FMAT Profile
The Fidelity MSCI Materials Index ETF seeks to provide investment results that correspond to the performance of the MSCI USA IMI Materials 25/50 Index. The fund invests at least 80% of its assets in securities included in this underlying index, which is designed to measure the performance of the materials sector within the U.S. equity market. This includes industries such as chemicals, construction materials, containers and packaging, metals and mining, and paper and forest products.
The MSCI USA IMI Materials 25/50 Index is structured to capture the full spectrum of the materials sector by including large, mid, and small-cap companies. This broad exposure ensures that the ETF encompasses the diverse and dynamic nature of the materials industry, from large multinational corporations to innovative smaller firms. The index follows a 25/50 weighting methodology, which limits the weight of any single issuer to 25% and the sum of all issuers with weights above 5% to 50%, promoting diversification and reducing concentration risk.
As a non-diversified fund, the Fidelity MSCI Materials Index ETF may allocate a significant portion of its assets to a limited number of issuers. While this can result in higher volatility, it also allows for more focused exposure to high-performing stocks within the materials sector. The fund's strategy is designed to leverage the growth potential and cyclical nature of the materials industry, which is often influenced by global economic trends, infrastructure development, and technological advancements.
Investors in the Fidelity MSCI Materials Index ETF benefit from a transparent and efficient way to invest in the U.S. materials sector. The ETF is suitable for those seeking to enhance their portfolio with sector-specific exposure, offering a balanced mix of stability from established companies and growth opportunities from emerging players. By closely tracking its underlying index, the fund aims to provide reliable and consistent returns aligned with the performance of the materials sector, reflecting its critical role in the broader economy.
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