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

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)

AUM540.54M

RegionNorth America

Expense Ratio0.08%

Beta0.83

IssuerFidelity

Inception DateOct 21, 2013

Dividend Yield1.43%

Asset ClassEquity

Index TrackedMSCI USA IMI Materials 25/50 Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume60,233

30 Day Avg. Volume44,649

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

63.91

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering106

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

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 very much a U.S. materials story, with gas pedals and a few brakes all coming from the same sector. Linde sits in the driver’s seat, but its recent trading has been more steady than exciting, so it’s not doing the heavy lifting. Instead, Newmont and Freeport-McMoRan have been rising smartly, giving the fund a strong boost from metals and mining. Sherwin-Williams and Nucor add to the positive tone, while CRH has been more of a wobble, slightly holding back an otherwise upbeat materials-heavy lineup.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
LIN	Linde	13.34%	$72.09M	$209.31B	-0.98%	66 Neutral
NEM	Newmont Mining	8.04%	$43.45M	$125.84B	159.86%	81 Outperform
FCX	Freeport-McMoRan	5.53%	$29.88M	$87.12B	65.39%	67 Neutral
SHW	Sherwin-Williams Company	5.44%	$29.41M	$89.73B	0.40%	66 Neutral
CRH	CRH plc	5.43%	$29.33M	£62.16B	12.98%	76 Outperform
ECL	Ecolab	4.70%	$25.42M	$82.23B	17.17%	66 Neutral
APD	Air Products and Chemicals	4.00%	$21.61M	$63.04B	-7.79%	46 Neutral
CTVA	Corteva	3.13%	$16.91M	$49.06B	18.34%	75 Outperform
NUE	Nucor	2.81%	$15.18M	$44.13B	40.39%	74 Outperform
VMC	Vulcan Materials	2.71%	$14.67M	$42.77B	21.88%	77 Outperform

FMAT Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

55.31

Positive

100DMA

53.18

Positive

200DMA

51.60

Positive

Market Momentum

MACD

1.34

Positive

RSI

67.49

Neutral

STOCH

76.42

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 58.65, equal to the 50-day MA of 55.31, and equal to the 200-day MA of 51.60, indicating a bullish trend. The MACD of 1.34 indicates Positive momentum. The RSI at 67.49 is Neutral, neither overbought nor oversold. The STOCH value of 76.42 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
FMAT	―	―	$540.54M	0.08%	―
RSPN	―	―	$965.57M	0.40%	―
FXH	―	―	$918.26M	0.62%	―
FXU	―	―	$805.85M	0.64%	―
FXZ	―	―	$299.52M	0.62%	―
RSPM	―	―	$172.87M	0.40%	―

Performance Comparison

FMAT

Fidelity MSCI Materials Index ETF

60.93

10.92

21.84%

RSPN

Invesco S&P 500 Equal Weight Industrials ETF

―

FXH

First Trust Health Care AlphaDEX Fund

―

FXU

First Trust Utilities 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.

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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