IEO vs. XOP

Last updated Jun 4, 2026

IEO (iShares U.S. Oil & Gas Exploration & Production ETF) and XOP (SPDR S&P Oil & Gas Exploration & Production ETF) are both Energy Equities funds - IEO tracks the Dow Jones U.S. Select Oil Exploration & Production Index while XOP tracks the S&P Oil & Gas Exploration & Production Select Industry. Both are passively managed. Over the past 10 years, IEO returned 10.42%/yr vs 3.80%/yr for XOP. With a 0.97 correlation, they move nearly in lockstep. IEO charges 0.42%/yr vs 0.35%/yr for XOP.

Performance

IEO vs. XOP - Performance Comparison

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

Returns By Period

The year-to-date returns for both investments are quite close, with IEO having a 34.59% return and XOP slightly higher at 36.08%. Over the past 10 years, IEO has outperformed XOP with an annualized return of 10.42%, while XOP has yielded a comparatively lower 3.80% annualized return.

IEO

• 1D: 1.66%
• 1M: -3.23%
• YTD: 34.59%
• 6M: 26.42%
• 1Y: 40.11%
• 3Y*: 16.01%
• 5Y*: 18.96%
• 10Y*: 10.42%

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)

IEO vs. XOP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IEO iShares U.S. Oil & Gas Exploration & Production ETF	34.59%	2.15%	-1.45%	3.57%	57.82%	75.57%	-32.77%	9.63%	-19.44%	0.33%
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 IEO and XOP is 0.98 - 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	0.98
Correlation (3Y) Calculated over the trailing 3-year period	0.97
Correlation (5Y) Calculated over the trailing 5-year period	0.97
Correlation (10Y) Calculated over the trailing 10-year period	0.97
Correlation (All Time) Calculated using the full available price history since Jun 23, 2006	0.97

The correlation between IEO and XOP has been stable across timeframes, ranging from 0.97 to 0.98 - a consistent structural relationship.

IEO vs. XOP - Sectors Allocation Comparison

Sectors	IEO	XOP
Energy	99.3%	97.2%
Basic Materials	0.7%	2.9%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Technology	-	-
Utilities	-	-

Return for Risk

IEO vs. XOP — Risk / Return Rank

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

IEO

IEO Risk / Return Rank: 45
IEO Sharpe Ratio Rank: 45
IEO Sortino Ratio Rank: 41
IEO Omega Ratio Rank: 40
IEO Calmar Ratio Rank: 56
IEO Martin Ratio Rank: 45

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.

IEO vs. XOP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Oil & Gas Exploration & Production ETF (IEO) 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.

	IEO	XOP	Difference
Sharpe ratio: Return per unit of total volatility	1.61	1.51	+0.09
Sortino ratio: Return per unit of downside risk	2.12	2.00	+0.12
Omega ratio: Gain probability vs. loss probability	1.26	1.25	+0.01
Calmar ratio: Return relative to maximum drawdown	2.82	2.77	+0.05
Martin ratio: Return relative to average drawdown	7.63	7.10	+0.53
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IEO vs. XOP - Sharpe Ratio Comparison

The current IEO Sharpe Ratio is 1.61, which is comparable to the XOP Sharpe Ratio of 1.51. The chart below compares the historical Sharpe Ratios of IEO 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

	IEO	XOP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.61	1.51	+0.09
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.62	0.44	+0.18
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	0.09	+0.20
Sharpe Ratio (All Time) Calculated using the full available price history	0.17	0.06	+0.11

Drawdowns

IEO vs. XOP - Drawdown Comparison

The maximum IEO drawdown since its inception was -79.17%, smaller than the maximum XOP drawdown of -90.27%. Use the drawdown chart below to compare losses from any high point for IEO and XOP.

Drawdown Indicators

	IEO	XOP	Difference
Max Drawdown Largest peak-to-trough decline	-79.17%	-90.27%	+11.10%
Max Drawdown (1Y) Largest decline over 1 year	-14.30%	-15.14%	+0.84%
Max Drawdown (3Y) Largest decline over 3 years	-31.46%	-34.98%	+3.52%
Max Drawdown (5Y) Largest decline over 5 years	-31.46%	-34.98%	+3.52%
Max Drawdown (10Y) Largest decline over 10 years	-75.00%	-82.61%	+7.61%
Current Drawdown Current decline from peak	-7.30%	-36.40%	+29.10%
Average Drawdown Average peak-to-trough decline	-26.27%	-42.59%	+16.32%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.28%	5.90%	-0.62%

Volatility

IEO vs. XOP - Volatility Comparison

The current volatility for iShares U.S. Oil & Gas Exploration & Production ETF (IEO) is 9.32%, while SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has a volatility of 10.03%. This indicates that IEO experiences smaller price fluctuations and is considered to be less risky than XOP based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	IEO	XOP	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.32%	10.03%	-0.71%
Volatility (6M) Calculated over the trailing 6-month period	19.86%	21.64%	-1.78%
Volatility (1Y) Calculated over the trailing 1-year period	25.15%	27.81%	-2.66%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	30.54%	33.88%	-3.34%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	35.00%	40.28%	-5.28%

IEO vs. XOP - Expense Ratio Comparison

IEO has a 0.42% expense ratio, which is higher than XOP's 0.35% expense ratio.

Dividends

IEO vs. XOP - Dividend Comparison

IEO's dividend yield for the trailing twelve months is around 1.97%, more than XOP's 1.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IEO iShares U.S. Oil & Gas Exploration & Production ETF	1.97%	2.61%	2.63%	3.00%	3.77%	2.62%	3.17%	1.85%	1.67%	0.94%	0.98%	2.03%
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 IEO and XOP in my portfolio?

With a correlation of 0.98, IEO 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, IEO or XOP?

XOP has higher volatility (10.03%) compared to IEO (9.32%). In terms of maximum drawdown, IEO dropped -79.17% vs XOP's -90.27%.

Which ETF is better, IEO or XOP?

On 10-year performance, IEO leads with 10.42% vs 3.80% for XOP. On fees, XOP is cheaper at 0.35% per year. On volatility, IEO has been the lower-risk option at 9.32%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IEO or XOP?

Over the 10-year period, IEO has performed better with a 10.42% return vs 3.80%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IEO or XOP?

XOP is cheaper with a 0.35% expense ratio, compared with 0.42% for IEO.

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

IEO has the higher dividend yield at 1.97%, compared with 1.90% for XOP.

What is the main difference between IEO and XOP?

IEO tracks Dow Jones U.S. Select Oil Exploration & Production Index, while XOP tracks S&P Oil & Gas Exploration & Production Select Industry. They also come from different issuers: iShares and State Street. Their fees differ too: 0.42% for IEO and 0.35% for XOP.

Which has better risk-adjusted returns?

IEO currently has the higher Sharpe Ratio (1.61 vs 1.51), 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.