FCG vs. XOP

Last updated Jun 4, 2026

FCG (First Trust Natural Gas ETF) and XOP (SPDR S&P Oil & Gas Exploration & Production ETF) are both Energy Equities funds - FCG tracks the ISE-Revere Natural Gas Index while XOP tracks the S&P Oil & Gas Exploration & Production Select Industry. Both are passively managed. Over the past 10 years, FCG returned 4.65%/yr vs 3.80%/yr for XOP. With a 0.96 correlation, they move nearly in lockstep. FCG charges 0.60%/yr vs 0.35%/yr for XOP.

Performance

FCG vs. XOP - Performance Comparison

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

Returns By Period

In the year-to-date period, FCG achieves a 27.71% return, which is significantly lower than XOP's 36.08% return. Over the past 10 years, FCG has outperformed XOP with an annualized return of 4.65%, while XOP has yielded a comparatively lower 3.80% annualized return.

FCG

• 1D: 1.02%
• 1M: -6.03%
• YTD: 27.71%
• 6M: 20.12%
• 1Y: 32.99%
• 3Y*: 12.75%
• 5Y*: 16.52%
• 10Y*: 4.65%

XOP

• 1D: 1.35%
• 1M: -5.46%
• YTD: 36.08%
• 6M: 26.81%
• 1Y: 41.73%
• 3Y*: 14.10%
• 5Y*: 14.86%
• 10Y*: 3.80%

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

FCG vs. XOP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
FCG First Trust Natural Gas ETF	27.71%	-2.28%	4.16%	2.55%	47.24%	98.49%	-23.20%	-15.76%	-34.81%	-11.38%
XOP SPDR S&P Oil & Gas Exploration & Production ETF	36.08%	-2.15%	-1.00%	3.56%	45.37%	66.74%	-36.40%	-9.44%	-28.10%	-9.47%

Correlation

The correlation between FCG and XOP is 0.97 - 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	0.97
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.98
Correlation (10Y) Calculated over the trailing 10-year period	0.98
Correlation (All Time) Calculated using the full available price history since May 14, 2007	0.96

The correlation between FCG and XOP has been stable across timeframes, ranging from 0.96 to 0.98 - a consistent structural relationship.

FCG vs. XOP - Sectors Allocation Comparison

Sectors	FCG	XOP
Energy	99.2%	97.2%
Technology	0.8%	-
Basic Materials	-	2.9%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

FCG vs. XOP — Risk / Return Rank

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

FCG

FCG Risk / Return Rank: 36
FCG Sharpe Ratio Rank: 34
FCG Sortino Ratio Rank: 31
FCG Omega Ratio Rank: 30
FCG Calmar Ratio Rank: 51
FCG Martin Ratio Rank: 36

XOP

XOP Risk / Return Rank: 43
XOP Sharpe Ratio Rank: 42
XOP Sortino Ratio Rank: 38
XOP Omega Ratio Rank: 37
XOP Calmar Ratio Rank: 55
XOP Martin Ratio Rank: 43

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. XOP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for First Trust Natural Gas ETF (FCG) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP). 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.

	FCG	XOP	Difference
Sharpe ratio: Return per unit of total volatility	1.24	1.51	-0.27
Sortino ratio: Return per unit of downside risk	1.69	2.00	-0.30
Omega ratio: Gain probability vs. loss probability	1.21	1.25	-0.04
Calmar ratio: Return relative to maximum drawdown	2.54	2.77	-0.23
Martin ratio: Return relative to average drawdown	5.56	7.10	-1.54
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

FCG vs. XOP - Sharpe Ratio Comparison

The current FCG Sharpe Ratio is 1.24, which is comparable to the XOP Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of FCG and XOP, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	FCG	XOP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.24	1.51	-0.27
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.50	0.44	+0.06
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.12	0.09	+0.03
Sharpe Ratio (All Time) Calculated using the full available price history	-0.11	0.06	-0.17

Drawdowns

FCG vs. XOP - Drawdown Comparison

The maximum FCG drawdown since its inception was -97.20%, which is greater than XOP's maximum drawdown of -90.27%. Use the drawdown chart below to compare losses from any high point for FCG and XOP.

Drawdown Indicators

	FCG	XOP	Difference
Max Drawdown Largest peak-to-trough decline	-97.20%	-90.27%	-6.93%
Max Drawdown (1Y) Largest decline over 1 year	-13.07%	-15.14%	+2.07%
Max Drawdown (3Y) Largest decline over 3 years	-29.44%	-34.98%	+5.54%
Max Drawdown (5Y) Largest decline over 5 years	-33.33%	-34.98%	+1.65%
Max Drawdown (10Y) Largest decline over 10 years	-85.04%	-82.61%	-2.43%
Current Drawdown Current decline from peak	-74.25%	-36.40%	-37.85%
Average Drawdown Average peak-to-trough decline	-65.38%	-42.59%	-22.79%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.95%	5.90%	+0.05%

Volatility

FCG vs. XOP - Volatility Comparison

First Trust Natural Gas ETF (FCG) and SPDR S&P Oil & Gas Exploration & Production ETF (XOP) have volatilities of 9.60% and 10.03%, respectively, indicating that both stocks experience similar levels of price fluctuations. This suggests that the risk associated with both stocks, as measured by volatility, is nearly the same. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	FCG	XOP	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.60%	10.03%	-0.43%
Volatility (6M) Calculated over the trailing 6-month period	20.15%	21.64%	-1.49%
Volatility (1Y) Calculated over the trailing 1-year period	26.75%	27.81%	-1.06%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	33.46%	33.88%	-0.42%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	38.30%	40.28%	-1.98%

FCG vs. XOP - Expense Ratio Comparison

FCG has a 0.60% expense ratio, which is higher than XOP's 0.35% expense ratio.

Dividends

FCG vs. XOP - Dividend Comparison

FCG's dividend yield for the trailing twelve months is around 2.15%, more than XOP's 1.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FCG First Trust Natural Gas ETF	2.15%	2.86%	2.76%	3.25%	3.04%	1.73%	3.82%	2.87%	1.46%	1.56%	1.70%	4.79%
XOP SPDR S&P Oil & Gas Exploration & Production ETF	1.90%	2.62%	2.45%	2.63%	2.47%	1.61%	2.34%	1.47%	0.99%	0.76%	0.76%	2.21%

Frequently Asked Questions

Can I hold both FCG and XOP in my portfolio?

With a correlation of 0.97, FCG and XOP 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 XOP?

XOP has higher volatility (10.03%) compared to FCG (9.60%). In terms of maximum drawdown, FCG dropped -97.20% vs XOP's -90.27%.

Which ETF is better, FCG or XOP?

On 10-year performance, FCG leads with 4.65% vs 3.80% for XOP. On fees, XOP is cheaper at 0.35% per year. On volatility, FCG has been the lower-risk option at 9.60%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, FCG or XOP?

Over the 10-year period, FCG has performed better with a 4.65% return vs 3.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, FCG or XOP?

XOP is cheaper with a 0.35% expense ratio, compared with 0.60% for FCG.

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

FCG has the higher dividend yield at 2.15%, compared with 1.90% for XOP.

What is the main difference between FCG and XOP?

FCG tracks ISE-Revere Natural Gas Index, while XOP tracks S&P Oil & Gas Exploration & Production Select Industry. They also come from different issuers: First Trust and State Street. Their fees differ too: 0.60% for FCG and 0.35% for XOP.

Which has better risk-adjusted returns?

XOP currently has the higher Sharpe Ratio (1.51 vs 1.24), 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.