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FMAT - ETF AI Analysis

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FMAT

Fidelity MSCI Materials Index ETF (FMAT)

Rating:67Neutral
Price Target:
FMAT’s rating suggests it is a solid but not outstanding materials-sector ETF, supported by strong holdings like Newmont Mining, CRH, Corteva, Nucor, and Vulcan Materials, which show healthy financial performance, positive earnings calls, and generally supportive technical trends. However, large positions such as Linde, Sherwin-Williams, and Ecolab face bearish technical signals and valuation concerns, while Air Products and Chemicals struggles with profitability and cash flow, all of which weigh on the fund’s overall appeal. The main risk factor is its concentration in the cyclical materials sector, where macroeconomic and market conditions can significantly impact performance.
Positive Factors
Recent Strong Performance
The ETF has shown solid gains over the past month, three months, and year-to-date, indicating positive recent momentum.
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of their returns over time.
Broad Materials Exposure with Several Strong Holdings
The ETF holds a range of materials companies, and several of its larger positions have delivered strong year-to-date performance, supporting the fund’s results.
Negative Factors
Heavy Concentration in Materials Sector
With the vast majority of assets in the materials sector, the fund is highly sensitive to downturns in this single part of the market.
High U.S. Market Concentration
Most of the ETF’s holdings are in U.S. companies, offering limited geographic diversification.
Notable Lagging Top Holding
One of the top positions, CRH plc, has shown weak year-to-date performance, which can drag on overall returns if the stock continues to struggle.

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

FMAT Summary

FMAT is the Fidelity MSCI Materials Index ETF, which follows the MSCI USA IMI Materials 25/50 Index. It focuses on U.S. materials companies that make chemicals, metals, and other basic building blocks used in construction, manufacturing, and many everyday products. Well-known holdings include Linde and Sherwin-Williams. Investors might consider FMAT if they want targeted exposure to the materials sector for potential growth and diversification away from just tech or consumer stocks. A key risk is that materials stocks are cyclical, so the ETF’s value can rise and fall sharply with the economy and commodity prices.
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

FMAT is a pure U.S. materials play, and its story right now is one of a few giants steering the ship. Linde sits in the captain’s chair: longer-term gains are helping, but its recent wobble keeps returns from really taking off. Newmont and Freeport-McMoRan have been more of a headwind, with mining names lagging and dulling the fund’s shine. On the brighter side, Corteva has been a quiet climber, offering some balance. Overall, the ETF is heavily concentrated in chemicals, miners, and building materials, with little diversification beyond the U.S. materials theme.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Linde15.56%$81.09M$229.73B6.14%
66
Neutral
Newmont Mining7.29%$38.00M$117.76B124.17%
81
Outperform
Freeport-McMoRan5.39%$28.10M$84.48B54.16%
67
Neutral
Sherwin-Williams Company5.06%$26.38M$79.42B-8.56%
66
Neutral
CRH plc4.65%$24.24M£53.07B14.07%
76
Outperform
Ecolab4.53%$23.61M$75.01B4.62%
66
Neutral
Air Products and Chemicals4.39%$22.87M$64.68B-1.01%
46
Neutral
Corteva3.76%$19.59M$56.30B31.72%
75
Outperform
Nucor2.56%$13.32M$38.52B41.32%
74
Outperform
Vulcan Materials2.37%$12.34M$35.56B14.76%
77
Outperform

FMAT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
58.88
Negative
100DMA
55.61
Positive
200DMA
53.35
Positive
Market Momentum
MACD
-0.76
Negative
RSI
51.15
Neutral
STOCH
76.94
Neutral
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 56.91, equal to the 50-day MA of 58.88, and equal to the 200-day MA of 53.35, indicating a neutral trend. The MACD of -0.76 indicates Negative momentum. The RSI at 51.15 is Neutral, neither overbought nor oversold. The STOCH value of 76.94 is Neutral, 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
$517.27M0.08%
67
Neutral
$993.74M0.63%
74
Outperform
$856.40M0.61%
67
Neutral
$831.83M0.61%
71
Outperform
$334.98M0.64%
68
Neutral
$179.47M0.40%
65
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FMAT
Fidelity MSCI Materials Index ETF
57.64
9.45
19.61%
FXN
First Trust Energy AlphaDEX Fund
FXU
First Trust Utilities AlphaDEX Fund
FXH
First Trust Health Care AlphaDEX Fund
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.
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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