Yahoo Finance·2026-01-10 13:09Core Insights - The Fidelity MSCI Consumer Discretionary Index ETF (FDIS) has shown a 3% increase at the start of 2026 after a 7% gain in 2025, but it has underperformed the broader market while maintaining a low annual fee of 0.084% [1] Group 1: Fund Performance and Composition - FDIS provides concentrated exposure to consumer discretionary stocks, with 97.7% of its portfolio in this sector, and nearly 40% of its assets are in Amazon (21%) and Tesla (18.28%) [2] - The performance of FDIS is significantly influenced by the contrasting stock movements of Amazon, which is up nearly 6% year-to-date, and Tesla, which has declined by 3.75% [2] Group 2: Economic Indicators and Consumer Spending - Consumer spending growth is projected to slow to 2% in 2026 from a historical average of 2.7%, which is critical for consumer discretionary stocks as they rely heavily on discretionary income [5] - The probability of a recession has decreased from 32% to 23.5% recently, indicating a potential soft landing for the economy, which is a positive sign for FDIS investors [6] Group 3: Company-Specific Challenges - Tesla's earnings have faced a significant decline, with a 63.8% drop in annual earnings per share in 2025, falling from $2.32 to $0.84, and a substantial miss in Q1 2025 earnings estimates [7]