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.

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 also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - 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 $2.2 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

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 one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.93%.

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 100% of the portfolio.

Looking at individual holdings, Caterpillar Inc (CAT) accounts for about 5.68% of total assets, followed by Ge Aerospace (GE) and Ge Vernova Inc (GEV).

The top 10 holdings account for about 31.59% of total assets under management.

Performance and Risk

So far this year, FIDU return is roughly 9.18%, and it's up approximately 11.27% in the last one year (as of 10/14/2026). During this past 52-week period, the fund has traded between $78.27 and $99.61.

The ETF has a beta of 1.03 and standard deviation of 17.37% for the trailing three-year period, making it a medium risk choice in the space. With about 368 holdings, it effectively diversifies company-specific risk.

Alternatives

Fidelity MSCI Industrials Index ETF holds a Zacks ETF Rank of 2 (Buy), which is based on expected asset class return, expense ratio, and momentum, among other factors. Because of this, FIDU is an outstanding option for investors seeking exposure to the Industrials ETFs segment of the market. There are other additional ETFs in the space that investors could consider as well.

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 $8.89 billion in assets, State Street Industrial Select Sector SPDR ETF has $30.69 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.