FDIS Profile
Fidelity MSCI Consumer Discretionary Index ETF is a passively managed fund that seeks to replicate the performance of the MSCI USA IMI Consumer Discretionary 25/50 Index. The fund allocates at least 80% of its assets to securities that are included in this underlying index, which tracks the consumer discretionary sector of the U.S. equity market. This sector encompasses industries such as retail, automobiles, consumer services, and other businesses that tend to be sensitive to economic cycles and changes in consumer spending patterns.
The MSCI USA IMI Consumer Discretionary 25/50 Index, which the fund aims to mirror, represents a broad and diverse range of companies within the consumer discretionary space, from large, well-established firms to smaller, emerging players. While the Fidelity MSCI Consumer Discretionary Index ETF aims to closely track the index, it may not necessarily hold every security within it. Instead, the fund may employ a sampling strategy, selecting a representative subset of the index’s components to achieve similar performance, while managing costs and liquidity.
As a non-diversified fund, Fidelity MSCI Consumer Discretionary Index ETF may concentrate a larger portion of its assets in a smaller number of securities compared to diversified funds. This approach allows the fund to potentially benefit more from the performance of its top holdings, though it also introduces a higher level of risk, as the fund's performance is more closely tied to the fortunes of specific companies within the consumer discretionary sector. The fund’s focus on this single sector means that it is particularly sensitive to trends and economic factors that impact consumer spending, such as changes in disposable income, consumer confidence, and interest rates.
Managed by Fidelity’s experienced investment team, the Fidelity MSCI Consumer Discretionary Index ETF offers investors targeted exposure to a key segment of the U.S. economy. The fund is designed for investors seeking to capitalize on the growth potential of consumer discretionary companies, which often benefit from strong economic conditions and rising consumer demand. By providing access to a diverse range of companies within this sector, the fund enables investors to participate in the long-term growth trends driven by consumer preferences and innovation in the marketplace.
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