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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.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $639.58 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.
The MSCI USA IMI Industrials Index represents the performance of the industrial sector in the U.S. equity market.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 1.51%.
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 Common Stock Usd2.5 (UNP - Free Report) accounts for about 4.08% of total assets, followed by United Parcel Service Cl B Common Stock Usd.01 (UPS - Free Report) and Raytheon Technologies Corp Common Stock Usd1.0 (RTX - Free Report) .
The top 10 holdings account for about 31% of total assets under management.
Performance and Risk
The ETF has lost about -13.59% and is down about -13.22% so far this year and in the past one year (as of 10/26/2022), respectively. FIDU has traded between $43.68 and $57.46 during this last 52-week period.
The ETF has a beta of 1.13 and standard deviation of 27.56% for the trailing three-year period, making it a medium risk choice in the space. With about 375 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Industrials 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, FIDU is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $3.39 billion in assets, Industrial Select Sector SPDR ETF has $12.20 billion. VIS has an expense ratio of 0.10% and XLI charges 0.10%.
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.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds 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. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 11, placing it in bottom 31%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $639.58 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.
The MSCI USA IMI Industrials Index represents the performance of the industrial sector in the U.S. equity market.
Costs
Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 1.51%.
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 Common Stock Usd2.5 (UNP - Free Report) accounts for about 4.08% of total assets, followed by United Parcel Service Cl B Common Stock Usd.01 (UPS - Free Report) and Raytheon Technologies Corp Common Stock Usd1.0 (RTX - Free Report) .
The top 10 holdings account for about 31% of total assets under management.
Performance and Risk
The ETF has lost about -13.59% and is down about -13.22% so far this year and in the past one year (as of 10/26/2022), respectively. FIDU has traded between $43.68 and $57.46 during this last 52-week period.
The ETF has a beta of 1.13 and standard deviation of 27.56% for the trailing three-year period, making it a medium risk choice in the space. With about 375 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Industrials 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, FIDU is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.
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 $3.39 billion in assets, Industrial Select Sector SPDR ETF has $12.20 billion. VIS has an expense ratio of 0.10% and XLI charges 0.10%.
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.