Fidelity MSCI Industrial Index ETF

Fidelity MSCI Industrial Index ETF (FIDU) tracks the MSCI USA IMI Industrials 25/25 Index. It held 361 US industrial stocks as of July 31, 2026, from aircraft and machinery makers to railroads and payroll firms. Its 0.084% annual expense ratio is the second-lowest of nine similar funds, against a 0.36% peer average. Its holdings overlap 96% with Vanguard Industrials ETF (VIS), so the two behave almost alike.

• Over the year to Oct 27, 2026, FIDU returned +7.5%, 4th of 9 among similar funds.
• Its 5-year annualized return was +11.7% and its 10-year +13.5%.
• In the 2020 COVID crash it fell 41.7% and regained its old high 7.6 months after the low.
• Its worst full calendar year was 2018 (-13.8%); its best was 2019 (+30.7%).
• The deepest fall in its price history was 42.3% (Feb 12, 2020 to Mar 23, 2020), recovered by Nov 9, 2020.

As of Jul 31, 2026, the fund held 361 securities; the ten largest made up 31.32% of assets.

By sector

• Over the three months to Jul 31, 2026, investors added a net $210.4M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -0.10%, +5.96%, -4.42%.

FIDU aims to match, before fees, the MSCI USA IMI Industrials 25/25 Index. That index holds US companies that the Global Industry Classification Standard (GICS), a widely used system for sorting companies by sector, places in industrials. These include makers of aircraft, defense equipment, building products, electrical gear and machinery. They also include commercial service firms, such as employment and environmental services, and transportation companies like airlines, couriers, railroads and truckers. "IMI" (investable market index) means the index reaches past large companies into mid-size and smaller ones. "25/25" refers to caps on how much weight the biggest companies can carry. Caps like these help a sector fund meet diversification rules.

Fidelity doesn't buy every stock in the index. It uses "representative sampling": it holds a selection of stocks picked to resemble the index in company size, industry mix, yield, price swings and ease of trading. At least 80% of assets must be in index securities. Sampling and fees can open small gaps with the index. Over the 10 years to November 29, 2025, the fund returned 11.16% a year, against 11.27% for the index.

From December 11, 2025, derivatives that give similar exposure also count toward the 80% rule. As of July 31, 2026, the fund held two stock index futures contracts with a near-zero weight, plus 0.12% in cash. Portfolio turnover was 3%, so holdings change little from year to year.

• FIDU charges 0.084% a year, versus an average of 0.36% 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 holds a single sector and fell 41.7% in the 2020 crash, so it fits better alongside a broad core holding than in place of one.

FIDU adds low-cost exposure to US manufacturers, defense contractors, railroads and business-service firms. In the SEC's standard example ($10,000 invested, 5% annual return), costs would total $9 after one year and $108 after 10 years. The fund launched in 2013, so it has no record from the 2008 crisis. It fell 41.7% in the 2020 COVID crash and had recovered by November 9, 2020, about 7.6 months after the March low. In 2022 it fell 22.3% from peak to trough, and it recovered by June 15, 2023, 8.5 months after its low. Its worst calendar year was 2018, at -13.8%. Anyone who has to sell shares for cash during a drop like that locks in the loss. Income is small: the trailing yield was 0.93% as of October 27, 2026, paid quarterly. Past results don't predict future ones, and a plan should look at the whole portfolio, not one fund.

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