(FDIS) Fidelity MSCI Consumer - Ratings and Ratios

The Fidelity MSCI Consumer Discretionary Index ETF is an exchange-traded fund that tracks the performance of the consumer discretionary sector in the US equity market by investing at least 80% of its assets in securities included in the MSCI USA IMI Consumer Discretionary 25/50 Index.

This fund provides investors with exposure to a broad range of consumer discretionary stocks, which include companies involved in the production of goods and services that are not essential, such as automobiles, hotels, restaurants, and leisure activities. The underlying index is designed to capture the performance of the consumer discretionary sector, which is often closely tied to consumer spending and economic growth.

With a non-diversified investment strategy, the fund may have a higher concentration of securities in a particular industry or sector, which can increase the risk of losses if that sector experiences a downturn. However, this also allows the fund to potentially benefit from the growth of the consumer discretionary sector.

Analyzing the technical data, we can observe that the funds price is currently below its 20-day simple moving average (SMA) of $92.50, indicating a potential short-term downtrend. However, the price is above its 200-day SMA of $90.83, suggesting a longer-term uptrend. The average true range (ATR) of 1.57, or 1.71%, indicates moderate volatility. Given these trends, we can forecast that the funds price may experience a short-term correction, but ultimately continue its longer-term upward trend if the consumer discretionary sector continues to grow.

Considering the fundamental data, the funds assets under management (AUM) of $1.748 billion indicate a moderate level of investor interest. As the consumer discretionary sector is closely tied to economic growth, we can forecast that the funds performance will be influenced by macroeconomic trends, such as changes in consumer spending and GDP growth. If the economy continues to grow, we can expect the funds performance to be positively impacted, driving the price higher.

Combining both technical and fundamental analysis, our forecast suggests that FDIS may experience a short-term correction, potentially down to $90.00, before continuing its longer-term uptrend, potentially reaching $105.00 in the next 6-12 months, driven by growth in the consumer discretionary sector and overall economic expansion.