiple asset classes and investment strategies. The company operates 215 funds spanning 15 distinct families, including popular offerings in dividend income, covered call strategies, bonds, equities, ESG-focused investments, and factor-based approaches, with widely-held tickers like AGG (bond), ACWI (global equity), and AOA (allocation). iShares is characterized by its comprehensive fund ecosystem that serves both core portfolio holdings and specialized investment strategies, making it a prominent player for investors seeking both traditional and alternative income-generating ETF solutions.

See our curated list of related YouTube videos on IYE.

See all iShares ETFs

State Street

ETFs180

Total AUM$2127B

ETFs and AUM reflect what Dividend Vision tracks — the issuer's full lineup may be larger.

State Street Global Advisors (SSGA) is one of the largest ETF providers globally, known for its flagship SPDR suite of exchange-traded products that serve both institutional and retail investors across a broad range of asset classes. Their 88-fund lineup spans diverse strategies including sector exposure (Select Sector SPDR), income generation (Income and Select Sector SPDR Premium Income families), commodities (including the widely-held GLD gold ETF), bonds, ESG-focused investments, and thematic allocations, with popular tickers like DIA (Diamonds Trust), FEZ (Eurozone exposure), and JNK (high-yield bonds) among their most recognized funds. The issuer is characterized by its comprehensive coverage across multiple market segments and its emphasis on both traditional index-based products and specialized strategies like covered call income funds and factor-based investing.

See our curated list of related YouTube videos on XLE.

See all State Street ETFs

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Visual comparison

Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Total returns

IYE has lagged XLE over the trailing twelve months, posting a 47.79% total return against 49.08%. The lead holds up over 10 years too: XLE has compounded at 10.27% a year, against 9.22% for IYE. Figures are total returns: price change plus every distribution reinvested.

Total return and risk statistics by fund. Each row is one fund; each column is one period or statistic.
Symbol	YTD	1Y	3Y	5Y	10Y	Since Jun 2000	Volatility	Sharpe	Sortino	Max drawdown
IYE	36.62%	47.79%	14.64%	23.38%	9.22%	7.66%	21.6%	0.43	0.57	-20.4%
XLE	37.48%	49.08%	15.04%	24.60%	10.27%	8.11%	21.9%	0.44	0.59	-20.1%

Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 14, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jun 2000” measures every fund from June 16, 2000 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.

Quick verdict

IYE (iShares U.S. Energy ETF) and XLE (State Street Energy Select Sector SPDR ETF) are both quarterly-pay dividend ETFs, but they take different approaches.

XLE offers the higher yield at 2.49% vs 1.88% for IYE. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.

XLE is cheaper with an expense ratio of 0.09% compared to 0.40%.

They track different benchmarks: IYE is linked to Dow Jones U.S. Oil & Gas Index while XLE tracks Energy Select Sector Index, which means their performance drivers differ.

XLE is the larger fund by assets ($38.5B), which generally means tighter spreads and better liquidity.

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Deep dive

Yield & income

On a $10,000 investment, IYE would generate roughly $15.67/month, while XLE would produce $20.75/month, at current distribution rates. Both pay quarterly distributions.

IYE yield1.88%

XLE yield2.49%

Monthly diff on $10K$5.08

Cost & efficiency

Over 10 years on $10,000, IYE would cost approximately $400 in fees vs $90 for XLE (simplified, not compounded). The $310.00 difference may be offset by yield or performance.

IYE ER0.40%

XLE ER0.09%

Strategy & risk

IYE tracks Dow Jones U.S. Oil & Gas Index, while XLE tracks Energy Select Sector Index with an oil approach.

IYE beta-0.06

XLE beta-0.08

Fund details

IYE is managed by iShares (launched 06/12/2000) with $1.73B in assets. XLE is managed by State Street (launched 12/16/1998) with $38.5B in assets.

IYE AUM$1.73B

XLE AUM$38.5B

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Frequently asked questions

What is the current distribution yield for IYE and XLE?

IYE currently distributes 1.88% and XLE 2.49%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.

Is IYE or XLE better for dividend income?

It depends on your goals. XLE currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.

What is the difference between IYE and XLE?

IYE (iShares U.S. Energy ETF) tracks Dow Jones U.S. Oil & Gas Index, while XLE (State Street Energy Select Sector SPDR ETF) tracks Energy Select Sector Index with an oil approach. They are issued by iShares and State Street respectively.

Can I hold both IYE and XLE?

Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.

Is IYE or XLE safer?

By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — XLE scores 92, IYE scores 85, so XLE's payout currently looks the more resilient of the two. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.

Which has lower fees, IYE or XLE?

IYE has an expense ratio of 0.40% while XLE charges 0.09%. Lower fees mean more of your investment returns stay in your pocket over time.

How much income does $10,000 in IYE vs XLE generate?

At current rates, $10,000 in IYE would generate roughly $15.67 per month ($188.00 annually). The same in XLE would produce about $20.75 per month ($249.00 annually).

Which has performed better historically, IYE or XLE?

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IYE vs XLE — at a glance

Generated August 15, 2026.

Overview

IYE and XLE are both broad energy-sector ETFs tracking oil and gas companies, but they differ in their index methodology and cost structure. IYE tracks the Dow Jones U.S. Oil & Gas Index, while XLE tracks the Energy Select Sector Index (the energy portion of the S&P 500). XLE is significantly larger and cheaper; IYE offers a slightly higher yield but at higher cost.

How they differ

The biggest difference is scale and expense ratio: XLE holds $38.5B in assets and charges 0.09%, while IYE holds $1.73B and charges 0.40%—a meaningful gap for long-term holders. XLE's index is drawn from the S&P 500's energy sector, giving it different stock weightings and composition than IYE's Dow Jones-focused approach. On income, XLE yields 2.49% versus IYE's 1.88%, a 61-basis-point spread; both distribute quarterly. Both carry minimal beta (IYE at -0.06, XLE at -0.08), suggesting defensive or countercyclical moves relative to the broader market during certain periods.

Who each is best for

IYE: Fits investors seeking a narrower, non-S&P 500 energy index with exposure to a broader universe of oil and gas firms beyond the largest-cap names dominating the Energy Select Sector Index.
XLE: Fits investors who prioritize lower costs and index transparency, wanting to own the energy sector's largest publicly traded companies with minimal fund overhead.

Key risks to know

Index overlap and composition drift: The two indexes use different methodologies and weighting schemes, so their stock-level exposure and sector concentration may diverge over time; verify current holdings to assess meaningful differences in your allocation.
Energy sector cyclicality: Both ETFs are concentrated in oil and gas, which is highly sensitive to commodity prices, geopolitical supply shocks, and energy demand cycles; sharp oil price declines can compress valuations and distributions simultaneously.
Regulatory and energy transition risk: Energy stocks face long-term headwinds from renewable-energy mandates, carbon regulations, and investor divestment; neither ETF hedges that risk, and holding company fundamentals can erode if transition trends accelerate.
Negative beta periods: The reported near-zero or slightly negative betas suggest these ETFs may move inversely to broader markets during certain regimes, creating potential for capital loss when equity markets rally.

Bottom line

If you want maximum cost efficiency and S&P 500 sector-tracking clarity, XLE's 0.09% expense ratio and $38.5B in liquidity stand out. If you're drawn to a broader oil-and-gas index and don't mind the 31-basis-point expense premium for different diversification, IYE offers an alternative index approach. Past performance does not predict future results, and energy holdings require monitoring for regulatory and commodity-price shifts.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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