The Fidelity MSCI Industrials Index ETF (FIDU) was launched on October 21, 2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Broad segment of the equity market.

An increasingly popular option among retail and institutional investors, passively managed ETFs offer low costs, transparency, flexibility, and tax efficiency; they are also excellent vehicles for long term investors.

Sector ETFs also provide investors access to a broad group of companies in particular sectors that offer low risk and diversified exposure. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.

Index Details

The fund is sponsored by Fidelity. It has amassed assets over $2.39 billion, making it one of the larger ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. FIDU seeks to match the performance of the MSCI USA IMI Industrials Index before fees and expenses.

The MSCI USA IMI Industrials 25/25 Index represents the performance of the industrial sector in the U.S. equity market.

Costs

Investors should also pay attention to an ETF's expense ratio. Lower cost products will produce better results than those with a higher cost, assuming all other metrics remain the same.

Annual operating expenses for this ETF are 0.08%, making it one of the least expensive products in the space.

It has a 12-month trailing dividend yield of 0.91%.

Sector Exposure and Top Holdings

It is important to delve into an ETF's holdings before investing despite the many upsides to these kinds of funds like diversified exposure, which minimizes single stock risk. And, most ETFs are very transparent products that disclose their holdings on a daily basis.

This ETF has heaviest allocation in the Industrials sector -- about 100% of the portfolio.

Looking at individual holdings, Caterpillar Inc Common Stock Usd1.0 (CAT) accounts for about 6.17% of total assets, followed by General Electric Common Stock Usd.01 (GE) and Ge Vernova Inc Common Stock Usd.01 (GEV).

The top 10 holdings account for about 31.94% of total assets under management.

Performance and Risk

The ETF has added about 20.14% and was up about 24.83% so far this year and in the past one year (as of 08/10/2026), respectively. FIDU has traded between $78.27 and $99.61 during this last 52-week period.

The ETF has a beta of 1.04 and standard deviation of 17.35% for the trailing three-year period, making it a medium risk choice in the space. With about 367 holdings, it effectively diversifies company-specific risk.

Alternatives

Fidelity MSCI Industrials Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FIDU is a good option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.

First Trust RBA American Industrial Renaissance ETF (AIRR) tracks Richard Bernstein Advisors American Industrial Renaissance Index and the State Street Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. First Trust RBA American Industrial Renaissance ETF has $10.73 billion in assets, State Street Industrial Select Sector SPDR ETF has $34.77 billion. AIRR has an expense ratio of 0.69%, and XLI charges 0.08%.

Bottom Line

To learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.

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Fidelity MSCI Industrials Index ETF (FIDU): ETF Research Reports

This article originally published on Zacks Investment Research (zacks.com).

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