XLE Is Cheaper and Pays More Than Solar and Clean‑Energy ETFs

Fee, size and holdings gaps mean investors must choose between dividend income from big oil or higher‑fee, higher‑volatility renewable bets.

Overview

State Street’s XLE charges an expense ratio of 0.08%, far lower than Invesco’s TAN at about 0.7% and iShares’ ICLN at about 0.39%, giving XLE a clear cost advantage.
XLE is much larger with roughly $39.5 billion in assets while ICLN holds about $2.4 billion and TAN sits between them, which affects liquidity and trading ease.
XLE is concentrated in a few large oil and gas names — ExxonMobil (20.3%), Chevron (14.4%) and ConocoPhillips (5.9%) — and holds 21 companies for pure sector exposure.
Clean‑energy ETFs take a thematic approach with broader technology, utility and industrial mixes, smaller top weights and more price volatility that can boost growth or deepen losses.
Those choosing between the funds should weigh objectives and mechanics: XLE offers income and scale as a sector index tracking big fossil‑fuel firms, while TAN and ICLN offer niche renewable exposure, higher fees, and greater sensitivity to policy and technology shifts.