Should You Invest in the Fidelity MSCI Consumer Discretionary Index ETF (FDIS)?

Core Viewpoint - The Fidelity MSCI Consumer Discretionary Index ETF (FDIS) is a passively managed ETF that provides broad exposure to the Consumer Discretionary sector, appealing to both retail and institutional investors due to its low costs and tax efficiency [1][3]. Group 1: ETF Overview - FDIS was launched on October 21, 2013, and has accumulated over $1.85 billion in assets, making it one of the largest ETFs in its category [3]. - The ETF aims to match the performance of the MSCI USA IMI Consumer Discretionary Index, which reflects the U.S. consumer discretionary sector [3]. Group 2: Cost Structure - FDIS has an annual operating expense ratio of 0.08%, making it the least expensive option in its category [4]. - The ETF offers a 12-month trailing dividend yield of 0.76% [4]. Group 3: Sector Exposure and Holdings - The ETF is fully allocated to the Consumer Discretionary sector, with Amazon.com Inc (AMZN) representing approximately 23.76% of total assets [5][6]. - The top 10 holdings constitute about 58.79% of total assets under management [6]. Group 4: Performance Metrics - As of July 28, 2025, FDIS has increased by approximately 21.88% over the past year and has a year-to-date gain of about 0.27% [7]. - The ETF has traded between $75.33 and $104.24 in the last 52 weeks, with a beta of 1.29 and a standard deviation of 23.15% over the trailing three-year period, indicating medium risk [7]. Group 5: Alternatives - FDIS has a Zacks ETF Rank of 5 (Strong Sell), suggesting it may not be the best option for investors seeking exposure to the Consumer Discretionary sector [8]. - Alternatives include the Vanguard Consumer Discretionary ETF (VCR) and the Consumer Discretionary Select Sector SPDR ETF (XLY), which have larger asset bases and competitive expense ratios [10].