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Should You Invest in the Fidelity MSCI Industrials Index ETF (FIDU)?
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Launched on 10/21/2013, the Fidelity MSCI Industrials Index ETF (FIDU - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $392.19 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. FIDU seeks to match the performance of the MSCI USA IMI Industrials Index before fees and expenses.
MSCI USA IMI Industrials Index represents the performance of the industrial sector in the U.S. equity market.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.
It has a 12-month trailing dividend yield of 1.73%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 99.90% of the portfolio.
Looking at individual holdings, Union Pacific Corp (UNP - Free Report) accounts for about 4.30% of total assets, followed by Honeywell International Inc (HON - Free Report) and United Parcel Service Cl B (UPS - Free Report) .
The top 10 holdings account for about 31.32% of total assets under management.
Performance and Risk
Year-to-date, the Fidelity MSCI Industrials Index ETF has lost about -3.06% so far, and it's up approximately 6.15% over the last 12 months (as of 09/07/2020). FIDU has traded between $25.14 and $43.87 in this past 52-week period.
The ETF has a beta of 1.19 and standard deviation of 25.94% for the trailing three-year period, making it a medium risk choice in the space. With about 337 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Industrials Index ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. FIDU, then, is not the best option for investors seeking exposure to the Industrials ETFs segment of the market. Instead, there are better ETFs in the space to consider.
Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $3.09 billion in assets, Industrial Select Sector SPDR ETF has $11.53 billion. VIS has an expense ratio of 0.10% and XLI charges 0.13%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.
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Should You Invest in the Fidelity MSCI Industrials Index ETF (FIDU)?
Launched on 10/21/2013, the Fidelity MSCI Industrials Index ETF (FIDU - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Industrials - Broad segment of the equity market.
While an excellent vehicle for long term investors, passively managed ETFs are a popular choice among institutional and retail investors due to their low costs, transparency, flexibility, and tax efficiency.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $392.19 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. FIDU seeks to match the performance of the MSCI USA IMI Industrials Index before fees and expenses.
MSCI USA IMI Industrials Index represents the performance of the industrial sector in the U.S. equity market.
Costs
Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.
Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.
It has a 12-month trailing dividend yield of 1.73%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 99.90% of the portfolio.
Looking at individual holdings, Union Pacific Corp (UNP - Free Report) accounts for about 4.30% of total assets, followed by Honeywell International Inc (HON - Free Report) and United Parcel Service Cl B (UPS - Free Report) .
The top 10 holdings account for about 31.32% of total assets under management.
Performance and Risk
Year-to-date, the Fidelity MSCI Industrials Index ETF has lost about -3.06% so far, and it's up approximately 6.15% over the last 12 months (as of 09/07/2020). FIDU has traded between $25.14 and $43.87 in this past 52-week period.
The ETF has a beta of 1.19 and standard deviation of 25.94% for the trailing three-year period, making it a medium risk choice in the space. With about 337 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Industrials Index ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. FIDU, then, is not the best option for investors seeking exposure to the Industrials ETFs segment of the market. Instead, there are better ETFs in the space to consider.
Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $3.09 billion in assets, Industrial Select Sector SPDR ETF has $11.53 billion. VIS has an expense ratio of 0.10% and XLI charges 0.13%.
Bottom Line
To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.