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FMAT - ETF AI Analysis

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FMAT

Fidelity MSCI Materials Index ETF (FMAT)

Rating:67Neutral
Price Target:
FMAT, the Fidelity MSCI Materials Index ETF, has a solid overall rating, suggesting it offers a generally attractive but not risk-free way to invest in the materials sector. Strong contributors like Newmont Mining, CRH, Corteva, Nucor, and Vulcan Materials support the fund with solid financial performance, positive earnings outlooks, and constructive technical trends, while a large position in Linde and weaker names like Air Products and Chemicals introduce risks tied to bearish momentum, valuation concerns, and financial challenges. The main risk factor is the fund’s concentration in a single sector, where several holdings show signs of overvaluation or technical weakness, which can increase volatility if market conditions for materials companies worsen.
Positive Factors
Strong Recent Performance
The ETF has shown strong gains so far this year and over the past month, indicating positive recent momentum in its holdings.
Leading Materials Companies in Top Holdings
Several of the largest positions, including major materials and chemicals firms, have delivered solid to strong performance, helping support the fund’s overall returns.
Low Expense Ratio
The fund charges a relatively low fee, which helps investors keep more of the returns generated by the portfolio.
Negative Factors
Sector Concentration in Materials
Most of the portfolio is invested in the materials sector, which increases the risk that a downturn in this single industry could hurt the fund.
High Exposure to a Few Stocks
A small number of holdings make up a large share of the ETF, so weakness in any of these companies could have an outsized impact on performance.
Limited Geographic Diversification
The fund is heavily focused on U.S. companies with only small exposure to other countries, offering limited benefits from international diversification.

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 to add diversification and potential growth tied to the global economy and industrial activity. However, it is heavily focused on the materials sector, so its price can rise and fall sharply with changes in commodity prices and the overall economy.
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 very much a U.S. materials story, with Linde sitting in the driver’s seat: its long-term climb has helped, even if the stock has cooled recently. The real spark plugs lately have been Freeport-McMoRan and Nucor, both riding strong momentum in metals and mining, while Vulcan Materials is quietly adding steady support. On the flip side, Sherwin-Williams and CRH look a bit tired, with recent trading more sluggish. Overall, the fund is tightly tied to chemicals, metals, and construction names, with little exposure beyond the U.S.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Linde16.26%$100.26M$236.92B12.39%
66
Neutral
Newmont Mining6.63%$40.86M$110.80B71.21%
81
Outperform
Freeport-McMoRan5.72%$35.28M$98.73B69.05%
67
Neutral
Sherwin-Williams Company5.35%$32.98M$79.12B-7.82%
66
Neutral
Ecolab4.65%$28.69M$75.74B1.27%
66
Neutral
CRH plc4.63%$28.55M$74.33B23.71%
76
Outperform
Air Products and Chemicals4.26%$26.28M$62.40B3.63%
46
Neutral
Corteva3.69%$22.74M$52.56B5.94%
75
Outperform
Nucor3.20%$19.72M$55.53B94.40%
74
Outperform
Vulcan Materials2.53%$15.61M$39.29B16.61%
77
Outperform

FMAT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
59.08
Positive
100DMA
59.02
Positive
200DMA
55.87
Positive
Market Momentum
MACD
-0.01
Positive
RSI
52.97
Neutral
STOCH
41.65
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 59.04, equal to the 50-day MA of 59.08, and equal to the 200-day MA of 55.87, indicating a bullish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 52.97 is Neutral, neither overbought nor oversold. The STOCH value of 41.65 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
$614.06M0.08%
67
Neutral
$987.67M0.61%
71
Outperform
$885.12M0.48%
70
Neutral
$818.02M0.60%
67
Neutral
$391.29M0.64%
70
Neutral
$176.07M0.40%
67
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FMAT
Fidelity MSCI Materials Index ETF
59.52
9.03
17.88%
FXH
First Trust Health Care AlphaDEX Fund
REZ
iShares Residential and Multisector Real Estate ETF
PTF
Invesco DWA Technology Momentum 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.
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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