FMAT - ETF AI Analysis

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Fidelity MSCI Materials Index ETF (FMAT)

Rating:68Neutral

Price Target:―

FMAT’s rating suggests it is a solid but not outstanding materials-focused ETF, supported by strong holdings like Newmont Mining, CRH, Corteva, Vulcan Materials, and Nucor, which show healthy financial performance, positive earnings outlooks, and generally supportive technical trends. However, weaker names such as Air Products and Chemicals, along with several holdings facing valuation concerns or bearish technical signals, prevent the fund from scoring higher. The main risk is its concentration in the cyclical materials sector, where macroeconomic and commodity-related headwinds can impact many holdings at the same time.

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)

AUM500.45M

RegionNorth America

Expense Ratio0.08%

Beta0.83

IssuerFidelity

Inception DateOct 21, 2013

Dividend Yield1.5%

Asset ClassEquity

Index TrackedMSCI USA IMI Materials 25/50 Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume55,466

30 Day Avg. Volume40,974

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

61.01

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering106

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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) leans heavily into the U.S. materials sector, with names like Linde and Newmont Mining shaping its performance. Linde has been steady but faces bearish momentum and valuation concerns, while Newmont Mining is rising on strong profitability and strategic initiatives. Freeport-McMoRan adds a boost with positive technical momentum, though operational risks loom. On the flip side, Sherwin-Williams and Air Products are dragging the fund with bearish trends and financial challenges. Overall, the ETF’s concentration in materials highlights its cyclical nature and reliance on industrial growth.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
LIN	Linde	13.66%	$67.54M	$205.45B	1.74%	66 Neutral
NEM	Newmont Mining	8.30%	$41.05M	$124.57B	174.21%	81 Outperform
FCX	Freeport-McMoRan	5.74%	$28.37M	$86.66B	49.79%	67 Neutral
SHW	Sherwin-Williams Company	5.56%	$27.48M	$87.84B	0.55%	66 Neutral
CRH	CRH plc	5.43%	$26.84M	£60.95B	17.49%	76 Outperform
ECL	Ecolab	4.66%	$23.04M	$78.07B	16.13%	66 Neutral
APD	Air Products and Chemicals	3.94%	$19.47M	$59.49B	-14.77%	46 Neutral
CTVA	Corteva	3.15%	$15.55M	$47.26B	14.39%	75 Outperform
NUE	Nucor	2.62%	$12.95M	$39.43B	41.69%	74 Outperform
VMC	Vulcan Materials	2.61%	$12.91M	$39.44B	12.09%	77 Outperform

FMAT Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

52.36

Positive

100DMA

52.17

Positive

200DMA

50.48

Positive

Market Momentum

MACD

1.47

Negative

RSI

76.57

Negative

STOCH

96.32

Negative

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FMAT, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 54.88, equal to the 50-day MA of 52.36, and equal to the 200-day MA of 50.48, indicating a bullish trend. The MACD of 1.47 indicates Negative momentum. The RSI at 76.57 is Negative, neither overbought nor oversold. The STOCH value of 96.32 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FMAT.

FMAT Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
FMAT	―	―	$500.45M	0.08%	―
FXH	―	―	$955.21M	0.62%	―
IETC	―	―	$952.96M	0.18%	―
IYM	―	―	$890.28M	0.38%	―
FXZ	―	―	$246.41M	0.62%	―
RSPM	―	―	$167.39M	0.40%	―

Performance Comparison

FMAT

Fidelity MSCI Materials Index ETF

57.83

8.21

16.55%

FXH

First Trust Health Care AlphaDEX Fund

―

IETC

iShares Evolved US Technology ETF

―

IYM

iShares U.S. Basic Materials ETF

―

FXZ

First Trust Materials AlphaDEX Fund

―

RSPM

Invesco S&P 500 Equal Weight Materials 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.

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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