Why does the Fidelity MSCI Materials Index ETF (FMAT) have a Zacks ETF Rank of 4 (Sell), despite its low expense ratio and diversification?

The article states that FMAT holds a Zacks ETF Rank of 4 (Sell), which indicates it is not recommended for purchase at this time; this ranking is assigned despite its low expense ratio and diversification, suggesting that other factors—such as subpar performance, unfavorable risk metrics, or index composition weaknesses—outweigh those advantages, and that investors should consider alternatives like GUNR or XLB instead.

What are the key characteristics of the Fidelity MSCI Materials Index ETF (FMAT) as described in the analysis?

The article describes FMAT as a passively managed ETF focused on the Materials - Broad segment, tracking the MSCI USA IMI Materials Index; it highlights the fund's low expense ratio, diversification, top holdings, performance data, and risk metrics as core elements of the evaluation, while noting its Zacks ETF Rank of 4 (Sell) and recommending alternatives such as GUNR or XLB.

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Jun 8, 2026

The article evaluates the Fidelity MSCI Materials Index ETF (FMAT), focusing on the Materials sector and top holdings like Linde plc. Despite low costs, it holds a Zacks Sell rank, suggesting investors consider alternatives.

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