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)
Marc Bryant, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant’s telephone number, including area code: 617-563-7000
Date of fiscal year end: July 31
Date of reporting period: July 31, 2016
Item 1. | Reports to Stockholders |
Fidelity® MSCI Consumer Discretionary Index ETF
Fidelity MSCI Consumer Staples Index ETF
Fidelity MSCI Energy Index ETF
Fidelity MSCI Financials Index ETF
Fidelity MSCI Health Care Index ETF
Fidelity MSCI Industrials Index ETF
Fidelity MSCI Information Technology Index ETF
Fidelity MSCI Materials Index ETF
Fidelity MSCI Real Estate Index ETF
Fidelity MSCI Telecommunication Services Index ETF
Fidelity MSCI Utilities Index ETF
Annual Report
July 31, 2016
Contents
Market Recap | 3 | A review of what happened in markets during the period. | ||||
Performance and Management’s Discussion of Fund Performance | 4 | How each fund has done over time, the Portfolio Manager’s review of each fund’s performance and a summary of each fund’s holdings. | ||||
Shareholder Expense Example | 26 | An example of shareholder expenses. | ||||
Investments | 28 | A complete list of each fund’s investments with their market values. | ||||
Financial Statements | 70 | Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. | ||||
Notes | 93 | Notes to the financial statements. | ||||
Report of Independent Registered Public Accounting Firm | 98 | |||||
Premium/Discount Analysis | 99 | Information regarding each fund’s NAV and market price. | ||||
Trustees and Officers | 103 | |||||
Distributions | 108 | |||||
Board Approval of Investment Advisory Contracts and Management Fees | 109 |
To view a fund’s proxy voting guidelines and proxy voting record for the 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 MSCI, and MSCI 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 limited relationship MSCI has with Fidelity 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.
© 2016 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-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund’s Forms N-Q 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 on Fidelity’s web site at http://www.fidelity.com, 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.
Annual Report | 2 |
U.S. equities gained modestly for the year ending July 31, 2016, overcoming persistent concern about global economic growth, uncertainty regarding U.S. monetary policy and the U.K.’s late-June vote to leave the European Union, dubbed Brexit. The S&P 500® index rose 5.61%, with larger-cap, value-oriented stocks and defensive sectors shining brightest. Volatility peaked in the early weeks of 2016, as continued oil-price weakness and U.S.-dollar strength pushed the S&P 500® to its worst January since 2009. Markets then rallied beginning in February amid U.S. job gains, a broad rally in energy and materials markets, global economic stimulus, and perceived softening of monetary policy by the U.S. Federal Reserve. The June 23 Brexit vote surprised markets and resulted in a sharp two-day decline for stocks, followed by a rebound as investor sentiment shifted and remained positive through July 31. For the year, dividend-rich telecom services (+26%), utilities (+23%) and consumer staples (+12%) led the way amid strong investor demand for yield. Industrials and technology (+10%) also outperformed, as did materials (+8%) despite a weak commodities environment overall. Conversely, a strong period for real estate stocks couldn’t keep financials (-4%) from losing ground, as low interest rates continued to squeeze bank profits.
3 | Annual Report |
Fidelity® MSCI Consumer Discretionary Index ETF
The information provided in the tables below shows you the performance of Fidelity® MSCI Consumer Discretionary Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit fidelity.com/etfs/sector-etfs/overview or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate; therefore, you may have a gain or loss when you sell your shares.
Fiscal Periods Ended July 31, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Consumer Discretionary Index ETF – NAV | 1.25% | 10.34% | ||||||
Fidelity MSCI Consumer Discretionary Index ETF – Market Price | 1.12% | 10.35% | ||||||
MSCI USA IMI Consumer Discretionary Index | 1.34% | 10.49% | ||||||
S&P 500 Index | 5.61% | 10.52% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity MSCI Consumer Discretionary Index ETF and the fund’s benchmarks, assuming consistent performance over the periods shown, based on the cumulative return and the length of the period. This information represents returns as of the end of the fund’s fiscal period.
Periods Ended June 30, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Consumer Discretionary Index ETF – NAV | 0.22% | 8.74% | ||||||
Fidelity MSCI Consumer Discretionary Index ETF – Market Price | 0.12% | 8.70% | ||||||
MSCI USA IMI Consumer Discretionary Index | 0.34% | 8.89% | ||||||
S&P 500 Index | 3.99% | 9.39% |
This information shows the returns of the fund and its indices for different time periods through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
The fund’s expense ratio is 0.084%. Expense ratio is the total annual operating expense ratio from the most recent prospectus. A fund’s net expenses paid may be different. Please refer to the most recent prospectus for more information on a fund’s expenses.
A | From October 21, 2013. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Consumer Discretionary Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Consumer Discretionary Index and the S&P 500 Index performed over the same period.
Annual Report | 4 |
Fidelity® MSCI Consumer Discretionary Index ETF
Management’s Discussion of Fund Performance
For the 12 months ending July 31, 2016, the exchange-traded fund’s (ETF) net asset value gained 1.25%, roughly in line with the 1.34% advance of the MSCI USA IMI Consumer Discretionary Index. The ETF’s market price returned 1.12% over the same time frame, while the broad-market S&P 500® index rose 5.61%. Consumer discretionary stocks trailed the S&P 500® largely because seasonal sales were hurt by a relatively mild winter. Additionally, investors favored traditionally defensive, dividend-rich groups over economically sensitive sectors like consumer discretionary. In terms of industries, department stores (-36%) and movies & entertainment (-16%) were among the biggest laggards. From the latter group, the stock of media stalwart Walt Disney (-19%) was hampered early in the year by concerns about loss of subscribers at sports network ESPN and a lack of catalysts following its blockbuster release of “Star Wars: The Force Awakens.” In May, the firm missed quarterly earnings expectations for the first time in five years. Conversely, internet retail (+22%) and home improvement retail (+20%) were positive standouts. Individual outperformers included e-commerce giant Amazon.com (+43%). The stock popped in late April after the firm announced quarterly earnings that came in well ahead of analyst estimates, and marked its fourth straight quarter of profit.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or BlackRock Fund Advisors (the ETF’s subadviser) or any other person in the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and BlackRock disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary
Top Ten Stocks as of July 31, 2016 | ||||
% of fund’s net assets | ||||
Amazon.com, Inc. | 10.1 | |||
Home Depot, Inc. | 5.8 | |||
Comcast Corp. Class A | 5.4 | |||
The Walt Disney Co. | 4.9 | |||
McDonald’s Corp. | 3.5 | |||
Starbucks Corp. | 2.9 | |||
NIKE, Inc. Class B | 2.5 | |||
Lowe’s Companies, Inc. | 2.5 | |||
priceline.com, Inc. | 2.2 | |||
Time Warner, Inc. | 2.0 | |||
|
| |||
41.8 | ||||
|
|
Industries as of July 31, 2016 |
* | Includes short-term investments and net other assets. |
5 | Annual Report |
Fidelity® MSCI Consumer Staples Index ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® MSCI Consumer Staples Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit fidelity.com/etfs/sector-etfs/overview or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate; therefore, you may have a gain or loss when you sell your shares.
Fiscal Periods Ended July 31, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Consumer Staples Index ETF – NAV | 11.18% | 13.11% | ||||||
Fidelity MSCI Consumer Staples Index ETF – Market Price | 11.11% | 13.08% | ||||||
MSCI USA IMI Consumer Staples Index | 11.40% | 13.29% | ||||||
S&P 500 Index | 5.61% | 10.52% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity MSCI Consumer Staples Index ETF and the fund’s benchmarks, assuming consistent performance over the periods shown, based on the cumulative return and the length of the period. This information represents returns as of the end of the fund’s fiscal period.
Periods Ended June 30, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Consumer Staples Index ETF – NAV | 17.27% | 13.71% | ||||||
Fidelity MSCI Consumer Staples Index ETF – Market Price | 17.22% | 13.74% | ||||||
MSCI USA IMI Consumer Staples Index | 17.53% | 13.91% | ||||||
S&P 500 Index | 3.99% | 9.39% |
This information shows the returns of the fund and its indices for different time periods through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
The fund’s expense ratio is 0.084%. Expense ratio is the total annual operating expense ratio from the most recent prospectus. A fund’s net expenses paid may be different. Please refer to the most recent prospectus for more information on a fund’s expenses.
A | From October 21, 2013. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Consumer Staples Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Consumer Staples Index and the S&P 500 Index performed over the same period.
Annual Report | 6 |
Fidelity® MSCI Consumer Staples Index ETF
Management’s Discussion of Fund Performance
For the 12 months ending July 31, 2016, the exchange-traded fund’s (ETF) net asset value gained 11.18%, roughly in line with the 11.40% advance of the MSCI USA IMI Consumer Staples Index. The ETF’s market price returned 11.11% over the same time frame, while the broad-market S&P 500® index rose 5.61%. Consumer staples stocks outpaced the S&P 500®, as demand for more-stable investments supported traditionally defensive sectors. Staples firms boasted strong fundamentals, attracting investors. Rising wages and low inflation also buoyed the sector’s relative performance. In addition, late-cycle indicators appeared to rise in the U.S. – an environment in which the consumer staples sector tends to outperform. Most of the index’s industry components achieved positive returns, including standouts food distributors (+39%), tobacco (+25%) and distillers & vintners (+21%). Among individual stocks, personal and health care products giant Procter & Gamble (+15%) and Altria Group (+29%) – one of the world’s biggest tobacco and cigarette makers – outperformed, as investors remained attracted to their high dividend yields. The only industries to decline were drug retail (-17%) food retail (-10%), hampered in part by drugstore operator CVS Health (-16%) and retail chain Kroger (-12%), the latter of which fell after outperforming in 2015.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or BlackRock Fund Advisors (the ETF’s subadviser) or any other person in the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and BlackRock disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary
Top Ten Stocks as of July 31, 2016 | ||||
% of fund’s net assets | ||||
The Procter & Gamble Co. | 11.1 | |||
The Coca-Cola Co. | 8.6 | |||
PepsiCo, Inc. | 7.6 | |||
Philip Morris International, Inc. | 7.5 | |||
Altria Group, Inc. | 6.4 | |||
Wal-Mart Stores, Inc. | 5.6 | |||
CVS Health Corp. | 4.6 | |||
Costco Wholesale Corp. | 3.5 | |||
Walgreens Boots Alliance, Inc. | 3.5 | |||
Mondelez International, Inc. Class A | 3.3 | |||
|
| |||
61.7 | ||||
|
|
Industries as of July 31, 2016 |
* | Includes short-term investments and net other assets. |
7 | Annual Report |
Fidelity® MSCI Energy Index ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® MSCI Energy Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit fidelity.com/etfs/sector-etfs/overview or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate; therefore, you may have a gain or loss when you sell your shares.
Fiscal Periods Ended July 31, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Energy Index ETF – NAV | -0.75% | -7.34% | ||||||
Fidelity MSCI Energy Index ETF – Market Price | -0.90% | -7.37% | ||||||
MSCI USA IMI Energy Index | -0.62% | -7.26% | ||||||
S&P 500 Index | 5.61% | 10.52% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity MSCI Energy Index ETF and the fund’s benchmarks, assuming consistent performance over the periods shown, based on the cumulative return and the length of the period. This information represents returns as of the end of the fund’s fiscal period.
Periods Ended June 30, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Energy Index ETF – NAV | -7.49% | -6.88% | ||||||
Fidelity MSCI Energy Index ETF – Market Price | -7.50% | -6.90% | ||||||
MSCI USA IMI Energy Index | -7.36% | -6.80% | ||||||
S&P 500 Index | 3.99% | 9.39% |
This information shows the returns of the fund and its indices for different time periods through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
The fund’s expense ratio is 0.084%. Expense ratio is the total annual operating expense ratio from the most recent prospectus. A fund’s net expenses paid may be different. Please refer to the most recent prospectus for more information on a fund’s expenses.
A | From October 21, 2013. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Energy Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Energy Index and the S&P 500 Index performed over the same period.
Annual Report | 8 |
Fidelity® MSCI Energy Index ETF
Management’s Discussion of Fund Performance
For the 12 months ending July 31, 2016, the exchange-traded fund’s (ETF) net asset value returned -0.75%, roughly in line with the -0.62% return of the MSCI USA IMI Energy Index. The ETF’s market price posted a -0.90% return over the same time frame, while the broad-market S&P 500® index added 5.61%. It was a volatile period for energy stocks, which remained under pressure amid a two-year collapse in crude oil prices that extended into early 2016. Conditions later improved as unexpected production outages and stimulated demand contributed to a rally in oil prices through period end. Still, most major industries in the MSCI sector index lost ground for the 12 months, including oil & gas storage & transportation (-29%), refining & marketing (-17%), exploration & production (-6%), and equipment & services (-5%). Conversely, the sector was helped by a solid gain in integrated oil & gas (+17%), as energy investors were drawn to the defensive characteristics of the index’s largest industry the past 12 months. Integrated oil companies and index heavyweights Exxon Mobil (+16%) and Chevron (+21%) were by far the biggest individual contributors. On the downside were pipeline firms Kinder Morgan (-39%), which in December announced plans to slash its annual dividend, and Williams Companies (-49%), which struggled amid a debt-rating cut and a failed merger.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or BlackRock Fund Advisors (the ETF’s subadviser) or any other person in the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and BlackRock disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary
Top Ten Stocks as of July 31, 2016 | ||||
% of fund’s net assets | ||||
Exxon Mobil Corp. | 23.3 | |||
Chevron Corp. | 13.2 | |||
Schlumberger Ltd. | 7.7 | |||
Occidental Petroleum Corp. | 3.9 | |||
ConocoPhillips | 3.5 | |||
EOG Resources, Inc. | 3.1 | |||
Kinder Morgan, Inc. | 2.7 | |||
Halliburton Co. | 2.6 | |||
Phillips 66 | 2.5 | |||
Anadarko Petroleum Corp. | 1.9 | |||
|
| |||
64.4 | ||||
|
|
Industries as of July 31, 2016 |
9 | Annual Report |
Fidelity® MSCI Financials Index ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® MSCI Financials Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit fidelity.com/etfs/sector-etfs/overview or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate; therefore, you may have a gain or loss when you sell your shares.
Fiscal Periods Ended July 31, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Financials Index ETF – NAV | -1.49% | 7.18% | ||||||
Fidelity MSCI Financials Index ETF – Market Price | -1.49% | 7.18% | ||||||
MSCI USA IMI Financials Index | -1.41% | 7.30% | ||||||
S&P 500 Index | 5.61% | 10.52% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity MSCI Financials Index ETF and the fund’s benchmarks, assuming consistent performance over the periods shown, based on the cumulative return and the length of the period. This information represents returns as of the end of the fund’s fiscal period.
Periods Ended June 30, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Financials Index ETF – NAV | -2.42% | 5.92% | ||||||
Fidelity MSCI Financials Index ETF – Market Price | -2.66% | 5.86% | ||||||
MSCI USA IMI Financials Index | -2.32% | 6.03% | ||||||
S&P 500 Index | 3.99% | 9.39% |
This information shows the returns of the fund and its indices for different time periods through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
The fund’s expense ratio is 0.084%. Expense ratio is the total annual operating expense ratio from the most recent prospectus. A fund’s net expenses paid may be different. Please refer to the most recent prospectus for more information on a fund’s expenses.
A | From October 21, 2013. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Financials Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Financials Index and the S&P 500 Index performed over the same period.
Annual Report | 10 |
Fidelity® MSCI Financials Index ETF
Management’s Discussion of Fund Performance
For the 12 months ending July 31, 2016, the exchange-traded fund’s (ETF) net asset value returned -1.49%, roughly in line with the -1.41% return of the MSCI USA Financials IMI Index. The ETF’s market price returned -1.49% over the same time frame, while the broad-based S&P 500® index gained 5.61%. Sluggish global economic growth and uncertainty following the U.K.’s late-June vote to exit the European Union kept interest rates low worldwide the past year, hurting diversified banks and regional banks, together about one-third of the MSCI sector benchmark this period. Diversified banks Citigroup (-25%), Wells Fargo (-15%) and Bank of America (-18%) were the biggest laggards. Elsewhere, investment banking & brokerage stocks returned -21%, as mergers and acquisitions, initial public offerings, and new equity and debt issuance slowed. Market volatility and concern about new fiduciary regulations pressured asset management & custody banks (-11%), while worry about higher credit losses hindered consumer finance stocks (-14%). Conversely, real estate investment trusts (REITs) – about 24% of the sector benchmark this period – generally gained, as their stable revenue and dividend income attracted investors. Standouts included retail REIT Simon Property Group (+25%) and specialized REIT American Tower (+24%). The more defensive property & casualty insurance (+10%) and insurance brokers (+9%) segments also were strong.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or BlackRock Fund Advisors (the ETF subadviser) or any other person in the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and BlackRock disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: On September 1, 2016, real estate became a standalone sector under the S&P and MSCI Global Industry Classification Standard, used as the basis for many equity market indices. With this change, the structure of the fund’s benchmark was modified to exclude real estate as an industry group from the financials sector, with the exception of mortgage-related REITs.
Investment Summary
Top Ten Stocks as of July 31, 2016 | ||||
% of fund’s net assets | ||||
JPMorgan Chase & Co. | 6.0 | |||
Wells Fargo & Co. | 5.9 | |||
Berkshire Hathaway, Inc. Class B | 4.4 | |||
Bank of America Corp. | 3.8 | |||
Citigroup, Inc. | 3.3 | |||
US Bancorp | 1.9 | |||
Simon Property Group, Inc. | 1.8 | |||
American International Group, Inc. | 1.6 | |||
The Goldman Sachs Group, Inc. | 1.5 | |||
Chubb Ltd. | 1.5 | |||
|
| |||
31.7 | ||||
|
|
Industries as of July 31, 2016 |
* | Includes short-term investments and net other assets. |
11 | Annual Report |
Fidelity® MSCI Health Care Index ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® MSCI Health Care Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit fidelity.com/etfs/sector-etfs/overview or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate; therefore, you may have a gain or loss when you sell your shares.
Fiscal Periods Ended July 31, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Health Care Index ETF – NAV | -2.73% | 15.35% | ||||||
Fidelity MSCI Health Care Index ETF – Market Price | -2.86% | 15.33% | ||||||
MSCI USA IMI Health Care Index | -2.65% | 15.50% | ||||||
S&P 500 Index | 5.61% | 10.52% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity MSCI Health Care Index ETF and the fund’s benchmarks, assuming consistent performance over the periods shown, based on the cumulative return and the length of the period. This information represents returns as of the end of the fund’s fiscal period.
Periods Ended June 30, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Health Care Index ETF – NAV | -5.14% | 13.61% | ||||||
Fidelity MSCI Health Care Index ETF – Market Price | -5.15% | 13.59% | ||||||
MSCI USA IMI Health Care Index | -5.09% | 13.77% | ||||||
S&P 500 Index | 3.99% | 9.39% |
This information shows the returns of the fund and its indices for different time periods through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
The fund’s expense ratio is 0.084%. Expense ratio is the total annual operating expense ratio from the most recent prospectus. A fund’s net expenses paid may be different. Please refer to the most recent prospectus for more information on a fund’s expenses.
A | From October 21, 2013. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Health Care Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Health Care Index and the S&P 500 Index performed over the same period.
Annual Report | 12 |
Fidelity® MSCI Health Care Index ETF
Management’s Discussion of Fund Performance
For the 12 months ending July 31, 2016, the exchange-traded fund’s (ETF) net asset value returned -2.73%, roughly in line with the -2.65% return of the MSCI USA IMI Health Care Index. The market price of the ETF returned -2.86% over the same time frame, while the broad-market S&P 500® index gained 5.61%. Health care stocks trailed the broad market, as the group sharply pulled back after multiyear gains and increasing concerns about drug pricing and global macroeconomic instability. The sector gained back some ground later in the period, however, as investors were drawn to the group’s solid fundamentals and attractive valuations. Late-cycle indicators also rose in the U.S. – an environment in which health care tends to outperform. Industry laggards included health care facilities (-22%) and health care services (-10%). Index heavyweight biotechnology (-18%) also underperformed, including Gilead Sciences (-31%). The stock fell on concerns about increased competition and expectations for slowing growth for the firm’s hepatitis C treatments. Conversely, health care equipment (+13%) had the strongest result. This included device maker Medtronic (+14%), which acquired Lazarus Effect, a developer of vascular devices to remove blood clots, and said it expected to launch more than 80 new products and boost operating margins over the next three years.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or BlackRock Fund Advisors (the ETF’s subadviser) or any other person in the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and BlackRock disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary
Top Ten Stocks as of July 31, 2016 | ||||
% of fund’s net assets | ||||
Johnson & Johnson | 10.3 | |||
Pfizer, Inc. | 6.8 | |||
Merck & Co., Inc. | 4.8 | |||
UnitedHealth Group, Inc. | 4.0 | |||
Amgen, Inc. | 3.8 | |||
Bristol-Myers Squibb Co. | 3.7 | |||
Medtronic PLC | 3.7 | |||
Gilead Sciences, Inc. | 3.2 | |||
AbbVie, Inc. | 3.2 | |||
Allergan PLC | 3.0 | |||
|
| |||
46.5 | ||||
|
|
Industries as of July 31, 2016 |
* | Includes short-term investments and net other assets. |
13 | Annual Report |
Fidelity® MSCI Industrials Index ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® MSCI Industrials Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit fidelity.com/etfs/sector-etfs/overview or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate; therefore, you may have a gain or loss when you sell your shares.
Fiscal Periods Ended July 31, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Industrials Index ETF – NAV | 9.41% | 8.42% | ||||||
Fidelity MSCI Industrials Index ETF – Market Price | 9.52% | 8.47% | ||||||
MSCI USA IMI Industrials Index | 9.58% | 8.56% | ||||||
S&P 500 Index | 5.61% | 10.52% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity MSCI Industrials Index ETF and the fund’s benchmarks, assuming consistent performance over the periods shown, based on the cumulative return and the length of the period. This information represents returns as of the end of the fund’s fiscal period.
Periods Ended June 30, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Industrials Index ETF – NAV | 5.30% | 7.26% | ||||||
Fidelity MSCI Industrials Index ETF – Market Price | 5.04% | 7.20% | ||||||
MSCI USA IMI Industrials Index | 5.42% | 7.38% | ||||||
S&P 500 Index | 3.99% | 9.39% |
This information shows the returns of the fund and its indices for different time periods through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
The fund’s expense ratio is 0.084%. Expense ratio is the total annual operating expense ratio from the most recent prospectus. A fund’s net expenses paid may be different. Please refer to the most recent prospectus for more information on a fund’s expenses.
A | From October 21, 2013. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Industrials Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Industrials Index and the S&P 500 Index performed over the same period.
Annual Report | 14 |
Fidelity® MSCI Industrials Index ETF
Management’s Discussion of Fund Performance
For the 12 months ending July 31, 2016, the exchange-traded fund’s (ETF) net asset value gained 9.41%, roughly in line with the 9.58% advance of the MSCI USA IMI Industrials Index. The ETF’s market price rose 9.52% over the same time frame, while the broad-market S&P 500® index returned 5.61%. The industrials sector experienced considerable volatility during the year, as concerns about slowing economic growth in China and plummeting crude oil prices triggered periodic bouts of selling. Within the sector, industrial conglomerates (+21%) delivered standout performance, bolstered by General Electric (+23%) and 3M (+21%). Investors were somewhat defensive during the year, preferring these larger, more-diversified companies. Also performing well was aerospace & defense (+12%), the largest subindustry in the MSCI index. Major defense contractors Lockheed Martin (26%), Raytheon (+30%) and Northrop Grumman (+27%) benefited from strong international sales and improving prospects for U.S. defense spending. Industrial machinery (+11%) further bolstered returns. Conversely, transportation stocks struggled amid continued sluggish global economic growth and rebounding energy prices in the period’s second half. Here, railroads (-1%), airlines (-8%) and trucking (-9%) all lagged. Air freight & logistics (+2%) also underperformed, partly reflecting results from FedEx (-4%).
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or BlackRock Fund Advisors (the ETF’s subadviser) or any other person in the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and BlackRock disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary
Top Ten Stocks as of July 31, 2016 | ||||
% of fund’s net assets | ||||
General Electric Co. | 12.6 | |||
3M Co. | 4.7 | |||
United Technologies Corp. | 3.7 | |||
Honeywell International, Inc. | 3.7 | |||
The Boeing Co. | 3.7 | |||
Union Pacific Corp. | 3.4 | |||
United Parcel Service, Inc. Class B | 3.2 | |||
Lockheed Martin Corp. | 3.0 | |||
Caterpillar, Inc. | 2.1 | |||
FedEx Corp. | 1.8 | |||
|
| |||
41.9 | ||||
|
|
Industries as of July 31, 2016 |
* | Includes short-term investments and net other assets. |
15 | Annual Report |
Fidelity® MSCI Information Technology Index ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® MSCI Information Technology Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit fidelity.com/etfs/sector-etfs/overview or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate; therefore, you may have a gain or loss when you sell your shares.
Fiscal Periods Ended July 31, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Information Technology Index ETF – NAV | 8.41% | 13.88% | ||||||
Fidelity MSCI Information Technology Index ETF – Market Price | 8.41% | 13.90% | ||||||
MSCI USA IMI Information Technology Index | 8.48% | 13.98% | ||||||
S&P 500 Index | 5.61% | 10.52% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity MSCI Information Technology Index ETF and the fund’s benchmarks, assuming consistent performance over the periods shown, based on the cumulative return and the length of the period. This information represents returns as of the end of the fund’s fiscal period.
Periods Ended June 30, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Information Technology Index ETF – NAV | 2.89% | 11.25% | ||||||
Fidelity MSCI Information Technology Index ETF – Market Price | 2.63% | 11.17% | ||||||
MSCI USA IMI Information Technology Index | 2.95% | 11.35% | ||||||
S&P 500 Index | 3.99% | 9.39% |
This information shows the returns of the fund and its indices for different time periods through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
The fund’s expense ratio is 0.084%. Expense ratio is the total annual operating expense ratio from the most recent prospectus. A fund’s net expenses paid may be different. Please refer to the most recent prospectus for more information on a fund’s expenses.
A | From October 21, 2013. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Information Technology Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Information Technology Index and the S&P 500 Index performed over the same period.
Annual Report | 16 |
Fidelity® MSCI Information Technology Index ETF
Management’s Discussion of Fund Performance
For the 12 months ending July 31, 2016, the exchange-traded fund’s (ETF) net asset value gained 8.41%, roughly in line with the 8.48% advance of the MSCI USA IMI Information Technology Index. The ETF’s market price rose 8.41% over the same time frame, while the broad-market S&P 500® index returned 5.61%. The tech sector experienced considerable volatility during the year, as concerns about slowing economic growth in China and plummeting crude oil prices triggered periodic bouts of selling. Within the sector, a number of key index groups fared well, including internet software & services (+18%), which was lifted by social network firm Facebook (+32%) and Alphabet (+22%), parent of online search engine giant Google. Semiconductors (+21%) outperformed, bolstered by chipmakers Intel (+25%), Texas Instruments (+43%) and NVIDIA (+190%). Industry consolidation and a greater focus on profitability helped chip companies this period. Systems software (+15%), aided by key component Microsoft (+25%), enjoyed success. Conversely, disappointing smartphone sales hampered the results of index heavyweight Apple (-13%), which weighed on the technology hardware, storage & peripherals segment (-9%). Electronic equipment & instruments (-4%), a minor index component, had the only other negative return, while data processing & outsourced services (+6%), although positive, also underperformed.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or BlackRock Fund Advisors (the ETF’s subadviser) or any other person in the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and BlackRock disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary
Top Ten Stocks as of July 31, 2016 | ||||
% of fund’s net assets | ||||
Apple, Inc. | 12.6 | |||
Microsoft Corp. | 9.3 | |||
Facebook, Inc. Class A | 6.2 | |||
Alphabet, Inc. Class C | 5.2 | |||
Alphabet, Inc. Class A | 5.0 | |||
Intel Corp. | 3.6 | |||
Cisco Systems, Inc. | 3.3 | |||
Visa, Inc. Class A | 3.3 | |||
International Business Machines Corp. | 3.2 | |||
Oracle Corp. | 2.8 | |||
|
| |||
54.5 | ||||
|
|
Industries as of July 31, 2016 |
* | Includes short-term investments and net other liabilities. |
17 | Annual Report |
Fidelity® MSCI Materials Index ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® MSCI Materials Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit fidelity.com/etfs/sector-etfs/overview or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate; therefore, you may have a gain or loss when you sell your shares.
Fiscal Periods Ended July 31, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Materials Index ETF – NAV | 9.28% | 5.77% | ||||||
Fidelity MSCI Materials Index ETF – Market Price | 9.40% | 5.78% | ||||||
MSCI USA IMI Materials Index | 9.44% | 5.85% | ||||||
S&P 500 Index | 5.61% | 10.52% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity MSCI Materials Index ETF and the fund’s benchmarks, assuming consistent performance over the periods shown, based on the cumulative return and the length of the period. This information represents returns as of the end of the fund’s fiscal period.
Periods Ended June 30, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Materials Index ETF – NAV | -1.64% | 3.85% | ||||||
Fidelity MSCI Materials Index ETF – Market Price | -1.79% | 3.80% | ||||||
MSCI USA IMI Materials Index | -1.52% | 3.93% | ||||||
S&P 500 Index | 3.99% | 9.39% |
This information shows the returns of the fund and its indices for different time periods through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
The fund’s expense ratio is 0.084%. Expense ratio is the total annual operating expense ratio from the most recent prospectus. A fund’s net expenses paid may be different. Please refer to the most recent prospectus for more information on a fund’s expenses.
A | From October 21, 2013. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Materials Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Materials Index and the S&P 500 Index performed over the same period.
Annual Report | 18 |
Fidelity® MSCI Materials Index ETF
Management’s Discussion of Fund Performance
For the 12 months ending July 31, 2016, the exchange-traded fund’s (ETF) net asset value gained 9.28%, roughly in line with the 9.44% advance of the MSCI USA IMI Materials Index. The ETF’s market price rose 9.40% over the same time frame, while the broad-market S&P 500® index returned 5.61%. Like the broader market, the materials sector experienced considerable volatility during the year, notably in the third quarter of 2015 and again at the beginning of 2016, as concerns about slowing economic growth in China and plummeting crude-oil prices triggered periodic bouts of selling. However, stock prices recovered in both instances along with stabilizing fundamentals. Following a sharp but brief sell-off after the U.K.’s June 23 decision to leave the European Union, share prices once again rebounded to close near the period’s high-water mark. Within the materials sector, relatively small industries silver (+259%) and gold (+139%) were standout performers. Volatility in the broader market and concern about global economic growth sent investors scurrying to precious metals due to their perception as “safe haven” investments. Two beneficiaries were gold miner Newmont Mining (+153%) and Royal Gold (70%), which acquires and manages royalty interests in the precious-metals area. Steel (+28%) also outperformed, aided by reductions in production capacity and higher U.S. tariffs on Chinese steel. Here, one noteworthy performer was Nucor (+25%). Another strong-performing index segment was construction materials (+28%), with aggregates suppliers Vulcan Materials (+35%) and Martin Marietta Materials (+30%) posting healthy advances. Conversely, the weakest index group was fertilizers & agricultural chemicals (-11%), which was hampered by lower prices for agricultural commodities. Consequently, demand for fertilizer components suffered, leading to significant declines for the shares of CF Industries Holdings (-56%) and Mosaic (-35%). Commodity chemicals (-10%) also struggled amid lower prices for crude oil and natural gas for much of the period. LyondellBasell Industries
(-18%) was a notable laggard in this segment.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or BlackRock Fund Advisors (the ETF’s subadviser) or any other person in the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and BlackRock disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary
Top Ten Stocks as of July 31, 2016 | ||||
% of fund’s net assets | ||||
EI du Pont de Nemours & Co. | 7.9 | |||
The Dow Chemical Co. | 7.9 | |||
Monsanto Co. | 6.2 | |||
Praxair, Inc. | 4.4 | |||
Ecolab, Inc. | 4.1 | |||
Air Products & Chemicals, Inc. | 4.0 | |||
PPG Industries, Inc. | 3.7 | |||
LyondellBasell Industries N.V. Class A | 3.6 | |||
The Sherwin-Williams Co. | 3.1 | |||
Newmont Mining Corp. | 3.1 | |||
|
| |||
48.0 | ||||
|
|
Industries as of July 31, 2016 |
19 | Annual Report |
Fidelity® MSCI Real Estate Index ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® MSCI Real Estate Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit fidelity.com/etfs/sector-etfs/overview or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate; therefore, you may have a gain or loss when you sell your shares.
Fiscal Periods Ended July 31, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Real Estate Index ETF – NAV | 19.29% | 8.35% | ||||||
Fidelity MSCI Real Estate Index ETF – Market Price | 19.36% | 8.46% | ||||||
MSCI USA IMI Real Estate Index | 19.54% | 8.37% | ||||||
S&P 500 Index | 5.61% | 7.30% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity MSCI Real Estate Index ETF and the fund’s benchmarks, assuming consistent performance over the periods shown, based on the cumulative return and the length of the period. This information represents returns as of the end of the fund’s fiscal period.
Periods Ended June 30, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Real Estate Index ETF – NAV | 20.09% | 5.93% | ||||||
Fidelity MSCI Real Estate Index ETF – Market Price | 20.12% | 5.95% | ||||||
MSCI USA IMI Real Estate Index | 20.43% | 5.94% | ||||||
S&P 500 Index | 3.99% | 5.02% |
This information shows the returns of the fund and its indices for different time periods through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
The fund’s expense ratio is 0.084%. Expense ratio is the total annual operating expense ratio from the most recent prospectus. A fund’s net expenses paid may be different. Please refer to the most recent prospectus for more information on a fund’s expenses.
A | From February 2, 2015. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Real Estate Index ETF – NAV on February 2, 2015, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Real Estate Index and the S&P 500 Index performed over the same period.
Annual Report | 20 |
Fidelity® MSCI Real Estate Index ETF
Management’s Discussion of Fund Performance
For the 12 months ending July 31, 2016, the exchange-traded fund’s (ETF) net asset value gained 19.29%, roughly in line with the 19.54% advance of the MSCI USA IMI Real Estate Index. The ETF’s market price rose 19.36% over the same time frame, while the broad-market S&P 500® index returned 5.61%. In a generally strong performance environment for REITs (real estate investment trusts), industrial REITs, led by Prologis (+40%), performed especially well, benefiting from increased demand for warehouse space amid continued growth in e-commerce. The biggest performance contribution came from mall owner and operator Simon Property Group (+25%), the largest allocation in the index. Other meaningful contributors included American Tower (+24%), which owns communications-related properties; data-center operators Equinix (+42%) and Digital Realty Trust (+69%); and health care REIT Ventas (+38%). Individual detractors, which were fewer and farther between, were led by several real estate services companies: Jones Lang LaSalle (-38%), CBRE Group (-25%) and Realogy Holdings (-32%). Hotels also struggled this period amid increased supply in certain high-demand markets; in this group, Pebblebrook Hotel Trust (-24%) weighed most on performance here.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or BlackRock Fund Advisors (the ETF’s subadviser) or any other person in the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and BlackRock disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Note to shareholders: On September 1, 2016, real estate became a standalone sector under the S&P and MSCI Global Industry Classification Standard, the basis for many equity-market indices. With this change, the structure of the fund’s benchmark was modified to exclude mortgage-related REITs.
Investment Summary
Top Ten Stocks as of July 31, 2016 | ||||
% of fund’s net assets | ||||
Simon Property Group, Inc. | 6.5 | |||
American Tower Corp. | 4.5 | |||
Public Storage | 3.2 | |||
Crown Castle International Corp. | 3.0 | |||
Prologis, Inc. | 2.6 | |||
Welltower, Inc. | 2.6 | |||
Weyerhaeuser Co. | 2.4 | |||
Equinix, Inc. | 2.4 | |||
Ventas, Inc. | 2.4 | |||
AvalonBay Communities, Inc. | 2.3 | |||
|
| |||
31.9 | ||||
|
|
Industries as of July 31, 2016 |
21 | Annual Report |
Fidelity® MSCI Telecommunication Services Index ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® MSCI Telecommunication Services Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit fidelity.com/etfs/sector-etfs/overview or call Fidelity. The performance data featured represents past performance which is no guarantee of future results. Investment return and principal value will fluctuate; therefore, you may have a gain or loss when you sell your shares.
Fiscal Periods Ended July 31, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Telecommunication Services Index ETF – NAV | 22.36% | 11.78% | ||||||
Fidelity MSCI Telecommunication Services Index ETF – Market Price | 22.48% | 11.82% | ||||||
MSCI USA IMI Telecommunication Services 25/50 Index | 22.54% | 11.77% | ||||||
S&P 500 Index | 5.61% | 10.52% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity MSCI Telecommunication Services Index ETF and the fund’s benchmarks, assuming consistent performance over the periods shown, based on the cumulative return and the length of the period. This information represents returns as of the end of the fund’s fiscal period.
Periods Ended June 30, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Telecommunication Services Index ETF – NAV | 19.09% | 11.22% | ||||||
Fidelity MSCI Telecommunication Services Index ETF – Market Price | 18.78% | 11.12% | ||||||
MSCI USA IMI Telecommunication Services 25/50 Index | 19.29% | 11.21% | ||||||
S&P 500 Index | 3.99% | 9.39% |
This information shows the returns of the fund and its indices for different time periods through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
The fund’s expense ratio is 0.084%. Expense ratio is the total annual operating expense ratio from the most recent prospectus. A fund’s net expenses paid may be different. Please refer to the most recent prospectus for more information on a fund’s expenses.
A | From October 21, 2013. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Telecommunication Services Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Telecommunication Services 25/50 Index and the S&P 500 Index performed over the same period.
Annual Report | 22 |
Fidelity® MSCI Telecommunication Services Index ETF
Management’s Discussion of Fund Performance
For the 12 months ending July 31, 2016, the exchange-traded fund’s (ETF) net asset value gained 22.36%, roughly in line with the 22.54% advance of the MSCI USA IMI Telecommunication Services 25/50 Index. The ETF’s market price gained 22.48% over the same time frame, while the broad-market S&P 500® index returned 5.61%. In a low interest-rate and dividend-seeking investment environment, telecommunication services was among the best-performing sectors in the S&P 500 for the one-year period. Integrated telecommunication services, the largest subindustry, comprising 66% of the index, anchored results. Here, AT&T (+31%) and Verizon Communications (+24%), two of the index’s largest components, boasted high dividend yields and were the biggest contributors to performance. The wireless telecommunication services group (+23%) also helped, led by Shenandoah Telecom (+138%) and ORBCOMM (+71%), both of which were buoyed by strategic acquisitions during the period. Sprint (+82%) also contributed, as it continued to gain subscribers, closing in on the top four wireless providers. Individual stocks that weighed most on performance included NII Holdings (-60%) – owner of Brazilian wireless telecom company Nextel – and alternative carriers pdvWireless (-22%), Globalstar (-49%) and Lumos Networks (-16%).
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or BlackRock Fund Advisors (the ETF’s subadviser) or any other person in the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and BlackRock disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary
Top Ten Stocks as of July 31, 2016 | ||||
% of fund’s net assets | ||||
AT&T, Inc. | 23.3 | |||
Verizon Communications, Inc. | 23.1 | |||
CenturyLink, Inc. | 4.2 | |||
SBA Communications Corp. Class A | 3.9 | |||
Level 3 Communications, Inc. | 3.9 | |||
T-Mobile US, Inc. | 3.8 | |||
Sprint Corp. | 3.2 | |||
Shenandoah Telecommunications Co. | 2.4 | |||
Frontier Communications Corp. | 2.2 | |||
Cincinnati Bell, Inc. | 2.0 | |||
|
| |||
72.0 | ||||
|
|
Industries as of July 31, 2016 |
* | Rounds to less than 0.1%. |
23 | Annual Report |
Fidelity® MSCI Utilities Index ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® MSCI Utilities Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. For month-end performance figures, please visit fidelity.com/etfs/sector-etfs/overview or call Fidelity. The performance data featured represents past performance, which is no guarantee of future results. Investment return and principal value will fluctuate; therefore, you may have a gain or loss when you sell your shares.
Fiscal Periods Ended July 31, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Utilities Index ETF – NAV | 23.56% | 15.29% | ||||||
Fidelity MSCI Utilities Index ETF – Market Price | 23.71% | 15.33% | ||||||
MSCI USA IMI Utilities Index | 23.77% | 15.47% | ||||||
S&P 500 Index | 5.61% | 10.52% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity MSCI Utilities Index ETF and the fund’s benchmarks, assuming consistent performance over the periods shown, based on the cumulative return and the length of the period. This information represents returns as of the end of the fund’s fiscal period.
Periods Ended June 30, 2016 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fundA | ||||||
Fidelity MSCI Utilities Index ETF – NAV | 31.53% | 16.16% | ||||||
Fidelity MSCI Utilities Index ETF – Market Price | 31.46% | 16.18% | ||||||
MSCI USA IMI Utilities Index | 31.74% | 16.34% | ||||||
S&P 500 Index | 3.99% | 9.39% |
This information shows the returns of the fund and its indices for different time periods through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
The fund’s expense ratio is 0.084%. Expense ratio is the total annual operating expense ratio from the most recent prospectus. A fund’s net expenses paid may be different. Please refer to the most recent prospectus for more information on a fund’s expenses.
A | From October 21, 2013. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Utilities Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Utilities Index and the S&P 500 Index performed over the same period.
Annual Report | 24 |
Fidelity® MSCI Utilities Index ETF
Management’s Discussion of Fund Performance
For the 12 months ending July 31, 2016, the exchange-traded fund’s (ETF) net asset value gained 23.56%, roughly in line with the 23.77% advance of the MSCI USA IMI Utilities Index. The ETF’s market price rose 23.71% over the same time frame, while the broad-market S&P 500® index returned 5.61%. In a dividend-seeking investment environment, utilities was among the best-performing sectors for the one-year period. Additionally, the low interest rate environment boosted utilities’ investor appeal. The two largest segments of the MSCI sector index – electric utilities (+25%) and multi-utilities (+24%), which combined represented about 86% of the total index weight – provided much of the sector’s strong return, buoyed by high dividends paid by the two groups’ mainly regulated companies. Top contributors were led by electric utilities NextEra Energy (+26%) – one of the index’s largest components – followed by Duke Energy (+21%) and Southern Company (+25%). These companies benefited from solid revenue from their regulated businesses, as well as the attractiveness of their consistent dividends. Conversely, independent power producers & energy traders (-20%) and renewable electricity (-19%) – among the index’s smallest segments – were the worst-performing groups for the 12-month period. The biggest negative impact came from independent power producer NRG Energy (-36%), which fell in line with other energy-related stocks. NRG also offers a minimal dividend, making it less attractive to investors during this volatile period. Calpine (-24%) and Dynegy (-41%) also weighed on performance.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or BlackRock Fund Advisors (the ETF’s subadviser) or any other person in the BlackRock organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and BlackRock disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Investment Summary
Top Ten Stocks as of July 31, 2016 | ||||
% of fund’s net assets | ||||
NextEra Energy, Inc. | 7.5 | |||
Duke Energy Corp. | 7.5 | |||
The Southern Co. | 6.2 | |||
Dominion Resources, Inc. | 5.9 | |||
Exelon Corp. | 4.3 | |||
American Electric Power Co., Inc. | 4.3 | |||
PG&E Corp. | 4.0 | |||
Sempra Energy | 3.3 | |||
PPL Corp. | 3.2 | |||
Edison International | 3.2 | |||
|
| |||
49.4 | ||||
|
|
Industries as of July 31, 2016 |
25 | Annual Report |
Shareholder Expense Example (Unaudited)
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2016 to July 31, 2016).
Actual Expenses
For each fund, the first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for each Fund under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period. In addition, each Fund, as a shareholder in the underlying money market fund, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying money market fund. These fees and expenses are not included in each Fund’s annualized expense ratio used to calculate the expense estimates in the table below.
Hypothetical Example for Comparison Purposes
For each fund, the second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, each Fund, as a shareholder in the underlying money market fund, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying money market fund. These fees and expenses are not included in each Fund’s annualized expense ratio used to calculate the expense estimates in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense RatioA | Beginning Account Value February 1, 2016 | Ending Account Value July 31, 2016 | Expenses Paid During PeriodB February 1, 2016 to July 31, 2016 | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | .12% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,114.20 | $ | 0.63 | D | |||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.27 | $ | 0.60 | D | |||||||||
Fidelity MSCI Consumer Staples Index ETF | .11% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,096.40 | $ | 0.57 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.32 | $ | 0.55 | ||||||||||
Fidelity MSCI Energy Index ETF | .12% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,171.40 | $ | 0.65 | D | |||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.27 | $ | 0.60 | D | |||||||||
Fidelity MSCI Financials Index ETF | .12% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,118.50 | $ | 0.63 | D | |||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.27 | $ | 0.60 | D | |||||||||
Fidelity MSCI Health Care Index ETF | .12% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,146.50 | $ | 0.64 | D | |||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.27 | $ | 0.60 | D | |||||||||
Fidelity MSCI Industrials Index ETF | .11% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,187.60 | $ | 0.60 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.32 | $ | 0.55 | ||||||||||
Fidelity MSCI Information Technology Index ETF | .11% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,137.30 | $ | 0.58 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.32 | $ | 0.55 |
Annual Report | 26 |
Annualized Expense RatioA | Beginning Account Value February 1, 2016 | Ending Account Value July 31, 2016 | Expenses Paid During PeriodB February 1, 2016 to July 31, 2016 | |||||||||||||
Fidelity MSCI Materials Index ETF | .11% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,284.70 | $ | 0.62 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.32 | $ | 0.55 | ||||||||||
Fidelity MSCI Real Estate Index ETF | .11% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,217.10 | $ | 0.61 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.32 | $ | 0.55 | ||||||||||
Fidelity MSCI Telecommunication Services Index ETF | .11% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,198.40 | $ | 0.60 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.32 | $ | 0.55 | ||||||||||
Fidelity MSCI Utilities Index ETF | .11% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,170.60 | $ | 0.59 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.32 | $ | 0.55 |
A | Annualized expense ratio reflects expenses net of applicable fee waivers. |
B | Expenses are equal to each Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period). |
C | 5% return per year before expenses. |
D | If fees and changes to the Fund’s contractual expenses effective July 1, 2016, had been in effect during the entire period, the annualized expense ratio and the expenses paid in the actual and hypothetical examples above would have been as shown in the table below: |
Annualized Expense Ratio | Expenses Paid | |||||||
Fidelity MSCI Consumer Discretionary Index ETF | .084 | % | ||||||
Actual | $ | 0.44 | ||||||
Hypothetical | $ | 0.42 | ||||||
Fidelity MSCI Energy Index ETF | .084 | % | ||||||
Actual | $ | 0.45 | ||||||
Hypothetical | $ | 0.42 | ||||||
Fidelity MSCI Financials Index ETF | .084 | % | ||||||
Actual | $ | 0.44 | ||||||
Hypothetical | $ | 0.42 | ||||||
Fidelity MSCI Health Care Index ETF | .084 | % | ||||||
Actual | $ | 0.45 | ||||||
Hypothetical | $ | 0.42 |
27 | Annual Report |
Fidelity MSCI Consumer Discretionary Index ETF
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
AUTO COMPONENTS – 3.6% |
| |||||||
Auto Parts & Equipment – 3.3% |
| |||||||
American Axle & Manufacturing Holdings, Inc. (a) | 6,210 | $ | 108,116 | |||||
Autoliv, Inc. | 7,650 | 809,370 | ||||||
BorgWarner, Inc. | 18,965 | 629,259 | ||||||
Cooper-Standard Holding, Inc. (a) | 1,097 | 96,591 | ||||||
Dana Holding Corp. | 13,061 | 178,152 | ||||||
Delphi Automotive PLC | 24,101 | 1,634,530 | ||||||
Dorman Products, Inc. (a) | 2,722 | 173,391 | ||||||
Drew Industries, Inc. | 2,028 | 185,785 | ||||||
Federal-Mogul Holdings Corp. | 3,096 | 27,369 | ||||||
Fox Factory Holding Corp. (a) | 1,950 | 37,420 | ||||||
Gentex Corp. | 24,964 | 441,114 | ||||||
Gentherm, Inc. (a) | 3,123 | 104,808 | ||||||
Johnson Controls, Inc. | 56,400 | 2,589,888 | ||||||
Lear Corp. | 6,495 | 736,858 | ||||||
Metaldyne Performance Group, Inc. | 1,414 | 22,468 | ||||||
Modine Manufacturing Co. (a) | 4,088 | 39,245 | ||||||
Motorcar Parts of America, Inc. (a) | 1,535 | 43,026 | ||||||
Standard Motor Products, Inc. | 1,791 | 75,114 | ||||||
Stoneridge, Inc. (a) | 2,242 | 37,397 | ||||||
Superior Industries International, Inc. | 1,997 | 61,028 | ||||||
Tenneco, Inc. (a) | 5,045 | 285,143 | ||||||
Tower International, Inc. | 1,863 | 42,998 | ||||||
Visteon Corp. | 3,375 | 236,554 | ||||||
|
| |||||||
8,595,624 | ||||||||
|
| |||||||
Tires & Rubber – 0.3% |
| |||||||
Cooper Tire & Rubber Co. | 4,770 | 157,362 | ||||||
The Goodyear Tire & Rubber Co. | 23,217 | 665,632 | ||||||
|
| |||||||
822,994 | ||||||||
|
| |||||||
TOTAL AUTO COMPONENTS |
| 9,418,618 | ||||||
|
| |||||||
AUTOMOBILES – 4.3% |
| |||||||
Automobile Manufacturers – 4.0% |
| |||||||
Ford Motor Co. | 321,965 | 4,076,077 | ||||||
General Motors Co. | 120,863 | 3,812,019 | ||||||
Tesla Motors, Inc. (a) | 8,619 | 2,023,655 | ||||||
Thor Industries, Inc. | 4,306 | 329,581 | ||||||
Winnebago Industries, Inc. | 2,296 | 54,553 | ||||||
|
| |||||||
10,295,885 | ||||||||
|
| |||||||
Motorcycle Manufacturers – 0.3% |
| |||||||
Harley-Davidson, Inc. | 15,956 | 844,392 | ||||||
|
| |||||||
TOTAL AUTOMOBILES |
| 11,140,277 | ||||||
|
| |||||||
DISTRIBUTORS – 1.1% |
| |||||||
Distributors – 1.1% |
| |||||||
Core-Mark Holding Co., Inc. | 3,978 | 194,763 | ||||||
Genuine Parts Co. | 12,998 | 1,328,915 | ||||||
LKQ Corp. (a) | 26,686 | 917,732 |
Shares | Value | |||||||
Pool Corp. | 3,639 | $ | 372,197 | |||||
Weyco Group, Inc. | 614 | 17,155 | ||||||
|
| |||||||
TOTAL DISTRIBUTORS |
| 2,830,762 | ||||||
|
| |||||||
DIVERSIFIED CONSUMER SERVICES – 1.2% |
| |||||||
Education Services – 0.5% |
| |||||||
American Public Education, Inc. (a) | 1,376 | 39,409 | ||||||
Apollo Group, Inc. Class A (non-vtg.) (a) | 8,806 | 79,166 | ||||||
Bridgepoint Education, Inc. (a) | 1,741 | 12,413 | ||||||
Bright Horizons Family Solutions, Inc. (a) | 3,911 | 262,311 | ||||||
Capella Education Co. | 1,083 | 64,839 | ||||||
Career Education Corp. (a) | 6,255 | 43,222 | ||||||
Chegg, Inc. (a) | 4,866 | 26,228 | ||||||
DeVry Education Group, Inc. | 5,104 | 113,666 | ||||||
Graham Holdings Co. Class B | 381 | 191,734 | ||||||
Grand Canyon Education, Inc. (a) | 3,815 | 160,459 | ||||||
Houghton Mifflin Harcourt Co. (a) | �� | 9,111 | 154,431 | |||||
K12, Inc. (a) | 3,262 | 40,384 | ||||||
Strayer Education, Inc. (a) | 958 | 43,800 | ||||||
|
| |||||||
1,232,062 | ||||||||
|
| |||||||
Specialized Consumer Services – 0.7% |
| |||||||
Carriage Services, Inc. | 1,422 | 34,569 | ||||||
H&R Block, Inc. | 20,611 | 490,336 | ||||||
LifeLock, Inc. (a) | 7,490 | 125,308 | ||||||
Regis Corp. (a) | 3,279 | 44,070 | ||||||
Service Corp. International | 16,963 | 470,214 | ||||||
ServiceMaster Global Holdings, Inc. (a) | 11,748 | 444,427 | ||||||
Sotheby’s | 4,295 | 139,115 | ||||||
Weight Watchers International, Inc. (a) | 2,334 | 27,844 | ||||||
|
| |||||||
1,775,883 | ||||||||
|
| |||||||
TOTAL DIVERSIFIED CONSUMER SERVICES |
| 3,007,945 | ||||||
|
| |||||||
HOTELS, RESTAURANTS & LEISURE – 15.6% |
| |||||||
Casinos & Gaming – 1.6% |
| |||||||
Boyd Gaming Corp. (a) | 7,197 | 141,133 | ||||||
Caesars Acquisition Co. Class A (a) | 4,333 | 46,623 | ||||||
Caesars Entertainment Corp. (a) | 4,279 | 29,525 | ||||||
Churchill Downs, Inc. | 1,144 | 150,013 | ||||||
Eldorado Resorts, Inc. (a) | 1,960 | 28,322 | ||||||
Isle of Capri Casinos, Inc. (a) | 2,250 | 42,142 | ||||||
Las Vegas Sands Corp. | 38,013 | 1,925,358 | ||||||
MGM Resorts International (a) | 39,366 | 943,997 | ||||||
Penn National Gaming, Inc. (a) | 6,131 | 92,088 | ||||||
Pinnacle Entertainment, Inc. (a) | 4,942 | 53,967 | ||||||
Scientific Games Corp. Class A (a) | 4,404 | 46,925 | ||||||
Wynn Resorts Ltd. | 7,074 | 692,898 | ||||||
|
| |||||||
4,192,991 | ||||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 3.3% |
| |||||||
Belmond Ltd. Class A (a) | 8,009 | 92,024 | ||||||
Carnival Corp. | 36,111 | 1,687,106 | ||||||
Choice Hotels International, Inc. | 3,235 | 156,218 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 28 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HOTELS, RESTAURANTS & LEISURE – continued |
| |||||||
Hotels, Resorts & Cruise Lines – continued |
| |||||||
Diamond Resorts International, Inc. (a) | 3,626 | $ | 109,433 | |||||
Extended Stay America, Inc. | 7,002 | 99,148 | ||||||
Hilton Worldwide Holdings, Inc. | 47,284 | 1,096,516 | ||||||
Interval Leisure Group, Inc. | 10,142 | 182,353 | ||||||
La Quinta Holdings, Inc. (a) | 8,322 | 102,943 | ||||||
Lindblad Expeditions Holdings, Inc. (a) | 1,794 | 17,832 | ||||||
Marcus Corp. | 1,461 | 32,361 | ||||||
Marriott International, Inc. Class A | 17,658 | 1,266,079 | ||||||
Marriott Vacations Worldwide Corp. | 2,127 | 162,290 | ||||||
Norwegian Cruise Line Holdings Ltd. (a) | 13,870 | 590,862 | ||||||
Royal Caribbean Cruises Ltd. | 15,084 | 1,092,685 | ||||||
Starwood Hotels & Resorts Worldwide, Inc. | 14,664 | 1,144,672 | ||||||
Wyndham Worldwide Corp. | 9,769 | 693,794 | ||||||
|
| |||||||
8,526,316 | ||||||||
|
| |||||||
Leisure Facilities – 0.4% |
| |||||||
ClubCorp Holdings, Inc. | 5,546 | 80,417 | ||||||
International Speedway Corp. Class A | 2,271 | 76,692 | ||||||
Intrawest Resorts Holdings, Inc. (a) | 1,055 | 15,340 | ||||||
Planet Fitness, Inc., Class A (a) | 2,255 | 46,228 | ||||||
SeaWorld Entertainment, Inc. | 5,726 | 88,180 | ||||||
Six Flags Entertainment Corp. | 6,447 | 363,546 | ||||||
Speedway Motorsports, Inc. | 1,091 | 19,278 | ||||||
Vail Resorts, Inc. | 3,150 | 450,670 | ||||||
|
| |||||||
1,140,351 | ||||||||
|
| |||||||
Restaurants – 10.3% |
| |||||||
Aramark | 20,043 | 718,541 | ||||||
Biglari Holdings, Inc. (a) | 101 | 41,926 | ||||||
BJ’s Restaurants, Inc. (a) | 1,676 | 65,096 | ||||||
Bloomin’ Brands, Inc. | 10,370 | 186,453 | ||||||
Bob Evans Farms, Inc. | 1,609 | 59,179 | ||||||
Bojangles’, Inc. (a) | 817 | 14,199 | ||||||
Brinker International, Inc. | 4,950 | 233,343 | ||||||
Buffalo Wild Wings, Inc. (a) | 1,629 | 273,607 | ||||||
Carrols Restaurant Group, Inc. (a) | 2,934 | 35,531 | ||||||
Chipotle Mexican Grill, Inc. (a) | 2,607 | 1,105,342 | ||||||
Chuys Holdings, Inc. (a) | 1,417 | 47,781 | ||||||
Cracker Barrel Old Country Store, Inc. | 1,671 | 263,032 | ||||||
Darden Restaurants, Inc. | 10,630 | 654,383 | ||||||
Dave & Buster’s Entertainment, Inc. (a) | 2,672 | 118,904 | ||||||
Del Frisco’s Restaurant Group, Inc. (a) | 2,011 | 30,004 | ||||||
Del Taco Restaurants, Inc. (a) | 3,290 | 34,578 | ||||||
Denny’s Corp. (a) | 6,680 | 74,549 | ||||||
DineEquity, Inc. | 1,460 | 118,800 | ||||||
Domino’s Pizza, Inc. | 4,368 | 643,406 | ||||||
Dunkin’ Brands Group, Inc. | 8,015 | 363,160 | ||||||
El Pollo Loco Holdings, Inc. (a) | 1,906 | 25,083 | ||||||
Fiesta Restaurant Group, Inc. (a) | 2,264 | 50,578 | ||||||
Jack in the Box, Inc. | 3,004 | 265,524 | ||||||
McDonald’s Corp. | 78,368 | 9,219,995 |
Shares | Value | |||||||
Noodles & Co. (a) | 1,214 | $ | 8,971 | |||||
Panera Bread Co. Class A (a) | 1,993 | 437,105 | ||||||
Papa John’s International, Inc. | 2,436 | 180,142 | ||||||
Popeyes Louisiana Kitchen, Inc. (a) | 1,961 | 112,326 | ||||||
Potbelly Corp. (a) | 1,635 | 21,304 | ||||||
Red Robin Gourmet Burgers, Inc. (a) | 1,182 | 57,161 | ||||||
Ruby Tuesday, Inc. (a) | 5,246 | 21,194 | ||||||
Ruth’s Hospitality Group, Inc. | 2,742 | 43,790 | ||||||
Shake Shack, Inc. Class A (a) | 755 | 30,208 | ||||||
Sonic Corp. | 4,229 | 113,802 | ||||||
Starbucks Corp. | 128,473 | 7,457,858 | ||||||
Texas Roadhouse, Inc. Class A | 5,752 | 271,609 | ||||||
The Cheesecake Factory, Inc. | 3,986 | 206,196 | ||||||
The Habit Restaurants, Inc. Class A (a) | 1,025 | 16,646 | ||||||
Wendy’s Co. | 18,787 | 181,482 | ||||||
Wingstop, Inc. | 1,219 | 31,694 | ||||||
Yum! Brands, Inc. | 35,542 | 3,178,166 | ||||||
Zoe’s Kitchen, Inc. (a) | 1,572 | 55,869 | ||||||
|
| |||||||
27,068,517 | ||||||||
|
| |||||||
TOTAL HOTELS, RESTAURANTS & LEISURE |
| 40,928,175 | ||||||
|
| |||||||
HOUSEHOLD DURABLES – 4.6% |
| |||||||
Consumer Electronics – 0.5% |
| |||||||
Garmin Ltd. | 9,931 | 539,551 | ||||||
GoPro, Inc. Class A (a) | 7,331 | 92,664 | ||||||
Harman International Industries, Inc. | 6,205 | 512,781 | ||||||
Universal Electronics, Inc. (a) | 1,278 | 98,841 | ||||||
|
| |||||||
1,243,837 | ||||||||
|
| |||||||
Home Furnishings – 0.9% |
| |||||||
Ethan Allen Interiors, Inc. | 2,175 | 75,538 | ||||||
La-Z-Boy, Inc. | 4,319 | 130,520 | ||||||
Leggett & Platt, Inc. | 11,752 | 617,803 | ||||||
Mohawk Industries, Inc. (a) | 5,449 | 1,138,514 | ||||||
Tempur Sealy International, Inc. (a) | 5,402 | 408,553 | ||||||
|
| |||||||
2,370,928 | ||||||||
|
| |||||||
Homebuilding – 1.7% |
| |||||||
Beazer Homes U.S.A., Inc. (a) | 2,842 | 27,255 | ||||||
CalAtlantic Group, Inc. | 6,866 | 248,618 | ||||||
Cavco Industries, Inc. (a) | 767 | 76,224 | ||||||
Century Communities, Inc. (a) | 1,370 | 24,249 | ||||||
D.R. Horton, Inc. | 30,584 | 1,005,602 | ||||||
Green Brick Partners, Inc. (a) | 1,407 | 9,933 | ||||||
Hovnanian Enterprises, Inc. Class A (a) | 10,004 | 18,407 | ||||||
Installed Building Products, Inc. (a) | 1,640 | 58,761 | ||||||
KB Home | 6,619 | 103,918 | ||||||
Lennar Corp. Class A | 15,703 | 734,900 | ||||||
LGI Homes, Inc. (a) | 1,253 | 43,016 | ||||||
M.D.C. Holdings, Inc. | 3,313 | 87,198 | ||||||
M/I Homes, Inc. (a) | 2,099 | 47,332 | ||||||
Meritage Homes Corp. (a) | 3,348 | 121,834 | ||||||
NVR, Inc. (a) | 322 | 549,010 |
See accompanying notes which are an integral part of the financial statements.
29 | Annual Report |
Fidelity MSCI Consumer Discretionary Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HOUSEHOLD DURABLES – continued |
| |||||||
Homebuilding – continued |
| |||||||
PulteGroup, Inc. | 27,425 | $ | 580,862 | |||||
Taylor Morrison Home Corp. Class A (a) | 2,856 | 46,410 | ||||||
Toll Brothers, Inc. (a) | 14,052 | 393,597 | ||||||
TopBuild Corp. (a) | 3,273 | 123,589 | ||||||
TRI Pointe Group, Inc. (a) | 13,518 | 181,817 | ||||||
WCI Communities, Inc. (a) | 1,982 | 33,357 | ||||||
William Lyon Homes Class A (a) | 2,223 | 38,569 | ||||||
|
| |||||||
4,554,458 | ||||||||
|
| |||||||
Household Appliances – 0.6% |
| |||||||
Helen of Troy Ltd. (a) | 2,444 | 243,447 | ||||||
iRobot Corp. (a) | 2,265 | 85,889 | ||||||
NACCO Industries, Inc. Class A | 340 | 19,132 | ||||||
Whirlpool Corp. | 6,699 | 1,288,619 | ||||||
|
| |||||||
1,637,087 | ||||||||
|
| |||||||
Housewares & Specialties – 0.9% |
| |||||||
CSS Industries, Inc. | 715 | 18,812 | ||||||
Libbey, Inc. | 1,908 | 35,660 | ||||||
Newell Rubbermaid, Inc. | 38,491 | 2,019,238 | ||||||
Tupperware Brands Corp. | 4,395 | 275,479 | ||||||
|
| |||||||
2,349,189 | ||||||||
|
| |||||||
TOTAL HOUSEHOLD DURABLES |
| 12,155,499 | ||||||
|
| |||||||
INTERNET & CATALOG RETAIL – 15.3% |
| |||||||
Catalog Retail – 0.4% |
| |||||||
HSN, Inc. | 2,936 | 150,206 | ||||||
Liberty Interactive Corp. QVC Group Series A (a) | 37,749 | 1,012,051 | ||||||
|
| |||||||
1,162,257 | ||||||||
|
| |||||||
Internet Retail – 14.9% |
| |||||||
1-800-FLOWERS.com, Inc. Class A (a) | 2,176 | 19,867 | ||||||
Amazon.com, Inc. (a) | 34,787 | 26,396,723 | ||||||
Blue Nile, Inc. | 996 | 28,944 | ||||||
Duluth Holdings, Inc. Class B (a) | 592 | 14,682 | ||||||
Etsy, Inc. (a) | 5,258 | 52,895 | ||||||
Expedia, Inc. | 10,796 | 1,259,353 | ||||||
FTD Cos., Inc. (a) | 1,648 | 41,711 | ||||||
Groupon, Inc. Class A (a) | 37,535 | 180,919 | ||||||
Lands’ End, Inc. (a) | 1,489 | 21,159 | ||||||
Liberty Media Corp. Series A (a) | 11,799 | 444,940 | ||||||
Liberty TripAdvisor Holdings, Inc. | 5,926 | 140,268 | ||||||
Netflix, Inc. (a) | 37,229 | 3,397,146 | ||||||
NutriSystem, Inc. | 2,474 | 73,181 | ||||||
Overstock.com, Inc. (a) | 1,466 | 23,896 | ||||||
PetMed Express, Inc. | 1,814 | 37,604 | ||||||
priceline.com, Inc. (a) | 4,312 | 5,824,693 | ||||||
Shutterfly, Inc. (a) | 2,859 | 152,070 | ||||||
TripAdvisor, Inc. (a) | 10,397 | 727,478 |
Shares | Value | |||||||
Wayfair, Inc. Class A(a) | 2,389 | $ | 103,922 | |||||
|
| |||||||
38,941,451 | ||||||||
|
| |||||||
TOTAL INTERNET & CATALOG RETAIL |
| 40,103,708 | ||||||
|
| |||||||
LEISURE PRODUCTS – 1.3% |
| |||||||
Leisure Products – 1.3% |
| |||||||
Brunswick Corp. | 7,906 | 392,296 | ||||||
Callaway Golf Co. | 7,693 | 82,315 | ||||||
Hasbro, Inc. | 9,739 | 791,099 | ||||||
Mattel, Inc. | 29,616 | 988,582 | ||||||
Nautilus, Inc. (a) | 2,527 | 47,609 | ||||||
Polaris Industries, Inc. | 5,339 | 527,226 | ||||||
Smith & Wesson Holding Corp. (a) | 4,691 | 138,150 | ||||||
Sturm, Ruger & Co., Inc. | 1,615 | 109,820 | ||||||
Vista Outdoor, Inc. (a) | 5,371 | 268,818 | ||||||
|
| |||||||
TOTAL LEISURE PRODUCTS |
| 3,345,915 | ||||||
|
| |||||||
MEDIA – 22.7% |
| |||||||
Advertising – 1.0% |
| |||||||
Clear Channel Outdoor Holding, Inc. Class A | 2,823 | 19,733 | ||||||
Interpublic Group of Companies, Inc. | 35,034 | 807,884 | ||||||
MDC Partners, Inc. Class A | 4,276 | 54,562 | ||||||
National CineMedia, Inc. | 5,626 | 87,653 | ||||||
Omnicom Group, Inc. | 20,807 | 1,712,208 | ||||||
|
| |||||||
2,682,040 | ||||||||
|
| |||||||
Broadcasting – 1.7% |
| |||||||
CBS Corp. Class B (non-vtg.) | 36,621 | 1,912,349 | ||||||
Discovery Communications, Inc. | 12,986 | 325,819 | ||||||
Discovery Communications, Inc. Class C (non-vtg.) (a) | 20,856 | 511,806 | ||||||
E.W. Scripps Co. Class A (a) | 4,602 | 78,050 | ||||||
Entercom Communications Corp. Class A | 1,909 | 27,890 | ||||||
Entravision Communications Corp. Class A | 5,449 | 39,560 | ||||||
Gray Television, Inc. (a) | 5,779 | 57,212 | ||||||
Media General, Inc. (a) | 7,735 | 136,059 | ||||||
Nexstar Broadcasting Group, Inc. Class A | 2,713 | 137,142 | ||||||
Scripps Networks Interactive, Inc. Class A | 6,982 | 461,231 | ||||||
Sinclair Broadcast Group, Inc. Class A | 5,932 | 165,028 | ||||||
TEGNA, Inc. | 18,228 | 399,193 | ||||||
Tribune Media Co. Class A | 6,848 | 253,718 | ||||||
|
| |||||||
4,505,057 | ||||||||
|
| |||||||
Cable & Satellite – 9.7% |
| |||||||
AMC Networks, Inc. Class A (a) | 5,306 | 293,740 | ||||||
Cable One, Inc. | 435 | 227,888 | ||||||
Charter Communications, Inc. Class A (a) | 18,728 | 4,398,645 | ||||||
Comcast Corp. Class A | 211,471 | 14,221,425 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 30 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
MEDIA – continued |
| |||||||
Cable & Satellite – continued |
| |||||||
DISH Network Corp. Class A (a) | 19,654 | $ | 1,049,917 | |||||
Liberty Broadband Corp. Class A (a) | 2,256 | 141,699 | ||||||
Liberty Broadband Corp. Class C (a) | 6,131 | 388,154 | ||||||
Liberty Global PLC LiLAC Series C (a) | 9,810 | 343,350 | ||||||
Liberty Global PLC Series A (a) | 24,821 | 787,074 | ||||||
Liberty Global PLC Series C (a) | 54,221 | 1,678,140 | ||||||
Liberty SiriusXM Group Class A (a) | 8,022 | 286,786 | ||||||
Liberty SiriusXM Group Class C (a) | 17,475 | 615,994 | ||||||
Loral Space & Communications Ltd. (a) | 1,195 | 41,980 | ||||||
MSG Networks, Inc. (a) | 5,251 | 84,278 | ||||||
Sirius XM Holdings, Inc. (a) | 176,774 | 776,038 | ||||||
Starz – Liberty Capital Series A (a) | 7,447 | 225,123 | ||||||
|
| |||||||
25,560,231 | ||||||||
|
| |||||||
Movies & Entertainment – 9.7% |
| |||||||
AMC Entertainment Holdings, Inc. Class A | 1,863 | 54,809 | ||||||
Carmike Cinemas, Inc. (a) | 1,950 | 60,099 | ||||||
Cinemark Holdings, Inc. | 9,126 | 343,138 | ||||||
DreamWorks Animation SKG, Inc. Class A (a) | 6,550 | 268,353 | ||||||
Global Eagle Entertainment, Inc. (a) | 4,132 | 33,882 | ||||||
IMAX Corp. (a) | 5,551 | 175,356 | ||||||
Liberty Braves Group Class A (a) | 762 | 12,565 | ||||||
Liberty Braves Group Class C (a) | 2,773 | 44,313 | ||||||
Liberty Media Group Class A (a) | 2,029 | 46,058 | ||||||
Liberty Media Group Class C (a) | 4,385 | 98,312 | ||||||
Lions Gate Entertainment Corp. | 9,179 | 183,488 | ||||||
Live Nation Entertainment, Inc. (a) | 11,417 | 313,054 | ||||||
Regal Entertainment Group Class A | 7,435 | 174,871 | ||||||
The Madison Square Garden Co. (a) | 1,649 | 301,421 | ||||||
The Walt Disney Co. | 134,724 | 12,926,768 | ||||||
Time Warner, Inc. | 68,679 | 5,264,245 | ||||||
Twenty-First Century Fox, Inc. Class A | 97,390 | 2,594,470 | ||||||
Twenty-First Century Fox, Inc. Class B | 38,086 | 1,029,465 | ||||||
Viacom, Inc. Class B (non-vtg.) | 30,147 | 1,370,784 | ||||||
World Wrestling Entertainment, Inc. Class A | 2,922 | 57,710 | ||||||
|
| |||||||
25,353,161 | ||||||||
|
| |||||||
Publishing – 0.6% |
| |||||||
Gannett Co., Inc. | 9,634 | 122,930 | ||||||
John Wiley & Sons, Inc. Class A | 3,992 | 230,338 | ||||||
Meredith Corp. | 3,068 | 167,145 | ||||||
New Media Investment Group, Inc. | 3,962 | 69,969 | ||||||
News Corp. Class A | 33,036 | 428,477 | ||||||
Scholastic Corp. | 2,245 | 92,269 | ||||||
The New York Times Co. Class A | 11,145 | 144,662 | ||||||
Time, Inc. | 9,023 | 147,346 | ||||||
tronc, Inc. | 2,016 | 30,220 | ||||||
|
| |||||||
1,433,356 | ||||||||
|
| |||||||
TOTAL MEDIA |
| 59,533,845 | ||||||
|
|
Shares | Value | |||||||
MULTILINE RETAIL – 4.2% |
| |||||||
Department Stores – 1.0% |
| |||||||
Dillard’s, Inc. Class A | 1,841 | $ | 124,599 | |||||
J.C. Penney Co., Inc. (a) | 26,407 | 255,092 | ||||||
Kohl’s Corp. | 16,458 | 684,488 | ||||||
Macy’s, Inc. | 26,909 | 964,149 | ||||||
Nordstrom, Inc. | 11,287 | 499,224 | ||||||
Sears Holdings Corp. (a) | 2,305 | 35,520 | ||||||
|
| |||||||
2,563,072 | ||||||||
|
| |||||||
General Merchandise Stores – 3.2% |
| |||||||
Big Lots, Inc. | 4,355 | 231,599 | ||||||
Dollar General Corp. | 25,262 | 2,393,322 | ||||||
Dollar Tree, Inc. (a) | 20,405 | 1,964,797 | ||||||
Fred’s, Inc. Class A | 2,993 | 47,559 | ||||||
Ollie’s Bargain Outlet Holdings, Inc. (a) | 2,855 | 74,630 | ||||||
Target Corp. | 49,747 | 3,747,442 | ||||||
Tuesday Morning Corp. (a) | 4,035 | 31,836 | ||||||
|
| |||||||
8,491,185 | ||||||||
|
| |||||||
TOTAL MULTILINE RETAIL |
| 11,054,257 | ||||||
|
| |||||||
SPECIALTY RETAIL – 19.7% |
| |||||||
Apparel Retail – 4.7% |
| |||||||
Abercrombie & Fitch Co. Class A | 5,950 | 123,225 | ||||||
American Eagle Outfitters, Inc. | 15,936 | 285,573 | ||||||
Ascena Retail Group, Inc. (a) | 13,596 | 110,535 | ||||||
Burlington Stores, Inc. (a) | 6,592 | 504,354 | ||||||
Caleres, Inc. | 3,809 | 100,253 | ||||||
Chico’s FAS, Inc. | 11,386 | 136,746 | ||||||
Citi Trends, Inc. | 1,377 | 22,968 | ||||||
DSW, Inc. Class A | 6,464 | 156,817 | ||||||
Express, Inc. (a) | 6,524 | 97,599 | ||||||
Finish Line, Inc. Class A | 3,800 | 82,574 | ||||||
Foot Locker, Inc. | 11,908 | 709,955 | ||||||
Francescas Holdings Corp. (a) | 3,798 | 48,273 | ||||||
Gap, Inc. | 20,995 | 541,461 | ||||||
Genesco, Inc. (a) | 1,919 | 133,217 | ||||||
Guess?, Inc. | 5,511 | 81,122 | ||||||
L Brands, Inc. | 21,375 | 1,579,612 | ||||||
Ross Stores, Inc. | 35,160 | 2,173,943 | ||||||
Shoe Carnival, Inc. | 1,362 | 35,834 | ||||||
Stage Stores, Inc. | 2,884 | 17,102 | ||||||
Stein Mart, Inc. | 2,602 | 22,377 | ||||||
Tailored Brands, Inc. | 3,936 | 57,662 | ||||||
The Buckle, Inc. | 2,526 | 69,187 | ||||||
The Cato Corp. Class A | 2,235 | 79,946 | ||||||
The Children’s Place Retail Stores, Inc. | 1,763 | 147,352 | ||||||
TJX Companies, Inc. | 58,194 | 4,755,614 | ||||||
Urban Outfitters, Inc. (a) | 7,635 | 228,286 | ||||||
Zumiez, Inc. (a) | 1,696 | 28,798 | ||||||
|
| |||||||
12,330,385 | ||||||||
|
|
See accompanying notes which are an integral part of the financial statements.
31 | Annual Report |
Fidelity MSCI Consumer Discretionary Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
SPECIALTY RETAIL – continued |
| |||||||
Automotive Retail – 3.2% |
| |||||||
Advance Auto Parts, Inc. | 6,358 | $ | 1,079,970 | |||||
Asbury Automotive Group, Inc. (a) | 1,938 | 117,831 | ||||||
AutoNation, Inc. (a) | 6,494 | 346,455 | ||||||
AutoZone, Inc. (a) | 2,624 | 2,135,857 | ||||||
CarMax, Inc. (a) | 17,057 | 993,741 | ||||||
CST Brands, Inc. | 6,614 | 295,778 | ||||||
Group 1 Automotive, Inc. | 2,027 | 126,323 | ||||||
Lithia Motors, Inc. Class A | 2,018 | 174,133 | ||||||
Monro Muffler Brake, Inc. | 2,828 | 177,089 | ||||||
Murphy USA, Inc. (a) | 3,614 | 276,977 | ||||||
O’Reilly Automotive, Inc. (a) | 8,453 | 2,456,696 | ||||||
Penske Automotive Group, Inc. | 3,871 | 153,369 | ||||||
Sonic Automotive, Inc. Class A | 2,485 | 45,177 | ||||||
TravelCenters of America LLC (a) | 2,849 | 23,333 | ||||||
|
| |||||||
8,402,729 | ||||||||
|
| |||||||
Computer & Electronics Retail – 0.4% |
| |||||||
Best Buy Co., Inc. | 25,273 | 849,173 | ||||||
Conn’s, Inc. (a) | 1,538 | 10,935 | ||||||
GameStop Corp. Class A | 9,134 | 282,697 | ||||||
Rent-A-Center, Inc. | 4,479 | 48,373 | ||||||
|
| |||||||
1,191,178 | ||||||||
|
| |||||||
Home Improvement Retail – 8.3% |
| |||||||
Home Depot, Inc. | 110,204 | 15,234,601 | ||||||
Lowe’s Companies, Inc. | 79,095 | 6,507,936 | ||||||
Lumber Liquidators Holdings, Inc. (a) | 2,290 | 34,419 | ||||||
Tile Shop Holdings, Inc. (a) | 2,841 | 48,439 | ||||||
|
| |||||||
21,825,395 | ||||||||
|
| |||||||
Homefurnishing Retail – 0.6% |
| |||||||
Aarons, Inc. Class A | 5,798 | 138,862 | ||||||
Bed Bath & Beyond, Inc. | 14,175 | 637,166 | ||||||
Haverty Furniture Companies, Inc. | 1,612 | 29,709 | ||||||
Kirkland’s, Inc. (a) | 1,380 | 21,031 | ||||||
Mattress Firm Holding Corp. (a) | 1,508 | 44,999 | ||||||
Pier 1 Imports, Inc. | 7,483 | 38,313 | ||||||
Restoration Hardware Holdings, Inc. (a) | 3,241 | 99,855 | ||||||
Select Comfort Corp. (a) | 4,368 | 104,221 | ||||||
Williams-Sonoma, Inc. | 7,419 | 401,220 | ||||||
|
| |||||||
1,515,376 | ||||||||
|
| |||||||
Specialty Stores – 2.5% |
| |||||||
Barnes & Noble Education, Inc. (a) | 3,339 | 38,599 | ||||||
Barnes & Noble, Inc. | 5,236 | 68,487 | ||||||
Big 5 Sporting Goods Corp. | 1,668 | 17,614 | ||||||
Cabela’s, Inc. Class A (a) | 3,820 | 197,227 | ||||||
Dick’s Sporting Goods, Inc. | 7,829 | 401,549 | ||||||
Five Below, Inc. (a) | 4,772 | 243,420 | ||||||
GNC Holdings, Inc. Class A | 6,436 | 131,359 | ||||||
Hibbett Sports, Inc. (a) | 1,918 | 66,977 | ||||||
MarineMax, Inc. (a) | 2,229 | 45,026 | ||||||
Office Depot, Inc. (a) | 44,943 | 155,503 |
Shares | Value | |||||||
Outerwall, Inc. | 1,452 | $ | 76,462 | |||||
Party City Holdings, Inc. (a) | 2,595 | 41,572 | ||||||
Sally Beauty Holdings, Inc. (a) | 12,674 | 371,728 | ||||||
Signet Jewelers Ltd. | 6,581 | 578,536 | ||||||
Sportsman’s Warehouse Holdings, | 2,717 | 27,659 | ||||||
Staples, Inc. | 56,148 | 521,615 | ||||||
The Container Store Group, Inc. (a) | 1,625 | 8,986 | ||||||
The Michaels Cos., Inc. (a) | 8,953 | 236,001 | ||||||
Tiffany & Co., Inc. | 11,161 | 720,108 | ||||||
Tractor Supply Co. | 11,651 | 1,067,814 | ||||||
Ulta Salon, Cosmetics & Fragrance, | 5,264 | 1,375,009 | ||||||
Vitamin Shoppe, Inc. (a) | 2,125 | 62,177 | ||||||
Winmark Corp. | 189 | 19,008 | ||||||
|
| |||||||
6,472,436 | ||||||||
|
| |||||||
TOTAL SPECIALTY RETAIL |
| 51,737,499 | ||||||
|
| |||||||
TEXTILES, APPAREL & LUXURY GOODS – 6.3% |
| |||||||
Apparel, Accessories & Luxury Goods – 3.5% |
| |||||||
Carter’s, Inc. | 4,484 | 454,005 | ||||||
Coach, Inc. | 24,090 | 1,038,520 | ||||||
Columbia Sportswear Co. | 2,433 | 139,289 | ||||||
Fossil Group, Inc. (a) | 3,722 | 117,615 | ||||||
G-III Apparel Group Ltd. (a) | 3,617 | 144,789 | ||||||
Hanesbrands, Inc. | 34,016 | 906,867 | ||||||
Iconix Brand Group, Inc. (a) | 3,351 | 24,127 | ||||||
Kate Spade & Co. (a) | 11,137 | 241,562 | ||||||
lululemon athletica, Inc. (a) | 9,616 | 746,682 | ||||||
Michael Kors Holdings Ltd. (a) | 15,562 | 804,867 | ||||||
Movado Group, Inc. | 1,421 | 32,100 | ||||||
Oxford Industries, Inc. | 1,293 | 73,934 | ||||||
PVH Corp. | 7,119 | 719,446 | ||||||
Ralph Lauren Corp. | 5,034 | 493,785 | ||||||
Sequential Brands Group, Inc. (a) | 4,591 | 37,325 | ||||||
Tumi Holdings, Inc. (a) | 4,884 | 130,647 | ||||||
Under Armour, Inc. Class A (a) | 15,851 | 625,480 | ||||||
Under Armour, Inc. Class C (a) | 16,247 | 580,018 | ||||||
Vera Bradley, Inc. (a) | 1,657 | 24,126 | ||||||
VF Corp. | 29,654 | 1,851,299 | ||||||
|
| |||||||
9,186,483 | ||||||||
|
| |||||||
Footwear – 2.8% |
| |||||||
Crocs, Inc. (a) | 6,336 | 71,787 | ||||||
Deckers Outdoor Corp. (a) | 2,659 | 175,521 | ||||||
NIKE, Inc. Class B | 117,329 | 6,511,759 | ||||||
Skechers U.S.A., Inc. Class A (a) | 11,283 | 271,018 | ||||||
Steven Madden Ltd. (a) | 4,823 | 168,901 | ||||||
Wolverine World Wide, Inc. | 9,064 | 221,977 | ||||||
|
| |||||||
7,420,963 | ||||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 32 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
TEXTILES, APPAREL & LUXURY GOODS – continued |
| |||||||
Textiles – 0.0% |
| |||||||
Unifi, Inc. (a) | 1,310 | $ | 35,409 | |||||
|
| |||||||
TOTAL TEXTILES, APPAREL & LUXURY GOODS |
| 16,642,855 | ||||||
|
| |||||||
TOTAL COMMON STOCKS (Cost $269,318,847) |
| 261,899,355 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
Shares | Value | |||||||
SSgA US Treasury Money Market Fund, 0.11% (b) | 300,160 | $ | 300,160 | |||||
|
| |||||||
TOTAL INVESTMENT |
| 262,199,515 | ||||||
NET OTHER ASSETS |
| 121,992 | ||||||
|
| |||||||
NET ASSETS – 100% |
| $ | 262,321,507 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Other Information
The following is a summary of the inputs used, as of July 31, 2016, 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 in the table 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: | ||||||||||||||||
Common Stocks | $ | 261,899,355 | $ | 261,899,355 | $ | — | $ | — | ||||||||
Money Market Funds | 300,160 | 300,160 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 262,199,515 | $ | 262,199,515 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
33 | Annual Report |
Fidelity MSCI Consumer Staples Index ETF
Investments July 31, 2016
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
BEVERAGES – 21.2% | ||||||||
Brewers – 1.0% | ||||||||
Molson Coors Brewing Co. Class B | 25,933 | $ | 2,649,315 | |||||
The Boston Beer Co., Inc. Class A (a) | 1,354 | 247,620 | ||||||
|
| |||||||
2,896,935 | ||||||||
|
| |||||||
Distillers & Vintners – 2.0% | ||||||||
Brown-Forman Corp. Class B | 15,341 | 1,506,333 | ||||||
Constellation Brands, Inc. Class A | 24,212 | 3,986,021 | ||||||
MGP Ingredients, Inc. | 1,739 | 74,777 | ||||||
|
| |||||||
5,567,131 | ||||||||
|
| |||||||
Soft Drinks – 18.2% | ||||||||
Coca-Cola Bottling Co. Consolidated | 756 | 107,662 | ||||||
Dr Pepper Snapple Group, Inc. | 25,829 | 2,544,415 | ||||||
Monster Beverage Corp. (a) | 18,349 | 2,947,400 | ||||||
National Beverage Corp. (a) | 1,765 | 101,240 | ||||||
PepsiCo, Inc. | 198,412 | 21,611,035 | ||||||
The Coca-Cola Co. | 564,595 | 24,633,280 | ||||||
|
| |||||||
51,945,032 | ||||||||
|
| |||||||
TOTAL BEVERAGES |
| 60,409,098 | ||||||
|
| |||||||
FOOD & STAPLES RETAILING – 21.9% |
| |||||||
Drug Retail – 8.4% | ||||||||
CVS Health Corp. | 140,791 | 13,054,142 | ||||||
Rite Aid Corp. (a) | 145,114 | 1,015,798 | ||||||
Walgreens Boots Alliance, Inc. | 126,034 | 9,988,194 | ||||||
|
| |||||||
24,058,134 | ||||||||
|
| |||||||
Food Distributors – 1.7% | ||||||||
Performance Food Group Co. (a) | 5,288 | 145,103 | ||||||
SpartanNash Co. | 5,472 | 172,368 | ||||||
Sysco Corp. | 73,844 | 3,824,381 | ||||||
The Andersons, Inc. | 4,019 | 148,622 | ||||||
The Chefs’ Warehouse, Inc. (a) | 3,310 | 53,456 | ||||||
United Natural Foods, Inc. (a) | 7,104 | 355,058 | ||||||
|
| |||||||
4,698,988 | ||||||||
|
| |||||||
Food Retail – 2.6% | ||||||||
Casey’s General Stores, Inc. | 5,430 | 725,122 | ||||||
Ingles Markets, Inc. Class A | 1,876 | 72,845 | ||||||
Natural Grocers by Vitamin Cottage, Inc. (a) | 1,967 | 26,928 | ||||||
Smart & Final Stores, Inc. (a) | 4,701 | 64,827 | ||||||
Sprouts Farmers Market, Inc. (a) | 20,054 | 463,849 | ||||||
SUPERVALU, Inc. (a) | 38,651 | 188,617 | ||||||
The Kroger Co. | 127,431 | 4,356,866 | ||||||
Village Super Market, Inc. Class A | 1,324 | 41,891 | ||||||
Weis Markets, Inc. | 1,853 | 95,745 | ||||||
Whole Foods Market, Inc. | 44,868 | 1,367,577 | ||||||
|
| |||||||
7,404,267 | ||||||||
|
| |||||||
Hypermarkets & Super Centers – 9.2% |
| |||||||
Costco Wholesale Corp. | 60,448 | 10,108,114 | ||||||
PriceSmart, Inc. | 2,836 | 220,868 |
Shares | Value | |||||||
Wal-Mart Stores, Inc. | 219,972 | $ | 16,051,357 | |||||
|
| |||||||
26,380,339 | ||||||||
|
| |||||||
TOTAL FOOD & STAPLES RETAILING |
| 62,541,728 | ||||||
|
| |||||||
FOOD PRODUCTS – 20.4% | ||||||||
Agricultural Products – 2.4% | ||||||||
Archer-Daniels-Midland Co. | 81,973 | 3,695,343 | ||||||
Bunge Ltd. | 19,520 | 1,285,197 | ||||||
Darling Ingredients, Inc. (a) | 23,258 | 367,011 | ||||||
Fresh Del Monte Produce, Inc. | 4,761 | 270,663 | ||||||
Ingredion, Inc. | 9,956 | 1,326,537 | ||||||
|
| |||||||
6,944,751 | ||||||||
|
| |||||||
Packaged Foods & Meats – 18.0% |
| |||||||
Amplify Snack Brands, Inc. (a) | 5,256 | 74,950 | ||||||
B&G Foods, Inc. | 8,736 | 450,690 | ||||||
Blue Buffalo Pet Products, Inc. (a) | 9,827 | 252,357 | ||||||
Cal-Maine Foods, Inc. | 4,441 | 186,078 | ||||||
Calavo Growers, Inc. | 2,298 | 151,162 | ||||||
Campbell Soup Co. | 27,832 | 1,733,099 | ||||||
ConAgra Foods, Inc. | 56,847 | 2,658,166 | ||||||
Dean Foods Co. | 13,140 | 242,564 | ||||||
Farmer Bros Co. (a) | 1,471 | 45,116 | ||||||
Flowers Foods, Inc. | 26,780 | 492,484 | ||||||
Freshpet, Inc. (a) | 3,554 | 31,062 | ||||||
General Mills, Inc. | 81,616 | 5,867,374 | ||||||
Hormel Foods Corp. | 40,294 | 1,504,981 | ||||||
J&J Snack Foods Corp. | 2,134 | 259,516 | ||||||
John B Sanfilippo & Son, Inc. | 1,334 | 62,258 | ||||||
Kellogg Co. | 36,193 | 2,993,523 | ||||||
Lancaster Colony Corp. | 2,708 | 351,932 | ||||||
Landec Corp. (a) | 4,190 | 48,185 | ||||||
McCormick & Co., Inc. (non-vtg.) | 15,938 | 1,629,660 | ||||||
Mead Johnson Nutrition Co. | 25,711 | 2,293,421 | ||||||
Mondelez International, Inc. Class A | 215,656 | 9,484,551 | ||||||
Omega Protein Corp. (a) | 3,003 | 67,628 | ||||||
Pinnacle Foods, Inc. | 16,222 | 814,507 | ||||||
Post Holdings, Inc. (a) | 8,917 | 772,836 | ||||||
Sanderson Farms, Inc. | 2,904 | 254,361 | ||||||
Seaboard Corp. (a) | 43 | 125,990 | ||||||
Seneca Foods Corp. Class A (a) | 1,117 | 43,753 | ||||||
Snyders-Lance, Inc. | 10,769 | 368,946 | ||||||
The Hain Celestial Group, Inc. (a) | 14,349 | 757,484 | ||||||
The Hershey Co. | 20,428 | 2,262,605 | ||||||
The JM Smucker Co. | 16,498 | 2,543,332 | ||||||
The Kraft Heinz Co. | 83,429 | 7,207,431 | ||||||
The WhiteWave Foods Co. (a) | 24,393 | 1,353,568 | ||||||
Tootsie Roll Industries, Inc. | 2,926 | 108,642 | ||||||
TreeHouse Foods, Inc. (a) | 7,841 | 809,113 | ||||||
Tyson Foods, Inc. Class A | 40,383 | 2,972,189 | ||||||
|
| |||||||
51,275,514 | ||||||||
|
| |||||||
TOTAL FOOD PRODUCTS |
| 58,220,265 | ||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 34 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HOUSEHOLD PRODUCTS – 18.4% |
| |||||||
Household Products – 18.4% |
| |||||||
Central Garden and Pet Co. (a) | 1,526 | $ | 37,021 | |||||
Central Garden and Pet Co. Class A (a) | 4,952 | 112,856 | ||||||
Church & Dwight Co., Inc. | 17,914 | 1,759,871 | ||||||
Colgate-Palmolive Co. | 116,593 | 8,678,017 | ||||||
Energizer Holdings, Inc. | 8,513 | 438,675 | ||||||
HRG Group, Inc. (a) | 15,860 | 236,155 | ||||||
Kimberly-Clark Corp. | 49,633 | 6,429,955 | ||||||
Spectrum Brands Holdings, Inc. | 3,752 | 483,145 | ||||||
The Clorox Co. | 17,850 | 2,339,600 | ||||||
The Procter & Gamble Co. | 371,500 | 31,796,685 | ||||||
WD-40 Co. | 2,063 | 237,204 | ||||||
|
| |||||||
TOTAL HOUSEHOLD PRODUCTS |
| 52,549,184 | ||||||
|
| |||||||
PERSONAL PRODUCTS – 1.8% | ||||||||
Personal Products – 1.8% | ||||||||
Avon Products, Inc. | 62,330 | 253,683 | ||||||
Edgewell Personal Care Co. (a) | 8,175 | 691,687 | ||||||
Elizabeth Arden, Inc. (a) | 3,038 | 42,228 | ||||||
Herbalife Ltd. (a) | 9,691 | 659,085 | ||||||
Inter Parfums, Inc. | 2,643 | 86,003 | ||||||
Medifast, Inc. | 1,228 | 43,250 | ||||||
Natural Health Trends Corp. | 1,094 | 36,748 | ||||||
Nu Skin Enterprises, Inc. Class A | 7,852 | 419,297 | ||||||
Revlon, Inc. Class A (a) | 2,099 | 74,494 | ||||||
The Estee Lauder Cos., Inc. Class A | 30,579 | 2,840,789 | ||||||
USANA Health Sciences, Inc. (a) | 807 | 110,817 | ||||||
|
| |||||||
TOTAL PERSONAL PRODUCTS |
| 5,258,081 | ||||||
|
|
Shares | Value | |||||||
TOBACCO – 16.1% | ||||||||
Tobacco – 16.1% | ||||||||
Altria Group, Inc. | 268,766 | $ | 18,195,458 | |||||
Philip Morris International, Inc. | 212,679 | 21,323,197 | ||||||
Reynolds American, Inc. | 117,797 | 5,896,918 | ||||||
Universal Corp. | 3,132 | 185,759 | ||||||
Vector Group Ltd. | 13,070 | 288,716 | ||||||
|
| |||||||
TOTAL TOBACCO |
| 45,890,048 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 284,868,404 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
SSgA US Treasury Money Market Fund, 0.11% (b) | 279,881 | 279,881 | ||||||
|
| |||||||
TOTAL INVESTMENT |
| 285,148,285 | ||||||
NET OTHER ASSETS |
| 355,447 | ||||||
|
| |||||||
NET ASSETS – 100% |
| $ | 285,503,732 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Other Information
The following is a summary of the inputs used, as of July 31, 2016, 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 in the table 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: | ||||||||||||||||
Common Stocks | $ | 284,868,404 | $ | 284,868,404 | $ | — | $ | — | ||||||||
Money Market Funds | 279,881 | 279,881 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 285,148,285 | $ | 285,148,285 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
35 | Annual Report |
Fidelity MSCI Energy Index ETF
Investments July 31, 2016
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
ENERGY EQUIPMENT & SERVICES – 17.6% |
| |||||||
Oil & Gas Drilling – 2.0% |
| |||||||
Atwood Oceanics, Inc. | 25,970 | $ | 277,360 | |||||
Diamond Offshore Drilling, Inc. | 24,114 | 547,870 | ||||||
Ensco PLC Class A | 96,071 | 880,971 | ||||||
Helmerich & Payne, Inc. | 33,216 | 2,058,395 | ||||||
Nabors Industries Ltd. | 92,420 | 831,780 | ||||||
Noble Corp. PLC | 83,388 | 615,403 | ||||||
Parker Drilling Co. (a) | 63,794 | 132,054 | ||||||
Patterson-UTI Energy, Inc. | 47,757 | 926,008 | ||||||
Rowan Cos. PLC Class A | 40,538 | 617,799 | ||||||
Transocean Ltd. | 109,918 | 1,207,999 | ||||||
Transocean Partners LLC | 13,842 | 151,155 | ||||||
Unit Corp. (a) | 22,026 | 275,325 | ||||||
|
| |||||||
8,522,119 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services – 15.6% |
| |||||||
Archrock, Inc. | 28,931 | 257,775 | ||||||
Baker Hughes, Inc. | 124,623 | 5,960,718 | ||||||
Bristow Group, Inc. | 13,847 | 149,686 | ||||||
CARBO Ceramics, Inc. | 13,039 | 183,850 | ||||||
Core Laboratories N.V. | 13,235 | 1,545,980 | ||||||
Dril-Quip, Inc. (a) | 12,709 | 691,751 | ||||||
Exterran Corp. (a) | 16,833 | 214,116 | ||||||
Fairmount Santrol Holdings, Inc. (a) | 40,287 | 275,966 | ||||||
FMC Technologies, Inc. (a) | 70,314 | 1,784,569 | ||||||
Forum Energy Technologies, Inc. (a) | 22,996 | 375,525 | ||||||
Frank’s International N.V. | 17,203 | 211,941 | ||||||
Halliburton Co. | 255,198 | 11,141,945 | ||||||
Helix Energy Solutions Group, Inc. (a) | 40,842 | 324,286 | ||||||
Hornbeck Offshore Services, Inc. (a) | 9,829 | 78,435 | ||||||
Matrix Service Co. (a) | 13,092 | 216,935 | ||||||
McDermott International, Inc. (a) | 87,094 | 451,147 | ||||||
National Oilwell Varco, Inc. | 113,587 | 3,674,540 | ||||||
Natural Gas Services Group, Inc. (a) | 7,219 | 181,269 | ||||||
Newpark Resources, Inc. (a) | 39,316 | 248,477 | ||||||
Oceaneering International, Inc. | 31,965 | 891,184 | ||||||
Oil States International, Inc. (a) | 18,008 | 556,807 | ||||||
PHI, Inc. (non-vtg.) (a) | 6,929 | 133,868 | ||||||
RigNet, Inc. (a) | 11,121 | 132,896 | ||||||
RPC, Inc. (a) | 25,125 | 364,061 | ||||||
Schlumberger Ltd. | 411,718 | 33,151,533 | ||||||
SEACOR Holdings, Inc. (a) | 6,379 | 360,541 | ||||||
Superior Energy Services, Inc. | 49,885 | 796,664 | ||||||
Tesco Corp. | 26,390 | 174,438 | ||||||
TETRA Technologies, Inc. (a) | 40,924 | 245,953 | ||||||
Tidewater, Inc. | 14,910 | 63,666 | ||||||
US Silica Holdings, Inc. | 20,811 | 717,355 | ||||||
Weatherford International PLC (a) | 274,340 | 1,558,251 | ||||||
|
| |||||||
67,116,128 | ||||||||
|
| |||||||
TOTAL ENERGY EQUIPMENT & SERVICES |
| 75,638,247 | ||||||
|
|
Shares | Value | |||||||
OIL, GAS & CONSUMABLE FUELS – 82.3% |
| |||||||
Coal & Consumable Fuels – 0.3% |
| |||||||
CONSOL Energy, Inc. | 58,569 | $ | 1,135,067 | |||||
|
| |||||||
Integrated Oil & Gas – 40.5% |
| |||||||
Chevron Corp. | 556,369 | 57,016,695 | ||||||
Exxon Mobil Corp. | 1,125,083 | 100,076,133 | ||||||
Occidental Petroleum Corp. | 226,485 | 16,925,224 | ||||||
|
| |||||||
174,018,052 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 26.1% |
| |||||||
Anadarko Petroleum Corp. | 151,574 | 8,265,330 | ||||||
Antero Resources Corp. (a) | 48,151 | 1,261,075 | ||||||
Apache Corp. | 113,245 | 5,945,363 | ||||||
Bill Barrett Corp. (a) | 28,276 | 168,808 | ||||||
Cabot Oil & Gas Corp. | 138,737 | 3,422,642 | ||||||
California Resources Corp. | 19,583 | 200,922 | ||||||
Callon Petroleum Co. (a) | 42,661 | 485,909 | ||||||
Carrizo Oil & Gas, Inc. (a) | 19,005 | 623,364 | ||||||
Chesapeake Energy Corp. (a) | 192,979 | 1,045,946 | ||||||
Cimarex Energy Co. | 28,724 | 3,447,454 | ||||||
Cobalt International Energy, Inc. (a) | 99,975 | 148,963 | ||||||
Concho Resources, Inc. (a) | 38,810 | 4,820,202 | ||||||
ConocoPhillips | 366,810 | 14,973,184 | ||||||
Continental Resources, Inc. (a) | 29,524 | 1,300,532 | ||||||
Denbury Resources, Inc. | 120,403 | 349,169 | ||||||
Devon Energy Corp. | 137,843 | 5,276,630 | ||||||
Diamondback Energy, Inc. (a) | 23,775 | 2,087,207 | ||||||
Eclipse Resources Corp. (a) | 26,916 | 84,785 | ||||||
Energen Corp. | 30,557 | 1,447,791 | ||||||
EOG Resources, Inc. | 163,285 | 13,340,385 | ||||||
EQT Corp. | 51,633 | 3,761,980 | ||||||
EXCO Resources, Inc. (a) | 115,501 | 159,391 | ||||||
Gran Tierra Energy, Inc. (a) | 118,558 | 328,406 | ||||||
Gulfport Energy Corp. (a) | 39,284 | 1,142,772 | ||||||
Hess Corp. | 85,348 | 4,578,920 | ||||||
Jones Energy, Inc. Class A (a) | 7,032 | 26,018 | ||||||
Kosmos Energy Ltd. (a) | 61,098 | 339,094 | ||||||
Laredo Petroleum, Inc. (a) | 55,106 | 552,162 | ||||||
Marathon Oil Corp. | 248,949 | 3,395,664 | ||||||
Matador Resources Co. (a) | 29,080 | 613,297 | ||||||
Memorial Resource Development Corp. (a) | 29,930 | 448,351 | ||||||
Murphy Oil Corp. | 51,278 | 1,406,556 | ||||||
Newfield Exploration Co. (a) | 60,477 | 2,618,654 | ||||||
Noble Energy, Inc. | 128,955 | 4,606,273 | ||||||
Northern Oil and Gas, Inc. (a) | 37,585 | 148,837 | ||||||
Oasis Petroleum, Inc. (a) | 59,629 | 453,180 | ||||||
Parsley Energy, Inc. Class A (a) | 44,557 | 1,270,320 | ||||||
PDC Energy, Inc. (a) | 15,028 | 823,084 | ||||||
Pioneer Natural Resources Co. | 48,729 | 7,921,874 | ||||||
QEP Resources, Inc. | 74,929 | 1,363,708 | ||||||
Range Resources Corp. | 52,133 | 2,101,481 | ||||||
Rice Energy, Inc. (a) | 5,339 | 124,505 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 36 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
OIL, GAS & CONSUMABLE FUELS – continued |
| |||||||
Oil & Gas Exploration & Production – continued |
| |||||||
RSP Permian, Inc. (a) | 23,529 | $ | 845,868 | |||||
Sanchez Energy Corp. (a) | 9,716 | 61,599 | ||||||
SM Energy Co. | 23,434 | 635,764 | ||||||
Southwestern Energy Co. (a) | 147,138 | 2,145,272 | ||||||
Synergy Resources Corp. (a) | 67,396 | 438,748 | ||||||
Whiting Petroleum Corp. (a) | 60,485 | 445,774 | ||||||
WPX Energy, Inc. (a) | 105,446 | 1,053,406 | ||||||
|
| |||||||
112,506,619 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 7.5% |
| |||||||
Alon USA Energy, Inc. | 20,920 | 147,904 | ||||||
Clean Energy Fuels Corp. (a) | 48,868 | 146,115 | ||||||
CVR Energy, Inc. | 11,172 | 165,346 | ||||||
Delek US Holdings, Inc. | 21,838 | 273,412 | ||||||
Green Plains, Inc. | 14,497 | 328,792 | ||||||
HollyFrontier Corp. | 52,941 | 1,345,760 | ||||||
Marathon Petroleum Corp. | 158,376 | 6,238,431 | ||||||
Par Pacific Holdings, Inc. (a) | 11,804 | 177,060 | ||||||
PBF Energy, Inc. Class A | 32,781 | 732,328 | ||||||
Phillips 66 | 141,172 | 10,737,542 | ||||||
Renewable Energy Group, Inc. (a) | 20,275 | 197,681 | ||||||
REX American Resources Corp. (a) | 3,027 | 199,177 | ||||||
Tesoro Corp. | 36,488 | 2,778,561 | ||||||
Valero Energy Corp. | 140,399 | 7,340,060 | ||||||
Western Refining, Inc. | 29,744 | 620,162 | ||||||
World Fuel Services Corp. | 22,674 | 1,079,282 | ||||||
|
| |||||||
32,507,613 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 7.9% |
| |||||||
Cheniere Energy, Inc. (a) | 61,154 | 2,558,072 | ||||||
Enbridge Energy Management LLC (a) | 22,249 | 514,175 |
Shares | Value | |||||||
EnLink Midstream LLC | 21,571 | $ | 332,840 | |||||
Gener8 Maritime, Inc. (a) | 25,009 | 133,048 | ||||||
Kinder Morgan, Inc. | 563,802 | 11,462,095 | ||||||
ONEOK, Inc. | 63,886 | 2,861,454 | ||||||
Plains GP Holdings LP Class A | 82,689 | 878,157 | ||||||
SemGroup Corp. Class A | 18,158 | 525,856 | ||||||
Spectra Energy Corp. | 200,461 | 7,210,582 | ||||||
Tallgrass Energy GP LP | 17,147 | 399,696 | ||||||
Targa Resources Corp. | 49,662 | 1,850,406 | ||||||
The Williams Cos., Inc. | 213,868 | 5,126,416 | ||||||
|
| |||||||
33,852,797 | ||||||||
|
| |||||||
TOTAL OIL, GAS & CONSUMABLE FUELS |
| 354,020,148 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 429,658,395 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
SSgA US Treasury Money Market Fund, 0.11% (b) | 314,205 | 314,205 | ||||||
|
| |||||||
TOTAL INVESTMENT |
| 429,972,600 | ||||||
NET OTHER ASSETS |
| 66,550 | ||||||
|
| |||||||
NET ASSETS – 100% |
| $ | 430,039,150 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Other Information
The following is a summary of the inputs used, as of July 31, 2016, 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 in the table 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: | ||||||||||||||||
Common Stocks | $ | 429,658,395 | $ | 429,658,395 | $ | — | $ | — | ||||||||
Money Market Funds | 314,205 | 314,205 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 429,972,600 | $ | 429,972,600 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
37 | Annual Report |
Fidelity MSCI Financials Index ETF
Investments July 31, 2016
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
BANKS – 31.3% |
| |||||||
Diversified Banks – 21.1% |
| |||||||
Bank of America Corp. | 626,553 | $ | 9,078,753 | |||||
Citigroup, Inc. | 178,885 | 7,836,952 | ||||||
Comerica, Inc. | 10,611 | 480,042 | ||||||
JPMorgan Chase & Co. | 222,703 | 14,246,311 | ||||||
US Bancorp | 105,432 | 4,446,067 | ||||||
Wells Fargo & Co. | 292,646 | 14,038,228 | ||||||
|
| |||||||
50,126,353 | ||||||||
|
| |||||||
Regional Banks – 10.2% |
| |||||||
1st Source Corp. | 1,045 | 35,122 | ||||||
Ameris Bancorp | 1,985 | 65,823 | ||||||
Arrow Financial Corp. | 762 | 24,072 | ||||||
Associated Banc-Corp | 9,047 | 168,274 | ||||||
Banc of California, Inc. | 2,568 | 56,958 | ||||||
Bancfirst Corp. | 431 | 28,261 | ||||||
BancorpSouth, Inc. | 5,201 | 123,888 | ||||||
Bank of Hawaii Corp. | 2,612 | 180,019 | ||||||
Bank of the Ozarks, Inc. | 5,553 | 199,840 | ||||||
BankUnited, Inc. | 6,347 | 190,537 | ||||||
Banner Corp. | 1,046 | 43,660 | ||||||
BB&T Corp. | 49,214 | 1,814,520 | ||||||
BBCN Bancorp, Inc. | 4,911 | 75,482 | ||||||
Berkshire Hills Bancorp, Inc. | 1,909 | 50,340 | ||||||
Blue Hills Bancorp, Inc. | 1,583 | 22,558 | ||||||
BNC Bancorp | 2,601 | 63,100 | ||||||
BOK Financial Corp. | 1,212 | 79,059 | ||||||
Boston Private Financial Holdings, Inc. | 5,081 | 61,582 | ||||||
Bridge Bancorp, Inc. | 1,063 | 30,944 | ||||||
Brookline Bancorp, Inc. | 4,349 | 49,535 | ||||||
Bryn Mawr Bank Corp. | 957 | 28,069 | ||||||
Camden National Corp. | 642 | 27,914 | ||||||
Capital Bank Financial Corp. Class A | 1,476 | 44,118 | ||||||
Cardinal Financial Corp. | 1,967 | 50,670 | ||||||
Cascade Bancorp (a) | 1,964 | 11,077 | ||||||
Cathay General Bancorp | 4,651 | 139,437 | ||||||
Centerstate Banks, Inc. | 2,849 | 47,464 | ||||||
Central Pacific Financial Corp. | 1,902 | 46,656 | ||||||
Chemical Financial Corp. | 2,279 | 94,305 | ||||||
CIT Group, Inc. | 12,158 | 420,180 | ||||||
Citizens Financial Group, Inc. | 32,017 | 714,940 | ||||||
City Holding Co. | 952 | 44,458 | ||||||
CoBiz Financial, Inc. | 2,284 | 28,207 | ||||||
Columbia Banking System, Inc. | 3,537 | 107,242 | ||||||
Commerce Bancshares, Inc. | 5,301 | 250,684 | ||||||
Community Bank System, Inc. | 2,643 | 116,636 | ||||||
Community Trust Bancorp, Inc. | 1,015 | 35,302 | ||||||
ConnectOne Bancorp, Inc. | 1,759 | 29,745 | ||||||
Cullen/Frost Bankers, Inc. | 3,399 | 230,758 | ||||||
Customers Bancorp, Inc. (a) | 1,633 | 42,033 | ||||||
CVB Financial Corp. | 6,171 | 101,513 | ||||||
Eagle Bancorp, Inc. (a) | 1,803 | 92,945 |
Shares | Value | |||||||
East West Bancorp, Inc. | 8,782 | $ | 300,520 | |||||
Enterprise Financial Services Corp. | 1,301 | 37,417 | ||||||
FCB Financial Holdings, Inc. Class A (a) | 2,059 | 72,003 | ||||||
Fidelity Southern Corp. | 1,242 | 21,375 | ||||||
Fifth Third Bancorp | 47,596 | 903,372 | ||||||
Financial Institutions, Inc. | 861 | 23,161 | ||||||
First BanCorp (a) | 7,101 | 32,594 | ||||||
First BanCorp/NC | 1,125 | 21,060 | ||||||
First Busey Corp. | 1,854 | 41,771 | ||||||
First Citizens BancShares, Inc. Class A | 430 | 111,705 | ||||||
First Commonwealth Financial Corp. | 5,428 | 52,380 | ||||||
First Community Bancshares, Inc. | 984 | 22,563 | ||||||
First Financial Bancorp | 3,843 | 81,894 | ||||||
First Financial Bankshares, Inc. | 3,168 | 108,251 | ||||||
First Financial Corp. | 565 | 21,640 | ||||||
First Horizon National Corp. | 14,337 | 208,747 | ||||||
First Interstate Bancsystem, Inc. Class A | 1,301 | 37,781 | ||||||
First Merchants Corp. | 2,353 | 61,649 | ||||||
First Midwest Bancorp, Inc. | 4,763 | 88,925 | ||||||
First NBC Bank Holding Co. (a) | 953 | 18,136 | ||||||
First Niagara Financial Group, Inc. | 21,603 | 219,919 | ||||||
First Republic Bank | 8,874 | 636,000 | ||||||
FirstMerit Corp. | 10,157 | 215,633 | ||||||
Flushing Financial Corp. | 1,650 | 36,811 | ||||||
FNB Corp. | 12,768 | 152,578 | ||||||
Fulton Financial Corp. | 10,517 | 143,557 | ||||||
German American Bancorp, Inc. | 744 | 25,296 | ||||||
Glacier Bancorp, Inc. | 4,702 | 129,681 | ||||||
Great Southern Bancorp, Inc. | 596 | 23,363 | ||||||
Great Western Bancorp, Inc. | 3,568 | 118,351 | ||||||
Hancock Holding Co. | 4,746 | 137,587 | ||||||
Hanmi Financial Corp. | 1,979 | 48,525 | ||||||
Heartland Financial USA, Inc. | 1,112 | 40,833 | ||||||
Heritage Financial Corp. | 1,755 | 30,642 | ||||||
Hilltop Holdings, Inc. (a) | 4,811 | 104,784 | ||||||
Home BancShares, Inc. | 7,712 | 160,949 | ||||||
HomeTrust Bancshares, Inc. (a) | 1,005 | 18,472 | ||||||
Huntington Bancshares, Inc. | 48,238 | 458,261 | ||||||
Iberiabank Corp. | 2,475 | 154,613 | ||||||
Independent Bank Corp. | 1,610 | 80,838 | ||||||
Independent Bank Group, Inc. | 634 | 26,793 | ||||||
International Bancshares Corp. | 3,444 | 94,434 | ||||||
Investors Bancorp, Inc. | 20,390 | 231,630 | ||||||
KeyCorp | 50,679 | 592,944 | ||||||
Lakeland Bancorp, Inc. | 2,558 | 30,466 | ||||||
Lakeland Financial Corp. | 1,053 | 54,072 | ||||||
LegacyTexas Financial Group, Inc. | 2,757 | 78,630 | ||||||
Live Oak Bancshares, Inc. | 1,106 | 14,500 | ||||||
M&T Bank Corp. | 8,689 | 995,412 | ||||||
MainSource Financial Group, Inc. | 1,408 | 31,356 | ||||||
MB Financial, Inc. | 4,258 | 163,465 | ||||||
Mercantile Bank Corp. | 1,021 | 25,709 | ||||||
National Bank Holdings Corp. Class A | 1,856 | 37,176 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 38 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
BANKS – continued |
| |||||||
Regional Banks – continued |
| |||||||
NBT Bancorp, Inc. | 2,573 | $ | 76,727 | |||||
OFG Bancorp | 2,701 | 28,658 | ||||||
Old National Bancorp | 7,932 | 104,385 | ||||||
Opus Bank | 1,055 | 34,055 | ||||||
Pacific Premier Bancorp, Inc. (a) | 1,392 | 33,617 | ||||||
PacWest Bancorp | 6,884 | 284,653 | ||||||
Park National Corp. | 779 | 69,736 | ||||||
People’s United Financial, Inc. | 18,870 | 286,069 | ||||||
Peoples Bancorp, Inc. | 873 | 19,599 | ||||||
Pinnacle Financial Partners, Inc. | 2,639 | 140,157 | ||||||
Popular, Inc. | 6,233 | 209,990 | ||||||
Preferred Bank | 723 | 23,620 | ||||||
PrivateBancorp, Inc. | 4,544 | 200,845 | ||||||
Prosperity Bancshares, Inc. | 4,071 | 207,987 | ||||||
Regions Financial Corp. | 78,010 | 715,352 | ||||||
Renasant Corp. | 2,471 | 79,616 | ||||||
Republic Bancorp, Inc. Class A | 646 | 19,257 | ||||||
S&T Bancorp, Inc. | 2,189 | 55,798 | ||||||
Sandy Spring Bancorp, Inc. | 1,473 | 43,954 | ||||||
Seacoast Banking Corp. of Florida (a) | 1,525 | 24,354 | ||||||
ServisFirst Bancshares, Inc. | 1,320 | 66,832 | ||||||
Signature Bank (a) | 3,071 | 369,257 | ||||||
Simmons First National Corp. Class A | 1,631 | 74,944 | ||||||
South State Corp. | 1,446 | 105,428 | ||||||
Southside Bancshares, Inc. | 1,504 | 46,007 | ||||||
State Bank Financial Corp. | 2,161 | 47,283 | ||||||
Sterling Bancorp/DE | 7,558 | 127,655 | ||||||
Stock Yards Bancorp, Inc. | 1,332 | 39,347 | ||||||
Sun Bancorp, Inc. (a) | 651 | 13,892 | ||||||
SunTrust Banks, Inc. | 30,622 | 1,295,004 | ||||||
SVB Financial Group (a) | 3,146 | 315,921 | ||||||
Synovus Financial Corp. | 7,697 | 234,297 | ||||||
Talmer Bancorp, Inc. Class A | 4,051 | 85,152 | ||||||
TCF Financial Corp. | 9,720 | 132,095 | ||||||
Texas Capital Bancshares, Inc. (a) | 2,769 | 134,407 | ||||||
The Bancorp, Inc. (a) | 2,210 | 11,713 | ||||||
The First of Long Island Corp. | 870 | 26,404 | ||||||
The PNC Financial Services Group, Inc. | 30,436 | 2,515,535 | ||||||
Tompkins Financial Corp. | 745 | 54,191 | ||||||
Towne Bank | 3,401 | 78,053 | ||||||
Trico Bancshares | 1,204 | 31,328 | ||||||
TriState Capital Holdings Inc. (a) | 1,399 | 19,964 | ||||||
Trustmark Corp. | 4,144 | 108,158 | ||||||
UMB Financial Corp. | 2,581 | 143,013 | ||||||
Umpqua Holdings Corp. | 13,503 | 205,651 | ||||||
Union Bankshares Corp. | 2,655 | 71,260 | ||||||
United Bankshares, Inc. | 4,224 | 161,779 | ||||||
United Community Banks, Inc. | 4,058 | 78,076 | ||||||
Univest Corp. of Pennsylvania | 1,530 | 32,268 | ||||||
Valley National Bancorp | 14,629 | 132,685 | ||||||
Washington Trust Bancorp, Inc. | 897 | 34,050 |
Shares | Value | |||||||
Webster Financial Corp. | 5,538 | $ | 199,146 | |||||
WesBanco, Inc. | 2,357 | 72,878 | ||||||
Westamerica BanCorp. | 1,561 | 73,429 | ||||||
Western Alliance Bancorp (a) | 5,693 | 193,733 | ||||||
Wilshire Bancorp, Inc. | 4,482 | 48,137 | ||||||
Wintrust Financial Corp. | 3,130 | 165,264 | ||||||
Yadkin Financial Corp. | 2,560 | 64,486 | ||||||
Zions BanCorp. | 12,457 | 347,301 | ||||||
|
| |||||||
24,262,603 | ||||||||
|
| |||||||
TOTAL BANKS |
| 74,388,956 | ||||||
|
| |||||||
CAPITAL MARKETS – 10.2% |
| |||||||
Asset Management & Custody Banks – 5.8% |
| |||||||
Affiliated Managers Group, Inc. (a) | 3,282 | 481,732 | ||||||
Ameriprise Financial, Inc. | 10,245 | 981,881 | ||||||
Arlington Asset Investment Corp. Class A | 892 | 12,426 | ||||||
Artisan Partners Asset Management, Inc. Class A | 2,366 | 66,153 | ||||||
Associated Capital Group, Inc. Class A | 315 | 9,415 | ||||||
BlackRock, Inc. | 7,467 | 2,734,789 | ||||||
Cohen & Steers, Inc. | 1,261 | 54,349 | ||||||
Diamond Hill Investment Group, Inc. | 187 | 35,715 | ||||||
Eaton Vance Corp. | 6,991 | 264,330 | ||||||
Federated Investors, Inc. Class B | 5,697 | 179,854 | ||||||
Financial Engines, Inc. | 3,103 | 81,888 | ||||||
Franklin Resources, Inc. | 23,338 | 844,602 | ||||||
GAMCO Investors, Inc. Class A | 315 | 10,754 | ||||||
Invesco Ltd. | 25,220 | 735,920 | ||||||
Janus Capital Group, Inc. | 9,103 | 137,455 | ||||||
Legg Mason, Inc. | 5,925 | 202,279 | ||||||
Northern Trust Corp. | 13,207 | 892,661 | ||||||
NorthStar Asset Management Group, Inc. | 10,931 | 129,642 | ||||||
OM Asset Management PLC | 2,588 | 36,232 | ||||||
Pzena Investment Management, Inc. Class A | 731 | 5,746 | ||||||
Safeguard Scientifics, Inc. (a) | 1,318 | 17,029 | ||||||
SEI Investments Co. | 8,480 | 381,600 | ||||||
State Street Corp. | 24,261 | 1,595,889 | ||||||
T Rowe Price Group, Inc. | 15,048 | 1,063,743 | ||||||
The Bank of New York Mellon Corp. | 65,323 | 2,573,726 | ||||||
Virtus Investment Partners, Inc. | 356 | 30,007 | ||||||
Waddell & Reed Financial, Inc. Class A | 5,316 | 97,070 | ||||||
Westwood Holdings Group, Inc. | 463 | 24,826 | ||||||
WisdomTree Investments, Inc. | 7,790 | 77,433 | ||||||
|
| |||||||
13,759,146 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 4.4% |
| |||||||
BGC Partners, Inc. Class A | 12,326 | 109,332 | ||||||
Cowen Group, Inc. Class A (a) | 6,271 | 19,566 | ||||||
E*TRADE Financial Corp. (a) | 17,210 | 431,627 | ||||||
Evercore Partners, Inc. Class A | 2,405 | 121,861 | ||||||
Greenhill & Co., Inc. | 1,688 | 33,473 | ||||||
Houlihan Lokey, Inc. | 738 | 16,922 |
See accompanying notes which are an integral part of the financial statements.
39 | Annual Report |
Fidelity MSCI Financials Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
CAPITAL MARKETS – continued |
| |||||||
Investment Banking & Brokerage – continued |
| |||||||
Interactive Brokers Group, Inc. Class A | 3,708 | $ | 129,187 | |||||
INTL. FCStone, Inc. (a) | 1,074 | 31,296 | ||||||
Investment Technology Group, Inc. | 1,918 | 32,031 | ||||||
KCG Holdings, Inc. Class A (a) | 4,164 | 63,001 | ||||||
Ladenburg Thalmann Financial Services, Inc. (a) | 6,129 | 14,955 | ||||||
LPL Financial Holdings, Inc. | 4,611 | 124,266 | ||||||
Moelis & Co. Class A | 1,245 | 30,988 | ||||||
Morgan Stanley | 89,067 | 2,558,895 | ||||||
Piper Jaffray Cos. (a) | 876 | 36,214 | ||||||
Raymond James Financial, Inc. | 7,737 | 424,761 | ||||||
Stifel Financial Corp. (a) | 4,233 | 149,637 | ||||||
TD Ameritrade Holding Corp. | 16,292 | 494,625 | ||||||
The Charles Schwab Corp. | 72,070 | 2,048,229 | ||||||
The Goldman Sachs Group, Inc. | 23,073 | 3,664,223 | ||||||
Virtu Financial, Inc. Class A | 2,055 | 35,346 | ||||||
|
| |||||||
10,570,435 | ||||||||
|
| |||||||
TOTAL CAPITAL MARKETS |
| 24,329,581 | ||||||
|
| |||||||
CONSUMER FINANCE – 4.2% |
| |||||||
Consumer Finance – 4.2% |
| |||||||
Ally Financial, Inc. | 26,334 | 475,065 | ||||||
American Express Co. | 49,745 | 3,206,563 | ||||||
Capital One Financial Corp. | 31,975 | 2,144,883 | ||||||
Cash America International, Inc. | 1,543 | 66,118 | ||||||
Credit Acceptance Corp. (a) | 419 | 75,701 | ||||||
Discover Financial Services | 25,124 | 1,428,048 | ||||||
Encore Capital Group, Inc. (a) | 1,522 | 37,152 | ||||||
Ezcorp, Inc. Class A (a) | 2,991 | 27,098 | ||||||
First Cash Financial Services, Inc. | 1,692 | 86,817 | ||||||
Green Dot Corp. Class A (a) | 2,793 | 67,591 | ||||||
LendingClub Corp. (a) | 17,563 | 81,141 | ||||||
Navient Corp. | 20,871 | 296,368 | ||||||
Nelnet, Inc. Class A | 1,502 | 60,696 | ||||||
OneMain Holdings, Inc. (a) | 3,672 | 105,900 | ||||||
PRA Group, Inc. (a) | 2,762 | 76,949 | ||||||
SLM Corp. (a) | 25,915 | 186,329 | ||||||
Synchrony Financial (a) | 50,563 | 1,409,696 | ||||||
World Acceptance Corp. (a) | 407 | 17,688 | ||||||
|
| |||||||
TOTAL CONSUMER FINANCE |
| 9,849,803 | ||||||
|
| |||||||
DIVERSIFIED FINANCIAL SERVICES – 8.7% |
| |||||||
Multi-Sector Holdings – 4.6% |
| |||||||
Berkshire Hathaway, Inc. Class B (a) | 72,261 | 10,425,095 | ||||||
FNFV Group (a) | 4,379 | 52,241 | ||||||
Leucadia National Corp. | 19,842 | 362,315 | ||||||
PICO Holdings, Inc. (a) | 1,395 | 14,062 | ||||||
Texas Pacific Land Trust | 492 | 78,720 | ||||||
|
| |||||||
10,932,433 | ||||||||
|
|
Shares | Value | |||||||
Other Diversified Financial Services – 0.2% |
| |||||||
Voya Financial Inc. | 12,688 | $ | 325,193 | |||||
|
| |||||||
Specialized Finance – 3.9% | ||||||||
CBOE Holdings, Inc. | 4,970 | 341,936 | ||||||
CME Group, Inc. | 20,516 | 2,097,556 | ||||||
FactSet Research Systems, Inc. | 2,492 | 428,524 | ||||||
Intercontinental Exchange, Inc. | 7,216 | 1,906,467 | ||||||
MarketAxess Holdings, Inc. | 2,275 | 367,777 | ||||||
Moody’s Corp. | 10,640 | 1,127,946 | ||||||
Morningstar, Inc. | 1,153 | 97,521 | ||||||
MSCI, Inc. | 5,720 | 492,149 | ||||||
Nasdaq, Inc. | 6,982 | 494,046 | ||||||
NewStar Financial, Inc. (a) | 1,241 | 12,683 | ||||||
On Deck Capital, Inc. (a) | 2,078 | 10,806 | ||||||
S&P Global, Inc. | 16,087 | 1,965,831 | ||||||
|
| |||||||
9,343,242 | ||||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES |
| 20,600,868 | ||||||
|
| |||||||
INSURANCE – 16.6% |
| |||||||
Insurance Brokers – 2.4% |
| |||||||
Aon PLC | 16,374 | 1,753,164 | ||||||
Arthur J Gallagher & Co. | 10,737 | 528,153 | ||||||
Brown & Brown, Inc. | 7,177 | 263,109 | ||||||
Marsh & McLennan Cos., Inc. | 31,612 | 2,078,489 | ||||||
Willis Towers Watson PLC | 7,961 | 984,139 | ||||||
|
| |||||||
5,607,054 | ||||||||
|
| |||||||
Life & Health Insurance – 3.9% |
| |||||||
Aflac, Inc. | 25,476 | 1,841,405 | ||||||
American Equity Investment Life Holding Co. | 5,207 | 82,947 | ||||||
Citizens, Inc. (a) | 2,862 | 23,898 | ||||||
CNO Financial Group, Inc. | 10,934 | 189,924 | ||||||
FBL Financial Group, Inc. Class A | 655 | 40,852 | ||||||
Fidelity & Guaranty Life | 793 | 17,335 | ||||||
Genworth Financial, Inc. Class A (a) | 30,093 | 86,066 | ||||||
Lincoln National Corp. | 14,581 | 636,752 | ||||||
MetLife, Inc. | 56,519 | 2,415,622 | ||||||
National Western Life Group, Inc. Class A | 141 | 26,669 | ||||||
Primerica, Inc. | 2,907 | 149,740 | ||||||
Principal Financial Group, Inc. | 17,684 | 824,605 | ||||||
Prudential Financial, Inc. | 27,045 | 2,036,218 | ||||||
Torchmark Corp. | 7,018 | 434,204 | ||||||
Unum Group | 14,539 | 485,748 | ||||||
|
| |||||||
9,291,985 | ||||||||
|
| |||||||
Multi-line Insurance – 2.7% |
| |||||||
American Financial Group, Inc. | 4,228 | 309,067 | ||||||
American International Group, Inc. | 69,769 | 3,798,224 | ||||||
American National Insurance Co. | 485 | 55,460 | ||||||
Assurant, Inc. | 3,941 | 327,142 | ||||||
Hartford Financial Services Group, Inc. | 24,058 | 958,711 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 40 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
INSURANCE – continued |
| |||||||
Multi-line Insurance – continued |
| |||||||
Horace Mann Educators Corp. | 2,491 | $ | 85,142 | |||||
Kemper Corp. | 2,535 | 86,875 | ||||||
Loews Corp. | 17,484 | 722,614 | ||||||
National General Holdings Corp. | 3,655 | 75,403 | ||||||
|
| |||||||
6,418,638 | ||||||||
|
| |||||||
Property & Casualty Insurance – 6.5% |
| |||||||
Allied World Assurance Co. Holdings AG | 5,478 | 224,543 | ||||||
Ambac Financial Group, Inc. (a) | 2,596 | 47,195 | ||||||
AMERISAFE, Inc. | 1,193 | 69,826 | ||||||
Amtrust Financial Services, Inc. | 5,356 | 127,848 | ||||||
Arch Capital Group Ltd. (a) | 7,438 | 540,222 | ||||||
Argo Group International Holdings Ltd. | 1,852 | 96,100 | ||||||
Aspen Insurance Holdings Ltd. | 3,735 | 171,661 | ||||||
Assured Guaranty Ltd. | 8,275 | 221,687 | ||||||
Axis Capital Holdings Ltd. | 5,777 | 321,086 | ||||||
Baldwin & Lyons, Inc. Class B | 597 | 15,815 | ||||||
Chubb Ltd. | 27,968 | 3,503,272 | ||||||
Cincinnati Financial Corp. | 9,472 | 707,558 | ||||||
Donegal Group, Inc. Class A | 660 | 10,672 | ||||||
EMC Insurance Group, Inc. | 553 | 15,335 | ||||||
Employers Holdings, Inc. | 1,926 | 54,930 | ||||||
Erie Indemnity Co. Class A | 1,530 | 149,466 | ||||||
Federated National Holding Co. | 856 | 17,933 | ||||||
First American Financial Corp. | 6,670 | 278,873 | ||||||
FNF Group | 15,023 | 565,916 | ||||||
Global Indemnity PLC (a) | 603 | 18,108 | ||||||
HCI Group, Inc. | 597 | 18,006 | ||||||
Heritage Insurance Holdings, Inc. | 1,565 | 19,390 | ||||||
Infinity Property & Casualty Corp. | 628 | 51,521 | ||||||
James River Group Holdings Ltd. | 903 | 30,395 | ||||||
Markel Corp. (a) | 849 | 805,489 | ||||||
MBIA, Inc. (a) | 7,896 | 66,642 | ||||||
Mercury General Corp. | 813 | 45,016 | ||||||
National Interstate Corp. | 492 | 15,956 | ||||||
Old Republic International Corp. | 15,143 | 293,471 | ||||||
OneBeacon Insurance Group Ltd. Class A | 1,339 | 18,759 | ||||||
ProAssurance Corp. | 3,240 | 167,378 | ||||||
RLI Corp. | 2,373 | 161,767 | ||||||
Safety Insurance Group, Inc. | 823 | 52,425 | ||||||
Selective Insurance Group, Inc. | 3,485 | 136,473 | ||||||
State Auto Financial Corp. | 1,010 | 22,806 | ||||||
State National Cos., Inc. | 1,924 | 21,010 | ||||||
Stewart Information Services Corp. | 1,221 | 52,271 | ||||||
The Allstate Corp. | 22,945 | 1,567,832 | ||||||
The Hanover Insurance Group, Inc. | 2,578 | 212,273 | ||||||
The Navigators Group, Inc. | 748 | 70,065 | ||||||
The Progressive Corp. | 35,445 | 1,152,317 | ||||||
The Travelers Cos., Inc. | 17,884 | 2,078,478 | ||||||
United Fire Group, Inc. | 1,277 | 53,634 |
Shares | Value | |||||||
United Insurance Holdings Corp. | 1,067 | $ | 16,923 | |||||
Universal Insurance Holdings Inc. | 2,026 | 44,045 | ||||||
White Mountains Insurance Group Ltd. | 340 | 279,249 | ||||||
WR Berkley Corp. | 5,933 | 345,241 | ||||||
XL Group Ltd. | 17,950 | 621,249 | ||||||
|
| |||||||
15,578,127 | ||||||||
|
| |||||||
Reinsurance – 1.1% |
| |||||||
Alleghany Corp. (a) | 994 | 540,239 | ||||||
Endurance Specialty Holdings Ltd. | 3,862 | 261,187 | ||||||
Enstar Group Ltd. (a) | 625 | 104,119 | ||||||
Everest Re Group Ltd. | 2,819 | 532,819 | ||||||
Greenlight Capital Re Ltd. (a) | 1,856 | 38,289 | ||||||
Maiden Holdings Ltd. | 3,637 | 50,809 | ||||||
Reinsurance Group of America, Inc. | 3,954 | 392,434 | ||||||
RenaissanceRe Holdings Ltd. | 2,617 | 307,550 | ||||||
Third Point Reinsurance Ltd. (a) | 3,586 | 45,148 | ||||||
Validus Holdings Ltd. | 4,968 | 245,568 | ||||||
WMIH Corp. (a) | 12,799 | 30,974 | ||||||
|
| |||||||
2,549,136 | ||||||||
|
| |||||||
TOTAL INSURANCE |
| 39,444,940 | ||||||
|
| |||||||
REAL ESTATE INVESTMENT TRUSTS (REITS) – 27.0% |
| |||||||
Diversified REIT’s – 1.7% |
| |||||||
American Assets Trust, Inc. | 2,038 | 93,504 | ||||||
Cousins Properties, Inc. | 12,349 | 131,393 | ||||||
Empire State Realty Trust, Inc. Class A | 7,348 | 154,235 | ||||||
First Potomac Realty Trust | 3,647 | 36,871 | ||||||
Forest City Realty Trust, Inc. Class A | 14,600 | 345,290 | ||||||
Global Net Lease, Inc. | 10,189 | 88,950 | ||||||
Gramercy Property Trust | 25,369 | 253,436 | ||||||
Investors Real Estate Trust | 7,491 | 49,590 | ||||||
Lexington Realty Trust | 12,924 | 140,484 | ||||||
Liberty Property Trust | 8,898 | 368,199 | ||||||
NorthStar Realty Finance Corp. | 11,222 | 150,375 | ||||||
One Liberty Properties, Inc. | 715 | 17,889 | ||||||
PS Business Parks, Inc. | 1,235 | 136,949 | ||||||
RAIT Financial Trust | 6,065 | 19,226 | ||||||
Select Income REIT | 4,082 | 113,316 | ||||||
Spirit Realty Capital, Inc. | 28,836 | 394,188 | ||||||
STORE Capital Corp. | 9,206 | 287,135 | ||||||
VEREIT, Inc. | 52,344 | 578,925 | ||||||
Washington Real Estate Investment Trust | 4,428 | 151,836 | ||||||
Winthrop Realty Trust (a) | 2,139 | 19,551 | ||||||
WP Carey, Inc. | 6,031 | 438,152 | ||||||
|
| |||||||
3,969,494 | ||||||||
|
| |||||||
Health Care REIT’s – 2.8% |
| |||||||
Care Capital Properties, Inc. | 5,029 | 148,758 | ||||||
CareTrust REIT, Inc. | 3,557 | 51,399 | ||||||
HCP, Inc. | 28,237 | 1,107,737 | ||||||
Healthcare Realty Trust, Inc. | 6,956 | 251,529 | ||||||
Healthcare Trust of America, Inc. Class A | 7,976 | 271,583 |
See accompanying notes which are an integral part of the financial statements.
41 | Annual Report |
Fidelity MSCI Financials Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE INVESTMENT TRUSTS (REITS) – continued |
| |||||||
Health Care REIT’s – continued |
| |||||||
LTC Properties, Inc. | 2,297 | $ | 122,958 | |||||
Medical Properties Trust, Inc. | 14,357 | 225,405 | ||||||
National Health Investors, Inc. | 2,351 | 184,718 | ||||||
New Senior Investment Group, Inc. | 4,745 | 56,893 | ||||||
Omega Healthcare Investors, Inc. | 11,400 | 393,300 | ||||||
Physicians Realty Trust | 7,947 | 172,609 | ||||||
Sabra Health Care REIT, Inc. | 3,978 | 95,114 | ||||||
Senior Housing Properties Trust | 15,643 | 347,431 | ||||||
Universal Health Realty Income Trust | 416 | 24,823 | ||||||
Ventas, Inc. | 20,378 | 1,551,988 | ||||||
Welltower, Inc. | 21,534 | 1,708,292 | ||||||
|
| |||||||
6,714,537 | ||||||||
|
| |||||||
Hotel & Resort REIT’s – 1.2% |
| |||||||
Apple Hospitality REIT, Inc. | 10,021 | 204,128 | ||||||
Ashford Hospitality Prime, Inc. | 1,577 | 23,718 | ||||||
Ashford Hospitality Trust, Inc. | 5,730 | 34,151 | ||||||
Chatham Lodging Trust | 2,365 | 56,713 | ||||||
Chesapeake Lodging Trust | 3,628 | 91,680 | ||||||
DiamondRock Hospitality Co. | 12,255 | 120,344 | ||||||
FelCor Lodging Trust, Inc. | 8,192 | 52,019 | ||||||
Hersha Hospitality Trust | 2,754 | 52,051 | ||||||
Hospitality Properties Trust | 9,189 | 293,221 | ||||||
Host Hotels & Resorts, Inc. | 45,633 | 809,529 | ||||||
LaSalle Hotel Properties | 6,811 | 187,643 | ||||||
Pebblebrook Hotel Trust | 4,382 | 129,926 | ||||||
RLJ Lodging Trust | 7,635 | 181,255 | ||||||
Ryman Hospitality Properties, Inc. | 2,844 | 159,947 | ||||||
Summit Hotel Properties, Inc. | 5,245 | 74,374 | ||||||
Sunstone Hotel Investors, Inc. | 13,241 | 176,105 | ||||||
Xenia Hotels & Resorts, Inc. | 6,846 | 122,954 | ||||||
|
| |||||||
2,769,758 | ||||||||
|
| |||||||
Industrial REIT’s – 1.4% |
| |||||||
DCT Industrial Trust, Inc. | 5,384 | 270,384 | ||||||
Duke Realty Corp. | 20,970 | 603,726 | ||||||
EastGroup Properties, Inc. | 2,019 | 148,639 | ||||||
First Industrial Realty Trust, Inc. | 7,128 | 210,062 | ||||||
Monmouth Real Estate Investment Corp. Class A | 3,662 | 50,609 | ||||||
Prologis, Inc. | 31,820 | 1,733,872 | ||||||
Rexford Industrial Realty, Inc. | 3,918 | 89,565 | ||||||
STAG Industrial, Inc. | 4,189 | 106,317 | ||||||
Terreno Realty Corp. | 2,590 | 72,132 | ||||||
|
| |||||||
3,285,306 | ||||||||
|
| |||||||
Mortgage REIT’s – 1.4% |
| |||||||
AG Mortgage Investment Trust, Inc. | 1,788 | 26,784 | ||||||
Altisource Residential Corp. | 3,398 | 32,621 | ||||||
American Capital Agency Corp. | 20,670 | 404,925 | ||||||
American Capital Mortgage Investment Corp. | 2,749 | 44,974 | ||||||
Annaly Capital Management, Inc. | 62,420 | 685,372 |
Shares | Value | |||||||
Anworth Mortgage Asset Corp. | 5,613 | $ | 27,616 | |||||
Apollo Commercial Real Estate Finance, Inc. | 4,132 | 67,145 | ||||||
Apollo Residential Mortgage, Inc. | 2,002 | 27,167 | ||||||
ARMOUR Residential REIT, Inc. | 2,240 | 47,667 | ||||||
Blackstone Mortgage Trust, Inc. Class A | 5,741 | 166,546 | ||||||
Capstead Mortgage Corp. | 5,952 | 59,222 | ||||||
Chimera Investment Corp. | 10,905 | 182,986 | ||||||
Colony Financial, Inc. Class A | 6,704 | 119,197 | ||||||
CYS Investments, Inc. | 9,216 | 82,483 | ||||||
Dynex Capital, Inc. | 2,782 | 19,530 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 2,461 | 55,348 | ||||||
Invesco Mortgage Capital, Inc. | 6,914 | 99,562 | ||||||
iStar, Inc. (a) | 4,631 | 47,977 | ||||||
Ladder Capital Corp. | 3,068 | 40,068 | ||||||
MFA Financial, Inc. | 22,513 | 169,298 | ||||||
New Residential Investment Corp. | 13,887 | 189,835 | ||||||
New York Mortgage Trust, Inc. | 6,498 | 42,497 | ||||||
Newcastle Investment Corp. | 4,083 | 19,354 | ||||||
PennyMac Mortgage Investment Trust | 4,191 | 68,020 | ||||||
Redwood Trust, Inc. | 4,619 | 65,913 | ||||||
Resource Capital Corp. | 2,062 | 28,064 | ||||||
Starwood Property Trust, Inc. | 14,479 | 315,642 | ||||||
Two Harbors Investment Corp. | 21,160 | 185,150 | ||||||
United Development Funding IV | 1,832 | 5,862 | ||||||
Western Asset Mortgage Capital Corp. | 2,608 | 25,663 | ||||||
|
| |||||||
3,352,488 | ||||||||
|
| |||||||
Office REIT’s – 2.8% |
| |||||||
Alexandria Real Estate Equities, Inc. | 4,439 | 498,500 | ||||||
Boston Properties, Inc. | 9,317 | 1,324,225 | ||||||
Brandywine Realty Trust | 10,639 | 179,480 | ||||||
Columbia Property Trust, Inc. | 7,088 | 172,238 | ||||||
Corporate Office Properties Trust | 5,805 | 173,918 | ||||||
Douglas Emmett, Inc. | 8,541 | 324,900 | ||||||
Easterly Government Properties, Inc. | 1,915 | 39,238 | ||||||
Equity Commonwealth (a) | 7,256 | 217,825 | ||||||
Franklin Street Properties Corp. | 5,580 | 71,536 | ||||||
Government Properties Income Trust | 4,038 | 96,347 | ||||||
Highwoods Properties, Inc. | 5,816 | 324,067 | ||||||
Hudson Pacific Properties, Inc. | 6,529 | 220,745 | ||||||
Kilroy Realty Corp. | 5,609 | 410,635 | ||||||
Mack-Cali Realty Corp. | 5,143 | 145,032 | ||||||
New York REIT, Inc. | 10,183 | 97,146 | ||||||
NorthStar Realty Europe Corp. | 4,031 | 37,287 | ||||||
Paramount Group, Inc. | 10,374 | 182,894 | ||||||
Parkway Properties, Inc. | 5,084 | 88,309 | ||||||
Piedmont Office Realty Trust, Inc. Class A | 8,836 | 193,862 | ||||||
SL Green Realty Corp. | 6,063 | 714,343 | ||||||
Tier REIT, Inc. | 2,856 | 49,780 | ||||||
Vornado Realty Trust | 10,294 | 1,105,575 | ||||||
|
| |||||||
6,667,882 | ||||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 42 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE INVESTMENT TRUSTS (REITS) – continued |
| |||||||
Residential REIT’s – 3.3% |
| |||||||
American Campus Communities, Inc. | 7,883 | $ | 426,234 | |||||
American Homes 4 Rent Class A | 10,387 | 225,398 | ||||||
Apartment Investment & Management Co. Class A | 9,489 | 436,209 | ||||||
AvalonBay Communities, Inc. | 8,310 | 1,542,752 | ||||||
Camden Property Trust | 5,291 | 474,021 | ||||||
Colony Starwood Homes | 2,571 | 84,226 | ||||||
Education Realty Trust, Inc. | 3,786 | 182,258 | ||||||
Equity Lifestyle Properties, Inc. | 4,879 | 401,249 | ||||||
Equity Residential | 22,149 | 1,505,911 | ||||||
Essex Property Trust, Inc. | 3,964 | 927,100 | ||||||
Mid-America Apartment Communities, Inc. | 4,583 | 485,890 | ||||||
Monogram Residential Trust, Inc. | 9,543 | 102,206 | ||||||
Post Properties, Inc. | 3,275 | 208,257 | ||||||
Silver Bay Realty Trust Corp. | 2,068 | 37,265 | ||||||
Sun Communities, Inc. | 3,696 | 292,538 | ||||||
UDR, Inc. | 15,902 | 592,031 | ||||||
|
| |||||||
7,923,545 | ||||||||
|
| |||||||
Retail REIT’s – 5.6% |
| |||||||
Acadia Realty Trust | 4,312 | 162,390 | ||||||
Agree Realty Corp. | 1,426 | 72,327 | ||||||
Alexander’s, Inc. | 143 | 61,386 | ||||||
Brixmor Property Group, Inc. | 14,617 | 415,123 | ||||||
CBL & Associates Properties, Inc. | 10,405 | 127,878 | ||||||
Cedar Realty Trust, Inc. | 5,255 | 42,250 | ||||||
DDR Corp. | 18,760 | 370,322 | ||||||
Equity One, Inc. | 5,561 | 185,015 | ||||||
Federal Realty Investment Trust | 4,233 | 718,340 | ||||||
General Growth Properties, Inc. | 34,786 | 1,111,413 | ||||||
Getty Realty Corp. | 1,706 | 38,760 | ||||||
Kimco Realty Corp. | 25,099 | 805,678 | ||||||
Kite Realty Group Trust | 5,017 | 152,567 | ||||||
National Retail Properties, Inc. | 8,631 | 458,824 | ||||||
Pennsylvania Real Estate Investment Trust | 4,301 | 109,417 | ||||||
Ramco-Gershenson Properties Trust | 4,818 | 95,589 | ||||||
Realty Income Corp. | 15,184 | 1,085,201 | ||||||
Regency Centers Corp. | 5,906 | 501,597 | ||||||
Retail Opportunity Investments Corp. | 6,092 | 139,080 | ||||||
Retail Properties of America, Inc. Class A | 14,370 | 253,343 | ||||||
Saul Centers, Inc. | 788 | 52,930 | ||||||
Seritage Growth Properties, Class A | 1,369 | 68,532 | ||||||
Simon Property Group, Inc. | 18,781 | 4,264,038 | ||||||
Tanger Factory Outlet Centers | 5,860 | 244,596 | ||||||
Taubman Centers, Inc. | 3,673 | 297,219 | ||||||
The Macerich Co. | 7,722 | 689,111 | ||||||
Urban Edge Properties | 5,980 | 178,862 | ||||||
Urstadt Biddle Properties, Inc. Class A | 1,360 | 33,592 | ||||||
Weingarten Realty Investors | 7,163 | 309,370 | ||||||
WP Glimcher, Inc. | 11,243 | 142,561 | ||||||
|
| |||||||
13,187,311 | ||||||||
|
|
Shares | Value | |||||||
Specialized REIT’s – 6.8% |
| |||||||
American Tower Corp. | 25,738 | $ | 2,979,688 | |||||
CatchMark Timber Trust, Inc. Class A | 2,528 | 30,614 | ||||||
Communications Sales & Leasing, Inc. | 9,202 | 285,998 | ||||||
CoreSite Realty Corp. | 1,858 | 153,341 | ||||||
Corrections Corp. of America | 7,070 | 226,594 | ||||||
Crown Castle International Corp. | 20,239 | 1,963,790 | ||||||
CubeSmart | 10,724 | 318,610 | ||||||
CyrusOne, Inc. | 4,303 | 235,891 | ||||||
Digital Realty Trust, Inc. | 9,155 | 956,331 | ||||||
DuPont Fabros Technology, Inc. | 4,477 | 214,135 | ||||||
EPR Properties | 3,872 | 325,325 | ||||||
Equinix, Inc. | 4,189 | 1,561,952 | ||||||
Extra Space Storage, Inc. | 7,535 | 648,161 | ||||||
Four Corners Property Trust, Inc. | 3,776 | 81,977 | ||||||
Gaming and Leisure Properties, Inc. | 11,653 | 417,527 | ||||||
InfraREIT, Inc. | 2,490 | 43,973 | ||||||
Iron Mountain, Inc. | 15,312 | 631,008 | ||||||
Lamar Advertising Co. Class A | 4,985 | 338,282 | ||||||
National Storage Affiliates Trust | 2,048 | 43,766 | ||||||
Outfront Media, Inc. | 8,382 | 195,049 | ||||||
Potlatch Corp. | 2,503 | 95,740 | ||||||
Public Storage | 8,928 | 2,133,078 | ||||||
QTS Realty Trust, Inc. Class A | 2,839 | 162,533 | ||||||
Rayonier, Inc. | 7,411 | 201,727 | ||||||
Sovran Self Storage, Inc. | 2,752 | 281,722 | ||||||
The Geo Group, Inc. | 4,553 | 157,579 | ||||||
Weyerhaeuser Co. | 47,855 | 1,565,816 | ||||||
|
| |||||||
16,250,207 | ||||||||
|
| |||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) |
| 64,120,528 | ||||||
|
| |||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT – 0.8% |
| |||||||
Diversified Real Estate Activities – 0.1% |
| |||||||
Alexander & Baldwin, Inc. | 2,685 | 105,789 | ||||||
Tejon Ranch Co. (a) | 1,143 | 30,026 | ||||||
The RMR Group, Inc. Class A | 464 | 15,797 | ||||||
The St Joe Co. (a) | 1,832 | 33,764 | ||||||
|
| |||||||
185,376 | ||||||||
|
| |||||||
Real Estate Development – 0.1% |
| |||||||
Forestar Group, Inc. (a) | 1,636 | 20,090 | ||||||
The Howard Hughes Corp. (a) | 2,189 | 261,498 | ||||||
|
| |||||||
281,588 | ||||||||
|
| |||||||
Real Estate Operating Companies – 0.1% |
| |||||||
Kennedy-Wilson Holdings, Inc. | 5,958 | 125,416 | ||||||
|
| |||||||
Real Estate Services – 0.5% |
| |||||||
Altisource Portfolio Solutions S.A. (a) | 786 | 18,282 | ||||||
CBRE Group, Inc. Class A (a) | 18,251 | 519,241 | ||||||
HFF, Inc. Class A | 2,222 | 62,683 | ||||||
Jones Lang LaSalle, Inc. | 2,730 | 298,853 | ||||||
Marcus & Millichap, Inc. (a) | 901 | 24,138 |
See accompanying notes which are an integral part of the financial statements.
43 | Annual Report |
Fidelity MSCI Financials Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT – continued |
| |||||||
Real Estate Services – continued |
| |||||||
RE/MAX Holdings, Inc. Class A | 1,101 | $ | 47,695 | |||||
Realogy Holdings Corp. (a) | 8,943 | 277,144 | ||||||
|
| |||||||
1,248,036 | ||||||||
|
| |||||||
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT |
| 1,840,416 | ||||||
|
| |||||||
THRIFTS & MORTGAGE FINANCE – 1.0% |
| |||||||
Thrifts & Mortgage Finance – 1.0% |
| |||||||
Astoria Financial Corp. | 5,682 | 83,355 | ||||||
Bank Mutual Corp. | 2,884 | 22,034 | ||||||
Beneficial Bancorp, Inc. | 4,819 | 65,346 | ||||||
BofI Holding, Inc. (a) | 3,488 | 58,668 | ||||||
Capitol Federal Financial, Inc. | 7,889 | 111,787 | ||||||
Dime Community Bancshares, Inc. | 1,901 | 32,887 | ||||||
Essent Group Ltd. (a) | 3,998 | 95,792 | ||||||
EverBank Financial Corp. | 5,380 | 96,625 | ||||||
Federal Agricultural Mortgage Corp. Class C | 632 | 24,288 | ||||||
Flagstar Bancorp, Inc. (a) | 1,440 | 38,030 | ||||||
HomeStreet, Inc. (a) | 1,229 | 27,407 | ||||||
Kearny Financial Corp. | 5,621 | 73,185 | ||||||
LendingTree, Inc. (a) | 476 | 48,066 | ||||||
Meridian Bancorp, Inc. | 3,219 | 47,319 | ||||||
Meta Financial Group, Inc. | 503 | 27,509 | ||||||
MGIC Investment Corp. (a) | 20,983 | 150,868 | ||||||
Nationstar Mortgage Holdings, Inc. (a) | 2,655 | 33,533 | ||||||
New York Community Bancorp, Inc. | 29,390 | 424,685 | ||||||
NMI Holdings, Inc. Class A (a) | 3,225 | 20,253 | ||||||
Northfield Bancorp, Inc. | 2,588 | 38,639 | ||||||
Northwest Bancshares, Inc. | 5,917 | 88,222 | ||||||
Ocwen Financial Corp. (a) | 6,609 | 13,218 |
Shares | Value | |||||||
Oritani Financial Corp. | 2,385 | $ | 38,685 | |||||
PHH Corp. (a) | 3,252 | 47,512 | ||||||
Provident Financial Services, Inc. | 3,590 | 72,339 | ||||||
Radian Group, Inc. | 12,032 | 155,213 | ||||||
TFS Financial Corp. | 4,292 | 78,114 | ||||||
TrustCo Bank Corp. | 5,836 | 38,693 | ||||||
United Financial Bancorp, Inc. | 2,893 | 38,043 | ||||||
Walker & Dunlop, Inc. (a) | 1,731 | 40,973 | ||||||
Walter Investment Management | 1,194 | 3,427 | ||||||
Washington Federal, Inc. | 5,495 | 137,375 | ||||||
Waterstone Financial, Inc. | 1,428 | 22,391 | ||||||
WSFS Financial Corp. | 1,712 | 60,245 | ||||||
|
| |||||||
Total Thrifts & Mortgage Finance |
| 2,354,726 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 236,929,818 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
SSgA US Treasury Money Market Fund, 0.11% (b) | 274,287 | 274,287 | ||||||
|
| |||||||
TOTAL INVESTMENT |
| 237,204,105 | ||||||
NET OTHER ASSETS |
| 285,796 | ||||||
|
| |||||||
NET ASSETS – 100% |
| $ | 237,489,901 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Other Information
The following is a summary of the inputs used, as of July 31, 2016, 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 in the table 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: | ||||||||||||||||
Common Stocks | $ | 236,929,818 | $ | 236,923,956 | $ | — | $ | 5,862 | ||||||||
Money Market Funds | 274,287 | 274,287 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 237,204,105 | $ | 237,198,243 | $ | — | $ | 5,862 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 44 |
Fidelity MSCI Health Care Index ETF
Investments July 31, 2016
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
BIOTECHNOLOGY – 22.1% |
| |||||||
Biotechnology – 22.1% |
| |||||||
AbbVie, Inc. | 307,658 | $ | 20,376,189 | |||||
ACADIA Pharmaceuticals, Inc. (a) | 17,190 | 636,718 | ||||||
Acceleron Pharma, Inc. (a) | 5,349 | 181,438 | ||||||
Achillion Pharmaceuticals, Inc. (a) | 20,973 | 173,656 | ||||||
Acorda Therapeutics, Inc. (a) | 8,784 | 222,060 | ||||||
Aduro Biotech, Inc. (a) | 4,179 | 61,348 | ||||||
Advaxis, Inc. (a) | 6,303 | 52,567 | ||||||
Agios Pharmaceuticals, Inc. (a) | 5,458 | 246,865 | ||||||
Aimmune Therapeutics, Inc. (a) | 3,651 | 43,776 | ||||||
Alder Biopharmaceuticals, Inc. (a) | 7,545 | 242,195 | ||||||
Alexion Pharmaceuticals, Inc. (a) | 43,014 | 5,531,600 | ||||||
Alkermes PLC (a) | 28,772 | 1,435,723 | ||||||
Alnylam Pharmaceuticals, Inc. (a) | 14,623 | 995,534 | ||||||
AMAG Pharmaceuticals, Inc. (a) | 6,599 | 175,071 | ||||||
Amgen, Inc. | 143,609 | 24,705,056 | ||||||
Amicus Therapeutics, Inc. (a) | 21,805 | 146,530 | ||||||
Ardelyx, Inc. (a) | 3,691 | 39,420 | ||||||
Arena Pharmaceuticals, Inc. (a) | 46,314 | 77,344 | ||||||
Ariad Pharmaceuticals, Inc. (a) | 32,694 | 310,920 | ||||||
Array BioPharma, Inc. (a) | 23,356 | 87,351 | ||||||
Arrowhead Pharmaceuticals, Inc. (a) | 11,553 | 68,856 | ||||||
Atara Biotherapeutics, Inc. (a) | 3,307 | 79,368 | ||||||
Axovant Sciences Ltd. (a) | 4,823 | 71,380 | ||||||
Bellicum Pharmaceuticals, Inc. (a) | 3,102 | 49,260 | ||||||
BioCryst Pharmaceuticals, Inc. (a) | 11,295 | 40,888 | ||||||
Biogen, Inc. (a) | 41,754 | 12,105,737 | ||||||
BioMarin Pharmaceutical, Inc. (a) | 30,849 | 3,067,008 | ||||||
Biotime, Inc. (a) | 12,463 | 38,885 | ||||||
Bluebird Bio, Inc. (a) | 7,091 | 405,463 | ||||||
Blueprint Medicines Corp. (a) | 3,483 | 77,009 | ||||||
Celgene Corp. (a) | 149,254 | 16,744,806 | ||||||
Celldex Therapeutics, Inc. (a) | 18,996 | 87,762 | ||||||
Cepheid, Inc. (a) | 13,854 | 489,462 | ||||||
Chimerix, Inc. (a) | 7,921 | 31,605 | ||||||
Clovis Oncology, Inc. (a) | 6,628 | 94,648 | ||||||
Coherus Biosciences, Inc. (a) | 4,504 | 114,357 | ||||||
Concert Pharmaceuticals, Inc. (a) | 2,753 | 31,632 | ||||||
CytomX Therapeutics, Inc. (a) | 3,129 | 31,478 | ||||||
Dyax Corp. (a) | 31,822 | 76,691 | ||||||
Dynavax Technologies Corp. (a) | 7,006 | 108,103 | ||||||
Eagle Pharmaceuticals, Inc. (a) | 1,828 | 78,860 | ||||||
Editas Medicine, Inc. (a) | 1,378 | 35,442 | ||||||
Emergent Biosolutions, Inc. (a) | 6,445 | 215,199 | ||||||
Enanta Pharmaceuticals, Inc. (a) | 2,723 | 61,240 | ||||||
Epizyme, Inc. (a) | 7,377 | 76,426 | ||||||
Esperion Therapeutics, Inc. (a) | 2,926 | 31,776 | ||||||
Exact Sciences Corp. (a) | 18,509 | 321,686 | ||||||
Exelixis, Inc. (a) | 43,450 | 398,871 | ||||||
FibroGen, Inc. (a) | 9,336 | 178,598 | ||||||
Five Prime Therapeutics, Inc. (a) | 4,818 | 244,224 | ||||||
Foundation Medicine, Inc. (a) | 2,643 | 61,767 |
Shares | Value | |||||||
Genomic Health, Inc. (a) | 3,588 | $ | 104,160 | |||||
Geron Corp. (a) | 31,104 | 83,359 | ||||||
Gilead Sciences, Inc. | 260,993 | 20,741,114 | ||||||
Global Blood Therapeutics, Inc. (a) | 3,878 | 69,339 | ||||||
Halozyme Therapeutics, Inc. (a) | 20,518 | 203,949 | ||||||
Heron Therapeutics, Inc. (a) | 5,847 | 97,177 | ||||||
Immune Design Corp. (a) | 1,551 | 11,896 | ||||||
ImmunoGen, Inc. (a) | 16,603 | 46,156 | ||||||
Immunomedics, Inc. (a) | 17,269 | 45,763 | ||||||
Incyte Corp. Ltd. (a) | 32,164 | 2,901,514 | ||||||
Infinity Pharmaceuticals, Inc. (a) | 9,471 | 15,911 | ||||||
Inovio Pharmaceuticals, Inc. (a) | 13,340 | 131,799 | ||||||
Insmed, Inc. (a) | 11,337 | 129,809 | ||||||
Insys Therapeutics, Inc. (a) | 4,116 | 64,415 | ||||||
Intercept Pharmaceuticals, Inc. (a) | 3,224 | 557,849 | ||||||
Intrexon Corp. (a) | 11,188 | 283,392 | ||||||
Ionis Pharmaceuticals, Inc. (a) | 23,017 | 671,866 | ||||||
Ironwood Pharmaceuticals, Inc. (a) | 23,236 | 328,325 | ||||||
Juno Therapeutics, Inc. (a) | 8,990 | 278,061 | ||||||
Karyopharm Therapeutics, Inc. (a) | 3,783 | 27,919 | ||||||
Keryx Biopharmaceuticals, Inc. (a) | 15,206 | 111,916 | ||||||
Kite Pharma, Inc. (a) | 7,353 | 416,400 | ||||||
La Jolla Pharmaceutical Co. (a) | 2,734 | 46,478 | ||||||
Lexicon Pharmaceuticals, Inc. (a) | 8,951 | 146,080 | ||||||
Ligand Pharmaceuticals, Inc. (a) | 3,791 | 511,330 | ||||||
Lion Biotechnologies, Inc. (a) | 8,254 | 72,965 | ||||||
Loxo Oncology, Inc. (a) | 2,064 | 53,086 | ||||||
MacroGenics, Inc. (a) | 5,291 | 161,852 | ||||||
MannKind Corp. (a) | 51,303 | 50,790 | ||||||
Medivation, Inc. (a) | 31,351 | 2,006,151 | ||||||
Merrimack Pharmaceuticals, Inc. (a) | 21,768 | 126,254 | ||||||
MiMedx Group, Inc. (a) | 19,578 | 146,639 | ||||||
Mirati Therapeutics, Inc. (a) | 2,405 | 11,159 | ||||||
Momenta Pharmaceuticals, Inc. (a) | 12,609 | 141,977 | ||||||
Myriad Genetics, Inc. (a) | 13,723 | 425,139 | ||||||
NantKwest, Inc. (a) | 5,273 | 36,015 | ||||||
Natera, Inc. (a) | 4,420 | 57,902 | ||||||
Neurocrine Biosciences, Inc. (a) | 16,497 | 828,644 | ||||||
NewLink Genetics Corp. (a) | 4,137 | 43,769 | ||||||
Novavax, Inc. (a) | 51,541 | 377,280 | ||||||
OncoMed Pharmaceuticals, Inc. (a) | 2,269 | 27,523 | ||||||
Ophthotech Corp. (a) | 5,077 | 326,146 | ||||||
Opko Health, Inc. (a) | 62,384 | 620,721 | ||||||
Organovo Holdings, Inc. (a) | 16,737 | 71,634 | ||||||
Otonomy, Inc. (a) | 3,890 | 55,860 | ||||||
OvaScience, Inc. (a) | 5,616 | 28,305 | ||||||
PDL BioPharma, Inc. | 29,791 | 104,864 | ||||||
Portola Pharmaceuticals, Inc. (a) | 10,572 | 274,449 | ||||||
Progenics Pharmaceuticals, Inc. (a) | 13,640 | 79,794 | ||||||
Prothena Corp. PLC (a) | 5,489 | 302,169 | ||||||
PTC Therapeutics, Inc. (a) | 5,576 | 33,289 | ||||||
Puma Biotechnology, Inc. (a) | 5,273 | 263,070 | ||||||
Radius Health, Inc. (a) | 5,781 | 272,401 |
See accompanying notes which are an integral part of the financial statements.
45 | Annual Report |
Fidelity MSCI Health Care Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
BIOTECHNOLOGY – continued |
| |||||||
Biotechnology – continued |
| |||||||
Raptor Pharmaceutical Corp. (a) | 14,544 | $ | 85,664 | |||||
Regeneron Pharmaceuticals, Inc. (a) | 14,732 | 6,262,868 | ||||||
Regulus Therapeutics, Inc. (a) | 5,911 | 21,102 | ||||||
Repligen Corp. (a) | 6,467 | 184,956 | ||||||
Retrophin, Inc. (a) | 6,134 | 109,983 | ||||||
Sage Therapeutics, Inc. (a) | 4,921 | 220,756 | ||||||
Sangamo Biosciences, Inc. (a) | 13,319 | 84,309 | ||||||
Sarepta Therapeutics, Inc. (a) | 8,049 | 203,479 | ||||||
Seattle Genetics, Inc. (a) | 20,028 | 962,546 | ||||||
Seres Therapeutics, Inc. (a) | 2,629 | 28,761 | ||||||
Spark Therapeutics, Inc. (a) | 4,337 | 251,286 | ||||||
Spectrum Pharmaceuticals, Inc. (a) | 13,360 | 91,783 | ||||||
Synergy Pharmaceuticals, Inc. (a) | 20,612 | 84,097 | ||||||
TESARO, Inc. (a) | 5,568 | 519,160 | ||||||
TG Therapeutics, Inc. (a) | 8,670 | 51,240 | ||||||
Trevena, Inc. (a) | 6,268 | 39,300 | ||||||
Ultragenyx Pharmaceutical, Inc. (a) | 7,054 | 446,377 | ||||||
United Therapeutics Corp. (a) | 8,655 | 1,047,342 | ||||||
Vanda Pharmaceuticals, Inc. (a) | 7,443 | 84,850 | ||||||
Versartis, Inc. (a) | 3,623 | 41,665 | ||||||
Vertex Pharmaceuticals, Inc. (a) | 47,043 | 4,563,171 | ||||||
XBiotech, Inc. (a) | 3,418 | 48,775 | ||||||
Xencor, Inc. (a) | 6,234 | 118,072 | ||||||
ZIOPHARM Oncology, Inc. (a) | 20,212 | 98,230 | ||||||
|
| |||||||
TOTAL BIOTECHNOLOGY |
| 141,935,444 | ||||||
|
| |||||||
HEALTH CARE EQUIPMENT & SUPPLIES – 19.3% |
| |||||||
Health Care Equipment – 17.6% |
| |||||||
Abaxis, Inc. | 4,365 | 215,893 | ||||||
Abbott Laboratories | 281,301 | 12,588,220 | ||||||
ABIOMED, Inc. (a) | 7,693 | 907,543 | ||||||
Accuray, Inc. (a) | 15,237 | 83,499 | ||||||
Analogic Corp. | 2,410 | 202,488 | ||||||
AngioDynamics, Inc. (a) | 5,185 | 86,019 | ||||||
AtriCure, Inc. (a) | 5,974 | 90,745 | ||||||
Baxter International, Inc. | 94,144 | 4,520,795 | ||||||
Becton Dickinson and Co. | 40,443 | 7,117,968 | ||||||
Boston Scientific Corp. (a) | 257,444 | 6,250,740 | ||||||
Cantel Medical Corp. | 7,220 | 483,379 | ||||||
Cardiovascular Systems, Inc. (a) | 6,278 | 123,112 | ||||||
ConforMIS, Inc. (a) | 4,899 | 34,146 | ||||||
CONMED Corp. | 4,520 | 183,693 | ||||||
CR Bard, Inc. | 14,077 | 3,149,447 | ||||||
CryoLife, Inc. (a) | 5,563 | 81,053 | ||||||
Cynosure, Inc. Class A (a) | 4,364 | 239,845 | ||||||
Danaher Corp. | 117,435 | 9,563,906 | ||||||
DexCom, Inc. (a) | 15,601 | 1,438,880 | ||||||
Edwards Lifesciences Corp. (a) | 40,972 | 4,692,113 | ||||||
Entellus Medical, Inc. (a) | 1,198 | 21,444 | ||||||
Exactech, Inc. (a) | 1,985 | 53,655 |
Shares | Value | |||||||
GenMark Diagnostics, Inc. (a) | 7,728 | $ | 82,303 | |||||
Glaukos Corp. (a) | 2,270 | 79,359 | ||||||
Globus Medical, Inc. Class A (a) | 13,721 | 314,897 | ||||||
HeartWare International, Inc. (a) | 3,338 | 193,404 | ||||||
Hill-Rom Holdings, Inc. | 12,462 | 665,845 | ||||||
Hologic, Inc. (a) | 48,759 | 1,876,734 | ||||||
IDEXX Laboratories, Inc. (a) | 17,103 | 1,604,090 | ||||||
Inogen, Inc. (a) | 3,021 | 162,349 | ||||||
Insulet Corp. (a) | 10,867 | 384,583 | ||||||
Integer Holdings Corp. (a) | 5,317 | 118,091 | ||||||
Integra LifeSciences Holdings Corp. (a) | 5,702 | 480,508 | ||||||
Intuitive Surgical, Inc. (a) | 7,138 | 4,966,335 | ||||||
Invacare Corp. | 5,689 | 65,537 | ||||||
K2M Group Holdings, Inc. (a) | 4,890 | 81,956 | ||||||
LivaNova PLC (a) | 8,343 | 434,253 | ||||||
Masimo Corp. (a) | 9,031 | 478,372 | ||||||
Medtronic PLC | 268,500 | 23,528,655 | ||||||
Natus Medical, Inc. (a) | 6,303 | 247,897 | ||||||
Nevro Corp. (a) | 4,031 | 333,364 | ||||||
Novocure Ltd. (a) | 8,082 | 60,777 | ||||||
NuVasive, Inc. (a) | 9,478 | 589,532 | ||||||
NxStage Medical, Inc. (a) | 12,307 | 272,108 | ||||||
Orthofix International N.V. (a) | 3,671 | 174,005 | ||||||
ResMed, Inc. | 26,732 | 1,841,300 | ||||||
Rockwell Medical, Inc. (a) | 9,695 | 78,045 | ||||||
St Jude Medical, Inc. | 54,149 | 4,496,533 | ||||||
STERIS PLC | 16,395 | 1,163,225 | ||||||
Stryker Corp. | 64,094 | 7,452,850 | ||||||
SurModics, Inc. (a) | 2,524 | 69,233 | ||||||
Teleflex, Inc. | 7,960 | 1,435,268 | ||||||
TransEnterix Inc. (a) | 10,239 | 13,823 | ||||||
Varian Medical Systems, Inc. (a) | 18,230 | 1,727,110 | ||||||
Wright Medical Group N.V. (a) | 17,340 | 380,266 | ||||||
Zeltiq Aesthetics, Inc. (a) | 6,746 | 229,027 | ||||||
Zimmer Biomet Holdings, Inc. | 38,123 | 4,999,450 | ||||||
|
| |||||||
113,209,667 | ||||||||
|
| |||||||
Health Care Supplies – 1.7% |
| |||||||
Alere, Inc. (a) | 16,511 | 619,162 | ||||||
Align Technology, Inc. (a) | 13,771 | 1,227,685 | ||||||
Anika Therapeutics, Inc. (a) | 2,844 | 141,972 | ||||||
Atrion Corp. | 267 | 127,306 | ||||||
Cerus Corp. (a) | 16,930 | 125,113 | ||||||
DENTSPLY SIRONA, Inc. | 46,109 | 2,952,820 | ||||||
Endologix, Inc. (a) | 14,200 | 200,362 | ||||||
Haemonetics Corp. (a) | 9,710 | 294,407 | ||||||
Halyard Health, Inc. (a) | 8,873 | 306,917 | ||||||
ICU Medical, Inc. (a) | 2,940 | 343,274 | ||||||
Meridian Bioscience, Inc. | 7,968 | 154,260 | ||||||
Merit Medical Systems, Inc. (a) | 8,662 | 203,037 | ||||||
Neogen Corp. (a) | 7,204 | 397,301 | ||||||
OraSure Technologies, Inc. (a) | 10,840 | 73,929 | ||||||
Penumbra, Inc. (a) | 4,915 | 335,744 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 46 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE EQUIPMENT & SUPPLIES – continued |
| |||||||
Health Care Supplies – continued |
| |||||||
Quidel Corp. (a) | 5,446 | $ | 124,169 | |||||
Staar Surgical Co. (a) | 5,735 | 39,227 | ||||||
The Cooper Cos., Inc. | 9,238 | 1,685,658 | ||||||
The Spectranetics Corp. (a) | 8,103 | 187,828 | ||||||
Vascular Solutions, Inc. (a) | 3,416 | 156,692 | ||||||
West Pharmaceutical Services, Inc. | 13,878 | 1,114,126 | ||||||
|
| |||||||
10,810,989 | ||||||||
|
| |||||||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES |
| 124,020,656 | ||||||
|
| |||||||
HEALTH CARE PROVIDERS & SERVICES – 17.7% |
| |||||||
Health Care Services – 3.6% |
| |||||||
Adeptus Health, Inc. Class A (a) | 2,935 | 130,813 | ||||||
Air Methods Corp. (a) | 7,110 | 236,692 | ||||||
Almost Family, Inc. (a) | 1,455 | 57,894 | ||||||
Amedisys, Inc. (a) | 5,178 | 277,282 | ||||||
AMN Healthcare Services, Inc. (a) | 9,177 | 388,187 | ||||||
Chemed Corp. | 3,230 | 475,262 | ||||||
Civitas Solutions, Inc. (a) | 2,846 | 60,990 | ||||||
Corvel Corp. (a) | 2,148 | 97,090 | ||||||
Cross Country Healthcare, Inc. (a) | 5,938 | 86,813 | ||||||
DaVita HealthCare Partners, Inc. (a) | 32,035 | 2,483,994 | ||||||
Diplomat Pharmacy, Inc. (a) | 7,377 | 265,056 | ||||||
Envision Healthcare Holdings, Inc. (a) | 35,701 | 877,888 | ||||||
Express Scripts Holding Co. (a) | 127,556 | 9,703,185 | ||||||
Healthways, Inc. (a) | 6,161 | 103,751 | ||||||
Laboratory Corp. of America | 19,416 | 2,709,697 | ||||||
Landauer, Inc. | 1,840 | 76,765 | ||||||
LHC Group, Inc. (a) | 2,934 | 132,793 | ||||||
MEDNAX, Inc. (a) | 17,904 | 1,233,765 | ||||||
National Research Corp. Class A | 1,806 | 27,126 | ||||||
Premier, Inc. Class A (a) | 8,700 | 284,490 | ||||||
Quest Diagnostics, Inc. | 27,254 | 2,353,655 | ||||||
Team Health Holdings, Inc. (a) | 14,029 | 572,944 | ||||||
Teladoc, Inc. (a) | 3,454 | 60,238 | ||||||
The Providence Service Corp. (a) | 2,414 | 116,765 | ||||||
|
| |||||||
22,813,135 | ||||||||
|
| |||||||
Health Care Distributors – 3.3% |
| |||||||
Aceto Corp. | 5,577 | 143,385 | ||||||
AmerisourceBergen Corp. | 37,266 | 3,174,691 | ||||||
Cardinal Health, Inc. | 62,879 | 5,256,684 | ||||||
Henry Schein, Inc. (a) | 15,643 | 2,831,070 | ||||||
McKesson Corp. | 43,646 | 8,491,766 | ||||||
Owens & Minor, Inc. | 12,024 | 429,377 | ||||||
Patterson Cos., Inc. | 16,127 | 796,029 | ||||||
PharMerica Corp. (a) | 5,817 | 154,499 | ||||||
|
| |||||||
21,277,501 | ||||||||
|
| |||||||
Health Care Facilities – 2.1% |
| |||||||
AAC Holdings, Inc. (a) | 1,812 | 41,078 | ||||||
Acadia Healthcare Co., Inc. (a) | 14,146 | 799,249 |
Shares | Value | |||||||
Amsurg Corp. (a) | 10,442 | $ | 783,254 | |||||
Brookdale Senior Living, Inc. (a) | 35,239 | 650,864 | ||||||
Capital Senior Living Corp. (a) | 5,077 | 98,900 | ||||||
Community Health Systems, Inc. (a) | 21,642 | 276,368 | ||||||
Genesis Healthcare, Inc. (a) | 7,795 | 16,058 | ||||||
HCA Holdings, Inc. (a) | 60,632 | 4,676,546 | ||||||
HealthSouth Corp. | 17,130 | 737,447 | ||||||
Kindred Healthcare, Inc. | 15,551 | 190,655 | ||||||
LifePoint Health, Inc. (a) | 8,178 | 483,974 | ||||||
National HealthCare Corp. | 1,902 | 122,869 | ||||||
Quorum Health Corp. (a) | 5,649 | 61,518 | ||||||
Select Medical Holdings Corp. (a) | 20,175 | 232,013 | ||||||
Surgery Partners, Inc. (a) | 3,720 | 67,444 | ||||||
Surgical Care Affiliates, Inc. (a) | 5,211 | 271,024 | ||||||
Tenet Healthcare Corp. (a) | 18,686 | 571,978 | ||||||
The Ensign Group, Inc. | 9,013 | 193,780 | ||||||
Universal Health Services, Inc. Class B | 17,255 | 2,235,040 | ||||||
US Physical Therapy, Inc. | 2,278 | 135,814 | ||||||
VCA, Inc. (a) | 15,415 | 1,099,706 | ||||||
|
| |||||||
13,745,579 | ||||||||
|
| |||||||
Managed Health Care – 8.7% |
| |||||||
Aetna, Inc. | 66,751 | 7,690,383 | ||||||
Anthem, Inc. | 49,902 | 6,554,129 | ||||||
Centene Corp. (a) | 32,443 | 2,288,854 | ||||||
Cigna Corp. | 48,835 | 6,297,761 | ||||||
HealthEquity, Inc. (a) | 8,305 | 245,163 | ||||||
Humana, Inc. | 28,316 | 4,885,926 | ||||||
Magellan Health, Inc. (a) | 4,430 | 303,322 | ||||||
Molina Healthcare, Inc. (a) | 7,550 | 428,915 | ||||||
Triple-S Management Corp. Class B (a) | 4,496 | 111,726 | ||||||
UnitedHealth Group, Inc. | 181,527 | 25,994,666 | ||||||
Universal American Corp. | 9,227 | 70,679 | ||||||
WellCare Health Plans, Inc. (a) | 8,236 | 879,605 | ||||||
|
| |||||||
55,751,129 | ||||||||
|
| |||||||
TOTAL HEALTH CARE PROVIDERS & SERVICES |
| 113,587,344 | ||||||
|
| |||||||
HEALTH CARE TECHNOLOGY – 1.4% |
| |||||||
Health Care Technology – 1.4% |
| |||||||
Allscripts Healthcare Solutions, Inc. (a) | 34,305 | 484,387 | ||||||
athenahealth, Inc. (a) | 7,436 | 950,246 | ||||||
Castlight Health, Inc. Class B (a) | 7,673 | 28,620 | ||||||
Cerner Corp. (a) | 58,424 | 3,645,073 | ||||||
Computer Programs & Systems, Inc. | 1,732 | 68,656 | ||||||
Evolent Health, Inc. (a) | 3,266 | 76,882 | ||||||
HealthStream, Inc. (a) | 4,863 | 117,831 | ||||||
HMS Holdings Corp. (a) | 16,510 | 328,219 | ||||||
IMS Health Holdings, Inc. (a) | 31,432 | 943,589 | ||||||
Inovalon Holdings, Inc. Class A (a) | 11,848 | 220,610 | ||||||
Medidata Solutions, Inc. (a) | 10,641 | 565,569 | ||||||
Omnicell, Inc. (a) | 6,824 | 263,952 | ||||||
Press Ganey Holdings, Inc. (a) | 4,132 | 164,949 |
See accompanying notes which are an integral part of the financial statements.
47 | Annual Report |
Fidelity MSCI Health Care Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE TECHNOLOGY – continued |
| |||||||
Health Care Technology – continued |
| |||||||
Quality Systems, Inc. | 8,661 | $ | 106,357 | |||||
Veeva Systems, Inc. Class A (a) | 14,095 | 535,469 | ||||||
Vocera Communications, Inc. (a) | 4,497 | 66,511 | ||||||
|
| |||||||
TOTAL HEALTH CARE TECHNOLOGY |
| 8,566,920 | ||||||
|
| |||||||
LIFE SCIENCES TOOLS & SERVICES – 5.0% |
| |||||||
Life Sciences Tools & Services – 5.0% |
| |||||||
Accelerate Diagnostics, Inc. (a) | 5,895 | 115,837 | ||||||
Agilent Technologies, Inc. | 62,576 | 3,010,532 | ||||||
Albany Molecular Research, Inc. (a) | 5,241 | 75,680 | ||||||
Bio-Rad Laboratories, Inc. Class A (a) | 3,903 | 566,286 | ||||||
Bio-Techne Corp. | 7,097 | 797,845 | ||||||
Bruker Corp. | 21,822 | 543,804 | ||||||
Cambrex Corp. (a) | 5,975 | 313,150 | ||||||
Charles River Laboratories International, Inc. (a) | 8,915 | 783,896 | ||||||
Fluidigm Corp. (a) | 4,980 | 52,539 | ||||||
Illumina, Inc. (a) | 27,952 | 4,649,815 | ||||||
INC Research Holdings, Inc. Class A (a) | 8,258 | 367,564 | ||||||
Luminex Corp. (a) | 7,377 | 158,089 | ||||||
Mettler-Toledo International, Inc. (a) | 5,150 | 2,117,732 | ||||||
NeoGenomics, Inc. (a) | 11,131 | 97,062 | ||||||
Pacific Biosciences of California, Inc. (a) | 14,585 | 124,702 | ||||||
PAREXEL International Corp. (a) | 10,191 | 681,268 | ||||||
PerkinElmer, Inc. | 21,363 | 1,215,982 | ||||||
PRA Health Sciences, Inc. (a) | 6,362 | 295,070 | ||||||
Quintiles Transnational Holdings, | 17,088 | 1,326,712 | ||||||
Thermo Fisher Scientific, Inc. | 75,662 | 12,018,152 | ||||||
VWR Corp. (a) | 15,151 | 474,529 | ||||||
Waters Corp. (a) | 15,511 | 2,465,163 | ||||||
|
| |||||||
TOTAL LIFE SCIENCES TOOLS & SERVICES |
| 32,251,409 | ||||||
|
| |||||||
PHARMACEUTICALS – 34.3% |
| |||||||
Pharmaceuticals – 34.3% |
| |||||||
Aclaris Therapeutics, Inc. (a) | 2,139 | 42,138 | ||||||
Aerie Pharmaceuticals, Inc. (a) | 4,372 | 75,854 | ||||||
Akorn, Inc. (a) | 13,163 | 450,569 | ||||||
Allergan PLC (a) | 75,363 | 19,063,071 | ||||||
Amphastar Pharmaceuticals, Inc. (a) | 7,133 | 115,412 | ||||||
ANI Pharmaceuticals, Inc. (a) | 1,553 | 94,112 | ||||||
Bristol-Myers Squibb Co. | 318,775 | 23,847,558 | ||||||
Catalent, Inc. (a) | 20,056 | 512,230 | ||||||
Cempra, Inc. (a) | 7,370 | 132,439 | ||||||
Collegium Pharmaceutical, Inc. (a) | 2,494 | 30,252 | ||||||
Corcept Therapeutics, Inc. (a) | 14,608 | 84,726 | ||||||
Depomed, Inc. (a) | 11,830 | 224,415 | ||||||
Dermira, Inc. (a) | 4,313 | 144,744 | ||||||
Eli Lilly & Co. | 190,081 | 15,755,814 | ||||||
Endo International PLC (a) | 40,264 | 698,983 |
Shares | Value | |||||||
Horizon Pharma PLC (a) | 27,640 | $ | 533,176 | |||||
Impax Laboratories, Inc. (a) | 11,823 | 371,479 | ||||||
Innoviva, Inc. | 15,326 | 197,246 | ||||||
Intersect ENT, Inc. (a) | 3,653 | 57,863 | ||||||
Intra-Cellular Therapies, Inc. (a) | 6,253 | 255,122 | ||||||
Jazz Pharmaceuticals PLC (a) | 11,679 | 1,763,179 | ||||||
Johnson & Johnson | 526,897 | 65,983,311 | ||||||
Lannett Co., Inc. (a) | 5,672 | 177,080 | ||||||
Mallinckrodt PLC (a) | 21,361 | 1,438,450 | ||||||
Merck & Co., Inc. | 529,927 | 31,085,518 | ||||||
Mylan N.V. (a) | 79,630 | 3,725,888 | ||||||
Nektar Therapeutics (a) | 25,181 | 435,379 | ||||||
Ocular Therapeutix, Inc. (a) | 2,351 | 10,274 | ||||||
Omeros Corp. (a) | 7,297 | 85,813 | ||||||
Pacira Pharmaceuticals, Inc. (a) | 6,930 | 251,212 | ||||||
Paratek Pharmaceuticals, Inc. (a) | 2,254 | 29,009 | ||||||
Perrigo Co. PLC | 27,338 | 2,498,420 | ||||||
Pfizer, Inc. | 1,178,816 | 43,486,522 | ||||||
Phibro Animal Health Corp. Class A | 3,600 | 74,268 | ||||||
Prestige Brands Holdings, Inc. (a) | 10,064 | 538,424 | ||||||
Relypsa, Inc. (a) | 5,823 | 185,987 | ||||||
Revance Therapeutics, Inc. (a) | 3,737 | 50,412 | ||||||
Sagent Pharmaceuticals, Inc. (a) | 4,671 | 101,314 | ||||||
Sciclone Pharmaceuticals, Inc. (a) | 9,237 | 97,543 | ||||||
Sucampo Pharmaceuticals, Inc. Class A (a) | 4,317 | 50,725 | ||||||
Supernus Pharmaceuticals, Inc. (a) | 7,512 | 166,917 | ||||||
Teligent, Inc. (a) | 7,037 | 57,140 | ||||||
The Medicines Co. (a) | 13,371 | 522,940 | ||||||
TherapeuticsMD, Inc. (a) | 29,654 | 230,412 | ||||||
Theravance Biopharma, Inc. (a) | 6,631 | 169,157 | ||||||
Zoetis, Inc. | 90,173 | 4,551,031 | ||||||
|
| |||||||
TOTAL PHARMACEUTICALS |
| 220,453,528 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 640,815,301 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
SSgA US Treasury Money Market Fund, 0.11% (b) | 709,709 | 709,709 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 99.9% |
| 641,525,010 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 599,316 | ||||||
|
| |||||||
NET ASSETS – 100% |
| $ | 642,124,326 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 48 |
Other Information
The following is a summary of the inputs used, as of July 31, 2016, 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 in the table 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: | ||||||||||||||||
Common Stocks | $ | 640,815,301 | $ | 640,738,610 | $ | — | $ | 76,691 | ||||||||
Money Market Funds | 709,709 | 709,709 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 641,525,010 | $ | 641,448,319 | $ | — | $ | 76,691 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
49 | Annual Report |
Fidelity MSCI Industrials Index ETF
Investments July 31, 2016
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
AEROSPACE & DEFENSE – 23.8% |
| |||||||
Aerospace & Defense – 23.8% |
| |||||||
AAR Corp. | 2,346 | $ | 56,679 | |||||
Aerojet Rocketdyne Holdings, Inc. (a) | 3,496 | 65,935 | ||||||
Aerovironment, Inc. (a) | 1,458 | 41,334 | ||||||
Astronics Corp. (a) | 1,304 | 49,904 | ||||||
B/E Aerospace, Inc. | 6,984 | 334,080 | ||||||
BWX Technologies, Inc. | 6,452 | 237,498 | ||||||
Cubic Corp. | 1,551 | 63,343 | ||||||
Curtiss-Wright Corp. | 2,893 | 257,448 | ||||||
DigitalGlobe, Inc. (a) | 4,442 | 119,756 | ||||||
Engility Holdings, Inc. (a) | 1,351 | 39,233 | ||||||
Esterline Technologies Corp. (a) | 1,926 | 117,159 | ||||||
General Dynamics Corp. | 18,118 | 2,661,353 | ||||||
HEICO Corp. | 1,370 | 95,229 | ||||||
HEICO Corp. Class A | 2,596 | 149,711 | ||||||
Hexcel Corp. | 6,381 | 275,468 | ||||||
Honeywell International, Inc. | 50,060 | 5,823,480 | ||||||
Huntington Ingalls Industries, Inc. | 3,202 | 552,601 | ||||||
KLX, Inc. (a) | 3,623 | 117,023 | ||||||
Kratos Defense & Security Solutions, | 3,360 | 14,818 | ||||||
L-3 Communications Holdings, Inc. | 5,341 | 809,856 | ||||||
Lockheed Martin Corp. | 18,833 | 4,759,664 | ||||||
Mercury Systems, Inc. (a) | 2,708 | 70,191 | ||||||
Moog, Inc. Class A (a) | 2,303 | 126,826 | ||||||
National Presto Industries, Inc. | 336 | 30,085 | ||||||
Northrop Grumman Corp. | 11,776 | 2,551,035 | ||||||
Orbital ATK, Inc. | 4,012 | 349,525 | ||||||
Raytheon Co. | 20,482 | 2,857,853 | ||||||
Rockwell Collins, Inc. | 8,972 | 759,211 | ||||||
Spirit Aerosystems Holdings, Inc. | 9,272 | 402,219 | ||||||
Taser International, Inc. (a) | 3,724 | 107,847 | ||||||
Teledyne Technologies, Inc. (a) | 2,240 | 235,200 | ||||||
Textron, Inc. | 18,556 | 723,684 | ||||||
The Boeing Co. | 43,110 | 5,762,083 | ||||||
The KEYW Holding Corp. (a) | 2,422 | 24,801 | ||||||
TransDigm Group, Inc. (a) | 3,659 | 1,022,764 | ||||||
Triumph Group, Inc. | 3,221 | 99,303 | ||||||
United Technologies Corp. | 54,427 | 5,859,067 | ||||||
|
| |||||||
TOTAL AEROSPACE & DEFENSE |
| 37,623,266 | ||||||
|
| |||||||
AIR FREIGHT & LOGISTICS – 6.2% |
| |||||||
Air Freight & Logistics – 6.2% |
| |||||||
Air Transport Services Group, Inc. (a) | 1,050 | 15,204 | ||||||
Atlas Air Worldwide Holdings, Inc. (a) | 420 | 18,157 | ||||||
CH Robinson Worldwide, Inc. | 9,833 | 684,573 | ||||||
Echo Global Logistics, Inc. (a) | 1,861 | 46,078 | ||||||
Expeditors International of Washington, Inc. | 12,458 | 615,799 | ||||||
FedEx Corp. | 17,936 | 2,903,838 |
Shares | Value | |||||||
Forward Air Corp. | 2,118 | $ | 98,021 | |||||
Hub Group, Inc. Class A (a) | 2,405 | 98,461 | ||||||
Park-Ohio Holdings Corp. | 563 | 16,766 | ||||||
United Parcel Service, Inc. Class B | 47,275 | 5,110,428 | ||||||
XPO Logistics, Inc. (a) | 7,492 | 221,913 | ||||||
|
| |||||||
TOTAL AIR FREIGHT & LOGISTICS |
| 9,829,238 | ||||||
|
| |||||||
AIRLINES – 1.1% |
| |||||||
Airlines – 1.1% |
| |||||||
Allegiant Travel Co. | 281 | 36,465 | ||||||
American Airlines Group, Inc. | 10,313 | 366,112 | ||||||
Delta Air Lines, Inc. | 13,323 | 516,266 | ||||||
Hawaiian Holdings, Inc. (a) | 926 | 42,161 | ||||||
SkyWest, Inc. | 896 | 25,778 | ||||||
Southwest Airlines Co. | 10,916 | 404,001 | ||||||
Spirit Airlines, Inc. (a) | 1,234 | 52,754 | ||||||
United Continental Holdings, Inc. (a) | 6,147 | 288,233 | ||||||
Virgin America, Inc. (a) | 757 | 42,331 | ||||||
|
| |||||||
TOTAL AIRLINES |
| 1,774,101 | ||||||
|
| |||||||
BUILDING PRODUCTS – 3.2% |
| |||||||
Building Products – 3.2% |
| |||||||
AAON, Inc. | 2,928 | 77,534 | ||||||
Advanced Drainage Systems, Inc. | 2,778 | 74,200 | ||||||
Allegion PLC | 6,575 | 475,964 | ||||||
American Woodmark Corp. (a) | 1,019 | 75,640 | ||||||
AO Smith Corp. | 5,115 | 475,132 | ||||||
Apogee Enterprises, Inc. | 1,975 | 92,331 | ||||||
Armstrong Flooring, Inc. (a) | 1,298 | 25,869 | ||||||
Armstrong World Industries, Inc. (a) | 2,849 | 120,997 | ||||||
Builders FirstSource, Inc. (a) | 6,082 | 78,397 | ||||||
Continental Building Products, Inc. (a) | 2,823 | 66,199 | ||||||
CSW Industrials, Inc. (a) | 1,102 | 37,391 | ||||||
Fortune Brands Home & Security, Inc. | 10,784 | 682,304 | ||||||
Gibraltar Industries, Inc. (a) | 2,037 | 71,865 | ||||||
Griffon Corp. | 2,178 | 37,331 | ||||||
Insteel Industries, Inc. | 1,177 | 40,948 | ||||||
Lennox International, Inc. | 2,684 | 420,851 | ||||||
Masco Corp. | 22,854 | 833,714 | ||||||
Masonite International Corp. (a) | 1,784 | 124,577 | ||||||
NCI Building Systems, Inc. (a) | 2,061 | 33,430 | ||||||
Nortek, Inc. (a) | 683 | 59,339 | ||||||
Owens Corning | 7,904 | 418,201 | ||||||
Patrick Industries, Inc. (a) | 925 | 59,718 | ||||||
PGT, Inc. (a) | 3,308 | 39,696 | ||||||
Ply Gem Holdings, Inc. (a) | 1,590 | 24,423 | ||||||
Quanex Building Products Corp. | 2,073 | 41,439 | ||||||
Simpson Manufacturing Co., Inc. | 2,807 | 114,526 | ||||||
Trex Co., Inc. (a) | 2,062 | 100,007 | ||||||
Universal Forest Products, Inc. | 1,378 | 148,989 | ||||||
USG Corp. (a) | 6,476 | 182,364 | ||||||
|
| |||||||
TOTAL BUILDING PRODUCTS |
| 5,033,376 | ||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 50 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
COMMERCIAL SERVICES & SUPPLIES – 6.8% |
| |||||||
Commercial Printing – 0.5% |
| |||||||
Brady Corp. Class A | 3,208 | $ | 103,105 | |||||
Deluxe Corp. | 3,349 | 226,359 | ||||||
Ennis, Inc. | 1,809 | 31,332 | ||||||
InnerWorkings, Inc. (a) | 2,698 | 22,960 | ||||||
Multi-Color Corp. | 910 | 58,768 | ||||||
Quad/Graphics, Inc. | 1,962 | 49,756 | ||||||
RR Donnelley & Sons Co. | 14,281 | 255,916 | ||||||
|
| |||||||
748,196 | ||||||||
|
| |||||||
Diversified Support Services – 1.4% |
| |||||||
Cintas Corp. | 5,917 | 634,716 | ||||||
Copart, Inc. (a) | 6,895 | 347,784 | ||||||
G&K Services, Inc. Class A | 1,360 | 109,086 | ||||||
Healthcare Services Group, Inc. | 4,937 | 191,605 | ||||||
KAR Auction Services, Inc. | 9,376 | 401,011 | ||||||
Matthews International Corp. Class A | 2,261 | 135,909 | ||||||
McGrath RentCorp | 1,557 | 49,621 | ||||||
Mobile Mini, Inc. | 3,057 | 99,383 | ||||||
UniFirst Corp. | 1,044 | 122,023 | ||||||
Viad Corp. | 1,354 | 47,146 | ||||||
VSE Corp. | 294 | 18,687 | ||||||
|
| |||||||
2,156,971 | ||||||||
|
| |||||||
Environmental & Facilities Services – 3.3% |
| |||||||
ABM Industries, Inc. | 3,633 | 135,184 | ||||||
Clean Harbors, Inc. (a) | 3,743 | 192,465 | ||||||
Covanta Holding Corp. | 8,010 | 128,320 | ||||||
Republic Services, Inc. | 16,565 | 849,122 | ||||||
Rollins, Inc. | 6,732 | 189,708 | ||||||
SP Plus Corp. (a) | 1,185 | 28,476 | ||||||
Stericycle, Inc. (a) | 5,814 | 524,830 | ||||||
Team, Inc. (a) | 1,997 | 55,137 | ||||||
Tetra Tech, Inc. | 4,010 | 132,049 | ||||||
US Ecology, Inc. | 1,498 | 67,859 | ||||||
Waste Connections, Inc. (a) | 11,994 | 893,313 | ||||||
Waste Management, Inc. | 30,530 | 2,018,644 | ||||||
|
| |||||||
5,215,107 | ||||||||
|
| |||||||
Office Services & Supplies – 0.7% |
| |||||||
ACCO Brands Corp. (a) | 7,274 | 81,760 | ||||||
Essendant, Inc. | 2,577 | 51,643 | ||||||
Herman Miller, Inc. | 4,130 | 135,340 | ||||||
HNI Corp. | 3,020 | 157,433 | ||||||
Interface, Inc. | 4,529 | 80,888 | ||||||
Kimball International, Inc. Class B | 2,182 | 24,853 | ||||||
Knoll, Inc. | 3,338 | 84,284 | ||||||
MSA Safety, Inc. | 2,179 | 121,763 | ||||||
Pitney Bowes, Inc. | 13,103 | 253,019 | ||||||
Steelcase, Inc. Class A | 6,319 | 91,625 | ||||||
West Corp. | 3,128 | 69,160 | ||||||
|
| |||||||
1,151,768 | ||||||||
|
|
Shares | Value | |||||||
Security & Alarm Services – 0.9% |
| |||||||
The Brink’s Co. | 3,052 | $ | 100,167 | |||||
Tyco International PLC | 29,076 | 1,324,993 | ||||||
|
| |||||||
1,425,160 | ||||||||
|
| |||||||
TOTAL COMMERCIAL SERVICES & SUPPLIES |
| 10,697,202 | ||||||
|
| |||||||
CONSTRUCTION & ENGINEERING – 2.1% |
| |||||||
Construction & Engineering – 2.1% |
| |||||||
AECOM (a) | 10,441 | 370,551 | ||||||
Aegion Corp. (a) | 2,443 | 50,130 | ||||||
Argan, Inc. | 892 | 41,148 | ||||||
Chicago Bridge & Iron Co. N.V. | 7,190 | 243,094 | ||||||
Comfort Systems USA, Inc. | 2,534 | 76,983 | ||||||
Dycom Industries, Inc. (a) | 2,251 | 211,707 | ||||||
EMCOR Group, Inc. | 4,148 | 231,044 | ||||||
Fluor Corp. | 9,507 | 508,815 | ||||||
Granite Construction, Inc. | 2,721 | 135,451 | ||||||
Great Lakes Dredge & Dock Corp. (a) | 4,258 | 18,906 | ||||||
Jacobs Engineering Group, Inc. (a) | 8,387 | 448,872 | ||||||
KBR, Inc. | 9,772 | 137,003 | ||||||
MasTec, Inc. (a) | 4,425 | 108,191 | ||||||
MYR Group, Inc. (a) | 1,430 | 35,278 | ||||||
Primoris Services Corp. | 2,904 | 52,417 | ||||||
Quanta Services, Inc. (a) | 10,930 | 279,808 | ||||||
Tutor Perini Corp. (a) | 2,715 | 68,201 | ||||||
Valmont Industries, Inc. | 1,559 | 204,151 | ||||||
|
| |||||||
TOTAL CONSTRUCTION & ENGINEERING |
| 3,221,750 | ||||||
|
| |||||||
ELECTRICAL EQUIPMENT – 5.6% |
| |||||||
Electrical Components & Equipment – 5.5% |
| |||||||
Acuity Brands, Inc. | 2,997 | 786,503 | ||||||
AMETEK, Inc. | 16,116 | 757,935 | ||||||
Eaton Corp. PLC | 31,438 | 1,993,484 | ||||||
Emerson Electric Co. | 44,056 | 2,462,730 | ||||||
Encore Wire Corp. | 1,354 | 50,816 | ||||||
EnerSys | 2,971 | 185,242 | ||||||
Generac Holdings, Inc. (a) | 4,540 | 171,567 | ||||||
General Cable Corp. | 3,312 | 48,786 | ||||||
Hubbell, Inc. | 3,688 | 397,677 | ||||||
Plug Power, Inc. (a) | 12,660 | 22,661 | ||||||
Powell Industries, Inc. | 642 | 23,651 | ||||||
Regal-Beloit Corp. | 3,055 | 186,386 | ||||||
Rockwell Automation, Inc. | 8,995 | 1,029,028 | ||||||
Sensata Technologies Holding N.V. (a) | 11,656 | 441,995 | ||||||
SolarCity Corp. (a) | 4,370 | 116,679 | ||||||
Sunrun, Inc. (a) | 3,690 | 19,114 | ||||||
Thermon Group Holdings, Inc. (a) | 2,201 | 44,416 | ||||||
Vicor Corp. (a) | 1,143 | 12,116 | ||||||
|
| |||||||
8,750,786 | ||||||||
|
|
See accompanying notes which are an integral part of the financial statements.
51 | Annual Report |
Fidelity MSCI Industrials Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
ELECTRICAL EQUIPMENT – continued |
| |||||||
Heavy Electrical Equipment – 0.1% |
| |||||||
AZZ, Inc. | 1,781 | $ | 110,564 | |||||
Babcock & Wilcox Enterprises, Inc. (a) | 3,149 | 48,369 | ||||||
|
| |||||||
158,933 | ||||||||
|
| |||||||
TOTAL ELECTRICAL EQUIPMENT |
| 8,909,719 | ||||||
|
| |||||||
INDUSTRIAL CONGLOMERATES – 18.3% |
| |||||||
Industrial Conglomerates – 18.3% |
| |||||||
3M Co. | 41,442 | 7,391,595 | ||||||
Carlisle Cos., Inc. | 4,392 | 453,650 | ||||||
General Electric Co. | 639,063 | 19,900,422 | ||||||
Raven Industries, Inc. | 2,540 | 52,730 | ||||||
Roper Industries, Inc. | 6,919 | 1,178,721 | ||||||
|
| |||||||
TOTAL INDUSTRIAL CONGLOMERATES |
| 28,977,118 | ||||||
|
| |||||||
MACHINERY – 17.1% |
| |||||||
Agricultural & Farm Machinery – 1.3% |
| |||||||
AGCO Corp. | 4,512 | 217,298 | ||||||
Deere & Co. | 18,359 | 1,426,678 | ||||||
Lindsay Corp. | 781 | 54,795 | ||||||
The Toro Co. | 3,755 | 345,272 | ||||||
Titan International, Inc. | 3,248 | 21,469 | ||||||
|
| |||||||
2,065,512 | ||||||||
|
| |||||||
Construction & Farm Machinery & Heavy Trucks – 5.4% |
| |||||||
Alamo Group, Inc. | 652 | 43,769 | ||||||
Allison Transmission Holdings, Inc. | 9,951 | 286,788 | ||||||
American Railcar Industries, Inc. | 611 | 25,668 | ||||||
Astec Industries, Inc. | 1,282 | 77,279 | ||||||
Caterpillar, Inc. | 39,889 | 3,301,214 | ||||||
Cummins, Inc. | 11,341 | 1,392,335 | ||||||
Douglas Dynamics, Inc. | 1,502 | 40,254 | ||||||
Federal Signal Corp. | 4,264 | 56,072 | ||||||
Joy Global, Inc. | 6,697 | 185,038 | ||||||
Meritor, Inc. (a) | 5,902 | 49,459 | ||||||
Navistar International Corp. (a) | 3,020 | 38,716 | ||||||
Oshkosh Corp. | 5,000 | 275,450 | ||||||
PACCAR, Inc. | 24,059 | 1,418,759 | ||||||
Terex Corp. | 7,427 | 179,288 | ||||||
The Greenbrier Cos., Inc. | 1,943 | 63,789 | ||||||
The Manitowoc Co., Inc. | 8,900 | 49,573 | ||||||
Trinity Industries, Inc. | 10,455 | 242,660 | ||||||
Wabash National Corp. (a) | 4,399 | 63,697 | ||||||
WABCO Holdings, Inc. (a) | 3,692 | 370,197 | ||||||
Wabtec Corp. | 6,291 | 430,933 | ||||||
|
| |||||||
8,590,938 | ||||||||
|
| |||||||
Industrial Machinery – 10.4% | ||||||||
Actuant Corp. Class A | 4,062 | 96,473 | ||||||
Albany International Corp. Class A | 1,957 | 82,840 | ||||||
Altra Industrial Motion Corp. | 1,760 | 49,984 |
Shares | Value | |||||||
Barnes Group, Inc. | 3,512 | $ | 133,210 | |||||
Briggs & Stratton Corp. | 2,936 | 66,735 | ||||||
Chart Industries, Inc. (a) | 2,067 | 62,051 | ||||||
CIRCOR International, Inc. | 947 | 53,922 | ||||||
CLARCOR, Inc. | 3,317 | 206,516 | ||||||
Colfax Corp. (a) | 6,297 | 184,880 | ||||||
Columbus McKinnon Corp. | 1,268 | 21,036 | ||||||
Crane Co. | 3,187 | 198,550 | ||||||
Donaldson Co., Inc. | 8,621 | 311,477 | ||||||
Dover Corp. | 10,608 | 757,729 | ||||||
Energy Recovery, Inc. (a) | 2,217 | 23,722 | ||||||
EnPro Industries, Inc. | 1,504 | 68,808 | ||||||
ESCO Technologies, Inc. | 1,792 | 75,891 | ||||||
Flowserve Corp. | 8,902 | 425,961 | ||||||
Fortive Corp. (a) | 21,166 | 1,020,413 | ||||||
Franklin Electric Co., Inc. | 2,677 | 103,653 | ||||||
Global Brass & Copper Holdings, Inc. | 1,443 | 40,866 | ||||||
Graco, Inc. | 3,770 | 279,018 | ||||||
Harsco Corp. | 5,369 | 52,563 | ||||||
Hillenbrand, Inc. | 4,344 | 140,528 | ||||||
Hyster-Yale Materials Handling, Inc. | 587 | 37,445 | ||||||
IDEX Corp. | 5,195 | 466,459 | ||||||
Illinois Tool Works, Inc. | 22,428 | 2,588,191 | ||||||
Ingersoll-Rand PLC | 17,585 | 1,165,182 | ||||||
ITT, Inc. | 6,145 | 194,858 | ||||||
John Bean Technologies Corp. | 2,001 | 133,907 | �� | |||||
Kadant, Inc. | 763 | 41,919 | ||||||
Kennametal, Inc. | 5,454 | 135,586 | ||||||
Lincoln Electric Holdings, Inc. | 4,353 | 270,147 | ||||||
Lydall, Inc. (a) | 1,193 | 53,303 | ||||||
Manitowoc Foodservice, Inc. (a) | 8,874 | 162,749 | ||||||
Milacron Holdings Corp. (a) | 1,082 | 18,632 | ||||||
Mueller Industries, Inc. | 3,714 | 126,425 | ||||||
Mueller Water Products, Inc. Class A | 11,029 | 130,804 | ||||||
NN, Inc. | 1,692 | 28,544 | ||||||
Nordson Corp. | 3,704 | 327,026 | ||||||
Parker Hannifin Corp. | 9,247 | 1,055,915 | ||||||
Pentair PLC | 11,732 | 748,736 | ||||||
Proto Labs, Inc. (a) | 1,714 | 94,339 | ||||||
RBC Bearings, Inc. (a) | 1,655 | 125,830 | ||||||
Rexnord Corp. (a) | 6,938 | 147,710 | ||||||
Snap-on, Inc. | 3,976 | 624,908 | ||||||
SPX Corp. (a) | 2,801 | 42,407 | ||||||
SPX FLOW, Inc. (a) | 2,886 | 78,730 | ||||||
Standex International Corp. | 896 | 79,565 | ||||||
Stanley Black & Decker, Inc. | 10,429 | 1,269,209 | ||||||
Sun Hydraulics Corp. | 1,577 | 47,625 | ||||||
Tennant Co. | 1,133 | 72,603 | ||||||
The Gorman-Rupp Co. | 1,319 | 35,732 | ||||||
The Middleby Corp. (a) | 3,921 | 472,010 | ||||||
The Timken Co. | 4,926 | 164,775 | ||||||
Trimas Corp. (a) | 3,149 | 56,273 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 52 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
MACHINERY – continued | ||||||||
Industrial Machinery – continued |
| |||||||
Watts Water Technologies, Inc. Class A | 1,806 | $ | 111,701 | |||||
Woodward, Inc. | 3,812 | 223,154 | ||||||
Xylem, Inc. | 12,212 | 583,856 | ||||||
|
| |||||||
16,373,081 | ||||||||
|
| |||||||
TOTAL MACHINERY |
| 27,029,531 | ||||||
|
| |||||||
MARINE – 0.1% | ||||||||
Marine – 0.1% | ||||||||
Kirby Corp. (a) | 910 | 49,586 | ||||||
Matson, Inc. | 630 | 23,543 | ||||||
|
| |||||||
TOTAL MARINE |
| 73,129 | ||||||
|
| |||||||
PROFESSIONAL SERVICES – 4.3% |
| |||||||
Human Resource & Employment Services – 0.8% |
| |||||||
GP Strategies Corp. (a) | 913 | 19,137 | ||||||
Heidrick & Struggles International, Inc. | 1,164 | 22,652 | ||||||
Insperity, Inc. | 1,017 | 79,824 | ||||||
Kelly Services, Inc. Class A | 2,110 | 43,192 | ||||||
Kforce, Inc. | 1,823 | 32,559 | ||||||
Korn/Ferry International | 3,229 | 74,299 | ||||||
Manpowergroup, Inc. | 4,946 | 343,252 | ||||||
On Assignment, Inc. (a) | 3,432 | 126,812 | ||||||
Robert Half International, Inc. | 8,973 | 327,874 | ||||||
TriNet Group, Inc. (a) | 2,932 | 63,595 | ||||||
TrueBlue, Inc. (a) | 2,873 | 64,154 | ||||||
WageWorks, Inc. (a) | 2,467 | 152,485 | ||||||
|
| |||||||
1,349,835 | ||||||||
|
| |||||||
Research & Consulting Services – 3.5% |
| |||||||
CBIZ, Inc. (a) | 3,378 | 36,516 | ||||||
CEB, Inc. | 2,233 | 134,069 | ||||||
Equifax, Inc. | 8,125 | 1,076,237 | ||||||
Exponent, Inc. | 1,758 | 89,324 | ||||||
FTI Consulting, Inc. (a) | 2,820 | 120,809 | ||||||
Huron Consulting Group, Inc. (a) | 1,493 | 91,775 | ||||||
ICF International, Inc. (a) | 1,285 | 53,173 | ||||||
IHS Markit Ltd. (a) | 24,582 | 853,979 | ||||||
Mistras Group, Inc. (a) | 1,179 | 29,546 | ||||||
Navigant Consulting, Inc. (a) | 3,303 | 65,102 | ||||||
Nielsen Holdings PLC | 24,783 | 1,334,812 | ||||||
Resources Connection, Inc. | 2,554 | 38,055 | ||||||
RPX Corp. (a) | 3,497 | 35,215 | ||||||
The Advisory Board Co. (a) | 2,891 | 120,728 | ||||||
The Dun & Bradstreet Corp. | 2,474 | 319,764 | ||||||
TransUnion (a) | 4,997 | 163,502 | ||||||
Verisk Analytics, Inc. Class A (a) | 10,924 | 931,599 | ||||||
|
| |||||||
5,494,205 | ||||||||
|
| |||||||
TOTAL PROFESSIONAL SERVICES |
| 6,844,040 | ||||||
|
|
Shares | Value | |||||||
ROAD & RAIL – 7.9% | ||||||||
Railroads – 6.3% | ||||||||
CSX Corp. | 65,984 | $ | 1,869,327 | |||||
Genesee & Wyoming, Inc. Class A (a) | 3,896 | 252,266 | ||||||
Kansas City Southern | 7,424 | 713,521 | ||||||
Norfolk Southern Corp. | 20,429 | 1,834,115 | ||||||
Union Pacific Corp. | 57,976 | 5,394,667 | ||||||
|
| |||||||
10,063,896 | ||||||||
|
| |||||||
Trucking – 1.6% | ||||||||
AMERCO | 471 | 186,285 | ||||||
ArcBest Corp. | 1,680 | 31,433 | ||||||
Avis Budget Group, Inc. (a) | 5,865 | 215,421 | ||||||
Celadon Group, Inc. | 1,939 | 16,016 | ||||||
Covenant Transportation Group, Inc. Class A (a) | 842 | 18,970 | ||||||
Heartland Express, Inc. | 3,082 | 57,079 | ||||||
Hertz Global Holdings, Inc. (a) | 4,951 | 241,015 | ||||||
JB Hunt Transport Services, Inc. | 6,173 | 513,162 | ||||||
Knight Transportation, Inc. | 4,436 | 132,326 | ||||||
Landstar System, Inc. | 2,901 | 204,491 | ||||||
Marten Transport Ltd. | 1,700 | 36,805 | ||||||
Old Dominion Freight Line, Inc. (a) | 4,300 | 299,538 | ||||||
Roadrunner Transportation Systems, | 1,972 | 14,928 | ||||||
Ryder System, Inc. | 3,659 | 241,128 | ||||||
Saia, Inc. (a) | 1,695 | 48,969 | ||||||
Swift Transportation Co. (a) | 5,921 | 113,979 | ||||||
Universal Truckload Services, Inc. | 536 | 8,013 | ||||||
Werner Enterprises, Inc. | 3,211 | 80,660 | ||||||
YRC Worldwide, Inc. (a) | 1,840 | 21,841 | ||||||
|
| |||||||
2,482,059 | ||||||||
|
| |||||||
TOTAL ROAD & RAIL |
| 12,545,955 | ||||||
|
| |||||||
TRADING COMPANIES & DISTRIBUTORS – 3.0% |
| |||||||
Trading Companies & Distributors – 3.0% |
| |||||||
Air Lease Corp. | 6,667 | 192,076 | ||||||
Aircastle Ltd. | 4,098 | 91,058 | ||||||
Applied Industrial Technologies, Inc. | 2,560 | 120,192 | ||||||
Beacon Roofing Supply, Inc. (a) | 3,443 | 161,890 | ||||||
BMC Stock Holdings, Inc. (a) | 3,843 | 78,205 | ||||||
DXP Enterprises, Inc. (a) | 916 | 15,242 | ||||||
Fastenal Co. | 19,796 | 846,279 | ||||||
GATX Corp. | 2,735 | 122,337 | ||||||
H&E Equipment Services, Inc. | 2,132 | 39,698 | ||||||
HD Supply Holdings, Inc. (a) | 13,728 | 496,816 | ||||||
Herc Holdings, Inc. (a) | 1,648 | 58,257 | ||||||
Kaman Corp. | 1,650 | 71,214 | ||||||
MRC Global, Inc. (a) | 6,879 | 91,009 | ||||||
MSC Industrial Direct Co., Inc. Class A | 3,299 | 236,967 | ||||||
NOW, Inc. (a) | 7,375 | 135,036 | ||||||
Rush Enterprises, Inc. Class A (a) | 2,113 | 48,557 | ||||||
Titan Machinery, Inc. (a) | 1,353 | 15,167 |
See accompanying notes which are an integral part of the financial statements.
53 | Annual Report |
Fidelity MSCI Industrials Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
TRADING COMPANIES & DISTRIBUTORS – continued |
| |||||||
Trading Companies & Distributors – continued |
| |||||||
Triton International Ltd. | 2,172 | $ | 36,468 | |||||
United Rentals, Inc. (a) | 6,226 | 496,025 | ||||||
Univar, Inc. (a) | 3,353 | 61,394 | ||||||
Veritiv Corp. (a) | 605 | 25,543 | ||||||
Watsco, Inc. | 1,762 | 253,799 | ||||||
WESCO International, Inc. (a) | 2,887 | 160,921 | ||||||
WW Grainger, Inc. | 4,014 | 878,464 | ||||||
|
| |||||||
TOTAL TRADING COMPANIES & DISTRIBUTORS |
| 4,732,614 | ||||||
|
| |||||||
TRANSPORTATION INFRASTRUCTURE – 0.3% |
| |||||||
Airport Services – 0.3% | ||||||||
Macquarie Infrastructure Corp. | 5,204 | 398,887 | ||||||
Wesco Aircraft Holdings, Inc. (a) | 3,959 | 50,873 | ||||||
|
| |||||||
TOTAL TRANSPORTATION INFRASTRUCTURE |
| 449,760 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 157,740,799 | ||||||
|
|
Money Market Funds – 0.1% | ||||||||
Shares | Value | |||||||
SSgA US Treasury Money Market Fund, | 220,531 | $ | 220,531 | |||||
|
| |||||||
TOTAL INVESTMENT |
| 157,961,330 | ||||||
NET OTHER ASSETS |
| 88,144 | ||||||
|
| |||||||
NET ASSETS – 100% |
| $ | 158,049,474 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Other Information
The following is a summary of the inputs used, as of July 31, 2016, 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 in the table 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: | ||||||||||||||||
Common Stocks | $ | 157,740,799 | $ | 157,740,799 | $ | — | $ | — | ||||||||
Money Market Funds | 220,531 | 220,531 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 157,961,330 | $ | 157,961,330 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 54 |
Fidelity MSCI Information Technology Index ETF
Investments July 31, 2016
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
COMMUNICATIONS EQUIPMENT – 5.5% |
| |||||||
Communications Equipment – 5.5% |
| |||||||
ADTRAN, Inc. | 4,534 | $ | 82,519 | |||||
Arista Networks, Inc. (a) | 3,854 | 274,675 | ||||||
ARRIS International PLC (a) | 17,420 | 474,521 | ||||||
Brocade Communications Systems, Inc. | 43,944 | 408,679 | ||||||
CalAmp Corp. (a) | 3,385 | 48,067 | ||||||
Calix, Inc. (a) | 3,897 | 30,085 | ||||||
Ciena Corp. (a) | 12,909 | 247,724 | ||||||
Cisco Systems, Inc. | 472,587 | 14,428,081 | ||||||
CommScope Holding Co., Inc. (a) | 14,379 | 430,651 | ||||||
Comtech Telecommunications Corp. | 2,195 | 28,689 | ||||||
EchoStar Corp. Class A (a) | 4,246 | 165,382 | ||||||
Extreme Networks, Inc. (a) | 9,300 | 36,177 | ||||||
F5 Networks, Inc. (a) | 6,459 | 797,170 | ||||||
Finisar Corp. (a) | 10,166 | 190,714 | ||||||
Harmonic, Inc. (a) | 8,161 | 26,850 | ||||||
Harris Corp. | 11,689 | 1,012,501 | ||||||
Infinera Corp. (a) | 13,094 | 114,703 | ||||||
InterDigital, Inc. | 3,291 | 194,333 | ||||||
Ixia (a) | 5,358 | 61,617 | ||||||
Juniper Networks, Inc. | 32,364 | 734,339 | ||||||
Lumentum Holdings, Inc. (a) | 4,500 | 136,125 | ||||||
Mitel Networks Corp. (a) | 8,392 | 61,513 | ||||||
Motorola Solutions, Inc. | 14,749 | 1,023,286 | ||||||
NETGEAR, Inc. (a) | 3,043 | 156,501 | ||||||
Netscout Systems, Inc. (a) | 8,333 | 233,157 | ||||||
Oclaro, Inc. (a) | 9,974 | 57,151 | ||||||
Palo Alto Networks, Inc. (a) | 8,309 | 1,087,565 | ||||||
Plantronics, Inc. | 3,116 | 150,316 | ||||||
Polycom, Inc. (a) | 11,948 | 148,036 | ||||||
ShoreTel, Inc. (a) | 6,569 | 48,216 | ||||||
Sonus Networks, Inc. (a) | 4,700 | 40,514 | ||||||
Ubiquiti Networks, Inc. (a) | 2,726 | 121,907 | ||||||
ViaSat, Inc. (a) | 4,365 | 322,268 | ||||||
Viavi Solutions, Inc. (a) | 21,930 | 156,361 | ||||||
|
| |||||||
TOTAL COMMUNICATIONS EQUIPMENT |
| 23,530,393 | ||||||
|
| |||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & |
| |||||||
Electronic Components – 1.3% | ||||||||
Amphenol Corp. Class A | 28,937 | 1,722,330 | ||||||
AVX Corp. | 4,866 | 66,470 | ||||||
Belden, Inc. | 3,982 | 291,522 | ||||||
Corning, Inc. | 104,514 | 2,322,301 | ||||||
Dolby Laboratories, Inc. Class A | 4,955 | 249,286 | ||||||
DTS, Inc. (a) | 1,710 | 47,521 | ||||||
II-VI, Inc. (a) | 5,206 | 104,641 | ||||||
InvenSense, Inc. (a) | 7,834 | 53,115 | ||||||
Knowles Corp. (a) | 8,171 | 109,818 | ||||||
Littelfuse, Inc. | 2,128 | 266,043 | ||||||
Rogers Corp. (a) | 1,701 | 116,416 | ||||||
Universal Display Corp. (a) | 3,978 | 281,801 |
Shares | Value | |||||||
Vishay Intertechnology, Inc. | 12,580 | $ | 167,691 | |||||
|
| |||||||
5,798,955 | ||||||||
|
| |||||||
Electronic Equipment & Instruments – 0.8% |
| |||||||
Badger Meter, Inc. | 1,380 | 96,241 | ||||||
Cognex Corp. | 7,632 | 344,737 | ||||||
Coherent, Inc. (a) | 2,252 | 238,825 | ||||||
Daktronics, Inc. | 3,394 | 21,959 | ||||||
FARO Technologies, Inc. (a) | 1,540 | 53,715 | ||||||
FEI Co. | 3,846 | 409,291 | ||||||
Fitbit, Inc. Class A (a) | 9,168 | 125,235 | ||||||
FLIR Systems, Inc. | 12,946 | 421,781 | ||||||
Itron, Inc. (a) | 3,385 | 144,506 | ||||||
Keysight Technologies, Inc. (a) | 16,067 | 469,799 | ||||||
MTS Systems Corp. | 1,542 | 73,137 | ||||||
National Instruments Corp. | 10,815 | 310,174 | ||||||
Novanta, Inc. (a) | 3,141 | 49,345 | ||||||
OSI Systems, Inc. (a) | 1,729 | 102,824 | ||||||
Rofin-Sinar Technologies, Inc. (a) | 2,515 | 79,474 | ||||||
VeriFone Systems, Inc. (a) | 10,349 | 198,287 | ||||||
Zebra Technologies Corp. Class A (a) | 4,889 | 259,166 | ||||||
|
| |||||||
3,398,496 | ||||||||
|
| |||||||
Electronic Manufacturing Services – 1.2% | ||||||||
Benchmark Electronics, Inc. (a) | 4,782 | 112,090 | ||||||
CTS Corp. | 3,001 | 57,349 | ||||||
Fabrinet (a) | 2,949 | 111,354 | ||||||
Flextronics International Ltd. (a) | 51,557 | 653,227 | ||||||
IPG Photonics Corp. (a) | 3,497 | 294,762 | ||||||
Jabil Circuit, Inc. | 16,153 | 328,714 | ||||||
Kimball Electronics, Inc. (a) | 2,635 | 33,254 | ||||||
Methode Electronics, Inc. | 3,437 | 120,398 | ||||||
Park Electrochemical Corp. | 1,764 | 28,577 | ||||||
Plexus Corp. (a) | 3,136 | 144,068 | ||||||
QLogic Corp. (a) | 7,884 | 122,360 | ||||||
Sanmina Corp. (a) | 7,182 | 181,992 | ||||||
TE Connectivity Ltd. | 34,723 | 2,093,102 | ||||||
Trimble Navigation Ltd. (a) | 23,595 | 623,852 | ||||||
TTM Technologies, Inc. (a) | 5,924 | 58,944 | ||||||
|
| |||||||
4,964,043 | ||||||||
|
| |||||||
Technology Distributors – 0.7% | ||||||||
Anixter International, Inc. (a) | 2,782 | 170,481 | ||||||
Arrow Electronics, Inc. (a) | 8,546 | 568,224 | ||||||
Avnet, Inc. | 12,324 | 506,516 | ||||||
CDW Corp. | 14,192 | 609,263 | ||||||
Electro Rent Corp. | 1,771 | 27,397 | ||||||
ePlus, Inc. (a) | 669 | 56,270 | ||||||
Ingram Micro, Inc. Class A | 13,935 | 477,134 | ||||||
Insight Enterprises, Inc. (a) | 3,541 | 94,191 | ||||||
PC Connection, Inc. | 1,203 | 31,049 | ||||||
ScanSource, Inc. (a) | 2,411 | 98,923 | ||||||
SYNNEX Corp. | 2,794 | 280,881 |
See accompanying notes which are an integral part of the financial statements.
55 | Annual Report |
Fidelity MSCI Information Technology Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & |
| |||||||
Technology Distributors – continued |
| |||||||
Tech Data Corp. (a) | 3,283 | $ | 255,844 | |||||
|
| |||||||
3,176,173 | ||||||||
|
| |||||||
TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS |
| 17,337,667 | ||||||
|
| |||||||
INTERNET SOFTWARE & SERVICES – 20.5% |
| |||||||
Internet Software & Services – 20.5% |
| |||||||
2U, Inc. (a) | 3,255 | 113,860 | ||||||
Actua Corp. (a) | 3,315 | 33,084 | ||||||
Akamai Technologies, Inc. (a) | 16,585 | 838,040 | ||||||
Alarm.com Holdings, Inc. (a) | 1,069 | 30,712 | ||||||
Alphabet, Inc. Class A (a) | 27,478 | 21,744,441 | ||||||
Alphabet, Inc. Class C (a) | 29,206 | 22,453,281 | ||||||
Angie’s List, Inc. (a) | 3,326 | 26,907 | ||||||
Bankrate, Inc. (a) | 5,103 | 40,671 | ||||||
Bazaarvoice, Inc. (a) | 6,919 | 28,714 | ||||||
Benefitfocus, Inc. (a) | 1,232 | 52,976 | ||||||
Blucora, Inc. (a) | 3,862 | 39,431 | ||||||
Box, Inc. Class A (a) | 2,499 | 29,113 | ||||||
ChannelAdvisor Corp. (a) | 2,070 | 32,623 | ||||||
Cimpress N.V. (a) | 2,204 | 208,939 | ||||||
CommerceHub, Inc. Series A (a) | 1,266 | 17,851 | ||||||
CommerceHub, Inc. Series C (a) | 2,532 | 35,448 | ||||||
comScore, Inc. (a) | 4,224 | 109,613 | ||||||
Cornerstone OnDemand, Inc. (a) | 4,889 | 211,156 | ||||||
CoStar Group, Inc. (a) | 3,047 | 633,471 | ||||||
Cvent, Inc. (a) | 2,962 | 96,620 | ||||||
DHI Group, Inc. (a) | 4,358 | 31,770 | ||||||
EarthLink Holdings Corp. | 9,444 | 64,030 | ||||||
eBay, Inc. (a) | 105,205 | 3,278,188 | ||||||
Endurance International Group Holdings, Inc. (a) | 6,026 | 54,113 | ||||||
Envestnet, Inc. (a) | 3,615 | 137,985 | ||||||
Facebook, Inc. Class A (a) | 215,527 | 26,712,416 | ||||||
Five9, Inc. (a) | 2,653 | 33,454 | ||||||
GoDaddy, Inc. Class A (a) | 4,046 | 121,056 | ||||||
Gogo, Inc. (a) | 5,019 | 42,210 | ||||||
GrubHub, Inc. (a) | 6,354 | 240,944 | ||||||
GTT Communications, Inc. (a) | 2,638 | 54,158 | ||||||
Hortonworks, Inc. (a) | 3,250 | 38,058 | ||||||
IAC/InterActiveCorp | 7,265 | 421,079 | ||||||
inContact, Inc. (a) | 5,381 | 74,796 | ||||||
IntraLinks Holdings, Inc. (a) | 4,340 | 30,206 | ||||||
j2 Global, Inc. | 4,344 | 290,353 | ||||||
LinkedIn Corp. Class A (a) | 10,949 | 2,110,201 | ||||||
LivePerson, Inc. (a) | 4,923 | 32,861 | ||||||
LogMeIn, Inc. (a) | 2,388 | 205,153 | ||||||
Marketo, Inc. (a) | 3,662 | 128,829 | ||||||
Match Group, Inc. (a) | 3,627 | 57,125 | ||||||
MercadoLibre, Inc. | 3,121 | 477,763 |
Shares | Value | |||||||
Monster Worldwide, Inc. (a) | 8,442 | $ | 21,358 | |||||
New Relic, Inc. (a) | 2,320 | 79,901 | ||||||
NIC, Inc. | 5,954 | 138,847 | ||||||
Pandora Media, Inc. (a) | 20,317 | 276,311 | ||||||
Q2 Holdings, Inc. (a) | 2,384 | 70,757 | ||||||
Quotient Technology, Inc. (a) | 6,709 | 84,936 | ||||||
Rackspace Hosting, Inc. (a) | 9,848 | 230,739 | ||||||
RetailMeNot, Inc. (a) | 3,296 | 27,522 | ||||||
Shutterstock, Inc. (a) | 1,830 | 100,815 | ||||||
SPS Commerce, Inc. (a) | 1,623 | 102,768 | ||||||
Stamps.com, Inc. (a) | 1,479 | 112,116 | ||||||
TrueCar, Inc. (a) | 4,112 | 38,529 | ||||||
Twitter, Inc. (a) | 52,440 | 872,602 | ||||||
VeriSign, Inc. (a) | 9,257 | 801,749 | ||||||
Web.com Group, Inc. (a) | 4,006 | 75,553 | ||||||
WebMD Health Corp. (a) | 3,574 | 218,050 | ||||||
XO Group, Inc. (a) | 2,239 | 40,817 | ||||||
Yahoo!, Inc. (a) | 84,503 | 3,227,170 | ||||||
Yelp, Inc. (a) | 6,294 | 202,478 | ||||||
Zillow Group, Inc. Class C (a) | 10,630 | 417,227 | ||||||
|
| |||||||
TOTAL INTERNET SOFTWARE & SERVICES |
| 88,553,944 | ||||||
|
| |||||||
IT SERVICES – 17.9% | ||||||||
Data Processing & Outsourced Services – 11.4% |
| |||||||
Alliance Data Systems Corp. (a) | 5,571 | 1,290,355 | ||||||
Automatic Data Processing, Inc. | 42,964 | 3,821,648 | ||||||
Black Knight Financial Services, Inc. Class A (a) | 2,277 | 88,461 | ||||||
Blackhawk Network Holdings, Inc. (a) | 5,131 | 178,507 | ||||||
Broadridge Financial Solutions, Inc. | 11,194 | 757,610 | ||||||
Cardtronics PLC Class A (a) | 4,300 | 189,157 | ||||||
Cass Information Systems, Inc. | 1,059 | 55,036 | ||||||
Convergys Corp. | 9,133 | 243,394 | ||||||
CoreLogic, Inc. (a) | 8,325 | 335,331 | ||||||
CSG Systems International, Inc. | 2,999 | 120,740 | ||||||
DST Systems, Inc. | 3,006 | 370,730 | ||||||
Euronet Worldwide, Inc. (a) | 4,730 | 360,710 | ||||||
EVERTEC, Inc. | 5,876 | 101,067 | ||||||
ExlService Holdings, Inc. (a) | 3,125 | 154,719 | ||||||
Fidelity National Information Services, Inc. | 29,011 | 2,307,245 | ||||||
Fiserv, Inc. (a) | 20,948 | 2,311,821 | ||||||
FleetCor Technologies, Inc. (a) | 8,684 | 1,317,189 | ||||||
Global Payments, Inc. | 14,550 | 1,086,303 | ||||||
Jack Henry & Associates, Inc. | 7,413 | 661,610 | ||||||
Mastercard, Inc. Class A | 92,087 | 8,770,366 | ||||||
MAXIMUS, Inc. | 6,091 | 358,882 | ||||||
MoneyGram International, Inc. (a) | 2,694 | 18,750 | ||||||
Net 1 UEPS Technologies, Inc. (a) | 4,398 | 45,475 | ||||||
Paychex, Inc. | 30,543 | 1,810,589 | ||||||
PayPal Holdings, Inc. (a) | 103,354 | 3,848,903 | ||||||
Sabre Corp. | 19,453 | 567,055 | ||||||
Square, Inc. Class A (a) | 2,079 | 20,936 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 56 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
IT SERVICES – continued | ||||||||
Data Processing & Outsourced Services – continued |
| |||||||
Sykes Enterprises, Inc. (a) | 3,685 | $ | 113,093 | |||||
Syntel, Inc. (a) | 3,118 | 141,277 | ||||||
TeleTech Holdings, Inc. | 1,538 | 43,894 | ||||||
The Western Union Co. | 47,102 | 942,040 | ||||||
Total System Services, Inc. | 15,510 | 789,769 | ||||||
Travelport Worldwide Ltd. | 11,025 | 148,727 | ||||||
Vantiv, Inc. Class A (a) | 14,566 | 797,780 | ||||||
Visa, Inc. Class A | 180,234 | 14,067,264 | ||||||
WEX, Inc. (a) | 3,632 | 340,246 | ||||||
Xerox Corp. | 80,870 | 832,961 | ||||||
|
| |||||||
49,409,640 | ||||||||
|
| |||||||
IT Consulting & Other Services – 6.5% |
| |||||||
Accenture PLC Class A | 58,971 | 6,652,519 | ||||||
Acxiom Corp. (a) | 7,382 | 169,417 | ||||||
Booz Allen Hamilton Holding Corp. | 12,529 | 386,896 | ||||||
CACI International, Inc. Class A (a) | 2,277 | 217,066 | ||||||
Cognizant Technology Solutions Corp. Class A (a) | 57,221 | 3,289,635 | ||||||
Computer Sciences Corp. | 12,956 | 619,685 | ||||||
CSRA, Inc. | 15,153 | 407,919 | ||||||
EPAM Systems, Inc. (a) | 4,260 | 299,222 | ||||||
Forrester Research, Inc. | 829 | 33,931 | ||||||
Gartner, Inc. (a) | 7,726 | 774,532 | ||||||
International Business Machines Corp. | 85,729 | 13,769,792 | ||||||
Leidos Holdings, Inc. | 6,108 | 305,461 | ||||||
Lionbridge Technologies, Inc. (a) | 5,201 | 23,457 | ||||||
ManTech International Corp. Class A | 2,351 | 92,888 | ||||||
Perficient, Inc. (a) | 3,418 | 75,948 | ||||||
Science Applications International Corp. | 4,054 | 246,321 | ||||||
ServiceSource International, Inc. (a) | 6,320 | 28,566 | ||||||
Teradata Corp. (a) | 12,112 | 343,739 | ||||||
The Hackett Group, Inc. | 2,446 | 32,752 | ||||||
Unisys Corp. (a) | 4,643 | 46,012 | ||||||
Virtusa Corp. (a) | 2,631 | 71,563 | ||||||
|
| |||||||
27,887,321 | ||||||||
|
| |||||||
TOTAL IT SERVICES |
| 77,296,961 | ||||||
|
| |||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 14.6% |
| |||||||
Semiconductor Equipment – 1.7% |
| |||||||
Advanced Energy Industries, Inc. (a) | 3,767 | 153,392 | ||||||
Amkor Technology, Inc. (a) | 10,189 | 64,089 | ||||||
Applied Materials, Inc. | 106,193 | 2,791,814 | ||||||
Brooks Automation, Inc. | 6,401 | 80,205 | ||||||
Cabot Microelectronics Corp. | 2,248 | 118,290 | ||||||
Cohu, Inc. | 2,223 | 23,475 | ||||||
Entegris, Inc. (a) | 13,211 | 225,776 | ||||||
FormFactor, Inc. (a) | 6,119 | 57,213 | ||||||
KLA-Tencor Corp. | 14,619 | 1,106,804 | ||||||
Kulicke & Soffa Industries, Inc. (a) | 6,711 | 84,290 | ||||||
Lam Research Corp. | 14,933 | 1,340,535 |
Shares | Value | |||||||
MKS Instruments, Inc. | 5,042 | $ | 230,319 | |||||
Nanometrics, Inc. (a) | 2,314 | 46,373 | ||||||
PDF Solutions, Inc. (a) | 2,401 | 39,616 | ||||||
Photronics, Inc. (a) | 6,117 | 59,090 | ||||||
Rudolph Technologies, Inc. (a) | 2,629 | 46,323 | ||||||
SolarEdge Technologies, Inc. (a) | 2,071 | 37,071 | ||||||
SunEdison Semiconductor Ltd. (a) | 3,917 | 25,265 | ||||||
Teradyne, Inc. | 19,191 | 379,022 | ||||||
Tessera Technologies, Inc. | 4,725 | 151,861 | ||||||
Ultratech, Inc. (a) | 2,328 | 56,896 | ||||||
Veeco Instruments, Inc. (a) | 3,761 | 63,072 | ||||||
Xcerra Corp. (a) | 5,177 | 31,580 | ||||||
|
| |||||||
7,212,371 | ||||||||
|
| |||||||
Semiconductors – 12.9% | ||||||||
Advanced Micro Devices, Inc. (a) | 63,689 | 436,907 | ||||||
Ambarella, Inc. (a) | 3,041 | 176,317 | ||||||
Analog Devices, Inc. | 29,133 | 1,859,559 | ||||||
Applied Micro Circuits Corp. (a) | 7,009 | 46,119 | ||||||
Broadcom Ltd. | 36,657 | 5,937,701 | ||||||
Cavium, Inc. (a) | 5,404 | 252,205 | ||||||
Ceva, Inc. (a) | 1,976 | 59,399 | ||||||
Cirrus Logic, Inc. (a) | 5,893 | 286,341 | ||||||
Cree, Inc. (a) | 9,484 | 271,242 | ||||||
Cypress Semiconductor Corp. | 31,415 | 365,671 | ||||||
Diodes, Inc. (a) | 3,958 | 73,263 | ||||||
Exar Corp. (a) | 3,922 | 32,866 | ||||||
Fairchild Semiconductor International, Inc. (a) | 10,727 | 211,751 | ||||||
First Solar, Inc. (a) | 7,169 | 334,649 | ||||||
Inphi Corp. (a) | 3,315 | 116,622 | ||||||
Integrated Device Technology, Inc. (a) | 12,709 | 279,471 | ||||||
Intel Corp. | 443,650 | 15,465,639 | ||||||
Intersil Corp. Class A | 12,520 | 191,306 | ||||||
IXYS Corp. | 2,624 | 28,707 | ||||||
Lattice Semiconductor Corp. (a) | 11,289 | 67,847 | ||||||
Linear Technology Corp. | 22,518 | 1,350,855 | ||||||
MACOM Technology Solutions Holdings, Inc. (a) | 2,746 | 108,494 | ||||||
Marvell Technology Group Ltd. | 41,351 | 485,874 | ||||||
Maxim Integrated Products, Inc. | 26,916 | 1,097,634 | ||||||
MaxLinear, Inc. Class A (a) | 5,228 | 114,023 | ||||||
Mellanox Technologies Ltd. (a) | 3,955 | 174,732 | ||||||
Microchip Technology, Inc. | 20,104 | 1,118,587 | ||||||
Micron Technology, Inc. (a) | 97,465 | 1,339,169 | ||||||
Microsemi Corp. (a) | 10,535 | 410,865 | ||||||
Monolithic Power Systems, Inc. | 3,520 | 255,974 | ||||||
NeoPhotonics Corp. (a) | 2,668 | 33,483 | ||||||
NVE Corp. | 493 | 28,121 | ||||||
NVIDIA Corp. | 50,508 | 2,884,007 | ||||||
ON Semiconductor Corp. (a) | 38,981 | 390,979 | ||||||
Power Integrations, Inc. | 2,672 | 152,491 | ||||||
Qorvo, Inc. (a) | 12,881 | 814,466 |
See accompanying notes which are an integral part of the financial statements.
57 | Annual Report |
Fidelity MSCI Information Technology Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
SEMICONDUCTORS & SEMICONDUCTOR |
| |||||||
Semiconductors – continued | ||||||||
QUALCOMM, Inc. | 140,392 | $ | 8,785,731 | |||||
Rambus, Inc. (a) | 10,289 | 139,107 | ||||||
Semtech Corp. (a) | 6,170 | 156,841 | ||||||
Silicon Laboratories, Inc. (a) | 3,684 | 196,284 | ||||||
Skyworks Solutions, Inc. | 18,020 | 1,189,680 | ||||||
SunPower Corp. (a) | 5,771 | 84,141 | ||||||
Synaptics, Inc. (a) | 3,456 | 179,539 | ||||||
Texas Instruments, Inc. | 94,409 | 6,585,028 | ||||||
Xilinx, Inc. | 23,977 | 1,224,745 | ||||||
|
| |||||||
55,794,432 | ||||||||
|
| |||||||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT |
| 63,006,803 | ||||||
|
| |||||||
SOFTWARE – 21.3% | ||||||||
Application Software – 6.2% | ||||||||
8x8, Inc. (a) | 8,305 | 114,194 | ||||||
ACI Worldwide, Inc. (a) | 11,117 | 220,228 | ||||||
Adobe Systems, Inc. (a) | 46,801 | 4,579,946 | ||||||
ANSYS, Inc. (a) | 8,292 | 740,973 | ||||||
Aspen Technology, Inc. (a) | 7,855 | 329,046 | ||||||
Autodesk, Inc. (a) | 19,180 | 1,140,251 | ||||||
Blackbaud, Inc. | 4,431 | 296,212 | ||||||
Bottomline Technologies de, Inc. (a) | 3,806 | 80,345 | ||||||
BroadSoft, Inc. (a) | 2,706 | 121,310 | ||||||
Cadence Design Systems, Inc. (a) | 28,519 | 685,882 | ||||||
Callidus Software, Inc. (a) | 5,209 | 106,941 | ||||||
CDK Global, Inc. | 12,400 | 716,596 | ||||||
Citrix Systems, Inc. (a) | 14,468 | 1,289,533 | ||||||
Ebix, Inc. | 2,450 | 130,634 | ||||||
Ellie Mae, Inc. (a) | 2,784 | 256,434 | ||||||
Epiq Systems, Inc. | 1,809 | 29,559 | ||||||
Fair Isaac Corp. | 2,933 | 371,435 | ||||||
Glu Mobile, Inc. (a) | 9,815 | 22,967 | ||||||
Guidewire Software, Inc. (a) | 6,692 | 411,357 | ||||||
HubSpot, Inc. (a) | 2,124 | 115,949 | ||||||
Interactive Intelligence Group, Inc. (a) | 1,592 | 85,888 | ||||||
Intuit, Inc. | 22,924 | 2,544,335 | ||||||
Jive Software, Inc. (a) | 3,888 | 14,774 | ||||||
Manhattan Associates, Inc. (a) | 6,841 | 397,120 | ||||||
Mentor Graphics Corp. | 9,458 | 202,023 | ||||||
MicroStrategy, Inc. Class A (a) | 895 | 156,527 | ||||||
MobileIron, Inc. (a) | 2,901 | 9,892 | ||||||
Monotype Imaging Holdings, Inc. | 3,676 | 72,748 | ||||||
Nuance Communications, Inc. (a) | 22,891 | 367,858 | ||||||
Paycom Software, Inc. (a) | 3,939 | 185,960 | ||||||
Paylocity Holding Corp. (a) | 2,151 | 96,021 | ||||||
Pegasystems, Inc. | 3,516 | 98,096 | ||||||
PROS Holdings, Inc. (a) | 2,451 | 45,540 | ||||||
PTC, Inc. (a) | 10,721 | 425,945 | ||||||
QAD, Inc. Class A | 830 | 15,704 | ||||||
Qlik Technologies, Inc. (a) | 8,843 | 267,059 |
Shares | Value | |||||||
RealPage, Inc. (a) | 5,176 | $ | 130,176 | |||||
RingCentral, Inc. Class A(a) | 4,701 | 108,264 | ||||||
Salesforce.com, Inc. (a) | 59,242 | 4,845,996 | ||||||
Silver Spring Networks, Inc. (a) | 2,938 | 36,931 | ||||||
Splunk, Inc. (a) | 12,186 | 762,112 | ||||||
SS&C Technologies Holdings, Inc. | 16,706 | 538,267 | ||||||
Synchronoss Technologies, Inc. (a) | 3,767 | 140,660 | ||||||
Synopsys, Inc. (a) | 14,241 | 771,293 | ||||||
Tangoe, Inc. (a) | 2,767 | 22,385 | ||||||
The Ultimate Software Group, Inc. (a) | 2,717 | 568,125 | ||||||
TiVo, Inc. (a) | 9,473 | 99,845 | ||||||
Tyler Technologies, Inc. (a) | 3,233 | 527,044 | ||||||
Verint Systems, Inc. (a) | 5,885 | 207,564 | ||||||
Workday, Inc. Class A (a) | 10,525 | 877,153 | ||||||
Workiva, Inc. (a) | 1,747 | 24,353 | ||||||
Xura, Inc. (a) | 2,139 | 53,154 | ||||||
Zendesk, Inc. (a) | 6,825 | 206,388 | ||||||
|
| |||||||
26,664,992 | ||||||||
|
| |||||||
Home Entertainment Software – 1.1% |
| |||||||
Activision Blizzard, Inc. | 54,995 | 2,208,599 | ||||||
Electronic Arts, Inc. (a) | 29,067 | 2,218,393 | ||||||
Take-Two Interactive Software, Inc. (a) | 8,017 | 322,123 | ||||||
Zynga, Inc. Class A (a) | 68,426 | 196,383 | ||||||
|
| |||||||
4,945,498 | ||||||||
|
| |||||||
Systems Software – 14.0% | ||||||||
A10 Networks, Inc. (a) | 3,837 | 30,005 | ||||||
Barracuda Networks, Inc. (a) | 2,234 | 49,327 | ||||||
CA, Inc. | 29,363 | 1,017,428 | ||||||
CommVault Systems, Inc. (a) | 4,027 | 208,357 | ||||||
FireEye, Inc. (a) | 14,026 | 244,333 | ||||||
Fleetmatics Group PLC (a) | 3,610 | 155,086 | ||||||
Fortinet, Inc. (a) | 13,762 | 477,404 | ||||||
Gigamon, Inc. (a) | 2,597 | 121,332 | ||||||
Imperva, Inc. (a) | 2,756 | 129,863 | ||||||
Infoblox, Inc. (a) | 5,177 | 96,913 | ||||||
Microsoft Corp. | 705,653 | 39,996,412 | ||||||
NetSuite, Inc. (a) | 3,755 | 408,732 | ||||||
Oracle Corp. | 295,916 | 12,144,393 | ||||||
Progress Software Corp. (a) | 4,368 | 126,934 | ||||||
Proofpoint, Inc. (a) | 3,708 | 281,326 | ||||||
Qualys, Inc. (a) | 2,582 | 81,049 | ||||||
Rapid7, Inc. (a) | 1,453 | 20,313 | ||||||
Red Hat, Inc. (a) | 17,127 | 1,289,492 | ||||||
Rovi Corp. (a) | 7,697 | 144,780 | ||||||
ServiceNow, Inc. (a) | 15,122 | 1,132,940 | ||||||
Symantec Corp. | 61,280 | 1,251,950 | ||||||
Tableau Software, Inc. Class A (a) | 5,172 | 292,270 | ||||||
The Rubicon Project, Inc. (a) | 2,981 | 42,092 | ||||||
TubeMogul, Inc. (a) | 1,569 | 17,588 | ||||||
Varonis Systems, Inc. (a) | 1,209 | 31,059 | ||||||
VASCO Data Security International, Inc. (a) | 2,703 | 45,167 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 58 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
SOFTWARE – continued |
| |||||||
Systems Software – continued | ||||||||
VMware, Inc. Class A (a) | 6,964 | $ | 508,233 | |||||
|
| |||||||
60,344,778 | ||||||||
|
| |||||||
TOTAL SOFTWARE |
| 91,955,268 | ||||||
|
| |||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS – 16.1% |
| |||||||
Technology Hardware, Storage & Peripherals – 16.1% |
| |||||||
3D Systems Corp. (a) | 10,031 | 134,315 | ||||||
Apple, Inc. | 520,713 | 54,263,502 | ||||||
CPI Card Group, Inc. | 1,802 | 8,505 | ||||||
Cray, Inc. (a) | 3,790 | 119,612 | ||||||
Diebold, Inc. | 5,497 | 155,235 | ||||||
Eastman Kodak Co. (a) | 2,042 | 34,591 | ||||||
Electronics For Imaging, Inc. (a) | 4,487 | 198,729 | ||||||
EMC Corp. | 182,857 | 5,171,196 | ||||||
Hewlett Packard Enterprise Co. | 163,435 | 3,435,404 | ||||||
HP, Inc. | 162,182 | 2,272,170 | ||||||
Immersion Corp. (a) | 2,424 | 18,204 | ||||||
Lexmark International, Inc. Class A | 5,861 | 214,923 | ||||||
NCR Corp. (a) | 12,512 | 412,521 | ||||||
NetApp, Inc. | 27,470 | 723,835 | ||||||
Nimble Storage, Inc. (a) | 5,367 | 39,930 | ||||||
Pure Storage, Inc. Class A (a) | 3,842 | 48,409 |
Shares | Value | |||||||
Seagate Technology PLC | 27,817 | $ | 890,979 | |||||
Super Micro Computer, Inc. (a) | 3,649 | 78,636 | ||||||
Western Digital Corp. | 26,356 | 1,252,174 | ||||||
|
| |||||||
TOTAL TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS |
| 69,472,870 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 431,153,906 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
SSgA US Treasury Money Market Fund, | 247,164 | 247,164 | ||||||
|
| |||||||
TOTAL INVESTMENT |
| 431,401,070 | ||||||
NET OTHER ASSETS |
| (9,702 | ) | |||||
|
| |||||||
NET ASSETS – 100% |
| $ | 431,391,368 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Other Information
The following is a summary of the inputs used, as of July 31, 2016, 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 in the table 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: | ||||||||||||||||
Common Stocks | $ | 431,153,906 | $ | 431,153,906 | $ | — | $ | — | ||||||||
Money Market Funds | 247,164 | 247,164 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 431,401,070 | $ | 431,401,070 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
59 | Annual Report |
Fidelity MSCI Materials Index ETF
Investments July 31, 2016
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
CHEMICALS – 64.5% | ||||||||
Commodity Chemicals – 5.4% | ||||||||
Axiall Corp. | 11,496 | $ | 375,345 | |||||
Cabot Corp. | 10,130 | 493,230 | ||||||
Calgon Carbon Corp. | 8,218 | 113,408 | ||||||
Hawkins, Inc. | 1,584 | 67,700 | ||||||
Koppers Holdings, Inc. (a) | 3,327 | 105,200 | ||||||
Kronos Worldwide, Inc. | 4,129 | 23,329 | ||||||
LyondellBasell Industries N.V. Class A | 59,535 | 4,480,604 | ||||||
Olin Corp. | 26,766 | 559,409 | ||||||
Tredegar Corp. | 3,461 | 61,260 | ||||||
Trinseo S.A. | 4,993 | 248,602 | ||||||
Tronox Ltd. Class A | 10,598 | 68,781 | ||||||
|
| |||||||
6,596,868 | ||||||||
|
| |||||||
Diversified Chemicals – 17.7% | ||||||||
Eastman Chemical Co. | 23,961 | 1,562,976 | ||||||
EI du Pont de Nemours & Co. | 141,245 | 9,769,916 | ||||||
Huntsman Corp. | 32,767 | 506,578 | ||||||
LSB Industries, Inc. (a) | 3,440 | 39,835 | ||||||
The Chemours Co. | 29,466 | 274,034 | ||||||
The Dow Chemical Co. | 181,016 | 9,715,129 | ||||||
|
| |||||||
21,868,468 | ||||||||
|
| |||||||
Fertilizers & Agricultural Chemicals – 9.5% |
| |||||||
AgroFresh Solutions, Inc. (a) | 4,061 | 26,194 | ||||||
American Vanguard Corp. | 4,280 | 63,686 | ||||||
CF Industries Holdings, Inc. | 37,807 | 933,077 | ||||||
FMC Corp. | 21,682 | 1,030,762 | ||||||
Monsanto Co. | 71,346 | 7,617,612 | ||||||
The Mosaic Co. | 54,297 | 1,466,019 | ||||||
The Scotts Miracle-Gro Co. Class A | 7,470 | 550,913 | ||||||
|
| |||||||
11,688,263 | ||||||||
|
| |||||||
Industrial Gases – 8.4% | ||||||||
Air Products & Chemicals, Inc. | 33,200 | 4,960,744 | ||||||
Praxair, Inc. | 46,162 | 5,379,720 | ||||||
|
| |||||||
10,340,464 | ||||||||
|
| |||||||
Specialty Chemicals – 23.5% | ||||||||
A Schulman, Inc. Class A | 4,793 | 140,483 | ||||||
Albemarle Corp. | 18,188 | 1,530,884 | ||||||
Ashland, Inc. | 10,251 | 1,160,823 | ||||||
Axalta Coating Systems Ltd. (a) | 29,035 | 828,949 | ||||||
Balchem Corp. | 5,140 | 328,292 | ||||||
Celanese Corp. Class A | 23,904 | 1,515,992 | ||||||
Chase Corp. | 1,150 | 69,678 | ||||||
Chemtura Corp. (a) | 10,172 | 285,731 | ||||||
Ecolab, Inc. | 43,170 | 5,110,465 | ||||||
Ferro Corp. (a) | 12,139 | 157,321 | ||||||
Flotek Industries, Inc. (a) | 8,288 | 117,690 | ||||||
FutureFuel Corp. | 3,923 | 44,958 | ||||||
GCP Applied Technologies, Inc. (a) | 11,482 | 316,099 | ||||||
HB Fuller Co. | 8,133 | 378,672 | ||||||
Ingevity Corp. (a) | 6,999 | 267,852 |
Shares | Value | |||||||
Innophos Holdings, Inc. | 3,173 | $ | 136,629 | |||||
Innospec, Inc. | 3,910 | 196,556 | ||||||
International Flavors & Fragrances, Inc. | 13,008 | 1,733,316 | ||||||
Kraton Performance Polymers, Inc. (a) | 4,987 | 149,161 | ||||||
Minerals Technologies, Inc. | 5,666 | 369,763 | ||||||
NewMarket Corp. | 1,538 | 658,172 | ||||||
OMNOVA Solutions, Inc. (a) | 6,933 | 65,656 | ||||||
Platform Specialty Products Corp. (a) | 24,294 | 223,505 | ||||||
PolyOne Corp. | 13,814 | 484,457 | ||||||
PPG Industries, Inc. | 43,634 | 4,568,916 | ||||||
Quaker Chemical Corp. | 2,148 | 205,478 | ||||||
Rayonier Advanced Materials, Inc. | 6,940 | 95,564 | ||||||
RPM International, Inc. | 21,542 | 1,168,869 | ||||||
Sensient Technologies Corp. | 7,286 | 537,925 | ||||||
Stepan Co. | 3,273 | 210,487 | ||||||
The Sherwin-Williams Co. | 12,713 | 3,810,467 | ||||||
The Valspar Corp. | 12,183 | 1,297,124 | ||||||
WR Grace & Co. | 11,444 | 856,812 | ||||||
|
| |||||||
29,022,746 | ||||||||
|
| |||||||
TOTAL CHEMICALS |
| 79,516,809 | ||||||
|
| |||||||
CONSTRUCTION MATERIALS – 4.9% |
| |||||||
Construction Materials – 4.9% |
| |||||||
Eagle Materials, Inc. | 7,993 | 671,012 | ||||||
Headwaters, Inc. (a) | 12,033 | 239,336 | ||||||
Martin Marietta Materials, Inc. | 9,904 | 2,007,046 | ||||||
Summit Materials, Inc. Class A (a) | 12,164 | 269,311 | ||||||
United States Lime & Minerals, Inc. | 367 | 23,121 | ||||||
US Concrete, Inc. (a) | 2,294 | 147,963 | ||||||
Vulcan Materials Co. | 21,592 | 2,676,976 | ||||||
|
| |||||||
TOTAL CONSTRUCTION MATERIALS |
| �� | 6,034,765 | |||||
|
| |||||||
CONTAINERS & PACKAGING – 13.4% |
| |||||||
Metal & Glass Containers – 4.6% | ||||||||
Aptargroup, Inc. | 10,182 | 796,029 | ||||||
Ball Corp. | 26,775 | 1,892,189 | ||||||
Berry Plastics Group, Inc. (a) | 19,520 | 800,320 | ||||||
Crown Holdings, Inc. (a) | 22,636 | 1,199,029 | ||||||
Greif, Inc. Class A | 4,170 | 167,342 | ||||||
Myers Industries, Inc. | 3,913 | 58,499 | ||||||
Owens-Illinois, Inc. (a) | 24,862 | 467,157 | ||||||
Silgan Holdings, Inc. | 6,878 | 341,011 | ||||||
|
| |||||||
5,721,576 | ||||||||
|
| |||||||
Paper Packaging – 8.8% | ||||||||
Avery Dennison Corp. | 14,504 | 1,129,717 | ||||||
Bemis Co., Inc. | 15,360 | 783,974 | ||||||
Graphic Packaging Holding Co. | 52,355 | 714,122 | ||||||
International Paper Co. | 63,306 | 2,900,048 | ||||||
Multi Packaging Solutions International Ltd. (a) | 5,049 | 73,312 | ||||||
Packaging Corp. of America | 15,289 | 1,141,935 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 60 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
CONTAINERS & PACKAGING – continued |
| |||||||
Paper Packaging – continued | ||||||||
Sealed Air Corp. | 31,777 | $ | 1,499,239 | |||||
Sonoco Products Co. | 16,365 | 833,470 | ||||||
WestRock Co. | 41,151 | 1,765,789 | ||||||
|
| |||||||
10,841,606 | ||||||||
|
| |||||||
TOTAL CONTAINERS & PACKAGING |
| 16,563,182 | ||||||
|
| |||||||
METALS & MINING – 15.2% | ||||||||
Aluminum – 2.0% | ||||||||
Alcoa, Inc. | 213,139 | 2,263,536 | ||||||
Century Aluminum Co. (a) | 8,647 | 65,631 | ||||||
Kaiser Aluminum Corp. | 1,473 | 122,038 | ||||||
|
| |||||||
2,451,205 | ||||||||
|
| |||||||
Diversified Metals & Mining – 2.4% |
| |||||||
Compass Minerals International, Inc. | 5,491 | 382,119 | ||||||
Freeport-McMoRan, Inc. | 192,775 | 2,498,364 | ||||||
Materion Corp. | 3,304 | 87,258 | ||||||
|
| |||||||
2,967,741 | ||||||||
|
| |||||||
Gold – 3.9% | ||||||||
McEwen Mining, Inc. (a) | 36,916 | 163,907 | ||||||
Newmont Mining Corp. | 85,765 | 3,773,660 | ||||||
Royal Gold, Inc. | 10,582 | 894,602 | ||||||
|
| |||||||
4,832,169 | ||||||||
|
| |||||||
Precious Metals & Minerals – 0.3% |
| |||||||
Stillwater Mining Co. (a) | 19,608 | 300,003 | ||||||
|
| |||||||
Silver – 0.6% |
| |||||||
Coeur Mining, Inc. (a) | 24,770 | 379,477 | ||||||
Hecla Mining Co. | 61,684 | 400,329 | ||||||
|
| |||||||
779,806 | ||||||||
|
| |||||||
Steel – 6.0% | ||||||||
AK Steel Holding Corp. (a) | 37,641 | 246,925 | ||||||
Allegheny Technologies, Inc. | 17,806 | 317,125 | ||||||
Carpenter Technology Corp. | 7,631 | 299,517 | ||||||
Cliffs Natural Resources, Inc. (a) | 26,290 | 207,954 | ||||||
Commercial Metals Co. | 18,840 | 311,614 | ||||||
Haynes International, Inc. | 2,034 | 77,251 | ||||||
Nucor Corp. | 51,533 | 2,764,230 | ||||||
Reliance Steel & Aluminum Co. | 11,653 | 914,061 | ||||||
Schnitzer Steel Industries, Inc. Class A | 4,280 | 83,417 | ||||||
Steel Dynamics, Inc. | 39,486 | 1,059,015 | ||||||
SunCoke Energy, Inc. | 9,897 | 75,514 |
Shares | Value | |||||||
TimkenSteel Corp. | 6,243 | $ | 62,555 | |||||
United States Steel Corp. | 23,823 | 654,894 | ||||||
Worthington Industries, Inc. | 7,724 | 342,250 | ||||||
|
| |||||||
7,416,322 | ||||||||
|
| |||||||
TOTAL METALS & MINING |
| 18,747,246 | ||||||
|
| |||||||
PAPER & FOREST PRODUCTS – 1.8% |
| |||||||
Forest Products – 0.6% | ||||||||
Boise Cascade Co. (a) | 6,338 | 172,203 | ||||||
Deltic Timber Corp. | 1,838 | 126,675 | ||||||
Louisiana-Pacific Corp. (a) | 23,243 | 469,509 | ||||||
|
| |||||||
768,387 | ||||||||
|
| |||||||
Paper Products – 1.2% | ||||||||
Clearwater Paper Corp. (a) | 2,842 | 178,790 | ||||||
Domtar Corp. | 10,161 | 400,039 | ||||||
KapStone Paper and Packaging Corp. | 14,979 | 213,900 | ||||||
Mercer International, Inc. | 7,373 | 58,173 | ||||||
Neenah Paper, Inc. | 2,737 | 206,452 | ||||||
PH Glatfelter Co. | 7,130 | 147,306 | ||||||
Resolute Forest Products, Inc. (a) | 10,249 | 56,574 | ||||||
Schweitzer-Mauduit International, Inc. | 4,973 | 188,029 | ||||||
|
| |||||||
1,449,263 | ||||||||
|
| |||||||
TOTAL PAPER & FOREST PRODUCTS |
| 2,217,650 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 123,079,652 | ||||||
|
| |||||||
Money Market Funds – 0.2% | ||||||||
SSgA US Treasury Money Market Fund, | 197,863 | 197,863 | ||||||
|
| |||||||
TOTAL INVESTMENT |
| 123,277,515 | ||||||
NET OTHER ASSETS |
| 47,137 | ||||||
|
| |||||||
NET ASSETS – 100% |
| $ | 123,324,652 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
See accompanying notes which are an integral part of the financial statements.
61 | Annual Report |
Fidelity MSCI Materials Index ETF
Investments – continued
Other Information
The following is a summary of the inputs used, as of July 31, 2016, 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 in the table 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: | ||||||||||||||||
Common Stocks | $ | 123,079,652 | $ | 123,079,652 | $ | — | $ | — | ||||||||
Money Market Funds | 197,863 | 197,863 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 123,277,515 | $ | 123,277,515 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 62 |
Fidelity MSCI Real Estate Index ETF
Investments July 31, 2016
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
REAL ESTATE INVESTMENT TRUSTS (REITS) – 97.2% |
| |||||||
Diversified REIT’s – 6.1% |
| |||||||
American Assets Trust, Inc. | 5,568 | $ | 255,460 | |||||
Cousins Properties, Inc. | 33,951 | 361,239 | ||||||
Empire State Realty Trust, Inc. Class A | 20,573 | 431,827 | ||||||
First Potomac Realty Trust | 11,059 | 111,807 | ||||||
Forest City Realty Trust, Inc. Class A | 41,443 | 980,127 | ||||||
Global Net Lease, Inc. | 29,909 | 261,106 | ||||||
Gramercy Property Trust | 72,177 | 721,048 | ||||||
Investors Real Estate Trust | 22,674 | 150,102 | ||||||
Lexington Realty Trust | 36,806 | 400,081 | ||||||
Liberty Property Trust | 24,728 | 1,023,245 | ||||||
NorthStar Realty Finance Corp. | 32,510 | 435,634 | ||||||
One Liberty Properties, Inc. | 2,445 | 61,174 | ||||||
PS Business Parks, Inc. | 3,469 | 384,677 | ||||||
RAIT Financial Trust | 11,461 | 36,331 | ||||||
Select Income REIT | 11,659 | 323,654 | ||||||
Spirit Realty Capital, Inc. | 80,891 | 1,105,780 | ||||||
STORE Capital Corp. | 25,682 | 801,022 | ||||||
VEREIT, Inc. | 145,707 | 1,611,519 | ||||||
Washington Real Estate Investment Trust | 12,690 | 435,140 | ||||||
Winthrop Realty Trust | 5,363 | 49,018 | ||||||
WP Carey, Inc. | 16,759 | 1,217,541 | ||||||
|
| |||||||
11,157,532 | ||||||||
|
| |||||||
Health Care REIT’s – 10.0% |
| |||||||
Care Capital Properties, Inc. | 14,463 | 427,816 | ||||||
CareTrust REIT, Inc. | 9,646 | 139,385 | ||||||
HCP, Inc. | 78,545 | 3,081,320 | ||||||
Healthcare Realty Trust, Inc. | 19,498 | 705,048 | ||||||
Healthcare Trust of America, Inc. Class A | 22,186 | 755,433 | ||||||
LTC Properties, Inc. | 6,436 | 344,519 | ||||||
Medical Properties Trust, Inc. | 40,604 | 637,483 | ||||||
National Health Investors, Inc. | 6,553 | 514,869 | ||||||
New Senior Investment Group, Inc. | 14,319 | 171,685 | ||||||
Omega Healthcare Investors, Inc. | 31,856 | 1,099,032 | ||||||
Physicians Realty Trust | 22,105 | 480,121 | ||||||
Sabra Health Care REIT, Inc. | 11,630 | 278,073 | ||||||
Senior Housing Properties Trust | 29,792 | 661,680 | ||||||
Universal Health Realty Income Trust | 112 | 6,683 | ||||||
Ventas, Inc. | 56,739 | 4,321,242 | ||||||
Welltower, Inc. | 59,940 | 4,755,040 | ||||||
|
| |||||||
18,379,429 | ||||||||
|
| |||||||
Hotel & Resort REIT’s – 4.1% |
| |||||||
Apple Hospitality REIT, Inc. | 28,089 | 572,173 | ||||||
Ashford Hospitality Prime, Inc. | 5,281 | 79,426 | ||||||
Ashford Hospitality Trust, Inc. | 17,160 | 102,274 | ||||||
Chatham Lodging Trust | 6,504 | 155,966 | ||||||
Chesapeake Lodging Trust | 10,733 | 271,223 | ||||||
DiamondRock Hospitality Co. | 35,667 | 350,250 | ||||||
FelCor Lodging Trust, Inc. | 10,511 | 66,745 | ||||||
Hersha Hospitality Trust | 8,246 | 155,849 |
Shares | Value | |||||||
Hospitality Properties Trust | 19,013 | $ | 606,705 | |||||
Host Hotels & Resorts, Inc. | 127,887 | 2,268,715 | ||||||
LaSalle Hotel Properties | 19,064 | 525,213 | ||||||
Pebblebrook Hotel Trust | 12,165 | 360,692 | ||||||
RLJ Lodging Trust | 21,765 | 516,701 | ||||||
Ryman Hospitality Properties, Inc. | 7,929 | 445,927 | ||||||
Summit Hotel Properties, Inc. | 15,446 | 219,024 | ||||||
Sunstone Hotel Investors, Inc. | 37,765 | 502,275 | ||||||
Xenia Hotels & Resorts, Inc. | 19,852 | 356,542 | ||||||
|
| |||||||
7,555,700 | ||||||||
|
| |||||||
Industrial REIT’s – 5.0% |
| |||||||
DCT Industrial Trust, Inc. | 15,151 | 760,883 | ||||||
Duke Realty Corp. | 58,684 | 1,689,512 | ||||||
EastGroup Properties, Inc. | 5,216 | 384,002 | ||||||
First Industrial Realty Trust, Inc. | 20,031 | 590,314 | ||||||
Monmouth Real Estate Investment Corp. Class A | 10,272 | 141,959 | ||||||
Prologis, Inc. | 88,712 | 4,833,917 | ||||||
Rexford Industrial Realty, Inc. | 11,190 | 255,803 | ||||||
STAG Industrial, Inc. | 11,532 | 292,682 | ||||||
Terreno Realty Corp. | 7,677 | 213,805 | ||||||
|
| |||||||
9,162,877 | ||||||||
|
| |||||||
Mortgage REIT’s – 5.1% |
| |||||||
AG Mortgage Investment Trust, Inc. | 5,590 | 83,738 | ||||||
Altisource Residential Corp. | 10,051 | 96,490 | ||||||
American Capital Agency Corp. | 54,438 | 1,066,440 | ||||||
American Capital Mortgage Investment Corp. | 8,368 | 136,901 | ||||||
Annaly Capital Management, Inc. | 171,643 | 1,884,640 | ||||||
Anworth Mortgage Asset Corp. | 18,987 | 93,416 | ||||||
Apollo Commercial Real Estate Finance, Inc. | 11,909 | 193,521 | ||||||
Apollo Residential Mortgage, Inc. | 5,831 | 79,127 | ||||||
ARMOUR Residential REIT, Inc. | 6,670 | 141,938 | ||||||
Blackstone Mortgage Trust, Inc. Class A | 16,056 | 465,785 | ||||||
Capstead Mortgage Corp. | 17,347 | 172,603 | ||||||
Chimera Investment Corp. | 30,067 | 504,524 | ||||||
Colony Financial, Inc. Class A | 15,427 | 274,292 | ||||||
CYS Investments, Inc. | 26,957 | 241,265 | ||||||
Dynex Capital, Inc. | 9,567 | 67,160 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 7,115 | 160,016 | ||||||
Invesco Mortgage Capital, Inc. | 20,113 | 289,627 | ||||||
iStar, Inc. (a) | 14,440 | 149,598 | ||||||
Ladder Capital Corp. | 8,572 | 111,950 | ||||||
MFA Financial, Inc. | 63,387 | 476,670 | ||||||
New Residential Investment Corp. | 39,567 | 540,881 | ||||||
New York Mortgage Trust, Inc. | 20,160 | 131,846 | ||||||
Newcastle Investment Corp. | 11,530 | 54,652 | ||||||
PennyMac Mortgage Investment Trust | 11,955 | 194,030 | ||||||
Redwood Trust, Inc. | 13,740 | 196,070 | ||||||
Resource Capital Corp. | 6,268 | 85,308 |
See accompanying notes which are an integral part of the financial statements.
63 | Annual Report |
Fidelity MSCI Real Estate Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE INVESTMENT TRUSTS (REITS) – continued |
| |||||||
Mortgage REIT’s – continued |
| |||||||
Starwood Property Trust, Inc. | 40,147 | $ | 875,205 | |||||
Two Harbors Investment Corp. | 59,525 | 520,844 | ||||||
United Development Funding IV | 1,811 | 5,795 | ||||||
Western Asset Mortgage Capital Corp. | 7,713 | 75,896 | ||||||
|
| |||||||
9,370,228 | ||||||||
|
| |||||||
Office REIT’s – 10.1% |
| |||||||
Alexandria Real Estate Equities, Inc. | 12,452 | 1,398,360 | ||||||
Boston Properties, Inc. | 25,938 | 3,686,568 | ||||||
Brandywine Realty Trust | 30,586 | 515,986 | ||||||
Columbia Property Trust, Inc. | 20,502 | 498,199 | ||||||
Corporate Office Properties Trust | 16,328 | 489,187 | ||||||
Douglas Emmett, Inc. | 23,602 | 897,820 | ||||||
Easterly Government Properties, Inc. | 5,371 | 110,052 | ||||||
Equity Commonwealth (a) | 20,793 | 624,206 | ||||||
Franklin Street Properties Corp. | 16,023 | 205,415 | ||||||
Government Properties Income Trust | 1,943 | 46,360 | ||||||
Highwoods Properties, Inc. | 16,277 | 906,954 | ||||||
Hudson Pacific Properties, Inc. | 18,608 | 629,136 | ||||||
Kilroy Realty Corp. | 15,821 | 1,158,255 | ||||||
Mack-Cali Realty Corp. | 15,000 | 423,000 | ||||||
New York REIT, Inc. | 29,471 | 281,153 | ||||||
NorthStar Realty Europe Corp. | 11,964 | 110,667 | ||||||
Paramount Group, Inc. | 29,677 | 523,205 | ||||||
Parkway Properties, Inc. | 15,153 | 263,208 | ||||||
Piedmont Office Realty Trust, Inc. Class A | 24,554 | 538,715 | ||||||
SL Green Realty Corp. | 17,032 | 2,006,710 | ||||||
Tier REIT, Inc. | 8,659 | 150,926 | ||||||
Vornado Realty Trust | 28,669 | 3,079,051 | ||||||
|
| |||||||
18,543,133 | ||||||||
|
| |||||||
Residential REIT’s – 12.1% |
| |||||||
American Campus Communities, Inc. | 22,110 | 1,195,488 | ||||||
American Homes 4 Rent Class A | 29,477 | 639,651 | ||||||
Apartment Investment & Management Co. Class A | 26,464 | 1,216,550 | ||||||
AvalonBay Communities, Inc. | 23,129 | 4,293,899 | ||||||
Camden Property Trust | 14,651 | 1,312,583 | ||||||
Colony Starwood Homes | 7,337 | 240,360 | ||||||
Education Realty Trust, Inc. | 10,689 | 514,568 | ||||||
Equity Lifestyle Properties, Inc. | 13,623 | 1,120,356 | ||||||
Equity Residential | 61,583 | 4,187,028 | ||||||
Essex Property Trust, Inc. | 11,055 | 2,585,543 | ||||||
Mid-America Apartment Communities, Inc. | 12,771 | 1,353,981 | ||||||
Monogram Residential Trust, Inc. | 27,819 | 297,942 | ||||||
Post Properties, Inc. | 9,139 | 581,149 | ||||||
Silver Bay Realty Trust Corp. | 5,814 | 104,768 | ||||||
Sun Communities, Inc. | 10,257 | 811,842 | ||||||
UDR, Inc. | 44,291 | 1,648,954 | ||||||
|
| |||||||
22,104,662 | ||||||||
|
|
Shares | Value | |||||||
Retail REIT’s – 20.1% |
| |||||||
Acadia Realty Trust | 11,971 | $ | 450,828 | |||||
Agree Realty Corp. | 4,039 | 204,858 | ||||||
Alexander’s, Inc. | 397 | 170,420 | ||||||
Brixmor Property Group, Inc. | 40,838 | 1,159,799 | ||||||
CBL & Associates Properties, Inc. | 30,375 | 373,309 | ||||||
Cedar Realty Trust, Inc. | 15,455 | 124,258 | ||||||
DDR Corp. | 52,972 | 1,045,667 | ||||||
Equity One, Inc. | 15,723 | 523,104 | ||||||
Federal Realty Investment Trust | 11,782 | 1,999,406 | ||||||
General Growth Properties, Inc. | 97,314 | 3,109,182 | ||||||
Getty Realty Corp. | 4,950 | 112,464 | ||||||
Kimco Realty Corp. | 69,927 | 2,244,657 | ||||||
Kite Realty Group Trust | 14,467 | 439,942 | ||||||
National Retail Properties, Inc. | 24,162 | 1,284,452 | ||||||
Pennsylvania Real Estate Investment Trust | 12,436 | 316,372 | ||||||
Ramco-Gershenson Properties Trust | 13,955 | 276,867 | ||||||
Realty Income Corp. | 42,299 | 3,023,110 | ||||||
Regency Centers Corp. | 16,525 | 1,403,468 | ||||||
Retail Opportunity Investments Corp. | 18,459 | 421,419 | ||||||
Retail Properties of America, Inc. Class A | 40,337 | 711,141 | ||||||
Saul Centers, Inc. | 2,150 | 144,416 | ||||||
Seritage Growth Properties, Class A | 3,979 | 199,189 | ||||||
Simon Property Group, Inc. | 52,177 | 11,846,266 | ||||||
Tanger Factory Outlet Centers | 16,168 | 674,852 | ||||||
Taubman Centers, Inc. | 9,933 | 803,778 | ||||||
The Macerich Co. | 21,438 | 1,913,127 | ||||||
Urban Edge Properties | 16,741 | 500,723 | ||||||
Urstadt Biddle Properties, Inc. Class A | 4,079 | 100,751 | ||||||
Weingarten Realty Investors | 19,866 | 858,013 | ||||||
WP Glimcher, Inc. | 31,288 | 396,732 | ||||||
|
| |||||||
36,832,570 | ||||||||
|
| |||||||
Specialized REIT’s – 24.6% |
| |||||||
American Tower Corp. | 71,510 | 8,278,713 | ||||||
CatchMark Timber Trust, Inc. Class A | 7,366 | 89,202 | ||||||
Communications Sales & Leasing, | 25,780 | 801,242 | ||||||
CoreSite Realty Corp. | 5,164 | 426,185 | ||||||
Corrections Corp. of America | 19,945 | 639,237 | ||||||
Crown Castle International Corp. | 56,325 | 5,465,215 | ||||||
CubeSmart | 29,641 | 880,634 | ||||||
CyrusOne, Inc. | 11,982 | 656,853 | ||||||
Digital Realty Trust, Inc. | 25,150 | 2,627,169 | ||||||
DuPont Fabros Technology, Inc. | 12,380 | 592,135 | ||||||
EPR Properties | 10,751 | 903,299 | ||||||
Equinix, Inc. | 11,636 | 4,338,715 | ||||||
Extra Space Storage, Inc. | 20,989 | 1,805,474 | ||||||
Four Corners Property Trust, Inc. | 7,329 | 159,113 | ||||||
Gaming and Leisure Properties, Inc. | 32,630 | 1,169,133 | ||||||
InfraREIT, Inc. (a) | 6,639 | 117,245 | ||||||
Iron Mountain, Inc. | 42,620 | 1,756,370 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 64 |
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE INVESTMENT TRUSTS (REITS) – continued |
| |||||||
Specialized REIT’s – continued |
| |||||||
Lamar Advertising Co. Class A | 13,926 | $ | 945,018 | |||||
National Storage Affiliates Trust | 5,743 | 122,728 | ||||||
Outfront Media, Inc. | 23,545 | 547,892 | ||||||
Potlatch Corp. | 7,033 | 269,012 | ||||||
Public Storage | 24,829 | 5,932,145 | ||||||
QTS Realty Trust, Inc. Class A | 7,852 | 449,527 | ||||||
Rayonier, Inc. | 21,285 | 579,378 | ||||||
Sovran Self Storage, Inc. | 7,718 | 790,092 | ||||||
The Geo Group, Inc. | 12,654 | 437,955 | ||||||
Weyerhaeuser Co. | 133,632 | 4,372,439 | ||||||
|
| |||||||
45,152,120 | ||||||||
|
| |||||||
TOTAL REAL ESTATE INVESTMENT TRUSTS (REITS) |
| 178,258,251 | ||||||
|
| |||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT – 2.6% |
| |||||||
Diversified Real Estate Activities – 0.3% |
| |||||||
Alexander & Baldwin, Inc. | 7,912 | 311,733 | ||||||
Tejon Ranch Co. (a) | 3,657 | 96,069 | ||||||
The RMR Group, Inc. Class A | 1,334 | 45,416 | ||||||
The St Joe Co. (a) | 2,134 | 39,330 | ||||||
|
| |||||||
492,548 | ||||||||
|
| |||||||
Real Estate Development – 0.4% |
| |||||||
Forestar Group, Inc. (a) | 6,032 | 74,073 | ||||||
The Howard Hughes Corp. (a) | 6,186 | 738,980 | ||||||
|
| |||||||
813,053 | ||||||||
|
| |||||||
Real Estate Operating Companies – 0.1% |
| |||||||
Kennedy-Wilson Holdings, Inc. | 13,455 | 283,228 | ||||||
|
|
Shares | Value | |||||||
Real Estate Services – 1.8% |
| |||||||
Altisource Portfolio Solutions S.A. (a) | 2,677 | $ | 62,267 | |||||
CBRE Group, Inc. Class A (a) | 51,361 | 1,461,220 | ||||||
HFF, Inc. Class A | 6,700 | 189,007 | ||||||
Jones Lang LaSalle, Inc. | 6,376 | 697,981 | ||||||
Marcus & Millichap, Inc. (a) | 3,167 | 84,844 | ||||||
RE/MAX Holdings, Inc. Class A | 3,384 | 146,595 | ||||||
Realogy Holdings Corp. (a) | 20,461 | 634,086 | ||||||
|
| |||||||
3,276,000 | ||||||||
|
| |||||||
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT |
| 4,864,829 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 183,123,080 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
SSgA US Treasury Money Market Fund, 0.11% (b) | 109,353 | 109,353 | ||||||
|
| |||||||
TOTAL INVESTMENT |
| 183,232,433 | ||||||
NET OTHER ASSETS |
| 161,809 | ||||||
|
| |||||||
NET ASSETS – 100% |
| $ | 183,394,242 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Other Information
The following is a summary of the inputs used, as of July 31, 2016, 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 in the table 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: | ||||||||||||||||
Common Stocks | $ | 183,123,080 | $ | 183,117,285 | $ | — | $ | 5,795 | ||||||||
Money Market Funds | 109,353 | 109,353 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 183,232,433 | $ | 183,226,638 | $ | — | $ | 5,795 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
65 | Annual Report |
Fidelity MSCI Telecommunication Services Index ETF
Investments July 31, 2016
Showing Percentage of Net Assets
Common Stocks – 100.0% | ||||||||
Shares | Value | |||||||
DIVERSIFIED TELECOMMUNICATION SERVICES – 83.4% |
| |||||||
Alternative Carriers – 15.9% | ||||||||
Cogent Communications Holdings, Inc. | 76,634 | $ | 3,274,572 | |||||
Globalstar, Inc. (a) | 1,226,923 | 1,460,038 | ||||||
Inteliquent, Inc. | 124,461 | 2,557,674 | ||||||
Iridium Communications, Inc. (a) | 295,157 | 2,650,510 | ||||||
Level 3 Communications, Inc. (a) | 134,154 | 6,788,192 | ||||||
Lumos Networks Corp. (a) | 175,237 | 2,050,273 | ||||||
ORBCOMM, Inc. (a) | 311,068 | 3,294,210 | ||||||
pdvWireless, Inc. (a) | 76,575 | 1,646,362 | ||||||
Straight Path Communications, Inc. (a) | 79,840 | 1,456,282 | ||||||
Vonage Holdings Corp. (a) | 451,303 | 2,676,227 | ||||||
|
| |||||||
27,854,340 | ||||||||
|
| |||||||
Integrated Telecommunication Services – 67.5% |
| |||||||
AT&T, Inc. | 943,625 | 40,849,526 | ||||||
ATN International Inc. | 30,133 | 2,215,378 | ||||||
CenturyLink, Inc. | 235,829 | 7,414,464 | ||||||
Cincinnati Bell, Inc. (a) | 687,188 | 3,435,940 | ||||||
Consolidated Communications Holdings, Inc. | 109,889 | 3,071,398 | ||||||
FairPoint Communications, Inc. (a) | 149,517 | 2,420,680 | ||||||
Frontier Communications Corp. | 740,767 | 3,851,988 | ||||||
General Communication, Inc. Class A (a) | 118,291 | 1,820,499 | ||||||
IDT Corp. Class B | 170,324 | 2,599,144 | ||||||
SBA Communications Corp. | 59,263 | 6,815,245 | ||||||
Verizon Communications, Inc. | 731,049 | 40,507,425 | ||||||
Windstream Holding, Inc. | 336,400 | 3,131,884 | ||||||
|
| |||||||
118,133,571 | ||||||||
|
| |||||||
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES |
| 145,987,911 | ||||||
|
|
Shares | Value | |||||||
WIRELESS TELECOMMUNICATION SERVICES – 16.6% |
| |||||||
Wireless Telecommunication Services – 16.6% |
| |||||||
Boingo Wireless, Inc. (a) | 344,474 | $ | 3,155,382 | |||||
Contra Leap Wireless (a) | 18,242 | 59,834 | ||||||
NII Holdings, Inc. (a) | 503,021 | 1,529,184 | ||||||
Shenandoah Telecommunications Co. | 100,425 | 4,125,459 | ||||||
Spok Holdings, Inc. | 122,738 | 2,268,198 | ||||||
Sprint Corp. (a) | 907,351 | 5,571,135 | ||||||
T-Mobile US, Inc. (a) | 141,983 | 6,579,492 | ||||||
Telephone & Data Systems, Inc. | 108,281 | 3,409,769 | ||||||
United States Cellular Corp. (a) | 56,134 | 2,270,620 | ||||||
|
| |||||||
TOTAL WIRELESS TELECOMMUNICATION SERVICES |
| 28,969,073 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 174,956,984 | ||||||
|
| |||||||
Money Market Funds – 0.2% | ||||||||
SSgA US Treasury Money Market Fund, | 247,379 | 247,379 | ||||||
|
| |||||||
TOTAL INVESTMENT |
| 175,204,363 | ||||||
NET OTHER ASSETS |
| (264,824 | ) | |||||
|
| |||||||
NET ASSETS – 100% |
| $ | 174,939,539 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Other Information
The following is a summary of the inputs used, as of July 31, 2016, 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 in the table 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: | ||||||||||||||||
Common Stocks | $ | 174,956,984 | $ | 174,897,150 | $ | — | $ | 59,834 | ||||||||
Money Market Funds | 247,379 | 247,379 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 175,204,363 | $ | 175,144,529 | $ | — | $ | 59,834 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 66 |
Fidelity MSCI Utilities Index ETF
Investments July 31, 2016
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
ELECTRIC UTILITIES – 57.6% | ||||||||
Electric Utilities – 57.6% | ||||||||
ALLETE, Inc. | 16,741 | $ | 1,068,913 | |||||
Alliant Energy Corp. | 81,439 | 3,277,920 | ||||||
American Electric Power Co., Inc. | 176,225 | 12,212,393 | ||||||
Duke Energy Corp. | 247,037 | 21,143,897 | ||||||
Edison International | 116,925 | 9,047,657 | ||||||
El Paso Electric Co. | 14,527 | 692,647 | ||||||
Empire District Electric Co. | 14,943 | 504,027 | ||||||
Entergy Corp. | 64,054 | 5,213,355 | ||||||
Eversource Energy | 113,836 | 6,658,268 | ||||||
Exelon Corp. | 330,116 | 12,306,724 | ||||||
FirstEnergy Corp. | 152,036 | 5,309,097 | ||||||
Great Plains Energy, Inc. | 55,415 | 1,650,259 | ||||||
Hawaiian Electric Industries, Inc. | 38,629 | 1,199,430 | ||||||
IDACORP, Inc. | 18,054 | 1,459,666 | ||||||
ITC Holdings Corp. | 54,797 | 2,534,361 | ||||||
MGE Energy, Inc. | 12,447 | 698,899 | ||||||
NextEra Energy, Inc. | 165,289 | 21,204,926 | ||||||
OGE Energy Corp. | 71,663 | 2,305,399 | ||||||
Otter Tail Corp. | 12,204 | 425,309 | ||||||
PG&E Corp. | 176,868 | 11,308,940 | ||||||
Pinnacle West Capital Corp. | 39,840 | 3,142,181 | ||||||
PNM Resources, Inc. | 28,581 | 982,043 | ||||||
Portland General Electric Co. | 31,872 | 1,391,850 | ||||||
PPL Corp. | 241,823 | 9,119,145 | ||||||
The Southern Co. | 327,577 | 17,525,369 | ||||||
Westar Energy, Inc. | 50,829 | 2,824,568 | ||||||
Xcel Energy, Inc. | 182,144 | 8,010,693 | ||||||
|
| |||||||
TOTAL ELECTRIC UTILITIES |
| 163,217,936 | ||||||
|
| |||||||
GAS UTILITIES – 6.5% | ||||||||
Gas Utilities – 6.5% | ||||||||
Atmos Energy Corp. | 36,629 | 2,922,628 | ||||||
Chesapeake Utilities Corp. | 5,474 | 350,719 | ||||||
National Fuel Gas Co. | 25,862 | 1,461,462 | ||||||
New Jersey Resources Corp. | 30,825 | 1,147,923 | ||||||
Northwest Natural Gas Co. | 9,840 | 639,010 | ||||||
ONE Gas, Inc. | 18,765 | 1,218,974 | ||||||
Piedmont Natural Gas Co., Inc. | 29,164 | 1,744,007 | ||||||
Questar Corp. | 62,810 | 1,580,928 | ||||||
South Jersey Industries, Inc. | 28,150 | 897,422 | ||||||
Southwest Gas Corp. | 17,035 | 1,320,212 | ||||||
Spire, Inc. | 15,578 | 1,081,113 | ||||||
UGI Corp. | 61,691 | 2,792,135 | ||||||
WGL Holdings, Inc. | 17,891 | 1,266,504 | ||||||
|
| |||||||
TOTAL GAS UTILITIES |
| 18,423,037 | ||||||
|
| |||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS – 3.4% |
| |||||||
Independent Power Producers & Energy Traders – 2.7% |
| |||||||
AES Corp. | 236,749 | 2,923,850 | ||||||
Calpine Corp. (a) | 121,580 | 1,670,509 |
Shares | Value | |||||||
Dynegy, Inc. (a) | 35,656 | $ | 539,475 | |||||
NRG Energy, Inc. | 113,005 | 1,563,989 | ||||||
NRG Yield, Inc. Class A | 12,492 | 214,613 | ||||||
NRG Yield, Inc. Class C | 22,431 | 402,412 | ||||||
Talen Energy Corp. (a) | 23,175 | 315,180 | ||||||
|
| |||||||
7,630,028 | ||||||||
|
| |||||||
Renewable Electricity – 0.7% | ||||||||
8Point3 Energy Partners LP | 6,992 | 115,578 | ||||||
NextEra Energy Partners LP | 14,513 | 453,241 | ||||||
Ormat Technologies, Inc. | 13,215 | 603,133 | ||||||
Pattern Energy Group, Inc. | 21,446 | 522,639 | ||||||
TerraForm Global, Inc. Class A (a) | 29,283 | 101,905 | ||||||
TerraForm Power, Inc. Class A (a) | 17,306 | 203,518 | ||||||
|
| |||||||
2,000,014 | ||||||||
|
| |||||||
TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS |
| 9,630,042 | ||||||
|
| |||||||
MULTI-UTILITIES – 29.0% | ||||||||
Multi-Utilities – 29.0% | ||||||||
Ameren Corp. | 87,066 | 4,565,741 | ||||||
Avista Corp. | 22,431 | 975,749 | ||||||
Black Hills Corp. | 18,378 | 1,158,733 | ||||||
CenterPoint Energy, Inc. | 146,685 | 3,508,705 | ||||||
CMS Energy Corp. | 99,747 | 4,506,569 | ||||||
Consolidated Edison, Inc. | 105,351 | 8,436,508 | ||||||
Dominion Resources, Inc. | 214,022 | 16,697,996 | ||||||
DTE Energy Co. | 64,405 | 6,280,776 | ||||||
MDU Resources Group, Inc. | 66,568 | 1,600,960 | ||||||
NiSource, Inc. | 115,092 | 2,953,261 | ||||||
NorthWestern Corp. | 17,282 | 1,049,709 | ||||||
Public Service Enterprise Group, Inc. | 181,732 | 8,361,489 | ||||||
SCANA Corp. | 48,718 | 3,650,927 | ||||||
Sempra Energy | 84,966 | 9,505,996 | ||||||
Unitil Corp. | 4,786 | 209,340 | ||||||
Vectren Corp. | 29,706 | 1,536,691 | ||||||
WEC Energy Group, Inc. | 113,269 | 7,352,291 | ||||||
|
| |||||||
TOTAL MULTI-UTILITIES |
| 82,351,441 | ||||||
|
| |||||||
WATER UTILITIES – 3.3% | ||||||||
Water Utilities – 3.3% | ||||||||
American States Water Co. | 13,119 | 566,741 | ||||||
American Water Works Co., Inc. | 63,881 | 5,275,293 | ||||||
Aqua America, Inc. | 63,590 | 2,202,758 | ||||||
California Water Service Group | 17,186 | 579,684 | ||||||
Connecticut Water Service, Inc. | 4,016 | 205,017 | ||||||
Middlesex Water Co. | 5,798 | 239,515 |
See accompanying notes which are an integral part of the financial statements.
67 | Annual Report |
Fidelity MSCI Utilities Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
WATER UTILITIES – continued |
| |||||||
Water Utilities – continued |
| |||||||
SJW Corp. | 5,521 | $ | 233,869 | |||||
The York Water Co. | 4,636 | 145,756 | ||||||
|
| |||||||
TOTAL WATER UTILITIES |
| 9,448,633 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 283,071,089 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
Shares | Value | |||||||
SSgA US Treasury Money Market Fund, | 443,617 | $ | 443,617 | |||||
|
| |||||||
TOTAL INVESTMENT |
| 283,514,706 | ||||||
NET OTHER ASSETS |
| 154,639 | ||||||
|
| |||||||
NET ASSETS – 100% |
| $ | 283,669,345 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Other Information
The following is a summary of the inputs used, as of July 31, 2016, 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 in the table 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: | ||||||||||||||||
Common Stocks | $ | 283,071,089 | $ | 283,071,089 | $ | — | $ | — | ||||||||
Money Market Funds | 443,617 | 443,617 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 283,514,706 | $ | 283,514,706 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 68 |
[THIS PAGE INTENTIONALLY LEFT BLANK]
69 | Annual Report |
Statements of Assets and Liabilities | ||||||||||||||||
July 31, 2016 | ||||||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | Fidelity MSCI Consumer Staples Index ETF | Fidelity MSCI Energy Index ETF | Fidelity MSCI Financials Index ETF | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at value – See accompanying schedule | $ | 262,199,515 | $ | 285,148,285 | $ | 429,972,600 | $ | 237,204,105 | ||||||||
Cash | — | — | — | 551 | ||||||||||||
Receivable for investments sold | 48,962 | 928,254 | 8,814,954 | — | ||||||||||||
Dividends receivable | 111,884 | 449,009 | 274,454 | 302,801 | ||||||||||||
Interest receivable | 16 | 22 | 48 | 23 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 262,360,377 | 286,525,570 | 439,062,056 | 237,507,480 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Payable for investments purchased | 20,680 | 1,000,916 | 8,991,011 | — | ||||||||||||
Accrued management fees | 18,190 | 20,922 | 31,895 | 17,579 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 38,870 | 1,021,838 | 9,022,906 | 17,579 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 262,321,507 | $ | 285,503,732 | $ | 430,039,150 | $ | 237,489,901 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets consist of: | ||||||||||||||||
Paid in capital | $ | 273,135,310 | $ | 268,464,545 | $ | 501,421,761 | $ | 250,672,467 | ||||||||
Undistributed net investment income | 30,956 | 442,592 | 171,537 | — | ||||||||||||
Accumulated undistributed net realized gain (loss) on investments | (3,425,267 | ) | (3,884,192 | ) | (34,584,106 | ) | (3,127,015 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | (7,419,492 | ) | 20,480,787 | (36,970,042 | ) | (10,055,551 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 262,321,507 | $ | 285,503,732 | $ | 430,039,150 | $ | 237,489,901 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 8,200,000 | 8,700,000 | 22,600,000 | 8,300,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Asset Value, offering price and redemption price per share | $ | 31.99 | $ | 32.82 | $ | 19.03 | $ | 28.61 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Investments at cost | $ | 269,619,007 | $ | 264,667,498 | $ | 466,942,642 | $ | 247,259,656 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 70 |
Statements of Assets and Liabilities | ||||||||||||||||
July 31, 2016 | ||||||||||||||||
Fidelity MSCI Health Care Index ETF | Fidelity MSCI Industrials Index ETF | Fidelity MSCI Information Technology Index ETF | Fidelity MSCI Materials Index ETF | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at value – See accompanying schedule | $ | 641,525,010 | $ | 157,961,330 | $ | 431,401,070 | $ | 123,277,515 | ||||||||
Cash | 262,384 | — | 44,162 | — | ||||||||||||
Receivable for investments sold | — | — | 20,286 | — | ||||||||||||
Dividends receivable | 382,749 | 99,736 | 70,062 | 55,566 | ||||||||||||
Interest receivable | 34 | 14 | 47 | 8 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 642,170,177 | 158,061,080 | 431,535,627 | 123,333,089 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Payable for investments purchased | — | — | 114,215 | — | ||||||||||||
Accrued management fees | 45,851 | 11,606 | 30,044 | 8,437 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 45,851 | 11,606 | 144,259 | 8,437 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 642,124,326 | $ | 158,049,474 | $ | 431,391,368 | $ | 123,324,652 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets consist of: | ||||||||||||||||
Paid in capital | $ | 628,792,233 | $ | 159,229,290 | $ | 423,174,922 | $ | 126,056,891 | ||||||||
Undistributed net investment income | 311,841 | 42,250 | 123,377 | 59,896 | ||||||||||||
Accumulated undistributed net realized gain (loss) on investments | (8,294,955 | ) | (2,129,608 | ) | (5,227,200 | ) | (2,209,242 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | 21,315,207 | 907,542 | 13,320,269 | (582,893 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 642,124,326 | $ | 158,049,474 | $ | 431,391,368 | $ | 123,324,652 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 18,000,000 | 5,250,000 | 12,350,000 | 4,450,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Asset Value, offering price and redemption price per share | $ | 35.67 | $ | 30.10 | $ | 34.93 | $ | 27.71 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Investments at cost | $ | 620,209,803 | $ | 157,053,788 | $ | 418,080,801 | $ | 123,860,408 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
71 | Annual Report |
Financial Statements – continued
Statements of Assets and Liabilities | ||||||||||||
July 31, 2016 | ||||||||||||
Fidelity MSCI Real Estate Index ETF | Fidelity MSCI Telecommunication Services Index ETF | Fidelity MSCI Utilities Index ETF | ||||||||||
Assets | ||||||||||||
Investments in securities, at value – See accompanying schedule | $ | 183,232,433 | $ | 175,204,363 | $ | 283,514,706 | ||||||
Cash | 33,224 | — | 17,842 | |||||||||
Receivable for investments sold | — | 2,798,906 | — | |||||||||
Receivable for fund shares sold | 93,254 | — | — | |||||||||
Dividends receivable | 119,671 | 855,554 | 156,974 | |||||||||
Interest receivable | 23 | 21 | 50 | |||||||||
|
|
|
|
|
| |||||||
Total assets | 183,478,605 | 178,858,844 | 283,689,572 | |||||||||
|
|
|
|
|
| |||||||
Liabilities | ||||||||||||
Payable for investments purchased | 72,864 | 3,906,796 | — | |||||||||
Accrued management fees | 11,499 | 12,509 | 20,227 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 84,363 | 3,919,305 | 20,227 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 183,394,242 | $ | 174,939,539 | $ | 283,669,345 | ||||||
|
|
|
|
|
| |||||||
Net Assets consist of: | ||||||||||||
Paid in capital | $ | 171,066,866 | $ | 152,671,619 | $ | 265,265,339 | ||||||
Undistributed net investment income | — | 703,699 | 34,058 | |||||||||
Accumulated undistributed net realized gain (loss) on investments | (834,695 | ) | (1,573,891 | ) | (2,421,740 | ) | ||||||
Net unrealized appreciation (depreciation) on investments | 13,162,071 | 23,138,112 | 20,791,688 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 183,394,242 | $ | 174,939,539 | $ | 283,669,345 | ||||||
|
|
|
|
|
| |||||||
Shares outstanding | 7,100,000 | 5,450,000 | 8,450,000 | |||||||||
|
|
|
|
|
| |||||||
Net Asset Value, offering price and redemption price per share | $ | 25.83 | $ | 32.10 | $ | 33.57 | ||||||
|
|
|
|
|
| |||||||
Investments at cost | $ | 170,070,362 | $ | 152,066,251 | $ | 262,723,018 | ||||||
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 72 |
Statements of Operations | ||||||||||||||||
For the year ended July 31, 2016 | ||||||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | Fidelity MSCI Consumer Staples Index ETF | Fidelity MSCI Energy Index ETF | Fidelity MSCI Financials Index ETF | |||||||||||||
Investment Income | ||||||||||||||||
Dividends | $ | 3,977,345 | $ | 6,299,145 | $ | 9,166,097 | $ | 5,908,953 | ||||||||
Interest | 154 | 158 | 190 | 127 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total income | 3,977,499 | 6,299,303 | 9,166,287 | 5,909,080 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses | ||||||||||||||||
Management fees | 299,816 | 281,236 | 365,221 | 280,839 | ||||||||||||
Independent trustees’ compensation | 5,311 | 4,862 | 6,264 | 5,014 | ||||||||||||
Miscellaneous | — | — | 2,100 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 305,127 | 286,098 | 373,585 | 285,853 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 3,672,372 | 6,013,205 | 8,792,702 | 5,623,227 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) on investment securities | (3,073,552 | ) | (4,130,899 | ) | (29,214,740 | ) | (2,325,387 | ) | ||||||||
Net realized gain (loss) on In-kind redemptions | 12,689,085 | 10,985,287 | 1,769,873 | (3,355,918 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total net realized gain (loss) | 9,615,533 | 6,854,388 | (27,444,867 | ) | (5,681,305 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation (depreciation) on investment securities | (22,169,428 | ) | 12,152,519 | 29,635,964 | (18,501,301 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net gain (loss) | (12,553,895 | ) | 19,006,907 | 2,191,097 | (24,182,606 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | $ | (8,881,523 | ) | $ | 25,020,112 | $ | 10,983,799 | $ | (18,559,379 | ) | ||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
73 | Annual Report |
Financial Statements – continued
Statements of Operations | ||||||||||||||||
For the year ended July 31, 2016 | ||||||||||||||||
Fidelity MSCI Health Care Index ETF | Fidelity MSCI Industrials Index ETF | Fidelity MSCI Information Technology Index ETF | Fidelity MSCI Materials Index ETF | |||||||||||||
Investment Income | ||||||||||||||||
Dividends | $ | 9,348,817 | $ | 2,590,196 | $ | 5,844,442 | $ | 1,571,157 | ||||||||
Interest | 315 | 83 | 245 | 43 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total income | 9,349,132 | 2,590,279 | 5,844,687 | 1,571,200 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses | ||||||||||||||||
Management fees | 756,865 | 142,858 | 433,947 | 83,781 | ||||||||||||
Independent trustees’ compensation | 13,414 | 2,495 | 7,636 | 1,463 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 770,279 | 145,353 | 441,583 | 85,244 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 8,578,853 | 2,444,926 | 5,403,104 | 1,485,956 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) on investment securities | (8,688,646 | ) | (925,333 | ) | (3,797,729 | ) | (1,077,051 | ) | ||||||||
Net realized gain (loss) on In-kind redemptions | 24,715,761 | (2,227,763 | ) | 20,708,343 | (14,453,991 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total net realized gain (loss) | 16,027,115 | (3,153,096 | ) | 16,910,614 | (15,531,042 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation (depreciation) on investment securities | (72,464,270 | ) | 7,067,172 | (9,630,663 | ) | 12,480,147 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net gain (loss) | (56,437,155 | ) | 3,914,076 | 7,279,951 | (3,050,895 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | $ | (47,858,302 | ) | $ | 6,359,002 | $ | 12,683,055 | $ | (1,564,939 | ) | ||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 74 |
Statements of Operations | ||||||||||||
For the year ended July 31, 2016 | ||||||||||||
Fidelity MSCI Real Estate Index ETF | Fidelity MSCI Telecommunication Services Index ETF | Fidelity MSCI Utilities Index ETF | ||||||||||
Investment Income | ||||||||||||
Dividends | $ | 2,193,089 | $ | 3,090,672 | $ | 6,311,573 | ||||||
Interest | 51 | 73 | 198 | |||||||||
|
|
|
|
|
| |||||||
Total income | 2,193,140 | 3,090,745 | 6,311,771 | |||||||||
|
|
|
|
|
| |||||||
Expenses | ||||||||||||
Management fees | 66,165 | 122,465 | 213,261 | |||||||||
Independent trustees’ compensation | 992 | 2,054 | 3,558 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 67,157 | 124,519 | 216,819 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | 2,125,983 | 2,966,226 | 6,094,952 | |||||||||
|
|
|
|
|
| |||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) on investment securities | (753,570 | ) | (852,312 | ) | (1,931,286 | ) | ||||||
Net realized gain (loss) on In-kind redemptions | 1,638,416 | 2,328,518 | 4,446,992 | |||||||||
|
|
|
|
|
| |||||||
Total net realized gain (loss) | 884,846 | 1,476,206 | 2,515,706 | |||||||||
|
|
|
|
|
| |||||||
Change in net unrealized appreciation (depreciation) on investment securities | 14,803,602 | 23,239,724 | 33,486,490 | |||||||||
|
|
|
|
|
| |||||||
Net gain (loss) | 15,688,448 | 24,715,930 | 36,002,196 | |||||||||
|
|
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | $ | 17,814,431 | $ | 27,682,156 | $ | 42,097,148 | ||||||
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
75 | Annual Report |
Financial Statements – continued
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | Fidelity MSCI Consumer Staples Index ETF | |||||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2016 | Year ended July 31, 2015 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 3,672,372 | $ | 2,507,741 | $ | 6,013,205 | $ | 4,343,907 | ||||||||
Net realized gain (loss) | 9,615,533 | 9,513,098 | 6,854,388 | 11,413,454 | ||||||||||||
Change in net unrealized appreciation (depreciation) | (22,169,428 | ) | 13,954,185 | 12,152,519 | 11,637,539 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (8,881,523 | ) | 25,975,024 | 25,020,112 | 27,394,900 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders from net investment income | (3,868,300 | ) | (2,306,850 | ) | (5,920,950 | ) | (4,188,550 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 202,257,883 | 425,654,394 | 220,278,658 | 229,055,775 | ||||||||||||
Cost of shares redeemed | (226,980,453 | ) | (225,269,937 | ) | (158,470,480 | ) | (120,909,594 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | (24,722,570 | ) | 200,384,457 | 61,808,178 | 108,146,181 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | (37,472,393 | ) | 224,052,631 | 80,907,340 | 131,352,531 | |||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 299,793,900 | 75,741,269 | 204,596,392 | 73,243,861 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 262,321,507 | $ | 299,793,900 | $ | 285,503,732 | $ | 204,596,392 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of year | $ | 30,956 | $ | 226,884 | $ | 442,592 | $ | 349,432 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 6,500,000 | 14,550,000 | 7,350,000 | 8,050,000 | ||||||||||||
Redeemed | (7,650,000 | ) | (8,050,000 | ) | (5,400,000 | ) | (4,100,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (1,150,000 | ) | 6,500,000 | 1,950,000 | 3,950,000 | |||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 76 |
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Energy Index ETF | Fidelity MSCI Financials Index ETF | |||||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2016 | Year ended July 31, 2015 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 8,792,702 | $ | 5,757,206 | $ | 5,623,227 | $ | 4,608,688 | ||||||||
Net realized gain (loss) | (27,444,867 | ) | (4,091,479 | ) | (5,681,305 | ) | 12,920,591 | |||||||||
Change in net unrealized appreciation (depreciation) | 29,635,964 | (69,086,985 | ) | (18,501,301 | ) | 7,522,639 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 10,983,799 | (67,421,258 | ) | (18,559,379 | ) | 25,051,918 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders from net investment income | (8,829,100 | ) | (5,436,900 | ) | (5,983,150 | ) | (4,778,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 180,786,099 | 387,551,304 | 121,969,148 | 397,233,968 | ||||||||||||
Cost of shares redeemed | (9,300,501 | ) | (203,719,287 | ) | (203,948,262 | ) | (199,893,224 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 171,485,598 | 183,832,017 | (81,979,114 | ) | 197,340,744 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 173,640,297 | 110,973,859 | (106,521,643 | ) | 217,614,662 | |||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 256,398,853 | 145,424,994 | 344,011,544 | 126,396,882 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 430,039,150 | $ | 256,398,853 | $ | 237,489,901 | $ | 344,011,544 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of year | $ | 171,537 | $ | 422,329 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 10,100,000 | 16,800,000 | 4,250,000 | 13,900,000 | ||||||||||||
Redeemed | (500,000 | ) | (9,000,000 | ) | (7,500,000 | ) | (7,100,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 9,600,000 | 7,800,000 | (3,250,000 | ) | 6,800,000 | |||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
77 | Annual Report |
Financial Statements – continued
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Health Care Index ETF | Fidelity MSCI Industrials Index ETF | |||||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2016 | Year ended July 31, 2015 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 8,578,853 | $ | 10,686,195 | $ | 2,444,926 | $ | 2,384,615 | ||||||||
Net realized gain (loss) | 16,027,115 | 13,927,958 | (3,153,096 | ) | 4,650,078 | |||||||||||
Change in net unrealized appreciation (depreciation) | (72,464,270 | ) | 85,822,767 | 7,067,172 | (1,605,315 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (47,858,302 | ) | 110,436,920 | 6,359,002 | 5,429,378 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders from net investment income | (8,760,450 | ) | (10,407,500 | ) | (2,441,900 | ) | (2,431,900 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 166,181,657 | 587,328,357 | 164,215,380 | 228,258,894 | ||||||||||||
Cost of shares redeemed | (268,151,563 | ) | (74,026,791 | ) | (153,116,895 | ) | (188,928,297 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | (101,969,906 | ) | 513,301,566 | 11,098,485 | 39,330,597 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | (158,588,658 | ) | 613,330,986 | 15,015,587 | 42,328,075 | |||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 800,712,984 | 187,381,998 | 143,033,887 | 100,705,812 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 642,124,326 | $ | 800,712,984 | $ | 158,049,474 | $ | 143,033,887 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of year | $ | 311,841 | $ | 492,896 | $ | 42,250 | $ | 30,015 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 4,850,000 | 17,450,000 | 5,900,000 | 8,200,000 | ||||||||||||
Redeemed | (8,400,000 | ) | (2,350,000 | ) | (5,750,000 | ) | (6,850,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (3,550,000 | ) | 15,100,000 | 150,000 | 1,350,000 | |||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 78 |
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Information Technology Index ETF | Fidelity MSCI Materials Index ETF | |||||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2016 | Year ended July 31, 2015 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 5,403,104 | $ | 3,807,562 | $ | 1,485,956 | $ | 1,992,096 | ||||||||
Net realized gain (loss) | 16,910,614 | 17,277,538 | (15,531,042 | ) | 4,585,403 | |||||||||||
Change in net unrealized appreciation (depreciation) | (9,630,663 | ) | 13,322,371 | 12,480,147 | (14,202,804 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 12,683,055 | 34,407,471 | (1,564,939 | ) | (7,625,305 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders from net investment income | (5,383,850 | ) | (3,773,400 | ) | (1,462,950 | ) | (2,010,950 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 282,125,618 | 323,240,750 | 132,685,632 | 218,809,870 | ||||||||||||
Cost of shares redeemed | (281,405,715 | ) | (112,113,694 | ) | (129,385,021 | ) | (180,163,249 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 719,903 | 211,127,056 | 3,300,611 | 38,646,621 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 8,019,108 | 241,761,127 | 272,722 | 29,010,366 | ||||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 423,372,260 | 181,611,133 | 123,051,930 | 94,041,564 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 431,391,368 | $ | 423,372,260 | $ | 123,324,652 | $ | 123,051,930 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of year | $ | 123,377 | $ | 104,123 | $ | 59,896 | $ | 36,890 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 8,600,000 | 10,350,000 | 5,250,000 | 8,000,000 | ||||||||||||
Redeemed | (9,200,000 | ) | (3,600,000 | ) | (5,550,000 | ) | (6,650,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (600,000 | ) | 6,750,000 | (300,000 | ) | 1,350,000 | ||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
79 | Annual Report |
Financial Statements – continued
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Real Estate Index ETF | Fidelity MSCI Telecommunication Services Index ETF | |||||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015A | Year ended July 31, 2016 | Year ended July 31, 2015 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 2,125,983 | $ | 393,530 | $ | 2,966,226 | $ | 2,443,571 | ||||||||
Net realized gain (loss) | 884,846 | (185,315 | ) | 1,476,206 | 1,226,482 | |||||||||||
Change in net unrealized appreciation (depreciation) | 14,803,602 | (1,641,531 | ) | 23,239,724 | (1,582,140 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 17,814,431 | (1,433,316 | ) | 27,682,156 | 2,087,913 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders from net investment income | (2,375,400 | ) | (393,530 | ) | (2,437,350 | ) | (2,584,450 | ) | ||||||||
Return of capital | — | (26,520 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (2,375,400 | ) | (420,050 | ) | (2,437,350 | ) | (2,584,450 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 150,719,714 | 27,789,606 | 137,260,776 | 39,633,193 | ||||||||||||
Cost of shares redeemed | (8,700,743 | ) | — | (69,473,964 | ) | (24,675,680 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 142,018,971 | 27,789,606 | 67,786,812 | 14,957,513 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 157,458,002 | 25,936,240 | 93,031,618 | 14,460,976 | ||||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 25,936,240 | — | 81,907,921 | 67,446,945 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 183,394,242 | $ | 25,936,240 | $ | 174,939,539 | $ | 81,907,921 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of year | $ | — | $ | — | $ | 703,699 | $ | 174,823 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 6,300,000 | 1,150,000 | 5,050,000 | 1,450,000 | ||||||||||||
Redeemed | (350,000 | ) | — | (2,650,000 | ) | (900,000 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 5,950,000 | 1,150,000 | 2,400,000 | 550,000 | ||||||||||||
|
|
|
|
|
|
|
|
A | For the period February 2, 2015 (commencement of operations) to July 31, 2015. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 80 |
Statements of Changes in Net Assets | ||||||||
Fidelity MSCI Utilities Index ETF | ||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 6,094,952 | $ | 4,392,110 | ||||
Net realized gain (loss) | 2,515,706 | (1,178,742 | ) | |||||
Change in net unrealized appreciation (depreciation) | 33,486,490 | (8,840,330 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 42,097,148 | (5,626,962 | ) | |||||
|
|
|
| |||||
Distributions to shareholders from net investment income | (6,073,050 | ) | (4,579,400 | ) | ||||
|
|
|
| |||||
Share transactions | ||||||||
Proceeds from sales of shares | 257,957,666 | 230,014,021 | ||||||
Cost of shares redeemed | (118,488,399 | ) | (232,580,340 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from share transactions | 139,469,267 | (2,566,319 | ) | |||||
|
|
|
| |||||
Total increase (decrease) in net assets | 175,493,365 | (12,772,681 | ) | |||||
Net Assets | ||||||||
Beginning of year | 108,175,980 | 120,948,661 | ||||||
|
|
|
| |||||
End of year | $ | 283,669,345 | $ | 108,175,980 | ||||
|
|
|
| |||||
Undistributed net investment income included in net assets at end of year | $ | 34,058 | $ | — | ||||
|
|
|
| |||||
Other Information | ||||||||
Shares | ||||||||
Sold | 8,750,000 | 7,550,000 | ||||||
Redeemed | (4,150,000 | ) | (8,200,000 | ) | ||||
|
|
|
| |||||
Net increase (decrease) | 4,600,000 | (650,000 | ) | |||||
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
81 | Annual Report |
Financial Statements – continued
Financial Highlights | ||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | ||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2014A | ||||||||||
Selected Per-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 32.06 | $ | 26.58 | $ | 25.17 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.43 | 0.37 | 0.25 | |||||||||
Net realized and unrealized gain (loss) | (0.06 | ) | 5.43 | 1.38 | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 0.37 | 5.80 | 1.63 | |||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.44 | ) | (0.32 | ) | (0.22 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.44 | ) | (0.32 | ) | (0.22 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 31.99 | $ | 32.06 | $ | 26.58 | ||||||
|
|
|
|
|
| |||||||
Total ReturnC | 1.25 | % | 21.93 | % | 6.47 | % | ||||||
Ratios to Average Net AssetsD | ||||||||||||
Expenses before reductions | .12 | % | .12 | % | .12 | %E | ||||||
Expenses net of fee waivers, if any | .12 | % | .12 | % | .12 | %E | ||||||
Expenses net of all reductions | .12 | % | .12 | % | .12 | %E | ||||||
Net investment income (loss) | 1.41 | % | 1.25 | % | 1.20 | %E | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 262,322 | $ | 299,794 | $ | 75,741 | ||||||
Portfolio turnover rateF,G | 5 | % | 8 | % | 5 | %H |
A | For the period October 21, 2013 (commencement of operations) to July 31, 2014. |
B | Calculated based on average shares outstanding during the period. |
C | Total returns for periods of less than one year are not annualized. |
D | Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the fund invests. |
E | Annualized. |
F | Amount does not include the portfolio activity of any underlying funds. |
G | Portfolio turnover rate excludes securities received or delivered in-kind. |
H | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 82 |
Financial Highlights | ||||||||||||
Fidelity MSCI Consumer Staples Index ETF | ||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2014A | ||||||||||
Selected Per-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 30.31 | $ | 26.16 | $ | 25.00 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.75 | 0.77 | 0.52 | |||||||||
Net realized and unrealized gain (loss) | 2.56 | 4.16 | 1.09 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 3.31 | 4.93 | 1.61 | |||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.80 | ) | (0.78 | ) | (0.45 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.80 | ) | (0.78 | ) | (0.45 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 32.82 | $ | 30.31 | $ | 26.16 | ||||||
|
|
|
|
|
| |||||||
Total ReturnC | 11.18 | % | 19.00 | % | 6.42 | % | ||||||
Ratios to Average Net AssetsD | ||||||||||||
Expenses before reductions | .12 | % | .12 | % | .12 | %E | ||||||
Expenses net of fee waivers, if any | .12 | % | .12 | % | .12 | %E | ||||||
Expenses net of all reductions | .12 | % | .12 | % | .12 | %E | ||||||
Net investment income (loss) | 2.45 | % | 2.63 | % | 2.51 | %E | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 285,504 | $ | 204,596 | $ | 73,244 | ||||||
Portfolio turnover rateF,G | 10 | % | 10 | % | 3 | %H |
A | For the period October 21, 2013 (commencement of operations) to July 31, 2014. |
B | Calculated based on average shares outstanding during the period. |
C | Total returns for periods of less than one year are not annualized. |
D | Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the fund invests. |
E | Annualized. |
F | Amount does not include the portfolio activity of any underlying funds. |
G | Portfolio turnover rate excludes securities received or delivered in-kind. |
H | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
83 | Annual Report |
Financial Statements – continued
Financial Highlights | ||||||||||||
Fidelity MSCI Energy Index ETF | ||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2014A | ||||||||||
Selected Per-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 19.72 | $ | 27.97 | $ | 24.98 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.50 | 0.57 | 0.38 | |||||||||
Net realized and unrealized gain (loss) | (0.69 | )C | (8.31 | ) | 2.89 | |||||||
|
|
|
|
|
| |||||||
Total from investment operations | (0.19 | ) | (7.74 | ) | 3.27 | |||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.50 | ) | (0.51 | ) | (0.28 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.50 | ) | (0.51 | ) | (0.28 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 19.03 | $ | 19.72 | $ | 27.97 | ||||||
|
|
|
|
|
| |||||||
Total ReturnD | (0.75 | )% | (27.95 | )% | 13.16 | % | ||||||
Ratios to Average Net AssetsE | ||||||||||||
Expenses before reductions | .12 | % | .12 | % | .12 | %F | ||||||
Expenses net of fee waivers, if any | .12 | % | .12 | % | .12 | %F | ||||||
Expenses net of all reductions | .12 | % | .12 | % | .12 | %F | ||||||
Net investment income (loss) | 2.74 | % | 2.47 | % | 1.76 | %F | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 430,039 | $ | 256,399 | $ | 145,425 | ||||||
Portfolio turnover rateG,H | 19 | % | 8 | % | 4 | %I |
A | For the period October 21, 2013 (commencement of operations) to July 31, 2014. |
B | Calculated based on average shares outstanding during the period. |
C | The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of share transactions in relation to fluctuating market values of the investments of a Fund. |
D | Total returns for periods of less than one year are not annualized. |
E | Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the fund invests. |
F | Annualized. |
G | Amount does not include the portfolio activity of any underlying funds. |
H | Portfolio turnover rate excludes securities received or delivered in-kind. |
I | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 84 |
Financial Highlights | ||||||||||||
Fidelity MSCI Financials Index ETF | ||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2014A | ||||||||||
Selected Per-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 29.78 | $ | 26.61 | $ | 25.00 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.63 | 0.58 | 0.41 | |||||||||
Net realized and unrealized gain (loss) | (1.11 | ) | 3.15 | 1.56 | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | (0.48 | ) | 3.73 | 1.97 | ||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.69 | ) | (0.56 | ) | (0.36 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.69 | ) | (0.56 | ) | (0.36 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 28.61 | $ | 29.78 | $ | 26.61 | ||||||
|
|
|
|
|
| |||||||
Total ReturnC | (1.49 | )% | 14.08 | % | 7.89 | % | ||||||
Ratios to Average Net AssetsD | ||||||||||||
Expenses before reductions | .12 | % | .12 | % | .12 | %E | ||||||
Expenses net of fee waivers, if any | .12 | % | .12 | % | .12 | %E | ||||||
Expenses net of all reductions | .12 | % | .12 | % | .12 | %E | ||||||
Net investment income (loss) | 2.29 | % | 2.01 | % | 1.97 | %E | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 237,490 | $ | 344,012 | $ | 126,397 | ||||||
Portfolio turnover rateF,G | 8 | % | 7 | % | 6 | %H |
A | For the period October 21, 2013 (commencement of operations) to July 31, 2014. |
B | Calculated based on average shares outstanding during the period. |
C | Total returns for periods of less than one year are not annualized. |
D | Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the fund invests. |
E | Annualized. |
F | Amount does not include the portfolio activity of any underlying funds. |
G | Portfolio turnover rate excludes securities received or delivered in-kind. |
H | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
85 | Annual Report |
Financial Statements – continued
Financial Highlights | ||||||||||||
Fidelity MSCI Health Care Index ETF | ||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2014A | ||||||||||
Selected Per-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 37.16 | $ | 29.05 | $ | 24.97 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.44 | 0.80 | C | 0.30 | ||||||||
Net realized and unrealized gain (loss) | (1.49 | ) | 7.99 | 3.99 | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | (1.05 | ) | 8.79 | 4.29 | ||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.44 | ) | (0.68 | ) | (0.21 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.44 | ) | (0.68 | ) | (0.21 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 35.67 | $ | 37.16 | $ | 29.05 | ||||||
|
|
|
|
|
| |||||||
Total ReturnD | (2.73 | )% | 30.40 | % | 17.23 | % | ||||||
Ratios to Average Net AssetsE | ||||||||||||
Expenses before reductions | .12 | % | .12 | % | .12 | %F | ||||||
Expenses net of fee waivers, if any | .12 | % | .12 | % | .12 | %F | ||||||
Expenses net of all reductions | .12 | % | .12 | % | .12 | %F | ||||||
Net investment income (loss) | 1.30 | % | 2.31 | %C | 1.36 | %F | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 642,124 | $ | 800,713 | $ | 187,382 | ||||||
Portfolio turnover rateG,H | 9 | % | 10 | % | 4 | %I |
A | For the period October 21, 2013 (commencement of operations) to July 31, 2014. |
B | Calculated based on average shares outstanding during the period. |
C | Investment income per share reflects a large, non-recurring dividend which amounted to $.17 per share. Excluding this non-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.83%. |
D | Total returns for periods of less than one year are not annualized. |
E | Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the fund invests. |
F | Annualized. |
G | Amount does not include the portfolio activity of any underlying funds. |
H | Portfolio turnover rate excludes securities received or delivered in-kind. |
I | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 86 |
Financial Highlights | ||||||||||||
Fidelity MSCI Industrials Index ETF | ||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2014A | ||||||||||
Selected Per-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 28.05 | $ | 26.85 | $ | 25.20 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.54 | 0.48 | 0.35 | |||||||||
Net realized and unrealized gain (loss) | 2.04 | 1.19 | 1.61 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 2.58 | 1.67 | 1.96 | |||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.53 | ) | (0.47 | ) | (0.31 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.53 | ) | (0.47 | ) | (0.31 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 30.10 | $ | 28.05 | $ | 26.85 | ||||||
|
|
|
|
|
| |||||||
Total ReturnC | 9.41 | % | 6.18 | % | 7.75 | % | ||||||
Ratios to Average Net AssetsD | ||||||||||||
Expenses before reductions | .12 | % | .12 | % | .12 | %E | ||||||
Expenses net of fee waivers, if any | .12 | % | .12 | % | .12 | %E | ||||||
Expenses net of all reductions | .12 | % | .12 | % | .12 | %E | ||||||
Net investment income (loss) | 1.94 | % | 1.69 | % | 1.65 | %E | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 158,049 | $ | 143,034 | $ | 100,706 | ||||||
Portfolio turnover rateF,G | 11 | % | 6 | % | 4 | %H |
A | For the period October 21, 2013 (commencement of operations) to July 31, 2014. |
B | Calculated based on average shares outstanding during the period. |
C | Total returns for periods of less than one year are not annualized. |
D | Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the fund invests. |
E | Annualized. |
F | Amount does not include the portfolio activity of any underlying funds. |
G | Portfolio turnover rate excludes securities received or delivered in-kind. |
H | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
87 | Annual Report |
Financial Statements – continued
Financial Highlights | ||||||||||||
Fidelity MSCI Information Technology Index ETF | ||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2014A | ||||||||||
Selected Per-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 32.69 | $ | 29.29 | $ | 25.18 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.46 | 0.39 | 0.25 | |||||||||
Net realized and unrealized gain (loss) | 2.24 | C | 3.40 | 4.06 | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 2.70 | 3.79 | 4.31 | |||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.46 | ) | (0.39 | ) | (0.20 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.46 | ) | (0.39 | ) | (0.20 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 34.93 | $ | 32.69 | $ | 29.29 | ||||||
|
|
|
|
|
| |||||||
Total ReturnD | 8.41 | %C | 12.98 | % | 17.14 | % | ||||||
Ratios to Average Net AssetsE | ||||||||||||
Expenses before reductions | .12 | % | .12 | % | .12 | %F | ||||||
Expenses net of fee waivers, if any | .12 | % | .12 | % | .12 | %F | ||||||
Expenses net of all reductions | .12 | % | .12 | % | .12 | %F | ||||||
Net investment income (loss) | 1.42 | % | 1.23 | % | 1.14 | %F | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 431,391 | $ | 423,372 | $ | 181,611 | ||||||
Portfolio turnover rateG,H | 5 | % | 6 | % | 4 | %I |
A | For the period October 21, 2013 (commencement of operations) to July 31, 2014. |
B | Calculated based on average shares outstanding during the period. |
C | Amount includes a reimbursement from the investment adviser for an operational error which amounted to $.01 per share. Excluding this reimbursement, the total return would have been 8.38%. |
D | Total returns for periods of less than one year are not annualized. |
E | Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the fund invests. |
F | Annualized. |
G | Amount does not include the portfolio activity of any underlying funds. |
H | Portfolio turnover rate excludes securities received or delivered in-kind. |
I | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 88 |
Financial Highlights | ||||||||||||
Fidelity MSCI Materials Index ETF | ||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2014A | ||||||||||
Selected Per-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 25.91 | $ | 27.66 | $ | 24.95 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.50 | 0.50 | 0.35 | |||||||||
Net realized and unrealized gain (loss) | 1.83 | C | (1.75 | ) | 2.67 | |||||||
|
|
|
|
|
| |||||||
Total from investment operations | 2.33 | (1.25 | ) | 3.02 | ||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.53 | ) | (0.50 | ) | (0.31 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.53 | ) | (0.50 | ) | (0.31 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 27.71 | $ | 25.91 | $ | 27.66 | ||||||
|
|
|
|
|
| |||||||
Total ReturnD | 9.28 | % | (4.65 | )% | 12.15 | % | ||||||
Ratios to Average Net AssetsE | ||||||||||||
Expenses before reductions | .11 | % | .12 | % | .12 | %F | ||||||
Expenses net of fee waivers, if any | .11 | % | .12 | % | .12 | %F | ||||||
Expenses net of all reductions | .11 | % | .12 | % | .12 | %F | ||||||
Net investment income (loss) | 2.00 | % | 1.81 | % | 1.64 | %F | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 123,325 | $ | 123,052 | $ | 94,042 | ||||||
Portfolio turnover rateG,H | 9 | % | 7 | % | 5 | %I |
A | For the period October 21, 2013 (commencement of operations) to July 31, 2014. |
B | Calculated based on average shares outstanding during the period. |
C | The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of share transactions in relation to fluctuating market values of the investments of a Fund. |
D | Total returns for periods of less than one year are not annualized. |
E | Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the fund invests. |
F | Annualized. |
G | Amount does not include the portfolio activity of any underlying funds. |
H | Portfolio turnover rate excludes securities received or delivered in-kind. |
I | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
89 | Annual Report |
Financial Statements – continued
Financial Highlights | ||||||||
Fidelity MSCI Real Estate Index ETF | ||||||||
Year ended July 31, 2016 | Year ended July 31, 2015A | |||||||
Selected Per-Share Data | ||||||||
Net asset value, beginning of period | $ | 22.55 | $ | 24.28 | ||||
|
|
|
| |||||
Income from Investment Operations | ||||||||
Net investment income (loss)B | 0.83 | 0.38 | ||||||
Net realized and unrealized gain (loss) | 3.37 | (1.70 | ) | |||||
|
|
|
| |||||
Total from investment operations | 4.20 | (1.32 | ) | |||||
|
|
|
| |||||
Distributions from net investment income | (0.92 | ) | (0.38 | ) | ||||
Return of capital | — | (0.03 | ) | |||||
|
|
|
| |||||
Total distributions | (0.92 | ) | (0.41 | ) | ||||
|
|
|
| |||||
Net asset value, end of period | $ | 25.83 | $ | 22.55 | ||||
|
|
|
| |||||
Total ReturnC | 19.29 | % | (5.50 | )% | ||||
Ratios to Average Net AssetsD | ||||||||
Expenses before reductions | .11 | % | .12 | %E | ||||
Expenses net of fee waivers, if any | .11 | % | .12 | %E | ||||
Expenses net of all reductions | .11 | % | .12 | %E | ||||
Net investment income (loss) | 3.55 | % | 3.33 | %E | ||||
Supplemental Data | ||||||||
Net assets, end of period (000 omitted) | $ | 183,394 | $ | 25,936 | ||||
Portfolio turnover rateF,G | 10 | % | 10 | %H |
A | For the period February 2, 2015 (commencement of operations) to July 31, 2015. |
B | Calculated based on average shares outstanding during the period. |
C | Total returns for periods of less than one year are not annualized. |
D | Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the fund invests. |
E | Annualized. |
F | Amount does not include the portfolio activity of any underlying funds. |
G | Portfolio turnover rate excludes securities received or delivered in-kind. |
H | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 90 |
Financial Highlights | ||||||||||||
Fidelity MSCI Telecommunication Services Index ETF | ||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2014A | ||||||||||
Selected Per-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 26.86 | $ | 26.98 | $ | 25.26 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.78 | 0.78 | 0.72 | |||||||||
Net realized and unrealized gain (loss) | 5.11 | (0.09 | ) | 1.42 | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 5.89 | 0.69 | 2.14 | |||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.65 | ) | (0.81 | ) | (0.42 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.65 | ) | (0.81 | ) | (0.42 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 32.10 | $ | 26.86 | $ | 26.98 | ||||||
|
|
|
|
|
| |||||||
Total ReturnC | 22.36 | % | 2.56 | % | 8.57 | % | ||||||
Ratios to Average Net AssetsD | ||||||||||||
Expenses before reductions | .12 | % | .12 | % | .12 | %E | ||||||
Expenses net of fee waivers, if any | .12 | % | .12 | % | .12 | %E | ||||||
Expenses net of all reductions | .12 | % | .12 | % | .12 | %E | ||||||
Net investment income (loss) | 2.74 | % | 2.89 | % | 3.51 | %E | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 174,940 | $ | 81,908 | $ | 67,447 | ||||||
Portfolio turnover rateF,G | 26 | % | 23 | % | 21 | %H |
A | For the period October 21, 2013 (commencement of operations) to July 31, 2014. |
B | Calculated based on average shares outstanding during the period. |
C | Total returns for periods of less than one year are not annualized. |
D | Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the fund invests. |
E | Annualized. |
F | Amount does not include the portfolio activity of any underlying funds. |
G | Portfolio turnover rate excludes securities received or delivered in-kind. |
H | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
91 | Annual Report |
Financial Statements – continued
Financial Highlights | ||||||||||||
Fidelity MSCI Utilities Index ETF | ||||||||||||
Year ended July 31, 2016 | Year ended July 31, 2015 | Year ended July 31, 2014A | ||||||||||
Selected Per-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 28.10 | $ | 26.88 | $ | 24.99 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.98 | 0.98 | 0.67 | |||||||||
Net realized and unrealized gain (loss) | 5.48 | 1.47 | C | 1.85 | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 6.46 | 2.45 | 2.52 | |||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.99 | ) | (1.23 | ) | (0.63 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.99 | ) | (1.23 | ) | (0.63 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 33.57 | $ | 28.10 | $ | 26.88 | ||||||
|
|
|
|
|
| |||||||
Total ReturnD | 23.56 | % | 9.13 | % | 10.13 | % | ||||||
Ratios to Average Net AssetsE | ||||||||||||
Expenses before reductions | .12 | % | .12 | % | .12 | %F | ||||||
Expenses net of fee waivers, if any | .12 | % | .12 | % | .12 | %F | ||||||
Expenses net of all reductions | .12 | % | .12 | % | .12 | %F | ||||||
Net investment income (loss) | 3.25 | % | 3.37 | % | 3.15 | %F | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 283,669 | $ | 108,176 | $ | 120,949 | ||||||
Portfolio turnover rateG,H | 9 | % | 7 | % | 6 | %I |
A | For the period October 21, 2013 (commencement of operations) to July 31, 2014. |
B | Calculated based on average shares outstanding during the period. |
C | The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of share transactions in relation to fluctuating market values of the investments of a Fund. |
D | Total returns for periods of less than one year are not annualized. |
E | Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund but do not include expenses of the investment companies in which the fund invests. |
F | Annualized. |
G | Amount does not include the portfolio activity of any underlying funds. |
H | Portfolio turnover rate excludes securities received or delivered in-kind. |
I | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 92 |
For the year ended July 31, 2016
1. Organization.
Fidelity MSCI Consumer Discretionary Index ETF, Fidelity MSCI Consumer Staples Index ETF, Fidelity MSCI Energy Index ETF, Fidelity MSCI Financials Index ETF, Fidelity MSCI Health Care Index ETF, Fidelity MSCI Industrials Index ETF, Fidelity MSCI Information Technology Index ETF, Fidelity MSCI Materials Index ETF, Fidelity MSCI Real Estate Index ETF, Fidelity MSCI Telecommunication Services Index ETF and Fidelity MSCI Utilities Index ETF (the Funds) are non-diversified 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.
2. Significant Accounting Policies.
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. The following summarizes the significant accounting policies of the Funds:
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 delegated the day to day responsibility for the valuation of the Fund’s investments to the Fidelity SelectCo, LLC (SelectCo) Fair Value Committee (the Committee). In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one or more third party pricing vendors 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 procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees each Fund’s valuation policies and procedures and reports to the Board on the Committee’s activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing each Fund’s investments and ratifies the fair value determinations of the Committee.
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 – 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 vendor 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. Utilizing these techniques may result in transfers between Level 1 and Level 2. 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.
Investments in open-end mutual funds (Underlying Funds) are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy. If an unaffiliated underlying fund’s NAV is unavailable, shares of that fund may be valued by another method that the Board believes reflects fair value in accordance with the Board’s fair value pricing policies and is categorized as Level 2 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 July 31, 2016, is included at the end of each Fund’s Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Funds’ investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of NYSE Arca, 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 may include proceeds received from litigation. 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 a fund is 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 Underlying Funds, if any, are recorded on the ex-dividend
93 | Annual Report |
Notes to Financial Statements – continued
2. Significant Accounting Policies – continued
date. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. Subsequent to ex-dividend date a fund determines the components of these distributions, based upon receipt of tax filings or other correspondence relating to the underlying investment. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 each Fund and do not include any expenses associated with the Underlying Funds. 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 income taxes is required. As of July 31, 2016 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 Fund and is not distributed to shareholders of the Fund. 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.
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 passive foreign investment companies (PFIC), redemptions in kind, capital loss carryforwards, losses due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of year end were as follows for each Fund:
Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) on securities and other investments | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 269,830,940 | $ | 15,924,401 | $ | (23,555,826 | ) | $ | (7,631,425 | ) | ||||||
Fidelity MSCI Consumer Staples Index ETF | 266,825,971 | 21,574,663 | (3,252,349 | ) | 18,322,314 | |||||||||||
Fidelity MSCI Energy Index ETF | 490,920,855 | 9,433,506 | (70,381,761 | ) | (60,948,255 | ) | ||||||||||
Fidelity MSCI Financials Index ETF | 247,482,821 | 11,173,491 | (21,452,207 | ) | (10,278,716 | ) | ||||||||||
Fidelity MSCI Health Care Index ETF | 622,058,493 | 58,661,736 | (39,195,219 | ) | 19,466,517 | |||||||||||
Fidelity MSCI Industrials Index ETF | 157,227,275 | 7,557,359 | (6,823,304 | ) | 734,055 | |||||||||||
Fidelity MSCI Information Technology Index ETF | 418,486,564 | 31,882,941 | (18,968,435 | ) | 12,914,506 | |||||||||||
Fidelity MSCI Materials Index ETF | 124,142,204 | 5,748,606 | (6,613,295 | ) | (864,689 | ) | ||||||||||
Fidelity MSCI Real Estate Index ETF | 170,541,362 | 13,520,158 | (829,087 | ) | 12,691,071 | |||||||||||
Fidelity MSCI Telecommunication Services Index ETF | 153,365,869 | 23,949,298 | (2,110,804 | ) | 21,838,494 | |||||||||||
Fidelity MSCI Utilities Index ETF | 263,072,832 | 21,875,290 | (1,433,416 | ) | 20,441,874 |
Annual Report | 94 |
2. Significant Accounting Policies – continued
The tax-based components of distributable earnings as of year end were as follows for each Fund:
Undistributed ordinary income | Capital loss carryforward | Net unrealized appreciation (depreciation) | ||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 30,956 | $ | (1,744,806 | ) | $ | (7,631,425 | ) | ||||
Fidelity MSCI Consumer Staples Index ETF | 442,592 | (736,985 | ) | 18,322,314 | ||||||||
Fidelity MSCI Energy Index ETF | 171,537 | (5,152,210 | ) | (60,948,255 | ) | |||||||
Fidelity MSCI Financials Index ETF | — | (1,711,278 | ) | (10,278,716 | ) | |||||||
Fidelity MSCI Health Care Index ETF | 311,848 | (1,064,324 | ) | 19,466,517 | ||||||||
Fidelity MSCI Industrials Index ETF | 43,645 | (1,957,516 | ) | 734,055 | ||||||||
Fidelity MSCI Information Technology Index ETF | 123,377 | (2,178,198 | ) | 12,914,506 | ||||||||
Fidelity MSCI Materials Index ETF | 59,896 | (1,927,446 | ) | (864,689 | ) | |||||||
Fidelity MSCI Real Estate Index ETF | — | (161,019 | ) | 12,691,071 | ||||||||
Fidelity MSCI Telecommunication Services Index ETF | 703,699 | (274,274 | ) | 21,838,494 | ||||||||
Fidelity MSCI Utilities Index ETF | 34,058 | (2,071,927 | ) | 20,441,874 |
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. Under the Regulated Investment Company Modernization Act of 2010 (the Act), the Funds are permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period and such capital losses are required to be used prior to any losses that expire. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal year end and is subject to adjustment.
No-expiration Short-term | No-expiration Long-term | Total capital loss carryforward | ||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | (1,104,602 | ) | $ | (640,204 | ) | $ | (1,744,806 | ) | |||
Fidelity MSCI Consumer Staples Index ETF | (556,985 | ) | (180,000 | ) | (736,985 | ) | ||||||
Fidelity MSCI Energy Index ETF | (3,942,676 | ) | (1,209,534 | ) | (5,152,210 | ) | ||||||
Fidelity MSCI Financials Index ETF | (1,647,173 | ) | (64,105 | ) | (1,711,278 | ) | ||||||
Fidelity MSCI Health Care Index ETF | (1,064,324 | ) | — | (1,064,324 | ) | |||||||
Fidelity MSCI Industrials Index ETF | (915,997 | ) | (1,041,519 | ) | (1,957,516 | ) | ||||||
Fidelity MSCI Information Technology Index ETF | (1,912,779 | ) | (265,419 | ) | (2,178,198 | ) | ||||||
Fidelity MSCI Materials Index ETF | (1,222,963 | ) | (704,483 | ) | (1,927,446 | ) | ||||||
Fidelity MSCI Real Estate Index ETF | (161,019 | ) | — | (161,019 | ) | |||||||
Fidelity MSCI Telecommunication Services Index ETF | — | (274,274 | ) | (274,274 | ) | |||||||
Fidelity MSCI Utilities Index ETF | (1,048,742 | ) | (1,023,185 | ) | (2,071,927 | ) |
Certain of the Funds intend to elect to defer to the next fiscal year capital losses recognized during the period November 1, 2015 to July 31, 2016. Loss deferrals were as follows:
Capital losses | ||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | (1,468,528 | ) | |
Fidelity MSCI Consumer Staples Index ETF | (988,734 | ) | ||
Fidelity MSCI Energy Index ETF | (5,453,683 | ) | ||
Fidelity MSCI Financials Index ETF | (1,192,572 | ) | ||
Fidelity MSCI Health Care Index ETF | (5,381,948 | ) | ||
Fidelity MSCI Information Technology Index ETF | (2,643,239 | ) | ||
Fidelity MSCI Real Estate Index ETF | (202,676 | ) |
95 | Annual Report |
Notes to Financial Statements – continued
2. Significant Accounting Policies – continued
The tax character of distributions paid was as follows:
July 31, 2016 | ||||||||||||||||
Ordinary income | Long-term capital gain | Tax return of capital | Total | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 3,868,300 | $ | — | $ | — | $ | 3,868,300 | ||||||||
Fidelity MSCI Consumer Staples Index ETF | 5,920,950 | — | — | 5,920,950 | ||||||||||||
Fidelity MSCI Energy Index ETF | 8,829,100 | — | — | 8,829,100 | ||||||||||||
Fidelity MSCI Financials Index ETF | 5,983,150 | — | — | 5,983,150 | ||||||||||||
Fidelity MSCI Health Care Index ETF | 8,760,450 | — | — | 8,760,450 | ||||||||||||
Fidelity MSCI Industrials Index ETF | 2,441,900 | — | — | 2,441,900 | ||||||||||||
Fidelity MSCI Information Technology Index ETF | 5,383,850 | — | — | 5,383,850 | ||||||||||||
Fidelity MSCI Materials Index ETF | 1,462,950 | — | — | 1,462,950 | ||||||||||||
Fidelity MSCI Real Estate Index ETF | 2,375,400 | — | — | 2,375,400 | ||||||||||||
Fidelity MSCI Telecommunication Services Index ETF | 2,437,350 | — | — | 2,437,350 | ||||||||||||
Fidelity MSCI Utilities Index ETF | 6,073,050 | — | — | 6,073,050 | ||||||||||||
July 31, 2015 | ||||||||||||||||
Ordinary income | Long-term capital gain | Tax return of capital | Total | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 2,306,850 | $ | — | $ | — | $ | 2,306,850 | ||||||||
Fidelity MSCI Consumer Staples Index ETF | 4,188,550 | — | — | 4,188,550 | ||||||||||||
Fidelity MSCI Energy Index ETF | 5,436,900 | — | — | 5,436,900 | ||||||||||||
Fidelity MSCI Financials Index ETF | 4,778,000 | — | — | 4,778,000 | ||||||||||||
Fidelity MSCI Health Care Index ETF | 10,407,500 | — | — | 10,407,500 | ||||||||||||
Fidelity MSCI Industrials Index ETF | 2,431,900 | — | — | 2,431,900 | ||||||||||||
Fidelity MSCI Information Technology Index ETF | 3,773,400 | — | — | 3,773,400 | ||||||||||||
Fidelity MSCI Materials Index ETF | 2,010,950 | — | — | 2,010,950 | ||||||||||||
Fidelity MSCI Real Estate Index ETF | 393,530 | — | 26,520 | 420,050 | ||||||||||||
Fidelity MSCI Telecommunication Services Index ETF | 2,584,450 | — | — | 2,584,450 | ||||||||||||
Fidelity MSCI Utilities Index ETF | 4,579,400 | — | — | 4,579,400 |
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, were as follows:
Purchases | Sales | |||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 14,528,159 | $ | 12,347,764 | ||||
Fidelity MSCI Consumer Staples Index ETF | 26,396,860 | 25,718,341 | ||||||
Fidelity MSCI Energy Index ETF | 64,232,284 | 62,714,150 | ||||||
Fidelity MSCI Financials Index ETF | 19,743,502 | 19,174,531 | ||||||
Fidelity MSCI Health Care Index ETF | 58,391,871 | 57,756,087 | ||||||
Fidelity MSCI Industrials Index ETF | 13,265,732 | 13,229,440 | ||||||
Fidelity MSCI Information Technology Index ETF | 24,354,562 | 19,705,536 | ||||||
Fidelity MSCI Materials Index ETF | 6,872,122 | 6,962,204 | ||||||
Fidelity MSCI Real Estate Index ETF | 8,485,261 | 6,421,649 | ||||||
Fidelity MSCI Telecommunication Services Index ETF | 29,457,385 | 28,336,531 | ||||||
Fidelity MSCI Utilities Index ETF | 16,419,449 | 16,251,987 |
Annual Report | 96 |
3. Purchases and Sales of Investments – continued
Securities received or delivered in-kind through subscriptions and redemptions were as follows:
In-kind Subscriptions | In-kind Redemptions | |||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 201,694,849 | $ | 225,864,328 | ||||
Fidelity MSCI Consumer Staples Index ETF | 219,400,633 | 157,978,860 | ||||||
Fidelity MSCI Energy Index ETF | 180,243,724 | 9,236,695 | ||||||
Fidelity MSCI Financials Index ETF | 120,941,673 | 201,981,385 | ||||||
Fidelity MSCI Health Care Index ETF | 165,662,276 | 267,280,692 | ||||||
Fidelity MSCI Industrials Index ETF | 163,756,274 | 152,624,641 | ||||||
Fidelity MSCI Information Technology Index ETF | 281,514,423 | 280,219,670 | ||||||
Fidelity MSCI Materials Index ETF | 132,291,308 | 128,849,745 | ||||||
Fidelity MSCI Real Estate Index ETF | 148,613,189 | 8,563,223 | ||||||
Fidelity MSCI Telecommunication Services Index ETF | 136,678,139 | 69,204,005 | ||||||
Fidelity MSCI Utilities Index ETF | 257,186,769 | 118,049,554 |
4. Fees and Other Transactions with Affiliates.
Management Fee. SelectCo provides the Funds with investment management related services for which the Funds pay a monthly management fee. Effective July 1, 2016, the Board approved an amendment to the management contract to reduce the management fee from an annual rate of .12% to .084% of each Fund’s average net assets. Under the management contract, SelectCo pays all other expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. The management fee paid to SelectCo is reduced by an amount equal to the fees and expenses paid by each fund to the independent Trustees.
Sub-Adviser. BlackRock Fund Advisors (BFA), serves as sub-adviser for the Funds. BFA provides discretionary investment advisory services to the Funds and is paid by SelectCo for providing these services.
Interfund Trades. The Funds may purchase from or sell securities to other funds affiliated with the 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. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Other. During the year, the investment adviser reimbursed the Fidelity MSCI Information Technology Index ETF $101,017 for an operational error which is included in Net Realized Gain (Loss) in the accompanying Statements of Operations.
5. Share Transactions.
The 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 stocks 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 defray the costs associated with the issuance and redemption of Creation Units.
6. Other.
The Funds’ organizational documents provide former and current directors and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds’ maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
97 | Annual Report |
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Covington Trust and Shareholders of Fidelity MSCI Consumer Discretionary Index ETF, Fidelity MSCI Consumer Staples Index ETF, Fidelity MSCI Energy Index ETF, Fidelity MSCI Financials Index ETF, Fidelity MSCI Health Care Index ETF, Fidelity MSCI Industrials Index ETF, Fidelity MSCI Information Technology Index ETF, Fidelity MSCI Materials Index ETF, Fidelity MSCI Real Estate Index ETF, Fidelity MSCI Telecommunication Services Index ETF and Fidelity MSCI Utilities Index ETF:
We have audited the accompanying statements of assets and liabilities of Fidelity MSCI Consumer Discretionary Index ETF, Fidelity MSCI Consumer Staples Index ETF, Fidelity MSCI Energy Index ETF, Fidelity MSCI Financials Index ETF, Fidelity MSCI Health Care Index ETF, Fidelity MSCI Industrials Index ETF, Fidelity MSCI Information Technology Index ETF, Fidelity MSCI Materials Index ETF, Fidelity MSCI Real Estate Index ETF, Fidelity MSCI Telecommunication Services Index ETF and Fidelity MSCI Utilities Index ETF (the Funds), each a fund of the Fidelity Covington Trust, including the schedules of investments, as of July 31, 2016, and the related statements of operations, the statements of changes in net assets and financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, 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. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of July 31, 2016, by correspondence with the custodians 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.
In our opinion, such financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of Fidelity MSCI Consumer Discretionary Index ETF, Fidelity MSCI Consumer Staples Index ETF, Fidelity MSCI Energy Index ETF, Fidelity MSCI Financials Index ETF, Fidelity MSCI Health Care Index ETF, Fidelity MSCI Industrials Index ETF, Fidelity MSCI Information Technology Index ETF, Fidelity MSCI Materials Index ETF, Fidelity MSCI Real Estate Index ETF, Fidelity MSCI Telecommunication Services Index ETF and Fidelity MSCI Utilities Index ETF as of July 31, 2016, and the results of their operations, the changes in their net assets and the financial highlights for each of the periods presented, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
September 21, 2016
Annual Report | 98 |
Premium/Discount Analysis (Unaudited)
Shares of each fund are listed on NYSE Arca and can be bought and sold on the secondary market at market prices. Although the market price is expected to approximate the fund’s NAV, it is possible that the market price and NAV will vary significantly. The closing market price is the daily closing price as reported on NYSE Arca.
Premiums or discounts are the differences (expressed as a basis point differential with 1 basis point equaling 1/100 of 1%) between the fund’s NAV and closing market price. A premium indicates that the closing market price is trading above the NAV. A discount indicates that the closing market price is trading below the NAV. A discrepancy may exist with respect to the timing of when the NAV is calculated and the determination of the closing market price.
The chart below presents information about the differences between each fund’s daily closing market price and each fund’s NAV.
Fidelity MSCI Consumer Discretionary Index ETF
Period Ended July 31, 2016 | ||||||||||||
From commencement of operations* to July 31, 2016 | Closing Price Below NAV | Closing Price Above or Equal to NAV | ||||||||||
Basis Point Differential | Number of Days | % of Total Days | Number of Days | % of Total Days | ||||||||
0 – <25 | 228 | 32.61 | % | 465 | 66.53 | % | ||||||
25 – <50 | 2 | 0.29 | % | 4 | 0.57 | % | ||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 230 | 32.90 | % | 469 | 67.10 | % |
* | October 21, 2013. |
Fidelity MSCI Consumer Staples Index ETF
Period Ended July 31, 2016 | ||||||||||||
From commencement of operations* to July 31, 2016 | Closing Price Below NAV | Closing Price Above or Equal to NAV | ||||||||||
Basis Point Differential | Number of Days | % of Total Days | Number of Days | % of Total Days | ||||||||
0 – <25 | 182 | 26.04 | % | 515 | 73.68 | % | ||||||
25 – <50 | 1 | 0.14 | % | 1 | 0.14 | % | ||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 183 | 26.18 | % | 516 | 73.82 | % |
* | October 21, 2013. |
Fidelity MSCI Energy Index ETF
Period Ended July 31, 2016 | ||||||||||||
From commencement of operations* to July 31, 2016 | Closing Price Below NAV | Closing Price Above or Equal to NAV | ||||||||||
Basis Point Differential | Number of Days | % of Total Days | Number of Days | % of Total Days | ||||||||
0 – <25 | 139 | 19.89 | % | 554 | 79.26 | % | ||||||
25 – <50 | 0 | — | 4 | 0.57 | % | |||||||
50 – <75 | 0 | — | 1 | 0.14 | % | |||||||
75 – <100 | 0 | — | 1 | 0.14 | % | |||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 139 | 19.89 | % | 560 | 80.11 | % |
* | October 21, 2013. |
99 | Annual Report |
Premium/Discount Analysis (Unaudited) – continued
Fidelity MSCI Financials Index ETF
Period Ended July 31, 2016 | ||||||||||||
From commencement of operations* to July 31, 2016 | Closing Price Below NAV | Closing Price Above or Equal to NAV | ||||||||||
Basis Point Differential | Number of Days | % of Total Days | Number of Days | % of Total Days | ||||||||
0 – <25 | 178 | 25.47 | % | 517 | 73.96 | % | ||||||
25 – <50 | 1 | 0.14 | % | 3 | 0.43 | % | ||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 179 | 25.61 | % | 520 | 74.39 | % |
* | October 21, 2013. |
Fidelity MSCI Health Care Index ETF
Period Ended July 31, 2016 | ||||||||||||
From commencement of operations* to July 31, 2016 | Closing Price Below NAV | Closing Price Above or Equal to NAV | ||||||||||
Basis Point Differential | Number of Days | % of Total Days | Number of Days | % of Total Days | ||||||||
0 – <25 | 164 | 23.46 | % | 530 | 75.82 | % | ||||||
25 – <50 | 0 | — | 5 | 0.72 | % | |||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 164 | 23.46 | % | 535 | 76.54 | % |
* | October 21, 2013. |
Fidelity MSCI Industrials Index ETF
Period Ended July 31, 2016 | ||||||||||||
From commencement of operations* to July 31, 2016 | Closing Price Below NAV | Closing Price Above or Equal to NAV | ||||||||||
Basis Point Differential | Number of Days | % of Total Days | Number of Days | % of Total Days | ||||||||
0 – <25 | 257 | 36.77 | % | 439 | 62.80 | % | ||||||
25 – <50 | 1 | 0.14 | % | 2 | 0.29 | % | ||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 258 | 36.91 | % | 441 | 63.09 | % |
* | October 21, 2013. |
Annual Report | 100 |
Fidelity MSCI Information Technology Index ETF
Period Ended July 31, 2016 | ||||||||||||
From commencement of operations* to July 31, 2016 | Closing Price Below NAV | Closing Price Above or Equal to NAV | ||||||||||
Basis Point Differential | Number of Days | % of Total Days | Number of Days | % of Total Days | ||||||||
0 – <25 | 154 | 22.03 | % | 544 | 77.83 | % | ||||||
25 – <50 | 0 | — | 1 | 0.14 | % | |||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 154 | 22.03 | % | 545 | 77.97 | % |
* | October 21, 2013. |
Fidelity MSCI Materials Index ETF
Period Ended July 31, 2016 | ||||||||||||
From commencement of operations* to July 31, 2016 | Closing Price Below NAV | Closing Price Above or Equal to NAV | ||||||||||
Basis Point Differential | Number of Days | % of Total Days | Number of Days | % of Total Days | ||||||||
0 – <25 | 250 | 35.76 | % | 433 | 61.95 | % | ||||||
25 – <50 | 6 | 0.86 | % | 8 | 1.14 | % | ||||||
50 – <75 | 0 | — | 2 | 0.29 | % | |||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 256 | 36.62 | % | 443 | 63.38 | % |
* | October 21, 2013. |
Fidelity MSCI Real Estate Index ETF
Period Ended July 31, 2016 | ||||||||||||
From commencement of operations* to July 31, 2016 | Closing Price Below NAV | Closing Price Above or Equal to NAV | ||||||||||
Basis Point Differential | Number of Days | % of Total Days | Number of Days | % of Total Days | ||||||||
0 – <25 | 77 | 20.42 | % | 269 | 71.35 | % | ||||||
25 – <50 | 3 | 0.80 | % | 22 | 5.84 | % | ||||||
50 – <75 | 2 | 0.53 | % | 2 | 0.53 | % | ||||||
75 – <100 | 0 | — | 1 | 0.26 | % | |||||||
100 or above | 1 | 0.27 | % | 0 | — | |||||||
Total | 83 | 22.02 | % | 294 | 77.98 | % |
* | February 2, 2015. |
101 | Annual Report |
Premium/Discount Analysis (Unaudited) – continued
Fidelity MSCI Telecommunication Services Index ETF
Period Ended July 31, 2016 | ||||||||||||
From commencement of operations* to July 31, 2016 | Closing Price Below NAV | Closing Price Above or Equal to NAV | ||||||||||
Basis Point Differential | Number of Days | % of Total Days | Number of Days | % of Total Days | ||||||||
0 – <25 | 282 | 40.35 | % | 389 | 55.65 | % | ||||||
25 – <50 | 8 | 1.14 | % | 15 | 2.15 | % | ||||||
50 – <75 | 4 | 0.57 | % | 1 | 0.14 | % | ||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 294 | 42.06 | % | 405 | 57.94 | % |
* | October 21, 2013. |
Fidelity MSCI Utilities Index ETF
Period Ended July 31, 2016 | ||||||||||||
From commencement of operations* to July 31, 2016 | Closing Price Below NAV | Closing Price Above or Equal to NAV | ||||||||||
Basis Point Differential | Number of Days | % of Total Days | Number of Days | % of Total Days | ||||||||
0 – <25 | 194 | 27.75 | % | 498 | 71.25 | % | ||||||
25 – <50 | 3 | 0.43 | % | 3 | 0.43 | % | ||||||
50 – <75 | 0 | — | 1 | 0.14 | % | |||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 197 | 28.18 | % | 502 | 71.82 | % |
* | October 21, 2013. |
Annual Report | 102 |
Trustees and Officers (Unaudited)
The Trustees, Members of the Advisory Board (if any), and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund’s activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund’s performance. Each of the Trustees oversees 76 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees’ commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board’s conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. Brian B. Hogan is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Michael E. Wiley serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The funds’ Board oversees Fidelity’s sector portfolios. Other Boards oversee Fidelity’s equity and high income funds, and Fidelity’s investment grade bond, money market, and asset allocation funds. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds’ activities and associated risks. The Board, acting through its committees, has charged SelectCo and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds’ business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through SelectCo, its affiliates, and other service providers, the funds’ exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board’s committees has responsibility for overseeing different aspects of the funds’ activities, oversight is exercised primarily through the Operations and Audit Committees. Appropriate personnel, including
103 | Annual Report |
Trustees and Officers – continued
but not limited to the funds’ Chief Compliance Officer (CCO), SelectCo’s internal auditor, the independent accountants, the funds’ Treasurer and portfolio management personnel, make periodic reports to the Board’s committees, as appropriate. The responsibilities of each standing committee, including their oversight responsibilities, are described further under “Standing Committees of the Trustees.”
The funds’ Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-FIDELITY.
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
Brian B. Hogan (1964) |
Year of Election or Appointment: 2014 |
Trustee |
Chairman of the Board of Trustees |
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (U.K.) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan. |
* | Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with SelectCo. |
+ | The information includes the Trustee’s principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee’s qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund. |
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
David A. Rosow (1942) |
Year of Election or Appointment: 2013 |
Trustee |
Mr. Rosow also serves as Trustee of other Fidelity® funds. Prior to his retirement in 2006, Mr. Rosow was the Chief Executive Officer, owner and operator of a number of private companies, which encompassed oil refining, drilling and marketing of petroleum products (including specialty petroleum products), the recreation industry, and real estate development. Mr. Rosow currently serves as a Director of Oxbow Carbon LLC (upgraders, marketers, and distributors of petroleum byproducts of the oil refining process, 2015-present) and Oxbridge Academy of the Palm Beaches (2015-present). Previously, Mr. Rosow served on the Fairfield Country Day School Board for 27 years, including as its President for 3 years, stepping down in 2006, as Lead Director and Chairman of the Audit Committee of Hudson United Bancorp (1996-2006), Chairman of the Board of Westport Bank and Trust (1992-1996), and as a Director of TD Banknorth (2006-2007). In addition, Mr. Rosow served as a member (2008-2014) and President (2009-2014) of the Town Council of Palm Beach, Florida. Mr. Rosow also served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013). |
Garnett A. Smith (1947) |
Year of Election or Appointment: 2013 |
Trustee |
Mr. Smith also serves as Trustee of other Fidelity® funds. Prior to Mr. Smith’s retirement, he served as Chairman and Chief Executive Officer of Inbrand Corp. (manufacturer of personal absorbent products, 1990-1997). He also served as President (1986-1990) of Inbrand Corp. Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank. In addition, Mr. Smith served as a Member of the Advisory Board of certain Fidelity® funds (2012-2013) and as a board member of the Jackson Hole Land Trust (2009-2012). |
Annual Report | 104 |
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
Michael E. Wiley (1950) |
Year of Election or Appointment: 2013 |
Trustee |
Chairman of the Independent Trustees |
Mr. Wiley also serves as Trustee of other Fidelity® funds. Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), a Director of Tesoro Logistics LP (natural resources logistics, 2015-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Trustee of other Fidelity® funds (2008-2013), as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), as a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005). |
+ | The information includes the Trustee’s principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee’s qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund. |
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Except for Anthony R. Rochte, correspondence intended for an officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Correspondence intended for Mr. Rochte may be sent to SelectCo, 1225 17th Street, Denver, Colorado 80202-5541. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation |
Donald F. Donahue (1950) |
Year of Election or Appointment: 2015 |
Member of the Advisory Board |
Mr. Donahue also serves as a Member of the Advisory Board of other Fidelity® funds. Mr. Donahue is President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present) and a consultant for the Institute for Defense Analyses (national security, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006), and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue serves as a Member (2012-present) and Co-Chairman (2016-present) of the Board of Directors of United Way of New York, Member of the Board of Directors of NYC Leadership Academy (2012-present) and Physicians for Human Rights (2013-present), and Member of the Board of Advisors of Ripple Labs, Inc. (financial services, 2015-present). He also served as Chairman (2010-2012) and Member of the Board of Directors (2012-2013) of Omgeo, LLC (financial services), Treasurer of United Way of New York (2012-2016), and Member of the Board of Directors of XBRL US (financial services non-profit, 2009-2012) and the International Securities Services Association (2009-2012). |
Christopher S. Bartel (1971) |
Year of Election or Appointment: 2013 |
Vice President |
Mr. Bartel also serves as Vice President of other funds. Mr. Bartel serves as a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present) and Fidelity Management & Research (Hong Kong) (investment adviser firm, 2012-present) and Head of Global Equity Research (2010-present). Previously, Mr. Bartel served as a Director, President, and Chief Executive Officer of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2012-2016), Senior Vice President of Equity Research (2009-2010), Managing Director of Research (2006-2009), and an analyst and portfolio manager (2000-2006). |
Marc R. Bryant (1966) |
Year of Election or Appointment: 2013 |
Secretary and Chief Legal Officer (CLO) |
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (U.K.) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity’s Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006). |
105 | Annual Report |
Trustees and Officers – continued
Name, Year of Birth; Principal Occupation |
Jeffrey S. Christian (1961) |
Year of Election or Appointment: 2016 |
Assistant Treasurer |
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present). |
William C. Coffey (1969) |
Year of Election or Appointment: 2013 |
Assistant Secretary |
Mr. Coffey also serves as Assistant Secretary of other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Vice President and Associate General Counsel of FMR LLC (2005-2009). |
Jonathan Davis (1968) |
Year of Election or Appointment: 2013 |
Assistant Treasurer |
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010). |
Adrien E. Deberghes (1967) |
Year of Election or Appointment: 2013 |
President and Treasurer |
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin’ Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles. |
Joseph DeSantis (1959) |
Year of Election or Appointment: 2015 |
Vice President |
Mr. DeSantis also serves as Vice President of other funds. Mr. DeSantis serves as Group Chief Investment Officer, Equities (2010-present) and is an employee of Fidelity Investments. |
Stephanie J. Dorsey (1969) |
Year of Election or Appointment: 2013 |
Assistant Treasurer |
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank. |
Howard J. Galligan III (1966) |
Year of Election or Appointment: 2014 |
Chief Financial Officer |
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011). |
Scott C. Goebel (1968) |
Year of Election or Appointment: 2015 |
Vice President |
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Mr. Goebel serves as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present). Previously, Mr. Goebel served as Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007). |
James D. Gryglewicz (1972) |
Year of Election or Appointment: 2014 |
Chief Compliance Officer |
Mr. Gryglewicz also serves as Chief Compliance Officer of other funds. Mr. Gryglewicz serves as Compliance Officer of Strategic Advisers, Inc. (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present), Senior Vice President of Asset Management Compliance (2009-present), and is an employee of Fidelity Investments (2004-present). |
Annual Report | 106 |
Name, Year of Birth; Principal Occupation |
Brian B. Hogan (1964) |
Year of Election or Appointment: 2014 |
Vice President |
Mr. Hogan also serves as Trustee or Vice President of other funds. Mr. Hogan serves as a Director of FMR Investment Management (U.K.) Limited (investment adviser firm, 2015-present) and Fidelity SelectCo, LLC (investment adviser firm, 2014-present) and President of the Equity Division of FMR (investment adviser firm, 2009-present). Previously, Mr. Hogan served as Senior Vice President, Equity Research of FMR (2006-2009) and as a portfolio manager. Mr. Brian B. Hogan is not related to Mr. Colm A. Hogan. |
Colm A. Hogan (1973) |
Year of Election or Appointment: 2016 |
Assistant Treasurer |
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present). Mr. Colm A. Hogan is not related to Mr. Brian B. Hogan. |
Chris Maher (1972) |
Year of Election or Appointment: 2013 |
Assistant Treasurer |
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010). |
John F. Papandrea (1972) |
Year of Election or Appointment: 2016 |
Anti-Money Laundering (AML) Officer |
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present). |
Anthony R. Rochte (1968) |
Year of Election or Appointment: 2013 |
Vice President |
Mr. Rochte also serves as Vice President of other funds. Mr. Rochte serves as President of Fidelity SelectCo, LLC (investment adviser firm, 2012-present) and is an employee of Fidelity Investments (2012-present). Prior to joining Fidelity Investments, Mr. Rochte served as Senior Managing Director and head of State Street Global Advisors’ North American Intermediary Business Group (2006-2012). |
Stacie M. Smith (1974) |
Year of Election or Appointment: 2013 |
Assistant Treasurer |
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016). |
Renee Stagnone (1975) |
Year of Election or Appointment: 2016 |
Assistant Treasurer |
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016). |
107 | Annual Report |
A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividend-received deduction for corporate shareholders:
September 2015 | December 2015 | March 2016 | June 2016 | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Consumer Staples Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Energy Index ETF | 94 | % | 94 | % | 98 | % | 98 | % | ||||||||
Fidelity MSCI Financials Index ETF | 56 | % | 56 | % | 62 | % | 62 | % | ||||||||
Fidelity MSCI Health Care Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Industrials Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Information Technology Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Materials Index ETF | 92 | % | 92 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Real Estate Index ETF | — | — | — | — | ||||||||||||
Fidelity MSCI Telecommunication Services Index ETF | 98 | % | 98 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Utilities Index ETF | 100 | % | 100 | % | 100 | % | 100 | % |
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.
September 2015 | December 2015 | March 2016 | June 2016 | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Consumer Staples Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Energy Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Financials Index ETF | 60 | % | 60 | % | 66 | % | 66 | % | ||||||||
Fidelity MSCI Health Care Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Industrials Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Information Technology Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Materials Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Real Estate Index ETF | — | — | — | — | ||||||||||||
Fidelity MSCI Telecommunication Services Index ETF | 98 | % | 98 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Utilities Index ETF | 95 | % | 95 | % | 100 | % | 100 | % |
The funds will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Annual Report | 108 |
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity MSCI Consumer Discretionary Index ETF
Fidelity MSCI Consumer Staples Index ETF
Fidelity MSCI Energy Index ETF
Fidelity MSCI Financials Index ETF
Fidelity MSCI Health Care Index ETF
Fidelity MSCI Industrials Index ETF
Fidelity MSCI Information Technology Index ETF
Fidelity MSCI Materials Index ETF
Fidelity MSCI Real Estate Index ETF
Fidelity MSCI Telecommunication Services Index ETF
Fidelity MSCI Utilities Index ETF
Board Approval of Investment Advisory Contracts
On July 27, 2016, the Board of Trustees, including the Independent Trustees (together, the Board), voted to ratify an amended and restated management contract (Amended Contract) for each fund to decrease the management fees paid by the fund to Fidelity SelectCo, LLC (SelectCo), the fund’s investment adviser, by 3.6 basis points, effective July 1, 2016. The Board, assisted by the advice of fund counsel and
Independent Trustees’ counsel, considered a broad range of information relevant to the approval of the Amended Contracts.
Nature, Extent, and Quality of Services Provided. The Board noted that it previously received and considered materials relating to the nature, extent and quality of services provided by SelectCo and the sub-adviser, BlackRock Fund Advisors (BFA), to each fund, including the resources dedicated to investment management and support services, shareholder and administrative services, the benefits to shareholders of investment in a large fund family, and the investment performance of the fund in connection with the annual renewal of each fund’s current management contract with SelectCo and Sub- Advisory and ETF Services Agreement with BFA (together, the Advisory Contracts). At its January 2016 meeting, the Board concluded that the nature, extent and quality of the services provided to each fund under the Advisory Contracts should benefit the shareholders of each fund. The Board noted that approval of the Amended Contracts would not change the funds’ portfolio managers, the investment processes, the level or nature of services provided, the resources and personnel allocated or trading and compliance operations. The Board concluded that the nature, extent, and quality of services to be provided to each fund under the Amended Contracts will continue to benefit the shareholders of each fund.
Competitiveness of Management Fee and Total Expense Ratio. The Board considered that it received and reviewed information regarding each fund’s management fee rate and total expense ratio compared to “mapped groups” of competitive funds and classes at the current management fee and expense levels in connection with the annual renewal of the Advisory Contracts. Based on its review, the Board concluded at its January 2016 meeting that each fund’s current management fee and total expense ratio are fair and reasonable in light of the services that each fund receives and the other factors considered.
In its review of the proposed management fee rate under the Amended Contracts, the Board considered that the proposed fee rate is lower by 3.6 basis points than the current management fee rate. The Board considered that each fund has an all-inclusive management fee contract under which SelectCo is responsible for paying all operating expenses of the fund with certain exceptions. The Board also considered that each fund’s management fee rate and total expense ratio would continue to rank below the median of its competitor funds based on the competitive mapped group data provided to the Board in connection with the annual renewal of the Advisory Contracts.
Based on its review, the Board concluded that each fund’s management fee and total expense ratio continue to be fair and reasonable in light of the services that each fund receives and the other factors considered.
Costs of the Services and Profitability. The Board considered that it previously reviewed information regarding the revenues earned, the expenses incurred by Fidelity in providing services to each fund and the level of Fidelity’s profitability. At its January 2016 meeting, the Board concluded that it was satisfied that the profitability of Fidelity in connection with the operation of each fund was not excessive. Because the Board was approving an arrangement under which the management fees were being reduced, the Board did not consider Fidelity’s costs of services, revenues, or profitability to be significant factors in its decision to approve the Amended Contracts.
Economies of Scale. The Board considered that it previously received and reviewed information regarding 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 a potential realization of any further economies of scale and that it concluded, at its January 2016 meeting, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity. In connection with the approval of each fund’s Amended Contract, the Board did not consider economies of scale because the proposed fee arrangement lowers the fund’s management fee. The Board will continue to review economies of scale in connection with future renewals of the Amended Contracts.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that each fund’s Amended Contract should be ratified and approved.
109 | Annual Report |
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Annual Report | 110 |
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111 | Annual Report |
Investment Adviser
Fidelity SelectCo, LLC
Denver, CO
Investment Sub-Advisers
BlackRock Fund Advisors
San Francisco, CA
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
State Street Bank and Trust Company
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
State Street Bank and Trust Company
Boston, MA
The Fidelity Telephone Connection
1-800-FIDELITY
EXT-ANN-0916 771728.1.0 1.9584796.102 | Corporate Headquarters 245 Summer St., Boston, MA 02210 www.fidelity.com |
Item 2. | Code of Ethics |
As of the end of the period, July 31, 2016, 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 David A. Rosow is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Rosow 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 MSCI Consumer Discretionary Index ETF, Fidelity MSCI Consumer Staples Index ETF, Fidelity MSCI Energy Index ETF, Fidelity MSCI Financials Index ETF, Fidelity MSCI Health Care Index ETF, Fidelity MSCI Industrials Index ETF, Fidelity MSCI Information Technology Index ETF, Fidelity MSCI Materials Index ETF, Fidelity MSCI Real Estate Index ETF, Fidelity MSCI Telecommunication Services Index ETF and Fidelity MSCI Utilities Index ETF (the “Funds”):
Services Billed by Deloitte Entities
July 31, 2016 FeesA
Audit Fees | Audit- Related Fees | Tax Fees | All Other Fees | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 13,000 | $ | — | $ | 2,500 | $ | 300 | ||||||||
Fidelity MSCI Consumer Staples Index ETF | $ | 13,000 | $ | — | $ | 2,500 | $ | 300 | ||||||||
Fidelity MSCI Energy Index ETF | $ | 13,000 | $ | — | $ | 2,500 | $ | 300 | ||||||||
Fidelity MSCI Financials Index ETF | $ | 13,000 | $ | — | $ | 2,500 | $ | 300 | ||||||||
Fidelity MSCI Health Care Index ETF | $ | 13,000 | $ | — | $ | 2,500 | $ | 300 | ||||||||
Fidelity MSCI Industrials Index ETF | $ | 13,000 | $ | — | $ | 2,500 | $ | 300 | ||||||||
Fidelity MSCI Information Technology Index ETF | $ | 13,000 | $ | — | $ | 2,500 | $ | 300 | ||||||||
Fidelity MSCI Materials Index ETF | $ | 13,000 | $ | — | $ | 2,500 | $ | 300 | ||||||||
Fidelity MSCI Real Estate Index ETF | $ | 13,000 | $ | — | $ | 2,500 | $ | 300 | ||||||||
Fidelity MSCI Telecommunication Services Index ETF | $ | 13,000 | $ | — | $ | 2,500 | $ | 300 | ||||||||
Fidelity MSCI Utilities Index ETF | $ | 13,000 | $ | — | $ | 2,500 | $ | 300 |
July 31, 2015 FeesA,B
Audit Fees | Audit- Related Fees | Tax Fees | All Other Fees | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 13,000 | $ | — | $ | 3,500 | $ | 700 | ||||||||
Fidelity MSCI Consumer Staples Index ETF | $ | 13,000 | $ | — | $ | 3,500 | $ | 700 | ||||||||
Fidelity MSCI Energy Index ETF | $ | 13,000 | $ | — | $ | 3,500 | $ | 700 | ||||||||
Fidelity MSCI Financials Index ETF | $ | 13,000 | $ | — | $ | 3,500 | $ | 700 | ||||||||
Fidelity MSCI Health Care Index ETF | $ | 13,000 | $ | — | $ | 3,500 | $ | 700 | ||||||||
Fidelity MSCI Industrials Index ETF | $ | 13,000 | $ | — | $ | 3,500 | $ | 700 | ||||||||
Fidelity MSCI Information Technology Index ETF | $ | 13,000 | $ | — | $ | 3,500 | $ | 700 | ||||||||
Fidelity MSCI Materials Index ETF | $ | 13,000 | $ | — | $ | 3,500 | $ | 600 | ||||||||
Fidelity MSCI Real Estate Index ETF | $ | 11,000 | $ | — | $ | 2,500 | $ | 300 | ||||||||
Fidelity MSCI Telecommunication Services Index ETF | $ | 13,000 | $ | — | $ | 3,500 | $ | 600 | ||||||||
Fidelity MSCI Utilities Index ETF | $ | 13,000 | $ | — | $ | 3,500 | $ | 700 |
A | Amounts may reflect rounding. |
B | Fidelity MSCI Real Estate Index ETF commenced operations on February 2, 2015. |
The following table presents 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 Funds and that are rendered on behalf of Fidelity SelectCo, LLC (“SelectCo”) and entities controlling, controlled by, or under common control with SelectCo (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 Funds (“Fund Service Providers”):
Services Billed by Deloitte Entities
July 31, 2016A | July 31, 2015A,B | |||||||
Audit-Related Fees | $ | 35,000 | $ | — | ||||
Tax Fees | $ | 10,000 | $ | — | ||||
All Other Fees | $ | — | $ | 175,000 |
A | Amounts may reflect rounding. |
B | May include amounts billed prior to the Fidelity MSCI Real Estate Index ETF’s commencement of operations. |
“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 Funds, SelectCo (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 Funds are as follows:
Billed By | July 31, 2016 A | July 31, 2015 A,B | ||||||
Deloitte Entities | $ | 105,000 | $ | 580,000 |
A | Amounts may reflect rounding. |
B | May include amounts billed prior to the Fidelity MSCI Real Estate Index ETF’s commencement of operations. |
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 audit of the Funds, taking into account representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and its related entities and SelectCo’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund 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 on a periodic basis.
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 Funds’ last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5. | Audit Committee of Listed Registrants |
The Board of Trustees of Fidelity Covington Trust has established a separately-designated standing audit committee in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. As of July 31, 2016, the members of the audit committee were David A. Rosow, Garnett A. Smith and Michael E. Wiley.
Item 6. | Investments |
(a) | Not applicable. |
(b) | Not applicable |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not applicable.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not applicable.
Item 9. | Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers |
Not applicable.
Item 10. | 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 11. | 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 second fiscal quarter of 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 12. | Exhibits |
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. | ||
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. | ||
(a) | (3) | Not applicable. | ||
(b) | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
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/Adrien E. Deberghes | |
Adrien E. Deberghes | ||
President and Treasurer | ||
Date: | September 27, 2016 |
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/ Adrien E. Deberghes | |
Adrien E. Deberghes | ||
President and Treasurer | ||
Date: | September 27, 2016 | |
By: | /s/ Howard J. Galligan III | |
Howard J. Galligan III | ||
Chief Financial Officer | ||
Date: | September 27, 2016 |