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Which Is the Better Energy ETF: State Street's Fossil Fuel XOP or iShares' Clean Energy ICLN?

The Motley Fool·
Which Is the Better Energy ETF: State Street's Fossil Fuel XOP or iShares' Clean Energy ICLN?

The article compares two energy ETFs with opposite strategies: XOP focuses on traditional fossil fuel producers with lower expenses (0.35%) and higher dividend yield (1.8%), while ICLN targets clean energy with 105 holdings and ESG screening. Over 5 years, XOP significantly outperformed ICLN ($2,517 vs $868 on $1,000 invested), though ICLN has rebounded recently as clean energy valuations normalized. XOP is recommended for income-focused investors seeking proven returns, while ICLN suits those betting on long-term energy transition.

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