If you're interested in broad exposure to the Consumer Discretionary - Broad segment of the equity market, look no further than the Fidelity MSCI Consumer Discretionary Index ETF (FDIS), a passively managed exchange traded fund launched on October 21, 2013.
Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.
Additionally, sector ETFs offer convenient ways to gain low risk and diversified exposure to a broad group of companies in particular sectors. Consumer Discretionary - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 8, placing it in top 50%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $1.73 billion, making it one of the largest ETFs attempting to match the performance of the Consumer Discretionary - Broad segment of the equity market. FDIS seeks to match the performance of the MSCI USA IMI Consumer Discretionary Index before fees and expenses.
The MSCI USA IMI Consumer Discretionary 25/50 Index represents the performance of the consumer discretionary sector in the U.S. equity market.
Costs
Cost is an important factor in selecting the right ETF, and cheaper funds can significantly outperform their more expensive counterparts if all other fundamentals are 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 0.71%.
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 Consumer Discretionary sector -- about 99.7% of the portfolio.
Looking at individual holdings, Amazon.com Inc Common Stock Usd.01 (AMZN) accounts for about 20.13% of total assets, followed by Tesla Inc Common Stock Usd.001 (TSLA) and Home Depot Inc Common Stock Usd.05 (HD).The top 10 holdings account for about 56.11% of total assets under management.
Performance and Risk
Year-to-date, the Fidelity MSCI Consumer Discretionary Index ETF has added roughly 2.57% so far, and was up about 9.17% over the last 12 months (as of 08/11/2026). FDIS has traded between $90.3 and $107.08 in this past 52-week period.
The ETF has a beta of 1.23 and standard deviation of 20.88% for the trailing three-year period, making it a medium risk choice in the space. With about 251 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Consumer Discretionary Index ETF sports a Zacks ETF Rank of 4 (Sell), which is based on expected asset class return, expense ratio, and momentum, among other factors. FDIS, then, is not the best option for investors seeking exposure to the Consumer Discretionary ETFs segment of the market. However, there are better ETFs in the space to consider.
Vanguard Consumer Discretionary Index Fund ETF Shares (VCR) tracks MSCI US Investable Market Consumer Discretionary 25/50 Index and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) tracks Consumer Discretionary Select Sector Index. Vanguard Consumer Discretionary Index Fund ETF Shares has $6.16 billion in assets, State Street Consumer Discretionary Select Sector SPDR ETF has $23.73 billion. VCR has an expense ratio of 0.09%, and XLY 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 Consumer Discretionary Index ETF (FDIS): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).