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

The Fidelity MSCI Industrials Index ETF (FIDU), with $1.32 billion in assets, offers exposure to the U.S. industrials sector with an expense ratio of 0.08% and a dividend yield of 1.39%. FIDU's top holdings include General Electric (4.27%), RTX Corp, and Uber, with the top 10 holdings comprising 28.18% of the fund; the ETF has returned 5.06% YTD and 12.15% over the past year and carries a Zacks ETF Rank of 3 (Hold).

Analysis

The Fidelity MSCI Industrials Index ETF (FIDU) offers broad, passively managed exposure to the U.S. industrials sector, an area currently ranked 10th among 16 Zacks sectors, placing it in the bottom 38%. With $1.32 billion in assets under management, FIDU is a notable ETF in this segment, distinguished by a highly competitive annual operating expense ratio of 0.08% and a 12-month trailing dividend yield of 1.39%. The fund, which launched on October 21, 2013, seeks to track the MSCI USA IMI Industrials Index and holds approximately 371 stocks, thereby offering significant diversification against company-specific risk. Its portfolio is entirely allocated to the industrials sector, with top holdings including General Electric (4.27% of assets), RTX Corp, and Uber Technologies Inc.; the top 10 holdings constitute about 28.18% of total assets. Year-to-date, FIDU has recorded a gain of 5.06% and has appreciated by 12.15% over the past year (as of 05/26/2025), trading within a 52-week range of $60.99 to $77.39. The ETF exhibits a medium risk profile, indicated by a beta of 1.09 and a standard deviation of 18.83% over the trailing three-year period. FIDU carries a Zacks ETF Rank of 3 (Hold), suggesting it is a reasonable option for investors, though alternatives like the Vanguard Industrials ETF (VIS) with $5.35 billion in assets and a 0.09% expense ratio, and the Industrial Select Sector SPDR ETF (XLI) with $20.50 billion in assets and a 0.08% expense ratio, offer larger scale.

Key Decisions for Investors

• Investors seeking cost-effective and diversified access to the U.S. industrials sector should consider FIDU, given its low 0.08% expense ratio and portfolio of approximately 371 holdings.
• The current Zacks ETF Rank of 3 (Hold) for FIDU, coupled with the industrials sector's positioning in the bottom 38% of Zacks sectors, suggests a neutral stance; investors should monitor for shifts in sector performance and broader economic indicators relevant to industrials.
• Evaluate FIDU's medium risk profile (beta 1.09, standard deviation 18.83%) and its asset base in comparison to larger, similarly priced alternatives like XLI or VIS, particularly if fund scale is a primary consideration.