FMAT vs PICK

FMATBFidelity MSCI Materials Index ETF

PICKCiShares MSCI Global Metals & Mining Producers ETF

In short

FMAT The whole US materials sector in one cheap wrapper: chemicals, industrial gases, miners and packagers, roughly 120 names spanning large down to small caps, for 0.08% a year. Fidelity has run it since 2013.

PICK The miners fund that deliberately leaves out the gold. PICK tracks an index of roughly 300 global metals and mining producers with gold and silver names screened out, for 0.39% a year.

Stated mandate

FMAT The fund seeks to provide returns that generally correspond, before fees and expenses, to the MSCI USA IMI Materials Index.

PICK The fund seeks to track an index of global companies primarily engaged in mining, extracting, or producing diversified metals and industrial materials, while excluding gold and silver.

Why people hold it

• FMAT Costs 0.08% a year, tied with XLB for the lowest fee among materials ETFs and a fraction of what the typical fund in the group charges.
• Tracks MSCI's investable-market index, so the basket reaches past the mega caps into mid and small caps: roughly 120 holdings, not a dozen giants.fidelity.com
• Does what the label says. Its returns have hugged its stated MSCI materials index, one of the stronger index implementations in its peer group.
• Live since 2013 with a multi-hundred-million-dollar asset base and quarterly distributions.

• PICK Costs 0.39% a year against a 0.65% median in its critical-materials peer group, undercutting REMX, EART and SETM.
• The index rule is the whole point: diversified metals and industrial materials producers in, gold and silver out. A cleaner read on industrial demand than a mixed miners basket.ishares.com
• About 300 holdings across global markets, so no single mine, country or commodity carries the fund.
• Trading since 2012 and now a multi-billion-dollar, actively traded fund. One of the most established ways to own the group.

Worth knowing

• FMAT One sector, and a cyclical one. Materials profits ride commodity prices and industrial demand, so this can move a long way from the broad market in either direction.
• US-listed companies only, so the big Australian, Canadian and European miners sit outside the basket.fidelity.com
• Moderately traded rather than a volume leader, so spreads can run wider than at the busiest materials funds, especially in fast markets.

• PICK One sector, one cycle. Miner earnings ride metal prices, which means sharp moves in both directions.
• No gold or silver producers by design, so it doesn't double as a precious-metals sleeve.
• Distributions arrive annually or semiannually, not monthly, and a global book brings non-US currency exposure.

Full FMAT profile⁠

Full PICK profile⁠