Designed to provide broad exposure to the Financials - Broad segment of the equity market, the Fidelity MSCI Financials Index ETF (FNCL Quick QuoteFNCL - Free Report) is a passively managed exchange traded fund launched on October 21, 2013.

Passively managed ETFs are becoming increasingly popular with institutional as well as retail investors due to their low cost, transparency, flexibility and tax efficiency. They are excellent vehicles for long term investors.

Sector ETFs are also funds of convenience, offering many ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Financials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.

Index Details

The fund is sponsored by Fidelity. It has amassed assets over $2.28 billion, making it one of the larger ETFs attempting to match the performance of the Financials - Broad segment of the equity market. FNCL seeks to match the performance of the MSCI USA IMI Financials Index before fees and expenses.

The MSCI USA IMI Financials 25/50 Index represents the performance of the financial sector in the U.S. equity market.

Costs

Since cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.

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 1.67%.

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 Financials sector -- about 100% of the portfolio.

Looking at individual holdings, Jpmorgan Chase & Co (JPM) accounts for about 10.5% of total assets, followed by Berkshire Hathaway Inc Cl B (BRK/B) and Visa Inc Cl A (V).

The top 10 holdings account for about 48.49% of total assets under management.

Performance and Risk

The ETF has added roughly 0.77% so far this year and is up roughly 2.72% in the last one year (as of 09/24/2026). In that past 52-week period, it has traded between $67.93 and $83.33.

The ETF has a beta of 0.89 and standard deviation of 16.57% for the trailing three-year period, making it a medium risk choice in the space. With about 387 holdings, it effectively diversifies company-specific risk.

Alternatives

Fidelity MSCI Financials 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, FNCL is a good option for those seeking exposure to the Financials ETFs area of the market. Investors might also want to consider some other ETF options in the space.

Vanguard Financials Index Fund ETF Shares (VFH) tracks MSCI US Investable Market Financials 25/50 Index and the State Street Financial Select Sector SPDR ETF (XLF) tracks Financial Select Sector Index. Vanguard Financials Index Fund ETF Shares has $12.77 billion in assets, State Street Financial Select Sector SPDR ETF has $50.40 billion. VFH has an expense ratio of 0.09%, and XLF charges 0.08%.

Bottom Line

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