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Should You Invest in the Fidelity MSCI Materials Index ETF (FMAT)?
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Launched on 10/21/2013, the Fidelity MSCI Materials Index ETF (FMAT - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Materials - Broad segment of the U.S. equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $285.23 M, making it one of the average sized ETFs attempting to match the performance of the Materials - Broad segment of the U.S. equity market. FMAT seeks to match the performance of the MSCI USA IMI Materials Index before fees and expenses.
MSCI USA IMI Materials Index represents the performance of the materials 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 1.64%.
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 Materials sector--about 99.90% of the portfolio.
Looking at individual holdings, Dowdupont Inc accounts for about 16.77% of total assets, followed by Monsanto Co and Praxair Inc (PX - Free Report) .
The top 10 holdings account for about 51.25% of total assets under management.
Performance and Risk
Year-to-date, the Fidelity MSCI Materials Index ETF has lost about -4.36% so far, and is up roughly 10.19% over the last 12 months (as of 04/25/2018). FMAT has traded between $30.14 and $37.07 in this past 52-week period.
The ETF has a beta of 1.29 and standard deviation of 16.68% for the trailing three-year period, making it a medium risk choice in the space. With about 118 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Materials Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FMAT is a good option for those seeking exposure to the Materials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Materials Select Sector SPDR Fund (XLB - Free Report) tracks Materials Select Sector Index and the FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR - Free Report) tracks Morningstar Global Upstream Natural Resources Index. Materials Select Sector SPDR Fund has $5 B in assets, FlexShares Morningstar Global Upstream Natural Resources Index Fund has $5.61 B. XLB has an expense ratio of 0.13% and GUNR charges 0.46%.
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 Materials Index ETF (FMAT)?
Launched on 10/21/2013, the Fidelity MSCI Materials Index ETF (FMAT - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Materials - Broad segment of the U.S. equity market.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 2, placing it in top 13%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $285.23 M, making it one of the average sized ETFs attempting to match the performance of the Materials - Broad segment of the U.S. equity market. FMAT seeks to match the performance of the MSCI USA IMI Materials Index before fees and expenses.
MSCI USA IMI Materials Index represents the performance of the materials 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 1.64%.
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 Materials sector--about 99.90% of the portfolio.
Looking at individual holdings, Dowdupont Inc accounts for about 16.77% of total assets, followed by Monsanto Co and Praxair Inc (PX - Free Report) .
The top 10 holdings account for about 51.25% of total assets under management.
Performance and Risk
Year-to-date, the Fidelity MSCI Materials Index ETF has lost about -4.36% so far, and is up roughly 10.19% over the last 12 months (as of 04/25/2018). FMAT has traded between $30.14 and $37.07 in this past 52-week period.
The ETF has a beta of 1.29 and standard deviation of 16.68% for the trailing three-year period, making it a medium risk choice in the space. With about 118 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Materials Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FMAT is a good option for those seeking exposure to the Materials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Materials Select Sector SPDR Fund (XLB - Free Report) tracks Materials Select Sector Index and the FlexShares Morningstar Global Upstream Natural Resources Index Fund (GUNR - Free Report) tracks Morningstar Global Upstream Natural Resources Index. Materials Select Sector SPDR Fund has $5 B in assets, FlexShares Morningstar Global Upstream Natural Resources Index Fund has $5.61 B. XLB has an expense ratio of 0.13% and GUNR charges 0.46%.
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.