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FMAT - ETF AI Analysis

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FMAT

Fidelity MSCI Materials Index ETF (FMAT)

Rating:68Neutral
Price Target:
FMAT, the Fidelity MSCI Materials Index ETF, has a solid overall rating driven by strong performers like Newmont Mining, Vulcan Materials, CRH, and Corteva, which show healthy financials, positive earnings calls, and generally supportive technical trends. However, the fund is held back somewhat by weaker names such as Air Products and Linde, where financial or macro challenges, bearish momentum, and valuation concerns introduce more risk. The main risk factor is that many top holdings face valuation and technical pressures at the same time, which can increase volatility for investors.
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 industrial gas giant Linde setting the pace as a steady leader, while copper-focused Freeport-McMoRan and steelmaker Nucor have been rising and giving the fund some extra cyclical punch. On the flip side, building-materials name CRH and paint heavyweight Sherwin-Williams have been losing steam lately, acting as a bit of a drag. With most of its muscle in chemicals, metals, and construction materials, this ETF is concentrated in one sector but diversified across several key players within it.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Linde15.83%$95.36M$239.43B10.05%
66
Neutral
Newmont Mining7.69%$46.35M$114.91B111.74%
81
Outperform
Freeport-McMoRan5.83%$35.12M$89.11B62.36%
67
Neutral
Sherwin-Williams Company4.77%$28.72M$76.23B-13.38%
66
Neutral
CRH plc4.41%$26.55M$67.07B7.25%
76
Outperform
Ecolab4.23%$25.48M$71.29B-4.24%
66
Neutral
Air Products and Chemicals4.22%$25.42M$64.46B5.48%
46
Neutral
Corteva3.52%$21.21M$53.21B12.33%
75
Outperform
Nucor3.48%$20.95M$52.84B119.68%
74
Outperform
Vulcan Materials2.26%$13.59M$33.82B-0.45%
77
Outperform

FMAT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
58.67
Positive
100DMA
58.79
Positive
200DMA
55.16
Positive
Market Momentum
MACD
-0.20
Positive
RSI
52.45
Neutral
STOCH
61.23
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 59.06, equal to the 50-day MA of 58.67, and equal to the 200-day MA of 55.16, indicating a bullish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 52.45 is Neutral, neither overbought nor oversold. The STOCH value of 61.23 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
$613.76M0.08%
68
Neutral
$998.95M0.60%
73
Outperform
$982.59M0.40%
72
Outperform
$863.24M0.61%
70
Outperform
$414.98M0.64%
69
Neutral
$174.20M0.40%
66
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FMAT
Fidelity MSCI Materials Index ETF
59.39
11.30
23.50%
FTXN
First Trust Nasdaq Oil & Gas ETF
RSPN
Invesco S&P 500 Equal Weight Industrials ETF
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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