Fidelity MSCI Financials Index ETF

Fidelity MSCI Financials Index ETF (FNCL) tracks the MSCI USA IMI Financials 25/50 Index. That index holds US banks, insurers, payment companies, brokers and asset managers of all sizes. Its expense ratio of 0.084% is the second-lowest among nine similar financials funds and well below their 0.28% average. The trade-off is that it depends on one sector, and JPMorgan Chase alone makes up about 10% of assets.

• Over the year to Oct 27, 2026, FNCL returned +6.5%, 7th of 9 among similar funds.
• Its 5-year annualized return was +8.8% and its 10-year +12.7%.
• In the 2020 COVID crash it fell 44.3% and regained its old high 9.5 months after the low.
• Its worst full calendar year was 2018 (-13.4%); its best was 2021 (+35.0%).
• The deepest fall in its price history was 44.4% (Feb 14, 2020 to Mar 23, 2020), recovered by Jan 7, 2021.

As of Jul 31, 2026, the fund held 383 securities; the ten largest made up 48.43% of assets.

By sector

• Over the three months to Jul 31, 2026, investors withdrew a net $33.2M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -1.20%, +4.59%, +5.83%.

Fidelity MSCI Financials Index ETF (FNCL) is an index fund: it aims to match, before fees and expenses, the MSCI USA IMI Financials 25/50 Index. That index holds U.S. companies placed in the financial sector by GICS, a widely used sector-labeling system. Think banks, insurers, payment processors, brokers, asset managers, consumer lenders and mortgage REITs (trusts that own mortgages). "IMI" signals that the index reaches beyond giants into mid-size and smaller firms.

Fidelity need not buy every index stock. It uses representative sampling: owning a set of stocks that, together, resemble the index in company size, industry mix, price swings, yield and ease of trading. At least 80% of assets must sit in index securities. Since December 11, 2025, derivatives offering similar exposure count toward that 80%. As of July 31, 2026, its 383 holdings were nearly all stocks; two futures contracts made up about 0.01% of assets and cash 0.18%.

Big firms dominate. As of July 31, 2026, JPMorgan Chase was 10.4% of the fund, Berkshire Hathaway 7.9%, Visa 6.8% and Mastercard 5.2%; the top 10 totaled 48.4%. As a non-diversified fund, it may hold larger stakes in fewer companies, so a few stocks can swing its price. Trading is light: the prospectus filed November 24, 2025, reported 4% portfolio turnover, the share of holdings replaced in a year.

• FNCL charges 0.084% a year, versus an average of 0.28% 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 that fell 44.3% in early 2020, so it fits better as a smaller tilt beside broader holdings than as a core position.

FNCL could add focused exposure to US banks, insurers and payment networks next to a broad stock fund. It also pays quarterly dividends, which yielded 1.63% over the 12 months to October 27, 2026. Costs are low: the SEC's standard example puts expenses at $9 on $10,000 after one year and $108 after 10 years. The swings can be large. The fund launched in 2013, so it has no record from 2008. In the 2020 COVID crash it fell 44.3% in about a month and took about 9.5 months to recover. In the 2022 bear market it dropped 25.7% and didn't regain its peak until February 2024, about 16.8 months later. Its worst calendar year was 2018, at −13.4%. Anyone who had to take cash out during a drop like that would lock in losses. 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.