IYE vs. XOP

Last updated Jun 5, 2026

IYE (iShares U.S. Energy ETF) and XOP (SPDR S&P Oil & Gas Exploration & Production ETF) are both Energy Equities funds - IYE tracks the Dow Jones U.S. Oil & Gas Index while XOP tracks the S&P Oil & Gas Exploration & Production Select Industry. Both are passively managed. Over the past 10 years, IYE returned 8.76%/yr vs 3.52%/yr for XOP. Their correlation of 0.92 suggests significant overlap in exposure. IYE charges 0.42%/yr vs 0.35%/yr for XOP.

Performance

IYE vs. XOP - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in iShares U.S. Energy ETF (IYE) 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, IYE achieves a 31.95% return, which is significantly lower than XOP's 35.99% return. Over the past 10 years, IYE has outperformed XOP with an annualized return of 8.76%, while XOP has yielded a comparatively lower 3.52% annualized return.

IYE

• 1D: 0.03%
• 1M: -1.09%
• YTD: 31.95%
• 6M: 28.91%
• 1Y: 46.86%
• 3Y*: 17.38%
• 5Y*: 19.52%
• 10Y*: 8.76%

XOP

• 1D: -0.06%
• 1M: -5.30%
• YTD: 35.99%
• 6M: 26.73%
• 1Y: 45.20%
• 3Y*: 14.61%
• 5Y*: 14.84%
• 10Y*: 3.52%

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

IYE vs. XOP - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
IYE iShares U.S. Energy ETF	31.95%	7.33%	6.06%	-2.21%	60.21%	53.42%	-33.49%	10.03%	-19.37%	-1.80%
XOP SPDR S&P Oil & Gas Exploration & Production ETF	35.99%	-2.15%	-1.00%	3.56%	45.37%	66.74%	-36.40%	-9.44%	-28.10%	-9.47%

Correlation

The correlation between IYE and XOP is 0.89, indicating a strong positive relationship between their price movements. Combining them offers limited diversification - they tend to fall together during downturns.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.89
Correlation (3Y) Calculated over the trailing 3-year period	0.91
Correlation (5Y) Calculated over the trailing 5-year period	0.93
Correlation (10Y) Calculated over the trailing 10-year period	0.92
Correlation (All Time) Calculated using the full available price history since Jun 23, 2006	0.92

The correlation between IYE and XOP has been stable across timeframes, ranging from 0.89 to 0.93 - a consistent structural relationship.

IYE vs. XOP - Sectors Allocation Comparison

Sectors	IYE	XOP
Energy	98.9%	97.2%
Technology	1.1%	-
Basic Materials	-	2.9%
Communication Services	-	-
Consumer Cyclical	-	-
Consumer Defensive	-	-
Financial Services	-	-
Healthcare	-	-
Industrials	-	-
Real Estate	-	-
Utilities	-	-

Return for Risk

IYE vs. XOP — Risk / Return Rank

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

IYE

IYE Risk / Return Rank: 69
IYE Sharpe Ratio Rank: 73
IYE Sortino Ratio Rank: 67
IYE Omega Ratio Rank: 64
IYE Calmar Ratio Rank: 78
IYE Martin Ratio Rank: 65

XOP

XOP Risk / Return Rank: 49
XOP Sharpe Ratio Rank: 49
XOP Sortino Ratio Rank: 43
XOP Omega Ratio Rank: 43
XOP Calmar Ratio Rank: 61
XOP Martin Ratio Rank: 47

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.

IYE vs. XOP - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for iShares U.S. Energy ETF (IYE) 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.

	IYE	XOP	Difference
Sharpe ratio: Return per unit of total volatility	2.37	1.64	+0.73
Sortino ratio: Return per unit of downside risk	3.03	2.14	+0.89
Omega ratio: Gain probability vs. loss probability	1.38	1.27	+0.11
Calmar ratio: Return relative to maximum drawdown	3.95	3.00	+0.95
Martin ratio: Return relative to average drawdown	11.64	7.66	+3.99
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

IYE vs. XOP - Sharpe Ratio Comparison

The current IYE Sharpe Ratio is 2.37, which is higher than the XOP Sharpe Ratio of 1.64. The chart below compares the historical Sharpe Ratios of IYE 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

	IYE	XOP	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	2.37	1.64	+0.73
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.76	0.44	+0.32
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.30	0.09	+0.21
Sharpe Ratio (All Time) Calculated using the full available price history	0.26	0.06	+0.20

Drawdowns

IYE vs. XOP - Drawdown Comparison

The maximum IYE drawdown since its inception was -73.74%, smaller than the maximum XOP drawdown of -90.27%. Use the drawdown chart below to compare losses from any high point for IYE and XOP.

Drawdown Indicators

	IYE	XOP	Difference
Max Drawdown Largest peak-to-trough decline	-73.74%	-90.27%	+16.53%
Max Drawdown (1Y) Largest decline over 1 year	-11.92%	-15.14%	+3.22%
Max Drawdown (3Y) Largest decline over 3 years	-20.37%	-34.98%	+14.61%
Max Drawdown (5Y) Largest decline over 5 years	-25.61%	-34.98%	+9.37%
Max Drawdown (10Y) Largest decline over 10 years	-68.59%	-82.61%	+14.02%
Current Drawdown Current decline from peak	-5.74%	-36.44%	+30.70%
Average Drawdown Average peak-to-trough decline	-19.36%	-42.59%	+23.23%
Ulcer Index Depth and duration of drawdowns from previous peaks	4.04%	5.92%	-1.88%

Volatility

IYE vs. XOP - Volatility Comparison

The current volatility for iShares U.S. Energy ETF (IYE) is 7.92%, while SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has a volatility of 10.03%. This indicates that IYE 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

	IYE	XOP	Difference
Volatility (1M) Calculated over the trailing 1-month period	7.92%	10.03%	-2.11%
Volatility (6M) Calculated over the trailing 6-month period	16.06%	21.57%	-5.51%
Volatility (1Y) Calculated over the trailing 1-year period	19.96%	27.74%	-7.78%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.71%	33.88%	-8.17%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	29.51%	40.27%	-10.76%

IYE vs. XOP - Expense Ratio Comparison

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

Dividends

IYE vs. XOP - Dividend Comparison

IYE's dividend yield for the trailing twelve months is around 2.13%, more than XOP's 1.90% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
IYE iShares U.S. Energy ETF	2.13%	2.85%	2.75%	2.99%	3.37%	2.98%	4.75%	6.60%	3.16%	2.66%	2.11%	3.39%
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 IYE and XOP in my portfolio?

IYE and XOP have a correlation of 0.89, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, IYE or XOP?

XOP has higher volatility (10.03%) compared to IYE (7.92%). In terms of maximum drawdown, IYE dropped -73.74% vs XOP's -90.27%.

Which ETF is better, IYE or XOP?

On 10-year performance, IYE leads with 8.76% vs 3.52% for XOP. On fees, XOP is cheaper at 0.35% per year. On volatility, IYE has been the lower-risk option at 7.92%. The better choice depends on whether you care most about return, fees, risk, or income.

Which ETF has performed better, IYE or XOP?

Over the 10-year period, IYE has performed better with a 8.76% return vs 3.52%. Past performance does not guarantee future results, so compare this with risk, fees, and fund exposure.

Which ETF is cheaper, IYE or XOP?

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

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

IYE has the higher dividend yield at 2.13%, compared with 1.90% for XOP.

What is the main difference between IYE and XOP?

IYE tracks Dow Jones U.S. Oil & Gas 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 IYE and 0.35% for XOP.

Which has better risk-adjusted returns?

IYE currently has the higher Sharpe Ratio (2.37 vs 1.64), 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.