FCG vs. IEO

Last updated Jun 23, 2026

FCG (First Trust Natural Gas ETF) and IEO (iShares U.S. Oil & Gas Exploration & Production ETF) are both Energy Equities funds - FCG tracks the ISE-Revere Natural Gas Index while IEO tracks the Dow Jones U.S. Select Oil Exploration & Production Index. Both are passively managed. Over the past 10 years, FCG returned 3.88%/yr vs 9.65%/yr for IEO. Their correlation of 0.94 suggests significant overlap in exposure. FCG charges 0.60%/yr vs 0.42%/yr for IEO.

Performance

FCG vs. IEO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in First Trust Natural Gas ETF (FCG) and iShares U.S. Oil & Gas Exploration & Production ETF (IEO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, FCG achieves a 17.24% return, which is significantly lower than IEO's 23.98% return. Over the past 10 years, FCG has underperformed IEO with an annualized return of 3.88%, while IEO has yielded a comparatively higher 9.65% annualized return.

FCG

• 1D: 1.64%
• 1M: -9.95%
• YTD: 17.24%
• 6M: 18.20%
• 1Y: 12.39%
• 3Y*: 10.11%
• 5Y*: 14.16%
• 10Y*: 3.88%

IEO

• 1D: 2.04%
• 1M: -7.55%
• YTD: 23.98%
• 6M: 24.56%
• 1Y: 20.16%
• 3Y*: 13.42%
• 5Y*: 17.17%
• 10Y*: 9.65%

*Multi-year figures are annualized to reflect compound growth (CAGR)

FCG vs. IEO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FCG First Trust Natural Gas ETF	17.24%	-2.28%	4.16%	2.55%	47.24%	98.49%	-23.20%	-15.76%	-34.81%	-11.38%
IEO iShares U.S. Oil & Gas Exploration & Production ETF	23.98%	2.15%	-1.45%	3.57%	57.82%	75.57%	-32.77%	9.63%	-19.44%	0.33%

Correlation

The correlation between FCG and IEO is 0.96 - these two move nearly in lockstep. At this level, holding both provides almost no diversification benefit. If you already own one, adding the other does little to reduce portfolio risk.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.96
Correlation (3Y) Calculated over the trailing 3-year period	0.95
Correlation (5Y) Calculated over the trailing 5-year period	0.96
Correlation (10Y) Calculated over the trailing 10-year period	0.95
Correlation (All Time) Calculated using the full available price history since May 11, 2007	0.94

The correlation between FCG and IEO has been stable across timeframes, ranging from 0.94 to 0.96 - a consistent structural relationship.

FCG vs. IEO - Sectors Allocation Comparison

Sectors	FCG	IEO
Energy	99.0%	99.3%
Technology	1.0%	-
Basic Materials	-	0.7%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

FCG vs. IEO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

FCG

FCG Risk / Return Rank: 16
FCG Sharpe Ratio Rank: 15
FCG Sortino Ratio Rank: 15
FCG Omega Ratio Rank: 15
FCG Calmar Ratio Rank: 17
FCG Martin Ratio Rank: 19

IEO

IEO Risk / Return Rank: 24
IEO Sharpe Ratio Rank: 23
IEO Sortino Ratio Rank: 22
IEO Omega Ratio Rank: 21
IEO Calmar Ratio Rank: 26
IEO Martin Ratio Rank: 27

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

FCG vs. IEO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Natural Gas ETF (FCG) and iShares U.S. Oil & Gas Exploration & Production ETF (IEO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

Values are calculated on a 1-year rolling basis and updated daily. Risk-adjusted metrics are more stable over longer periods — use the period switch above to explore them.

	FCG	IEO	Difference
Sharpe ratio: Return per unit of total volatility	0.46	0.79	-0.33
Sortino ratio: Return per unit of downside risk	0.77	1.18	-0.41
Omega ratio: Gain probability vs. loss probability	1.09	1.14	-0.05
Calmar ratio: Return relative to maximum drawdown	0.70	1.24	-0.55
Martin ratio: Return relative to average drawdown	2.05	3.49	-1.44

FCG vs. IEO - Sharpe Ratio Comparison

The current FCG Sharpe Ratio is 0.46, which is lower than the IEO Sharpe Ratio of 0.79. The chart below compares the historical Sharpe Ratios of FCG and IEO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Drawdowns

FCG vs. IEO - Drawdown Comparison

The maximum FCG drawdown since its inception was -97.20%, which is greater than IEO's maximum drawdown of -79.17%. Use the drawdown chart below to compare losses from any high point for FCG and IEO.

Drawdown Indicators

	FCG	IEO	Difference
Max Drawdown Largest peak-to-trough decline	-97.20%	-79.17%	-18.03%
Max Drawdown (1Y) Largest decline over 1 year	-17.90%	-16.32%	-1.58%
Max Drawdown (3Y) Largest decline over 3 years	-29.44%	-31.46%	+2.02%
Max Drawdown (5Y) Largest decline over 5 years	-33.33%	-31.46%	-1.87%
Max Drawdown (10Y) Largest decline over 10 years	-85.04%	-75.00%	-10.04%
Current Drawdown Current decline from peak	-76.36%	-14.61%	-61.75%
Average Drawdown Average peak-to-trough decline	-65.39%	-26.23%	-39.16%
Ulcer Index Depth and duration of drawdowns from previous peaks	6.68%	5.88%	+0.80%

Volatility

FCG vs. IEO - Volatility Comparison

First Trust Natural Gas ETF (FCG) has a higher volatility of 9.37% compared to iShares U.S. Oil & Gas Exploration & Production ETF (IEO) at 8.79%. This indicates that FCG's price experiences larger fluctuations and is considered to be riskier than IEO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FCG	IEO	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.37%	8.79%	+0.58%
Volatility (6M) Calculated over the trailing 6-month period	20.54%	20.20%	+0.34%
Volatility (1Y) Calculated over the trailing 1-year period	27.35%	25.71%	+1.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.43%	30.53%	+2.90%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.32%	35.02%	+3.30%

FCG vs. IEO - Expense Ratio Comparison

FCG has a 0.60% expense ratio, which is higher than IEO's 0.42% expense ratio.

Dividends

FCG vs. IEO - Dividend Comparison

FCG's dividend yield for the trailing twelve months is around 2.34%, more than IEO's 2.13% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FCG First Trust Natural Gas ETF	2.34%	2.86%	2.76%	3.25%	3.04%	1.73%	3.82%	2.87%	1.46%	1.56%	1.70%	4.79%
IEO iShares U.S. Oil & Gas Exploration & Production ETF	2.13%	2.61%	2.63%	3.00%	3.77%	2.62%	3.17%	1.85%	1.67%	0.94%	0.98%	2.03%

Frequently Asked Questions

Can I hold both FCG and IEO in my portfolio?

With a correlation of 0.96, FCG and IEO move almost identically. Holding both adds very little diversification - you're essentially doubling your position in the same market segment. Choosing one is usually more capital-efficient.

Which is riskier, FCG or IEO?

FCG has higher volatility (9.37%) compared to IEO (8.79%). In terms of maximum drawdown, FCG dropped -97.20% vs IEO's -79.17%.

Which ETF is better, FCG or IEO?

On 10-year performance, IEO leads with 9.65% vs 3.88% for FCG. On fees, IEO is cheaper at 0.42% per year. On volatility, IEO has been the lower-risk option at 8.79%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FCG or IEO?

Over the 10-year period, IEO has performed better with a 9.65% return vs 3.88%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FCG or IEO?

IEO is cheaper with a 0.42% expense ratio, compared with 0.60% for FCG.

Which ETF pays a higher dividend yield, FCG or IEO?

FCG has the higher dividend yield at 2.34%, compared with 2.13% for IEO.

What is the main difference between FCG and IEO?

FCG tracks ISE-Revere Natural Gas Index, while IEO tracks Dow Jones U.S. Select Oil Exploration & Production Index. They also come from different issuers: First Trust and iShares. Their fees differ too: 0.60% for FCG and 0.42% for IEO.

Which has better risk-adjusted returns?

IEO currently has the higher Sharpe Ratio (0.79 vs 0.46), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.