tiprankstipranks
Advertisement

FNCL - ETF AI Analysis

Compare

Top Page

FNCL

Fidelity MSCI Financials Index ETF (FNCL)

Rating:72Outperform
Price Target:
FNCL, the Fidelity MSCI Financials Index ETF, has a solid overall rating driven mainly by large, high-quality financial names like JPMorgan Chase, Wells Fargo, American Express, and Goldman Sachs, which show strong earnings, positive momentum, and attractive or reasonable valuations. These leaders help support the fund’s quality, while some holdings such as Berkshire Hathaway and Citigroup face bearish or overbought technical trends and financial challenges that slightly weigh on the rating. The main risk factor is the ETF’s concentration in the financials sector, meaning its performance is heavily tied to the health of banks, payment companies, and other financial institutions.
Positive Factors
Recent Performance Momentum
The ETF has shown steady gains over the past month and quarter, suggesting positive recent momentum in its financial holdings.
Strong Contributions from Key Banks
Several major bank holdings, such as JPMorgan Chase, Bank of America, Goldman Sachs, Morgan Stanley, and Citigroup, have delivered strong year-to-date results, helping support the fund’s overall performance.
Low Expense Ratio
The fund’s relatively low expense ratio means investors keep more of the returns generated by the underlying financial stocks.
Negative Factors
High Sector Concentration
With the vast majority of assets in the financial sector, the ETF is heavily exposed to downturns specific to banks, insurers, and other financial companies.
Limited Geographic Diversification
Almost all of the fund’s holdings are in U.S. companies, so investors get little protection from strength in other regions if the U.S. market weakens.
Mixed Performance Among Top Holdings
Some large positions, including Berkshire Hathaway, Mastercard, Wells Fargo, and American Express, have shown weaker year-to-date performance, which can offset gains from stronger names in the portfolio.

FNCL vs. SPDR S&P 500 ETF (SPY)

FNCL Summary

The Fidelity MSCI Financials Index ETF (FNCL) is a fund that focuses on U.S. financial companies by tracking the MSCI USA IMI Financials 25/50 Index. It holds a wide mix of banks, credit card companies, and other financial firms, including well-known names like JPMorgan Chase and Berkshire Hathaway. Someone might invest in FNCL to bet on the growth of the financial sector and to diversify across many different financial stocks instead of picking just one. A key risk is that it is heavily tied to financial companies, so its value can rise or fall sharply with changes in interest rates and the overall economy.
How much will it cost me?The Fidelity MSCI Financials Index ETF (FNCL) 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 stock selection.
What would affect this ETF?FNCL's performance could benefit from rising interest rates, which often increase profitability for banks and financial institutions, as well as economic growth that boosts demand for financial services. However, it may face challenges from regulatory changes in the financial sector or economic downturns that reduce consumer spending and lending activity. Its focus on U.S. financial stocks, including major players like JPMorgan Chase and Berkshire Hathaway, makes it sensitive to domestic economic conditions and sector-specific trends.

FNCL Top 10 Holdings

FNCL is essentially a bet on big U.S. financials, with heavyweight banks and payment networks steering the ship. JPMorgan and Bank of America have been rising, giving the fund a solid lift, while Goldman Sachs and Morgan Stanley add more momentum from the investment banking side. On the payments front, Visa is steady to rising, but Mastercard looks more mixed, losing a bit of steam this year. Berkshire Hathaway sits in the background as a stabilizer. Overall, it’s a concentrated U.S. financials play, with performance driven by the largest money-center banks and card networks.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
JPMorgan Chase10.40%$247.16M$940.11B21.57%
72
Outperform
Berkshire Hathaway B7.84%$186.16M$989.59B8.18%
66
Neutral
Visa6.81%$161.72M$651.67B7.89%
70
Outperform
Mastercard5.23%$124.16M$510.40B2.36%
75
Outperform
Bank of America4.63%$110.06M$438.07B35.68%
72
Outperform
Goldman Sachs Group3.34%$79.40M$302.34B43.52%
73
Outperform
Wells Fargo2.89%$68.75M$258.34B11.15%
80
Outperform
Morgan Stanley2.75%$65.38M$331.32B51.28%
76
Outperform
Citigroup2.49%$59.27M$226.92B44.23%
68
Neutral
American Express1.98%$47.11M$227.93B14.26%
80
Outperform

FNCL Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
77.11
Positive
100DMA
74.48
Positive
200DMA
74.65
Positive
Market Momentum
MACD
RSI
STOCH
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FNCL, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 80.23, equal to the 50-day MA of 77.11, and equal to the 200-day MA of 74.65, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FNCL.

FNCL Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.38B0.08%
72
Outperform
$6.69B0.35%
74
Outperform
$4.43B0.38%
72
Outperform
$2.17B0.38%
72
Outperform
$1.65B0.35%
73
Outperform
$1.14B0.60%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FNCL
Fidelity MSCI Financials Index ETF
81.06
8.53
11.76%
KBWB
Invesco KBW Bank ETF
IYF
iShares U.S. Financials ETF
IYG
iShares US Financial Services ETF
KBE
SPDR S&P Bank ETF
FXO
First Trust Financials AlphaDEX Fund
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.
DisclaimerThis 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: ―
Table of Contents
Advertisement