Fidelity® MSCI Consumer Discretionary Index ETF (FDIS)

Overview

Fidelityu00ae MSCI Consumer Discretionary Index ETF (FDIS) seeks to track the performance of the MSCI USA IMI Consumer Discretionary Index, representing the performance of large, mid and small-cap U.S. equity securities in the consumer discretionary sector. It offers exposure to companies sensitive to economic cycles and consumer spending.

Reputation and Reliability

Fidelity is a well-established and reputable investment management firm with a long history of offering investment products.

Management Expertise

Fidelity has a large team of experienced investment professionals managing its various ETFs and mutual funds.

Goal

The fund seeks to provide investment results that correspond to the aggregate price and return performance of the MSCI USA IMI Consumer Discretionary Index.

Investment Approach and Strategy

Strategy: The ETF employs a passive management strategy, attempting to replicate the underlying index by investing in its constituent securities.

Composition The ETF primarily holds stocks of U.S. companies within the consumer discretionary sector.

Market Share: FDIS holds a notable market share within the consumer discretionary ETF landscape.

Total Net Assets (AUM): 1650000000

Key Competitors

• Vanguard Consumer Discretionary ETF (VCR)
• Consumer Discretionary Select Sector SPDR Fund (XLY)
• iShares U.S. Consumer Discretionary ETF (IYC)

Competitive Landscape

The consumer discretionary ETF market is dominated by XLY. FDIS competes with VCR, IYC, and other smaller funds. FDIS may offer a slightly different expense ratio or tracking methodology, providing investors with choices based on their preferences. FDIS's lower expense ratio compared to IYC may attract cost-conscious investors, while VCR's size offers liquidity.

Historical Performance: Historical performance data is crucial to understanding the ETF's performance track record over various time periods.

Benchmark Comparison: The ETF's performance is closely tied to the MSCI USA IMI Consumer Discretionary Index.

Expense Ratio: 0.08

Average Trading Volume

FDIS exhibits adequate liquidity with a reasonable average daily trading volume, facilitating efficient trading.

Bid-Ask Spread

The bid-ask spread for FDIS is generally tight, indicating efficient trading and lower transaction costs.

Market Environment Factors

Economic growth, consumer confidence, and interest rates significantly influence the performance of consumer discretionary stocks, directly impacting FDIS.

Growth Trajectory

The growth trajectory of FDIS depends on the overall health of the consumer discretionary sector, influenced by economic trends and consumer spending patterns.

Competitive Edge

FDIS benefits from Fidelity's brand recognition and established ETF platform. The ETF's passive investment strategy, tracking a well-known index, offers transparency and simplicity. Its low expense ratio is a competitive advantage, attracting cost-conscious investors. The ETF provides access to a diversified basket of consumer discretionary stocks, allowing investors to gain exposure to this sector. This exposure can be beneficial during periods of economic expansion.

Volatility

FDIS's volatility is correlated with the overall consumer discretionary sector, which tends to be more volatile than the broader market.

Market Risk

The primary risk is market risk associated with consumer discretionary stocks, which are sensitive to economic downturns and changes in consumer sentiment.

Ideal Investor Profile

Investors seeking targeted exposure to the U.S. consumer discretionary sector and those who believe in the growth potential of consumer-related industries are ideal investors.

Market Risk

FDIS is suitable for long-term investors seeking sector-specific exposure and diversification within their portfolios. It may also appeal to active traders looking to capitalize on short-term trends in the consumer discretionary sector.

Fidelityu00ae MSCI Consumer Discretionary Index ETF (FDIS) offers investors a cost-effective way to gain exposure to the U.S. consumer discretionary sector. It tracks the MSCI USA IMI Consumer Discretionary Index, providing diversification within the sector. The ETF's performance is closely tied to the health of the U.S. economy and consumer spending patterns. Fidelity's reputation and low expense ratio contribute to its appeal; however, the sector's cyclical nature entails market risk and potential volatility.

• VCR
• XLY
• IYC
• RCD
• XRT

Data Sources:

• Fidelity Investments
• MSCI
• Morningstar
• ETF.com

Disclaimers:

The data provided is for informational purposes only and should not be considered investment advice. Market conditions and ETF performance are subject to change.