If you're interested in broad exposure to the Materials - Broad segment of the equity market, look no further than the Fidelity MSCI Materials Index ETF (FMAT), a passively managed exchange traded fund launched on October 21, 2013.
An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.
Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Materials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 9, placing it in bottom 44%.
Index Details
The fund is sponsored by Fidelity. It has amassed assets over $599.15 million, making it one of the average sized ETFs attempting to match the performance of the Materials - Broad segment of the equity market. FMAT seeks to match the performance of the MSCI USA IMI Materials Index before fees and expenses.
The MSCI USA IMI Materials 25/50 Index represents the performance of the materials 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 the least expensive product in the space.
It has a 12-month trailing dividend yield of 1.46%.
Sector Exposure and Top Holdings
While ETFs offer diversified exposure, which minimizes single stock risk, a deep look into a fund's holdings is a valuable exercise. And, most ETFs are very transparent products that disclose their holdings on a daily basis.Looking at individual holdings, Linde Plc Common Stock (LIN) accounts for about 15.21% of total assets, followed by Newmont Corp Common Stock Usd1.6 (NEM) and Freeport Mcmoran Inc Common Stock Usd.1 (FCX).
The top 10 holdings account for about 55.85% of total assets under management.
Performance and Risk
The ETF has gained about 10.11% so far this year and was up about 19.14% in the last one year (as of 06/08/2026). In that past 52-week period, it has traded between $48.66 and $62.52.
The ETF has a beta of 0.96 and standard deviation of 17.38% for the trailing three-year period, making it a medium risk choice in the space. With about 109 holdings, it effectively diversifies company-specific risk.
Alternatives
Fidelity MSCI Materials 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. FMAT, then, is not a great choice for investors seeking exposure to the Materials ETFs segment of the market. However, there are better ETFs in the space to consider.
FlexShares Morningstar Global Upstream Natural Resources ETF (GUNR) tracks Morningstar Global Upstream Natural Resources Index and the State Street Materials Select Sector SPDR ETF (XLB) tracks Materials Select Sector Index. FlexShares Morningstar Global Upstream Natural Resources ETF has $7.16 billion in assets, State Street Materials Select Sector SPDR ETF has $7.59 billion. GUNR has an expense ratio of 0.46%, and XLB 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.
Boost Your Portfolio with Our Top ETF Insights
Zacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.
Don’t miss out on this valuable resource. It’s free!
Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Fidelity MSCI Materials Index ETF (FMAT): ETF Research Reports
This article originally published on Zacks Investment Research (zacks.com).