Fidelity MSCI Materials Index ETF

Fidelity MSCI Materials Index ETF (FMAT) tracks the MSCI USA IMI Materials 25/50 Index. That index holds about 100 U.S. materials companies, including chemical makers, miners, steelmakers, construction-materials suppliers and packaging firms, and Linde is by far the largest. Its main draw is cost. The expense ratio is 0.084%, close to Vanguard Materials ETF (VAW) at 0.09% and well below the 0.37% average for similar funds.

• Over the year to Oct 27, 2026, FMAT returned +13.8%, 8th of 9 among similar funds.
• Its 5-year annualized return was +6.1% and its 10-year +10.1%.
• In the 2020 COVID crash it fell 37.5% and regained its old high 3.8 months after the low.
• Its worst full calendar year was 2018 (-17.4%); its best was 2021 (+27.5%).
• The deepest fall in its price history was 41.1% (Jan 26, 2018 to Mar 23, 2020), recovered by Sep 1, 2020.

As of Jul 31, 2026, the fund held 101 securities; the ten largest made up 56.26% of assets.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $129K (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.11%, -1.25%, -2.62%.

FMAT tries to match the performance of the MSCI USA IMI Materials 25/50 Index, before fees. The index covers U.S. companies in the materials sector of GICS (the Global Industry Classification Standard, a system for sorting companies into sectors). That sector includes chemicals, construction materials, glass, paper, forest products and packaging. It also includes metals and mining, including steel. "IMI" means the index takes in large, mid-sized and smaller companies. "25/50" refers to limits that stop any one company, or a handful of the largest, from taking over the index.

Fidelity invests at least 80% of assets in the index's stocks. It uses "representative sampling," which means it owns a set of stocks that matches the index's size, industry mix, yield and volatility, so it may not hold every stock in the index. As of July 31, 2026, it held 101 companies. The 10 largest made up about 56% of assets, and Linde alone was nearly 15%. Portfolio turnover was 6%, so trading is light.

Since December 11, 2025, derivatives can count toward the 80% rule. As of July 31, 2026, the fund held one small materials futures contract with a weight near zero, plus 0.13% in cash. The fund is classified as non-diversified, so a single large holding can move the share price more. Like any ETF, it trades at market prices, which can differ slightly from the value of its holdings.

• FMAT charges 0.084% a year, versus an average of 0.37% 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).

FMAT is a single-sector fund tied to commodity prices and industrial demand, so it fits better as a small add-on than as a foundation.

FMAT adds exposure to chemicals, mining, steel and building materials, but it has swung hard. It launched in 2013, so it has no record from the 2008 crisis. In the 2020 COVID crash, it fell 37.5% in about a month and regained its peak by July 17, 2020. In 2022, it dropped 25.4% and took about 17 months, until February 29, 2024, to recover. Its worst calendar year was 2018, at -17.4%. Its deepest decline was 41.1%, from January 2018 to March 2020. Someone who had to sell shares during those stretches would have locked in losses.

Income is modest. The trailing yield was 1.41% as of October 27, 2026, paid quarterly. Costs are low: about $9 in the first year on $10,000 under the SEC's standard example. 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.