Fidelity MSCI Consumer Discretionary Index ETF

Fidelity MSCI Consumer Discretionary Index ETF (FDIS) is an index fund that tracks the MSCI USA IMI Consumer Discretionary 25/50 Index. That index holds U.S. retailers, automakers, restaurants, hotels and other companies that rely on what consumers choose to spend. The fund's expense ratio of 0.084% is about a fifth of the 0.39% average for similar funds. It is also highly concentrated: Amazon and Tesla made up about 36% of assets as of July 31, 2026.

• Over the year to Oct 27, 2026, FDIS returned -2.3%, 4th of 9 among similar funds.
• Its 5-year annualized return was +3.8% and its 10-year +13.7%.
• In the 2020 COVID crash it fell 36.3% and regained its old high 2.7 months after the low.
• Its worst full calendar year was 2022 (-35.2%); its best was 2020 (+49.5%).
• The deepest fall in its price history was 39.2% (Nov 5, 2021 to Dec 28, 2022), recovered by Nov 6, 2024.

As of Jul 31, 2026, the fund held 245 securities; the ten largest made up 54.81% of assets.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $82.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +2.07%, -1.11%, -1.26%.

FDIS aims to match the MSCI USA IMI Consumer Discretionary 25/50 Index, before fees. The index holds U.S. companies that the Global Industry Classification Standard (GICS) places in the consumer discretionary sector. GICS is a widely used system for sorting companies into sectors. This sector covers the businesses most sensitive to economic cycles. On the manufacturing side, that means carmakers and makers of household durables, apparel and leisure equipment. On the services side, it means hotels, restaurants, media and retailers. Larger companies carry bigger weights, so a few giants dominate.

Fidelity uses "representative sampling." The fund doesn't have to own every stock in the index. Instead, it holds a sample chosen to match the index's size and industry mix, return variability, yield and liquidity. As of July 31, 2026, it had 245 holdings, with 99.6% in stocks and 0.31% in cash. Portfolio turnover was 5%, which is low.

The fund is classified as non-diversified. That means it can put more of its money into a few companies. As of July 31, 2026, Amazon was 22.8% of assets, Tesla was 13.0%, and the top 10 holdings were 54.8%. Starting December 11, 2025, derivatives such as futures count toward the fund's rule of keeping at least 80% of assets in index securities. Its futures positions were close to 0% of assets. The fund uses no leverage, options or buffers.

• FDIS charges 0.084% a year, versus an average of 0.39% for the similar funds below (2nd of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $9 in the first year and $108 over 10 years (assuming a 5% annual return).

It is a low-cost bet on one economically sensitive sector, with heavy weight in Amazon and Tesla, not a broad core holding.

FDIS adds a cheap tilt toward consumer spending, but it moves more than the market. Its one-year beta, a measure of how much it moves relative to the market, was 1.18 as of October 27, 2026. It fell about 36% in early 2020 and recovered in under three months. The 2022 drop was also about 36%, but recovery took 27 months. Its worst calendar year was 2022, at -35.2%. Its deepest drop, -39.2% from November 2021 to December 2022, took about 22 months to recover. Anyone forced to sell shares in a year like that would lock in losses. The fund launched in 2013, so it has no 2008 record. Income is small: the trailing yield was 0.78% as of October 27, 2026, paid quarterly. In the SEC's $10,000 example, costs come to $9 in the first year. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.