Fidelity MSCI Financials Index ETF (FNCL)

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About the FNCL ETF

The Fidelity MSCI Financials Index ETF inception was on 21 October 2013. The Fidelity Management & Research Company LLC manages the ETF, and Fidelity is the fund’s issuer. FNCL seeks to track a market-cap-weighted index of large-cap US financial companies. Furthermore, the fund tracks to the MSCI USA IMI Financials Index and is benchmarks against the Thomson Reuters US Financials.  

FNCL Fact-set analytics insight

FNCL has a weighted market cap of $165.21 billion and $1.93 billion assets under management. The fund has an expense ratio of 0.08%.

FNCL performance analysis

FNCL performance analysis

The FNCL ETF had an annual return of 40.42% and a year-to-date return of 34.46%. The fund has a price per earnings ratio of 11.63, and its last dividend payment was on 17 September 2021 at $0.28 per share. The FNCL ETF has an annual dividend of $0.93.

FNCL key holdings

The Fidelity MSCI Financials Index ETF has 395 holdings. The fund invests in the financial sector, contributing to 94.15% of the weighting. The fund invests 94.82% of US companies. Furthermore, 82.91% are large-cap, 12.96% mid-cap, and 3.92% in small-cap equities.

The top ten holds are listed below. 

TickerHolding name% of assets
JPMJPMorgan Chase & Co.8.99%
BRK.BBerkshire Hathaway Inc. Class B7.04%
BACBank of America6.26%
WFCWells Fargo & Company3.80%
BLKBlackRock, Inc.2.63%
MSMorgan Stanley2.59%
GSGoldman Sachs Group, Inc.2.51%
CCitigroup Inc.2.37%
SHOWCharles Schwab Corporation2.20%
NEXTAmerican Express Company2.13%
SPGIS&P Global, Inc.2.13%

Industry outlook

ETFs focused in the financial sector rallied recently after the re-election of Jerome Powell as Fed Chair. The FNCL specifically gained 1.9% as a result of the announcement. 

Powell is a favorite among Wall Street’s banking sector, and the news was good for banking stocks. 

ETFs are a safe option for investors, especially in the financial sector. Since Covid-19 impacted economic growth in the US, the recent months have shown the country is recovering well. The FNCL fund has returned over 40% over the last year, and its low expense ratio of 0.08% makes for an affordable investment with high returns.

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