Should You Invest in the Fidelity MSCI Industrials Index ETF (FIDU)?

The Fidelity MSCI Industrials Index ETF (FIDU) was launched on October 21, 2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Broad segment of the equity market.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 DetailsThe fund is sponsored by Fidelity. It has amassed assets over $1.53 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.CostsInvestors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain 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 1.32%.Sector Exposure and Top HoldingsWhile 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 Industrials sector -- about 100% of the portfolio.Looking at individual holdings, General Electric Common Stock Usd.01 (GE) accounts for about 4.92% of total assets, followed by Rtx Corp Common Stock Usd1.0 (RTX) and Caterpillar Inc Common Stock Usd1.0 (CAT).The top 10 holdings account for about 29.33% of total assets under management.Performance and RiskThe ETF has added roughly 17.54% and is up about 15.04% so far this year and in the past one year (as of 10/01/2025), respectively. FIDU has traded between $60.99 and $81.94 during this last 52-week period.The ETF has a beta of 1.10 and standard deviation of 17.34% 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.AlternativesFidelity 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 sufficient 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.Vanguard Industrials ETF (VIS) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $6.28 billion in assets, Industrial Select Sector SPDR ETF has $23.77 billion. VIS has an expense ratio of 0.09%, and XLI charges 0.08%.Bottom LineTo 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.Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity MSCI Industrials Index ETF (FIDU): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks