FDIS vs PEZ

FDISBFidelity MSCI Consumer Discretionary Index ETF

PEZDInvesco Dorsey Wright Consumer Cyclicals Momentum ETF

In short

FDIS Cheap and wide. FDIS holds about 300 US consumer discretionary stocks rather than the sector's mega-cap handful, and charges 0.08% while the typical fund in its peer group asks roughly four times that.

PEZ Most consumer discretionary funds own the sector by size. PEZ owns the trend: roughly 30 cyclical stocks picked and weighted by price momentum, reshuffled every quarter. Fee is 0.60% net of a waiver through August 31, 2028.

Stated mandate

FDIS The fund seeks to track, before fees and expenses, the performance of the MSCI USA IMI Consumer Discretionary 25/50 Index.

PEZ The fund tracks an index designed to identify companies exhibiting relative strength, or momentum, within the consumer cyclicals segment.

Why people hold it

• FDIS 0.08% a year, level with the cheapest large fund in the group (XLY) and a fraction of the roughly 0.35% cohort median.
• About 300 holdings: the MSCI USA IMI Consumer Discretionary 25/50 Index reaches past the mega caps into mid and small caps.
• Tracks that index closely, one of the stronger implementations among the 17 funds in its consumer discretionary group.
• A multi-billion-dollar fund from Fidelity, trading since 2013, that pays distributions quarterly.

• PEZ The index ranks consumer cyclicals by relative strength, holds at least 30 of them, and reconstitutes every January, April, July and October, so fading names get cut on a schedule.nasdaqomx.com
• Weights come from each stock's momentum score, not its market cap, so the portfolio can reach well past the sector's handful of giants.nasdaqomx.com
• Listed since October 2006, it has run the same Dorsey Wright momentum rules on US consumer cyclicals through multiple consumer cycles. Not a recent launch chasing a theme.

Worth knowing

• FDIS One sector, and a cyclical one. Returns ride on how freely US households spend, so the ride is bumpier than a total-market fund's.
• The 25/50 rules cap how large any single position gets, but this is still a concentrated slice of the US market.
• Moderately traded rather than the category's busiest ticker. Limit orders are the sensible habit, especially in size.

• PEZ Cost sits above the category median: 0.60% net of a waiver through August 31, 2028, against a 0.97% gross ratio, versus 0.08% for XLY and 0.09% for VCR.
• One of the smaller and thinner-traded funds in its category, so the bid-ask spread is a real part of the cost of getting in and out.
• A full quarterly rebuild means heavy turnover and a roster that can look unrecognizable year to year; momentum rules can get whipsawed when sector leadership flips.nasdaqomx.com

Full FDIS profile⁠

Full PEZ profile⁠