UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07319
Fidelity Covington Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Nicole Macarchuk, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
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Date of fiscal year end: | October 31 |
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Date of reporting period: | October 31, 2024 |
Item 1.
Reports to Stockholders
| |
| | ANNUAL SHAREHOLDER REPORT | AS OF OCTOBER 31, 2024 | This report describes changes to the Fund that occurred during the reporting period. |
| | Fidelity® International Value Factor ETF Fidelity® International Value Factor ETF : FIVA Principal U.S. Listing Exchange :NYSEArca NYSE Arca, Inc. |
| | | |
This annual shareholder report contains information about Fidelity® International Value Factor ETF for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at fundresearch.fidelity.com/prospectus/sec. You can also request this information by contacting us at 1-800-FIDELITY or by sending an e-mail to fidfunddocuments@fidelity.com.
What were your Fund costs for the last year?(based on hypothetical $10,000 investment)
FUND COST (PREVIOUS YEAR)
| | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment | |
| Fidelity® International Value Factor ETF | $ 21 | 0.19% | |
What affected the Fund's performance this period?
•International stocks achieved a strong gain for the 12 months ending October 31, 2024. Resilient global economic growth and a slowing in the pace of inflation in certain regions, as well as a shift to global monetary easing, contributed to a favorable backdrop, despite persistent geopolitical risk.
•Against this backdrop, Europe ex U.K. gained 20% and contributed most to the fund's performance for the fiscal year, followed by the U.K. (+27%).
•By sector, financials gained roughly 47% and contributed most. Industrials, which gained 27%, also helped, benefiting from the capital goods industry (+31%), as did consumer staples, which advanced approximately 17%. The consumer discretionary sector rose about 12%, while information technology gained roughly 15% and health care advanced 8%. Other contributors included the communication services (+17%), utilities (+14%), real estate (+16%), energy (+4%) and materials (+1%) sectors.
•Turning to individual stocks, the top contributor was UniCredit (+84%), from the banks group. Within the same industry, Barclays (+99%) boosted the fund. In software & services, NEC (+85%) contributed. Saint-Gobain, within the capital goods industry, gained about 70% and was helpful. Lastly, in insurance, Manulife Financial (+76%) contributed.
•Conversely, the biggest detractor was ASML (-28%), from the semiconductors & semiconductor equipment category. From the same industry, Tokyo Electron (-21%) and Renesas Electronics (-15%) hindered the fund. Lastly, in pharmaceuticals, biotechnology & life sciences, Novo-Nordisk (-18%) and Ono Pharmaceutical (-25%) hurt the fund's result this period.
How did the Fund perform over the life of Fund?
CUMULATIVE PERFORMANCE
January 16, 2018 through October 31, 2024.
Initial investment of $10,000.
Fidelity® International Value Factor ETF | $10,000 | $8,554 | $9,327 | $7,805 | $11,033 | $8,956 | $10,632 |
Fidelity International Value Factor Index℠ | $10,000 | $8,585 | $9,404 | $7,917 | $11,264 | $9,197 | $10,973 |
MSCI World ex USA Index | $10,000 | $8,705 | $9,693 | $9,053 | $12,301 | $9,611 | $10,843 |
| | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
AVERAGE ANNUAL TOTAL RETURNS:| | 1 Year | 5 Year | Life of Fund |
Fidelity® International Value Factor ETF - NAV A | 20.51% | 6.56% | 3.72% |
Fidelity® International Value Factor ETF - Market Price B | 19.30% | 6.63% | 3.52% |
Fidelity International Value Factor Index℠ A | 20.90% | 7.13% | 4.25% |
MSCI World ex USA Index A | 24.13% | 6.79% | 4.47% |
A From January 16, 2018
B From January 18, 2018, date initially listed on the NYSE Arca, Inc. exchange
Visit www.fidelity.com for more recent performance information. |
The Fund's past performance is not a good predictor of the Fund's future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. |
Key Fund Statistics(as of October 31, 2024)
KEY FACTS | | |
| Fund Size | $166,482,976 | |
| Number of Holdings | 107 | |
| Total Advisory Fee | $228,713 | |
| Portfolio Turnover | 71% | |
What did the Fund invest in?
(as of October 31, 2024)
MARKET SECTORS (% of Fund's net assets) | | |
| Financials | 23.4 | |
| Industrials | 17.5 | |
| Health Care | 11.1 | |
| Consumer Discretionary | 9.9 | |
| Consumer Staples | 8.3 | |
| Information Technology | 7.5 | |
| Materials | 7.3 | |
| Energy | 5.1 | |
| Communication Services | 4.0 | |
| Utilities | 3.3 | |
| Real Estate | 2.0 | |
| |
| Common Stocks | 99.4 |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.6 |
ASSET ALLOCATION (% of Fund's net assets) |
|
|
| Japan | 22.2 |
| United Kingdom | 12.2 |
| France | 11.0 |
| Canada | 10.5 |
| Germany | 8.2 |
| United States | 7.2 |
| Australia | 6.3 |
| Switzerland | 3.8 |
| Netherlands | 3.7 |
| Others | 14.9 |
GEOGRAPHIC DIVERSIFICATION (% of Fund's net assets) |
|
| |
|
TOP HOLDINGS(% of Fund's net assets) | | |
| Novo Nordisk A/S Series B | 2.0 | |
| Hong Kong Exchanges & Clearing Ltd | 1.9 | |
| ASML Holding NV | 1.7 | |
| LVMH Moet Hennessy Louis Vuitton SE | 1.6 | |
| Daimler Truck Holding AG | 1.5 | |
| UBS Group AG | 1.5 | |
| KDDI Corp | 1.5 | |
| Allianz SE | 1.5 | |
| HSBC Holdings PLC | 1.4 | |
| Macquarie Group Ltd | 1.4 | |
| | 16.0 | |
How has the Fund changed?
This is a summary of certain changes to the Fund since November 1, 2023. For more complete information, you may review the Fund's next prospectus, which we expect to be available by November 29, 2024 at fundresearch.fidelity.com/prospectus/sec or upon request at 1-800-FIDELITY or by sending an e-mail to fidfunddocuments@fidelity.com.
The fees associated with this class changed during the reporting year.The variations in class fees are primarily the result of the following changes: - Management fee
- Operating expenses
The fund's contractual management fee was reduced during the reporting period. | |
| Fidelity, the Fidelity Investments Logo and all other Fidelity trademarks or service marks used herein are trademarks or service marks of FMR LLC. Any third-party marks that are used herein are trademarks or service marks of their respective owners. © 2024 FMR LLC. All rights reserved. |
| | For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit fundresearch.fidelity.com/prospectus/sec 1.9913998.100 3064-TSRA-1224 |
| |
| | ANNUAL SHAREHOLDER REPORT | AS OF OCTOBER 31, 2024 | This report describes changes to the Fund that occurred during the reporting period. |
| | Fidelity® International Multifactor ETF Fidelity® International Multifactor ETF : FDEV Principal U.S. Listing Exchange :CboeBZX Cboe BZX Exchange, Inc. |
| | | |
This annual shareholder report contains information about Fidelity® International Multifactor ETF for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at fundresearch.fidelity.com/prospectus/sec. You can also request this information by contacting us at 1-800-FIDELITY or by sending an e-mail to fidfunddocuments@fidelity.com.
What were your Fund costs for the last year?(based on hypothetical $10,000 investment)
FUND COST (PREVIOUS YEAR)
| | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment | |
| Fidelity® International Multifactor ETF | $ 21 | 0.19% | |
What affected the Fund's performance this period?
•International stocks achieved a strong gain for the 12 months ending October 31, 2024. Resilient global economic growth and a slowing in the pace of inflation in certain regions, as well as a shift to global monetary easing, contributed to a favorable backdrop, despite persistent geopolitical risk.
•Against this backdrop, Europe ex U.K. gained about 19% and contributed most to the fund's performance for the fiscal year, followed by the U.K. (+32%).
•By sector, financials gained 36% and contributed most. Industrials, which gained 27%, also helped, as did health care, which advanced 20%, lifted by the pharmaceuticals, biotechnology & life sciences industry (+21%). The consumer staples sector rose 20%, while consumer discretionary gained approximately 24% and communication services advanced roughly 17%. Other contributors included the utilities (+16%), information technology (+31%), real estate (+16%) and materials (+14%) sectors.
•Conversely, from a sector standpoint, energy returned about 1% and detracted for the 12 months.
•Turning to individual stocks, the top contributor was Otsuka Holdings (+86%), from the pharmaceuticals, biotechnology & life sciences group. From the same group, Novo-Nordisk (+17%) lifted the fund. In media & entertainment, Publicis Groupe (+45%) and Auto Trader (+44%) helped the fund. Lastly, in household & personal products, Unilever gained 33% and contributed.
•In contrast, the biggest detractor was Stellantis (-44%), from the automobiles & components category. Ono Pharmaceutical, within the pharmaceuticals, biotechnology & life sciences category, returned approximately -24% and hurt the fund. Nippon Telegraph & Telephone (-15%), a stock in the telecommunication services group, detracted. Frontline, within the energy sector, returned -21% and hurt the fund. Lastly, in consumer staples distribution & retail, Jeronimo Martins (-18%) detracted this period.
How did the Fund perform over the life of Fund?
CUMULATIVE PERFORMANCE
February 26, 2019 through October 31, 2024.
Initial investment of $10,000.
Fidelity® International Multifactor ETF | $10,000 | $10,672 | $10,061 | $12,584 | $9,770 | $10,803 |
Fidelity International Multifactor Index℠ | $10,000 | $10,729 | $10,153 | $12,760 | $9,975 | $11,075 |
MSCI World ex USA Index | $10,000 | $10,664 | $9,961 | $13,534 | $10,574 | $11,930 |
| | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
AVERAGE ANNUAL TOTAL RETURNS:| | 1 Year | 5 Year | Life of Fund |
Fidelity® International Multifactor ETF - NAV A | 21.88% | 4.29% | 4.96% |
Fidelity® International Multifactor ETF - Market Price B | 20.70% | 4.32% | 5.06% |
Fidelity International Multifactor Index℠ A | 22.23% | 4.76% | 5.47% |
MSCI World ex USA Index A | 24.13% | 6.79% | 7.15% |
A From February 26, 2019
B From February 28, 2019, date initially listed on the Cboe BZX Exchange, Inc. exchange
Visit www.fidelity.com for more recent performance information. |
The Fund's past performance is not a good predictor of the Fund's future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. |
Key Fund Statistics(as of October 31, 2024)
KEY FACTS | | |
| Fund Size | $87,167,560 | |
| Number of Holdings | 205 | |
| Total Advisory Fee | $116,603 | |
| Portfolio Turnover | 55% | |
What did the Fund invest in?
(as of October 31, 2024)
MARKET SECTORS (% of Fund's net assets) | | |
| Financials | 18.5 | |
| Health Care | 16.5 | |
| Industrials | 13.5 | |
| Consumer Staples | 12.4 | |
| Energy | 9.5 | |
| Communication Services | 8.8 | |
| Real Estate | 6.6 | |
| Consumer Discretionary | 5.9 | |
| Information Technology | 4.4 | |
| Materials | 3.2 | |
| |
| Common Stocks | 99.3 |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.7 |
ASSET ALLOCATION (% of Fund's net assets) |
|
|
| Japan | 21.3 |
| Canada | 13.1 |
| United Kingdom | 11.8 |
| Switzerland | 7.1 |
| France | 6.9 |
| United States | 6.9 |
| Australia | 4.8 |
| Germany | 4.5 |
| Netherlands | 3.8 |
| Others | 19.8 |
GEOGRAPHIC DIVERSIFICATION (% of Fund's net assets) |
|
| |
|
TOP HOLDINGS(% of Fund's net assets) | | |
| Novo Nordisk A/S Series B | 2.1 | |
| PSP Swiss Property AG | 1.7 | |
| Shell PLC | 1.6 | |
| Daito Trust Construction Co Ltd | 1.6 | |
| Roche Holding AG | 1.4 | |
| Astrazeneca PLC | 1.4 | |
| Novartis AG | 1.4 | |
| TotalEnergies SE | 1.2 | |
| Unilever PLC | 1.2 | |
| Quebecor Inc Class B | 1.2 | |
| | 14.8 | |
How has the Fund changed?
This is a summary of certain changes to the Fund since November 1, 2023. For more complete information, you may review the Fund's next prospectus, which we expect to be available by November 29, 2024 at fundresearch.fidelity.com/prospectus/sec or upon request at 1-800-FIDELITY or by sending an e-mail to fidfunddocuments@fidelity.com.
The fees associated with this class changed during the reporting year.The variations in class fees are primarily the result of the following changes: - Management fee
- Operating expenses
- Expense reductions
The fund's contractual management fee was reduced during the reporting period. | |
| Fidelity, the Fidelity Investments Logo and all other Fidelity trademarks or service marks used herein are trademarks or service marks of FMR LLC. Any third-party marks that are used herein are trademarks or service marks of their respective owners. © 2024 FMR LLC. All rights reserved. |
| | For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit fundresearch.fidelity.com/prospectus/sec 1.9914007.100 3355-TSRA-1224 |
| |
| | ANNUAL SHAREHOLDER REPORT | AS OF OCTOBER 31, 2024 | This report describes changes to the Fund that occurred during the reporting period. |
| | Fidelity® Emerging Markets Multifactor ETF Fidelity® Emerging Markets Multifactor ETF : FDEM Principal U.S. Listing Exchange :CboeBZX Cboe BZX Exchange, Inc. |
| | | |
This annual shareholder report contains information about Fidelity® Emerging Markets Multifactor ETF for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at fundresearch.fidelity.com/prospectus/sec. You can also request this information by contacting us at 1-800-FIDELITY or by sending an e-mail to fidfunddocuments@fidelity.com.
What were your Fund costs for the last year?(based on hypothetical $10,000 investment)
FUND COST (PREVIOUS YEAR)
| | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment | |
| Fidelity® Emerging Markets Multifactor ETF | $ 30 | 0.27% | |
What affected the Fund's performance this period?
•International stocks achieved a strong gain for the 12 months ending October 31, 2024. Resilient global economic growth and a slowing in the pace of inflation in certain regions, as well as a shift to global monetary easing, contributed to a favorable backdrop, despite persistent geopolitical risk.
•Against this backdrop, information technology gained about 47% and contributed most to the fund's performance for the fiscal year. Financials, which gained roughly 37%, also helped, as did consumer discretionary, which advanced roughly 39%. The communication services sector rose 19%, while industrials gained 25% and utilities advanced 42%. Other contributors included the health care (+35%), consumer staples (+19%), materials (+3%), energy (+3%) and real estate (+6%) sectors.
•Turning to individual stocks, the top contributor was Taiwan Semiconductor (+101%), from the semiconductors & semiconductor equipment group. Hon Hai Precision Industry (+129%), a stock in the technology hardware & equipment category, and Tencent Holdings (+42%), from the media & entertainment group, each also boosted the fund. In automobiles & components, Mahindra & Mahindra (+83%) helped. Lastly, in consumer discretionary distribution & retail, JD.com (+61%) also lifted the fund.
•Conversely, the biggest detractor was Samsung Electronics (-12%), from the technology hardware & equipment industry. In materials, Sasol (-56%) and Vale (-13%) each hurt the fund's performance. Another notable detractor was Gazprom (-100%), a stock in the energy sector. Lastly, in consumer discretionary distribution & retail, PDD returned -34% and also hurt.
How did the Fund perform over the life of Fund?
CUMULATIVE PERFORMANCE
February 26, 2019 through October 31, 2024.
Initial investment of $10,000.
Fidelity® Emerging Markets Multifactor ETF | $10,000 | $10,066 | $9,660 | $11,065 | $8,679 | $9,960 |
Fidelity Emerging Markets Multifactor Index℠ | $10,000 | $10,153 | $9,794 | $11,353 | $8,859 | $10,309 |
MSCI Emerging Markets Index | $10,000 | $9,992 | $10,819 | $12,656 | $8,730 | $9,677 |
| | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
AVERAGE ANNUAL TOTAL RETURNS:| | 1 Year | 5 Year | Life of Fund |
Fidelity® Emerging Markets Multifactor ETF - NAV A | 25.20% | 4.38% | 3.96% |
Fidelity® Emerging Markets Multifactor ETF - Market Price B | 25.57% | 4.57% | 4.23% |
Fidelity Emerging Markets Multifactor Index℠ A | 27.68% | 5.33% | 4.96% |
MSCI Emerging Markets Index A | 25.33% | 3.95% | 3.45% |
A From February 26, 2019
B From February 28, 2019, date initially listed on the Cboe BZX Exchange, Inc. exchange
Visit www.fidelity.com for more recent performance information. |
The Fund's past performance is not a good predictor of the Fund's future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. |
Key Fund Statistics(as of October 31, 2024)
KEY FACTS | | |
| Fund Size | $103,469,403 | |
| Number of Holdings | 205 | |
| Total Advisory Fee | $144,014 | |
| Portfolio Turnover | 65% | |
What did the Fund invest in?
(as of October 31, 2024)
MARKET SECTORS (% of Fund's net assets) | | |
| Information Technology | 20.4 | |
| Financials | 19.0 | |
| Consumer Discretionary | 18.3 | |
| Communication Services | 13.7 | |
| Energy | 9.2 | |
| Consumer Staples | 8.7 | |
| Real Estate | 5.2 | |
| Industrials | 3.5 | |
| Materials | 1.8 | |
| Utilities | 0.0 | |
| |
| Common Stocks | 99.8 |
| Preferred Stocks | 0.0 |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.2 |
ASSET ALLOCATION (% of Fund's net assets) |
|
|
| China | 26.9 |
| Taiwan | 20.3 |
| India | 15.4 |
| Korea (South) | 9.9 |
| Indonesia | 4.2 |
| Mexico | 3.9 |
| Turkey | 3.4 |
| Saudi Arabia | 2.7 |
| United Arab Emirates | 2.7 |
| Others | 10.6 |
GEOGRAPHIC DIVERSIFICATION (% of Fund's net assets) |
|
| |
|
TOP HOLDINGS(% of Fund's net assets) | | |
| Taiwan Semiconductor Manufacturing Co Ltd | 8.4 | |
| Tencent Holdings Ltd | 4.5 | |
| Samsung Electronics Co Ltd | 2.7 | |
| Emaar Properties PJSC | 2.0 | |
| Huaku Development Co Ltd | 1.6 | |
| Terrafina | 1.6 | |
| JD.com Inc A Shares | 1.5 | |
| PDD Holdings Inc Class A ADR | 1.4 | |
| Trip.com Group Ltd | 1.3 | |
| China Shenhua Energy Co Ltd H Shares | 1.1 | |
| | 26.1 | |
How has the Fund changed?
This is a summary of certain changes to the Fund since November 1, 2023. For more complete information, you may review the Fund's next prospectus, which we expect to be available by November 29, 2024 at fundresearch.fidelity.com/prospectus/sec or upon request at 1-800-FIDELITY or by sending an e-mail to fidfunddocuments@fidelity.com.
The fees associated with this class changed during the reporting year.The variations in class fees are primarily the result of the following changes: - Management fee
- Operating expenses
- Expense reductions
The fund's contractual management fee was reduced during the reporting period. | |
| Fidelity, the Fidelity Investments Logo and all other Fidelity trademarks or service marks used herein are trademarks or service marks of FMR LLC. Any third-party marks that are used herein are trademarks or service marks of their respective owners. © 2024 FMR LLC. All rights reserved. |
| | For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit fundresearch.fidelity.com/prospectus/sec 1.9914006.100 3354-TSRA-1224 |
| |
| | ANNUAL SHAREHOLDER REPORT | AS OF OCTOBER 31, 2024 | This report describes changes to the Fund that occurred during the reporting period. |
| | Fidelity® International High Dividend ETF Fidelity® International High Dividend ETF : FIDI Principal U.S. Listing Exchange :NYSEArca NYSE Arca, Inc. |
| | | |
This annual shareholder report contains information about Fidelity® International High Dividend ETF for the period November 1, 2023 to October 31, 2024. You can find additional information about the Fund at fundresearch.fidelity.com/prospectus/sec. You can also request this information by contacting us at 1-800-FIDELITY or by sending an e-mail to fidfunddocuments@fidelity.com.
What were your Fund costs for the last year?(based on hypothetical $10,000 investment)
FUND COST (PREVIOUS YEAR)
| | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment | |
| Fidelity® International High Dividend ETF | $ 21 | 0.19% | |
What affected the Fund's performance this period?
•International stocks achieved a strong gain for the 12 months ending October 31, 2024. Resilient global economic growth and a slowing in the pace of inflation in certain regions, as well as a shift to global monetary easing, contributed to a favorable backdrop, despite persistent geopolitical risk.
•Against this backdrop, Europe ex U.K. gained about 18% and contributed most to the fund's performance for the fiscal year, followed by Japan (+24%).
•By sector, financials gained 38% and contributed most, driven by the banks industry (+37%). Utilities, which gained 27%, also helped, as did communication services, which advanced about 23%. The industrials sector rose about 19%, while real estate gained roughly 8% and consumer discretionary advanced 12%. Other contributors included the energy (+4%), health care (+10%), consumer staples (+16%), information technology (+23%) and materials (+2%) sectors.
•Turning to individual stocks, the biggest contributor was Nintendo (+44%), from the media & entertainment group. Westpac Banking (+72%) and Canadian Imperial Bank of Commerce (+85%), within the banks industry, helped. In utilities, Enel gained 26% and lifted the fund. Lastly, in telecommunication services, Telefonica (+29%) boosted the fund.
•Conversely, the biggest detractor was IGO (-25%), from the materials sector. Within the same sector, Nippon Steel (-10%) and Yara International (-10%) hindered the fund. New World Development, within the real estate management & development group, returned roughly -23% and hurt the fund's performance. Lastly, Woodside Energy, within the energy sector, returned about -17% and detracted.
How did the Fund perform over the life of Fund?
CUMULATIVE PERFORMANCE
January 16, 2018 through October 31, 2024.
Initial investment of $10,000.
Fidelity® International High Dividend ETF | $10,000 | $8,456 | $9,035 | $6,777 | $9,812 | $8,259 | $9,215 |
Fidelity International High Dividend Index℠ | $10,000 | $8,488 | $9,107 | $6,857 | $9,975 | $8,445 | $9,467 |
MSCI World ex USA Index | $10,000 | $8,705 | $9,693 | $9,053 | $12,301 | $9,611 | $10,843 |
| | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
AVERAGE ANNUAL TOTAL RETURNS:| | 1 Year | 5 Year | Life of Fund |
Fidelity® International High Dividend ETF - NAV A | 21.22% | 4.33% | 1.64% |
Fidelity® International High Dividend ETF - Market Price B | 20.36% | 4.40% | 1.44% |
Fidelity International High Dividend Index℠ A | 21.62% | 4.80% | 2.10% |
MSCI World ex USA Index A | 24.13% | 6.79% | 4.47% |
A From January 16, 2018
B From January 18, 2018, date initially listed on the NYSE Arca, Inc. exchange
Visit www.fidelity.com for more recent performance information. |
The Fund's past performance is not a good predictor of the Fund's future performance. The graph and table do not reflect the deduction of taxes that a shareholder would pay on fund distributions or redemption of fund shares. |
Key Fund Statistics(as of October 31, 2024)
KEY FACTS | | |
| Fund Size | $98,714,955 | |
| Number of Holdings | 104 | |
| Total Advisory Fee | $172,761 | |
| Portfolio Turnover | 63% | |
What did the Fund invest in?
(as of October 31, 2024)
MARKET SECTORS (% of Fund's net assets) | | |
| Financials | 30.5 | |
| Materials | 13.4 | |
| Energy | 11.8 | |
| Utilities | 11.1 | |
| Communication Services | 10.7 | |
| Industrials | 9.9 | |
| Health Care | 4.1 | |
| Consumer Discretionary | 4.0 | |
| Information Technology | 2.2 | |
| Consumer Staples | 1.7 | |
| |
| Common Stocks | 99.4 |
| Short-Term Investments and Net Other Assets (Liabilities) | 0.6 |
ASSET ALLOCATION (% of Fund's net assets) |
|
|
| Canada | 16.8 |
| Japan | 15.6 |
| Australia | 10.3 |
| France | 9.5 |
| United Kingdom | 9.0 |
| Italy | 4.8 |
| Spain | 4.6 |
| Finland | 3.5 |
| Norway | 3.5 |
| Others | 22.4 |
GEOGRAPHIC DIVERSIFICATION (% of Fund's net assets) |
|
| |
|
TOP HOLDINGS(% of Fund's net assets) | | |
| Enel SpA | 3.3 | |
| Telefonica SA | 3.1 | |
| SoftBank Corp | 3.0 | |
| Engie SA | 3.0 | |
| Vodafone Group PLC | 2.9 | |
| Hong Kong & China Gas Co Ltd | 2.6 | |
| Enbridge Inc | 2.6 | |
| TotalEnergies SE | 2.5 | |
| HSBC Holdings PLC | 2.3 | |
| Emera Inc | 2.2 | |
| | 27.5 | |
How has the Fund changed?
This is a summary of certain changes to the Fund since November 1, 2023. For more complete information, you may review the Fund's next prospectus, which we expect to be available by November 29, 2024 at fundresearch.fidelity.com/prospectus/sec or upon request at 1-800-FIDELITY or by sending an e-mail to fidfunddocuments@fidelity.com.
The fees associated with this class changed during the reporting year.The variations in class fees are primarily the result of the following changes: - Management fee
- Operating expenses
The fund's contractual management fee was reduced during the reporting period. | |
| Fidelity, the Fidelity Investments Logo and all other Fidelity trademarks or service marks used herein are trademarks or service marks of FMR LLC. Any third-party marks that are used herein are trademarks or service marks of their respective owners. © 2024 FMR LLC. All rights reserved. |
| | For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit fundresearch.fidelity.com/prospectus/sec 1.9913997.100 3063-TSRA-1224 |
Item 2.
Code of Ethics
As of the end of the period, October 31, 2024, Fidelity Covington Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Donald F. Donahue is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Donahue is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity Emerging Markets Multifactor ETF, Fidelity International High Dividend ETF, Fidelity International Multifactor ETF and Fidelity International Value Factor ETF (the “Fund(s)”):
Services Billed by Deloitte Entities
October 31, 2024 FeesA
| | | | |
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Emerging Markets Multifactor ETF | $16,500 | $- | $4,600 | $400 |
Fidelity International High Dividend ETF | $16,500 | $- | $3,800 | $400 |
Fidelity International Multifactor ETF | $16,500 | $- | $4,100 | $400 |
Fidelity International Value Factor ETF | $16,500 | $- | $4,100 | $400 |
| | | | |
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Emerging Markets Multifactor ETF | $19,100 | $- | $3,800 | $400 |
Fidelity International High Dividend ETF | $19,100 | $- | $3,800 | $400 |
Fidelity International Multifactor ETF | $19,100 | $- | $3,800 | $400 |
Fidelity International Value Factor ETF | $19,100 | $- | $3,800 | $400 |
A Amounts may reflect rounding
The following table(s) present(s) fees billed by Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Fund(s) and that are rendered on behalf of Fidelity Management & Research Company LLC ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund(s) (“Fund Service Providers”):
Services Billed by Deloitte Entities
| | |
| October 31, 2024A | October 31, 2023A |
Audit-Related Fees | $125,000 | $75,000 |
Tax Fees | $- | $- |
All Other Fees | $2,929,500 | $- |
A Amounts may reflect rounding.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities for services rendered to the Fund(s), FMR (not including any sub-adviser whose role is primarily portfolio
management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Fund(s) are as follows:
| | |
Billed By | October 31, 2024A | October 31, 2023A |
Deloitte Entities | $3,367,200 | $5,823,900 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its(their) audit of the Fund(s), taking into account representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Fund(s) and its(their) related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund(s) Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee periodically.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Fund’s(s’) last two fiscal years relating to services provided to (i) the Fund(s) or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Fund(s).
The Registrant has not retained, for the preparation of the audit report on the financial statements included in the Form N-CSR, a registered public accounting firm that has a branch or office that is located in a foreign jurisdiction and that the Public Company Accounting Oversight Board (the “PCAOB”) has determined that the PCAOB is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction.
The Registrant is not a “foreign issuer,” as defined in 17 CFR 240.3b-4.
Item 5.
Audit Committee of Listed Registrants
The Audit Committee is a separately-designated standing audit committee in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. As of October 31, 2024, the members of the Audit Committee were Donald F. Donahue, Vijay C. Advani, Karen Peetz, and Susan Tomasky.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable.
Item 7.
Financial Statements and Financial Highlights for Open-End Management Investment Companies
Fidelity® Emerging Markets Multifactor ETF
Fidelity® International High Dividend ETF
Fidelity® International Multifactor ETF
Fidelity® International Value Factor ETF
Annual Report
October 31, 2024
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-FIDELITY to request a free copy of the proxy voting guidelines.
The funds or securities referred to herein are not sponsored, endorsed, or promoted by Fidelity Product Services LLC (FPS), and FPS bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the relationship between FPS and any related funds.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2024 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Funds. This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Funds nor Fidelity Distributors Corporation is a bank.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies (Annual Report)
Fidelity® Emerging Markets Multifactor ETF
Schedule of Investments October 31, 2024
Showing Percentage of Net Assets
| Common Stocks - 99.8% |
| | | Shares | Value ($) |
| Brazil - 2.1% | | | |
| Banco do Brasil SA | | 87,500 | 397,992 |
| BB Seguridade Participacoes SA | | 50,300 | 297,781 |
| Caixa Seguridade Participacoes | | 108,800 | 270,649 |
| Itausa SA | | 209,229 | 383,489 |
| Metalurgica Gerdau SA (PN) | | 64,800 | 114,964 |
| Vale SA | | 26,200 | 280,885 |
| Vibra Energia SA | | 109,100 | 420,474 |
TOTAL BRAZIL | | | 2,166,234 |
| Chile - 0.3% | | | |
| Banco de Chile | | 2,702,182 | 314,786 |
| China - 26.9% | | | |
| Agricultural Bank of China Ltd. (H Shares) | | 857,000 | 421,092 |
| Anta Sports Products Ltd. | | 82,000 | 874,910 |
| Autohome, Inc. ADR Class A | | 33,671 | 946,155 |
| Baidu, Inc. Class A (a) | | 65,450 | 750,944 |
| Bank of China Ltd. (H Shares) | | 1,337,000 | 634,587 |
| Bank of Communications Co. Ltd. (H Shares) | | 486,000 | 368,201 |
| Bosideng International Holdings Ltd. | | 1,192,000 | 668,491 |
| Brilliance China Automotive Holdings Ltd. | | 1,140,000 | 368,054 |
| China CITIC Bank Corp. Ltd. (H Shares) | | 371,000 | 231,446 |
| China Construction Bank Corp. (H Shares) | | 1,281,000 | 993,572 |
| China Railway Group Ltd. (H Shares) | | 712,000 | 355,341 |
| China Shenhua Energy Co. Ltd. (H Shares) | | 272,000 | 1,177,300 |
| China Tower Corp. Ltd. (H Shares) (b) | | 3,816,000 | 515,384 |
| Fuyao Glass Industries Group Co. Ltd. (H Shares) (b) | | 123,200 | 873,956 |
| Haier Smart Home Co. Ltd. | | 218,000 | 792,151 |
| Hengan International Group Co. Ltd. | | 222,000 | 656,771 |
| Hisense Home Appliances Group Co. Ltd. (H Shares) | | 190,000 | 601,204 |
| Industrial & Commercial Bank of China Ltd. (H Shares) | | 1,156,000 | 692,910 |
| Inner Mongolia Yitai Coal Co. Ltd. (B Shares) | | 505,237 | 1,170,634 |
| JD.com, Inc. Class A | | 77,950 | 1,559,120 |
| Jiangxi Copper Co. Ltd. (H Shares) | | 95,000 | 160,077 |
| Kingboard Chemical Holdings Ltd. | | 156,500 | 379,252 |
| Lenovo Group Ltd. | | 306,000 | 405,407 |
| NetEase, Inc. | | 44,100 | 702,251 |
| PDD Holdings, Inc. ADR (a) | | 12,422 | 1,497,969 |
| People's Insurance Co. of China Group Ltd. (H Shares) | | 555,000 | 280,555 |
| PetroChina Co. Ltd. (H Shares) | | 1,336,000 | 1,003,581 |
| PICC Property & Casualty Co. Ltd. (H Shares) | | 190,000 | 288,871 |
| Pop Mart International Group Ltd. (b) | | 121,200 | 1,099,069 |
| Tencent Holdings Ltd. | | 87,900 | 4,574,545 |
| Tongcheng Travel Holdings Ltd. | | 360,000 | 813,130 |
| Trip.com Group Ltd. (a) | | 21,050 | 1,356,510 |
| Vipshop Holdings Ltd. ADR | | 32,981 | 476,246 |
| Yangzijiang Shipbuilding Holdings Ltd. | | 81,000 | 157,971 |
TOTAL CHINA | | | 27,847,657 |
| Egypt - 0.4% | | | |
| Commercial International Bank SAE | | 243,085 | 397,279 |
| Greece - 1.3% | | | |
| Jumbo SA | | 24,766 | 658,737 |
| OPAP SA | | 38,587 | 656,866 |
TOTAL GREECE | | | 1,315,603 |
| Hong Kong - 0.9% | | | |
| WH Group Ltd. (b) | | 1,141,000 | 889,388 |
| Hungary - 0.8% | | | |
| MOL Hungarian Oil and Gas PLC Series A (For. Reg.) | | 120,442 | 833,930 |
| India - 15.4% | | | |
| Angel One Ltd. | | 12,973 | 470,807 |
| Asian Paints Ltd. | | 6,012 | 209,893 |
| Bajaj Auto Ltd. | | 6,575 | 769,135 |
| Bank of Baroda | | 121,797 | 363,510 |
| Bharat Electronics Ltd. | | 72,153 | 244,468 |
| Canara Bank Ltd. | | 266,716 | 325,599 |
| Coal India Ltd. | | 167,789 | 902,038 |
| Computer Age Management Services Private Ltd. | | 3,808 | 201,241 |
| Eicher Motors Ltd. | | 12,989 | 756,088 |
| Federal Bank Ltd. | | 157,971 | 383,081 |
| HCL Technologies Ltd. | | 16,060 | 337,306 |
| HDFC Asset Management Co. Ltd. (b) | | 7,724 | 394,939 |
| Hero Motocorp Ltd. | | 12,029 | 713,783 |
| Hindustan Aeronautics Ltd. | | 4,426 | 223,531 |
| Hindustan Unilever Ltd. | | 30,698 | 923,007 |
| Hitachi Energy India Ltd. | | 1,322 | 217,262 |
| ICICI Lombard General Insurance Co. Ltd. (b) | | 16,414 | 374,275 |
| Indian Railway Catering & Tourism Corp. Ltd. | | 17,748 | 173,351 |
| Infosys Ltd. | | 42,604 | 890,346 |
| ITC Ltd. | | 143,888 | 836,432 |
| Jio Financial Services Ltd. (a) | | 119,209 | 456,924 |
| Kalyan Jewellers India Ltd. | | 101,211 | 790,983 |
| Motherson Sumi Wiring India Ltd. | | 781,766 | 583,864 |
| Multi Commodity Exchange of India Ltd. | | 6,625 | 513,376 |
| Nestle India Ltd. | | 25,532 | 687,124 |
| NMDC Ltd. | | 57,566 | 151,894 |
| Oil India Ltd. | | 131,309 | 736,684 |
| Oracle Financial Services Software Ltd. | | 949 | 122,865 |
| Power Finance Corp. Ltd. | | 66,692 | 360,838 |
| REC Ltd. | | 57,672 | 358,434 |
| Solar Industries India Ltd. | | 1,293 | 157,307 |
| State Bank of India | | 51,215 | 499,565 |
| Tata Consultancy Services Ltd. | | 12,644 | 596,733 |
| Wipro Ltd. | | 29,926 | 196,384 |
TOTAL INDIA | | | 15,923,067 |
| Indonesia - 4.2% | | | |
| PT Adaro Energy Indonesia Tbk | | 4,633,100 | 1,068,609 |
| PT Astra International Tbk | | 560,400 | 182,099 |
| PT Bank Central Asia Tbk | | 970,000 | 633,482 |
| PT Indah Kiat Pulp & Paper Tbk | | 58,200 | 29,944 |
| PT Indofood Sukses Makmur Tbk | | 1,942,200 | 940,473 |
| PT Telkom Indonesia Persero Tbk | | 2,841,800 | 510,601 |
| PT United Tractors Tbk | | 585,300 | 1,023,669 |
TOTAL INDONESIA | | | 4,388,877 |
| Korea (South) - 9.9% | | | |
| Cosmo AM&T Co. Ltd. (a) | | 260 | 19,500 |
| DB HiTek Co. Ltd. | | 406 | 11,474 |
| Db Insurance Co. Ltd. | | 4,972 | 393,797 |
| Doosan Bobcat, Inc. | | 8,604 | 233,804 |
| GS Holdings Corp. | | 7,244 | 216,270 |
| Hankook Tire Co. Ltd. | | 15,440 | 394,951 |
| Hanmi Semiconductor Co. Ltd. | | 582 | 38,800 |
| Hyundai Marine & Fire Insurance Co. Ltd. | | 14,064 | 309,306 |
| Hyundai Mobis | | 3,702 | 669,311 |
| Hyundai Steel Co. | | 4,928 | 90,525 |
| Isupetasys Co. Ltd. | | 512 | 13,505 |
| Kia Corp. | | 8,934 | 594,953 |
| KRAFTON, Inc. (a) | | 2,287 | 548,549 |
| KT&G Corp. | | 11,797 | 937,776 |
| Kumho Petro Chemical Co. Ltd. | | 992 | 102,507 |
| Leeno Industrial, Inc. | | 106 | 14,026 |
| LG Corp. | | 4,611 | 252,937 |
| LG Display Co. Ltd. (a) | | 3,414 | 26,322 |
| LG Innotek Co. Ltd. | | 148 | 19,047 |
| LG Uplus Corp. | | 56,480 | 409,685 |
| Orion Corp./Republic of Korea | | 11,160 | 807,078 |
| Samsung Electro-Mechanics Co. Ltd. | | 620 | 53,194 |
| Samsung Electronics Co. Ltd. | | 62,400 | 2,676,870 |
| Samsung SDI Co. Ltd. | | 572 | 135,539 |
| Samsung SDS Co. Ltd. | | 425 | 44,071 |
| SK Hynix, Inc. | | 5,864 | 791,640 |
| Woori Financial Group, Inc. | | 37,664 | 421,127 |
TOTAL KOREA (SOUTH) | | | 10,226,564 |
| Malaysia - 1.5% | | | |
| Bursa Malaysia Bhd | | 122,600 | 252,815 |
| CIMB Group Holdings Bhd | | 229,300 | 418,385 |
| Malayan Banking Bhd | | 186,600 | 447,431 |
| Petronas Chemicals Group Bhd | | 30,700 | 37,998 |
| Telekom Malaysia Bhd | | 285,800 | 423,577 |
TOTAL MALAYSIA | | | 1,580,206 |
| Mexico - 3.9% | | | |
| Arca Continental S.A.B. de CV | | 86,800 | 742,150 |
| El Puerto de Liverpool S.A.B. Dcv Series C | | 58,200 | 306,744 |
| Grupo Aeroportuario del Sureste S.A.B. de CV Series B | | 5,605 | 149,712 |
| Grupo Aeroportuario Norte S.A.B. de CV | | 17,200 | 143,886 |
| Kimberly-Clark de Mexico SA de CV Series A | | 475,100 | 681,255 |
| Promotora y Operadora de Infraestructura S.A.B. de CV | | 15,630 | 136,150 |
| Qualitas Controladora S.A.B. de CV | | 30,900 | 215,896 |
| Terrafina | | 885,800 | 1,625,617 |
TOTAL MEXICO | | | 4,001,410 |
| Qatar - 0.1% | | | |
| Mesaieed Petrochemical Holding Co. | | 316,504 | 137,520 |
| Russia - 0.0% | | | |
| Gazprom OAO (a)(c) | | 14,450 | 0 |
| GMK Norilskiy Nickel PAO ADR (a)(c) | | 18,800 | 0 |
| Inter Rao Ues JSC (a)(c) | | 7,348,600 | 1 |
| Sberbank of Russia (a)(c) | | 38,410 | 0 |
| Surgutneftegas OJSC (a)(c) | | 56,600 | 0 |
| VTB Bank OJSC (a)(c) | | 18,380 | 0 |
TOTAL RUSSIA | | | 1 |
| Saudi Arabia - 2.7% | | | |
| Al Rajhi Bank | | 32,862 | 769,991 |
| Al Rajhi Co. for Co-operative Insurance | | 5,083 | 242,531 |
| Bupa Arabia for Cooperative Insurance Co. | | 4,723 | 253,272 |
| Elm Co. | | 1,270 | 345,795 |
| Sabic Agriculture-Nutrients Co. | | 5,331 | 161,533 |
| Saudi Aramco Base Oil Co. - Luberef | | 4,185 | 130,597 |
| Saudi Telecom Co. | | 82,197 | 922,492 |
TOTAL SAUDI ARABIA | | | 2,826,211 |
| South Africa - 1.9% | | | |
| Exxaro Resources Ltd. | | 86,717 | 812,481 |
| Momentum Group Ltd. | | 283,231 | 461,212 |
| Standard Bank Group Ltd. | | 46,921 | 641,077 |
TOTAL SOUTH AFRICA | | | 1,914,770 |
| Taiwan - 20.3% | | | |
| Accton Technology Corp. | | 11,000 | 189,513 |
| ASE Technology Holding Co. Ltd. | | 54,000 | 264,607 |
| ASMedia Technology, Inc. | | 2,000 | 101,748 |
| ASPEED Tech, Inc. | | 1,000 | 131,086 |
| ASUSTeK Computer, Inc. | | 13,000 | 233,302 |
| Catcher Technology Co. Ltd. | | 20,000 | 147,316 |
| Chicony Electronics Co. Ltd. | | 24,000 | 122,472 |
| Chunghwa Telecom Co. Ltd. | | 156,000 | 594,007 |
| Compal Electronics, Inc. | | 126,000 | 140,983 |
| Compeq Manufacturing Co. Ltd. | | 45,000 | 86,938 |
| Far Eastern International Bank | | 834,282 | 343,712 |
| Far Eastern New Century Corp. | | 306,000 | 354,326 |
| Far EasTone Telecommunications Co. Ltd. | | 168,000 | 466,667 |
| Getac Holdings Corp. | | 29,000 | 100,921 |
| Hon Hai Precision Industry Co. Ltd. (Foxconn) | | 143,000 | 943,961 |
| Huaku Development Co. Ltd. | | 450,000 | 1,657,303 |
| International Games Systems Co. Ltd. | | 21,000 | 678,371 |
| Jentech Precision Industrial Co. Ltd. | | 3,000 | 138,109 |
| King Yuan Electronics Co. Ltd. | | 35,000 | 137,094 |
| King's Town Bank Co. Ltd. | | 206,000 | 317,937 |
| Lotes Co. Ltd. | | 3,000 | 156,835 |
| MediaTek, Inc. | | 20,000 | 805,243 |
| Novatek Microelectronics Corp. | | 11,000 | 172,690 |
| Pegatron Corp. | | 47,000 | 145,225 |
| Pou Chen Corp. | | 548,000 | 646,517 |
| Powertech Technology, Inc. | | 24,000 | 94,757 |
| Primax Electronics Ltd. | | 34,000 | 85,955 |
| Radiant Opto-Electronics Corp. | | 20,000 | 132,022 |
| Realtek Semiconductor Corp. | | 10,000 | 149,345 |
| Simplo Technology Co. Ltd. | | 9,000 | 96,208 |
| Sinopac Financial Holdings Co. | | 586,775 | 421,218 |
| Synnex Technology International Corp. | | 50,000 | 110,643 |
| Taichung Commercial Bank Co. Ltd. | | 689,706 | 382,094 |
| Taiwan Cooperative Financial Holding Co. Ltd. | | 12,654 | 9,953 |
| Taiwan Fertilizer Co. Ltd. | | 104,000 | 185,343 |
| Taiwan Mobile Co. Ltd. | | 146,000 | 517,197 |
| Taiwan Semiconductor Manufacturing Co. Ltd. | | 266,000 | 8,551,179 |
| Topco Scientific Co. Ltd. | | 11,000 | 107,974 |
| Tripod Technology Corp. | | 18,000 | 108,427 |
| Wiwynn Corp. | | 2,000 | 118,914 |
| WPG Holding Co. Ltd. | | 49,000 | 113,477 |
| WT Microelectronics Co. Ltd. | | 31,000 | 105,946 |
| Yuanta Financial Holding Co. Ltd. | | 502,320 | 508,748 |
| Zhen Ding Technology Holding Ltd. | | 26,000 | 91,292 |
TOTAL TAIWAN | | | 20,967,575 |
| Thailand - 1.1% | | | |
| Advanced Information Service PCL NVDR | | 74,000 | 603,052 |
| Intouch Holdings PCL NVDR | | 182,900 | 579,947 |
TOTAL THAILAND | | | 1,182,999 |
| Turkey - 3.4% | | | |
| Akbank TAS | | 227,434 | 335,610 |
| Bim Birlesik Magazalar A/S JSC | | 61,176 | 832,266 |
| Haci Omer Sabanci Holding A/S | | 137,595 | 334,054 |
| Koc Holding A/S | | 34,051 | 167,821 |
| Turkcell Iletisim Hizmet A/S | | 199,721 | 493,620 |
| Turkiye Is Bankasi A/S Series C | | 891,072 | 305,597 |
| Turkiye Petrol Rafinerileri A/S | | 187,788 | 791,891 |
| Yapi ve Kredi Bankasi A/S | | 413,409 | 295,135 |
TOTAL TURKEY | | | 3,555,994 |
| United Arab Emirates - 2.7% | | | |
| Abu Dhabi Islamic Bank | | 126,447 | 433,769 |
| Emaar Properties PJSC | | 868,267 | 2,054,245 |
| Salik Co. PJSC | | 201,768 | 263,677 |
TOTAL UNITED ARAB EMIRATES | | | 2,751,691 |
| TOTAL COMMON STOCKS (Cost $98,316,066) | | | 103,221,762 |
| | | | |
| Nonconvertible Preferred Stocks - 0.0% |
| | | Shares | Value ($) |
| Russia - 0.0% | | | |
AK Transneft OAO (a)(c) (Cost $23,788) | | 1,200 | 0 |
| | | | |
| Money Market Funds - 0.2% |
| | | Shares | Value ($) |
Fidelity Cash Central Fund 4.87% (d) (Cost $288,455) | | 288,397 | 288,455 |
| | | | |
| TOTAL INVESTMENT IN SECURITIES - 100.0% (Cost $98,628,309) | 103,510,217 |
NET OTHER ASSETS (LIABILITIES) - 0.0% | (40,814) |
| NET ASSETS - 100.0% | 103,469,403 |
| | |
| Futures Contracts |
| | Number of contracts | Expiration Date | Notional Amount ($) | Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
| Purchased | | | | | |
| | | | | | |
| Equity Index Contracts | | | | | |
| ICE E-mini MSCI Emerging Markets Index Contracts (United States) | 4 | Dec 2024 | 225,300 | (4,263) | (4,263) |
| | | | | | |
| The notional amount of futures purchased as a percentage of Net Assets is 0.2% |
Legend
| (b) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $4,147,011 or 4.0% of net assets. |
| (d) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
| Fidelity Cash Central Fund 4.87% | - | 27,209,786 | 26,921,589 | 14,349 | 258 | - | 288,455 | 0.0% |
| Total | - | 27,209,786 | 26,921,589 | 14,349 | 258 | - | 288,455 | |
| | | | | | | | | |
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2024, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: |
| Description | Total ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
| Equities: | | | | |
Communication Services | 14,237,044 | 14,237,044 | - | - |
Consumer Discretionary | 18,943,216 | 18,943,216 | - | - |
Consumer Staples | 8,933,720 | 8,933,720 | - | - |
Energy | 9,520,817 | 9,520,817 | - | - |
Financials | 19,622,707 | 19,622,707 | - | - |
Industrials | 3,673,847 | 3,673,847 | - | - |
Information Technology | 21,002,258 | 21,002,258 | - | - |
Materials | 1,950,987 | 1,950,987 | - | - |
Real Estate | 5,337,165 | 5,337,165 | - | - |
Utilities | 1 | - | - | 1 |
|
| Money Market Funds | 288,455 | 288,455 | - | - |
| Total Investments in Securities: | 103,510,217 | 103,510,216 | - | 1 |
Derivative Instruments: Liabilities | | | | |
Futures Contracts | (4,263) | (4,263) | - | - |
| Total Liabilities | (4,263) | (4,263) | - | - |
| Total Derivative Instruments: | (4,263) | (4,263) | - | - |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2024. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value |
| Asset ($) | Liability ($) |
| Equity Risk | | |
Futures Contracts (a) | 0 | (4,263) |
| Total Equity Risk | 0 | (4,263) |
| Total Value of Derivatives | 0 | (4,263) |
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
Fidelity® Emerging Markets Multifactor ETF
Financial Statements
| Statement of Assets and Liabilities |
As of October 31, 2024 |
| Assets | | | | |
| Investment in securities, at value - See accompanying schedule: | | | | |
Unaffiliated issuers (cost $98,339,854) | $ | 103,221,762 | | |
Fidelity Central Funds (cost $288,455) | | 288,455 | | |
| | | | | |
| | | | | |
| Total Investment in Securities (cost $98,628,309) | | | $ | 103,510,217 |
| Segregated cash with brokers for derivative instruments | | | | 12,714 |
| Cash | | | | 27 |
| Foreign currency held at value (cost $126,888) | | | | 114,378 |
| Receivable for investments sold | | | | 8 |
| Dividends receivable | | | | 50,058 |
| Distributions receivable from Fidelity Central Funds | | | | 2,492 |
| Other receivables | | | | 14 |
Total assets | | | | 103,689,908 |
| Liabilities | | | | |
| Accrued management fee | $ | 21,861 | | |
| Payable for daily variation margin on futures contracts | | 1,040 | | |
| Deferred taxes | | 193,896 | | |
| Other payables and accrued expenses | | 3,708 | | |
| Total liabilities | | | | 220,505 |
| Net Assets | | | $ | 103,469,403 |
| Net Assets consist of: | | | | |
| Paid in capital | | | $ | 101,370,415 |
| Total accumulated earnings (loss) | | | | 2,098,988 |
| Net Assets | | | $ | 103,469,403 |
Net Asset Value, offering price and redemption price per share ($103,469,403 ÷ 4,000,000 shares) | | | $ | 25.87 |
| Statement of Operations |
| Year ended October 31, 2024 |
| Investment Income | | | | |
| Dividends | | | $ | 2,658,153 |
| Income from Fidelity Central Funds | | | | 14,349 |
| Income before foreign taxes withheld | | | $ | 2,672,502 |
| Less foreign taxes withheld | | | | (312,418) |
| Total income | | | | 2,360,084 |
| Expenses | | | | |
| Management fee | $ | 144,014 | | |
| Independent trustees' fees and expenses | | 213 | | |
| Interest | | 2,907 | | |
| Proxy fee | | 16,899 | | |
| Total expenses before reductions | | 164,033 | | |
| Expense reductions | | (9,908) | | |
| Total expenses after reductions | | | | 154,125 |
| Net Investment income (loss) | | | | 2,205,959 |
| Realized and Unrealized Gain (Loss) | | | | |
| Net realized gain (loss) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers (net of foreign taxes of $456,692) | | 1,002,838 | | |
| Fidelity Central Funds | | 258 | | |
| Foreign currency transactions | | (70,602) | | |
| Futures contracts | | 23,566 | | |
| Total net realized gain (loss) | | | | 956,060 |
| Change in net unrealized appreciation (depreciation) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers (net of increase in deferred foreign taxes of $102,305) | | 5,459,984 | | |
| Assets and liabilities in foreign currencies | | (3,457) | | |
| Futures contracts | | (3,501) | | |
| Total change in net unrealized appreciation (depreciation) | | | | 5,453,026 |
| Net gain (loss) | | | | 6,409,086 |
| Net increase (decrease) in net assets resulting from operations | | | $ | 8,615,045 |
| Statement of Changes in Net Assets |
| |
| | Year ended October 31, 2024 | | Year ended October 31, 2023 |
| Increase (Decrease) in Net Assets | | | | |
| Operations | | | | |
| Net investment income (loss) | $ | 2,205,959 | $ | 1,033,942 |
| Net realized gain (loss) | | 956,060 | | (1,236,537) |
| Change in net unrealized appreciation (depreciation) | | 5,453,026 | | 3,102,891 |
| Net increase (decrease) in net assets resulting from operations | | 8,615,045 | | 2,900,296 |
| Distributions to shareholders | | (2,073,600) | | (1,198,769) |
| Distributions to shareholders from tax return of capital | | - | | (11,231) |
| | | | | |
| Total Distributions | | (2,073,600) | | (1,210,000) |
| Share transactions | | | | |
| Proceeds from sales of shares | | 71,285,228 | | 4,445,155 |
| | | | | |
Net increase (decrease) in net assets resulting from share transactions | | 71,285,228 | | 4,445,155 |
| Total increase (decrease) in net assets | | 77,826,673 | | 6,135,451 |
| | | | | |
| Net Assets | | | | |
| Beginning of period | | 25,642,730 | | 19,507,279 |
| End of period | $ | 103,469,403 | $ | 25,642,730 |
| | | | | |
| Other Information | | | | |
| Shares | | | | |
| Sold | | 2,800,000 | | 200,000 |
| Net increase (decrease) | | 2,800,000 | | 200,000 |
| | | | | |
Financial Highlights
Fidelity® Emerging Markets Multifactor ETF |
| |
| Years ended October 31, | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 21.37 | $ | 19.51 | $ | 25.88 | $ | 23.12 | $ | 24.68 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .95 | | .95 | | .89 | | .72 | | .55 |
| Net realized and unrealized gain (loss) | | 4.40 | | 1.96 | | (6.37) | | 2.67 | | (1.57) |
| Total from investment operations | | 5.35 | | 2.91 | | (5.48) | | 3.39 | | (1.02) |
| Distributions from net investment income | | (.85) | | (1.04) | | (.86) | | (.63) | | (.54) |
| Distributions from tax return of capital | | - | | (.01) | | (.03) | | - | | - |
| Total distributions | | (.85) | | (1.05) | | (.89) | | (.63) | | (.54) |
| Net asset value, end of period | $ | 25.87 | $ | 21.37 | $ | 19.51 | $ | 25.88 | $ | 23.12 |
Total Return C,D | | | | 14.76% | | (21.56)% | | 14.55% | | (4.03)% |
Ratios to Average Net Assets B,E,F | | | | | | | | | | |
| Expenses before reductions | | .28% | | .45% | | .45% | | .45% | | .45% |
| Expenses net of fee waivers, if any | | | | .45% | | .45% | | .45% | | .45% |
| Expenses net of all reductions | | .26% | | .45% | | .45% | | .45% | | .45% |
| Net investment income (loss) | | 3.79% | | 4.29% | | 3.84% | | 2.64% | | 2.39% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 103,469 | $ | 25,643 | $ | 19,507 | $ | 20,703 | $ | 9,249 |
Portfolio turnover rate G | | | | 82% H | | 91% H | | 65% H | | 66% |
ACalculated based on average shares outstanding during the period.
BNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
DBased on net asset value.
EFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
FExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
GAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
HPortfolio turnover rate excludes securities received or delivered in-kind.
Fidelity® International High Dividend ETF
Schedule of Investments October 31, 2024
Showing Percentage of Net Assets
| Common Stocks - 99.4% |
| | | Shares | Value ($) |
| Australia - 10.3% | | | |
| ANZ Group Holdings Ltd. | | 78,235 | 1,596,248 |
| BHP Group Ltd. | | 64,908 | 1,812,829 |
| Brambles Ltd. | | 17,110 | 205,761 |
| Glencore PLC | | 403,433 | 2,107,371 |
| IGO Ltd. | | 257,069 | 883,996 |
| Sonic Healthcare Ltd. | | 13,705 | 241,745 |
| Wesfarmers Ltd. | | 5,730 | 252,512 |
| Westpac Banking Corp. | | 89,137 | 1,875,318 |
| Woodside Energy Group Ltd. | | 78,718 | 1,226,104 |
TOTAL AUSTRALIA | | | 10,201,884 |
| Austria - 1.8% | | | |
| OMV AG | | 41,938 | 1,734,693 |
| Brazil - 1.5% | | | |
| Yara International ASA | | 48,194 | 1,445,331 |
| Canada - 16.8% | | | |
| Bank of Nova Scotia | | 22,248 | 1,144,201 |
| BCE, Inc. | | 53,300 | 1,716,444 |
| Canadian Imperial Bank of Commerce | | 21,442 | 1,339,942 |
| Canadian National Railway Co. | | 4,432 | 478,031 |
| Canadian Tire Ltd. Class A (non-vtg.) | | 1,398 | 148,600 |
| Emera, Inc. | | 56,770 | 2,142,187 |
| Enbridge, Inc. | | 61,668 | 2,488,044 |
| Nutrien Ltd. | | 35,621 | 1,696,530 |
| Royal Bank of Canada | | 14,934 | 1,804,036 |
| The Toronto-Dominion Bank | | 21,945 | 1,211,741 |
| Thomson Reuters Corp. | | 2,649 | 433,110 |
| Tourmaline Oil Corp. | | 43,728 | 2,013,631 |
TOTAL CANADA | | | 16,616,497 |
| China - 0.2% | | | |
| Wilmar International Ltd. | | 67,000 | 162,068 |
| Denmark - 1.2% | | | |
| A.P. Moller - Maersk A/S Series B | | 246 | 386,728 |
| Novo Nordisk A/S Series B | | 7,309 | 811,869 |
| Svitzer A/S | | 490 | 16,990 |
TOTAL DENMARK | | | 1,215,587 |
| Finland - 3.5% | | | |
| Kesko Oyj | | 6,297 | 134,437 |
| Kone OYJ (B Shares) | | 9,284 | 506,579 |
| Nokia Corp. | | 37,171 | 174,534 |
| Nordea Bank Abp | | 113,002 | 1,316,942 |
| Sampo Oyj (A Shares) | | 29,991 | 1,325,181 |
TOTAL FINLAND | | | 3,457,673 |
| France - 9.5% | | | |
| BNP Paribas SA | | 21,574 | 1,469,719 |
| Bouygues SA | | 12,162 | 388,584 |
| Capgemini SA | | 693 | 119,775 |
| Compagnie Generale des Etablissements Michelin SCA Series B | | 8,029 | 270,653 |
| Engie SA | | 171,367 | 2,867,877 |
| EssilorLuxottica SA | | 990 | 231,511 |
| LVMH Moet Hennessy Louis Vuitton SE | | 801 | 530,286 |
| Rexel SA | | 16,554 | 452,531 |
| TotalEnergies SE | | 39,743 | 2,476,637 |
| VINCI SA | | 4,949 | 551,795 |
TOTAL FRANCE | | | 9,359,368 |
| Germany - 3.4% | | | |
| BASF AG | | 37,850 | 1,834,546 |
| Bayer AG | | 4,643 | 124,983 |
| Bayerische Motoren Werke AG (BMW) | | 2,783 | 218,505 |
| Deutsche Post AG ADR | | 17,721 | 710,489 |
| Infineon Technologies AG | | 4,720 | 148,732 |
| Mercedes-Benz Group AG (Germany) | | 4,840 | 292,678 |
TOTAL GERMANY | | | 3,329,933 |
| Hong Kong - 2.9% | | | |
| ASMPT Ltd. | | 30,200 | 329,604 |
| Hong Kong & China Gas Co. Ltd. | | 3,240,000 | 2,513,017 |
TOTAL HONG KONG | | | 2,842,621 |
| Italy - 4.8% | | | |
| Enel SpA | | 424,038 | 3,208,686 |
| Mediobanca SpA | | 92,969 | 1,531,135 |
TOTAL ITALY | | | 4,739,821 |
| Japan - 15.6% | | | |
| Astellas Pharma, Inc. | | 27,200 | 320,614 |
| Canon, Inc. | | 9,000 | 295,657 |
| Isuzu Motors Ltd. | | 21,700 | 284,419 |
| Japan Tobacco, Inc. | | 10,900 | 306,338 |
| Kawasaki Kisen Kaisha Ltd. | | 34,900 | 486,985 |
| Mitsubishi Corp. | | 43,500 | 809,744 |
| Mitsui & Co. Ltd. | | 34,900 | 724,463 |
| Mitsui OSK Lines Ltd. | | 15,600 | 534,901 |
| Mizuho Financial Group, Inc. | | 68,800 | 1,450,751 |
| Nippon Steel Corp. | | 83,700 | 1,686,363 |
| Nippon Yusen KK | | 16,600 | 559,926 |
| Niterra Co. Ltd. | | 10,900 | 314,138 |
| Sekisui House Ltd. | | 14,000 | 341,533 |
| SoftBank Corp. | | 2,323,500 | 2,940,888 |
| Sumco Corp. | | 14,400 | 141,140 |
| Sumitomo Mitsui Financial Group, Inc. | | 79,100 | 1,699,618 |
| Sumitomo Mitsui Trust Holdings, Inc. | | 54,400 | 1,206,389 |
| Takeda Pharmaceutical Co. Ltd. | | 12,500 | 349,910 |
| Tokyo Electron Ltd. | | 1,700 | 261,152 |
| Toyota Motor Corp. | | 39,935 | 703,270 |
TOTAL JAPAN | | | 15,418,199 |
| Netherlands - 2.0% | | | |
| ABN AMRO Bank NV GDR (Bearer) (a) | | 83,275 | 1,373,290 |
| ASML Holding NV (Netherlands) | | 662 | 446,457 |
| Koninklijke Ahold Delhaize NV | | 5,247 | 172,658 |
TOTAL NETHERLANDS | | | 1,992,405 |
| Norway - 3.5% | | | |
| Equinor ASA | | 68,713 | 1,644,878 |
| Mowi ASA | | 6,983 | 119,682 |
| Norsk Hydro ASA | | 275,619 | 1,691,635 |
TOTAL NORWAY | | | 3,456,195 |
| Singapore - 2.0% | | | |
| Oversea-Chinese Banking Corp. Ltd. | | 174,600 | 2,004,818 |
| Spain - 4.6% | | | |
| Banco Bilbao Vizcaya Argentaria SA | | 153,430 | 1,524,127 |
| Telefonica SA | | 651,612 | 3,051,821 |
TOTAL SPAIN | | | 4,575,948 |
| Sweden - 2.3% | | | |
| Svenska Handelsbanken AB (A Shares) | | 116,535 | 1,206,731 |
| Telefonaktiebolaget LM Ericsson (B Shares) | | 23,937 | 199,056 |
| Volvo AB (B Shares) | | 32,559 | 841,966 |
TOTAL SWEDEN | | | 2,247,753 |
| Switzerland - 2.8% | | | |
| Kuehne & Nagel International AG | | 1,623 | 404,671 |
| Novartis AG | | 5,003 | 542,710 |
| Zurich Insurance Group Ltd. | | 3,049 | 1,801,121 |
TOTAL SWITZERLAND | | | 2,748,502 |
| United Kingdom - 9.0% | | | |
| AstraZeneca PLC (United Kingdom) | | 3,777 | 536,188 |
| BAE Systems PLC | | 39,934 | 641,764 |
| British American Tobacco PLC (United Kingdom) | | 8,937 | 309,652 |
| CK Hutchison Holdings Ltd. | | 48,000 | 252,521 |
| DCC PLC (United Kingdom) | | 6,469 | 407,859 |
| HSBC Holdings PLC (United Kingdom) | | 240,534 | 2,200,879 |
| Imperial Brands PLC | | 9,040 | 271,613 |
| Schroders PLC | | 219,159 | 969,260 |
| Taylor Wimpey PLC | | 230,288 | 433,150 |
| Vodafone Group PLC | | 3,062,104 | 2,835,279 |
TOTAL UNITED KINGDOM | | | 8,858,165 |
| United States of America - 1.7% | | | |
| GSK PLC | | 12,374 | 221,528 |
| Nestle SA (Reg. S) | | 3,979 | 375,398 |
| Roche Holding AG (participation certificate) | | 1,791 | 554,885 |
| Sanofi SA | | 3,104 | 327,247 |
| Stellantis NV (Italy) | | 14,263 | 195,044 |
TOTAL UNITED STATES OF AMERICA | | | 1,674,102 |
| TOTAL COMMON STOCKS (Cost $98,038,321) | | | 98,081,563 |
| | | | |
| Government Obligations - 0.0% |
| | | Principal Amount (b) | Value ($) |
| United States of America - 0.0% | | | |
U.S. Treasury Bills, yield at date of purchase 5.08% 11/21/24 (c) (Cost $20,941) | | 21,000 | 20,946 |
| | | | |
| TOTAL INVESTMENT IN SECURITIES - 99.4% (Cost $98,059,262) | 98,102,509 |
NET OTHER ASSETS (LIABILITIES) - 0.6% | 612,446 |
| NET ASSETS - 100.0% | 98,714,955 |
| | |
| Futures Contracts |
| | Number of contracts | Expiration Date | Notional Amount ($) | Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
| Purchased | | | | | |
| | | | | | |
| Equity Index Contracts | | | | | |
| ICE MSCI EAFE Index Contracts (United States) | 5 | Dec 2024 | 587,550 | (22,912) | (22,912) |
| | | | | | |
| The notional amount of futures purchased as a percentage of Net Assets is 0.6% |
Legend
| (a) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,373,290 or 1.4% of net assets. |
| (b) | Amount is stated in United States dollars unless otherwise noted. |
| (c) | Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $20,946. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
| Fidelity Cash Central Fund 4.87% | 30,635 | 9,186,878 | 9,217,533 | 6,142 | 20 | - | - | 0.0% |
| Fidelity Securities Lending Cash Central Fund 4.87% | 2,024,860 | 4,959,705 | 6,984,565 | 12,175 | - | - | - | 0.0% |
| Total | 2,055,495 | 14,146,583 | 16,202,098 | 18,317 | 20 | - | - | |
| | | | | | | | | |
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2024, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: |
| Description | Total ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
| Equities: | | | | |
Communication Services | 10,544,432 | 10,544,432 | - | - |
Consumer Discretionary | 3,984,788 | 3,984,788 | - | - |
Consumer Staples | 1,851,846 | 1,851,846 | - | - |
Energy | 11,583,987 | 11,583,987 | - | - |
Financials | 30,051,447 | 30,051,447 | - | - |
Health Care | 4,263,190 | 4,263,190 | - | - |
Industrials | 9,795,398 | 9,795,398 | - | - |
Information Technology | 2,116,107 | 2,116,107 | - | - |
Materials | 13,158,601 | 13,158,601 | - | - |
Utilities | 10,731,767 | 10,731,767 | - | - |
|
| Government Obligations | 20,946 | - | 20,946 | - |
| Total Investments in Securities: | 98,102,509 | 98,081,563 | 20,946 | - |
Derivative Instruments: Liabilities | | | | |
Futures Contracts | (22,912) | (22,912) | - | - |
| Total Liabilities | (22,912) | (22,912) | - | - |
| Total Derivative Instruments: | (22,912) | (22,912) | - | - |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2024. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value |
| Asset ($) | Liability ($) |
| Equity Risk | | |
Futures Contracts (a) | 0 | (22,912) |
| Total Equity Risk | 0 | (22,912) |
| Total Value of Derivatives | 0 | (22,912) |
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
Fidelity® International High Dividend ETF
Financial Statements
| Statement of Assets and Liabilities |
As of October 31, 2024 |
| Assets | | | | |
Investment in securities, at value - See accompanying schedule Unaffiliated issuers (cost $98,059,262): | | | $ | 98,102,509 |
| Segregated cash with brokers for derivative instruments | | | | 11,613 |
| Cash | | | | 31,553 |
| Foreign currency held at value (cost $9,291) | | | | 9,254 |
| Dividends receivable | | | | 303,858 |
| Reclaims receivable | | | | 274,424 |
| Distributions receivable from Fidelity Central Funds | | | | 105 |
Total assets | | | | 98,733,316 |
| Liabilities | | | | |
| Accrued management fee | $ | 15,111 | | |
| Payable for daily variation margin on futures contracts | | 3,250 | | |
| Total liabilities | | | | 18,361 |
| Net Assets | | | $ | 98,714,955 |
| Net Assets consist of: | | | | |
| Paid in capital | | | $ | 110,868,497 |
| Total accumulated earnings (loss) | | | | (12,153,542) |
| Net Assets | | | $ | 98,714,955 |
Net Asset Value, offering price and redemption price per share ($98,714,955 ÷ 4,800,000 shares) | | | $ | 20.57 |
| Statement of Operations |
| Year ended October 31, 2024 |
| Investment Income | | | | |
| Dividends | | | $ | 5,643,090 |
| Income from Fidelity Central Funds (including $12,175 from security lending) | | | | 18,317 |
| Income before foreign taxes withheld | | | $ | 5,661,407 |
| Less foreign taxes withheld | | | | (526,315) |
| Total income | | | | 5,135,092 |
| Expenses | | | | |
| Management fee | $ | 172,761 | | |
| Independent trustees' fees and expenses | | 426 | | |
| Proxy fee | | 10,095 | | |
| Total expenses before reductions | | 183,282 | | |
| Expense reductions | | (259) | | |
| Total expenses after reductions | | | | 183,023 |
| Net Investment income (loss) | | | | 4,952,069 |
| Realized and Unrealized Gain (Loss) | | | | |
| Net realized gain (loss) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | (2,921,546) | | |
| Redemptions in-kind | | 2,336,891 | | |
| Fidelity Central Funds | | 20 | | |
| Foreign currency transactions | | 36,686 | | |
| Futures contracts | | 61,664 | | |
| Total net realized gain (loss) | | | | (486,285) |
| Change in net unrealized appreciation (depreciation) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | 12,968,417 | | |
| Assets and liabilities in foreign currencies | | (48,914) | | |
| Futures contracts | | 8,788 | | |
| Total change in net unrealized appreciation (depreciation) | | | | 12,928,291 |
| Net gain (loss) | | | | 12,442,006 |
| Net increase (decrease) in net assets resulting from operations | | | $ | 17,394,075 |
| Statement of Changes in Net Assets |
| |
| | Year ended October 31, 2024 | | Year ended October 31, 2023 |
| Increase (Decrease) in Net Assets | | | | |
| Operations | | | | |
| Net investment income (loss) | $ | 4,952,069 | $ | 4,080,155 |
| Net realized gain (loss) | | (486,285) | | (1,882,311) |
| Change in net unrealized appreciation (depreciation) | | 12,928,291 | | 7,259,993 |
| Net increase (decrease) in net assets resulting from operations | | 17,394,075 | | 9,457,837 |
| Distributions to shareholders | | (5,072,600) | | (4,144,700) |
| | | | | |
| Share transactions | | | | |
| Proceeds from sales of shares | | 14,094,799 | | - |
| Cost of shares redeemed | | (8,214,399) | | (5,529,770) |
| | | | | |
Net increase (decrease) in net assets resulting from share transactions | | 5,880,400 | | (5,529,770) |
| Total increase (decrease) in net assets | | 18,201,875 | | (216,633) |
| | | | | |
| Net Assets | | | | |
| Beginning of period | | 80,513,080 | | 80,729,713 |
| End of period | $ | 98,714,955 | $ | 80,513,080 |
| | | | | |
| Other Information | | | | |
| Shares | | | | |
| Sold | | 700,000 | | - |
| Redeemed | | (400,000) | | (300,000) |
| Net increase (decrease) | | 300,000 | | (300,000) |
| | | | | |
Financial Highlights
Fidelity® International High Dividend ETF |
| |
| Years ended October 31, | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 17.89 | $ | 16.82 | $ | 21.08 | $ | 15.10 | $ | 20.96 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | 1.06 | | .89 | | .97 | | .77 | | .60 |
| Net realized and unrealized gain (loss) | | 2.71 | | 1.08 | | (4.22) | | 5.95 | | (5.81) |
| Total from investment operations | | 3.77 | | 1.97 | | (3.25) | | 6.72 | | (5.21) |
| Distributions from net investment income | | (1.09) | | (.90) | | (1.01) | | (.74) | | (.65) |
| Total distributions | | (1.09) | | (.90) | | (1.01) | | (.74) | | (.65) |
| Net asset value, end of period | $ | 20.57 | $ | 17.89 | $ | 16.82 | $ | 21.08 | $ | 15.10 |
Total Return C,D | | | | 11.57% | | (15.83)% | | 44.78% | | (24.98)% |
Ratios to Average Net Assets B,E,F | | | | | | | | | | |
| Expenses before reductions | | .19% | | .39% | | .39% | | .39% | | .39% |
| Expenses net of fee waivers, if any | | | | .39% | | .39% | | .39% | | .39% |
| Expenses net of all reductions | | .19% | | .39% | | .39% | | .39% | | .39% |
| Net investment income (loss) | | 5.16% | | 4.68% | | 4.96% | | 3.82% | | 3.38% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 98,715 | $ | 80,513 | $ | 80,730 | $ | 82,197 | $ | 45,290 |
Portfolio turnover rate G | | | | 67% H | | 71% H | | 67% H | | 82% H |
ACalculated based on average shares outstanding during the period.
BNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
CBased on net asset value.
DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
EFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
FExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
GAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
HPortfolio turnover rate excludes securities received or delivered in-kind.
Fidelity® International Multifactor ETF
Schedule of Investments October 31, 2024
Showing Percentage of Net Assets
| Common Stocks - 99.2% |
| | | Shares | Value ($) |
| Australia - 4.8% | | | |
| ANZ Group Holdings Ltd. | | 19,265 | 393,069 |
| BHP Group Ltd. | | 11,225 | 313,505 |
| Brambles Ltd. | | 19,275 | 231,797 |
| Commonwealth Bank of Australia | | 7,756 | 725,196 |
| EBOS Group Ltd. | | 23,116 | 502,148 |
| Fortescue Ltd. | | 6,836 | 85,835 |
| Insurance Australia Group Ltd. | | 42,377 | 208,177 |
| JB Hi-Fi Ltd. | | 2,088 | 112,188 |
| Medibank Private Ltd. | | 72,803 | 171,193 |
| Pro Medicus Ltd. | | 5,338 | 681,202 |
| Rio Tinto Ltd. | | 1,277 | 99,795 |
| Rio Tinto PLC | | 4,270 | 275,365 |
| Suncorp Group Ltd. | | 18,671 | 219,153 |
| Wesfarmers Ltd. | | 4,657 | 205,227 |
TOTAL AUSTRALIA | | | 4,223,850 |
| Belgium - 0.5% | | | |
| UCB SA | | 2,184 | 419,203 |
| Canada - 13.0% | | | |
| ARC Resources Ltd. | | 41,658 | 689,145 |
| Brookfield Asset Management Ltd. Class A | | 5,893 | 312,289 |
| Canadian Imperial Bank of Commerce | | 7,117 | 444,752 |
| Canadian National Railway Co. | | 3,929 | 423,778 |
| Canadian Natural Resources Ltd. | | 28,190 | 957,564 |
| CCL Industries, Inc. Class B | | 2,980 | 173,633 |
| CGI, Inc. Class A (sub. vtg.) | | 1,873 | 207,247 |
| Constellation Software, Inc. | | 97 | 292,196 |
| Constellation Software, Inc. warrants 3/31/40 (a)(b) | | 40 | 0 |
| Dollarama, Inc. | | 1,608 | 167,139 |
| Fairfax Financial Holdings Ltd. (sub. vtg.) | | 248 | 307,832 |
| FirstService Corp. | | 5,102 | 943,574 |
| Imperial Oil Ltd. | | 10,220 | 761,762 |
| Intact Financial Corp. | | 1,720 | 328,095 |
| Kinross Gold Corp. | | 18,085 | 182,284 |
| Loblaw Companies Ltd. | | 4,924 | 621,845 |
| Manulife Financial Corp. | | 13,831 | 403,534 |
| Metro, Inc. | | 9,833 | 583,300 |
| Pembina Pipeline Corp. | | 19,649 | 821,087 |
| Quebecor, Inc. Class B (sub. vtg.) | | 40,569 | 1,009,023 |
| Royal Bank of Canada | | 6,743 | 814,558 |
| Stantec, Inc. | | 2,999 | 242,984 |
| Stella-Jones, Inc. | | 2,258 | 136,360 |
| Thomson Reuters Corp. | | 1,937 | 316,698 |
| TMX Group Ltd. | | 7,429 | 231,778 |
TOTAL CANADA | | | 11,372,457 |
| China - 0.4% | | | |
| BOC Hong Kong (Holdings) Ltd. | | 101,000 | 329,980 |
| Denmark - 3.5% | | | |
| Carlsberg A/S Series B | | 5,070 | 557,187 |
| Coloplast A/S Series B | | 2,689 | 334,738 |
| Novo Nordisk A/S Series B | | 15,996 | 1,776,806 |
| Novonesis (NOVOZYMES) B Series B | | 2,854 | 178,511 |
| Pandora A/S | | 1,316 | 198,072 |
TOTAL DENMARK | | | 3,045,314 |
| Finland - 0.8% | | | |
| Kone OYJ (B Shares) | | 6,589 | 359,527 |
| Orion Oyj (B Shares) | | 6,513 | 315,713 |
TOTAL FINLAND | | | 675,240 |
| France - 6.9% | | | |
| Capgemini SA | | 660 | 114,071 |
| Compagnie de St.-Gobain | | 3,278 | 295,306 |
| Eiffage SA | | 1,596 | 148,076 |
| Gaztransport et Technigaz SA | | 3,608 | 522,531 |
| Hermes International SCA | | 167 | 376,024 |
| Ipsen SA | | 2,676 | 325,092 |
| L'Oreal SA | | 2,346 | 876,782 |
| La Francaise des Jeux SAEM (c) | | 4,757 | 202,239 |
| Publicis Groupe SA | | 9,462 | 1,003,821 |
| Safran SA | | 1,781 | 401,790 |
| SEB SA | | 1,853 | 193,929 |
| Sodexo SA | | 2,034 | 176,215 |
| TotalEnergies SE | | 17,396 | 1,084,055 |
| VINCI SA | | 2,865 | 319,437 |
TOTAL FRANCE | | | 6,039,368 |
| Germany - 4.5% | | | |
| Allianz SE | | 2,347 | 737,397 |
| Bechtle AG | | 1,547 | 52,669 |
| Beiersdorf AG | | 4,375 | 588,965 |
| Brenntag SE | | 2,483 | 161,309 |
| Fresenius Medical Care AG & Co. KGaA | | 8,351 | 325,570 |
| Hannover Reuck SE | | 1,315 | 344,773 |
| Knorr-Bremse AG | | 2,047 | 168,008 |
| SAP SE | | 2,611 | 608,879 |
| Siemens AG | | 3,292 | 637,594 |
| Talanx AG | | 3,796 | 292,394 |
TOTAL GERMANY | | | 3,917,558 |
| Hong Kong - 1.2% | | | |
| Jardine Matheson Holdings Ltd. | | 3,277 | 126,165 |
| Sino Land Ltd. | | 943,295 | 943,974 |
TOTAL HONG KONG | | | 1,070,139 |
| Ireland - 0.6% | | | |
| Glanbia PLC | | 29,027 | 480,576 |
| Israel - 1.8% | | | |
| Bank Hapoalim BM (Reg.) | | 34,115 | 356,206 |
| Bank Leumi le-Israel BM | | 37,240 | 379,179 |
| Israel Discount Bank Ltd. (Class A) | | 57,724 | 339,934 |
| Mizrahi Tefahot Bank Ltd. | | 8,005 | 330,822 |
| NICE Ltd. (a) | | 473 | 83,463 |
| Nova Ltd. (a) | | 371 | 69,620 |
TOTAL ISRAEL | | | 1,559,224 |
| Italy - 2.0% | | | |
| BPER Banca | | 59,720 | 363,076 |
| Buzzi SpA | | 3,836 | 149,841 |
| Ferrari NV (Italy) | | 735 | 350,940 |
| Generali | | 16,168 | 448,474 |
| Recordati SpA | | 5,523 | 312,394 |
| Reply SpA | | 483 | 73,569 |
| Reply SpA rights (a) | | 483 | 0 |
TOTAL ITALY | | | 1,698,294 |
| Japan - 21.2% | | | |
| Brother Industries Ltd. | | 11,400 | 225,343 |
| Dai Nippon Printing Co. Ltd. | | 15,900 | 278,700 |
| Daito Trust Construction Co. Ltd. | | 12,300 | 1,363,033 |
| Daiwa Securities Group, Inc. | | 35,200 | 235,013 |
| Hikari Tsushin, Inc. | | 1,400 | 285,836 |
| INPEX Corp. | | 55,100 | 728,336 |
| Itochu Corp. | | 9,600 | 482,316 |
| J. Front Retailing Co. Ltd. | | 21,400 | 231,175 |
| Japan Exchange Group, Inc. | | 25,100 | 299,074 |
| Japan Post Holdings Co. Ltd. | | 30,100 | 280,103 |
| Japan Tobacco, Inc. | | 24,100 | 677,316 |
| Kajima Corp. | | 14,100 | 245,622 |
| KDDI Corp. | | 30,900 | 969,245 |
| McDonald's Holdings Co. (Japan) Ltd. | | 5,900 | 250,215 |
| Mebuki Financial Group, Inc. | | 61,200 | 232,184 |
| Medipal Holdings Corp. | | 28,800 | 458,588 |
| Mitsubishi Corp. | | 25,500 | 474,678 |
| Mitsui & Co. Ltd. | | 20,500 | 425,544 |
| MS&AD Insurance Group Holdings, Inc. | | 15,500 | 349,939 |
| NEC Corp. | | 3,100 | 269,348 |
| Nintendo Co. Ltd. | | 18,300 | 978,523 |
| Nippon Telegraph & Telephone Corp. | | 818,500 | 793,648 |
| OBIC Co. Ltd. | | 7,900 | 258,847 |
| Oji Holdings Corp. | | 33,600 | 125,378 |
| Ono Pharmaceutical Co. Ltd. | | 36,600 | 459,527 |
| Otsuka Corp. | | 10,300 | 232,337 |
| Otsuka Holdings Co. Ltd. | | 12,400 | 754,786 |
| Sanwa Holdings Corp. | | 11,900 | 306,709 |
| Secom Co. Ltd. | | 8,900 | 319,074 |
| Sekisui Chemical Co. Ltd. | | 16,800 | 239,330 |
| Sekisui House Ltd. | | 11,500 | 280,545 |
| SHIMANO, Inc. | | 1,500 | 224,175 |
| Shin-Etsu Chemical Co. Ltd. | | 6,800 | 256,911 |
| Shionogi & Co. Ltd. | | 38,300 | 550,394 |
| Sojitz Corp. | | 10,800 | 223,835 |
| Sompo Holdings, Inc. | | 14,700 | 320,780 |
| Subaru Corp. | | 13,900 | 253,818 |
| Sumitomo Corp. | | 13,800 | 293,983 |
| Sumitomo Forestry Co. Ltd. | | 6,400 | 249,992 |
| Suntory Beverage & Food Ltd. | | 16,200 | 549,306 |
| TIS, Inc. | | 10,400 | 261,220 |
| Tokio Marine Holdings, Inc. | | 13,500 | 493,471 |
| Toppan Holdings, Inc. | | 9,600 | 284,486 |
| Toyo Suisan Kaisha Ltd. | | 8,800 | 521,790 |
| Trend Micro, Inc. | | 4,700 | 249,031 |
| USS Co. Ltd. | | 27,100 | 228,257 |
TOTAL JAPAN | | | 18,471,761 |
| Jordan - 0.3% | | | |
| Hikma Pharmaceuticals PLC | | 12,204 | 291,051 |
| Netherlands - 3.8% | | | |
| ASML Holding NV (Netherlands) | | 976 | 658,220 |
| Euronext NV (c) | | 2,962 | 326,072 |
| EXOR NV | | 2,947 | 310,983 |
| Koninklijke Ahold Delhaize NV | | 21,685 | 713,568 |
| Koninklijke KPN NV | | 235,261 | 917,692 |
| Wolters Kluwer NV | | 2,450 | 411,478 |
TOTAL NETHERLANDS | | | 3,338,013 |
| Norway - 2.2% | | | |
| Equinor ASA | | 23,679 | 566,837 |
| Frontline PLC | | 21,654 | 415,985 |
| Kongsberg Gruppen ASA | | 2,966 | 307,883 |
| Orkla ASA | | 70,462 | 649,658 |
TOTAL NORWAY | | | 1,940,363 |
| Portugal - 0.5% | | | |
| Galp Energia SGPS SA | | 26,710 | 454,394 |
| Singapore - 1.9% | | | |
| CapitaLand Integrated Commercial Trust | | 624,185 | 953,098 |
| Oversea-Chinese Banking Corp. Ltd. | | 36,581 | 420,036 |
| Singapore Exchange Ltd. | | 37,400 | 320,878 |
TOTAL SINGAPORE | | | 1,694,012 |
| Spain - 0.9% | | | |
| CaixaBank SA | | 61,549 | 373,528 |
| Industria de Diseno Textil SA | | 6,461 | 366,852 |
TOTAL SPAIN | | | 740,380 |
| Sweden - 3.4% | | | |
| Atlas Copco AB (A Shares) | | 25,290 | 414,565 |
| Essity AB (B Shares) | | 22,650 | 636,737 |
| Evolution AB (c) | | 2,275 | 213,679 |
| Holmen AB (B Shares) | | 3,741 | 146,912 |
| Industrivarden AB (A Shares) | | 8,934 | 306,259 |
| Investor AB (B Shares) | | 15,903 | 448,031 |
| SKF AB (B Shares) | | 12,623 | 237,476 |
| Swedish Orphan Biovitrum AB (a) | | 11,708 | 364,369 |
| Trelleborg AB (B Shares) | | 6,364 | 210,308 |
TOTAL SWEDEN | | | 2,978,336 |
| Switzerland - 7.1% | | | |
| Accelleron Industries Ltd. | | 6,166 | 330,013 |
| Ems-Chemie Holding AG | | 177 | 136,020 |
| Galenica AG (c) | | 3,172 | 275,858 |
| Geberit AG (Reg.) | | 570 | 356,489 |
| Givaudan SA | | 43 | 203,737 |
| Logitech International SA (Reg.) | | 1,026 | 83,959 |
| Novartis AG | | 10,979 | 1,190,968 |
| PSP Swiss Property AG | | 10,646 | 1,509,425 |
| Sandoz Group AG | | 7,792 | 354,591 |
| Siegfried Holding AG | | 238 | 311,021 |
| Sonova Holding AG | | 1,046 | 381,287 |
| Swissquote Group Holding SA | | 463 | 157,528 |
| UBS Group AG | | 15,228 | 467,389 |
| Zurich Insurance Group Ltd. | | 764 | 451,314 |
TOTAL SWITZERLAND | | | 6,209,599 |
| United Kingdom - 11.7% | | | |
| 3i Group PLC | | 11,377 | 463,963 |
| AstraZeneca PLC (United Kingdom) | | 8,498 | 1,206,389 |
| Auto Trader Group PLC (c) | | 87,368 | 942,629 |
| BAE Systems PLC | | 18,006 | 289,368 |
| Beazley PLC | | 39,336 | 382,074 |
| British American Tobacco PLC (United Kingdom) | | 20,625 | 714,621 |
| CK Hutchison Holdings Ltd. | | 26,000 | 136,782 |
| Compass Group PLC | | 10,686 | 345,522 |
| Cranswick PLC | | 6,873 | 447,999 |
| IG Group Holdings PLC | | 27,601 | 317,593 |
| Imperial Brands PLC | | 18,434 | 553,861 |
| InterContinental Hotel Group PLC | | 2,334 | 256,921 |
| Man Group PLC | | 107,240 | 273,816 |
| RELX PLC (London Stock Exchange) | | 9,185 | 420,390 |
| Rightmove PLC | | 121,564 | 920,228 |
| Rolls-Royce Holdings PLC (a) | | 49,145 | 338,283 |
| Sage Group PLC | | 6,626 | 82,580 |
| Standard Chartered PLC (United Kingdom) | | 41,602 | 481,584 |
| Tesco PLC | | 126,207 | 555,247 |
| Unilever PLC | | 17,588 | 1,069,548 |
TOTAL UNITED KINGDOM | | | 10,199,398 |
| United States of America - 6.2% | | | |
| Experian PLC | | 5,915 | 287,226 |
| GSK PLC | | 32,132 | 575,249 |
| Holcim AG | | 2,474 | 243,423 |
| Roche Holding AG (participation certificate) | | 3,979 | 1,232,768 |
| Sanofi SA | | 7,574 | 798,508 |
| Schneider Electric SA | | 2,360 | 607,738 |
| Shell PLC (London) | | 42,131 | 1,396,663 |
| Stellantis NV (Italy) | | 16,230 | 221,943 |
TOTAL UNITED STATES OF AMERICA | | | 5,363,518 |
| TOTAL COMMON STOCKS (Cost $81,563,859) | | | 86,512,028 |
| | | | |
| Government Obligations - 0.0% |
| | | Principal Amount (d) | Value ($) |
| United States of America - 0.0% | | | |
U.S. Treasury Bills, yield at date of purchase 5.08% 11/21/24 (e) (Cost $14,958) | | 15,000 | 14,962 |
| | | | |
| Money Market Funds - 0.3% |
| | | Shares | Value ($) |
Fidelity Cash Central Fund 4.87% (f) (Cost $217,770) | | 217,726 | 217,770 |
| | | | |
| TOTAL INVESTMENT IN SECURITIES - 99.5% (Cost $81,796,587) | 86,744,760 |
NET OTHER ASSETS (LIABILITIES) - 0.5% | 422,800 |
| NET ASSETS - 100.0% | 87,167,560 |
| | |
| Futures Contracts |
| | Number of contracts | Expiration Date | Notional Amount ($) | Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
| Purchased | | | | | |
| | | | | | |
| Equity Index Contracts | | | | | |
| ICE MSCI EAFE Index Contracts (United States) | 5 | Dec 2024 | 587,550 | (23,338) | (23,338) |
| | | | | | |
| The notional amount of futures purchased as a percentage of Net Assets is 0.7% |
Legend
| (c) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $1,960,477 or 2.2% of net assets. |
| (d) | Amount is stated in United States dollars unless otherwise noted. |
| (e) | Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $14,962. |
| (f) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
| Fidelity Cash Central Fund 4.87% | 208,816 | 15,164,148 | 15,155,185 | 11,434 | (9) | - | 217,770 | 0.0% |
| Total | 208,816 | 15,164,148 | 15,155,185 | 11,434 | (9) | - | 217,770 | |
| | | | | | | | | |
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2024, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: |
| Description | Total ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
| Equities: | | | | |
Communication Services | 7,534,809 | 7,534,809 | - | - |
Consumer Discretionary | 5,344,397 | 5,344,397 | - | - |
Consumer Staples | 10,798,306 | 10,798,306 | - | - |
Energy | 8,398,359 | 8,398,359 | - | - |
Financials | 16,193,473 | 16,193,473 | - | - |
Health Care | 14,198,220 | 14,198,220 | - | - |
Industrials | 11,801,251 | 11,801,251 | - | - |
Information Technology | 3,822,599 | 3,822,599 | - | - |
Materials | 2,707,510 | 2,707,510 | - | - |
Real Estate | 5,713,104 | 5,713,104 | - | - |
|
| Government Obligations | 14,962 | - | 14,962 | - |
|
| Money Market Funds | 217,770 | 217,770 | - | - |
| Total Investments in Securities: | 86,744,760 | 86,729,798 | 14,962 | - |
Derivative Instruments: Liabilities | | | | |
Futures Contracts | (23,338) | (23,338) | - | - |
| Total Liabilities | (23,338) | (23,338) | - | - |
| Total Derivative Instruments: | (23,338) | (23,338) | - | - |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2024. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value |
| Asset ($) | Liability ($) |
| Equity Risk | | |
Futures Contracts (a) | 0 | (23,338) |
| Total Equity Risk | 0 | (23,338) |
| Total Value of Derivatives | 0 | (23,338) |
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
Fidelity® International Multifactor ETF
Financial Statements
| Statement of Assets and Liabilities |
As of October 31, 2024 |
| Assets | | | | |
| Investment in securities, at value - See accompanying schedule: | | | | |
Unaffiliated issuers (cost $81,578,817) | $ | 86,526,990 | | |
Fidelity Central Funds (cost $217,770) | | 217,770 | | |
| | | | | |
| | | | | |
| Total Investment in Securities (cost $81,796,587) | | | $ | 86,744,760 |
| Segregated cash with brokers for derivative instruments | | | | 17,513 |
| Cash | | | | 39,201 |
| Foreign currency held at value (cost $110,452) | | | | 108,703 |
| Dividends receivable | | | | 267,009 |
| Reclaims receivable | | | | 115,773 |
| Distributions receivable from Fidelity Central Funds | | | | 926 |
Total assets | | | | 87,293,885 |
| Liabilities | | | | |
| Payable for investments purchased | $ | 105,584 | | |
| Accrued management fee | | 14,414 | | |
| Payable for daily variation margin on futures contracts | | 3,927 | | |
| Other payables and accrued expenses | | 2,400 | | |
| Total liabilities | | | | 126,325 |
| Net Assets | | | $ | 87,167,560 |
| Net Assets consist of: | | | | |
| Paid in capital | | | $ | 85,350,104 |
| Total accumulated earnings (loss) | | | | 1,817,456 |
| Net Assets | | | $ | 87,167,560 |
Net Asset Value, offering price and redemption price per share ($87,167,560 ÷ 3,100,000 shares) | | | $ | 28.12 |
| Statement of Operations |
| Year ended October 31, 2024 |
| Investment Income | | | | |
| Dividends | | | $ | 2,209,426 |
| Income from Fidelity Central Funds | | | | 11,434 |
| Income before foreign taxes withheld | | | $ | 2,220,860 |
| Less foreign taxes withheld | | | | (195,814) |
| Total income | | | | 2,025,046 |
| Expenses | | | | |
| Management fee | $ | 116,603 | | |
| Independent trustees' fees and expenses | | 249 | | |
| Proxy fee | | 16,484 | | |
| Total expenses before reductions | | 133,336 | | |
| Expense reductions | | (8,193) | | |
| Total expenses after reductions | | | | 125,143 |
| Net Investment income (loss) | | | | 1,899,903 |
| Realized and Unrealized Gain (Loss) | | | | |
| Net realized gain (loss) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | (873,494) | | |
| Redemptions in-kind | | 2,834,883 | | |
| Fidelity Central Funds | | (9) | | |
| Foreign currency transactions | | (80,678) | | |
| Futures contracts | | 57,933 | | |
| Total net realized gain (loss) | | | | 1,938,635 |
| Change in net unrealized appreciation (depreciation) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | 5,972,631 | | |
| Assets and liabilities in foreign currencies | | (8,653) | | |
| Futures contracts | | (18,840) | | |
| Total change in net unrealized appreciation (depreciation) | | | | 5,945,138 |
| Net gain (loss) | | | | 7,883,773 |
| Net increase (decrease) in net assets resulting from operations | | | $ | 9,783,676 |
| Statement of Changes in Net Assets |
| |
| | Year ended October 31, 2024 | | Year ended October 31, 2023 |
| Increase (Decrease) in Net Assets | | | | |
| Operations | | | | |
| Net investment income (loss) | $ | 1,899,903 | $ | 628,622 |
| Net realized gain (loss) | | 1,938,635 | | (549,531) |
| Change in net unrealized appreciation (depreciation) | | 5,945,138 | | 560,479 |
| Net increase (decrease) in net assets resulting from operations | | 9,783,676 | | 639,570 |
| Distributions to shareholders | | (1,945,700) | | (626,600) |
| | | | | |
| Share transactions | | | | |
| Proceeds from sales of shares | | 65,184,991 | | 17,630,620 |
| Cost of shares redeemed | | (16,741,609) | | - |
| | | | | |
Net increase (decrease) in net assets resulting from share transactions | | 48,443,382 | | 17,630,620 |
| Total increase (decrease) in net assets | | 56,281,358 | | 17,643,590 |
| | | | | |
| Net Assets | | | | |
| Beginning of period | | 30,886,202 | | 13,242,612 |
| End of period | $ | 87,167,560 | $ | 30,886,202 |
| | | | | |
| Other Information | | | | |
| Shares | | | | |
| Sold | | 2,400,000 | | 700,000 |
| Redeemed | | (600,000) | | - |
| Net increase (decrease) | | 1,800,000 | | 700,000 |
| | | | | |
Financial Highlights
Fidelity® International Multifactor ETF |
| |
| Years ended October 31, | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 23.76 | $ | 22.07 | $ | 29.41 | $ | 24.01 | $ | 26.18 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .80 | | .70 | | .65 | | .65 | | .57 |
| Net realized and unrealized gain (loss) | | 4.37 C | | 1.67 | | (7.12) | | 5.34 | | (2.07) |
| Total from investment operations | | 5.17 | | 2.37 | | (6.47) | | 5.99 | | (1.50) |
| Distributions from net investment income | | (.81) | | (.68) | | (.87) | | (.59) | | (.67) |
| Total distributions | | (.81) | | (.68) | | (.87) | | (.59) | | (.67) |
| Net asset value, end of period | $ | 28.12 | $ | 23.76 | $ | 22.07 | $ | 29.41 | $ | 24.01 |
Total Return D,E | | | | 10.58% | | (22.36)% | | 25.08% | | (5.73)% |
Ratios to Average Net Assets B,F,G | | | | | | | | | | |
| Expenses before reductions | | .20% | | .39% | | .39% | | .39% | | .39% |
| Expenses net of fee waivers, if any | | | | .39% | | .39% | | .39% | | .39% |
| Expenses net of all reductions | | .19% | | .39% | | .39% | | .39% | | .39% |
| Net investment income (loss) | | 2.92% | | 2.78% | | 2.51% | | 2.28% | | 2.29% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 87,168 | $ | 30,886 | $ | 13,243 | $ | 17,648 | $ | 7,202 |
Portfolio turnover rate H | | | | 60% I | | 61% I | | 74% I | | 69% I |
ACalculated based on average shares outstanding during the period.
BNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
CAmount includes a reimbursement from the investment adviser for an operational error which amounted to less than $.03 per share. Excluding this reimbursement, the total return would have been 21.76%.
DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
EBased on net asset value.
FFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
HAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
IPortfolio turnover rate excludes securities received or delivered in-kind.
Fidelity® International Value Factor ETF
Schedule of Investments October 31, 2024
Showing Percentage of Net Assets
| Common Stocks - 99.4% |
| | | Shares | Value ($) |
| Australia - 6.3% | | | |
| BHP Group Ltd. | | 79,907 | 2,231,739 |
| Brambles Ltd. | | 49,047 | 589,829 |
| Glencore PLC | | 317,015 | 1,655,958 |
| Macquarie Group Ltd. | | 15,469 | 2,345,704 |
| QBE Insurance Group Ltd. | | 159,772 | 1,801,038 |
| Rio Tinto PLC | | 27,956 | 1,802,832 |
TOTAL AUSTRALIA | | | 10,427,100 |
| Canada - 10.5% | | | |
| Air Canada (a) | | 92,340 | 1,250,013 |
| Bank of Nova Scotia | | 32,423 | 1,667,495 |
| Canadian National Railway Co. | | 13,654 | 1,472,706 |
| Canadian Natural Resources Ltd. | | 48,676 | 1,653,437 |
| CGI, Inc. Class A (sub. vtg.) | | 16,668 | 1,844,307 |
| Fairfax Financial Holdings Ltd. (sub. vtg.) | | 1,080 | 1,340,557 |
| FirstService Corp. | | 633 | 117,068 |
| Fortis, Inc. | | 13,846 | 598,260 |
| Manulife Financial Corp. | | 54,657 | 1,594,677 |
| Nutrien Ltd. | | 42,535 | 2,025,825 |
| Rogers Communications, Inc. Class B (non-vtg.) | | 19,312 | 700,605 |
| Suncor Energy, Inc. | | 38,597 | 1,455,331 |
| The Toronto-Dominion Bank | | 32,417 | 1,789,976 |
TOTAL CANADA | | | 17,510,257 |
| China - 0.8% | | | |
| Wilmar International Ltd. | | 563,800 | 1,363,792 |
| Denmark - 2.8% | | | |
| A.P. Moller - Maersk A/S Series B | | 823 | 1,293,809 |
| Novo Nordisk A/S Series B | | 30,481 | 3,385,770 |
TOTAL DENMARK | | | 4,679,579 |
| Finland - 0.6% | | | |
| Nokia Corp. | | 228,263 | 1,071,794 |
| France - 11.1% | | | |
| Alten SA | | 7,054 | 595,040 |
| BNP Paribas SA | | 25,647 | 1,747,190 |
| Capgemini SA | | 5,039 | 870,918 |
| Carrefour SA | | 123,860 | 1,954,501 |
| Compagnie de St.-Gobain | | 17,693 | 1,593,913 |
| Engie SA | | 126,327 | 2,114,120 |
| Klepierre SA | | 40,199 | 1,281,330 |
| LVMH Moet Hennessy Louis Vuitton SE | | 3,902 | 2,583,239 |
| Societe Generale Series A | | 54,344 | 1,556,677 |
| Teleperformance | | 9,384 | 987,192 |
| TotalEnergies SE | | 24,467 | 1,524,693 |
| VINCI SA | | 14,217 | 1,585,142 |
TOTAL FRANCE | | | 18,393,955 |
| Germany - 8.2% | | | |
| Allianz SE | | 7,479 | 2,349,805 |
| Bayerische Motoren Werke AG (BMW) | | 16,068 | 1,261,566 |
| Daimler Truck Holding AG | | 62,267 | 2,569,482 |
| Deutsche Bank AG | | 92,595 | 1,570,615 |
| Deutsche Telekom AG | | 71,780 | 2,167,956 |
| Fresenius Medical Care AG & Co. KGaA | | 14,453 | 563,460 |
| Fresenius SE & Co. KGaA (a) | | 17,337 | 630,911 |
| Infineon Technologies AG | | 32,746 | 1,031,859 |
| Mercedes-Benz Group AG (Germany) | | 25,223 | 1,525,253 |
TOTAL GERMANY | | | 13,670,907 |
| Hong Kong - 2.3% | | | |
| Hong Kong Exchanges and Clearing Ltd. | | 79,100 | 3,162,209 |
| Link (REIT) | | 142,100 | 662,575 |
TOTAL HONG KONG | | | 3,824,784 |
| Italy - 1.2% | | | |
| UniCredit SpA | | 45,785 | 2,022,060 |
| Japan - 22.1% | | | |
| Daiwa House Industry Co. Ltd. | | 42,800 | 1,284,351 |
| INPEX Corp. | | 58,400 | 771,957 |
| Japan Tobacco, Inc. | | 75,200 | 2,113,450 |
| Kansai Electric Power Co., Inc. | | 62,000 | 999,245 |
| KDDI Corp. | | 79,100 | 2,481,141 |
| Komatsu Ltd. | | 51,400 | 1,353,457 |
| Marubeni Corp. | | 81,600 | 1,244,423 |
| Mazda Motor Corp. | | 159,200 | 1,157,486 |
| Mitsubishi Corp. | | 93,100 | 1,733,038 |
| Mitsui & Co. Ltd. | | 77,500 | 1,608,764 |
| MS&AD Insurance Group Holdings, Inc. | | 85,200 | 1,923,537 |
| NEC Corp. | | 17,700 | 1,537,893 |
| Nippon Steel Corp. | | 91,700 | 1,847,545 |
| Ono Pharmaceutical Co. Ltd. | | 100,600 | 1,263,072 |
| ORIX Corp. | | 82,800 | 1,777,489 |
| Panasonic Holdings Corp. | | 194,700 | 1,582,397 |
| Renesas Electronics Corp. | | 94,300 | 1,306,240 |
| SBI Holdings, Inc. Japan | | 68,700 | 1,532,981 |
| Shionogi & Co. Ltd. | | 104,100 | 1,495,978 |
| Sony Group Corp. | | 129,300 | 2,311,824 |
| Subaru Corp. | | 76,300 | 1,393,261 |
| Sumitomo Corp. | | 59,000 | 1,256,885 |
| Tokyo Electron Ltd. | | 10,400 | 1,597,637 |
| Toyota Tsusho Corp. | | 71,000 | 1,231,925 |
TOTAL JAPAN | | | 36,805,976 |
| Luxembourg - 0.9% | | | |
| ArcelorMittal SA (Netherlands) | | 58,787 | 1,447,485 |
| Netherlands - 3.7% | | | |
| ASML Holding NV (Netherlands) | | 4,187 | 2,823,737 |
| Koninklijke Ahold Delhaize NV | | 63,703 | 2,096,214 |
| Randstad NV | | 27,449 | 1,262,030 |
TOTAL NETHERLANDS | | | 6,181,981 |
| Singapore - 0.9% | | | |
| Genting Singapore Ltd. | | 2,427,900 | 1,532,464 |
| Spain - 2.1% | | | |
| Banco Bilbao Vizcaya Argentaria SA | | 164,385 | 1,632,951 |
| Banco Santander SA (Spain) | | 382,536 | 1,865,529 |
TOTAL SPAIN | | | 3,498,480 |
| Sweden - 3.3% | | | |
| Essity AB (B Shares) | | 68,605 | 1,928,625 |
| SSAB AB (B Shares) | | 251,476 | 1,177,936 |
| Volvo AB (B Shares) | | 90,663 | 2,344,517 |
TOTAL SWEDEN | | | 5,451,078 |
| Switzerland - 3.8% | | | |
| ABB Ltd. (Reg.) | | 30,573 | 1,693,589 |
| Novartis AG | | 19,623 | 2,128,643 |
| UBS Group AG | | 81,175 | 2,491,482 |
TOTAL SWITZERLAND | | | 6,313,714 |
| United Kingdom - 12.2% | | | |
| AstraZeneca PLC (United Kingdom) | | 16,053 | 2,278,908 |
| BAE Systems PLC | | 111,523 | 1,792,244 |
| Barclays PLC | | 414,370 | 1,265,245 |
| British American Tobacco PLC (United Kingdom) | | 60,044 | 2,080,421 |
| Centrica PLC | | 1,094,293 | 1,650,268 |
| CK Hutchison Holdings Ltd. | | 121,500 | 639,194 |
| easyJet PLC | | 261,309 | 1,716,042 |
| HSBC Holdings PLC (United Kingdom) | | 258,367 | 2,364,051 |
| Kingfisher PLC | | 500,192 | 1,880,985 |
| Reckitt Benckiser Group PLC | | 34,847 | 2,098,481 |
| Standard Chartered PLC (United Kingdom) | | 109,006 | 1,261,853 |
| Vodafone Group PLC | | 1,377,145 | 1,275,133 |
TOTAL UNITED KINGDOM | | | 20,302,825 |
| United States of America - 6.6% | | | |
| Alcon, Inc. (Switzerland) | | 7,529 | 692,908 |
| BP PLC | | 206,184 | 998,426 |
| CSL Ltd. | | 6,251 | 1,174,890 |
| GSK PLC | | 58,906 | 1,054,575 |
| Roche Holding AG (participation certificate) | | 7,141 | 2,212,413 |
| Sanofi SA | | 14,031 | 1,479,253 |
| Shell PLC (London) | | 64,522 | 2,138,936 |
| Stellantis NV (Italy) | | 90,920 | 1,243,317 |
TOTAL UNITED STATES OF AMERICA | | | 10,994,718 |
| TOTAL COMMON STOCKS (Cost $160,421,687) | | | 165,492,949 |
| | | | |
| Government Obligations - 0.0% |
| | | Principal Amount (b) | Value ($) |
| United States of America - 0.0% | | | |
U.S. Treasury Bills, yield at date of purchase 5.08% 11/21/24 (c) (Cost $18,947) | | 19,000 | 18,951 |
| | | | |
| Money Market Funds - 0.0% |
| | | Shares | Value ($) |
Fidelity Cash Central Fund 4.87% (d) (Cost $19,948) | | 19,944 | 19,948 |
| | | | |
| TOTAL INVESTMENT IN SECURITIES - 99.4% (Cost $160,460,582) | 165,531,848 |
NET OTHER ASSETS (LIABILITIES) - 0.6% | 951,128 |
| NET ASSETS - 100.0% | 166,482,976 |
| | |
| Futures Contracts |
| | Number of contracts | Expiration Date | Notional Amount ($) | Value ($) | Unrealized Appreciation/ (Depreciation) ($) |
| Purchased | | | | | |
| | | | | | |
| Equity Index Contracts | | | | | |
| ICE MSCI EAFE Index Contracts (United States) | 8 | Dec 2024 | 940,080 | (42,646) | (42,646) |
| | | | | | |
| The notional amount of futures purchased as a percentage of Net Assets is 0.6% |
Legend
| (b) | Amount is stated in United States dollars unless otherwise noted. |
| (c) | Security or a portion of the security was pledged to cover margin requirements for futures contracts. At period end, the value of securities pledged amounted to $18,951. |
| (d) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
| Affiliate | Value, beginning of period ($) | Purchases ($) | Sales Proceeds ($) | Dividend Income ($) | Realized Gain (loss) ($) | Change in Unrealized appreciation (depreciation) ($) | Value, end of period ($) | % ownership, end of period |
| Fidelity Cash Central Fund 4.87% | 74,181 | 18,574,943 | 18,629,214 | 12,533 | 38 | - | 19,948 | 0.0% |
| Fidelity Securities Lending Cash Central Fund 4.87% | - | 5,339,316 | 5,339,316 | 8,314 | - | - | - | 0.0% |
| Total | 74,181 | 23,914,259 | 23,968,530 | 20,847 | 38 | - | 19,948 | |
| | | | | | | | | |
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of October 31, 2024, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
| Valuation Inputs at Reporting Date: |
| Description | Total ($) | Level 1 ($) | Level 2 ($) | Level 3 ($) |
Investments in Securities: | | | | |
|
| Equities: | | | | |
Communication Services | 6,624,835 | 6,624,835 | - | - |
Consumer Discretionary | 16,471,792 | 16,471,792 | - | - |
Consumer Staples | 13,635,484 | 13,635,484 | - | - |
Energy | 8,542,780 | 8,542,780 | - | - |
Financials | 39,063,121 | 39,063,121 | - | - |
Health Care | 18,360,781 | 18,360,781 | - | - |
Industrials | 29,218,194 | 29,218,194 | - | - |
Information Technology | 12,679,425 | 12,679,425 | - | - |
Materials | 12,189,320 | 12,189,320 | - | - |
Real Estate | 3,345,324 | 3,345,324 | - | - |
Utilities | 5,361,893 | 5,361,893 | - | - |
|
| Government Obligations | 18,951 | - | 18,951 | - |
|
| Money Market Funds | 19,948 | 19,948 | - | - |
| Total Investments in Securities: | 165,531,848 | 165,512,897 | 18,951 | - |
Derivative Instruments: Liabilities | | | | |
Futures Contracts | (42,646) | (42,646) | - | - |
| Total Liabilities | (42,646) | (42,646) | - | - |
| Total Derivative Instruments: | (42,646) | (42,646) | - | - |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2024. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value |
| Asset ($) | Liability ($) |
| Equity Risk | | |
Futures Contracts (a) | 0 | (42,646) |
| Total Equity Risk | 0 | (42,646) |
| Total Value of Derivatives | 0 | (42,646) |
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
Fidelity® International Value Factor ETF
Financial Statements
| Statement of Assets and Liabilities |
As of October 31, 2024 |
| Assets | | | | |
| Investment in securities, at value - See accompanying schedule: | | | | |
Unaffiliated issuers (cost $160,440,634) | $ | 165,511,900 | | |
Fidelity Central Funds (cost $19,948) | | 19,948 | | |
| | | | | |
| | | | | |
| Total Investment in Securities (cost $160,460,582) | | | $ | 165,531,848 |
| Segregated cash with brokers for derivative instruments | | | | 25,678 |
| Cash | | | | 13,487 |
| Foreign currency held at value (cost $114,756) | | | | 114,081 |
| Dividends receivable | | | | 603,588 |
| Reclaims receivable | | | | 223,767 |
| Interest receivable | | | | 15 |
| Distributions receivable from Fidelity Central Funds | | | | 1,553 |
Total assets | | | | 166,514,017 |
| Liabilities | | | | |
| Accrued management fee | $ | 25,841 | | |
| Payable for daily variation margin on futures contracts | | 5,200 | | |
| Total liabilities | | | | 31,041 |
| Net Assets | | | $ | 166,482,976 |
| Net Assets consist of: | | | | |
| Paid in capital | | | $ | 166,660,821 |
| Total accumulated earnings (loss) | | | | (177,845) |
| Net Assets | | | $ | 166,482,976 |
Net Asset Value, offering price and redemption price per share ($166,482,976 ÷ 6,600,000 shares) | | | $ | 25.22 |
| Statement of Operations |
| Year ended October 31, 2024 |
| Investment Income | | | | |
| Dividends | | | $ | 5,116,589 |
| Income from Fidelity Central Funds (including $8,314 from security lending) | | | | 20,847 |
| Income before foreign taxes withheld | | | $ | 5,137,436 |
| Less foreign taxes withheld | | | | (409,138) |
| Total income | | | | 4,728,298 |
| Expenses | | | | |
| Management fee | $ | 228,713 | | |
| Independent trustees' fees and expenses | | 502 | | |
| Proxy fee | | 16,069 | | |
| Total expenses before reductions | | 245,284 | | |
| Expense reductions | | (201) | | |
| Total expenses after reductions | | | | 245,083 |
| Net Investment income (loss) | | | | 4,483,215 |
| Realized and Unrealized Gain (Loss) | | | | |
| Net realized gain (loss) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | 1,528,432 | | |
| Redemptions in-kind | | 3,731,085 | | |
| Fidelity Central Funds | | 38 | | |
| Foreign currency transactions | | 9,485 | | |
| Futures contracts | | 74,470 | | |
| Total net realized gain (loss) | | | | 5,343,510 |
| Change in net unrealized appreciation (depreciation) on: | | | | |
| Investment Securities: | | | | |
| Unaffiliated issuers | | 8,145,188 | | |
| Assets and liabilities in foreign currencies | | (29,224) | | |
| Futures contracts | | (31,507) | | |
| Total change in net unrealized appreciation (depreciation) | | | | 8,084,457 |
| Net gain (loss) | | | | 13,427,967 |
| Net increase (decrease) in net assets resulting from operations | | | $ | 17,911,182 |
| Statement of Changes in Net Assets |
| |
| | Year ended October 31, 2024 | | Year ended October 31, 2023 |
| Increase (Decrease) in Net Assets | | | | |
| Operations | | | | |
| Net investment income (loss) | $ | 4,483,215 | $ | 1,738,220 |
| Net realized gain (loss) | | 5,343,510 | | 502,232 |
| Change in net unrealized appreciation (depreciation) | | 8,084,457 | | 2,970,322 |
| Net increase (decrease) in net assets resulting from operations | | 17,911,182 | | 5,210,774 |
| Distributions to shareholders | | (4,690,900) | | (1,727,100) |
| | | | | |
| Share transactions | | | | |
| Proceeds from sales of shares | | 98,975,785 | | 41,390,748 |
| Cost of shares redeemed | | (19,480,689) | | (8,989,408) |
| | | | | |
Net increase (decrease) in net assets resulting from share transactions | | 79,495,096 | | 32,401,340 |
| Total increase (decrease) in net assets | | 92,715,378 | | 35,885,014 |
| | | | | |
| Net Assets | | | | |
| Beginning of period | | 73,767,598 | | 37,882,584 |
| End of period | $ | 166,482,976 | $ | 73,767,598 |
| | | | | |
| Other Information | | | | |
| Shares | | | | |
| Sold | | 4,000,000 | | 1,800,000 |
| Redeemed | | (800,000) | | (400,000) |
| Net increase (decrease) | | 3,200,000 | | 1,400,000 |
| | | | | |
Financial Highlights
Fidelity® International Value Factor ETF |
| |
| Years ended October 31, | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 |
Selected Per-Share Data | | | | | | | | | | |
| Net asset value, beginning of period | $ | 21.70 | $ | 18.94 | $ | 24.38 | $ | 17.82 | $ | 21.89 |
| Income from Investment Operations | | | | | | | | | | |
Net investment income (loss) A,B | | .88 | | .79 | | .83 | | .79 | | .51 |
| Net realized and unrealized gain (loss) | | 3.54 | | 2.78 | | (5.32) | | 6.54 | | (4.09) |
| Total from investment operations | | 4.42 | | 3.57 | | (4.49) | | 7.33 | | (3.58) |
| Distributions from net investment income | | (.90) | | (.81) | | (.95) | | (.77) | | (.49) |
| Total distributions | | (.90) | | (.81) | | (.95) | | (.77) | | (.49) |
| Net asset value, end of period | $ | 25.22 | $ | 21.70 | $ | 18.94 | $ | 24.38 | $ | 17.82 |
Total Return C,D | | | | 18.72% | | (18.82)% | | 41.36% | | (16.32)% |
Ratios to Average Net Assets B,E,F | | | | | | | | | | |
| Expenses before reductions | | .19% | | .39% | | .39% | | .39% | | .39% |
| Expenses net of fee waivers, if any | | | | .39% | | .39% | | .39% | | .39% |
| Expenses net of all reductions | | .19% | | .39% | | .39% | | .39% | | .39% |
| Net investment income (loss) | | 3.52% | | 3.52% | | 3.79% | | 3.32% | | 2.60% |
| Supplemental Data | | | | | | | | | | |
| Net assets, end of period (000 omitted) | $ | 166,483 | $ | 73,768 | $ | 37,883 | $ | 41,449 | $ | 14,254 |
Portfolio turnover rate G | | | | 81% H | | 69% H | | 101% H | | 76% H |
ACalculated based on average shares outstanding during the period.
BNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
DBased on net asset value.
EFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
FExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
GAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
HPortfolio turnover rate excludes securities received or delivered in-kind.
Notes to Financial Statements
For the period ended October 31, 2024
1. Organization.
Fidelity Emerging Markets Multifactor ETF, Fidelity International High Dividend ETF, Fidelity International Multifactor ETF and Fidelity International Value Factor ETF (the Funds) are exchange-traded funds of Fidelity Covington Trust (the Trust) and are authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Certain Funds' investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties can be extremely volatile.
2. Investments in Fidelity Central Funds.
Funds may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
| Fidelity Central Fund | Investment Manager | Investment Objective | Investment Practices | Expense RatioA |
| Fidelity Money Market Central Funds | Fidelity Management & Research Company LLC (FMR) | Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity. | Short-term Investments | Less than .005% |
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Significant Accounting Policies.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. Each Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of each Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has designated each Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, each Fund attempts to obtain prices from one or more third party pricing services or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages each Fund's fair valuation practices and maintains the fair valuation policies and procedures. Each Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - unadjusted quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2024 is included at the end of each Fund's Schedule of Investments.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received, and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes and for processing shareholder transactions, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period and prior business day, respectively. The NAV per share for processing shareholder transactions is calculated as of the close of business (normally 4:00 p.m. Eastern time) of the Cboe BZX Exchange, Inc. (CboeBZX) for Fidelity Emerging Markets Multifactor ETF and Fidelity International Multifactor ETF, and of the New York Stock Exchange, Archipelago Exchange (NYSE Arca) for all other funds; normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and for certain Funds include proceeds received from litigation. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Funds represent a return of capital or capital gain. The Funds determine the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in foreign taxes withheld. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable or reclaims receivable. Fidelity Emerging Markets Multifactor ETF did not recognize dividend income during the period on certain Russian securities due to restrictions imposed by the Russian government on these dividend payments. There is uncertainty regarding the timeline for these restrictions to be lifted and the collectability of these and future dividend payments on Russian securities.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of October 31, 2024, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Realized gain or loss resulting from in-kind redemptions is not taxable to the Funds and is not distributed to shareholders of the Funds. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Fidelity Emerging Markets Multifactor ETF is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on each applicable Fund's Statement of Assets and Liabilities.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to futures contracts, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), redemptions in-kind, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows for each Fund:
| | Tax cost ($) | Gross unrealized appreciation ($) | Gross unrealized depreciation ($) | Net unrealized appreciation (depreciation) ($) |
Fidelity Emerging Markets Multifactor ETF | 99,821,623 | 10,593,966 | (6,905,372) | 3,688,594 |
Fidelity International High Dividend ETF | 98,693,321 | 6,628,821 | (7,219,633) | (590,812) |
Fidelity International Multifactor ETF | 82,353,471 | 7,606,906 | (3,215,617) | 4,391,289 |
| Fidelity International Value Factor ETF | 160,882,291 | 13,829,422 | (9,179,865) | 4,649,557 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
| | Undistributed ordinary income ($) | Capital loss carryforward ($) | Net unrealized appreciation (depreciation) on securities and other investments ($) |
Fidelity Emerging Markets Multifactor ETF | 563,691 | (1,943,497) | 3,672,690 |
Fidelity International High Dividend ETF | 492,870 | (12,130,235) | (516,177) |
Fidelity International Multifactor ETF | 187,943 | (2,779,412) | 4,408,925 |
| Fidelity International Value Factor ETF | 352,861 | (5,206,049) | 4,675,343 |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
| | Short-term | Long-term | Total capital loss carryforward |
Fidelity Emerging Markets Multifactor ETF | (481,623) | (1,461,874) | (1,943,497) |
Fidelity International High Dividend ETF | (6,164,394) | (5,965,841) | (12,130,235) |
Fidelity International Multifactor ETF | (1,802,788) | (976,624) | (2,779,412) |
| Fidelity International Value Factor ETF | (691,064) | (4,514,985) | (5,206,049) |
The tax character of distributions paid was as follows:
| October 31, 2024 | | | |
| | Ordinary Income ($) | Tax Return of Capital ($) | Total ($) |
Fidelity Emerging Markets Multifactor ETF | 2,073,600 | - | 2,073,600 |
Fidelity International High Dividend ETF | 5,072,600 | - | 5,072,600 |
Fidelity International Multifactor ETF | 1,945,700 | - | 1,945,700 |
| Fidelity International Value Factor ETF | 4,690,900 | - | 4,690,900 |
| October 31, 2023 | | | |
| | Ordinary Income ($) | Tax Return of Capital ($) | Total ($) |
Fidelity Emerging Markets Multifactor ETF | 1,198,769 | 11,231 | 1,210,000 |
Fidelity International High Dividend ETF | 4,144,700 | - | 4,144,700 |
Fidelity International Multifactor ETF | 626,600 | - | 626,600 |
| Fidelity International Value Factor ETF | 1,727,100 | - | 1,727,100 |
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
New Accounting Pronouncement. In November 2023, the FASB issued Accounting Standards Update (ASU) 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. Effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, the amendments enhance required disclosures of segment information for public entities on an annual and interim basis. The ASU allows for early adoption with updates applied retrospectively. Management is currently evaluating the impact of the ASU but does not expect this guidance to materially impact the financial statements.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. Each Fund's investment objectives allow for various types of derivative instruments, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
Derivatives were used to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the objectives may not be achieved.
Derivatives were used to increase or decrease exposure to the following risk(s):| | |
| Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
Funds are also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that a fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to a fund. Counterparty credit risk related to exchange-traded contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. Futures contracts were used to manage exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end, and is representative of volume of activity during the period unless an average notional amount is presented. Any securities deposited to meet initial margin requirements are identified in the Schedule of Investments. Any cash deposited to meet initial margin requirements is presented as segregated cash with brokers for derivative instruments in the Statement of Assets and Liabilities.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
| | Purchases ($) | Sales ($) |
| Fidelity Emerging Markets Multifactor ETF | 91,414,922 | 36,586,837 |
| Fidelity International High Dividend ETF | 60,142,077 | 58,727,715 |
| Fidelity International Multifactor ETF | 50,753,687 | 33,568,458 |
| Fidelity International Value Factor ETF | 95,680,143 | 84,948,282 |
Securities received and delivered in-kind through subscriptions and redemptions are noted in the table below.
| | In-Kind Subscriptions ($) | In-Kind Redemptions ($) |
| Fidelity Emerging Markets Multifactor ETF | 15,787,755 | - |
| Fidelity International High Dividend ETF | 12,574,301 | 8,187,042 |
| Fidelity International Multifactor ETF | 47,490,451 | 16,702,478 |
| Fidelity International Value Factor ETF | 87,380,521 | 19,407,109 |
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) provides the Funds with investment management related services for which the Funds pay a monthly management fee that is based on an annual rate of each Fund's average net assets as noted in the table below. Under the management contract, the investment adviser pays all other expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense.
| | Fee Rate |
| Fidelity Emerging Markets Multifactor ETF | .25% |
| Fidelity International High Dividend ETF | .18% |
| Fidelity International Multifactor ETF | .18% |
| Fidelity International Value Factor ETF | .18% |
Sub-Adviser. Geode Capital Management, LLC (Geode), serves as sub-adviser for the Funds. Geode provides discretionary investment advisory services to the Funds and is paid by the investment adviser for providing these services.
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), each Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing each Fund to borrow from, or lend money to, other participating affiliated funds at rates that are beneficial to both the borrowing and lending fund. Borrowings under the program are generally for temporary or emergency purposes, including meeting fund shareholder redemptions. The interfund loan rate is determined, as specified in the Exemptive Order, by averaging, (1) the higher of the overnight time deposit rate and the current overnight repurchase agreement rate, and (2) a benchmark rate representing the lowest bank loan rate available to the funds. At period end, there were no interfund loans outstanding. Activity in this program during the period for which loans were outstanding was as follows:
| | Borrower or Lender | Average Loan Balance ($) | Weighted Average Interest Rate | Interest Expense ($) |
| Fidelity Emerging Markets Multifactor ETF | Borrower | 1,304,571 | 5.57% | 1,414 |
Interfund Trades. Funds may purchase from or sell securities to other funds affiliated with each sub-adviser under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. During the period, there were no interfund trades.
Other. During the period, FMR reimbursed Fidelity International Multifactor ETF $78,017 for an operational error which is included in Net Realized Gain (Loss) in the accompanying Statement of Operations.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
| | Total Security Lending Fees Paid to NFS ($) | Security Lending Income From Securities Loaned to NFS ($) | Value of Securities Loaned to NFS at Period End ($) |
| Fidelity International High Dividend ETF | 1,321 | - | - |
| Fidelity International Value Factor ETF | 903 | - | - |
8. Bank Borrowings.
Each Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. Each Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:| | Average Loan Balance ($) | Weighted Average Interest Rate | Interest Expense ($) |
| Fidelity Emerging Markets Multifactor ETF | 9,220,000 | 5.83% | 1,493 |
9. Expense Reductions.
The investment adviser contractually agreed to reimburse certain Funds to the extent proxy and shareholder meeting expenses exceeded .013% of average net assets. This reimbursement will remain in place through February 28, 2026. During the period this reimbursement reduced each applicable Fund's expenses as follows:
| | Reimbursement ($) |
| Fidelity Emerging Markets Multifactor ETF | 9,361 |
| Fidelity International Multifactor ETF | 8,029 |
Through arrangements with each applicable Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
| | Custodian credits ($) |
Fidelity Emerging Markets Multifactor ETF | 547 |
Fidelity International High Dividend ETF | 259 |
Fidelity International Multifactor ETF | 164 |
Fidelity International Value Factor ETF | 201 |
10. Share Transactions.
Funds issue and redeem shares at NAV only with certain authorized participants in large increments known as Creation Units. Purchases of Creation Units are made by tendering a basket of designated securities to a fund and redemption proceeds are paid with a basket of securities from a fund's portfolio with a balancing cash component to equate the market value of the basket of securities delivered or redeemed to the NAV per Creation Unit on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery. A fund's shares are available in smaller increments to investors in the secondary market at market prices and may be subject to commissions. Authorized participants pay a transaction fee to the shareholder servicing agent when purchasing and redeeming Creation Units of a fund. The transaction fee is used to offset the costs associated with the issuance and redemption of Creation Units.
11. Other.
A fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
12. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer. Significant concentrations in security types, issuers, industries, sectors, and geographic locations may magnify the factors that affect a fund's performance.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Covington Trust and the Shareholders of Fidelity Emerging Markets Multifactor ETF, Fidelity International High Dividend ETF, Fidelity International Multifactor ETF, and Fidelity International Value Factor ETF:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Fidelity Emerging Markets Multifactor ETF, Fidelity International High Dividend ETF, Fidelity International Multifactor ETF, and Fidelity International Value Factor ETF (the "Funds"), each a fund of Fidelity Covington Trust, including the schedules of investments, as of October 31, 2024, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2024, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2024, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 17, 2024
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Distributions
(Unaudited)The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
| Fidelity Emerging Markets Multifactor ETF | |
December 2023 March 2024 June 2024 September 2024 | 64.19% 61.01% 61.01% 61.01% |
| Fidelity International High Dividend ETF | |
December 2023 March 2024 June 2024 September 2024 | 57.26% 100% 100% 100% |
| Fidelity International Multifactor ETF | |
December 2023 March 2024 June 2024 September 2024 | 46.36% 100% 100% 100% |
| Fidelity International Value Factor ETF | |
December 2023 March 2024 June 2024 September 2024 | 37.85% 100% 100% 100% |
The funds hereby designate the amounts noted below as distributions paid during the fiscal year ended 2024 as qualifying to be taxed as section 163(j) interest dividends:
| Fidelity Emerging Markets Multifactor ETF | $16,082 |
| Fidelity International Multifactor ETF | $11,597 |
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are as follows:
| | Pay Date | Income | Taxes |
| Fidelity Emerging Markets Multifactor ETF | | | |
| | 03/22/23 | $0.1317 | $0.0180 |
| | 06/22/23 | $0.4508 | $0.0617 |
| | 09/20/23 | $0.4855 | $0.0665 |
| | 12/20/23 | $0.1375 | $0.0188 |
| | 01/03/24 | $0.0000 | $0.0000 |
| Fidelity International High Dividend ETF | | | |
| | 03/22/23 | $0.3709 | $0.0299 |
| | 06/22/23 | $0.2746 | $0.0221 |
| | 09/20/23 | $0.2120 | $0.0171 |
| | 12/20/23 | $0.2109 | $0.0170 |
| Fidelity International Multifactor ETF | | | |
| | 03/22/23 | $0.2290 | $0.0188 |
| | 06/22/23 | $0.2539 | $0.0208 |
| | 09/20/23 | $0.1931 | $0.0158 |
| | 12/20/23 | $0.1334 | $0.0109 |
| Fidelity International Value Factor ETF | | | |
| | 03/22/23 | $0.2340 | $0.0159 |
| | 06/22/23 | $0.3762 | $0.0256 |
| | 09/20/23 | $0.1699 | $0.0116 |
| | 12/20/23 | $0.1678 | $0.0114 |
| | | | |
The funds will notify shareholders in January 2025 of amounts for use in preparing 2024 income tax returns.
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies
(Unaudited)
Note: This is not applicable for any fund included in this document.
Item 9: Proxy Disclosures for Open-End Management Investment Companies
(Unaudited)
| A special meeting of shareholders was held on July 16, 2024. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting. |
| Proposal 1 |
| To elect a Board of Trustees. |
| | # of Votes | % of Votes |
| Bettina Doulton |
| Affirmative | 38,080,283,823.03 | 97.17 |
| Withheld | 1,109,333,237.47 | 2.83 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| Robert A. Lawrence |
| Affirmative | 37,781,807,251.33 | 96.41 |
| Withheld | 1,407,809,809.17 | 3.59 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| Vijay C. Advani |
| Affirmative | 37,869,526,083.09 | 96.63 |
| Withheld | 1,320,090,977.41 | 3.37 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| Thomas P. Bostick |
| Affirmative | 38,025,875,898.31 | 97.03 |
| Withheld | 1,163,741,162.19 | 2.97 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| Donald F. Donahue |
| Affirmative | 37,825,198,238.79 | 96.52 |
| Withheld | 1,364,418,821.71 | 3.48 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| Vicki L. Fuller |
| Affirmative | 38,031,768,119.99 | 97.05 |
| Withheld | 1,157,848,940.51 | 2.95 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| Patricia L. Kampling |
| Affirmative | 38,062,391,881.90 | 97.12 |
| Withheld | 1,127,225,178.60 | 2.88 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| Thomas A. Kennedy |
| Affirmative | 37,891,434,776.27 | 96.69 |
| Withheld | 1,298,182,284.23 | 3.31 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| Oscar Munoz |
| Affirmative | 37,976,932,673.73 | 96.91 |
| Withheld | 1,212,684,386.77 | 3.09 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| Karen B. Peetz |
| Affirmative | 38,011,822,212.28 | 96.99 |
| Withheld | 1,177,794,848.22 | 3.01 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| David M. Thomas |
| Affirmative | 37,976,058,118.16 | 96.90 |
| Withheld | 1,213,558,942.34 | 3.10 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| Susan Tomasky |
| Affirmative | 37,845,471,684.67 | 96.57 |
| Withheld | 1,344,145,375.83 | 3.43 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| Michael E. Wiley |
| Affirmative | 37,736,569,620.69 | 96.29 |
| Withheld | 1,453,047,439.81 | 3.71 |
| TOTAL | 39,189,617,060.50 | 100.00 |
| | | |
| Proposal 1 reflects trust-wide proposal and voting results. |
Item 10: Remuneration Paid to Directors, Officers, and others of Open-End Management Investment Companies
(Unaudited)
Note: This information is disclosed as part of the financial statements for each Fund as part of Item 7: Financial Statements and Financial Highlights for Open-End Management Investment companies.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract
(Unaudited)
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International High Dividend ETF
Fidelity International Value Factor ETF
Fidelity Emerging Markets Multifactor ETF
Fidelity International Multifactor ETF
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), considers the renewal of each fund's management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreement (Sub-Advisory Agreement) for each fund with Geode Capital Management, LLC (Geode) (together, the Advisory Contracts). FMR and Geode are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board, acting directly and through its Committees (each of which is composed of and chaired by Independent Trustees), requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
At its May 2024 meeting, the Board unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness relative to peer funds of each fund's management fee and total expense ratio; (iii) the total costs of the services provided by and the profits realized by FMR and its affiliates (Fidelity) and Geode from their respective relationships with each fund; and (iv) the extent to which, if any, economies of scale exist and are realized as each fund grows, and whether any economies of scale are appropriately shared with fund shareholders. The Board also considered the broad range of investment choices available to shareholders from FMR's competitors and that each fund's shareholders have chosen to invest in the fund, which is part of the Fidelity family of funds. The Board's decision to renew the Advisory Contracts was not based on any single factor.
The Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable in light of all of the surrounding circumstances.
Nature, Extent, and Quality of Services Provided. The Board considered staffing as it relates to the funds, including the backgrounds and experience of investment personnel of the Investment Advisers, and also considered the Investment Advisers' implementation of each fund's investment program. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups and with senior management of Geode. The Board considered the structure of the investment personnel compensation programs and whether the structures provide appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
The Trustees also discussed with representatives of Fidelity, at meetings throughout the year, Fidelity's role in, among other things, overseeing compliance with federal securities laws and other applicable requirements by Geode with respect to the funds and monitoring and overseeing the performance and investment capabilities of Geode. The Trustees considered that the Board had received from Fidelity periodic reports about its oversight and due diligence processes, as well as periodic reports regarding the performance of Geode.
The Board also considered the nature, extent and quality of services provided by Geode. The Trustees noted that under the Sub-Advisory Agreement, subject to oversight by Fidelity, Geode is responsible for, among other things, identifying investments and arranging for execution of portfolio transactions to implement each fund's investment strategy. In addition, the Trustees noted that Geode is responsible for providing such reporting as may be requested by Fidelity to fulfill its oversight responsibilities discussed above.
Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's and Geode's investment staffs, including their size, education, experience, and resources, as well as Fidelity's and Geode's approach to recruiting, training, managing, and compensating investment personnel. The Board considered that Fidelity's and Geode's investment professionals have extensive resources, tools and capabilities so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously. Additionally, in its deliberations, the Board considered Fidelity's and Geode's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative services provided by the Investment Advisers and their affiliates under the Advisory Contracts and by FMR's affiliates under a separate agreement covering pricing and bookkeeping services for each fund; (ii) the nature and extent of Fidelity's supervision of third party service providers, principally State Street Bank and Trust Company, each fund's transfer agent and custodian; and (iii) the resources devoted by Fidelity to, and the record of compliance with, each fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers. The Board also considered each fund's securities lending activities and any payments made to Fidelity relating to securities lending, under a separate agreement.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, investor education materials, and asset allocation tools. The Board also considered that it reviews customer service metrics such as telephone response times, continuity of services on the website and metrics addressing services at Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds and/or the Fidelity funds in general.
Investment Performance. The Board took into account discussions that occur with representatives of the Investment Advisers, and reports that it receives, at Board meetings throughout the year relating to fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considered annualized return information for each fund for different time periods, measured against the securities market index the fund seeks to track. The Board also periodically considers each fund's tracking error versus its benchmark index. In its ongoing evaluation of fund investment performance, the Board gives particular attention to information indicating changes in performance of the funds over different time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance. The Board also considered information on each fund's bid-ask spread and premium/discount.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that an index fund's performance should be evaluated based on net performance (after fees and expenses) of the fund compared to a fund's benchmark index, over appropriate time periods taking into account relevant factors including the following: general market conditions; the characteristics of the fund's benchmark index; the extent to which statistical sampling is employed; any securities lending revenues; and fund cash flows and other factors.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should continue to benefit the shareholders of each fund.
Competitiveness of Management Fee and Total Expense Ratio. The Board was provided with information regarding industry trends in management fees and expenses. In its review of each fund's management fee and total expense ratio, the Board considered each fund's all-inclusive fee rate and also considered other expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees, paid by FMR under each fund's all-inclusive arrangement. The Board noted that, effective November 1, 2023, the management fee rate for each had been reduced and the information the Board received reflected a pro rata management fee rate as if the reductions had been in effect for the 12-month period ended September 30, 2023. The Board noted that Fidelity may agree to waive fees or reimburse expenses from time to time, and the extent to which, if any, it has done so for each fund.
Comparisons of Management Fees and Total Expense Ratios. Among other things, the Board reviewed data for selected groups of competitive funds and classes (referred to as "mapped groups") that were compiled by Fidelity based on combining similar investment objective categories (as classified by Morningstar) that have comparable investment mandates. The data reviewed by the Board included (i) gross management fee comparisons (before taking into account expense reimbursements or caps) relative to the total universe of funds within the mapped group; (ii) gross management fee comparisons relative to a subset of non-Fidelity funds in the mapped group that are similar in size and management fee structure to each fund (referred to as the "asset size peer group"); (iii) total expense comparisons of each fund relative to funds and classes in the mapped group that have a similar load structure to the fund (referred to as the "similar load structure group"); and (iv) total expense comparisons of each fund relative to funds and classes in the similar load structure group that are similar in size and management fee structure to the fund (referred to as the "total expense asset size peer group"). The total expense asset size peer group comparison excludes performance adjustments and fund-paid 12b-1 fees to eliminate variability in fee structures.
The information provided to the Board indicated that each fund's management fee rate ranked below the competitive median of the mapped group for the 12-month period ended September 30, 2023 and below the competitive median of the asset size peer group for the 12-month period ended September 30, 2023. Further, the information provided to the Board indicated that the total expense ratio of each fund ranked below the competitive median of the similar sales load structure group for the 12-month period ended September 30, 2023 and below the competitive median of the total expense asset size peer group for the 12-month period ended September 30, 2023.
Fees Charged to Other Clients. The Board also considered fee structures applicable to clients of Fidelity and Geode, such as other funds advised or subadvised by Fidelity or Geode, pension plan clients, and other institutional clients with similar mandates. The Board noted that a joint ad hoc committee created by it and the boards of other Fidelity funds periodically reviews and compares Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds and also noted the most recent findings of the committee. The Board noted that the committee's review included a consideration of the differences in services provided, fees charged, and costs incurred, as well as competition in the markets serving the different categories of clients.
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered. Further based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that each fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and servicing each fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationships with each fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
A public accounting firm has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. The engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of certain fund profitability information and its conformity to established allocation methodologies. After considering the reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's and Geode's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's fund business (i.e., fall-out benefits) as well as cases where Fidelity's and Geode's affiliates may benefit from the funds' business. The Board considered areas where potential indirect benefits to the Fidelity funds from their relationships with Fidelity may exist. The Board's consideration of these matters was informed by the findings of a joint ad hoc committee created by it and the boards of other Fidelity funds to evaluate potential fall-out benefits.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and was satisfied that the profitability was not excessive.
The Board also considered information regarding the profitability of Geode's relationship with each fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board recognized that, due to each fund's current contractual arrangements, its expense ratio will not decline if the fund's operating costs decrease as assets grow, or rise as assets decrease. The Board also noted that a committee created by it and the boards of other Fidelity funds periodically analyzes whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board concluded, taking into account the analysis of the committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including, but not limited to: (i) fund flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds; (ii) the operation of performance fees and the rationale for implementing performance fees on certain categories of funds but not others; (iii) Fidelity's pricing philosophy compared to competitors; (iv) fund profitability methodology and data; (v) evaluation of competitive fund data and peer group classifications and fee and expense comparisons; (vi) the management fee and expense structures for different funds and classes and information about the differences between various fee and expense structures; (vii) the variable management fee implemented for certain funds effective March 1, 2024; and (viii) information regarding other accounts managed by Fidelity and the funds' sub-advisory arrangements.
Conclusion. Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board, including the Independent Trustees, concluded that the advisory and sub-advisory fee arrangements are fair and reasonable in light of all of the surrounding circumstances and that each fund's Advisory Contracts should be renewed through May 31, 2025.
1.9885304.106
IHD-IVE-ANN-1224
Item 8.
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
See Item 7.
Item 9.
Proxy Disclosures for Open-End Management Investment Companies
See Item 7.
Item 10.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
See Item 7.
Item 11.
Statement Regarding Basis for Approval of Investment Advisory Contract
See Item 7.
Item 12.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 13.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 14.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 15.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 16.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust’s internal control over financial reporting.
Item 17.
Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 18.
Recovery of Erroneously Awarded Compensation
(a)
Not applicable.
(b)
Not applicable.
Item 19.
Exhibits
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Covington Trust
|
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer (Principal Executive Officer) |
|
|
Date: | December 20, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
By: | /s/Stacie M. Smith |
| Stacie M. Smith |
| President and Treasurer (Principal Executive Officer) |
|
|
Date: | December 20, 2024 |
|
By: | /s/Stephanie Caron |
| Stephanie Caron |
| Chief Financial Officer (Principal Financial Officer) |
|
|
Date: | December 20, 2024 |
