The Fidelity MSCI Industrials Index ETF (FIDU) was launched on 10/21/2013, and is a passively managed exchange traded fund designed to offer broad exposure to the Industrials - Broad segment of the equity market.Retail and institutional investors increasingly turn to passively managed ETFs because they offer low costs, transparency, flexibility, and tax efficiency; these kind of funds are also excellent vehicles for long term investors.Investor-friendly, sector ETFs provide many options to gain low risk and diversified exposure to a broad group of companies in particular sectors. Industrials - Broad is one of the 16 broad Zacks sectors within the Zacks Industry classification. It is currently ranked 4, placing it in top 25%.Index DetailsThe fund is sponsored by Fidelity. It has amassed assets over $445.48 million, making it one of the average sized ETFs attempting to match the performance of the Industrials - Broad segment of the equity market. FIDU seeks to match the performance of the MSCI USA IMI Industrials Index before fees and expenses.MSCI USA IMI Industrials Index represents the performance of the industrial sector in the U.S. equity market.CostsSince cheaper funds tend to produce better results than more expensive funds, assuming all other factors remain equal, it is important for investors to pay attention to an ETF's expense ratio.Annual operating expenses for this ETF are 0.08%, making it the least expensive product in the space.It has a 12-month trailing dividend yield of 1.55%.Sector Exposure and Top HoldingsEven though ETFs offer diversified exposure which minimizes single stock risk, it is still important to look into a fund's holdings before investing. Luckily, most ETFs are very transparent products that disclose their holdings on a daily basis.This ETF has heaviest allocation in the Industrials sector--about 100% of the portfolio.Looking at individual holdings, Union Pacific Corp (UNP) accounts for about 4.49% of total assets, followed by United Parcel Service Cl B (UPS) and Honeywell International Inc (HON).The top 10 holdings account for about 31.89% of total assets under management.Performance and RiskSo far this year, FIDU has added about 2.51%, and is up roughly 3.64% in the last one year (as of 11/08/2020). During this past 52-week period, the fund has traded between $25.14 and $43.87.The ETF has a beta of 1.17 and standard deviation of 26.48% for the trailing three-year period, making it a medium risk choice in the space. With about 337 holdings, it effectively diversifies company-specific risk.AlternativesFidelity MSCI Industrials Index ETF carries a Zacks ETF Rank of 3 (Hold), which is based on expected asset class return, expense ratio, and momentum, among other factors. Thus, FIDU is a reasonable option for those seeking exposure to the Industrials ETFs area of the market. Investors might also want to consider some other ETF options in the space.Vanguard Industrials ETF (VIS) tracks MSCI US Investable Market Industrials 25/50 Index and the Industrial Select Sector SPDR ETF (XLI) tracks Industrial Select Sector Index. Vanguard Industrials ETF has $3.32 billion in assets, Industrial Select Sector SPDR ETF has $13.12 billion. VIS has an expense ratio of 0.10% and XLI charges 0.13%.Bottom LineTo learn more about this product and other ETFs, screen for products that match your investment objectives and read articles on latest developments in the ETF investing universe, please visit Zacks ETF Center.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fidelity MSCI Industrials Index ETF (FIDU): ETF Research Reports Union Pacific Corporation (UNP): Free Stock Analysis Report Honeywell International Inc. (HON): Free Stock Analysis Report United Parcel Service, Inc. (UPS): Free Stock Analysis Report Vanguard Industrials ETF (VIS): ETF Research Reports Industrial Select Sector SPDR ETF (XLI): ETF Research Reports To read this article on Zacks.com click here. Zacks Investment Research