What does it mean when one fund is labelled Consumer Cyclical and the other Consumer Defensive?

This describes what the companies sell and how customers behave. Consumer Cyclical firms, like those in FDIS, provide goods such as cars and luxury items that people buy when the economy is strong. Their earnings can be more volatile. In contrast, Consumer Defensive firms in FSTA sell essentials like food and toiletries. Demand for these products remains steady regardless of economic conditions, which typically results in more stable revenues and potentially lower volatility during market downturns.

Why do two ETFs with the same expense ratio have different performance histories?

The expense ratio represents the annual operating cost, which is 0.08% for both FDIS and FSTA. Since the fee is identical, differences in performance are primarily driven by the underlying stocks each fund holds. FDIS tracks the performance of consumer discretionary companies, which tend to grow faster during economic expansions. FSTA tracks consumer staples, which are less sensitive to economic cycles. Consequently, the sector exposure, not the fee, determines the return profile over time.

How do the top holdings in FDIS compare with those in FSTA?

The top holdings show a clear distinction between the two strategies. FDIS is heavily weighted towards Amazon at 22.68% and Tesla at 16.09%, representing growth and innovation. Conversely, FSTA holds Walmart at 13.85%, Costco at 11.57%, and Procter & Gamble at 9.77%. These holdings reflect defensive business models focused on reliable cash flows. This diversification means the funds serve different purposes: FDIS for potential capital appreciation in growth phases, and FSTA for stability and income during economic uncertainty.

Is there any overlap between the top ten holdings of these two funds?

Based on the top-ten holdings for both FDIS and FSTA, there is no overlap. The funds are completely distinct in their largest positions. FDIS focuses on retailers and manufacturers of non-essential goods like Amazon, Tesla, and Home Depot, while FSTA concentrates on essential goods like Walmart, Costco, and Pepsi. This lack of overlap confirms that these funds are not redundant and do not duplicate exposure to specific companies in their top tiers, allowing investors to combine them for a balanced sector allocation without unintended concentration in individual stocks.

Why might investors combine both ETFs in one portfolio?

Investors might combine both funds to gain a balanced exposure to the entire consumer sector. FDIS captures the growth from discretionary spending when confidence is high, while FSTA provides stability and income when spending habits tighten. This approach can smooth out portfolio volatility. If the economy booms, FDIS helps capture upside, whereas during a downturn, FSTA's defensive holdings may help cushion losses. The different market sensitivities of each fund make them complementary rather than directly competing.

How do the dividend yields compare, and what does this indicate?

FDIS currently has a dividend yield of 0.79%, while FSTA's yield is 2.27%. FSTA's higher yield reflects the nature of consumer staples companies, which often have less need for reinvestment and return more cash to shareholders. FDIS's lower yield is typical for growth-oriented discretionary firms, like Tesla, which reinvest heavily for expansion. This means FSTA is often better suited for investors seeking income, while FDIS appeals to those prioritising potential share price growth over current income generation.

How do these ETFs react to different phases of the economic cycle?

FDIS, representing consumer discretionary, tends to perform better during economic expansions when employment and wages rise, encouraging consumers to spend on big-ticket items. FSTA, representing consumer staples, is more resilient during recessions because essentials like food and household products remain in high demand. Investors often hold both to balance their portfolios, allowing them to participate in bull markets via FDIS while maintaining a safety net through FSTA when growth slows or the market faces corrections due to rising interest rates or recession fears.

How does the net asset value of these funds impact their trading?

FDIS holds net assets of $1.7 billion, whereas FSTA holds $1.4 billion. Both figures indicate a substantial asset base, providing ample liquidity for most investors. The difference of $300 million is not large enough to cause significant disparities in liquidity for retail investors. Since they were both established in October 2013, they have matured to attract considerable trading volume. This size ensures that investors can generally buy and sell shares easily without causing major fluctuations in the fund's share price.

What specific risk should investors be aware of with FDIS's Amazon and Tesla holdings?

A notable feature of FDIS is its high concentration in Amazon and Tesla, which together make up 38.77% of its top holdings. While this can boost returns when these tech-driven giants perform well, it also introduces significant single-stock risk. If either company experiences a decline due to regulatory issues, competition, or broader technology sector corrections, the overall performance of the ETF could be heavily impacted compared to a more diversified fund like FSTA, which has a broader spread of large-cap staples companies.

How can the expense ratio be used to evaluate cost-efficiency for these ETFs?

With both FDIS and FSTA charging an identical 0.08% expense ratio, they are considered highly cost-efficient compared to active funds or sector-specific ETFs from other providers. This low fee structure is beneficial because it allows more of the fund's total assets to remain invested in the market. Since fees are deducted from net assets, keeping them low ensures that returns are closer to the fund's gross performance. The fact that both have the same fee removes cost as a deciding factor between these specific choices.

Is one of these funds better suited for an investor's retirement account?

Neither fund is inherently 'better' for retirement; their suitability depends on the investor's life stage. FDIS provides growth potential which might appeal to younger investors with long time horizons who can tolerate volatility. FSTA's higher yield and lower volatility might appeal to retirees relying on their portfolio for income. Often, retirement portfolios use a combination of both to maintain a diversified strategy across the business cycle while ensuring a blend of capital appreciation and steady cash flow for living expenses.

Should I consult a financial advisor before choosing between these two ETFs?

While this comparison provides factual information regarding the expense ratios, holdings, and yields of FDIS and FSTA, it serves as educational content only. Choosing the right investment involves considering your personal financial goals, risk tolerance, and existing portfolio mix. Since these funds serve different roles—one for growth and one for income—consulting a qualified financial professional is recommended to ensure these assets fit your specific long-term financial strategy. Professional advice is necessary to tailor any investment choice to your unique situation.

FDIS vs FSTA

Two funds, one decision: we compare cost, performance and what each ETF actually holds in September 2026.

This page compares FDIS (Fidelity MSCI Consumer Discretionary ETF) and FSTA (Fidelity MSCI Consumer Staples ETF), examining fees, holdings, dividends and how each fund tracks its market. Both share an expense ratio of 0.08% and inception date of Oct 21, 2013, but differ in sector focus and yield. Educational content, not financial advice.

This page compares FDIS (Fidelity MSCI Consumer Discretionary ETF) and FSTA (Fidelity MSCI Consumer Staples ETF), examining fees, holdings, dividends and how each fund tracks its market. Both share an...

Fund Snapshot

Key Fund Metrics

FDIS

Metric

FSTA

0.08%

Expense Ratio

0.08%

0.79%

Dividend Yield

2.27%

$1.69B

Net Assets

$1.41B

246

Holdings

99

Oct 21, 2013

Inception Date

Oct 21, 2013

–

Index Tracked

–

Consumer Cyclical

Fund Category

Consumer Defensive

Both funds charge the same annual fee.

Shared Top Holdings

These funds do not share any of their top holdings.

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Investment Analysis

FDIS

Pros

FDIS offers low costs with an 0.08% expense ratio for consumer cyclical exposure.
The fund provides access to major growth sectors like technology-driven consumer services.
Established in 2013, it benefits from a mature operational history and Fidelity oversight.

Considerations

FDIS has a low dividend yield of 0.79%, limiting regular income generation.
Top holdings include significant weights in Amazon and Tesla, increasing concentration risk.
Net assets of $1.7 billion are smaller than some peer funds, potentially affecting liquidity.

FSTA

Pros

FSTA provides a higher dividend yield of 2.27% suitable for income-focused investors.
The fund offers defensive exposure to stable consumer staples companies during economic downturns.
With a 0.08% expense ratio, it maintains cost-efficient access to the defensive sector.

Considerations

FSTA holds substantial weights in Walmart and Costco, creating specific company concentration.
Net assets of $1.4 billion may result in slightly wider trading spreads than larger funds.
Consumer staples often underperform during strong economic expansions compared to cyclical sectors.

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About FDIS and FSTA

FDIS (FDIS)

FDIS is an exchange-traded fund from Fidelity that seeks to provide exposure to the US consumer discretionary sector by tracking a broad MSCI consumer discretionary index. It holds a diversified basket of companies that sell goods and services tied to consumer spending — from retailers, restaurants and leisure companies to automotive and household discretionary brands. Investors should know this ETF concentrates sector risk: performance is closely linked to consumer confidence, employment and economic cycles, so returns can be more volatile than broad-market funds. FDIS can be useful for adding focused growth exposure or expressing a view on consumer trends, but it does not offer the broad diversification of a total-market ETF. Costs, tracking error and portfolio turnover matter — check the fund prospectus for the current expense ratio, dividend policy and largest holdings. This information is educational, not personal advice; investors should consider their risk tolerance, investment horizon and seek professional guidance if unsure.

FSTA (FSTA)

Fidelity MSCI Consumer Staples ETF (FSTA) is an exchange-traded fund that provides investors with diversified exposure to companies in the consumer staples sector by tracking an MSCI consumer staples index. It aims to capture producers of everyday goods—such as food, beverages, household products and personal care—whose sales tend to be more resilient in economic downturns. As an ETF, FSTA trades like a stock and can be used for core or satellite positions in a portfolio seeking defensive characteristics or income potential from dividend-paying names. Investors should note that ETFs have fees and tracking error relative to their index, and past sector stability does not guarantee future returns. Market capitalisation is not applicable in the same way it is for single companies; assets under management and liquidity can change. This summary is educational only and not personal financial advice—values can fall as well as rise and suitability depends on your individual circumstances and objectives.

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