A sound investment process and strong management team underpin Fidelity MSCI Consumer Staples ETF's Morningstar Medalist Rating of Silver. The portfolio maintains a cost advantage over competitors, priced within the lowest fee quintile among peers.  

 The strategy's effective investment philosophy supports a High Process Pillar rating. Independent of the rating, analysis of the strategy's portfolio shows it has maintained a significant underweight position in liquidity exposure and an overweight in volatility exposure compared with category peers. Low liquidity risk exposure is attributed to stocks with a low trading volume, limiting managers' flexibility. And high volatility exposure is rooted in stocks that have a higher standard deviation of returns. The strategy’s management team earns an Above Average People Pillar rating. The strategy's parent organization earns the firm an Above Average Parent Pillar rating. People Pillar and Parent Pillar ratings for this strategy are indirectly assigned by a Morningstar analyst rather than algorithmically derived. Please see the notes following each pillar section for more details. The details of assigning methods can be found in each pillar section.

Analyst Rating

Procter & Gamble

Costco

Walmart

Coca-Cola

PepsiCo

Philip Morris

Mondelez

Target

Altria

Colgate-Palmolive

Morningstar's evaluation of this security's process aims to determine the likelihood that it will outperform its Morningstar Category index on a risk-adjusted basis over the long term. Fidelity MSCI Consumer Staples ETF earns a High Process Pillar rating. The main contributor to the rating is that this fund tracks an index. Historical data, such as Morningstar's Active/Passive Barometer, finds that passively managed funds have generally outperformed their active counterparts, especially over longer time horizons. Excellent risk-adjusted performance also influences the rating. This can be seen in the fund's five-year alpha calculated relative to the category average, which suggests that the process was successful over that period. The parent firm's five-year risk-adjusted success ratio of 64% reinforces the process. The measure indicates the percentage of a firm's funds that survived and surpassed their respective category's median Morningstar Risk-Adjusted Return for the period. Their noteworthy success ratio suggests that this firm does well for investors and that this fund may benefit from that.

The investment strategy as stated in the fund's prospectus is:  The investment seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Consumer Staples 25/50 Index.  The fund invests at least 80% of assets in securities included in the fund's underlying index. The fund's underlying index is the MSCI USA IMI Consumer Staples 25/50 Index, and which represents the performance of the consumer staples sector in the U.S. equity market. It may or may not hold all of the securities in the MSCI USA IMI Consumer Staples 25/50 Index. The fund is non-diversified. 

 The portfolio has allocations in its top two sectors, consumer defensive and real estate, that are similar to the category. The sectors with low exposure compared to category peers are healthcare and consumer cyclical; however, the allocations are similar to the category. The portfolio is positioned across 109 holdings and is quite concentrated. Specifically, 61.6% of the fund’s assets are housed within the top 10 holdings, as opposed to the category’s 53.8% average. And in closing, in terms of portfolio turnover, looking at year-over-year movements, 9% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.

High

Process

Fidelity MSCI Consumer Staples ETF's strong team drives the strategy's Above Average People Pillar rating. There are three managers listed on the fund: Paul Whitehead, Jennifer Hsui, Peter Sietsema. Experience on the team is abundant, with 13 years of average portfolio management experience. Together, they manage a total of 29 strategies, with solid long-term prospects. The strategies average a Silver asset-weighted Morningstar Medalist Rating, indicating a position to deliver positive alpha relative to the category median in aggregate.  

 Note: This People Pillar rating is indirectly assigned by an analyst. Morningstar analysts evaluate the People Pillar for passive products at the brand level and may also differentiate by asset class. There is at least one other passive strategy at the firm that is covered by a Morningstar analyst, so the People Pillar rating of the fund is inherited from the rating that the Morningstar analyst assigned to investment vehicles under the same brand name.

Above Average

People

Fidelity earns an Above Average Parent rating because of its ability to stay ahead of its competition.

The firm's successful stock-picking mutual funds fueled its rise to prominence, and it has adapted well to investor preferences that have shifted markedly over the past two decades. Index funds and exchange-traded funds have garnered most of the industry's flows as money has gushed from actively managed products—Fidelity's included. Yet overall, the asset-management division has continued to achieve positive organic growth by introducing or maintaining aggressive pricing on its own suite of passively managed funds and expanding its menu of client-demanded investment structures, such as managed accounts and collective investment trusts. These moves are made possible by the firm's strong distribution network, scale, established brand, and willingness to tolerate losses on some products in pursuit of broader strategic objectives.

The firm is not without blemishes. It could stand to rationalize its lineup of active equity funds and do better to maintain continuity in an equity fund's portfolio construction as the fund's leadership inevitably changes.

Overall, the firm has served its funds' investors well. It boasts a topnotch fixed-income division and remains home to some of the industry's most talented equity managers and a strong team supporting its well-run target-date series.

Parent

Fidelity MSCI Consumer Staples ETF

FSTA tracks a market-cap-weighted index of US consumer staples companies across the entire market-cap spectrum.

Bunge Global SA

Conagra Brands

Medifast

Invesco S&P 500 Equal Weight Consumer Staples ETF

Molson Coors Brewing

USANA Health Sciences

Consumer Staples Select Sector SPDR Fund

The tobacco and household products industries show the best value scores in the sector.

FSTA: Consumer Staples Sector Dashboard For March

If you're interested in broad exposure to the Consumer Staples - Broad segment of the equity market, look no further than the Fidelity MSCI Consumer Staples Index ETF (FSTA), a passively managed exchange traded fund launched on 10/21/2013.

Should You Invest in the Fidelity MSCI Consumer Staples Index ETF (FSTA)?

iShares Evolved U.S. Discretionary Spending ETF

VanEck Vectors Retail ETF

Vanguard Consumer Staples ETF

Vizio Holding Corp

Walmart (WMT) spread strong optimism by reporting robust fourth-quarter fiscal 2024 results, providing a big boost to its annual dividend and unveiling the $2.3 billion takeover of smart TV maker Vizio (VZIO).

Walmart Soars on Earnings, Dividend & Vizio Deal: ETFs to Buy

Soft drink bellwether Coca-Cola Company (KO) reported earnings yesterday and PepsiCo (PEP) reported last week. Both giants came up with upbeat earnings.

Coke-Pepsi Earnings Put These ETFs in Focus

Fidelity® MSCI Consumer Staples Index ETF is a defensive sector fund that aims to match the performance of the MSCI USA IMI Consumer Staples Index. Consumer staples are essential goods and services that remain in demand regardless of the state of the economy, making them a defensive sector. The FSTA ETF has a concentrated sector composition in consumer staples and offers low-risk exposure to a broad array of companies within the sector.

FSTA: A Good Staple For An Equity Portfolio

Amplify AI Powered Equity ETF

ProShares Short Bitcoin Strategy ETF

SPDR Dow Jones Industrial Average ETF

Defiance Pure Electric Vehicle ETF

Roundhill Magnificent Seven ETF

Roundhill Meme ETF

ProShares Short Ether Strategy ETF

Invesco S&P 500 Enhanced Value ETF

SPDR S&P 500 ETF Trust

Charlie Munger's investment philosophy, which prioritizes quality, selective investing, and a long-term perspective, can influence ETF investors to be discerning in their choices and avoid excessive diversification.

A Tribute to Munger With His Philosophy-Enriched ETFs

Nasdaq F&B Shs Nasdaq Food & Beverage

iShares U.S. Consumer Goods ETF

Beverage maker Coca-Cola (KO) is scheduled to report third-quarter 2023 results on Oct 24 before market open.

Coca-Cola Earnings Preview: ETFs in Focus

PepsiCo (PEP) reported robust third-quarter 2023 results, wherein revenues and earnings surpassed the Zacks Consensus Estimate.

PepsiCo Earnings Beats Overall, Lifts View: ETFs to Benefit

Fidelity MSCI Consumer Staples ETF has performed relatively well in 2022 but is weakening in 2023. FSTA offers better downside protection than the broader market during economic downturns. FSTA has a weaker growth profile than the broader market and its valuation is still rich, posing downside risks.

FSTA Has A Rich Valuation And Its Risk/Reward Profile Is Not Attractive

Fidelity MSCI Consumer Staples Index ETF has performed poorly in 2023, down over -7%, due to higher rates and lack of a recession. The MSCI USA IMI Consumer Staples 25/50 Index provides the framework for FSTA's holdings, which are highly concentrated. Valuations for consumer staples are stretched, and growth levels are slowing, leading to a continued de-rating for FSTA.

FSTA: Consumer Staples Are Not A Safe Heaven Anymore

Amplify Travel Tech ETF

First Trust NASDAQ Global Auto Index Fund

Defiance Hotel Airline and Cruise ETF

Fidelity MSCI Consumer Discretionary ETF

First Trust Consumer Discretionary AlphaDEX Fund

First Trust Consumer Staples AlphaDEX Fund

Goldman Sachs Future Consumer Equity ETF

First Trust S-Network E-Commerce ETF

iShares U.S. Consumer Services ETF

ALPS Global Travel Beneficiaries ETF

iShares Global Consumer Staples ETF

Tema Luxury ETF

Roundhill S&P Global Luxury Etf

Direxion Daily Travel & Vacation Bull 2X Shares

Invesco DWA Consumer Cyclicals Momentum ETF

Invesco S&P SmallCap Consumer Staples ETF

 Invesco S&P SmallCap Consumer Discretionary ETF

Invesco DWA Consumer Staples Momentum ETF

Invesco S&P 500 Equal Weight Consumer Discretionary ETF

iShares Global Consumer Discretionary ETF

Vanguard Consumer Discretionary ETF

Consumer Discretionary Select Sector SPDR Fund

SPDR S&P Retail ETF

Some consumer discretionary stocks have performed better than others. Luxury, homebuilding, and travel have been a bright spots.

Outlook For Consumer Discretionary Stocks Amid Shifting Spending Patterns

Walmart (WMT) reported robust second-quarter fiscal 2024 results, wherein it surpassed both earnings and revenue estimates and raised its outlook for the full year.

ETFs to Bet on as Walmart Beats Q2 Earnings Estimates

Walmart has been hitting record highs ahead of its earnings release. It has a strong chance of beating estimates this quarter.

Walmart Likely to Beat Q2 Earnings Estimates: ETFs in Focus

Both Coca-Cola and PepsiCo have beaten top-and-bottom lines in the second quarter. Guidance also remains upbeat.

Coke, PepsiCo Earnings Should Drive Consumer Staples ETFs

First Trust Morningstar Dividend Leaders Index Fund

Cambria Cannabis ETF

Philip Morris beat both earnings and revenue estimates in the second quarter. Look into some ETFs to capitalize.

5 ETFs to Make the Most of Philip Morris's Q2 Earnings Beat

No consumer staples subsector shows an attractive combination of value and quality scores. The most overvalued one is personal care products. Fidelity® MSCI Consumer Staples Index ETF is an alternative to Consumer Staples Select Sector SPDR® Fund ETF.

FSTA: Consumer Staples Dashboard For July

Fidelity MSCI Health Care ETF

Exchange-traded funds provide investors with an easy way to diversify and minimize risk. The Fidelity MSCI Health Care Index ETF contains more than 430 of the top U.S. healthcare stocks.

Worried About the Markets? Buy and Hold These 2 Cheap ETFs.

Qraft AI-Enhanced US Large Cap Momentum ETF

Walmart surpassed both earnings and revenue estimates and raised its outlook for the full year.

Walmart Beats on Q1 Earnings, Lifts View: ETFs in Focus

FSTA: Consumer Staples Dashboard For April

Johnson & Johnson

Kellogg

Pandora Media

A consumer staple ETF (exchange-traded fund) is an investment fund that tracks a series of stocks in companies that produce essential goods and services. The definition of a "consumer staple" usually includes products that consumers typically purchase regardless of economic conditions.

10 Best Consumer Staples ETFs

Upbeat view provided by Coca-Cola Company and PepsiCo earnings should boost consumer staples ETFs.

Coke, PepsiCo Earnings Should Boost Staples ETFs

Walmart (WMT) reported fourth-quarter fiscal 2023 results, wherein it surpassed both earnings and revenue estimates but issued a weaker-than-expected outlook for the full year.

Walmart Beats on Q4 Earnings, Guides Lower: ETFs in Focus

Household products are the safest industry regarding valuation and quality scores. Staple/food retail and personal care are overvalued by over 25% relative to their historical baseline.

FSTA: Consumer Staples Dashboard For January

Advisorshares Hotel ETF

Advisorshares Restaurant ETF

Global X Funds - Global X E-commerce ETF

Amplify Online Retail ETF

iShares Evolved U.S. Consumer Staples ETF

Proshares Online Retail ETF

Invesco Dynamic Food & Beverage ETF

40% of the online merchandise for U.S. retailers is on sale as we enter Black Friday week of 2022. The average percent discount in November is 36.3%; this has come down from the YTD levels of 37.6% and is significantly below the pre-pandemic levels.

U.S. Retailers Ramp Up Black Friday Deals

Walmart (WMT) spread optimism into the broad sector and the stock market following the upbeat third-quarter fiscal 2023 results.

News for Fidelity MSCI Consumer Staples ETF ETF (FSTA)