FMAT ETF Explained: Returns, Expense Ratio, Holdings and Alternative ETFs
The Fidelity MSCI Materials ETF is a passive product diversified across the US materials sector, offering exposure to materials companies at a very low fee. Sector concentration, fees, and the industry outlook are the key points to check, comparison with other materials ETFs is the main selection criterion, and the trading ticker is FMAT.
SubscribeWhat Is the Fidelity MSCI Materials ETF?
It is a passive sector ETF that tracks an index of US materials companies involved in the production and processing of natural resources, including chemicals, metals and mining, construction materials, and packaging. It diversifies across the materials sector as a whole.
It suits sector investors who want diversified exposure to the US materials sector at a very low fee.
It is an ETF managed by Fidelity using a passive (index-tracking) approach.
How Does the Fidelity MSCI Materials ETF Invest?
| Item | Details |
|---|---|
| Tracked Index | MSCI USA Materials Index |
| Management Style | Passive (sampling replication) |
| Rebalancing Frequency | Regular (per index rules) |
| Dividend Frequency | Quarterly |
| Total Expense Ratio | 0.08% |
It tracks, using a sampling method, an index of US materials companies involved in the production, extraction, and processing of natural resources, including chemicals, metals and mining, construction materials, and packaging. It diversifies across the materials sector by market-cap weighting and is run at a very low fee.
- Diversified across the US materials sector as a whole
- Sector exposure at a very low fee
Fidelity MSCI Materials ETF Size and Costs (AUM and Management Fee)
Assets under management (AUM) stand at $592.2M, and the total expense ratio is 0.08% per year.
Unlike broad-market ETFs, it is concentrated in the single materials sector, so it is more heavily influenced by commodity prices and the economic cycle, and its diversification benefit is limited.
Fidelity MSCI Materials ETF Performance and Trends
1-Year Price Performance
Dividend & Yield
52-Week Price RangeThe materials sector reacts sensitively to commodity prices, the global economy, and industrial demand. It can perform strongly during economic recoveries and commodity rallies, but it may struggle during economic slowdowns or commodity weakness, making it fairly sensitive to the business cycle.
Money tends to flow into materials ETFs when expectations for an economic recovery and stronger commodity prices rise, and outflows can occur when slowdown concerns or commodity weakness intensify.
Fidelity MSCI Materials ETF Pros and Cons
Its strength is diversification across the materials sector at a very low fee, while its weaknesses are sector concentration and sensitivity to the business cycle.
💪 Key Strengths
⚠️ Points to Watch
Alternative ETFs and Related Products to the Fidelity MSCI Materials ETF
XLB, VAW, IYM, and others shown in the table are similar ETFs that invest in the US materials sector, though their tracked indexes differ somewhat. For broader materials exposure, you can also compare global materials MXI, natural resources GUNR, and global metals and mining PICK. They differ in regional scope, sub-industry composition, and fees, so it is best to choose according to your investment style.
Peer Comparison ETFs| Ticker | Name | Price | Change | AUM | Total Expense Ratio | Dividend Yield | 1Y |
|---|---|---|---|---|---|---|---|
 XLB | State Street Materials Select Sector SPDR ETF | $51.32 | +0.2% | $7.9B | 0.08% | 1.68% | +15.9% |
 XME | State Street SPDR S&P Metals & Mining ETF | $101.29 | +0.9% | $3.8B | 0.35% | 0.34% | +1.0% |
 VAW | Vanguard Materials ETF | $226.73 | +0.2% | $2.9B | 0.09% | 1.4% | +11.9% |
 IYM | iShares U.S. Basic Materials ETF | $183.28 | +0.1% | $1.3B | 0.37% | 1.25% | +24.8% |
 FXZ | First Trust Materials AlphaDEX Fund | $77.00 | +0.2% | $368.6M | 0.64% | 1.34% | +25.7% |
Top Holdings| Ticker | Name | Weight | Price | Change | Market Cap | P/E | Dividend Yield |
|---|---|---|---|---|---|---|---|
| LIN | Linde Plc | 0.30% | $500.57 | -0.3% | $230.8B | 32.3 | 1.29% |
| NEM | Newmont Corp | 0.15% | $117.18 | +0.3% | $123.5B | 14.8 | 0.89% |
| FCX | Freeport-McMoRan Inc | 0.11% | $68.90 | +0.0% | $98.9B | 34.0 | 0.87% |
| SHW | Sherwin-Williams Co | 0.10% | $337.27 | +0.4% | $81.9B | 31.1 | 0.88% |
| CRH | CRH Plc | 0.05% | $86.03 | +0.9% | $57.2B | 15.2 | 1.82% |
| ECL | Ecolab Inc | 0.05% | $288.09 | -0.0% | $80.8B | 38.6 | 1.02% |
Fidelity MSCI Materials ETF Investor Checkpoints
These are the points to review before investing in FMAT. As a materials sector ETF, it is important to check sector concentration, business cycle sensitivity, commodity dependence, and the fee level in advance.
| Checkpoint | What to Check | Current Status |
|---|---|---|
| 💵 Expense Ratio | Confirm the very low fee of a passive sector ETF | Very low |
| 🏭 Sector Concentration | Check the degree of concentration in the single materials sector | Concentrated |
| 🔄 Business Cycle | Performance swings across the economic cycle | Sensitive |
| ⛏️ Commodity Dependence | The effect of commodity prices on performance | Sensitive |
Because it is concentrated in the single materials sector, it is heavily influenced by commodity prices and the economic cycle, and it may struggle during economic slowdowns or commodity weakness. The limits on diversification that come with sector concentration should also be considered.
It is a passive ETF suited to sector investors who want diversified exposure to the US materials sector at a very low fee. For investing in global materials or metals and mining, a global materials ETF may be the better choice, while FMAT can be an alternative for those who want US materials exposure.
SubscribeDisclaimer: This content is for informational purposes only and does not constitute investment advice. All investment responsibility lies with the investor.
This article reflects information as of June 4, 2026.
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