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Should You Invest in the Fidelity MSCI Industrials Index ETF (FIDU)?
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Looking for broad exposure to the Industrials - Broad segment of the equity market? You should consider the Fidelity MSCI Industrials Index ETF (FIDU - Free Report) , 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.
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 5, placing it in top 31%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $811.16 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
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 one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.36%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 99.10% of the portfolio.
Looking at individual holdings, Raytheon Technologies Corp Common Stock Usd1.0 (RTX - Free Report) accounts for about 3.53% of total assets, followed by Honeywell International Inc Common Stock Usd1.0 (HON - Free Report) and Boeing Co/the Common Stock Usd5.0 (BA - Free Report) .
The top 10 holdings account for about 28.89% of total assets under management.
Performance and Risk
The ETF has added about 15.04% so far this year and it's up approximately 20.67% in the last one year (as of 09/04/2023). In that past 52-week period, it has traded between $43.68 and $58.90.
The ETF has a beta of 1.14 and standard deviation of 19.20% for the trailing three-year period, making it a medium risk choice in the space. With about 395 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 sufficient 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 $4.51 billion in assets, Industrial Select Sector SPDR ETF has $15.71 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)?
Looking for broad exposure to the Industrials - Broad segment of the equity market? You should consider the Fidelity MSCI Industrials Index ETF (FIDU - Free Report) , 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.
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 5, placing it in top 31%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $811.16 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
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 one of the least expensive products in the space.
It has a 12-month trailing dividend yield of 1.36%.
Sector Exposure and Top Holdings
ETFs offer a diversified exposure and thus minimize single stock risk but it is still important to delve into a fund's holdings before investing. Most ETFs are very transparent products and many disclose their holdings on a daily basis.
This ETF has heaviest allocation in the Industrials sector--about 99.10% of the portfolio.
Looking at individual holdings, Raytheon Technologies Corp Common Stock Usd1.0 (RTX - Free Report) accounts for about 3.53% of total assets, followed by Honeywell International Inc Common Stock Usd1.0 (HON - Free Report) and Boeing Co/the Common Stock Usd5.0 (BA - Free Report) .
The top 10 holdings account for about 28.89% of total assets under management.
Performance and Risk
The ETF has added about 15.04% so far this year and it's up approximately 20.67% in the last one year (as of 09/04/2023). In that past 52-week period, it has traded between $43.68 and $58.90.
The ETF has a beta of 1.14 and standard deviation of 19.20% for the trailing three-year period, making it a medium risk choice in the space. With about 395 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 sufficient 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 $4.51 billion in assets, Industrial Select Sector SPDR ETF has $15.71 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.