Designed to provide broad exposure to the Consumer Staples - Broad segment of the equity market, the Fidelity MSCI Consumer Staples Index ETF (
FSTA Quick Quote FSTA - Free Report) is a passively managed exchange traded fund launched on 10/21/2013.
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.
Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 15, placing it in bottom 6%.
The fund is sponsored by Fidelity. It has amassed assets over $881.89 million, making it one of the larger ETFs attempting to match the performance of the Consumer Staples - Broad segment of the equity market. FSTA seeks to match the performance of the MSCI USA IMI Consumer Staples Index before fees and expenses.
MSCI USA IMI Consumer Staples Index represents the performance of the consumer staples sector in the U.S. equity market.
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are the same.
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 2.35%.
Sector Exposure and Top Holdings
It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.
Looking at individual holdings, Procter + Gamble Co/the Common Stock accounts for about 13.65% of total assets, followed by Coca Cola Co/the Common Stock Usd.25 (
PG Quick Quote PG - Free Report) and Walmart Inc Common Stock Usd.1 ( KO Quick Quote KO - Free Report) .
The top 10 holdings account for about 61.80% of total assets under management.
Performance and Risk
The ETF has added roughly 7.01% and is up about 27.71% so far this year and in the past one year (as of 04/22/2021), respectively. FSTA has traded between $33.71 and $42.81 during this last 52-week period.
The ETF has a beta of 0.64 and standard deviation of 18.60% for the trailing three-year period, making it a medium risk choice in the space. With about 99 holdings, it effectively diversifies company-specific risk.
Fidelity MSCI Consumer Staples 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, FSTA is a good option for those seeking exposure to the Consumer Staples ETFs area of the market. Investors might also want to consider some other ETF options in the space.
Vanguard Consumer Staples ETF (
VDC Quick Quote VDC - Free Report) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the Consumer Staples Select Sector SPDR ETF ( XLP Quick Quote XLP - Free Report) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples ETF has $5.61 billion in assets, Consumer Staples Select Sector SPDR ETF has $10.72 billion. VDC has an expense ratio of 0.10% and XLP charges 0.12%. Bottom Line
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