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FSTA - ETF AI Analysis

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FSTA

FIDELITY COVINGTON TRUST MSCI CONSUMER STAPLES INDEX ETF (FSTA)

Rating:70Neutral
Price Target:
FSTA, the Fidelity MSCI Consumer Staples Index ETF, has a solid overall rating driven mainly by large positions in resilient, well-known companies like Walmart, Costco, Coca-Cola, and PepsiCo, which show strong financial performance, strategic growth initiatives, and generally supportive technical trends. The fund’s rating is held back somewhat by weaker signals from holdings such as Philip Morris, Altria, Mondelez, and Colgate-Palmolive, where higher leverage, bearish technical trends, and valuation concerns introduce more caution, and a key risk is the ETF’s concentration in the consumer staples sector, which can limit diversification across the broader market.
Positive Factors
Strong Consumer Staples Leaders
Several major holdings like Costco, Coca-Cola, Philip Morris, Altria, Mondelez, Colgate-Palmolive, and Monster Beverage have shown strong gains this year, helping support the ETF’s overall results.
Defensive Sector Focus
The fund is heavily invested in consumer defensive companies, which tend to be more resilient during economic slowdowns because they sell everyday essentials.
Low Expense Ratio
The ETF charges a relatively low annual fee, which means more of the fund’s returns can stay in investors’ pockets over time.
Negative Factors
High Stock Concentration
A small number of companies, including Walmart, Costco, Procter & Gamble, and Coca-Cola, make up a large share of the portfolio, increasing the impact if any one of them struggles.
Mixed Performance Among Top Holdings
Some key positions like Walmart and PepsiCo have shown weaker performance this year, which can offset gains from stronger stocks in the fund.
Limited Geographic Diversification
With almost all assets invested in U.S. companies, the ETF offers little exposure to international markets and is heavily tied to the U.S. economy.

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

FSTA Summary

FSTA is an exchange-traded fund that follows the MSCI USA IMI Consumer Staples 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, giving investors instant diversification across many stable, defensive businesses. Someone might invest in FSTA to add steadier, more predictable companies to their portfolio, which can help balance out more volatile growth stocks. However, this ETF can still go up and down with the stock market and is heavily concentrated in the consumer staples sector.
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 firmly anchored in U.S. consumer staples, with heavyweights Walmart and PepsiCo recently lagging and acting like a mild brake on the fund’s momentum. In contrast, Coca-Cola and Philip Morris have been rising, giving the portfolio a welcome lift, while Altria and Monster Beverage add more punch with strong, if somewhat volatile, performance. Costco and Procter & Gamble sit in the middle of the pack, steady but not spectacular. Overall, the ETF is clearly concentrated in defensive household names and beverage giants, all U.S.-based, aiming for resilience over excitement.
Name
Company Name
Weight %
Market Value
Market Cap
Yearly Gain
Overall Rating
Walmart13.53%$195.70M$908.97B13.39%
78
Outperform
Costco11.39%$164.86M$431.96B1.55%
72
Outperform
Coca-Cola8.43%$121.98M$383.27B30.34%
75
Outperform
Procter & Gamble8.36%$120.94M$340.21B-4.33%
69
Neutral
Philip Morris4.61%$66.74M$309.29B17.04%
61
Neutral
PepsiCo4.25%$61.49M$195.86B1.65%
78
Outperform
Altria Group3.97%$57.48M$125.11B9.69%
64
Neutral
Mondelez International2.70%$39.07M$82.95B-2.49%
62
Neutral
Colgate-Palmolive2.33%$33.77M$74.81B9.24%
63
Neutral
Monster Beverage2.33%$33.72M$95.09B66.21%
80
Outperform

FSTA Technical Analysis

Technical Analysis Sentiment
Positive
Last Price
Price Trends
50DMA
53.03
Positive
100DMA
52.85
Positive
200DMA
51.77
Positive
Market Momentum
MACD
RSI
STOCH
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 53.42, equal to the 50-day MA of 53.03, and equal to the 200-day MA of 51.77, indicating a bullish trend. The MACD of ― indicates undefined momentum. The RSI at ― is undefined, neither overbought nor oversold. The STOCH value of ― is undefined, 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
$1.45B0.08%
70
Neutral
$9.79B0.09%
72
Outperform
$8.84B0.08%
70
Neutral
$8.74B0.09%
67
Neutral
$8.09B0.09%
69
Neutral
$1.46B0.38%
68
Neutral
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FSTA
FIDELITY COVINGTON TRUST MSCI CONSUMER STAPLES INDEX ETF
53.66
4.16
8.40%
VDE
Vanguard Energy ETF
XLRE
Real Estate Select Sector SPDR Fund
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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