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FMAT - AI Analysis
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Fidelity MSCI Materials Index ETF (FMAT)
Rating:71Outperform
Price Target:
$58.00
Positive Factors
Strong Top Holdings
Several key holdings, such as Newmont Mining and Martin Marietta Materials, have delivered strong year-to-date performance, supporting the ETF’s overall returns.
Low Expense Ratio
The ETF has a very low expense ratio compared to industry averages, making it cost-effective for investors.
Focused Sector Exposure
The ETF’s heavy focus on the materials sector allows investors to target a specific industry with growth potential.
Negative Factors
Over-Concentration in Materials
Nearly 88% of the fund is allocated to the materials sector, which increases vulnerability to sector-specific downturns.
Weak Recent Performance
The ETF has shown flat or negative returns over the past month and three months, which may concern short-term investors.
Limited Geographic Diversification
With over 93% of its holdings in U.S. companies, the ETF lacks significant exposure to international markets.
FMAT vs. SPDR S&P 500 ETF (SPY)
AUM409.40M
RegionNorth America
Expense Ratio0.08%
Beta0.85
IssuerFidelity
Inception DateOct 21, 2013
Dividend Yield1.73%
Asset ClassEquity
Index TrackedMSCI USA IMI Materials 25/50 Index
Share Statistics
EPS (TTM)N/A
Shares OutstandingN/A
10 Day Avg. Volume36,787
30 Day Avg. Volume26,881
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
62.40Price Target Upside― Downside
Rating ConsensusStrong Buy
Number of Analyst Covering99
FMAT Summary
The Fidelity MSCI Materials Index ETF (FMAT) is an investment fund that focuses on companies in the materials sector, which includes businesses involved in chemicals, metals, mining, and other raw materials. It follows the MSCI USA IMI Materials Index and includes well-known companies like Linde and Newmont Mining. This ETF could be a good choice for investors looking to diversify their portfolio with exposure to industries that are essential for global manufacturing and construction. However, it’s important to know that the materials sector can be cyclical, meaning its performance often depends on economic conditions and demand for raw materials.
How much will it cost me?The Fidelity MSCI Materials Index ETF (FMAT) has an expense ratio of 0.084%, meaning you’ll pay $0.84 per year for every $1,000 invested. This is lower than average because it’s passively managed, tracking an index rather than relying on active management.
What would affect this ETF?The FMAT ETF, focused on the U.S. materials sector, could benefit from increased infrastructure spending or demand for raw materials driven by economic growth, as its holdings include companies involved in chemicals, mining, and construction materials. However, it may face challenges from rising interest rates, which can increase borrowing costs for companies in the sector, or economic slowdowns that reduce demand for cyclical materials. Regulatory changes or environmental policies could also impact the profitability of top holdings like mining and chemical companies.
FMAT Top 10 Holdings
The Fidelity MSCI Materials Index ETF (FMAT) is heavily concentrated in the U.S. materials sector, with top holdings like Linde and Newmont Mining driving much of its performance. Linde has shown some short-term weakness, but its long-term outlook remains strong due to strategic investments. On the other hand, Newmont Mining has been rising steadily, benefiting from robust cash flow and strategic initiatives. Ecolab and Martin Marietta Materials have also contributed positively, supported by strong financials and infrastructure demand. However, lagging names like Sherwin-Williams and Air Products and Chemicals have weighed on the fund, facing challenges such as supply chain inefficiencies and valuation concerns. Overall, FMAT’s focus on cyclical materials stocks makes it a play on industrial growth, but some holdings are struggling to keep pace with sector leaders.
Name | Company Name | Weight % | Market Value | Market Cap | Yearly Gain | Overall Rating |
|---|---|---|---|---|---|---|
| Linde | 15.56% | $63.66M | $196.14B | -8.53% | 66 Neutral | |
| Newmont Mining | 6.97% | $28.51M | $88.36B | 78.90% | 81 Outperform | |
| Sherwin-Williams Company | 6.37% | $26.05M | $85.51B | -3.64% | 72 Outperform | |
| CRH plc | 6.09% | $24.93M | £60.99B | 21.01% | 82 Outperform | |
| Ecolab | 5.04% | $20.64M | $72.62B | 4.84% | 66 Neutral | |
| Freeport-McMoRan | 4.61% | $18.85M | $59.87B | -8.53% | 67 Neutral | |
| Air Products and Chemicals | 4.19% | $17.13M | $53.99B | -21.54% | 64 Neutral | |
| Corteva | 3.24% | $13.24M | $41.72B | 0.95% | 71 Outperform | |
| Vulcan Materials | 2.95% | $12.05M | $38.25B | 7.07% | 72 Outperform | |
| Martin Marietta Materials | 2.84% | $11.63M | $36.97B | 5.68% | 76 Outperform |
FMAT Technical Analysis
Negative
―
Price Trends
52.26
Negative
51.48
Negative
49.87
Positive
Market Momentum
-0.40
Positive
34.03
Neutral
7.66
Positive
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FMAT, the sentiment is Negative. The current price of undefined is equal to the 20-day moving average (MA) of 51.75, equal to the 50-day MA of 52.26, and equal to the 200-day MA of 49.87, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 34.03 is Neutral, neither overbought nor oversold. The STOCH value of 7.66 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FMAT.
FMAT Peer Comparison
Comparison Results
Performance Comparison
FMAT
Fidelity MSCI Materials Index ETF
49.98
-2.04
-3.92%
IETC
iShares Evolved US Technology ETF
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FXH
First Trust Health Care AlphaDEX Fund
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IYM
iShares U.S. Basic Materials ETF
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FXZ
First Trust Materials AlphaDEX Fund
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RSPM
Invesco S&P 500 Equal Weight Materials ETF
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Glossary
BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―
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