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FMAT - ETF AI Analysis

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FMAT

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 contributors like Newmont, CRH, Corteva, Nucor, and Vulcan Materials, which show healthy financial performance, positive earnings calls, and generally supportive technical trends. However, major holding Linde faces bearish technical signals, overvaluation concerns, and macroeconomic challenges, while Air Products and Chemicals struggles with profitability and cash flow, which together weigh on the fund’s overall appeal. The main risk factor is its concentration in the cyclical materials sector, where valuations and sector-specific headwinds can meaningfully impact performance.
Positive Factors
Strong Year-to-Date Performance
The ETF has delivered solid gains so far this year, showing that its materials-focused strategy has recently worked well for investors.
Leading Holdings with Strong Momentum
Several of the largest positions, such as Freeport-McMoRan, Air Products and Chemicals, Corteva, and Nucor, have shown strong performance, helping support the fund’s overall returns.
Low Expense Ratio
The fund charges a relatively low fee, which means more of the ETF’s returns can stay in investors’ pockets over time.
Negative Factors
Heavy Concentration in Materials Sector
With most of its assets in the materials sector, the ETF is highly sensitive to swings in commodity prices and demand for basic materials.
High Weight in a Few Stocks
A small number of companies, led by Linde and other large holdings, make up a big share of the portfolio, increasing the impact if any one of them struggles.
Recent Short-Term Weakness
The ETF has slipped over the past one and three months, and some top holdings like Newmont Mining, Sherwin-Williams, CRH, and Vulcan Materials have shown weaker recent performance, which could pressure near-term results.

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

FMAT Summary

FMAT is the Fidelity MSCI Materials Index ETF, which tracks the MSCI USA IMI Materials 25/50 Index. It focuses on U.S. materials companies that make things like chemicals, metals, and building materials—key ingredients for construction, manufacturing, and everyday products. Well-known holdings include Linde and Sherwin-Williams. An investor might choose FMAT to add diversification and potential growth tied to the long-term demand for raw materials. However, this fund is heavily tied to the materials sector, so its price can swing up and down with 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 essentially a bet on U.S. materials, with gas giant Linde sitting in the driver’s seat but lately losing some steam, tempering the fund’s momentum. Freeport-McMoRan and steelmaker Nucor are doing more of the heavy lifting, riding stronger trends in metals and industrial demand. On the flip side, paint maker Sherwin-Williams and building-focused CRH have been lagging, acting like a weight in the portfolio. With nearly all exposure in U.S. materials and chemicals, this ETF is tightly tied to the health of the industrial and construction cycle.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Linde14.95%$86.48M$221.30B2.79%
66
Neutral
Newmont Mining6.83%$39.48M$98.74B45.78%
81
Outperform
Freeport-McMoRan6.07%$35.12M$90.03B57.45%
67
Neutral
Sherwin-Williams Company5.40%$31.25M$82.74B1.83%
66
Neutral
Ecolab4.76%$27.53M$78.14B5.73%
66
Neutral
CRH plc4.29%$24.81M$63.21B0.38%
76
Outperform
Air Products and Chemicals4.21%$24.33M$65.67B1.90%
46
Neutral
Nucor3.85%$22.29M$58.60B90.74%
74
Outperform
Corteva3.56%$20.62M$52.64B5.73%
75
Outperform
Vulcan Materials2.36%$13.67M$34.80B0.62%
77
Outperform

FMAT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
58.57
Positive
100DMA
58.47
Positive
200DMA
56.59
Positive
Market Momentum
MACD
0.09
Negative
RSI
60.11
Neutral
STOCH
75.44
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 57.86, equal to the 50-day MA of 58.57, and equal to the 200-day MA of 56.59, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 60.11 is Neutral, neither overbought nor oversold. The STOCH value of 75.44 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
$592.67M0.08%
68
Neutral
$874.29M0.48%
70
Outperform
$837.91M0.61%
67
Neutral
$766.88M0.40%
71
Outperform
$374.60M0.64%
69
Neutral
$177.61M0.40%
66
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FMAT
Fidelity MSCI Materials Index ETF
60.05
10.51
21.22%
REZ
iShares Residential and Multisector Real Estate ETF
FXU
First Trust Utilities AlphaDEX Fund
RSPH
Invesco S&P 500 Equal Weight Health Care 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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