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Should You Invest in the Fidelity MSCI Industrials Index ETF (FIDU)?
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Designed to provide broad exposure to the Industrials - Broad segment of the equity market, the Fidelity MSCI Industrials Index ETF (FIDU - Free Report) is 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.
Additionally, sector ETFs offer convenient ways 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 3, placing it in top 19%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $985.43 million, making it one of the average sized 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 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 1.33%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that 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, Boeing Co/the Common Stock Usd5.0 (BA - Free Report) accounts for about 3.20% of total assets, followed by Union Pacific Corp Common Stock Usd2.5 (UNP - Free Report) and Caterpillar Inc Common Stock Usd1.0 (CAT - Free Report) .
The top 10 holdings account for about 27.81% of total assets under management.
Performance and Risk
So far this year, FIDU has added about 6.58%, and is up about 27.61% in the last one year (as of 03/12/2024). During this past 52-week period, the fund has traded between $50.27 and $65.85.
The ETF has a beta of 1.11 and standard deviation of 18.07% for the trailing three-year period, making it a medium risk choice in the space. With about 390 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 excellent 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.
Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.02 billion in assets, Industrial Select Sector SPDR ETF has $17.24 billion. VIS has an expense ratio of 0.10% and XLI charges 0.09%.
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 Industrials Index ETF (FIDU)?
Designed to provide broad exposure to the Industrials - Broad segment of the equity market, the Fidelity MSCI Industrials Index ETF (FIDU - Free Report) is 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.
Additionally, sector ETFs offer convenient ways 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 3, placing it in top 19%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $985.43 million, making it one of the average sized 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 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 1.33%.
Sector Exposure and Top Holdings
Even though ETFs offer diversified exposure that minimizes single stock risk, investors should also look at the actual holdings inside the fund. Luckily, most ETFs are very transparent products that 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, Boeing Co/the Common Stock Usd5.0 (BA - Free Report) accounts for about 3.20% of total assets, followed by Union Pacific Corp Common Stock Usd2.5 (UNP - Free Report) and Caterpillar Inc Common Stock Usd1.0 (CAT - Free Report) .
The top 10 holdings account for about 27.81% of total assets under management.
Performance and Risk
So far this year, FIDU has added about 6.58%, and is up about 27.61% in the last one year (as of 03/12/2024). During this past 52-week period, the fund has traded between $50.27 and $65.85.
The ETF has a beta of 1.11 and standard deviation of 18.07% for the trailing three-year period, making it a medium risk choice in the space. With about 390 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 excellent 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.
Vanguard Industrials ETF (VIS - Free Report) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI - Free Report) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $5.02 billion in assets, Industrial Select Sector SPDR ETF has $17.24 billion. VIS has an expense ratio of 0.10% and XLI charges 0.09%.
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.