If you're interested in broad exposure to the Industrials - Broad segment of the equity market, look no further than the Fidelity MSCI Industrials Index ETF (FIDU Quick QuoteFIDU - Free Report) , a passively managed exchange traded fund launched on October 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 7, placing it in top 44%.

Index Details

The fund is sponsored by Fidelity. It has amassed assets over $2.17 billion, making it one of the larger 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 25/25 Index represents the performance of the industrial 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 one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.96%.

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 99.9% of the portfolio.

Looking at individual holdings, Caterpillar Inc Common Stock Usd1.0 (CAT) accounts for about 5.16% of total assets, followed by General Electric Common Stock Usd.01 (GE) and Rtx Corp Common Stock Usd1.0 (RTX).

The top 10 holdings account for about 31.17% of total assets under management.

Performance and Risk

Year-to-date, the Fidelity MSCI Industrials Index ETF return is roughly 14.12% so far, and is up roughly 24.62% over the last 12 months (as of 06/09/2026). FIDU has traded between $74.53 and $95.73 in this past 52-week period.

The ETF has a beta of 1.04 and standard deviation of 16.85% for the trailing three-year period, making it a medium risk choice in the space. With about 365 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 good 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.

First Trust RBA American Industrial Renaissance ETF (AIRR) tracks Richard Bernstein Advisors American Industrial Renaissance Index and the State Street Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. First Trust RBA American Industrial Renaissance ETF has $10.51 billion in assets, State Street Industrial Select Sector SPDR ETF has $30.44 billion. AIRR has an expense ratio of 0.69%, and XLI 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.