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Should You Invest in the Fidelity MSCI Consumer Staples Index ETF (FSTA)?
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If you're interested in broad exposure to the Consumer Staples - Broad segment of the equity market, look no further than the Fidelity MSCI Consumer Staples Index ETF (FSTA - 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.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $1.06 billion, 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.
The MSCI USA IMI Consumer Staples Index represents the performance of the consumer staples sector in the U.S. equity market.
Costs
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 2.66%.
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 Consumer Staples sector--about 99.90% of the portfolio.
Looking at individual holdings, Procter + Gamble Co/the Common Stock (PG - Free Report) accounts for about 12.21% of total assets, followed by Pepsico Inc Common Stock Usd.017 (PEP - Free Report) and Coca Cola Co/the Common Stock Usd.25 (KO - Free Report) .
The top 10 holdings account for about 61.04% of total assets under management.
Performance and Risk
So far this year, FSTA has lost about -0.25%, and is up roughly 2.92% in the last one year (as of 01/08/2024). During this past 52-week period, the fund has traded between $40.85 and $46.87.
The ETF has a beta of 0.61 and standard deviation of 13.45% for the trailing three-year period, making it a medium risk choice in the space. With about 109 holdings, it effectively diversifies company-specific risk.
Alternatives
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 sufficient 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 - Free Report) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the Consumer Staples Select Sector SPDR ETF (XLP - Free Report) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples ETF has $6.40 billion in assets, Consumer Staples Select Sector SPDR ETF has $15.24 billion. VDC has an expense ratio of 0.10% and XLP 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 Consumer Staples Index ETF (FSTA)?
If you're interested in broad exposure to the Consumer Staples - Broad segment of the equity market, look no further than the Fidelity MSCI Consumer Staples Index ETF (FSTA - 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.
Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Consumer Staples - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 13, placing it in bottom 19%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $1.06 billion, 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.
The MSCI USA IMI Consumer Staples Index represents the performance of the consumer staples sector in the U.S. equity market.
Costs
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 2.66%.
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 Consumer Staples sector--about 99.90% of the portfolio.
Looking at individual holdings, Procter + Gamble Co/the Common Stock (PG - Free Report) accounts for about 12.21% of total assets, followed by Pepsico Inc Common Stock Usd.017 (PEP - Free Report) and Coca Cola Co/the Common Stock Usd.25 (KO - Free Report) .
The top 10 holdings account for about 61.04% of total assets under management.
Performance and Risk
So far this year, FSTA has lost about -0.25%, and is up roughly 2.92% in the last one year (as of 01/08/2024). During this past 52-week period, the fund has traded between $40.85 and $46.87.
The ETF has a beta of 0.61 and standard deviation of 13.45% for the trailing three-year period, making it a medium risk choice in the space. With about 109 holdings, it effectively diversifies company-specific risk.
Alternatives
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 sufficient 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 - Free Report) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the Consumer Staples Select Sector SPDR ETF (XLP - Free Report) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples ETF has $6.40 billion in assets, Consumer Staples Select Sector SPDR ETF has $15.24 billion. VDC has an expense ratio of 0.10% and XLP 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.