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FSTA - ETF AI Analysis

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FSTA

FIDELITY COVINGTON TRUST MSCI CONSUMER STAPLES INDEX ETF (FSTA)

Rating:70Outperform
Price Target:
FSTA, the Fidelity MSCI Consumer Staples Index ETF, has a solid overall rating driven mainly by large positions in Walmart, Costco, Coca-Cola, and PepsiCo, which benefit from strong financial performance, growth initiatives, and generally positive earnings call sentiment. However, holdings like Philip Morris, Altria, Mondelez, and Colgate-Palmolive face issues such as high leverage, bearish technical trends, and valuation concerns, which weigh on the fund’s rating. The main risk factor is the ETF’s concentration in the consumer staples sector, meaning its performance is closely tied to how this single segment of the market behaves.
Positive Factors
Strong Leading Retail Holdings
Large positions in Walmart, Costco, and Target have shown strong recent performance, helping support the ETF’s overall returns.
Defensive Sector Focus
Heavy exposure to consumer staples companies provides a more defensive profile that can be more resilient during economic slowdowns.
Low Expense Ratio
The fund’s relatively low fee means less of investors’ returns are lost to costs over time.
Negative Factors
High Concentration in Top Holdings
A significant share of the portfolio is tied up in a few large stocks, which increases the impact if any of them run into trouble.
Mixed Performance Among Key Stocks
Some major holdings, such as Procter & Gamble and Philip Morris, have shown weaker recent performance, which can drag on the fund.
Limited Geographic Diversification
With almost all assets invested in U.S. companies, the ETF offers little exposure to international markets.

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

FSTA Summary

FSTA is an ETF that follows the MSCI USA IMI Consumer Staples 25/50 Index, focusing on companies that sell everyday essentials like food, drinks, and household products. Its top holdings include well-known names such as Walmart and Coca-Cola. Investors might consider FSTA if they want more stability in their portfolio, since people tend to keep buying these basic items even during weaker economic times, and the fund is spread across many large, established companies. A key risk is that it is heavily concentrated in consumer staples, so it can still go up and down with that sector and the overall stock market.
How much will it cost me?The ETF FSTA has an expense ratio of 0.084%, which means you’ll pay $0.84 per year for every $1,000 invested. This is lower than average because it is passively managed, tracking the MSCI Consumer Staples Index to keep costs down.
What would affect this ETF?The FSTA ETF, focused on the consumer staples sector, could benefit from steady demand for essential goods during economic downturns, as well as potential growth driven by top holdings like Walmart and Procter & Gamble. However, rising interest rates or inflation could negatively impact consumer spending and company margins, while regulatory changes affecting industries like tobacco or beverages could pose risks. Its U.S.-centric exposure may also limit gains if the domestic economy faces challenges.

FSTA Top 10 Holdings

FSTA is very much a U.S. consumer-staples story, with a big chunk of its fate tied to retail giants and household brands. Walmart and Costco are doing the heavy lifting, with rising share prices that help pull the fund higher. Target has been a surprise bright spot, adding extra fuel on the retail side. On the flip side, Procter & Gamble and Philip Morris have been lagging, acting like a bit of a brake on returns. Overall, the ETF is concentrated in steady, defensive names rather than high-flying growth plays.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Walmart16.09%$227.93M$1.04T33.99%
78
Outperform
Costco12.36%$175.11M$448.60B1.99%
72
Outperform
Procter & Gamble9.29%$131.61M$344.37B-8.31%
69
Neutral
Coca-Cola8.21%$116.31M$329.83B5.08%
75
Outperform
PepsiCo4.50%$63.72M$212.45B15.21%
78
Outperform
Philip Morris4.19%$59.35M$255.91B-4.89%
61
Neutral
Altria Group3.66%$51.83M$111.78B13.42%
64
Neutral
Mondelez International2.46%$34.88M$73.94B-11.80%
62
Neutral
Colgate-Palmolive2.17%$30.73M$67.91B-7.46%
63
Neutral
Target2.02%$28.57M$58.54B34.61%
70
Neutral

FSTA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
53.34
Positive
100DMA
52.35
Positive
200DMA
51.01
Positive
Market Momentum
MACD
0.15
Negative
RSI
60.95
Neutral
STOCH
77.22
Neutral
Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For FSTA, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 52.80, equal to the 50-day MA of 53.34, and equal to the 200-day MA of 51.01, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 60.95 is Neutral, neither overbought nor oversold. The STOCH value of 77.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FSTA.

FSTA Peer Comparison

Comparison Results
Name
Price
Price Target
AUM
Expense Ratio
Overall Rating
$1.41B0.08%
70
Outperform
$9.97B0.09%
72
Outperform
$9.91B0.69%
72
Outperform
$8.85B0.09%
67
Neutral
$8.06B0.09%
70
Outperform
$1.36B0.38%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSTA
FIDELITY COVINGTON TRUST MSCI CONSUMER STAPLES INDEX ETF
53.95
3.55
7.04%
VDE
Vanguard Energy ETF
AIRR
First Trust RBA American Industrial Renaissance ETF
VPU
Vanguard Utilities ETF
VDC
Vanguard Consumer Staples ETF
IYK
iShares U.S. Consumer Staples 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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