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Should You Invest in the Fidelity MSCI Consumer Staples Index ETF (FSTA)?

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Launched on October 21, 2013, the Fidelity MSCI Consumer Staples Index ETF (FSTA - Free Report) is a passively managed exchange traded fund designed to provide a broad exposure to the Consumer Staples - Broad segment of the equity market.

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 12, placing it in bottom 25%.

Index Details

The fund is sponsored by Fidelity. It has amassed assets over $1.38 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

Expense ratios are an important factor in the return of an ETF and in the long term, cheaper funds can significantly outperform their more expensive counterparts, other things remaining 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 2.22%.

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 100% of the portfolio.

Looking at individual holdings, Walmart Inc Common Stock Usd.1 (WMT) accounts for about 15.82% of total assets, followed by Costco Wholesale Corp Common Stock Usd.005 (COST) and Procter + Gamble Co/the Common Stock (PG).

The top 10 holdings account for about 64.7% of total assets under management.

Performance and Risk

The ETF has added roughly 7.28% so far this year and is up roughly 3.76% in the last one year (as of 06/09/2026). In that past 52-week period, it has traded between $48.21 and $56.905.

The ETF has a beta of 0.50 and standard deviation of 11.9% for the trailing three-year period, making it a medium risk choice in the space. With about 98 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 Index Fund ETF Shares (VDC) tracks MSCI US Investable Market Consumer Staples 25/50 Index and the State Street Consumer Staples Select Sector SPDR ETF (XLP) tracks Consumer Staples Select Sector Index. Vanguard Consumer Staples Index Fund ETF Shares has $7.81 billion in assets, State Street Consumer Staples Select Sector SPDR ETF has $14.20 billion. VDC has an expense ratio of 0.09%, and XLP charges 0.08%.

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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