For investors seeking momentum, Fidelity MSCI Consumer Discretionary Index ETF FDIS is probably on the radar. The fund just hit a 52-week high and is up 29.82% from its 52-week low price of $68.77/share.
But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:
The underlying MSCI USA IMI Consumer Discretionary 25/50 Index represents the performance of the consumer discretionary sector in the U.S. equity market. The product charges 9 bps in annual fees (See: All Consumer Discretionary ETFs).
The consumer discretionary corner of the broad stock market has been an area to watch lately, given the dovish stance of the Fed and interest rate cut in September. Rising market expectation of another interest rate cut in 2024 is acting as a key tailwind for the fund. Low rates reduce the cost of borrowing, making interest rate-sensitive sectors like consumer discretionary appealing investment options.
Several factors, including a resilient economy and a continuous surge in the technology sector, have boosted the sector’s prospects.
Currently, FDIS has a Zacks ETF Rank #3 (Hold) with a Medium risk outlook. However, it might continue its strong performance in the near term, with a positive weighted alpha of 26.15 (as per Barchart.com), which gives cues of a further rally.
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Fidelity MSCI Consumer Discretionary Index ETF (FDIS): ETF Research Reports
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