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FIDU - ETF AI Analysis

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FIDU

Fidelity MSCI Industrial Index ETF (FIDU)

Rating:71Outperform
Price Target:
FIDU’s rating suggests it is a solid industrial-sector ETF, supported by strong core holdings like Caterpillar, Honeywell, and Eaton, which benefit from robust financial performance, positive earnings outlooks, and strategic growth initiatives. However, weaker names like Boeing, with its financial challenges and program delays, and companies facing valuation or cash flow concerns slightly weigh on the fund. The main risk factor is its concentration in industrial companies, where issues like high leverage, overvaluation, and sector-specific challenges can impact overall performance.
Positive Factors
Strong Recent Performance
The ETF has delivered solid gains so far this year and over the past few months, showing positive momentum.
Leading Industrial Holdings
Several of the largest positions, such as Caterpillar, GE Vernova, Eaton, Deere, Union Pacific, and Honeywell, have shown strong year-to-date performance, helping drive the fund’s returns.
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of their returns over time.
Negative Factors
Heavy Sector Concentration
With the vast majority of assets in industrials, the ETF is highly exposed to downturns in a single sector.
Limited Geographic Diversification
The portfolio is overwhelmingly invested in U.S. companies, offering very little exposure to other regions.
Mixed Performance Among Top Holdings
Some major positions like GE Aerospace and Uber have shown weak year-to-date performance, which can offset gains from stronger holdings.

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

FIDU Summary

FIDU is an exchange-traded fund (ETF) that follows the MSCI USA IMI Industrials 25/25 Index, focusing mainly on U.S. industrial companies. It holds businesses involved in manufacturing, construction, transportation, and related services. Well-known names in this ETF include Caterpillar and Boeing. Investors might consider FIDU if they want simple, one-stop exposure to a wide range of industrial stocks, which can benefit from economic growth and infrastructure spending. A key risk is that it is heavily tied to the industrial sector, so its value can rise or fall sharply with changes in the economy and demand for industrial goods.
How much will it cost me?The Fidelity MSCI Industrial Index ETF (FIDU) 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 a passively managed fund that tracks an index, keeping costs down.
What would affect this ETF?The Fidelity MSCI Industrial Index ETF (FIDU) could benefit from increased infrastructure spending, technological advancements in manufacturing, and economic growth in the U.S., which supports industrial activity. However, it may face challenges from rising interest rates, which can increase borrowing costs for companies in the sector, and economic slowdowns that reduce demand for construction and transportation services. The ETF's heavy reliance on U.S. industrials and top holdings like GE and Caterpillar makes it sensitive to domestic economic conditions and sector-specific trends.

FIDU Top 10 Holdings

FIDU is very much an industrials story, with U.S. manufacturing and aerospace names in the driver’s seat. Caterpillar, Eaton, Deere, and GE Vernova have been rising, giving the fund a solid lift as demand for equipment, electrification, and infrastructure stays resilient. On the flip side, GE Aerospace and RTX have been more mixed, while Boeing’s ongoing issues occasionally throw turbulence into returns. With almost all exposure in U.S. industrials and only a small tech and consumer tilt via names like Uber, this ETF is a focused bet on America’s industrial engine.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Caterpillar5.63%$115.05M$386.56B169.91%
76
Outperform
GE Vernova Inc.4.52%$92.27M$308.81B202.72%
69
Neutral
GE Aerospace4.35%$88.83M$296.93B41.67%
72
Outperform
RTX3.39%$69.14M$234.67B38.93%
74
Outperform
Boeing2.64%$53.86M$183.23B26.90%
54
Neutral
Eaton2.39%$48.72M$164.47B44.84%
75
Outperform
Union Pacific2.31%$47.16M$159.53B26.48%
72
Outperform
Uber Technologies2.13%$43.60M$152.03B-2.63%
74
Outperform
Deere2.09%$42.78M$151.97B23.36%
66
Neutral
Honeywell International1.96%$40.05M$135.08B5.68%
77
Outperform

FIDU Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
90.87
Positive
100DMA
89.02
Positive
200DMA
84.77
Positive
Market Momentum
MACD
0.98
Negative
RSI
56.81
Neutral
STOCH
56.53
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FIDU, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 92.34, equal to the 50-day MA of 90.87, and equal to the 200-day MA of 84.77, indicating a bullish trend. The MACD of 0.98 indicates Negative momentum. The RSI at 56.81 is Neutral, neither overbought nor oversold. The STOCH value of 56.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FIDU.

FIDU Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$2.02B0.08%
71
Outperform
$9.91B0.69%
72
Outperform
$8.07B0.58%
70
Outperform
$7.73B0.09%
71
Outperform
$5.98B0.35%
67
Neutral
$1.98B0.38%
72
Outperform
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FIDU
Fidelity MSCI Industrial Index ETF
93.52
23.71
33.96%
AIRR
First Trust RBA American Industrial Renaissance ETF
PPA
Invesco Aerospace & Defense ETF
VIS
Vanguard Industrials ETF
XAR
SPDR S&P Aerospace & Defense ETF
IYJ
iShares U.S. Industrials ETF
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: ―
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