XLI - FIDU ETF: Lags Its Larger Peer And Conditions Are Not Too Alluring

2024-07-18 16:09:10 ET

Summary

• Fidelity MSCI Industrials Index ETF provides low-cost access to US industrial stocks across the market-cap spectrum.
• We ascertain how good the FIDU ETF is, relative to the largest and oldest ETF in this arena: The Industrial Select Sector SPDR® Fund ETF.
• Market conditions for industrial stocks look mixed, whilst valuations are not cheap, and the technicals don't look too alluring.

Introduction

The Fidelity MSCI Industrials Index ETF ( FIDU ), a $1.23bn sized product that provides low-cost exposure to US industrial stocks across the market-cap spectrum, hasn’t done too badly over the past year. Over the last 12 months, it has generated respectable returns of nearly 20%. However, that hasn’t quite been good enough to topple the broader markets, which have beaten our focus product by 1.23x....

For further details see: