NLY vs. FENY

Last updated Jul 16, 2026

NLY (Annaly Capital Management, Inc.) is a stock, while FENY (Fidelity MSCI Energy Index ETF) is Energy Equities fund tracking the MSCI USA IMI Energy 25/50 Index. Over the past 10 years, NLY returned 6.51%/yr vs 8.73%/yr for FENY. At a 0.28 correlation, their price movements are largely independent.

Performance

NLY vs. FENY - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Annaly Capital Management, Inc. (NLY) and Fidelity MSCI Energy Index ETF (FENY). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, NLY achieves a 10.69% return, which is significantly lower than FENY's 28.29% return. Over the past 10 years, NLY has underperformed FENY with an annualized return of 6.51%, while FENY has yielded a comparatively higher 8.73% annualized return.

NLY

• 1D: 0.65%
• 1M: 7.62%
• 6M: 6.09%
• YTD: 10.69%
• 1Y: 35.64%
• 3Y*: 20.13%
• 5Y*: 6.09%
• 10Y*: 6.51%

FENY

• 1D: -0.85%
• 1M: 2.43%
• 6M: 19.38%
• YTD: 28.29%
• 1Y: 34.59%
• 3Y*: 15.55%
• 5Y*: 22.74%
• 10Y*: 8.73%

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

NLY vs. FENY - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
NLY Annaly Capital Management, Inc.	10.69%	40.00%	8.07%	4.94%	-21.41%	2.48%	2.38%	7.22%	-7.22%	31.92%
FENY Fidelity MSCI Energy Index ETF	28.29%	7.27%	6.62%	-0.04%	62.94%	55.62%	-33.15%	9.11%	-19.99%	-2.30%

Correlation

The correlation between NLY and FENY is -0.13, meaning they tend to move in opposite directions. This is especially valuable for risk management - when one declines, the other has historically tended to hold steady or rise.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	-0.13
Correlation (3Y) Calculated over the trailing 3-year period	0.16
Correlation (5Y) Calculated over the trailing 5-year period	0.28
Correlation (10Y) Calculated over the trailing 10-year period	0.30
Correlation (All Time) Calculated using the full available price history since Oct 24, 2013	0.28

The correlation between NLY and FENY shifts across timeframes, from -0.13 (1 year) to 0.30 (10 years), reflecting how their relationship changes across market environments.

Return for Risk

NLY vs. FENY — Risk / Return Rank

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

NLY

NLY Risk / Return Rank: 86
NLY Sharpe Ratio Rank: 90
NLY Sortino Ratio Rank: 87
NLY Omega Ratio Rank: 85
NLY Calmar Ratio Rank: 82
NLY Martin Ratio Rank: 85

FENY

FENY Risk / Return Rank: 56
FENY Sharpe Ratio Rank: 63
FENY Sortino Ratio Rank: 58
FENY Omega Ratio Rank: 54
FENY Calmar Ratio Rank: 57
FENY 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.

NLY vs. FENY - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Annaly Capital Management, Inc. (NLY) and Fidelity MSCI Energy Index ETF (FENY). 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.

	NLY	FENY	Difference
Sharpe ratio: Return per unit of total volatility	1.85	1.67	+0.18
Sortino ratio: Return per unit of downside risk	2.54	2.22	+0.32
Omega ratio: Gain probability vs. loss probability	1.32	1.27	+0.04
Calmar ratio: Return relative to maximum drawdown	2.41	2.32	+0.08
Martin ratio: Return relative to average drawdown	6.92	6.34	+0.58

NLY vs. FENY - Sharpe Ratio Comparison

The current NLY Sharpe Ratio is 1.85, which is comparable to the FENY Sharpe Ratio of 1.67. The chart below compares the historical Sharpe Ratios of NLY and FENY, 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

NLY vs. FENY - Drawdown Comparison

The maximum NLY drawdown since its inception was -60.09%, smaller than the maximum FENY drawdown of -74.35%. Use the drawdown chart below to compare losses from any high point for NLY and FENY.

Drawdown Indicators

	NLY	FENY	Difference
Max Drawdown Largest peak-to-trough decline	-60.09%	-74.35%	+14.26%
Max Drawdown (1Y) Largest decline over 1 year	-14.88%	-14.96%	+0.08%
Max Drawdown (3Y) Largest decline over 3 years	-26.70%	-21.47%	-5.23%
Max Drawdown (5Y) Largest decline over 5 years	-50.21%	-26.64%	-23.57%
Max Drawdown (10Y) Largest decline over 10 years	-60.09%	-69.07%	+8.98%
Current Drawdown Current decline from peak	0.00%	-9.17%	+9.17%
Average Drawdown Average peak-to-trough decline	-13.79%	-23.01%	+9.22%
Ulcer Index Depth and duration of drawdowns from previous peaks	5.16%	5.47%	-0.31%

Volatility

NLY vs. FENY - Volatility Comparison

The current volatility for Annaly Capital Management, Inc. (NLY) is 5.25%, while Fidelity MSCI Energy Index ETF (FENY) has a volatility of 6.99%. This indicates that NLY experiences smaller price fluctuations and is considered to be less risky than FENY based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	NLY	FENY	Difference
Volatility (1M) Calculated over the trailing 1-month period	5.25%	6.99%	-1.74%
Volatility (6M) Calculated over the trailing 6-month period	15.35%	16.58%	-1.23%
Volatility (1Y) Calculated over the trailing 1-year period	19.41%	20.88%	-1.47%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	25.57%	26.34%	-0.77%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	28.17%	29.79%	-1.62%

Dividends

NLY vs. FENY - Dividend Comparison

NLY's dividend yield for the trailing twelve months is around 12.31%, more than FENY's 2.48% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
FENY Fidelity MSCI Energy Index ETF	2.48%	3.18%	3.05%	3.33%	3.33%	3.69%	4.60%	6.43%	3.21%	2.94%	2.29%	3.05%
NLY Annaly Capital Management, Inc.	12.31%	12.52%	14.21%	13.42%	16.70%	11.25%	10.77%	11.15%	12.22%	10.09%	12.04%	12.79%

Frequently Asked Questions

Can I hold both NLY and FENY in my portfolio?

NLY and FENY have a correlation of -0.13, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, NLY or FENY?

FENY has higher volatility (6.99%) compared to NLY (5.25%). In terms of maximum drawdown, NLY dropped -60.09% vs FENY's -74.35%.

Which has better risk-adjusted returns?

NLY currently has the higher Sharpe Ratio (1.85 vs 1.67), 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.