The Fidelity MSCI Consumer Discretionary Index ETF (
FDIS Quick Quote FDIS - Free Report) was launched on 10/21/2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Consumer Discretionary - Broad segment of the 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.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 10, placing it in bottom 38%.
The fund is sponsored by Fidelity. It has amassed assets over $1.44 billion, making it one of the larger ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. FDIS seeks to match the performance of the MSCI USA IMI Consumer Discretionary Index before fees and expenses.
MSCI USA IMI Consumer Discretionary Index represents the performance of the consumer discretionary sector in the U.S. equity market.
When considering an ETF's total return, expense ratios are an important factor, and cheaper funds can significantly outperform their more expensive counterparts in the long term if all other factors remain equal.
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 0.50%.
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 Consumer Discretionary sector--about 98.70% of the portfolio.
Looking at individual holdings, Amazon.com Inc Common Stock Usd.01 (
AMZN Quick Quote AMZN - Free Report) accounts for about 21.07% of total assets, followed by Tesla Inc Common Stock Usd.001 ( TSLA Quick Quote TSLA - Free Report) and Home Depot Inc Common Stock Usd.05 ( HD Quick Quote HD - Free Report) .
The top 10 holdings account for about 56.63% of total assets under management.
Performance and Risk
The ETF has added roughly 6.21% so far this year and was up about 100.14% in the last one year (as of 03/30/2021). In that past 52-week period, it has traded between $35.43 and $77.85.
The ETF has a beta of 1.25 and standard deviation of 24.73% for the trailing three-year period, making it a medium risk choice in the space. With about 276 holdings, it effectively diversifies company-specific risk.
Fidelity MSCI Consumer Discretionary Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FDIS is an outstanding option for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.
Vanguard Consumer Discretionary ETF (
VCR Quick Quote VCR - Free Report) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the Consumer Discretionary Select Sector SPDR ETF ( XLY Quick Quote XLY - Free Report) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary ETF has $5.40 billion in assets, Consumer Discretionary Select Sector SPDR ETF has $19.03 billion. VCR has an expense ratio of 0.10% and XLY charges 0.12%. Bottom Line
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