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) is a passively managed exchange traded fund launched on October 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.

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 7, placing it in top 44%.

Index Details

The fund is sponsored by Fidelity. It has amassed assets over $1.95 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

Investors 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 0.98%.

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, General Electric Common Stock Usd.01 (GE) accounts for about 5.06% of total assets, followed by Caterpillar Inc Common Stock Usd1.0 (CAT) and Rtx Corp Common Stock Usd1.0 (RTX).

The top 10 holdings account for about 30.6% of total assets under management.

Performance and Risk

The ETF has added about 11.14% and is up about 51.34% so far this year and in the past one year (as of 04/09/2026), respectively. FIDU has traded between $64.04 and $95.61 during this last 52-week period.

The ETF has a beta of 1.07 and standard deviation of 16.78% for the trailing three-year period, making it a medium risk choice in the space. With about 366 holdings, it effectively diversifies company-specific risk.

Alternatives

Fidelity 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 good 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.

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 $9.04 billion in assets, State Street Industrial Select Sector SPDR ETF has $29.37 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.

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Fidelity MSCI Industrials Index ETF (FIDU): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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