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
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.
|Ticker||Holding name||% of assets|
|JPM||JPMorgan Chase & Co.||8.99%|
|BRK.B||Berkshire Hathaway Inc. Class B||7.04%|
|BAC||Bank of America||6.26%|
|WFC||Wells Fargo & Company||3.80%|
|GS||Goldman Sachs Group, Inc.||2.51%|
|SHOW||Charles Schwab Corporation||2.20%|
|NEXT||American Express Company||2.13%|
|SPGI||S&P Global, Inc.||2.13%|
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.