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 September 4, 2026

Best for

IYEInvestors who want broad equity exposure.
XLEInvestors who want higher current income (2.40% vs 1.82% for IYE).

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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 47.44% total return against 49.29%. The lead holds up over 10 years too: XLE has compounded at 10.51% a year, against 9.45% 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	40.92%	47.44%	15.23%	24.42%	9.45%	7.77%	21.6%	0.45	0.60	-20.4%
XLE	42.26%	49.29%	15.64%	25.87%	10.51%	8.24%	21.9%	0.46	0.62	-20.1%

Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of September 4, 2026. YTD and 1Y are cumulative; windows of one year or longer 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.

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
Underlying index	Dow Jones U.S. Oil & Gas Index	Energy Select Sector Index
Last Close	$67.73 as of September 4, 2026	$64.06 as of September 4, 2026
Distribution yield	1.82%	2.40%
Distribution Safety Score™	85	92
Safety-Adjusted Yield	1.55%	2.21%
Expense ratio	0.37%	0.08%
AUM	$1.88B	$42.4B
Distribution frequency	Quarterly	Quarterly
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	$0.309	$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 (2.40% vs 1.82% for IYE).

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Income calculator

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

iShares

ETFs466

Total AUM$4642B

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

ETFs179

Total AUM$2124B

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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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 2.40% vs 1.82% 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 0.08% compared to 0.37%.

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

XLE is the larger fund by assets ($42.4B), 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 $15.17/month, while XLE would produce $20.00/month, at current distribution rates. Both pay quarterly distributions.

IYE yield1.82%

XLE yield2.40%

Monthly diff on $10K$4.83

Cost & efficiency

Over 10 years on $10,000, IYE would cost approximately $370 in fees vs $80 for XLE (simplified, not compounded). The $290.00 difference may be offset by yield or performance.

IYE ER0.37%

XLE ER0.08%

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 $1.88B in assets. XLE is managed by State Street (launched 12/16/1998) with $42.4B in assets.

IYE AUM$1.88B

XLE AUM$42.4B

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Frequently asked questions

What is the current distribution yield for IYE and XLE?

IYE currently distributes 1.82% and XLE 2.40%, based on fund data updated September 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 0.37% while XLE charges 0.08%. 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 $15.17 per month ($182.00 annually). The same in XLE would produce about $20.00 per month ($240.00 annually).

Which has performed better historically, IYE or XLE?

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IYE vs XLE — at a glance

Generated August 29, 2026.

Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.

Overview

IYE and XLE are both energy sector equity ETFs that track oil and gas companies, but they index different universes. IYE follows the Dow Jones U.S. Oil & Gas Index, while XLE tracks the Energy Select Sector Index (the energy subset of the S&P 500). The key distinction is breadth: XLE captures the largest energy firms within the S&P 500, while IYE casts a wider net across the broader oil and gas market.

How they differ

XLE is roughly 22 times larger by assets ($42.4B vs. $1.88B) and charges significantly less to own—its 0.08% expense ratio is less than a quarter of IYE's 0.37%. XLE also yields higher (2.40% vs. 1.82%), though both distribute quarterly. The composition difference matters: XLE's index is confined to S&P 500 constituents, so it holds the mega-cap integrated and exploration names; IYE's Dow Jones index includes a broader swath of mid-cap and smaller energy companies, which explains its lower yield and higher fee structure. Both report negative betas (around −0.06 to −0.08), a quirk common to energy stocks when measured against broad market benchmarks over certain periods.

Who each is best for

IYE: Fits investors seeking broader exposure to the oil and gas industry beyond the S&P 500's largest players, or those comfortable with a smaller fund if they prefer the Dow Jones Oil & Gas Index methodology.

XLE: Designed for investors who want pure-play energy sector beta tied to the S&P 500's energy constituents and prefer lower costs and higher trading liquidity.

Key risks to know

Sector concentration. Both ETFs are entirely energy-dependent; a prolonged downturn in oil prices, regulatory pressure on fossil fuels, or transition away from hydrocarbons poses outsized risk to the entire portfolio.

Commodity price exposure. Energy stocks correlate closely with crude oil and natural gas prices; a sharp decline in energy prices can erode both share prices and distributions, regardless of fund structure.

Negative beta quirk. The reported negative betas suggest a historical inverse relationship to broad market movements, which may not persist. This is a data artifact of past correlations, not a hedge characteristic.

Liquidity and AUM concentration. XLE's $42.4B in assets versus IYE's $1.88B means XLE trades with tighter spreads and deeper order books; IYE may carry wider bid-ask spreads during market stress.

Bottom line

If you prioritize low costs and maximum liquidity within the S&P 500 energy universe, XLE's 0.08% fee and $42.4B in assets make it the cleaner entry point. If you want broader oil and gas exposure beyond the mega-cap names, IYE's Dow Jones index offers different sector coverage—though you'll pay for it through higher fees. Past performance doesn't predict future results; energy allocations should account for long-term commodity and regulatory trends.

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

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The metrics behind this comparison, explained in the Academy.

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