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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, 2017
Table of Contents
Item 1. | Reports to Stockholders |
Table of Contents
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 Telecommunications Services Index ETF
Fidelity MSCI Utilities Index ETF
Annual Report
July 31, 2017
Table of Contents
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.
© 2017 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, http://www.advisor.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 |
Table of Contents
The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.
3 | Annual Report |
Table of Contents
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 annnual 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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Consumer Discretionary Index | 14.41% | 11.40% | ||||||
Fidelity MSCI Consumer Discretionary Index | 14.48% | 11.43% | ||||||
MSCI USA IMI Consumer Discretionary IndexA | 14.54% | 11.55% | ||||||
S&P 500 IndexA | 16.04% | 11.96% |
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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Consumer Discretionary Index | 18.21% | 11.23% | ||||||
Fidelity MSCI Consumer Discretionary Index | 18.26% | 11.21% | ||||||
MSCI USA IMI Consumer Discretionary IndexA | 18.32% | 11.37% | ||||||
S&P 500 IndexA | 17.90% | 11.63% |
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.
A | From October 21, 2013. |
B | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
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.
Annual Report | 4 |
Table of Contents
Fidelity® MSCI Consumer Discretionary Index ETF
Performance
$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.
5 | Annual Report |
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Fidelity® MSCI Consumer Discretionary Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2017, the exchange-traded fund’s (ETF) net asset value rose 14.41%, roughly in line with the 14.54% return of the MSCI USA IMI Consumer Discretionary Index. The ETF’s market price gained 14.48% over the same time frame, while the broad-market S&P 500® index returned 16.04%. The consumer discretionary sector notched a solid gain, as stocks here were boosted in part by strong fundamentals. The surge in positive business and consumer sentiment following the November election, along with a decline in unemployment claims, provided a solid backdrop for the U.S. consumer. However, consumer spending remained anemic during the period – a notable negative. Among industries, internet & direct market retail (+36%) – the MSCI sector index’s largest industry component – outperformed, largely on the strength of Amazon.com. Shares of the e-commerce giant advanced 30% the past year. The big news was Amazon’s $13.5 billion buyout of grocer Whole Foods, which shook the broader retailing industry and sent Amazon shares higher. Major index industry components movies & entertainment (+17%) and restaurants (+15%) also outperformed. Conversely, brick-and-mortar retailers struggled overall amid consumers’ trending preference for online shopping. General merchandise stores (-21%), including discount retailerTarget (-22%), were particularly hard-hit.
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, 2017 | ||||
% of fund’s net assets | ||||
Amazon.com, Inc. | 12.3 | |||
Comcast Corp. Class A | 5.9 | |||
The Home Depot, Inc. | 5.6 | |||
The Walt Disney Co. | 5.3 | |||
McDonald’s Corp. | 3.9 | |||
The Priceline Group, Inc. | 3.0 | |||
Charter Communications, Inc. Class A | 2.6 | |||
Time Warner, Inc. | 2.4 | |||
Starbucks Corp. | 2.4 | |||
NIKE, Inc. Class B | 2.4 | |||
|
| |||
45.8 | ||||
|
|
Industries as of July 31, 2017 |
* | Includes short-term investments and net other assets. |
Annual Report | 6 |
Table of Contents
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 annnual 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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Consumer Staples Index | 3.82 | % | 10.57 | % | ||||
Fidelity MSCI Consumer Staples Index | 3.89 | % | 10.57 | % | ||||
MSCI USA IMI Consumer Staples IndexA | 3.93 | % | 10.73 | % | ||||
S&P 500 IndexA | 16.04 | % | 11.96 | % |
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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Consumer Staples Index | 2.76 | % | 10.64 | % | ||||
Fidelity MSCI Consumer Staples Index | 2.73 | % | 10.65 | % | ||||
MSCI USA IMI Consumer Staples IndexA | 2.87 | % | 10.81 | % | ||||
S&P 500 IndexA | 17.90 | % | 11.63 | % |
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.
A | From October 21, 2013. |
B | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
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.
$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.
7 | Annual Report |
Table of Contents
Fidelity® MSCI Consumer Staples Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2017, the exchange-traded fund’s (ETF) net asset value rose 3.82%, roughly in line with the 3.93% return of the MSCI USA IMI Consumer Staples Index. The ETF’s market price gained 3.89% over the same time frame, while the broad-market S&P 500® index returned 16.04%. The November U.S. presidential election of Donald Trump brought with it hopes of potential business-friendly reform and individual and corporate tax cuts. In addition, acceleration in global economic activity, among other factors, helped amplify gains among cyclical sectors of the market, while more-defensive areas such as consumer staples fell behind. The food retail industry returned -12%, shaken in June when e-commerce giant Amazon.com announced its intent to acquire organic grocer Whole Foods Market. Investors were concerned the pending acquisition would disrupt the industry, leaving in its wake larger chains such as Kroger (-27%). Drug retail (-8%) was another weak-performing group. Here, drugstore chain Rite Aid (-66%) was a major laggard. Issues stemming from its proposed acquisition by Walgreen Boots Alliance weighed on the stock. The deal fell apart in June. On the plus side, tobacco stocks gained 13% this past year, partly due to the growing popularity of alternatives to traditional cigarettes. Here, shares of Philip Morris International gained 21% and Reynolds American rose 35%.
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, 2017 | ||||
% of fund’s net assets | ||||
The Procter & Gamble Co. | 11.7 | |||
The Coca-Cola Co. | 9.4 | |||
Philip Morris International, Inc. | 9.1 | |||
Pepsico, Inc. | 8.4 | |||
Altria Group, Inc. | 6.3 | |||
Wal-Mart Stores, Inc. | 4.6 | |||
CVS Health Corp. | 4.1 | |||
Walgreens Boots Alliance, Inc. | 3.7 | |||
Costco Wholesale Corp. | 3.5 | |||
Mondelez International, Inc. Class A | 3.4 | |||
|
| |||
64.2 | ||||
|
|
Industries as of July 31, 2017 |
* | Includes short-term investments and net other assets. |
Annual Report | 8 |
Table of Contents
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 annnual 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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Energy Index | -0.96 | % | -5.69 | % | ||||
Fidelity MSCI Energy Index | -0.75 | % | -5.67 | % | ||||
MSCI USA IMI Energy IndexA | -0.79 | % | -5.59 | % | ||||
S&P 500 IndexA | 16.04 | % | 11.96 | % |
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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Energy Index ETF – NAVA | -5.17 | % | -6.42 | % | ||||
Fidelity MSCI Energy Index ETF | -5.02 | % | -6.39 | % | ||||
MSCI USA IMI Energy IndexA | -5.03 | % | -6.32 | % | ||||
S&P 500 IndexA | 17.90 | % | 11.63 | % |
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.
A | From October 21, 2013. |
B | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
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.
$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.
9 | Annual Report |
Table of Contents
Fidelity® MSCI Energy Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2017, the exchange-traded fund’s (ETF) net asset value returned -0.96%, roughly in line with the -0.79% result of the MSCI USA IMI Energy Index. The ETF’s market price returned -0.75% over the same time frame, while the broad-market S&P 500® index gained 16.04%. Crude oil prices were volatile during the past year, influencing corporate profitability for energy firms. In particular, declining oil prices in the second half of the period led to bearish sentiment for many companies. Most major subindustries in the MSCI sector index lost ground the past 12 months, including oil & gas equipment & services (-7%), oil & gas exploration & production (-6%), and integrated oil & gas (-2%). Conversely, oil & gas refining & marketing (+28%) proved to be a bright spot, as lower crude oil input prices helped drive higher profit margins for refined petroleum products. Notable individual laggards included integrated oil giant Exxon Mobil (-7%) and oil-field services company Schlumberger (-13%). On the positive side, integrated oil company Chevron (+11%) benefited from several capital-intensive projects that became operational and were perceived to contribute to future earnings growth. Refining company Marathon Petroleum (+46%) rallied amid a favorable outlook for the company’s profitability.
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, 2017 | ||||
% of fund’s net assets | ||||
Exxon Mobil Corp. | 23.0 | |||
Chevron Corp. | 14.3 | |||
Schlumberger Ltd. | 6.6 | |||
Conocophillips | 3.9 | |||
EOG Resources, Inc. | 3.8 | |||
Occidental Petroleum Corp. | 3.3 | |||
Kinder Morgan, Inc. | 2.8 | |||
Phillips 66 | 2.6 | |||
Halliburton Co. | 2.5 | |||
Valero Energy Corp. | 2.2 | |||
|
| |||
65.0 | ||||
|
|
Industries as of July 31, 2017 |
Annual Report | 10 |
Table of Contents
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 annnual 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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Financials Index | 31.31% | 13.10% | ||||||
Fidelity MSCI Financials Index | 31.23% | 13.08% | ||||||
MSCI USA IMI Financials IndexA | 31.52% | 13.24% | ||||||
S&P 500 IndexA | 16.04% | 11.96% |
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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Financials Index | 34.18 | % | 12.93 | % | ||||
Fidelity MSCI Financials Index | 34.34 | % | 12.92 | % | ||||
MSCI USA IMI Financials IndexA | 34.41 | % | 13.07 | % | ||||
S&P 500 IndexA | 17.90 | % | 11.63 | % |
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.
A | From October 21, 2013. |
B | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
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.
$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.
11 | Annual Report |
Table of Contents
Fidelity® MSCI Financials Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2017, the exchange-traded fund’s (ETF) net asset value rose 31.31%, roughly in line with the 31.52% return of the MSCI USA IMI Financials Index. The ETF’s market price gained 31.23% over the same period, while the broad-market S&P 500® index advanced 16.04%. Financials rallied as the November presidential election result fueled anticipation of regulatory changes, corporate tax reform and improved economic growth. The Federal Reserve’s decision to hike its short-term interest rate target three times and favorable results in June from annual stress tests particularly helped diversified and regional banks, which together represented about 44% of the benchmark. Among the biggest individual gainers were diversified banks JPMorgan Chase & Co. (+47%) and Bank of America (+69%), and regional bank PNC Financial Services Group (+59%). The investment banking & brokerage and life & health insurance groups also posted particularly strong returns. Notable performers included investment banks Morgan Stanley (+66%) and Goldman Sachs Group (+43%). Laggards within the benchmark included real estate investment trusts (REITs), which generally struggled as interest rates rose and investors shifted toward more-economically sensitive segments. Weaker individual performers here included mall operator Simon Property Group (-4%) and self-storage firm Public Storage (-6%). Both Simon Property Group and Public Storage, along with the ETF’s other REITs, were eliminated from the fund by period end due to the reclassification highlighted below.
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 recognized as 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 real estate as an industry group, with the exception of mortgage-related REITs.
Investment Summary
Top Ten Stocks as of July 31, 2017 | ||||
% of fund’s net assets | ||||
Jpmorgan Chase & Co. | 8.8 | |||
Wells Fargo & Co. | 6.9 | |||
Bank Of America Corp. | 6.5 | |||
Berkshire Hathaway, Inc. Class B | 5.8 | |||
Citigroup, Inc. | 5.1 | |||
US Bancorp | 2.4 | |||
The Goldman Sachs Group, Inc. | 2.2 | |||
Chubb Ltd. | 1.8 | |||
Morgan Stanley | 1.8 | |||
American Express Co. | 1.8 | |||
|
| |||
43.1 | ||||
|
|
Industries as of July 31, 2017 |
* | Includes short-term investments and net other assets. |
Annual Report | 12 |
Table of Contents
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 annnual 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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Health Care Index ETF – NAVA | 9.30 | % | 13.72 | % | ||||
Fidelity MSCI Health Care Index ETF – Market PriceB | 9.27 | % | 13.69 | % | ||||
MSCI USA IMI Health Care IndexA | 9.39 | % | 13.85 | % | ||||
S&P 500 IndexA | 16.04 | % | 11.96 | % |
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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Health Care Index ETF – NAVA | 14.67 | % | 13.90 | % | ||||
Fidelity MSCI Health Care Index ETF – Market PriceB | 14.86 | % | 13.93 | % | ||||
MSCI USA IMI Health Care IndexA | 14.79 | % | 14.04 | % | ||||
S&P 500 IndexA | 17.90 | % | 11.63 | % |
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.
A | From October 21, 2013. |
B | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
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.
$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.
13 | Annual Report |
Table of Contents
Fidelity® MSCI Health Care Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2017, the exchange-traded fund’s (ETF) net asset value gained 9.30%, roughly in line with the 9.39% return of the MSCI USA IMI Health Care Index. The ETF’s market price gained 9.27% over the same time frame, while the broad-market S&P 500® index returned 16.04%. In general, health care companies enjoyed solid balance sheets and benefited from rising demand for the products and services they offer. However, the sector significantly lagged the broad market the past year, primarily due to the roughly breakeven performance of pharmaceuticals – the MSCI sector index’s largest subindustry component. Pharma stocks – including Bristol-Myers Squibb (-22%) and Pfizer (-7%) – were hampered by increasing concern about potential legislation for drug-pricing practices. Conversely, managed health care (+36%) stocks, such as Anthem (+44%) and UnitedHealth Group (+36%), rallied this period, boosted by the June release of the Senate Republican health care bill, which appeared less onerous to the industry than previously expected. The biotechnology (+13%) segment, another significant index component, benefited from new product launches, merger-and-acquisition activity and promising trial data. Notable contributors here included Celgene (+21%), which develops treatments for cancer.
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, 2017 | ||||
% of fund’s net assets | ||||
Johnson & Johnson | 10.1 | |||
Pfizer, Inc. | 5.6 | |||
Unitedhealth Group, Inc. | 5.2 | |||
Merck & Co., Inc. | 5.0 | |||
Amgen, Inc. | 3.6 | |||
Medtronic PLC | 3.2 | |||
Abbvie, Inc. | 3.1 | |||
Celgene Corp. | 3.0 | |||
Gilead Sciences, Inc. | 2.8 | |||
Bristol-Myers Squibb Co. Class A | 2.7 | |||
|
| |||
44.3 | ||||
|
|
Industries as of July 31, 2017 |
* | Includes short-term investments and net other assets. |
Annual Report | 14 |
Table of Contents
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 annnual 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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Industrials Index | 18.08 | % | 10.90 | % | ||||
Fidelity MSCI Industrials Index | 17.99 | % | 10.91 | % | ||||
MSCI USA IMI Industrials IndexA | 18.19 | % | 11.03 | % | ||||
S&P 500 IndexA | 16.04 | % | 11.96 | % |
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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Industrials Index | 21.69 | % | 10.99 | % | ||||
Fidelity MSCI Industrials Index | 22.07 | % | 11.04 | % | ||||
MSCI USA IMI Industrials IndexA | 21.83 | % | 11.12 | % | ||||
S&P 500 IndexA | 17.90 | % | 11.63 | % |
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.
A | From October 21, 2013. |
B | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
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.
$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.
15 | Annual Report |
Table of Contents
Fidelity® MSCI Industrials Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2017, the exchange-traded fund’s (ETF) net asset value returned 18.08%, roughly in line with the 18.19% result of the MSCI USA IMI Industrials Index. The ETF’s market price returned 17.99% over the same time frame, while the broad-market S&P 500® index returned 16.04%. Except for a surge of outperformance immediately following the U.S. presidential election, the industrials sector performed about in line with the broader market, as hopes for a major increase in federal infrastructure spending were overshadowed by other priorities. Within the MSCI sector index, the industry group with the largest average weighting, aerospace & defense, also was one of its best performers (+34%). The robust result here was driven partly by outstanding performance of commercial jet manufacturer Boeing (+87%). Other groups with a reasonably large weighting in the index that did well included construction machinery & heavy trucks (+35%), railroads (+27%) and industrial machinery (+25%). Conversely, industrial conglomerates, the second-largest MSCI index group by average weighting, struggled this period (0%). Here, major index name General Electric (-15%) was a weak performer. Other noteworthy laggards among subindustries were building products (+2%) and construction & engineering (+3%).
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: The Board of Trustees has approved, subject to shareholder approval, a proposal to change Fidelity® MSCI Industrials Index ETF from diversified to non-diversified. A meeting of the fund’s shareholders will be held during the fourth quarter of 2017 to vote on the proposal. If approved, the changes will take effect on or about January 1, 2018 (or the first day of the month following shareholder approval).
Investment Summary
Top Ten Stocks as of July 31, 2017 | ||||
% of fund’s net assets | ||||
General Electric Co. | 8.5 | |||
The Boeing Co. | 5.4 | |||
3M Co. | 4.6 | |||
Honeywell International, Inc. | 3.7 | |||
United Technologies Corp. | 3.4 | |||
Union Pacific Corp. | 3.2 | |||
Lockheed Martin Corp. | 2.9 | |||
United Parcel Service, Inc. Class B | 2.9 | |||
Caterpillar, Inc. | 2.5 | |||
Fedex Corp. | 2.0 | |||
|
| |||
39.1 | ||||
|
|
Industries as of July 31, 2017 |
* | Includes short-term investments and net other assets. |
Annual Report | 16 |
Table of Contents
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 annnual 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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Information Technology Index | 28.86 | % | 17.66 | % | ||||
Fidelity MSCI Information Technology Index | 28.76 | % | 17.66 | % | ||||
MSCI USA IMI Information Technology IndexA | 29.00 | % | 17.78 | % | ||||
S&P 500 IndexA | 16.04 | % | 11.96 | % |
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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Information Technology Index | 33.23 | % | 16.81 | % | ||||
Fidelity MSCI Information Technology Index | 33.45 | % | 16.81 | % | ||||
MSCI USA IMI Information Technology IndexA | 33.41 | % | 16.93 | % | ||||
S&P 500 IndexA | 17.90 | % | 11.63 | % |
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.
A | From October 21, 2013. |
B | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
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.
17 | Annual Report |
Table of Contents
Fidelity® MSCI Information Technology Index ETF
Performance
$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 | 18 |
Table of Contents
Fidelity® MSCI Information Technology Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2017, the exchange-traded fund’s (ETF) net asset value returned 28.86%, roughly in line with the 29.00% result of the MSCI USA IMI Information Technology Index. The ETF’s market price returned 28.76% over the same time frame, while the broad-market S&P 500® index returned 16.04%. Technology was the second-best performer among the 11 S&P 500® sectors this period. Within the MSCI index, semiconductor equipment (+62%) was the top-performing industry group, paced by stocks such as Applied Materials (+70%). Although semiconductors (+28%) had a less-stellar result, this group was home to one of the market’s top performers: Nvidia (+187%), whose shares rose sharply in May after the company unveiled first-quarter financial results indicating a nearly 50% jump in revenue. Other noteworthy groups included home entertainment software (+56%), electronic equipment & instruments (+50%) and technology hardware, storage & peripherals (+43%), where smartphone maker Apple (+45%) was a significant positive. Conversely, the only index segment with less than a double-digit gain was IT consulting & other services (+8%). Here, IBM (-7%) struggled, as investors seemed to lose patience with the company’s attempted transformation. Communications equipment (+14%) also lagged.
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, 2017 | ||||
% of fund’s net assets | ||||
Apple, Inc. | 13.8 | |||
Microsoft Corp. | 9.5 | |||
Facebook, Inc. Class A | 7.1 | |||
Alphabet, Inc. Class C | 5.2 | |||
Alphabet, Inc. Class A | 5.0 | |||
Visa, Inc. Class A | 3.3 | |||
Intel Corp. | 3.0 | |||
Cisco Systems, Inc. | 2.8 | |||
Oracle Corp. | 2.7 | |||
International Business Machines Corp. | 2.3 | |||
|
| |||
54.7 | ||||
|
|
Industries as of July 31, 2017 |
* | Includes short-term investments and net other assets. |
19 | Annual Report |
Table of Contents
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 annnual 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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Materials Index | 16.17% | 8.42% | ||||||
Fidelity MSCI Materials Index | 16.09% | 8.41% | ||||||
MSCI USA IMI Materials IndexA | 16.26% | 8.51% | ||||||
S&P 500 IndexA | 16.04% | 11.96% |
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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Materials Index | 21.00% | 8.23% | ||||||
Fidelity MSCI Materials Index | 21.21% | 8.25% | ||||||
MSCI USA IMI Materials IndexA | 21.08% | 8.32% | ||||||
S&P 500 IndexA | 17.90% | 11.63% |
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.
A | From October 21, 2013. |
B | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
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.
$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 | 20 |
Table of Contents
Fidelity® MSCI Materials Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2017, the exchange-traded fund’s (ETF) net asset value gained 16.17%, roughly in line with the 16.26% result of the MSCI USA IMI Materials Index. The ETF’s market price returned 16.09% over the same time frame, while the broad-market S&P 500® index advanced 16.04%. Relative to the broader market, the materials sector delivered choppy performance, ending the period about even with the S&P 500®. Within the MSCI sector index, diversified chemicals (+30%) and commodity chemicals (+28%) were two strong-performing subindustries, although aluminum (+40%)–a much smaller part of the index– actually was the best-performing group. Within diversified chemicals, index heavyweights Dow Chemical (+24%) and DuPont (+22%) notched healthy gains, as investors anticipated the expected completion of their merger in the third quarter of 2017. In the same category, Chemours (+412%), a 2015 spinoff from DuPont, posted a huge gain this period, although as a considerably smaller index component. Elsewhere, metal & glass containers (+20%) and paper packaging (+18%) both did well. Conversely, silver (-31%) and gold (-13%) struggled the past 12 months, hampered partly by U.S. dollar strength in the final quarter of 2016, from which both metals failed to recover. Among more-significant index groups, steel (+8%) and construction materials (+9%) also lagged. Notable individual disappointments included gold giant Newmont Mining (-15%) and precious metals producer Coeur Mining (-46%), as well as Bemis (-15%), a global manufacturer of packaging products and pressure-sensitive materials.
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, 2017 | ||||
% of fund’s net assets | ||||
The Dow Chemical Co. | 9.2 | |||
EI Du Pont De Nemours & Co. | 8.3 | |||
Monsanto Co. | 6.0 | |||
Praxair, Inc. | 4.4 | |||
Ecolab, Inc. | 4.1 | |||
Air Products & Chemicals, Inc. | 3.6 | |||
Lyondellbasell Industries N.V. Class A | 3.6 | |||
The Sherwin-Williams Co. | 3.3 | |||
PPG Industries, Inc. | 3.2 | |||
International Paper Co. | 2.5 | |||
|
| |||
48.2 | ||||
|
|
Industries as of July 31, 2017 |
* | Includes short-term investments and net other assets. |
21 | Annual Report |
Table of Contents
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 annnual 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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Real Estate Index | -1.53 | % | 4.28 | % | ||||
Fidelity MSCI Real Estate Index | -1.68 | % | 4.27 | % | ||||
MSCI USA IMI Real Estate IndexA | -1.48 | % | 4.31 | % | ||||
S&P 500 IndexA | 16.04 | % | 10.72 | % |
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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Real Estate Index | 1.02 | % | 3.86 | % | ||||
Fidelity MSCI Real Estate Index | 1.02 | % | 3.88 | % | ||||
MSCI USA IMI Real Estate IndexA | 1.08 | % | 3.89 | % | ||||
S&P 500 IndexA | 17.90 | % | 10.19 | % |
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.
A | From February 2, 2015. |
B | From February 5, 2015, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
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.
$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 | 22 |
Table of Contents
Fidelity® MSCI Real Estate Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2017, the exchange-traded fund’s (ETF) net asset value returned -1.53%, roughly in line with the -1.48% result of the MSCI USA IMI Real Estate Index. The ETF’s market price returned -1.68% over the same time frame, while the broad-market S&P 500® index rose 16.04%. During the period, investors encountered an unusually wide gap between the best- and worst-performing subindustries in the index. Industrial real estate investment trusts (REITs), for example, were up 13% on growing demand fueled by a rise in e-commerce, while hotel & resort REITs added 11%, as investors became more optimistic about U.S. economic growth and consumers continued to favor experiences over things. In contrast, retail REITs (-25%) were the weakest performers by far, reflecting mounting concerns about a challenging business environment for retail tenants and the continued shift to e-commerce. Not surprisingly, then, many of the biggest detractors came from this group: mall operators Simon Property Group (-28%) and GGP (-26%); shopping center REITs Kimco Realty (-34%), Macerich (-33%) and Realty Income (-17%); and “power center” owner DDR (-45%). Also detracting was self-storage provider Public Storage (-11%), which, along with competitors, faced weakening supply/demand trends in self-storage. In contrast, data-center REITs such as Equinix (+23%) and Digital Realty Trust (+14%) were strong performers, benefiting from stronger demand for their specialized data-storage facilities. Communications infrastructure owners American Tower (+20%), Crown Castle International (+11%) and SBA Communications (+19%) all were strong performers, as were industrial REIT Prologis (+15%) and real estate services provider CBRE Group (+33%).
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, 2017 | ||||
% of fund’s net assets | ||||
American Tower Corp. | 5.5 | |||
Simon Property Group, Inc. | 4.8 | |||
Crown Castle International Corp. | 3.9 | |||
Equinix, Inc. | 3.3 | |||
Prologis, Inc. | 3.1 | |||
Public Storage | 3.0 | |||
Welltower, Inc. | 2.5 | |||
Avalonbay Communities, Inc. | 2.5 | |||
Equity Residential | 2.4 | |||
Weyerhaeuser Co. | 2.4 | |||
|
| |||
33.4 | ||||
|
|
Industries as of July 31, 2017 |
23 | Annual Report |
Table of Contents
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 annnual 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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Telecommunication | 4.58% | 9.82% | ||||||
Fidelity MSCI Telecommunication | 4.58% | 9.85% | ||||||
MSCI USA IMI Telecommunication Services 25/50 IndexA | 4.83% | 9.89% | ||||||
S&P 500 IndexA | 16.04% | 11.96% |
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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Telecommunication | 4.68% | 9.41% | ||||||
Fidelity MSCI Telecommunication | 5.02% | 9.44% | ||||||
MSCI USA IMI Telecommunication Services 25/50 IndexA | 4.89% | 9.46% | ||||||
S&P 500 IndexA | 17.90% | 11.63% |
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.
A | From October 21, 2013. |
B | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
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.
Annual Report | 24 |
Table of Contents
Fidelity® MSCI Telecommunication Services Index ETF
Performance
$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.
25 | Annual Report |
Table of Contents
Fidelity® MSCI Telecommunication Services Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2017, the exchange-traded fund’s (ETF) net asset value returned 4.58%, roughly in line with the 4.83% result of the MSCI USA IMI Telecommunication Services 25/50 Index. The ETF’s market price returned 4.58% over the same time frame, while the broad-market S&P 500® index rose 16.04%. After posting a strong return leading up to U.S. elections in November and shortly thereafter, telecommunication services struggled to keep pace with most other sectors in the market, mainly due to fierce competition in the integrated telecom services group (-11%). Here, wireless providers AT&T (-5%) and Verizon Communications (-8%), which together accounted for about 44% of the MSCI sector index the past 12 months, were notable laggards. Conversely, alternative carriers (+62%), representing 20% of the index, delivered the best return for the sector by far, aided by industry consolidation. Straight Path Communications (+869%), an alternative carrier, gained in early April after AT&T announced its plan to acquire the company for $1.25 billion. Also standing out was General Communications (+177%), which in April agreed to merge with media conglomerate Liberty Interactive.
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, 2017 | ||||
% of fund’s net assets | ||||
Verizon Communications, Inc. | 23.9 | |||
AT&T, Inc. | 22.9 | |||
Level 3 Communications, Inc. | 4.4 | |||
T-Mobile US, Inc. | 4.1 | |||
Centurylink, Inc. | 3.8 | |||
Consolidated Communications Holdings, Inc. | 2.9 | |||
Zayo Group Holdings, Inc. | 2.6 | |||
Sprint Corp. | 2.6 | |||
General Communication, Inc. Class A | 2.6 | |||
Straight Path Communications, Inc. | 2.3 | |||
|
| |||
72.1 | ||||
|
|
Industries as of July 31, 2017 |
* | Percentages shown as 0.0% may reflect amounts less than 0.05%. |
Annual Report | 26 |
Table of Contents
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 annnual 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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Utilities Index | 6.61% | 12.93% | ||||||
Fidelity MSCI Utilities Index | 6.58% | 12.95% | ||||||
MSCI USA IMI Utilities IndexA | 6.77% | 13.10% | ||||||
S&P 500 IndexA | 16.04% | 11.96% |
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, 2017 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Utilities Index | 3.07% | 12.46% | ||||||
Fidelity MSCI Utilities Index | 3.04% | 12.47% | ||||||
MSCI USA IMI Utilities IndexA | 3.20% | 12.62% | ||||||
S&P 500 IndexA | 17.90% | 11.63% |
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.
A | From October 21, 2013. |
B | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
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.
$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.
27 | Annual Report |
Table of Contents
Fidelity® MSCI Utilities Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2017, the exchange-traded fund’s (ETF) net asset value rose 6.61%, roughly in line with the 6.77% return of the MSCI USA IMI Utilities Index. The ETF’s market price returned 6.58% over the same time frame, while the broad-market S&P 500® index advanced 16.04%. As interest rates rose from historically low levels early in the period, investors slowly shifted their focus away from utilities stocks with high dividend yields and towards investments backed by stronger business fundamentals and increasing dividends. Electric utilities (+6%) and multi-utilities (+6%), together representing roughly 88% of the MSCI index – anchored the sector’s return. Many of the regulated companies in these groups performed especially well early in the period, buoyed by high dividends that attracted investors. However, renewable energy(+25%), representing less than 1% of the index, delivered the strongest returns of any utilities segment for the 12 months, coinciding with generally improving business fundamentals. The index’s top contributor overall was electric utility NextEra Energy (17%). Independent power producer NRG Energy (76%) also added value, driven by the announcement of its new business plan. Conversely, water utilities (+3%) delivered muted results, with a few companies in that group posting a negative return.
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, 2017 | ||||
% of fund’s net assets | ||||
Nextera Energy, Inc. | 8.4 | |||
Duke Energy Corp. | 7.3 | |||
Dominion Energy, Inc. | 6.0 | |||
The Southern Co. | 5.9 | |||
Exelon Corp. | 4.4 | |||
American Electric Power Co., Inc. | 4.3 | |||
PG&E Corp. | 4.2 | |||
Sempra Energy | 3.3 | |||
PPL Corp. | 3.2 | |||
Edison International | 3.2 | |||
|
| |||
50.2 | ||||
|
|
Industries as of July 31, 2017 |
Annual Report | 28 |
Table of Contents
Fidelity MSCI Consumer Discretionary Index ETF
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
AUTO COMPONENTS – 3.0% |
| |||||||
Auto Parts & Equipment – 2.7% |
| |||||||
Adient PLC | 8,428 | $ | 551,781 | |||||
American Axle & Manufacturing Holdings, Inc. (a) | 7,524 | 110,904 | ||||||
Autoliv, Inc. | 7,934 | 859,966 | ||||||
BorgWarner, Inc. | 19,128 | 894,043 | ||||||
Cooper-Standard Holding, Inc. (a) | 1,609 | 164,536 | ||||||
Dana, Inc. | 13,007 | 308,526 | ||||||
Delphi Automotive PLC | 24,241 | 2,191,871 | ||||||
Dorman Products, Inc. (a) | 2,805 | 219,014 | ||||||
Fox Factory Holding Corp. (a) | 3,150 | 121,118 | ||||||
Gentex Corp. | 25,817 | 439,405 | ||||||
Gentherm, Inc. (a) | 3,321 | 111,088 | ||||||
LCI Industries | 2,205 | 235,384 | ||||||
Lear Corp. | 6,249 | 926,039 | ||||||
Modine Manufacturing Co. (a) | 4,487 | 72,914 | ||||||
Motorcar Parts of America, Inc. (a) | 1,693 | 47,353 | ||||||
Standard Motor Products, Inc. | 1,831 | 92,246 | ||||||
Stoneridge, Inc. (a) | 2,456 | 37,479 | ||||||
Superior Industries International, Inc. | 2,127 | 41,583 | ||||||
Tenneco, Inc. | 4,866 | 269,090 | ||||||
Tower International, Inc. | 1,852 | 45,744 | ||||||
Visteon Corp. (a) | 2,967 | 330,939 | ||||||
|
| |||||||
8,071,023 | ||||||||
|
| |||||||
Tires & Rubber – 0.3% |
| |||||||
Cooper Tire & Rubber Co. | 4,710 | 172,150 | ||||||
The Goodyear Tire & Rubber Co. | 22,657 | 713,922 | ||||||
|
| |||||||
886,072 | ||||||||
|
| |||||||
TOTAL AUTO COMPONENTS |
| 8,957,095 | ||||||
|
| |||||||
AUTOMOBILES – 4.5% |
| |||||||
Automobile Manufacturers – 4.2% |
| |||||||
Ford Motor Co. | 333,551 | 3,742,442 | ||||||
General Motors Co. | 121,257 | 4,362,827 | ||||||
Tesla Motors, Inc. (a) | 11,576 | 3,744,489 | ||||||
Thor Industries, Inc. | 4,719 | 497,147 | ||||||
Winnebago Industries, Inc. | 2,699 | 99,323 | ||||||
|
| |||||||
12,446,228 | ||||||||
|
| |||||||
Motorcycle Manufacturers – 0.3% |
| |||||||
Harley-Davidson, Inc. | 15,859 | 771,857 | ||||||
|
| |||||||
TOTAL AUTOMOBILES |
| 13,218,085 | ||||||
|
| |||||||
DISTRIBUTORS – 0.9% |
| |||||||
Distributors – 0.9% |
| |||||||
Core-Mark Holding Co., Inc. | 4,186 | 153,501 | ||||||
Genuine Parts Co. | 13,362 | 1,134,835 | ||||||
LKQ Corp. (a) | 27,738 | 958,625 | ||||||
Pool Corp. | 3,704 | 400,476 |
Shares | Value | |||||||
Weyco Group, Inc. | 656 | $ | 18,289 | |||||
|
| |||||||
TOTAL DISTRIBUTORS |
| 2,665,726 | ||||||
|
| |||||||
DIVERSIFIED CONSUMER SERVICES – 1.2% |
| |||||||
Education Services – 0.5% |
| |||||||
Adtalem Global Education, Inc. | 5,369 | 174,492 | ||||||
American Public Education, Inc. (a) | 1,495 | 31,844 | ||||||
Bridgepoint Education, Inc. (a) | 1,730 | 16,798 | ||||||
Bright Horizons Family Solutions, | ||||||||
Inc. (a) | 4,269 | 337,294 | ||||||
Capella Education Co. | 1,052 | 72,272 | ||||||
Career Education Corp. (a) | 5,833 | 49,056 | ||||||
Chegg, Inc. (a) | 6,176 | 85,538 | ||||||
Graham Holdings Co. Class B | 416 | 246,438 | ||||||
Grand Canyon Education, Inc. (a) | 4,070 | 299,430 | ||||||
Houghton Mifflin Harcourt Co. (a) | 9,406 | 112,402 | ||||||
K12, Inc. (a) | 3,097 | 54,848 | ||||||
Laureate Education, Inc. Class A (a) | 2,809 | 47,809 | ||||||
Strayer Education, Inc. | 961 | 75,554 | ||||||
|
| |||||||
1,603,775 | ||||||||
|
| |||||||
Specialized Consumer Services – 0.7% |
| |||||||
Carriage Services, Inc. | 1,306 | 31,853 | ||||||
H&R Block, Inc. | 18,687 | 569,954 | ||||||
Regis Corp. (a) | 3,259 | 34,317 | ||||||
Service Corp. International | 16,945 | 588,500 | ||||||
ServiceMaster Global Holdings, | ||||||||
Inc. (a) | 12,073 | 530,729 | ||||||
Sotheby’s (a) | 3,329 | 188,388 | ||||||
Weight Watchers International, Inc. (a) | 2,610 | 93,490 | ||||||
|
| |||||||
2,037,231 | ||||||||
|
| |||||||
TOTAL DIVERSIFIED CONSUMER SERVICES |
| 3,641,006 | ||||||
|
| |||||||
HOTELS, RESTAURANTS & LEISURE – 15.9% |
| |||||||
Casinos & Gaming – 1.9% |
| |||||||
Boyd Gaming Corp. | 7,601 | 190,481 | ||||||
Caesars Acquisition Co. Class A (a) | 4,391 | 85,186 | ||||||
Caesars Entertainment Corp. (a) | 4,752 | 58,687 | ||||||
Churchill Downs, Inc. | 1,264 | 236,431 | ||||||
Eldorado Resorts, Inc. (a) | 4,440 | 90,576 | ||||||
Las Vegas Sands Corp. | 35,701 | 2,199,539 | ||||||
MGM Resorts International | 41,296 | 1,359,877 | ||||||
Monarch Casino & Resort Inc. (a) | 1,035 | 34,248 | ||||||
Penn National Gaming, Inc. (a) | 7,163 | 144,406 | ||||||
Pinnacle Entertainment, Inc. (a) | 4,830 | 91,770 | ||||||
Red Rock Resorts, Inc. Class A | 3,717 | 88,837 | ||||||
Scientific Games Corp. Class A (a) | 4,683 | 173,505 | ||||||
Wynn Resorts Ltd. | 7,339 | 949,226 | ||||||
|
| |||||||
5,702,769 | ||||||||
|
| |||||||
Hotels, Resorts & Cruise Lines – 3.9% |
| |||||||
Belmond Ltd. Class A (a) | 7,744 | 101,059 |
See accompanying notes which are an integral part of the financial statements.
29 | Annual Report |
Table of Contents
Fidelity MSCI Consumer Discretionary Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HOTELS, RESTAURANTS & LEISURE – continued |
| |||||||
Hotels, Resorts & Cruise Lines – continued |
| |||||||
Carnival Corp. | 31,325 | $ | 2,091,883 | |||||
Choice Hotels International, Inc. | 3,305 | 213,668 | ||||||
Extended Stay America, Inc. | 17,294 | 341,902 | ||||||
Hilton Grand Vacations, Inc. (a) | 6,210 | 228,280 | ||||||
Hilton Worldwide Holdings, Inc. | 17,777 | 1,111,596 | ||||||
ILG, Inc. | 10,765 | 285,380 | ||||||
La Quinta Holdings, Inc. (a) | 7,325 | 109,216 | ||||||
Lindblad Expeditions Holdings, Inc. (a) | 2,059 | 20,611 | ||||||
Marcus Corp. | 1,628 | 44,282 | ||||||
Marriott International, Inc. Class A | 29,338 | 3,056,726 | ||||||
Marriott Vacations Worldwide Corp. | 2,086 | 243,749 | ||||||
Norwegian Cruise Line | ||||||||
Holdings Ltd. (a) | 14,306 | 787,831 | ||||||
Royal Caribbean Cruises Ltd. | 15,467 | 1,748,854 | ||||||
Wyndham Worldwide Corp. | 9,444 | 985,670 | ||||||
|
| |||||||
11,370,707 | ||||||||
|
| |||||||
Leisure Facilities – 0.6% |
| |||||||
ClubCorp Holdings, Inc. | 5,879 | 99,649 | ||||||
Drive Shack, Inc. | 5,535 | 16,937 | ||||||
International Speedway Corp. Class A | 2,047 | 73,282 | ||||||
Intrawest Resorts Holdings, Inc. (a) | 1,207 | 28,666 | ||||||
Planet Fitness, Inc., Class A | 7,477 | 169,429 | ||||||
SeaWorld Entertainment, Inc. | 5,929 | 91,188 | ||||||
Six Flags Entertainment Corp. | 6,586 | 374,546 | ||||||
Speedway Motorsports, Inc. | 1,084 | 23,046 | ||||||
Vail Resorts, Inc. | 3,601 | 758,947 | ||||||
|
| |||||||
1,635,690 | ||||||||
|
| |||||||
Restaurants – 9.5% |
| |||||||
Aramark | 22,147 | 882,779 | ||||||
Biglari Holdings, Inc. (a) | 90 | 33,689 | ||||||
BJ’s Restaurants, Inc. (a) | 1,665 | 58,775 | ||||||
Bloomin’ Brands, Inc. | 9,209 | 160,513 | ||||||
Bob Evans Farms, Inc. | 1,687 | 116,707 | ||||||
Bojangles’, Inc. (a) | 1,636 | 21,759 | ||||||
Brinker International, Inc. | 4,367 | 154,898 | ||||||
Buffalo Wild Wings, Inc. (a) | 1,422 | 152,865 | ||||||
Carrols Restaurant Group, Inc. (a) | 3,079 | 37,564 | ||||||
Chipotle Mexican Grill, Inc. (a) | 2,326 | 799,609 | ||||||
Chuys Holdings, Inc. (a) | 1,538 | 36,220 | ||||||
Cracker Barrel Old Country Store, Inc. | 1,726 | 268,307 | ||||||
Darden Restaurants, Inc. | 11,160 | 936,101 | ||||||
Dave & Buster’s Entertainment, Inc. (a) | 3,804 | 236,266 | ||||||
Del Frisco’s Restaurant Group, Inc. (a) | 2,167 | 30,771 | ||||||
Del Taco Restaurants, Inc. (a) | 3,220 | 42,150 | ||||||
Denny’s Corp. (a) | 6,337 | 71,988 | ||||||
DineEquity, Inc. | 1,545 | 63,561 | ||||||
Domino’s Pizza, Inc. | 4,319 | 805,494 | ||||||
Dunkin’ Brands Group, Inc. | 8,271 | 438,611 | ||||||
El Pollo Loco Holdings, Inc. (a) | 2,004 | 26,052 |
Shares | Value | |||||||
Fiesta Restaurant Group, Inc. (a) | 2,288 | $ | 38,438 | |||||
Jack in the Box, Inc. | 2,837 | 263,160 | ||||||
McDonald’s Corp. | 74,692 | 11,587,717 | ||||||
Papa John’s International, Inc. | 2,491 | 177,683 | ||||||
Potbelly Corp. (a) | 2,055 | 23,633 | ||||||
Red Robin Gourmet Burgers, Inc. (a) | 1,175 | 70,265 | ||||||
Ruth’s Hospitality Group, Inc. | 2,790 | 55,800 | ||||||
Shake Shack, Inc. Class A (a) | 1,790 | 59,088 | ||||||
Sonic Corp. | 3,937 | 93,149 | ||||||
Starbucks Corp. | 131,081 | 7,075,752 | ||||||
Texas Roadhouse, Inc. Class A | 6,044 | 285,881 | ||||||
The Cheesecake Factory, Inc. | 4,051 | 192,747 | ||||||
The Habit Restaurants, Inc. Class A (a) | 1,723 | 28,343 | ||||||
Wendy’s Co. | 18,421 | 284,420 | ||||||
Wingstop, Inc. (a) | 2,588 | 77,666 | ||||||
Yum! Brands, Inc. | 30,230 | 2,281,760 | ||||||
Zoe’s Kitchen, Inc. (a) | 1,858 | 21,014 | ||||||
|
| |||||||
27,991,195 | ||||||||
|
| |||||||
TOTAL HOTELS, RESTAURANTS & LEISURE |
| 46,700,361 | ||||||
|
| |||||||
HOUSEHOLD DURABLES – 4.6% |
| |||||||
Consumer Electronics – 0.3% |
| |||||||
Garmin Ltd. | 11,477 | 576,031 | ||||||
GoPro, Inc. Class A (a) | 8,977 | 73,970 | ||||||
Universal Electronics, Inc. (a) | 1,308 | 89,533 | ||||||
|
| |||||||
739,534 | ||||||||
|
| |||||||
Home Furnishings – 0.8% |
| |||||||
Ethan Allen Interiors, Inc. | 2,363 | 75,734 | ||||||
Hooker Furniture Corp. | 973 | 41,061 | ||||||
La-Z-Boy, Inc. | 4,444 | 150,207 | ||||||
Leggett & Platt, Inc. | 12,033 | 579,750 | ||||||
Mohawk Industries, Inc. (a) | 5,675 | 1,413,018 | ||||||
Tempur Sealy International, Inc. (a) | 4,116 | 237,370 | ||||||
|
| |||||||
2,497,140 | ||||||||
|
| |||||||
Homebuilding – 2.0% |
| |||||||
Beazer Homes U.S.A., Inc. (a) | 2,825 | 37,459 | ||||||
CalAtlantic Group, Inc. | 7,007 | 245,946 | ||||||
Cavco Industries, Inc. (a) | 764 | 99,626 | ||||||
Century Communities, Inc. (a) | 1,402 | 36,312 | ||||||
D.R. Horton, Inc. | 31,903 | 1,138,618 | ||||||
Green Brick Partners, Inc. (a) | 1,401 | 15,761 | ||||||
Hovnanian Enterprises, Inc. Class A (a) | 11,135 | 24,497 | ||||||
Installed Building Products, Inc. (a) | 1,998 | 107,492 | ||||||
KB Home | 6,904 | 158,240 | ||||||
Lennar Corp. Class A | 18,303 | 959,809 | ||||||
LGI Homes, Inc. (a) | 1,622 | 71,855 | ||||||
M.D.C. Holdings, Inc. | 3,461 | 118,678 | ||||||
M/I Homes, Inc. (a) | 2,268 | 58,832 | ||||||
Meritage Homes Corp. (a) | 3,434 | 139,935 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 30 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HOUSEHOLD DURABLES – continued |
| |||||||
Homebuilding – continued |
| |||||||
NVR, Inc. (a) | 319 | $ | 832,730 | |||||
PICO Holdings, Inc. (a) | 2,042 | 33,183 | ||||||
PulteGroup, Inc. | 25,789 | 629,767 | ||||||
Taylor Morrison Home Corp. Class A (a) | 6,501 | 147,053 | ||||||
Toll Brothers, Inc. | 13,892 | 536,092 | ||||||
TopBuild Corp. (a) | 3,422 | 180,613 | ||||||
TRI Pointe Group, Inc. (a) | 14,362 | 191,015 | ||||||
William Lyon Homes Class A (a) | 2,323 | 52,523 | ||||||
|
| |||||||
5,816,036 | ||||||||
|
| |||||||
Household Appliances – 0.6% |
| |||||||
Helen of Troy Ltd. (a) | 2,445 | 246,334 | ||||||
iRobot Corp. (a) | 2,445 | 257,972 | ||||||
NACCO Industries, Inc. Class A | 279 | 18,302 | ||||||
Whirlpool Corp. | 6,704 | 1,192,507 | ||||||
|
| |||||||
1,715,115 | ||||||||
|
| |||||||
Housewares & Specialties – 0.9% |
| |||||||
CSS Industries, Inc. | 823 | 22,032 | ||||||
Libbey, Inc. | 1,896 | 17,064 | ||||||
Newell Brands, Inc. | 43,379 | 2,286,941 | ||||||
Tupperware Brands Corp. | 4,558 | 276,716 | ||||||
|
| |||||||
2,602,753 | ||||||||
|
| |||||||
TOTAL HOUSEHOLD DURABLES |
| 13,370,578 | ||||||
|
| |||||||
INTERNET & DIRECT MARKETING RETAIL – 19.4% |
| |||||||
Catalog Retail – 0.4% |
| |||||||
HSN, Inc. | 3,049 | 120,893 | ||||||
Liberty Interactive Corp. QVC Group Series A (a) | 39,338 | 941,752 | ||||||
|
| |||||||
1,062,645 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail – 15.3% |
| |||||||
Amazon.com, Inc. (a) | 36,480 | 36,034,214 | ||||||
The Priceline Group, Inc. (a) | 4,422 | 8,970,027 | ||||||
|
| |||||||
45,004,241 | ||||||||
|
| |||||||
Internet Retail – 3.7% |
| |||||||
1-800-FLOWERS.com, Inc. Class A (a) | 2,163 | 20,873 | ||||||
Duluth Holdings, Inc. Class B (a) | 1,644 | 31,861 | ||||||
Etsy, Inc. (a) | 7,257 | 104,283 | ||||||
Expedia, Inc. | 11,094 | 1,735,878 | ||||||
FTD Cos., Inc. (a) | 1,573 | 30,909 | ||||||
Groupon, Inc. Class A (a) | 37,756 | 141,963 | ||||||
Lands’ End, Inc. (a) | 1,149 | 15,512 | ||||||
Liberty Expedia Holdings, Inc. Class A (a) | 4,898 | 279,431 | ||||||
Liberty TripAdvisor Holdings, Inc. Class A (a) | 6,461 | 75,917 | ||||||
Liberty Ventures Class A (a) | 7,278 | 440,901 | ||||||
Netflix, Inc. (a) | 38,712 | 7,032,422 |
Shares | Value | |||||||
NutriSystem, Inc. | 2,689 | $ | 149,912 | |||||
Overstock.com, Inc. (a) | 1,457 | 23,312 | ||||||
PetMed Express, Inc. | 1,886 | 89,660 | ||||||
Shutterfly, Inc. (a) | 2,711 | 132,947 | ||||||
TripAdvisor, Inc. (a) | 10,665 | 416,148 | ||||||
Wayfair, Inc. Class A (a) | 3,130 | 238,976 | ||||||
|
| |||||||
10,960,905 | ||||||||
|
| |||||||
TOTAL INTERNET & DIRECT MARKETING RETAIL |
| 57,027,791 | ||||||
|
| |||||||
LEISURE PRODUCTS – 1.1% |
| |||||||
Leisure Products – 1.1% |
| |||||||
Acushnet Holdings Corp. | 1,970 | 36,386 | ||||||
American Outdoor Brands Corp. (a) | 5,133 | 106,099 | ||||||
Brunswick Corp. | 8,034 | 454,805 | ||||||
Callaway Golf Co. | 8,462 | 107,721 | ||||||
Hasbro, Inc. | 10,073 | 1,066,529 | ||||||
Mattel, Inc. | 30,761 | 615,835 | ||||||
Nautilus, Inc. (a) | 2,741 | 48,242 | ||||||
Polaris Industries, Inc. | 5,387 | 482,999 | ||||||
Sturm, Ruger & Co., Inc. | 1,622 | 93,427 | ||||||
Vista Outdoor, Inc. (a) | 5,113 | 118,059 | ||||||
|
| |||||||
TOTAL LEISURE PRODUCTS |
| 3,130,102 | ||||||
|
| |||||||
MEDIA – 24.6% |
| |||||||
Advertising – 0.9% |
| |||||||
Clear Channel Outdoor Holding, Inc. Class A | 2,806 | 14,226 | ||||||
Interpublic Group of Companies, Inc. | 35,280 | 762,401 | ||||||
MDC Partners, Inc. Class A | 4,905 | 48,559 | ||||||
National CineMedia, Inc. | 5,677 | 40,591 | ||||||
Omnicom Group, Inc. | 21,100 | 1,661,414 | ||||||
|
| |||||||
2,527,191 | ||||||||
|
| |||||||
Broadcasting – 1.8% |
| |||||||
AMC Networks, Inc. Class A (a) | 5,049 | 322,884 | ||||||
CBS Corp. Class B (non-vtg.) | 33,450 | 2,202,013 | ||||||
Discovery Communications, Inc. Class A (a) | 13,728 | 337,709 | ||||||
Discovery Communications, Inc. Class C (non-vtg.) (a) | 19,640 | 454,273 | ||||||
E.W. Scripps Co. Class A (a) | 4,681 | 91,982 | ||||||
Entercom Communications Corp. Class A | 2,016 | 19,858 | ||||||
Entravision Communications Corp. Class A | 5,865 | 38,122 | ||||||
Gray Television, Inc. (a) | 5,978 | 89,072 | ||||||
Hemisphere Media Group, Inc. (a) | 1,550 | 19,375 | ||||||
Media General, Inc. (a) | 7,026 | 0 | ||||||
Nexstar Media Group, Inc. Class A | 4,034 | 263,824 | ||||||
Scripps Networks Interactive, Inc. Class A | 7,751 | 677,515 | ||||||
Sinclair Broadcast Group, Inc. Class A | 6,870 | 247,663 |
See accompanying notes which are an integral part of the financial statements.
31 | Annual Report |
Table of Contents
Fidelity MSCI Consumer Discretionary Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
MEDIA – continued |
| |||||||
Broadcasting – continued |
| |||||||
TEGNA, Inc. | 18,450 | $ | 273,613 | |||||
Tribune Media Co. Class A | 6,657 | 280,593 | ||||||
|
| |||||||
5,318,496 | ||||||||
|
| |||||||
Cable & Satellite – 11.0% | ||||||||
Cable One, Inc. | 387 | 294,081 | ||||||
Charter Communications, Inc. Class A (a) | 19,348 | 7,582,675 | ||||||
Comcast Corp. Class A | 425,670 | 17,218,351 | ||||||
DISH Network Corp. Class A (a) | 20,395 | 1,305,892 | ||||||
Liberty Broadband Corp. Class C (a) | 9,627 | 954,806 | ||||||
Liberty Global PLC LiLAC (a) | 4,343 | 111,702 | ||||||
Liberty Global PLC LiLAC Series C (a) | 10,829 | 276,356 | ||||||
Liberty Global PLC Series A (a) | 21,653 | 733,171 | ||||||
Liberty Global PLC Series C (a) | 53,929 | 1,767,253 | ||||||
Liberty Media Corp-Liberty SiriusXM Class A (a) | 8,282 | 382,049 | ||||||
Liberty Media Corp-Liberty SiriusXM Class C (a) | 16,031 | 737,426 | ||||||
Loral Space & Communications Ltd. (a) | 1,153 | 53,672 | ||||||
MSG Networks, Inc. (a) | 5,475 | 117,165 | ||||||
Sirius XM Holdings, Inc. | 148,580 | 870,679 | ||||||
|
| |||||||
32,405,278 | ||||||||
|
| |||||||
Movies & Entertainment – 10.4% | ||||||||
AMC Entertainment Holdings, Inc. Class A | 4,612 | 94,085 | ||||||
Cinemark Holdings, Inc. | 9,764 | 379,820 | ||||||
Global Eagle Entertainment, Inc. (a) | 5,345 | 16,890 | ||||||
IMAX Corp. (a) | 5,363 | 114,768 | ||||||
Liberty Media Corp-Liberty Braves Class A (a) | 884 | 22,312 | ||||||
Liberty Media Corp-Liberty Braves Class C (a) | 3,145 | 79,348 | ||||||
Liberty Media Corp-Liberty Formula One Class A (a) | 2,107 | 71,111 | ||||||
Liberty Media Corp-Liberty Formula One Class C (a) | 15,111 | 531,454 | ||||||
Lions Gate Entertainment Corp. Class A | 4,725 | 138,915 | ||||||
Lions Gate Entertainment Corp. Class B (a) | 8,885 | 244,426 | ||||||
Live Nation Entertainment, Inc. (a) | 11,939 | 444,967 | ||||||
Regal Entertainment Group Class A | 10,244 | 194,841 | ||||||
The Madison Square Garden Co. (a) | 1,756 | 385,828 | ||||||
The Walt Disney Co. | 142,221 | 15,634,355 | ||||||
Time Warner, Inc. | 69,645 | 7,133,041 | ||||||
Twenty-First Century Fox, Inc. Class A | 94,610 | 2,753,151 | ||||||
Twenty-First Century Fox, Inc. Class B | 39,549 | 1,134,661 | ||||||
Viacom, Inc. Class B | 31,267 | 1,091,844 |
Shares | Value | |||||||
World Wrestling Entertainment, Inc. Class A | 3,278 | $ | 69,362 | |||||
|
| |||||||
30,535,179 | ||||||||
|
| |||||||
Publishing – 0.5% | ||||||||
Gannett Co., Inc. | 9,840 | 88,265 | ||||||
John Wiley & Sons, Inc. Class A | 4,155 | 229,564 | ||||||
Meredith Corp. | 3,524 | 209,502 | ||||||
New Media Investment Group, Inc. | 4,931 | 68,738 | ||||||
News Corp. Class A | 34,419 | 492,536 | ||||||
Scholastic Corp. | 2,652 | 109,872 | ||||||
The New York Times Co. Class A | 11,571 | 219,849 | ||||||
Time, Inc. | 8,902 | 125,073 | ||||||
tronc, Inc. (a) | 1,472 | 18,797 | ||||||
|
| |||||||
1,562,196 | ||||||||
|
| |||||||
TOTAL MEDIA |
| 72,348,340 | ||||||
|
| |||||||
MULTILINE RETAIL – 3.0% |
| |||||||
Department Stores – 0.8% |
| |||||||
Dillard’s, Inc. Class A | 1,578 | 116,488 | ||||||
J.C. Penney Co., Inc. (a) | 27,508 | 148,818 | ||||||
Kohl’s Corp. | 15,878 | 656,556 | ||||||
Macy’s, Inc. | 27,380 | 650,275 | ||||||
Nordstrom, Inc. | 11,479 | 557,535 | ||||||
Sears Holdings Corp. (a) | 2,497 | 21,774 | ||||||
|
| |||||||
2,151,446 | ||||||||
|
| |||||||
General Merchandise Stores – 2.2% | ||||||||
Big Lots, Inc. | 3,984 | 197,885 | ||||||
Dollar General Corp. | 24,864 | 1,868,778 | ||||||
Dollar Tree, Inc. (a) | 21,248 | 1,531,556 | ||||||
Fred’s, Inc. Class A | 2,796 | 18,929 | ||||||
Ollie’s Bargain Outlet Holdings, Inc. (a) | 4,373 | 195,473 | ||||||
Target Corp. | 47,982 | 2,719,140 | ||||||
|
| |||||||
6,531,761 | ||||||||
|
| |||||||
TOTAL MULTILINE RETAIL |
| 8,683,207 | ||||||
|
| |||||||
SPECIALTY RETAIL – 16.3% |
| |||||||
Apparel Retail – 3.4% |
| |||||||
Abercrombie & Fitch Co. Class A | 6,151 | 60,526 | ||||||
American Eagle Outfitters, Inc. | 15,522 | 183,780 | ||||||
Ascena Retail Group, Inc. (a) | 12,669 | 29,645 | ||||||
Burlington Stores, Inc. (a) | 6,321 | 550,117 | ||||||
Caleres, Inc. | 3,883 | 105,928 | ||||||
Chico’s FAS, Inc. | 11,588 | 106,030 | ||||||
Citi Trends, Inc. | 1,300 | 28,795 | ||||||
DSW, Inc. Class A | 5,828 | 105,137 | ||||||
Express, Inc. (a) | 7,033 | 42,620 | ||||||
Finish Line, Inc. Class A | 3,685 | 50,706 | ||||||
Foot Locker, Inc. | 11,908 | 561,938 | ||||||
Francescas Holdings Corp. (a) | 3,489 | 33,948 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 32 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
SPECIALTY RETAIL – continued |
| |||||||
Apparel Retail – continued |
| |||||||
Gap, Inc. | 21,544 | $ | 513,394 | |||||
Genesco, Inc. (a) | 1,779 | 57,106 | ||||||
Guess?, Inc. | 5,681 | 74,194 | ||||||
L Brands, Inc. | 21,836 | 1,012,972 | ||||||
Ross Stores, Inc. | 35,453 | 1,961,260 | ||||||
Shoe Carnival, Inc. | 1,147 | 20,944 | ||||||
Tailored Brands, Inc. | 3,938 | 49,383 | ||||||
The Buckle, Inc. | 2,651 | 45,332 | ||||||
The Cato Corp. Class A | 2,266 | 38,545 | ||||||
The Children’s Place Retail Stores, Inc. | 1,617 | 170,836 | ||||||
The TJX Companies, Inc. | 58,636 | 4,122,697 | ||||||
Urban Outfitters, Inc. (a) | 7,290 | 142,811 | ||||||
Zumiez, Inc. (a) | 1,686 | 21,412 | ||||||
|
| |||||||
10,090,056 | ||||||||
|
| |||||||
Automotive Retail – 2.1% | ||||||||
Advance Auto Parts, Inc. | 6,623 | 741,842 | ||||||
Asbury Automotive Group, Inc. (a) | 1,706 | 92,124 | ||||||
AutoNation, Inc. (a) | 5,889 | 249,576 | ||||||
AutoZone, Inc. (a) | 2,572 | 1,388,417 | ||||||
Camping World Holdings, Inc. Class A | 1,889 | 60,372 | ||||||
CarMax, Inc. (a) | 16,830 | 1,114,988 | ||||||
Group 1 Automotive, Inc. | 1,821 | 108,441 | ||||||
Lithia Motors, Inc. Class A | 2,146 | 221,575 | ||||||
Monro Muffler Brake, Inc. | 2,924 | 136,258 | ||||||
Murphy USA, Inc. (a) | 3,149 | 238,474 | ||||||
O’Reilly Automotive, Inc. (a) | 8,240 | 1,683,432 | ||||||
Penske Automotive Group, Inc. | 3,456 | 150,474 | ||||||
Sonic Automotive, Inc. Class A | 2,316 | 42,035 | ||||||
TravelCenters of America LLC (a) | 2,832 | 10,337 | ||||||
|
| |||||||
6,238,345 | ||||||||
|
| |||||||
Computer & Electronics Retail – 0.6% |
| |||||||
Best Buy Co., Inc. | 25,384 | 1,480,902 | ||||||
Conn’s, Inc. (a) | 1,880 | 40,232 | ||||||
GameStop Corp. Class A | 9,127 | 197,965 | ||||||
Rent-A-Center, Inc. | 4,690 | 62,002 | ||||||
|
| |||||||
1,781,101 | ||||||||
|
| |||||||
Home Improvement Retail – 7.7% |
| |||||||
Lowe’s Companies, Inc. | 78,236 | 6,055,466 | ||||||
Lumber Liquidators Holdings, Inc. (a) | 2,503 | 61,849 | ||||||
The Home Depot, Inc. | 109,564 | 16,390,775 | ||||||
Tile Shop Holdings, Inc. | 3,079 | 44,953 | ||||||
|
| |||||||
22,553,043 | ||||||||
|
| |||||||
Homefurnishing Retail – 0.5% |
| |||||||
Aarons, Inc. Class A | 5,814 | 269,072 | ||||||
At Home Group, Inc. (a) | 1,624 | 36,962 | ||||||
Bed Bath & Beyond, Inc. | 13,560 | 405,444 | ||||||
Haverty Furniture Companies, Inc. | 1,602 | 35,644 | ||||||
Kirkland’s, Inc. (a) | 1,241 | 11,603 | ||||||
Pier 1 Imports, Inc. | 6,693 | 30,855 |
Shares | Value | |||||||
RH (a) | 3,479 | $ | 226,587 | |||||
Select Comfort Corp. (a) | 3,844 | 129,966 | ||||||
Williams-Sonoma, Inc. | 7,534 | 349,804 | ||||||
|
| |||||||
1,495,937 | ||||||||
|
| |||||||
Specialty Stores – 2.0% |
| |||||||
Barnes & Noble Education, Inc. (a) | 3,036 | 21,950 | ||||||
Barnes & Noble, Inc. | 5,204 | 42,413 | ||||||
Big 5 Sporting Goods Corp. | 1,644 | 17,673 | ||||||
Cabela’s, Inc. Class A (a) | 4,309 | 245,527 | ||||||
Dick’s Sporting Goods, Inc. | 7,925 | 295,920 | ||||||
Five Below, Inc. (a) | 4,941 | 238,700 | ||||||
GNC Holdings, Inc. Class A | 6,288 | 59,799 | ||||||
Hibbett Sports, Inc. (a) | 1,992 | 31,075 | ||||||
MarineMax, Inc. (a) | 2,320 | 34,684 | ||||||
Office Depot, Inc. | 47,443 | 278,490 | ||||||
Party City Holdings, Inc. (a) | 2,770 | 38,642 | ||||||
Sally Beauty Holdings, Inc. (a) | 12,879 | 260,542 | ||||||
Signet Jewelers Ltd. | 5,624 | 343,964 | ||||||
Staples, Inc. | 58,576 | 594,546 | ||||||
The Michaels Cos., Inc. (a) | 11,285 | 227,280 | ||||||
Tiffany & Co., Inc. | 11,184 | 1,068,184 | ||||||
Tractor Supply Co. | 11,761 | 660,027 | ||||||
Ulta Salon, Cosmetics & Fragrance, Inc. (a) | 5,321 | 1,336,688 | ||||||
Vitamin Shoppe, Inc. (a) | 2,010 | 22,110 | ||||||
Winmark Corp. | 212 | 28,207 | ||||||
|
| |||||||
5,846,421 | ||||||||
|
| |||||||
TOTAL SPECIALTY RETAIL |
| 48,004,903 | ||||||
|
| |||||||
TEXTILES, APPAREL & LUXURY GOODS – 5.4% |
| |||||||
Apparel, Accessories & Luxury Goods – 2.7% |
| |||||||
Carter’s, Inc. | 4,384 | 380,224 | ||||||
Coach, Inc. | 25,263 | 1,190,898 | ||||||
Columbia Sportswear Co. | 2,505 | 151,753 | ||||||
Fossil Group, Inc. (a) | 3,894 | 43,808 | ||||||
G-III Apparel Group Ltd. (a) | 3,927 | 102,220 | ||||||
Hanesbrands, Inc. | 34,119 | 782,007 | ||||||
Iconix Brand Group, Inc. (a) | 3,941 | 26,286 | ||||||
lululemon athletica, Inc. (a) | 9,272 | 571,526 | ||||||
Michael Kors Holdings Ltd. (a) | 14,629 | 533,081 | ||||||
Movado Group, Inc. | 1,355 | 33,333 | ||||||
Oxford Industries, Inc. | 1,362 | 85,983 | ||||||
PVH Corp. | 7,121 | 849,464 | ||||||
Ralph Lauren Corp. | 5,067 | 383,319 | ||||||
Sequential Brands Group, Inc. (a) | 3,646 | 11,704 | ||||||
Under Armour, Inc. Class A (a) | 16,603 | 332,392 | ||||||
Under Armour, Inc. Class C (a) | 16,908 | 306,204 | ||||||
Vera Bradley, Inc. (a) | 1,804 | 18,184 | ||||||
VF Corp. | 31,634 | 1,967,318 | ||||||
|
| |||||||
7,769,704 | ||||||||
|
|
See accompanying notes which are an integral part of the financial statements.
33 | Annual Report |
Table of Contents
Fidelity MSCI Consumer Discretionary Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
TEXTILES, APPAREL & LUXURY GOODS – continued |
| |||||||
Footwear – 2.7% |
| |||||||
Crocs, Inc. (a) | 6,711 | $ | 53,285 | |||||
Deckers Outdoor Corp. (a) | 2,861 | 185,565 | ||||||
NIKE, Inc. Class B | 119,193 | 7,038,347 | ||||||
Skechers U.S.A., Inc. Class A (a) | 11,991 | 336,827 | ||||||
Steven Madden Ltd. (a) | 4,887 | 200,367 | ||||||
Wolverine World Wide, Inc. | 8,837 | 249,203 | ||||||
|
| |||||||
8,063,594 | ||||||||
|
| |||||||
Textiles – 0.0% |
| |||||||
Unifi, Inc. (a) | 1,405 | 46,028 | ||||||
|
| |||||||
TOTAL TEXTILES, APPAREL & LUXURY GOODS |
| 15,879,326 | ||||||
|
| |||||||
TOTAL COMMON STOCKS | 293,626,520 | |||||||
|
|
Money Market Funds – 0.1% | ||||||||
Shares | Value | |||||||
State Street Institutional Treasury Plus | 161,334 | $ | 161,334 | |||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 100.0% |
| 293,787,854 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.0% |
| 125,420 | ||||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 293,913,274 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Annual Report | 34 |
Table of Contents
Fidelity MSCI Consumer Staples Index ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
BEVERAGES – 23.1% |
| |||||||
Brewers – 1.0% |
| |||||||
Molson Coors Brewing Co. Class B | 30,517 | $ | 2,715,403 | |||||
The Boston Beer Co., Inc. Class A (a) | 2,057 | 322,537 | ||||||
|
| |||||||
3,037,940 | ||||||||
|
| |||||||
Distillers & Vintners – 2.3% |
| |||||||
Brown-Forman Corp. Class B | 33,887 | 1,674,018 | ||||||
Constellation Brands, Inc. Class A | 27,397 | 5,297,210 | ||||||
MGP Ingredients, Inc. | 1,980 | 116,741 | ||||||
|
| |||||||
7,087,969 | ||||||||
|
| |||||||
Soft Drinks – 19.8% | ||||||||
Coca-Cola Bottling Co. Consolidated | 818 | 196,394 | ||||||
Dr Pepper Snapple Group, Inc. | 29,642 | 2,702,165 | ||||||
Monster Beverage Corp. (a) | 63,033 | 3,324,991 | ||||||
National Beverage Corp. | 1,910 | 195,049 | ||||||
PepsiCo, Inc. | 223,889 | 26,107,696 | ||||||
The Coca-Cola Co. | 639,585 | 29,318,576 | ||||||
|
| |||||||
61,844,871 | ||||||||
|
| |||||||
TOTAL BEVERAGES |
| 71,970,780 | ||||||
|
| |||||||
FOOD & STAPLES RETAILING – 20.6% |
| |||||||
Drug Retail – 7.9% |
| |||||||
CVS Health Corp. | 161,493 | 12,908,136 | ||||||
Walgreens Boots Alliance, Inc. | 144,582 | 11,663,430 | ||||||
|
| |||||||
24,571,566 | ||||||||
|
| |||||||
Food Distributors – 2.0% |
| |||||||
Performance Food Group Co. (a) | 13,261 | 381,917 | ||||||
SpartanNash Co. | 6,205 | 172,127 | ||||||
Sysco Corp. | 81,994 | 4,314,524 | ||||||
The Andersons, Inc. | 4,430 | 152,614 | ||||||
The Chefs’ Warehouse, Inc. (a) | 3,914 | 56,753 | ||||||
United Natural Foods, Inc. (a) | 10,299 | 396,820 | ||||||
US Foods Holding Corp. (a) | 25,516 | 718,275 | ||||||
|
| |||||||
6,193,030 | ||||||||
|
| |||||||
Food Retail – 2.5% |
| |||||||
Casey’s General Stores, Inc. | 7,002 | 747,463 | ||||||
Ingles Markets, Inc. Class A | 5,017 | 148,001 | ||||||
Natural Grocers by Vitamin Cottage, Inc. (a) | 11,413 | 100,548 | ||||||
Smart & Final Stores, Inc. (a) | 14,666 | 126,128 | ||||||
Sprouts Farmers Market, Inc. (a) | 24,142 | 581,098 | ||||||
SUPERVALU, Inc. (a) | 52,786 | 188,974 | ||||||
The Kroger Co. | 150,462 | 3,689,328 | ||||||
Village Super Market, Inc. Class A | 1,579 | 39,049 | ||||||
Weis Markets, Inc. | 3,638 | 172,114 | ||||||
Whole Foods Market, Inc. | 52,014 | 2,172,105 | ||||||
|
| |||||||
7,964,808 | ||||||||
|
| |||||||
Hypermarkets & Super Centers – 8.2% |
| |||||||
Costco Wholesale Corp. | 69,265 | 10,979,195 | ||||||
PriceSmart, Inc. | 4,430 | 373,227 |
Shares | Value | |||||||
Wal-Mart Stores, Inc. | 179,726 | $ | 14,376,283 | |||||
|
| |||||||
25,728,705 | ||||||||
|
| |||||||
TOTAL FOOD & STAPLES RETAILING |
| 64,458,109 | ||||||
|
| |||||||
FOOD PRODUCTS – 18.8% |
| |||||||
Agricultural Products – 2.5% |
| |||||||
Archer-Daniels-Midland Co. | 91,488 | 3,858,964 | ||||||
Bunge Ltd. | 21,899 | 1,716,663 | ||||||
Darling Ingredients, Inc. (a) | 26,948 | 438,444 | ||||||
Fresh Del Monte Produce, Inc. | 5,371 | 276,445 | ||||||
Ingredion, Inc. | 11,977 | 1,477,004 | ||||||
|
| |||||||
7,767,520 | ||||||||
|
| |||||||
Packaged Foods & Meats – 16.3% |
| |||||||
Amplify Snack Brands, Inc. (a) | 6,259 | 65,469 | ||||||
B&G Foods, Inc. | 11,162 | 404,622 | ||||||
Blue Buffalo Pet Products, Inc. (a) | 16,805 | 375,928 | ||||||
Calavo Growers, Inc. | 2,568 | 190,160 | ||||||
Campbell Soup Co. | 30,553 | 1,614,115 | ||||||
Conagra Brands, Inc. | 70,738 | 2,422,069 | ||||||
Dean Foods Co. | 17,793 | 266,895 | ||||||
Farmer Bros Co. (a) | 1,862 | 58,001 | ||||||
Flowers Foods, Inc. | 33,601 | 591,042 | ||||||
Freshpet, Inc. (a) | 3,700 | 63,085 | ||||||
General Mills, Inc. | 92,340 | 5,139,644 | ||||||
Hormel Foods Corp. | 48,178 | 1,646,242 | ||||||
Hostess Brands, Inc. (a) | 7,934 | 121,231 | ||||||
J&J Snack Foods Corp. | 2,404 | 315,886 | ||||||
John B Sanfilippo & Son, Inc. | 1,413 | 90,884 | ||||||
Kellogg Co. | 42,538 | 2,892,584 | ||||||
Lamb Weston Holdings, Inc. | 23,191 | 1,019,940 | ||||||
Lancaster Colony Corp. | 3,501 | 429,293 | ||||||
Landec Corp. (a) | 4,479 | 55,092 | ||||||
McCormick & Co., Inc. (non-vtg.) | 18,737 | 1,785,636 | ||||||
Mondelez International, Inc. Class A | 240,741 | 10,597,419 | ||||||
Omega Protein Corp. | 3,891 | 62,256 | ||||||
Pinnacle Foods, Inc. | 18,602 | 1,104,587 | ||||||
Post Holdings, Inc. (a) | 10,145 | 844,064 | ||||||
Sanderson Farms, Inc. | 3,273 | 427,945 | ||||||
Seaboard Corp. | 57 | 243,675 | ||||||
Seneca Foods Corp. Class A (a) | 1,342 | 38,515 | ||||||
Snyders-Lance, Inc. | 12,261 | 426,560 | ||||||
The Hain Celestial Group, Inc. (a) | 18,129 | 810,548 | ||||||
The Hershey Co. | 23,415 | 2,465,834 | ||||||
The JM Smucker Co. | 18,959 | 2,311,102 | ||||||
The Kraft Heinz Co. | 95,193 | 8,325,580 | ||||||
Tootsie Roll Industries, Inc. | 3,320 | 123,504 | ||||||
TreeHouse Foods, Inc. (a) | 8,975 | 761,349 | ||||||
Tyson Foods, Inc. Class A | 46,021 | 2,915,891 | ||||||
|
| |||||||
51,006,647 | ||||||||
|
| |||||||
TOTAL FOOD PRODUCTS |
| 58,774,167 | ||||||
|
|
See accompanying notes which are an integral part of the financial statements.
35 | Annual Report |
Table of Contents
Fidelity MSCI Consumer Staples Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HOUSEHOLD PRODUCTS – 19.2% |
| |||||||
Household Products – 19.2% |
| |||||||
Central Garden and Pet Co. (a) | 1,964 | $ | 62,848 | |||||
Central Garden and Pet Co. Class A (a) | 5,865 | 180,407 | ||||||
Church & Dwight Co., Inc. | 41,541 | 2,216,212 | ||||||
Colgate-Palmolive Co. | 132,381 | 9,557,908 | ||||||
Energizer Holdings, Inc. | 11,712 | 539,572 | ||||||
HRG Group, Inc. (a) | 24,336 | 403,248 | ||||||
Kimberly-Clark Corp. | 56,366 | 6,942,037 | ||||||
Spectrum Brands Holdings, Inc. | 4,930 | 569,119 | ||||||
The Clorox Co. | 20,748 | 2,769,651 | ||||||
The Procter & Gamble Co. | 400,639 | 36,386,034 | ||||||
WD-40 Co. | 3,080 | 328,482 | ||||||
|
| |||||||
TOTAL HOUSEHOLD PRODUCTS | 59,955,518 | |||||||
|
| |||||||
PERSONAL PRODUCTS – 2.5% |
| |||||||
Personal Products – 2.5% |
| |||||||
Avon Products, Inc. (a) | 94,224 | 342,975 | ||||||
Coty, Inc. Class A | 80,425 | 1,647,104 | ||||||
Edgewell Personal Care Co. (a) | 4,253 | 307,067 | ||||||
elf Beauty, Inc. (a) | 3,624 | 91,941 | ||||||
Herbalife Ltd. (a) | 11,349 | 754,822 | ||||||
Inter Parfums, Inc. | 5,075 | 196,910 | ||||||
Medifast, Inc. | 1,689 | 72,103 | ||||||
Natural Health Trends Corp. | 2,389 | 58,841 | ||||||
Nu Skin Enterprises, Inc. Class A | 9,673 | 612,881 | ||||||
Revlon, Inc. Class A (a) | 5,259 | 102,814 | ||||||
The Estee Lauder Cos., Inc. Class A | 35,681 | 3,532,062 | ||||||
USANA Health Sciences, Inc. (a) | 3,331 | 190,200 | ||||||
|
| |||||||
TOTAL PERSONAL PRODUCTS | 7,909,720 | |||||||
|
|
Shares | Value | |||||||
TOBACCO – 15.6% |
| |||||||
Tobacco – 15.6% |
| |||||||
Altria Group, Inc. | 304,544 | $ | 19,786,224 | |||||
Philip Morris International, Inc. | 243,285 | 28,393,792 | ||||||
Universal Corp. | 4,081 | 260,980 | ||||||
Vector Group Ltd. | 16,250 | 327,113 | ||||||
|
| |||||||
TOTAL TOBACCO | 48,768,109 | |||||||
|
| |||||||
TOTAL COMMON STOCKS | 311,836,403 | |||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
State Street Institutional Treasury Plus | 153,468 | 153,468 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 99.9% |
| 311,989,871 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 359,528 | ||||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 312,349,399 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Annual Report | 36 |
Table of Contents
Fidelity MSCI Energy Index ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
ENERGY EQUIPMENT & SERVICES – 15.5% |
| |||||||
Oil & Gas Drilling – 1.5% |
| |||||||
Atwood Oceanics, Inc. (a) | 22,840 | $ | 179,522 | |||||
Diamond Offshore Drilling, Inc. (a) | 20,420 | 253,616 | ||||||
Ensco PLC Class A | 90,679 | 479,692 | ||||||
Helmerich & Payne, Inc. | 32,427 | 1,641,455 | ||||||
Nabors Industries Ltd. | 85,227 | 657,100 | ||||||
Noble Corp. PLC | 72,667 | 290,668 | ||||||
Parker Drilling Co. (a) | 41,693 | 50,032 | ||||||
Patterson-UTI Energy, Inc. | 63,866 | 1,235,168 | ||||||
Rowan Cos. PLC Class A (a) | 35,691 | 416,514 | ||||||
Transocean Ltd. (a) | 116,271 | 1,005,744 | ||||||
Unit Corp. (a) | 15,413 | 277,126 | ||||||
|
| |||||||
6,486,637 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services – 14.0% |
| |||||||
Archrock, Inc. | 19,003 | 208,083 | ||||||
Baker Hughes a GE Co. | 120,683 | 4,451,996 | ||||||
Basic Energy Services, Inc. (a) | 6,523 | 146,115 | ||||||
Bristow Group, Inc. | 10,103 | 74,459 | ||||||
CARBO Ceramics, Inc. (a) | 6,442 | 45,545 | ||||||
Core Laboratories N.V. | 13,186 | 1,325,589 | ||||||
Dril-Quip, Inc. (a) | 11,291 | 503,579 | ||||||
Exterran Corp. (a) | 9,550 | 264,440 | ||||||
Fairmount Santrol Holdings, Inc. (a) | 46,706 | 136,382 | ||||||
Forum Energy Technologies, Inc. (a) | 20,134 | 266,775 | ||||||
Frank’s International N.V. | 16,647 | 134,841 | ||||||
Halliburton Co. | 258,862 | 10,986,103 | ||||||
Helix Energy Solutions Group, Inc. (a) | 41,858 | 273,751 | ||||||
Keane Group, Inc. (a) | 9,261 | 141,971 | ||||||
Key Energy Services, Inc. (a) | 2,407 | 45,300 | ||||||
Mammoth Energy Services, Inc. (a) | 2,244 | 32,919 | ||||||
Matrix Service Co. (a) | 7,632 | 78,991 | ||||||
McDermott International, Inc. (a) | 72,101 | 488,124 | ||||||
National Oilwell Varco, Inc. | 113,118 | 3,700,090 | ||||||
Natural Gas Services Group, Inc. (a) | 3,899 | 97,280 | ||||||
Newpark Resources, Inc. (a) | 25,095 | 209,543 | ||||||
Oceaneering International, Inc. | 29,292 | 751,340 | ||||||
Oil States International, Inc. (a) | 15,344 | 381,298 | ||||||
RigNet, Inc. (a) | 4,073 | 77,183 | ||||||
RPC, Inc. | 19,534 | 404,549 | ||||||
Schlumberger Ltd. | 416,277 | 28,556,602 | ||||||
SEACOR Holdings, Inc. (a) | 4,873 | 166,121 | ||||||
SEACOR Marine Holdings, Inc. (a) | 5,020 | 73,192 | ||||||
Superior Energy Services, Inc. (a) | 45,588 | 490,527 | ||||||
TechnipFMC PLC (a) | 132,392 | 3,778,468 | ||||||
Tesco Corp. (a) | 14,135 | 65,021 | ||||||
TETRA Technologies, Inc. (a) | 37,968 | 106,690 | ||||||
US Silica Holdings, Inc. | 24,211 | 705,266 |
Shares | Value | |||||||
Weatherford International PLC (a) | 279,029 | $ | 1,244,469 | |||||
|
| |||||||
60,412,602 | ||||||||
|
| |||||||
TOTAL ENERGY EQUIPMENT & SERVICES |
| 66,899,239 | ||||||
|
| |||||||
OIL, GAS & CONSUMABLE FUELS – 84.4% |
| |||||||
Coal & Consumable Fuels – 0.3% |
| |||||||
Arch Coal, Inc. Class A | 6,678 | 507,995 | ||||||
CONSOL Energy, Inc. (a) | 54,825 | 918,867 | ||||||
|
| |||||||
1,426,862 | ||||||||
|
| |||||||
Integrated Oil & Gas – 40.6% |
| |||||||
Chevron Corp. | 565,270 | 61,721,831 | ||||||
Exxon Mobil Corp. | 1,238,126 | 99,099,605 | ||||||
Occidental Petroleum Corp. | 228,213 | 14,133,231 | ||||||
|
| |||||||
174,954,667 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 26.5% |
| |||||||
Anadarko Petroleum Corp. | 166,909 | 7,622,734 | ||||||
Antero Resources Corp. (a) | 65,859 | 1,358,013 | ||||||
Apache Corp. | 113,382 | 5,610,141 | ||||||
Bill Barrett Corp. (a) | 21,953 | 74,201 | ||||||
Cabot Oil & Gas Corp. | 141,914 | 3,529,401 | ||||||
California Resources Corp. (a) | 11,464 | 93,088 | ||||||
Callon Petroleum Co. (a) | 60,051 | 679,777 | ||||||
Carrizo Oil & Gas, Inc. (a) | 24,316 | 383,220 | ||||||
Centennial Resource Development, Inc. Class A (a) | 27,972 | 469,370 | ||||||
Chesapeake Energy Corp. (a) | 267,314 | 1,325,877 | ||||||
Cimarex Energy Co. | 28,411 | 2,813,541 | ||||||
Concho Resources, Inc. (a) | 44,244 | 5,763,223 | ||||||
ConocoPhillips | 369,013 | 16,742,120 | ||||||
Continental Resources, Inc. (a) | 27,962 | 934,770 | ||||||
Denbury Resources, Inc. (a) | 119,270 | 174,134 | ||||||
Devon Energy Corp. | 148,706 | 4,953,397 | ||||||
Diamondback Energy, Inc. (a) | 26,925 | 2,581,569 | ||||||
Eclipse Resources Corp. (a) | 26,934 | 75,685 | ||||||
Energen Corp. (a) | 29,027 | 1,546,559 | ||||||
Energy XXI Gulf Coast, Inc. (a) | 9,943 | 196,772 | ||||||
EOG Resources, Inc. | 172,239 | 16,386,819 | ||||||
EQT Corp. | 51,769 | 3,297,685 | ||||||
Extraction Oil & Gas, Inc. (a) | 30,794 | 375,071 | ||||||
Gran Tierra Energy, Inc. (a) | 119,549 | 282,136 | ||||||
Gulfport Energy Corp. (a) | 47,439 | 598,680 | ||||||
Halcon Resources Corp. (a) | 11,131 | 73,019 | ||||||
Hess Corp. | 84,989 | 3,785,410 | ||||||
Jagged Peak Energy, Inc. (a) | 9,564 | 135,426 | ||||||
Kosmos Energy Ltd. (a) | 69,623 | 459,512 | ||||||
Laredo Petroleum, Inc. (a) | 46,967 | 608,692 | ||||||
Marathon Oil Corp. | 252,504 | 3,088,124 | ||||||
Matador Resources Co. (a) | 26,752 | 649,004 | ||||||
Midstates Petroleum Co., Inc. (a) | 3,368 | 47,758 | ||||||
Murphy Oil Corp. | 48,917 | 1,300,214 |
See accompanying notes which are an integral part of the financial statements.
37 | Annual Report |
Table of Contents
Fidelity MSCI Energy Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
OIL, GAS & CONSUMABLE FUELS – continued |
| |||||||
Oil & Gas Exploration & Production – continued |
| |||||||
Newfield Exploration Co. (a) | 59,427 | $ | 1,707,338 | |||||
Noble Energy, Inc. | 139,370 | 4,029,187 | ||||||
Oasis Petroleum, Inc. (a) | 67,386 | 524,263 | ||||||
Parsley Energy, Inc. Class A (a) | 66,256 | 1,939,976 | ||||||
PDC Energy, Inc. (a) | 16,696 | 787,383 | ||||||
Pioneer Natural Resources Co. | 50,700 | 8,269,170 | ||||||
QEP Resources, Inc. (a) | 71,554 | 613,218 | ||||||
Range Resources Corp. | 73,930 | 1,560,662 | ||||||
Resolute Energy Corp. (a) | 5,115 | 173,705 | ||||||
Rice Energy, Inc. (a) | 44,720 | 1,250,818 | ||||||
Ring Energy, Inc. (a) | 13,966 | 182,396 | ||||||
RSP Permian, Inc. (a) | 35,526 | 1,220,673 | ||||||
Sanchez Energy Corp. (a) | 20,855 | 117,622 | ||||||
SandRidge Energy, Inc. (a) | 9,663 | 186,593 | ||||||
SM Energy Co. | 29,907 | 520,083 | ||||||
Southwestern Energy Co. (a) | 148,736 | 847,795 | ||||||
SRC Energy, Inc. (a) | 57,069 | 485,657 | ||||||
Whiting Petroleum Corp. (a) | 108,331 | 568,738 | ||||||
WildHorse Resource Development Corp. (a) | 7,034 | 92,990 | ||||||
WPX Energy, Inc. (a) | 118,373 | 1,276,061 | ||||||
|
| |||||||
114,369,470 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 8.8% |
| |||||||
Andeavor | 45,266 | 4,505,325 | ||||||
Clean Energy Fuels Corp. (a) | 33,870 | 88,739 | ||||||
CVR Energy, Inc. | 5,199 | 98,313 | ||||||
Delek US Holdings, Inc. | 21,843 | 570,321 | ||||||
Green Plains, Inc. | 10,859 | 214,465 | ||||||
HollyFrontier Corp. | 50,325 | 1,451,373 | ||||||
Marathon Petroleum Corp. | 157,593 | 8,823,632 | ||||||
Par Pacific Holdings, Inc. (a) | 6,751 | 120,910 | ||||||
PBF Energy, Inc. Class A | 32,572 | 741,664 | ||||||
Phillips 66 | 131,425 | 11,006,844 | ||||||
Renewable Energy Group, Inc. (a) | 10,388 | 129,850 | ||||||
REX American Resources Corp. (a) | 1,666 | 166,567 | ||||||
Tellurian, Inc. (a) | 17,937 | 164,124 |
Shares | Value | |||||||
Valero Energy Corp. | 134,681 | $ | 9,288,949 | |||||
World Fuel Services Corp. | 20,888 | 675,518 | ||||||
|
| |||||||
38,046,594 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 8.2% |
| |||||||
Cheniere Energy, Inc. (a) | 60,389 | 2,729,583 | ||||||
Enbridge Energy Management LLC (a) | 20,438 | 310,249 | ||||||
EnLink Midstream LLC | 18,869 | 331,151 | ||||||
Gener8 Maritime, Inc. (a) | 11,887 | 63,595 | ||||||
International Seaways, Inc. (a) | 4,373 | 99,748 | ||||||
Kinder Morgan, Inc. | 599,934 | 12,256,652 | ||||||
ONEOK, Inc. | 113,438 | 6,417,188 | ||||||
Plains GP Holdings LP Class A (a) | 41,220 | 1,126,955 | ||||||
SemGroup Corp. Class A | 19,744 | 534,075 | ||||||
Tallgrass Energy GP LP | 15,649 | 406,092 | ||||||
Targa Resources Corp. | 64,355 | 2,986,715 | ||||||
The Williams Cos., Inc. | 246,586 | 7,836,503 | ||||||
|
| |||||||
35,098,506 | ||||||||
|
| |||||||
TOTAL OIL, GAS & CONSUMABLE FUELS |
| 363,896,099 | ||||||
|
| |||||||
TOTAL COMMON STOCKS | 430,795,338 | |||||||
|
| |||||||
Money Market Funds – 0.0% | ||||||||
State Street Institutional Treasury Plus | 247,311 | 247,311 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 99.9% |
| 431,042,649 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 267,923 | ||||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 431,310,572 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Annual Report | 38 |
Table of Contents
Fidelity MSCI Financials Index ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
BANKS – 45.3% |
| |||||||
Diversified Banks – 29.8% |
| |||||||
Bank of America Corp. | 2,486,319 | $ | 59,970,014 | |||||
Citigroup, Inc. | 687,171 | 47,036,855 | ||||||
JPMorgan Chase & Co. | 887,431 | 81,466,166 | ||||||
US Bancorp | 420,219 | 22,179,159 | ||||||
Wells Fargo & Co. | 1,181,809 | 63,746,777 | ||||||
|
| |||||||
274,398,971 | ||||||||
|
| |||||||
Regional Banks – 15.5% |
| |||||||
1st Source Corp. | 4,691 | 230,328 | ||||||
Access National Corp. | 3,615 | 96,123 | ||||||
Allegiance Bancshares, Inc. (a) | 2,818 | 105,816 | ||||||
Ameris Bancorp | 9,292 | 425,574 | ||||||
Arrow Financial Corp. | 3,280 | 106,928 | ||||||
Associated Banc-Corp | 37,780 | 904,831 | ||||||
Atlantic Capital Bancshares, Inc. (a) | 5,532 | 106,768 | ||||||
Banc of California, Inc. | 11,024 | 226,543 | ||||||
Bancfirst Corp. | 2,197 | 234,530 | ||||||
BancorpSouth, Inc. | 21,035 | 632,102 | ||||||
Bank of Hawaii Corp. | 11,154 | 933,255 | ||||||
Bank of the Ozarks, Inc. | 30,258 | 1,305,633 | ||||||
BankUnited, Inc. | 26,519 | 912,784 | ||||||
Banner Corp. | 7,971 | 460,485 | ||||||
Bar Harbor Bankshares | 3,916 | 109,217 | ||||||
BB&T Corp. | 200,619 | 9,493,291 | ||||||
Berkshire Hills Bancorp, Inc. | 9,859 | 366,262 | ||||||
Blue Hills Bancorp, Inc. | 6,447 | 122,171 | ||||||
BOK Financial Corp. | 5,084 | 432,496 | ||||||
Boston Private Financial Holdings, Inc. | 21,745 | 333,786 | ||||||
Bridge Bancorp, Inc. | 4,825 | 156,812 | ||||||
Brookline Bancorp, Inc. | 19,402 | 288,120 | ||||||
Bryn Mawr Bank Corp. | 4,282 | 181,771 | ||||||
Camden National Corp. | 3,997 | 167,874 | ||||||
Capital Bank Financial Corp. Class A | 6,128 | 232,864 | ||||||
Cathay General Bancorp | 18,908 | 708,105 | ||||||
CenterState Banks, Inc. | 13,782 | 344,412 | ||||||
Central Pacific Financial Corp. | 7,343 | 227,119 | ||||||
Chemical Financial Corp. | 17,776 | 856,625 | ||||||
CIT Group, Inc. | 36,142 | 1,722,166 | ||||||
Citizens Financial Group, Inc. | 126,952 | 4,453,476 | ||||||
City Holding Co. | 4,501 | 295,401 | ||||||
CoBiz Financial, Inc. | 9,890 | 174,064 | ||||||
Columbia Banking System, Inc. | 14,549 | 579,632 | ||||||
Comerica, Inc. | 43,698 | 3,159,802 | ||||||
Commerce Bancshares, Inc. | 22,721 | 1,318,727 | ||||||
Community Bank System, Inc. | 12,670 | 695,583 | ||||||
Community Trust Bancorp, Inc. | 4,338 | 187,402 | ||||||
ConnectOne Bancorp, Inc. | 7,870 | 177,075 | ||||||
CU Bancorp (a) | 4,354 | 160,663 | ||||||
Cullen/Frost Bankers, Inc. | 15,133 | 1,373,774 | ||||||
Customers Bancorp, Inc. (a) | 7,835 | 233,875 |
Shares | Value | |||||||
CVB Financial Corp. | 25,846 | $ | 556,723 | |||||
Eagle Bancorp, Inc. (a) | 8,056 | 503,097 | ||||||
East West Bancorp, Inc. | 35,943 | 2,048,032 | ||||||
Enterprise Financial Services Corp. | 5,885 | 232,752 | ||||||
FB Financial Corp. (a) | 1,882 | 64,684 | ||||||
FCB Financial Holdings, Inc. Class A (a) | 9,892 | 466,408 | ||||||
Fidelity Southern Corp. | 5,680 | 119,621 | ||||||
Fifth Third Bancorp | 187,667 | 5,010,709 | ||||||
Financial Institutions, Inc. | 3,439 | 101,107 | ||||||
First BanCorp (a) | 41,620 | 243,893 | ||||||
First BanCorp/NC | 6,097 | 190,836 | ||||||
First Busey Corp. | 9,773 | 285,762 | ||||||
First Citizens BancShares, Inc. Class A | 1,877 | 690,774 | ||||||
First Commonwealth Financial Corp. | 24,860 | 323,926 | ||||||
First Community Bancshares, Inc. | 3,919 | 106,675 | ||||||
First Financial Bancorp | 15,669 | 401,126 | ||||||
First Financial Bankshares, Inc. | 13,326 | 576,349 | ||||||
First Financial Corp. | 2,476 | 114,020 | ||||||
First Foundation, Inc. (a) | 7,105 | 123,201 | ||||||
First Hawaiian, Inc. | 14,104 | 416,068 | ||||||
First Horizon National Corp. | 58,312 | 1,016,378 | ||||||
First Interstate Bancsystem, Inc. Class A | 6,696 | 244,739 | ||||||
First Merchants Corp. | 11,737 | 474,644 | ||||||
First Midwest Bancorp, Inc. | 20,556 | 456,549 | ||||||
First Republic Bank | 38,721 | 3,884,878 | ||||||
Flushing Financial Corp. | 7,359 | 209,952 | ||||||
FNB Corp. | 80,523 | 1,103,165 | ||||||
Franklin Financial Network, Inc. (a) | 3,140 | 108,487 | ||||||
Fulton Financial Corp. | 43,372 | 791,539 | ||||||
German American Bancorp, Inc. | 5,484 | 196,492 | ||||||
Glacier Bancorp, Inc. | 19,235 | 671,686 | ||||||
Great Southern Bancorp, Inc. | 2,668 | 138,603 | ||||||
Great Western Bancorp, Inc. | 14,702 | 573,525 | ||||||
Green Bancorp, Inc. (a) | 5,669 | 127,269 | ||||||
Guaranty Bancorp | 6,089 | 162,272 | ||||||
Hancock Holding Co. | 20,948 | 963,608 | ||||||
Hanmi Financial Corp. | 8,360 | 239,514 | ||||||
HarborOne Bancorp, Inc. (a) | 4,011 | 77,733 | ||||||
Heartland Financial USA, Inc. | 6,405 | 301,675 | ||||||
Heritage Commerce Corp. | 9,139 | 126,941 | ||||||
Heritage Financial Corp. | 7,533 | 204,898 | ||||||
Hilltop Holdings, Inc. | 19,860 | 497,096 | ||||||
Home BancShares, Inc. | 31,607 | 783,854 | ||||||
HomeTrust Bancshares, Inc. (a) | 4,513 | 108,989 | ||||||
Hope Bancorp, Inc. | 32,273 | 568,973 | ||||||
Horizon Bancorp | 5,874 | 154,897 | ||||||
Huntington Bancshares, Inc. | 269,785 | 3,574,651 | ||||||
Iberiabank Corp. | 12,678 | 1,025,016 | ||||||
Independent Bank Corp. | 6,796 | 484,895 |
See accompanying notes which are an integral part of the financial statements.
39 | Annual Report |
Table of Contents
Fidelity MSCI Financials Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
BANKS – continued |
| |||||||
Regional Banks – continued |
| |||||||
Independent Bank Corp. | 5,458 | $ | 115,710 | |||||
Independent Bank Group, Inc. | 3,198 | 192,999 | ||||||
International Bancshares Corp. | 14,133 | 500,308 | ||||||
Investors Bancorp, Inc. | 65,404 | 868,565 | ||||||
KeyCorp | 268,805 | 4,849,242 | ||||||
Lakeland Bancorp, Inc. | 11,283 | 218,326 | ||||||
Lakeland Financial Corp. | 6,679 | 307,234 | ||||||
LegacyTexas Financial Group, Inc. | 11,253 | 435,716 | ||||||
Live Oak Bancshares, Inc. | 4,542 | 114,685 | ||||||
M&T Bank Corp. | 34,440 | 5,618,886 | ||||||
MainSource Financial Group, Inc. | 6,207 | 216,873 | ||||||
MB Financial, Inc. | 19,953 | 816,078 | ||||||
Mercantile Bank Corp. | 4,316 | 137,335 | ||||||
Midland States Bancorp, Inc. | 3,757 | 119,322 | ||||||
National Bank Holdings Corp. Class A | 6,695 | 228,500 | ||||||
NBT Bancorp, Inc. | 10,940 | 395,372 | ||||||
OFG Bancorp | 11,778 | 118,369 | ||||||
Old National Bancorp | 33,704 | 549,375 | ||||||
Opus Bank | 5,721 | 136,160 | ||||||
Pacific Continental Corp. | 5,458 | 138,633 | ||||||
Pacific Premier Bancorp, Inc. (a) | 9,061 | 325,290 | ||||||
PacWest Bancorp | 30,327 | 1,456,302 | ||||||
Park National Corp. | 3,504 | 346,090 | ||||||
Park Sterling Corp. | 12,589 | 146,284 | ||||||
Peapack Gladstone Financial Corp. | 3,962 | 123,892 | ||||||
Peoples Bancorp, Inc. | 4,157 | 135,518 | ||||||
People’s United Financial, Inc. | 85,557 | 1,492,114 | ||||||
People’s Utah Bancorp | 3,654 | 101,581 | ||||||
Pinnacle Financial Partners, Inc. | 18,246 | 1,165,919 | ||||||
Popular, Inc. | 27,246 | 1,148,146 | ||||||
Preferred Bank | 3,218 | 180,691 | ||||||
Prosperity Bancshares, Inc. | 16,425 | 1,052,842 | ||||||
QCR Holdings, Inc. | 3,321 | 152,600 | ||||||
Regions Financial Corp. | 299,554 | 4,373,488 | ||||||
Renasant Corp. | 10,995 | 466,078 | ||||||
Republic Bancorp, Inc. Class A | 2,915 | 104,648 | ||||||
Republic First Bancorp, Inc. (a) | 11,585 | 103,106 | ||||||
S&T Bancorp, Inc. | 9,399 | 356,034 | ||||||
Sandy Spring Bancorp, Inc. | 6,635 | 265,665 | ||||||
Seacoast Banking Corp. of Florida (a) | 8,891 | 207,783 | ||||||
ServisFirst Bancshares, Inc. | 11,334 | 411,878 | ||||||
Signature Bank (a) | 13,562 | 1,879,422 | ||||||
Simmons First National Corp. Class A | 7,125 | 388,669 | ||||||
South State Corp. | 6,930 | 580,387 | ||||||
Southside Bancshares, Inc. | 7,038 | 244,430 | ||||||
Southwest Bancorp, Inc. | 4,516 | 117,868 | ||||||
State Bank Financial Corp. | 9,639 | 264,591 | ||||||
Sterling Bancorp/DE | 32,156 | 742,804 | ||||||
Stock Yards Bancorp, Inc. | 5,473 | 196,207 |
Shares | Value | |||||||
Stonegate Bank | 3,555 | $ | 165,485 | |||||
Sun Bancorp, Inc. | 2,921 | 71,126 | ||||||
SunTrust Banks, Inc. | 122,166 | 6,998,890 | ||||||
SVB Financial Group (a) | 13,013 | 2,322,040 | ||||||
Synovus Financial Corp. | 30,928 | 1,344,749 | ||||||
TCF Financial Corp. | 40,385 | 636,468 | ||||||
Texas Capital Bancshares, Inc. (a) | 12,403 | 971,775 | ||||||
The Bancorp, Inc. (a) | 15,082 | 116,885 | ||||||
The First of Long Island Corp. | 5,553 | 155,206 | ||||||
The PNC Financial Services Group, Inc. | 120,221 | 15,484,465 | ||||||
Tompkins Financial Corp. | 3,693 | 290,676 | ||||||
Towne Bank | 14,922 | 467,059 | ||||||
Trico Bancshares | 5,429 | 200,330 | ||||||
TriState Capital Holdings, Inc. (a) | 5,921 | 136,183 | ||||||
Trustmark Corp. | 16,879 | 539,453 | ||||||
UMB Financial Corp. | 10,555 | 735,261 | ||||||
Umpqua Holdings Corp. | 54,868 | 1,017,253 | ||||||
Union Bankshares Corp. | 11,040 | 341,026 | ||||||
United Bankshares, Inc. | 24,881 | 858,394 | ||||||
United Community Banks, Inc. | 16,990 | 471,642 | ||||||
Univest Corp. of Pennsylvania | 6,806 | 207,583 | ||||||
Valley National Bancorp | 65,580 | 779,090 | ||||||
Washington Trust Bancorp, Inc. | 4,037 | 219,815 | ||||||
Webster Financial Corp. | 22,875 | 1,187,899 | ||||||
WesBanco, Inc. | 10,970 | 419,383 | ||||||
Westamerica BanCorp. | 6,651 | 363,943 | ||||||
Western Alliance Bancorp (a) | 24,810 | 1,249,928 | ||||||
Wintrust Financial Corp. | 12,902 | 971,650 | ||||||
Xenith Bankshares, Inc. (a) | 2,293 | 64,617 | ||||||
Zions BanCorp. | 50,688 | 2,297,180 | ||||||
|
| |||||||
142,776,415 | ||||||||
|
| |||||||
TOTAL BANKS |
| 417,175,386 | ||||||
|
| |||||||
CAPITAL MARKETS – 19.5% |
| |||||||
Asset Management & Custody Banks – 7.5% |
| |||||||
Affiliated Managers Group, Inc. | 14,117 | 2,623,362 | ||||||
Ameriprise Financial, Inc. | 38,265 | 5,543,833 | ||||||
Arlington Asset Investment Corp. Class A | 1,816 | 23,426 | ||||||
Artisan Partners Asset Management, Inc. Class A | 11,632 | 386,764 | ||||||
Associated Capital Group, Inc. Class A | 1,504 | 50,459 | ||||||
BlackRock, Inc. | 29,995 | 12,793,767 | ||||||
Cohen & Steers, Inc. | 5,329 | 215,292 | ||||||
Diamond Hill Investment Group, Inc. | 969 | 191,378 | ||||||
Eaton Vance Corp. | 28,815 | 1,414,528 | ||||||
Federated Investors, Inc. Class B | 8,854 | 255,261 | ||||||
Financial Engines, Inc. | 14,807 | 569,329 | ||||||
Franklin Resources, Inc. | 84,247 | 3,772,581 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 40 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
CAPITAL MARKETS – continued |
| |||||||
Asset Management & Custody Banks – continued |
| |||||||
GAMCO Investors, Inc. Class A | 1,434 | $ | 44,038 | |||||
Invesco Ltd. | 100,265 | 3,486,214 | ||||||
Janus Henderson Group PLC (a) | 47,448 | 1,589,034 | ||||||
Legg Mason, Inc. | 22,515 | 900,825 | ||||||
Northern Trust Corp. | 54,007 | 4,726,153 | ||||||
OM Asset Management PLC | 19,638 | 295,945 | ||||||
Pzena Investment Management, Inc. Class A | 4,420 | 46,631 | ||||||
Safeguard Scientifics, Inc. (a) | 5,819 | 69,246 | ||||||
SEI Investments Co. | 34,430 | 1,945,639 | ||||||
State Street Corp. | 94,801 | 8,838,297 | ||||||
T Rowe Price Group, Inc. | 60,966 | 5,043,108 | ||||||
The Bank of New York Mellon Corp. | 257,340 | 13,646,740 | ||||||
Virtus Investment Partners, Inc. | 1,793 | 211,215 | ||||||
Waddell & Reed Financial, Inc. Class A | 19,480 | 402,652 | ||||||
Westwood Holdings Group, Inc. | 2,114 | 124,620 | ||||||
WisdomTree Investments, Inc. | 28,927 | 301,998 | ||||||
|
| |||||||
69,512,335 | ||||||||
|
| |||||||
Financial Exchanges and Data – 5.1% |
| |||||||
CBOE Holdings, Inc. | 25,437 | 2,404,560 | ||||||
CME Group, Inc. | 84,271 | 10,333,310 | ||||||
Donnelley Financial Solutions, Inc. (a) | 8,509 | 197,409 | ||||||
FactSet Research Systems, Inc. | 9,874 | 1,651,130 | ||||||
Intercontinental Exchange, Inc. | 147,718 | 9,854,268 | ||||||
MarketAxess Holdings, Inc. | 9,355 | 1,898,036 | ||||||
Moody’s Corp. | 42,618 | 5,609,807 | ||||||
Morningstar, Inc. | 5,414 | 447,034 | ||||||
MSCI, Inc. | 22,522 | 2,453,772 | ||||||
Nasdaq, Inc. | 28,785 | 2,140,740 | ||||||
S&P Global, Inc. | 64,118 | 9,847,884 | ||||||
|
| |||||||
46,837,950 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 6.9% |
| |||||||
BGC Partners, Inc. Class A | 52,098 | 656,956 | ||||||
Cowen, Inc. Class A (a) | 6,612 | 105,792 | ||||||
E*TRADE Financial Corp. (a) | 68,392 | 2,804,072 | ||||||
Evercore Partners, Inc. Class A | 10,334 | 812,769 | ||||||
Greenhill & Co., Inc. | 7,157 | 132,405 | ||||||
Houlihan Lokey, Inc. | 5,545 | 206,163 | ||||||
Interactive Brokers Group, Inc. Class A | 16,542 | 662,507 | ||||||
INTL. FCStone, Inc. (a) | 4,293 | 167,985 | ||||||
Investment Technology Group, Inc. | 2,256 | 49,790 | ||||||
Ladenburg Thalmann Financial Services, Inc. (a) | 30,249 | 68,968 | ||||||
LPL Financial Holdings, Inc. | 20,152 | 922,156 | ||||||
Moelis & Co. Class A | 6,518 | 266,586 | ||||||
Morgan Stanley | 347,235 | 16,285,321 | ||||||
Piper Jaffray Cos. | 4,013 | 250,411 | ||||||
PJT Partners, Inc. Class A | 4,857 | 210,697 |
Shares | Value | |||||||
Raymond James Financial, Inc. | 32,168 | $ | 2,676,056 | |||||
Stifel Financial Corp. (a) | 16,957 | 862,263 | ||||||
TD Ameritrade Holding Corp. | 65,607 | 3,000,208 | ||||||
The Charles Schwab Corp. | 298,064 | 12,786,946 | ||||||
The Goldman Sachs Group, Inc. | 88,940 | 20,040,850 | ||||||
Virtu Financial, Inc. Class A | 9,937 | 164,457 | ||||||
|
| |||||||
63,133,358 | ||||||||
|
| |||||||
TOTAL CAPITAL MARKETS |
| 179,483,643 | ||||||
|
| |||||||
CONSUMER FINANCE – 5.1% |
| |||||||
Consumer Finance – 5.1% |
| |||||||
Ally Financial, Inc. | 115,822 | 2,622,210 | ||||||
American Express Co. | 190,065 | 16,199,240 | ||||||
Capital One Financial Corp. | 119,258 | 10,277,654 | ||||||
Credit Acceptance Corp. (a) | 2,002 | 498,698 | ||||||
Discover Financial Services | 95,759 | 5,835,554 | ||||||
Encore Capital Group, Inc. (a) | 2,924 | 117,252 | ||||||
Enova International Inc. (a) | 6,864 | 99,528 | ||||||
Ezcorp, Inc. Class A (a) | 13,617 | 106,213 | ||||||
FirstCash, Inc. | 12,151 | 706,581 | ||||||
Green Dot Corp. Class A (a) | 10,225 | 411,454 | ||||||
LendingClub Corp. (a) | 73,811 | 374,222 | ||||||
Navient Corp. | 75,656 | 1,115,926 | ||||||
Nelnet, Inc. Class A | 5,955 | 292,331 | ||||||
OneMain Holdings, Inc. (a) | 15,500 | 414,470 | ||||||
PRA Group, Inc. (a) | 11,681 | 457,895 | ||||||
SLM Corp. (a) | 107,201 | 1,187,787 | ||||||
Synchrony Financial | 201,268 | 6,102,446 | ||||||
World Acceptance Corp. (a) | 1,776 | 134,212 | ||||||
|
| |||||||
TOTAL CONSUMER FINANCE |
| 46,953,673 | ||||||
|
| |||||||
DIVERSIFIED FINANCIAL SERVICES – 6.4% |
| |||||||
Multi-Sector Holdings – 6.2% |
| |||||||
Berkshire Hathaway, Inc. Class B (a) | 307,375 | 53,781,404 | ||||||
FNFV Group (a) | 15,343 | 264,667 | ||||||
Leucadia National Corp. | 81,190 | 2,113,375 | ||||||
Texas Pacific Land Trust | 1,600 | 531,216 | ||||||
|
| |||||||
56,690,662 | ||||||||
|
| |||||||
Other Diversified Financial Services – 0.2% |
| |||||||
Voya Financial, Inc. | 47,265 | 1,854,679 | ||||||
|
| |||||||
Specialized Finance – 0.0% |
| |||||||
NewStar Financial, Inc. | 5,931 | 64,885 | ||||||
On Deck Capital, Inc. (a) | 10,567 | 45,438 | ||||||
|
| |||||||
110,323 | ||||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES |
| 58,655,664 | ||||||
|
| |||||||
INSURANCE – 20.7% |
| |||||||
Insurance Brokers – 3.0% |
| |||||||
Aon PLC | 65,165 | 9,003,848 | ||||||
Arthur J Gallagher & Co. | 45,037 | 2,647,725 |
See accompanying notes which are an integral part of the financial statements.
41 | Annual Report |
Table of Contents
Fidelity MSCI Financials Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
INSURANCE – continued |
| |||||||
Insurance Brokers – continued |
| |||||||
Brown & Brown, Inc. | 30,279 | $ | 1,350,444 | |||||
Crawford & Co. Class A | 4,975 | 36,964 | ||||||
Marsh & McLennan Cos., Inc. | 127,775 | 9,962,617 | ||||||
Willis Towers Watson PLC | 32,147 | 4,786,045 | ||||||
|
| |||||||
27,787,643 | ||||||||
|
| |||||||
Life & Health Insurance – 5.5% |
| |||||||
Aflac, Inc. | 99,629 | 7,945,413 | ||||||
American Equity Investment Life Holding Co. | 6,956 | 186,282 | ||||||
Athene Holding Ltd. Class A (a) | 26,675 | 1,347,888 | ||||||
Citizens, Inc. (a) | 12,928 | 104,070 | ||||||
CNO Financial Group, Inc. | 18,822 | 430,647 | ||||||
FBL Financial Group, Inc. Class A | 2,900 | 196,910 | ||||||
Fidelity & Guaranty Life | 3,186 | 99,244 | ||||||
Genworth Financial, Inc. Class A (a) | 88,274 | 302,780 | ||||||
Lincoln National Corp. | 55,993 | 4,090,849 | ||||||
MetLife, Inc. | 231,123 | 12,711,765 | ||||||
National Western Life Group, Inc. Class A | 789 | 265,569 | ||||||
Primerica, Inc. | 10,293 | 834,248 | ||||||
Principal Financial Group, Inc. | 71,924 | 4,800,927 | ||||||
Prudential Financial, Inc. | 106,665 | 12,077,678 | ||||||
Torchmark Corp. | 27,858 | 2,199,946 | ||||||
Trupanion, Inc. (a) | 5,216 | 124,245 | ||||||
Unum Group | 57,010 | 2,857,911 | ||||||
|
| |||||||
50,576,372 | ||||||||
|
| |||||||
Multi-line Insurance – 3.1% |
| |||||||
American Financial Group, Inc. | 18,517 | 1,877,624 | ||||||
American International Group, Inc. | 243,075 | 15,909,259 | ||||||
American National Insurance Co. | 3,369 | 400,911 | ||||||
Assurant, Inc. | 13,827 | 1,455,568 | ||||||
Hartford Financial Services Group, Inc. | 91,982 | 5,059,010 | ||||||
Horace Mann Educators Corp. | 10,138 | 374,092 | ||||||
Kemper Corp. | 10,363 | 406,748 | ||||||
Loews Corp. | 71,063 | 3,459,347 | ||||||
National General Holdings Corp. | 13,604 | 288,541 | ||||||
|
| |||||||
29,231,100 | ||||||||
|
| |||||||
Property & Casualty Insurance – 8.1% |
| |||||||
Ambac Financial Group, Inc. (a) | 2,596 | 53,036 | ||||||
AMERISAFE, Inc. | 4,414 | 254,909 | ||||||
Amtrust Financial Services, Inc. | 24,253 | 388,048 | ||||||
Arch Capital Group Ltd. (a) | 32,331 | 3,144,513 | ||||||
Argo Group International Holdings Ltd. | 7,510 | 450,225 | ||||||
Aspen Insurance Holdings Ltd. | 14,865 | 725,412 | ||||||
Assured Guaranty Ltd. | 31,194 | 1,404,042 | ||||||
Axis Capital Holdings Ltd. | 21,392 | 1,381,495 | ||||||
Baldwin & Lyons, Inc. Class B | 2,518 | 58,921 |
Shares | Value | |||||||
Chubb Ltd. | 115,591 | $ | 16,929,458 | |||||
Cincinnati Financial Corp. | 38,872 | 2,960,492 | ||||||
Donegal Group, Inc. Class A | 3,493 | 52,675 | ||||||
EMC Insurance Group, Inc. | 2,742 | 75,953 | ||||||
Employers Holdings, Inc. | 8,121 | 352,045 | ||||||
Erie Indemnity Co. Class A | 6,344 | 808,606 | ||||||
Federated National Holding Co. | 4,929 | 78,470 | ||||||
First American Financial Corp. | 27,422 | 1,327,499 | ||||||
FNF Group | 64,369 | 3,145,069 | ||||||
Global Indemnity Ltd. (a) | 2,389 | 92,598 | ||||||
HCI Group, Inc. | 2,227 | 100,415 | ||||||
Heritage Insurance Holdings, Inc. | 9,628 | 121,409 | ||||||
Infinity Property & Casualty Corp. | 2,836 | 283,742 | ||||||
James River Group Holdings Ltd. | 5,567 | 223,571 | ||||||
Kinsale Capital Group, Inc. | 5,036 | 196,001 | ||||||
Markel Corp. (a) | 3,468 | 3,715,997 | ||||||
MBIA, Inc. (a) | 36,267 | 368,835 | ||||||
Mercury General Corp. | 6,962 | 416,954 | ||||||
Old Republic International Corp. | 61,799 | 1,212,496 | ||||||
OneBeacon Insurance Group Ltd. Class A | 5,529 | 101,291 | ||||||
ProAssurance Corp. | 13,296 | 821,693 | ||||||
RLI Corp. | 9,907 | 575,200 | ||||||
Safety Insurance Group, Inc. | 1,092 | 77,477 | ||||||
Selective Insurance Group, Inc. | 14,626 | 740,807 | ||||||
State Auto Financial Corp. | 4,472 | 115,333 | ||||||
State National Cos., Inc. | 7,203 | 150,399 | ||||||
Stewart Information Services Corp. | 5,664 | 222,595 | ||||||
The Allstate Corp. | 90,633 | 8,247,603 | ||||||
The Hanover Insurance Group, Inc. | 10,592 | 1,004,757 | ||||||
The Navigators Group, Inc. | 6,166 | 351,462 | ||||||
The Progressive Corp. | 144,268 | 6,799,351 | ||||||
The Travelers Cos., Inc. | 69,415 | 8,891,367 | ||||||
United Fire Group, Inc. | 3,713 | 167,531 | ||||||
United Insurance Holdings Corp. | 4,880 | 77,885 | ||||||
Universal Insurance Holdings, Inc. | 10,480 | 249,948 | ||||||
White Mountains Insurance Group Ltd. | 1,162 | 1,004,665 | ||||||
WR Berkley Corp. | 24,173 | 1,667,212 | ||||||
XL Group Ltd. | 66,830 | 2,967,252 | ||||||
|
| |||||||
74,556,714 | ||||||||
|
| |||||||
Reinsurance – 1.0% |
| |||||||
Alleghany Corp. (a) | 2,453 | 1,504,523 | ||||||
Enstar Group Ltd. (a) | 2,669 | 540,739 | ||||||
Everest Re Group Ltd. | 10,159 | 2,665,620 | ||||||
Greenlight Capital Re Ltd. (a) | 7,670 | 164,138 | ||||||
Maiden Holdings Ltd. | 12,525 | 139,028 | ||||||
Reinsurance Group of America, Inc. | 15,938 | 2,234,508 | ||||||
RenaissanceRe Holdings Ltd. | 2,617 | 384,463 | ||||||
Third Point Reinsurance Ltd. (a) | 15,131 | 220,156 | ||||||
Validus Holdings Ltd. | 19,762 | 1,062,998 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 42 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
INSURANCE – continued |
| |||||||
Reinsurance – continued |
| |||||||
WMIH Corp. (a) | 59,762 | $ | 68,726 | |||||
|
| |||||||
8,984,899 | ||||||||
|
| |||||||
TOTAL INSURANCE |
| 191,136,728 | ||||||
|
| |||||||
MORTGAGE REAL ESTATE INVESTMENT TRUST (REITS) – 1.6% |
| |||||||
Mortgage REIT’s – 1.6% |
| |||||||
AG Mortgage Investment Trust, Inc. | 5,517 | 101,568 | ||||||
AGNC Investment Corp. | 88,587 | 1,876,273 | ||||||
Annaly Capital Management, Inc. | 267,391 | 3,216,714 | ||||||
Anworth Mortgage Asset Corp. | 20,427 | 122,971 | ||||||
Apollo Commercial Real Estate Finance, Inc. | 26,214 | 472,638 | ||||||
Arbor Realty Trust, Inc. | 12,516 | 103,257 | ||||||
ARMOUR Residential REIT, Inc. | 10,360 | 261,694 | ||||||
Blackstone Mortgage Trust, Inc. Class A | 22,420 | 692,105 | ||||||
Capstead Mortgage Corp. | 23,596 | 230,769 | ||||||
Chimera Investment Corp. | 42,199 | 794,185 | ||||||
CYS Investments, Inc. | 43,486 | 370,066 | ||||||
Dynex Capital, Inc. | 12,801 | 88,455 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 12,969 | 301,529 | ||||||
Invesco Mortgage Capital, Inc. | 28,460 | 473,290 | ||||||
Ladder Capital Corp. | 13,892 | 182,819 | ||||||
MFA Financial, Inc. | 98,007 | 832,080 | ||||||
MTGE Investment Corp. | 11,843 | 220,280 | ||||||
New Residential Investment Corp. | 76,921 | 1,307,657 | ||||||
New York Mortgage Trust, Inc. | 25,109 | 158,689 | ||||||
PennyMac Mortgage Investment Trust | 13,989 | 246,206 | ||||||
Redwood Trust, Inc. | 22,000 | 379,940 | ||||||
Resource Capital Corp. | 7,380 | 75,645 | ||||||
Starwood Property Trust, Inc. | 66,008 | 1,454,816 | ||||||
Sutherland Asset Management Corp. | 4,373 | 64,720 | ||||||
Two Harbors Investment Corp. | 91,424 | 904,183 | ||||||
Western Asset Mortgage Capital Corp. | 9,229 | 95,889 | ||||||
|
| |||||||
TOTAL MORTGAGE REAL ESTATE INVESTMENT TRUST (REITS) |
| 15,028,438 | ||||||
|
| |||||||
THRIFTS & MORTGAGE FINANCE – 1.3% |
| |||||||
Thrifts & Mortgage Finance – 1.3% |
| |||||||
Astoria Financial Corp. | 24,093 | 486,197 | ||||||
Bank Mutual Corp. | 11,551 | 114,932 | ||||||
Beneficial Bancorp, Inc. | 18,983 | 296,135 | ||||||
BofI Holding, Inc. (a) | 14,466 | 403,167 | ||||||
Capitol Federal Financial, Inc. | 34,734 | 495,307 | ||||||
Dime Community Bancshares, Inc. | 8,057 | 167,586 | ||||||
Essent Group Ltd. (a) | 17,600 | 676,192 |
Shares | Value | |||||||
Federal Agricultural Mortgage Corp. Class C | 2,324 | $ | 159,333 | |||||
First Defiance Financial Corp. | 2,684 | 138,897 | ||||||
Flagstar Bancorp, Inc. (a) | 5,931 | 193,113 | ||||||
HomeStreet, Inc. (a) | 6,421 | 168,551 | ||||||
Kearny Financial Corp. | 21,907 | 319,842 | ||||||
LendingTree, Inc. (a) | 1,986 | 438,112 | ||||||
Meridian Bancorp, Inc. | 12,984 | 229,168 | ||||||
Meta Financial Group, Inc. | 2,317 | 165,202 | ||||||
MGIC Investment Corp. (a) | 89,287 | 1,041,979 | ||||||
Nationstar Mortgage Holdings, Inc. (a) | 9,919 | 176,856 | ||||||
New York Community Bancorp, Inc. | 121,606 | 1,596,687 | ||||||
NMI Holdings, Inc. Class A (a) | 14,863 | 175,383 | ||||||
Northfield Bancorp, Inc. | 11,343 | 190,449 | ||||||
Northwest Bancshares, Inc. | 24,588 | 395,867 | ||||||
OceanFirst Financial Corp. | 7,083 | 191,808 | ||||||
Ocwen Financial Corp. (a) | 26,293 | 75,461 | ||||||
Oritani Financial Corp. | 9,820 | 163,012 | ||||||
PHH Corp. (a) | 13,971 | 192,520 | ||||||
Provident Financial Services, Inc. | 15,901 | 421,694 | ||||||
Radian Group, Inc. | 56,426 | 982,941 | ||||||
TFS Financial Corp. | 14,573 | 232,877 | ||||||
TrustCo Bank Corp. | 26,287 | 218,182 | ||||||
United Financial Bancorp, Inc. | 12,904 | 233,433 | ||||||
Walker & Dunlop, Inc. (a) | 7,347 | 369,187 | ||||||
Washington Federal, Inc. | 22,898 | 765,938 | ||||||
Waterstone Financial, Inc. | 7,775 | 146,559 | ||||||
WSFS Financial Corp. | 7,854 | 354,608 | ||||||
|
| |||||||
TOTAL THRIFTS & MORTGAGE FINANCE |
| 12,377,175 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 920,810,707 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 0.90% (b) | 958,831 | 958,831 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 100.0% |
| 921,769,538 | ||||||
NET OTHER ASSETS (LIABILITIES) – (0.0%) |
| (90,955 | ) | |||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 921,678,583 | |||||
|
|
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.
43 | Annual Report |
Table of Contents
Fidelity MSCI Financials Index ETF
Investments – continued
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Annual Report | 44 |
Table of Contents
Fidelity MSCI Health Care Index ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
BIOTECHNOLOGY – 23.0% | ||||||||
Biotechnology – 23.0% | ||||||||
AbbVie, Inc. | 367,391 | $ | 25,684,305 | |||||
ACADIA Pharmaceuticals, Inc. (a) | 22,281 | 663,305 | ||||||
Acceleron Pharma, Inc. (a) | 6,953 | 223,539 | ||||||
Achaogen, Inc. (a) | 6,078 | 115,543 | ||||||
Achillion Pharmaceuticals, Inc. (a) | 24,801 | 101,684 | ||||||
Acorda Therapeutics, Inc. (a) | 10,509 | 227,520 | ||||||
Aduro Biotech, Inc. (a) | 6,958 | 89,410 | ||||||
Advaxis, Inc. (a) | 7,996 | 51,734 | ||||||
Agenus, Inc. (a) | 18,619 | 82,668 | ||||||
Agios Pharmaceuticals, Inc. (a) | 9,220 | 515,767 | ||||||
Aimmune Therapeutics, Inc. (a) | 5,161 | 111,065 | ||||||
Alder Biopharmaceuticals, Inc. (a) | 13,569 | 145,867 | ||||||
Alexion Pharmaceuticals, Inc. (a) | 51,731 | 7,104,735 | ||||||
Alkermes PLC (a) | 35,282 | 1,919,694 | ||||||
Alnylam Pharmaceuticals, Inc. (a) | 18,936 | 1,566,765 | ||||||
AMAG Pharmaceuticals, Inc. (a) | 7,787 | 153,014 | ||||||
Amgen, Inc. | 169,749 | 29,622,898 | ||||||
Amicus Therapeutics, Inc. (a) | 33,458 | 433,281 | ||||||
AnaptysBio, Inc. (a) | 1,379 | 33,551 | ||||||
Ardelyx, Inc. (a) | 6,696 | 34,819 | ||||||
Arena Pharmaceuticals, Inc. (a) | 8,765 | 208,256 | ||||||
Array BioPharma, Inc. (a) | 37,047 | 278,223 | ||||||
Atara Biotherapeutics, Inc. (a) | 3,901 | 59,490 | ||||||
Avexis Inc. (a) | 5,783 | 535,795 | ||||||
Axovant Sciences Ltd. (a) | 7,299 | 167,293 | ||||||
Bellicum Pharmaceuticals, Inc. (a) | 5,533 | 58,539 | ||||||
BioCryst Pharmaceuticals, Inc. (a) | 15,424 | 78,817 | ||||||
Biogen, Inc. (a) | 49,757 | 14,409,130 | ||||||
BioMarin Pharmaceutical, Inc. (a) | 39,940 | 3,503,936 | ||||||
Biotime, Inc. (a) | 17,323 | 46,772 | ||||||
Bioverativ, Inc. (a) | 23,718 | 1,469,804 | ||||||
Bluebird Bio, Inc. (a) | 10,301 | 970,869 | ||||||
Blueprint Medicines Corp. (a) | 7,003 | 366,467 | ||||||
Cara Therapeutics Inc. (a) | 5,831 | 81,867 | ||||||
Celgene Corp. (a) | 179,318 | 24,281,450 | ||||||
Celldex Therapeutics, Inc. (a) | 28,264 | 64,725 | ||||||
Chimerix, Inc. (a) | 9,373 | 46,584 | ||||||
Clovis Oncology, Inc. (a) | 10,542 | 894,067 | ||||||
Coherus Biosciences, Inc. (a) | 7,261 | 94,756 | ||||||
Concert Pharmaceuticals, Inc. (a) | 3,514 | 50,707 | ||||||
Cytokinetics, Inc. (a) | 7,943 | 111,599 | ||||||
CytomX Therapeutics, Inc. (a) | 4,634 | 62,513 | ||||||
Dyax Corp. | 31,822 | 104,376 | ||||||
Dynavax Technologies Corp. (a) | 8,260 | 130,921 | ||||||
Eagle Pharmaceuticals, Inc. (a) | 2,131 | 104,739 | ||||||
Editas Medicine, Inc. (a) | 5,597 | 94,701 | ||||||
Emergent Biosolutions, Inc. (a) | 7,972 | 289,942 | ||||||
Enanta Pharmaceuticals, Inc. (a) | 3,251 | 123,896 | ||||||
Epizyme, Inc. (a) | 9,520 | 108,528 |
Shares | Value | |||||||
Esperion Therapeutics, Inc. (a) | 3,657 | $ | 165,625 | |||||
Exact Sciences Corp. (a) | 27,237 | 1,056,796 | ||||||
Exelixis, Inc. (a) | 67,474 | 1,829,220 | ||||||
FibroGen, Inc. (a) | 13,518 | 461,640 | ||||||
Five Prime Therapeutics, Inc. (a) | 6,694 | 188,369 | ||||||
Flexion Therapeutics, Inc. (a) | 5,028 | 114,638 | ||||||
Foundation Medicine, Inc. (a) | 3,351 | 118,458 | ||||||
Genomic Health, Inc. (a) | 4,648 | 148,271 | ||||||
Geron Corp. (a) | 36,124 | 95,729 | ||||||
Gilead Sciences, Inc. | 301,273 | 22,923,863 | ||||||
Global Blood Therapeutics, Inc. (a) | 7,312 | 190,843 | ||||||
Halozyme Therapeutics, Inc. (a) | 28,964 | 367,263 | ||||||
Heron Therapeutics, Inc. (a) | 10,496 | 166,362 | ||||||
ImmunoGen, Inc. (a) | 19,639 | 116,656 | ||||||
Immunomedics, Inc. (a) | 20,780 | 177,877 | ||||||
Incyte Corp. Ltd. (a) | 39,364 | 5,246,828 | ||||||
Inovio Pharmaceuticals, Inc. (a) | 19,737 | 109,738 | ||||||
Insmed, Inc. (a) | 13,370 | 216,193 | ||||||
Insys Therapeutics, Inc. (a) | 4,842 | 55,489 | ||||||
Intellia Therapeutics, Inc. (a) | 3,117 | 52,490 | ||||||
Intercept Pharmaceuticals, Inc. (a) | 3,956 | 463,366 | ||||||
Intrexon Corp. (a) | 13,701 | 295,805 | ||||||
Invitae Corp. (a) | 6,310 | 58,557 | ||||||
Ionis Pharmaceuticals, Inc. (a) | 27,957 | 1,464,947 | ||||||
Iovance Biotherapeutics, Inc. (a) | 10,998 | 64,338 | ||||||
Ironwood Pharmaceuticals, Inc. (a) | 29,143 | 517,288 | ||||||
Jounce Therapeutics, Inc. (a) | 1,833 | 23,664 | ||||||
Juno Therapeutics, Inc. (a) | 14,614 | 415,476 | ||||||
Karyopharm Therapeutics, Inc. (a) | 7,921 | 66,853 | ||||||
Keryx Biopharmaceuticals, Inc. (a) | 17,978 | 126,026 | ||||||
Kite Pharma, Inc. (a) | 10,680 | 1,157,819 | ||||||
La Jolla Pharmaceutical Co. (a) | 4,017 | 119,024 | ||||||
Lexicon Pharmaceuticals, Inc. (a) | 10,601 | 172,796 | ||||||
Ligand Pharmaceuticals, Inc. (a) | 4,821 | 582,907 | ||||||
Loxo Oncology, Inc. (a) | 4,725 | 341,665 | ||||||
MacroGenics, Inc. (a) | 7,638 | 126,180 | ||||||
Merrimack Pharmaceuticals, Inc. | 27,582 | 36,684 | ||||||
MiMedx Group, Inc. (a) | 23,791 | 355,913 | ||||||
Minerva Neurosciences Inc. (a) | 7,209 | 47,940 | ||||||
Momenta Pharmaceuticals, Inc. (a) | 15,389 | 254,688 | ||||||
Myovant Sciences Ltd. (a) | 3,450 | 38,088 | ||||||
Myriad Genetics, Inc. (a) | 15,612 | 378,903 | ||||||
Natera, Inc. (a) | 5,212 | 42,061 | ||||||
Neurocrine Biosciences, Inc. (a) | 20,036 | 962,329 | ||||||
NewLink Genetics Corp. (a) | 4,850 | 35,017 | ||||||
Novavax, Inc. (a) | 61,484 | 63,943 | ||||||
Opko Health, Inc. (a) | 76,672 | 494,534 | ||||||
Organovo Holdings, Inc. (a) | 23,849 | 55,807 | ||||||
Otonomy, Inc. (a) | 5,565 | 104,622 | ||||||
PDL BioPharma, Inc. | 35,269 | 80,061 | ||||||
Portola Pharmaceuticals, Inc. (a) | 13,084 | 807,283 |
See accompanying notes which are an integral part of the financial statements.
45 | Annual Report |
Table of Contents
Fidelity MSCI Health Care Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
BIOTECHNOLOGY – continued | ||||||||
Biotechnology – continued | ||||||||
Progenics Pharmaceuticals, Inc. (a) | 15,869 | $ | 95,690 | |||||
Prothena Corp. PLC (a) | 8,643 | 533,792 | ||||||
PTC Therapeutics, Inc. (a) | 7,519 | 155,042 | ||||||
Puma Biotechnology, Inc. (a) | 6,788 | 645,199 | ||||||
Ra Pharmaceuticals, Inc. (a) | 1,801 | 26,493 | ||||||
Radius Health, Inc. (a) | 7,503 | 330,357 | ||||||
Regeneron Pharmaceuticals, Inc. (a) | 18,008 | 8,853,093 | ||||||
REGENXBIO, Inc. (a) | 5,898 | 106,164 | ||||||
Repligen Corp. (a) | 8,496 | 342,134 | ||||||
Retrophin, Inc. (a) | 8,274 | 167,466 | ||||||
Sage Therapeutics, Inc. (a) | 7,284 | 580,899 | ||||||
Sangamo Therapeutics, Inc. (a) | 18,876 | 162,334 | ||||||
Sarepta Therapeutics, Inc. (a) | 13,709 | 528,893 | ||||||
Seattle Genetics, Inc. (a) | 23,036 | 1,163,318 | ||||||
Seres Therapeutics, Inc. (a) | 4,667 | 63,144 | ||||||
Spark Therapeutics, Inc. (a) | 5,388 | 382,548 | ||||||
Spectrum Pharmaceuticals, Inc. (a) | 18,637 | 139,032 | ||||||
Synergy Pharmaceuticals, Inc. (a) | 51,500 | 199,820 | ||||||
TESARO, Inc. (a) | 8,695 | 1,110,004 | ||||||
TG Therapeutics, Inc. (a) | 11,006 | 126,569 | ||||||
Ultragenyx Pharmaceutical, Inc. (a) | 9,182 | 608,950 | ||||||
United Therapeutics Corp. (a) | 10,370 | 1,331,508 | ||||||
Vanda Pharmaceuticals, Inc. (a) | 9,365 | 145,626 | ||||||
Versartis, Inc. (a) | 5,673 | 104,950 | ||||||
Vertex Pharmaceuticals, Inc. (a) | 57,223 | 8,687,596 | ||||||
XBiotech, Inc. (a) | 3,497 | 16,051 | ||||||
Xencor, Inc. (a) | 8,886 | 207,488 | ||||||
ZIOPHARM Oncology, Inc. (a) | 29,427 | 162,731 | ||||||
|
| |||||||
TOTAL BIOTECHNOLOGY | 188,213,749 | |||||||
|
| |||||||
HEALTH CARE EQUIPMENT & SUPPLIES – 20.2% |
| |||||||
Health Care Equipment – 18.3% | ||||||||
Abaxis, Inc. | 5,244 | 246,468 | ||||||
Abbott Laboratories | 398,295 | 19,588,148 | ||||||
ABIOMED, Inc. (a) | 9,550 | 1,414,259 | ||||||
Accuray, Inc. (a) | 18,372 | 78,081 | ||||||
Analogic Corp. | 2,845 | 199,719 | ||||||
AngioDynamics, Inc. (a) | 8,237 | 133,851 | ||||||
AtriCure, Inc. (a) | 7,540 | 182,694 | ||||||
Baxter International, Inc. | 111,985 | 6,772,853 | ||||||
Becton Dickinson and Co. | 52,075 | 10,487,905 | ||||||
Boston Scientific Corp. (a) | 314,104 | 8,361,448 | ||||||
Cantel Medical Corp. | 8,600 | 638,120 | ||||||
Cardiovascular Systems, Inc. (a) | 7,717 | 243,471 | ||||||
ConforMIS, Inc. (a) | 5,205 | 26,077 | ||||||
CONMED Corp. | 5,799 | 297,605 | ||||||
CR Bard, Inc. | 16,596 | 5,320,678 | ||||||
CryoLife, Inc. (a) | 6,839 | 128,231 | ||||||
Danaher Corp. | 143,730 | 11,712,558 |
Shares | Value | |||||||
DexCom, Inc. (a) | 19,474 | $ | 1,297,163 | |||||
Edwards Lifesciences Corp. (a) | 48,957 | 5,638,867 | ||||||
Entellus Medical, Inc. (a) | 2,451 | 43,015 | ||||||
Exactech, Inc. (a) | 2,425 | 70,689 | ||||||
GenMark Diagnostics, Inc. (a) | 11,697 | 138,375 | ||||||
Glaukos Corp. (a) | 3,475 | 139,625 | ||||||
Globus Medical, Inc. Class A (a) | 16,540 | 508,605 | ||||||
Heska Corp. (a) | 1,446 | 158,395 | ||||||
Hill-Rom Holdings, Inc. | 15,155 | 1,129,351 | ||||||
Hologic, Inc. (a) | 64,456 | 2,849,600 | ||||||
IDEXX Laboratories, Inc. (a) | 20,287 | 3,376,974 | ||||||
Inogen, Inc. (a) | 3,966 | 374,311 | ||||||
Insulet Corp. (a) | 13,195 | 663,840 | ||||||
Integer Holdings Corp. (a) | 6,312 | 289,090 | ||||||
Integra LifeSciences Holdings Corp. (a) | 13,869 | 688,735 | ||||||
Intuitive Surgical, Inc. (a) | 8,936 | 8,384,291 | ||||||
Invacare Corp. | 6,847 | 107,156 | ||||||
iRhythm Technologies, Inc. (a) | 2,039 | 84,333 | ||||||
K2M Group Holdings, Inc. (a) | 7,725 | 187,949 | ||||||
LeMaitre Vascular, Inc. | 3,423 | 123,468 | ||||||
LivaNova PLC (a) | 9,538 | 581,246 | ||||||
Masimo Corp. (a) | 11,076 | 1,047,790 | ||||||
Medtronic PLC | 316,481 | 26,574,910 | ||||||
Natus Medical, Inc. (a) | 7,545 | 265,584 | ||||||
Nevro Corp. (a) | 5,402 | 464,896 | ||||||
Novocure Ltd. (a) | 10,235 | 210,841 | ||||||
NuVasive, Inc. (a) | 11,664 | 767,375 | ||||||
NxStage Medical, Inc. (a) | 14,903 | 350,966 | ||||||
Orthofix International N.V. (a) | 4,159 | 180,417 | ||||||
Penumbra, Inc. (a) | 6,218 | 507,700 | ||||||
ResMed, Inc. | 32,728 | 2,523,983 | ||||||
Rockwell Medical, Inc. (a) | 11,113 | 79,236 | ||||||
STERIS PLC | 19,609 | 1,604,997 | ||||||
Stryker Corp. | 77,354 | 11,378,773 | ||||||
SurModics, Inc. (a) | 2,986 | 78,532 | ||||||
Teleflex, Inc. | 10,361 | 2,147,006 | ||||||
Varex Imaging Corp. (a) | 8,676 | 267,655 | ||||||
Varian Medical Systems, Inc. (a) | 21,546 | 2,092,547 | ||||||
Wright Medical Group N.V. (a) | 22,719 | 596,828 | ||||||
Zimmer Biomet Holdings, Inc. | 46,134 | 5,596,977 | ||||||
|
| |||||||
149,404,257 | ||||||||
|
| |||||||
Health Care Supplies – 1.9% | ||||||||
Alere, Inc. (a) | 20,054 | 1,010,521 | ||||||
Align Technology, Inc. (a) | 17,481 | 2,923,348 | ||||||
Anika Therapeutics, Inc. (a) | 3,398 | 173,842 | ||||||
Atrion Corp. | 345 | 218,109 | ||||||
Cerus Corp. (a) | 21,895 | 49,483 | ||||||
DENTSPLY SIRONA, Inc. | 53,379 | 3,311,099 | ||||||
Endologix, Inc. (a) | 16,774 | 82,025 | ||||||
Haemonetics Corp. (a) | 11,938 | 491,010 | ||||||
Halyard Health, Inc. (a) | 10,770 | 433,169 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 46 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE EQUIPMENT & SUPPLIES – continued |
| |||||||
Health Care Supplies – continued |
| |||||||
ICU Medical, Inc. (a) | 3,552 | $ | 610,589 | |||||
Lantheus Holdings, Inc. (a) | 6,447 | 118,947 | ||||||
Meridian Bioscience, Inc. | 9,529 | 129,118 | ||||||
Merit Medical Systems, Inc. (a) | 11,260 | 461,660 | ||||||
Neogen Corp. (a) | 8,762 | 577,153 | ||||||
OraSure Technologies, Inc. (a) | 12,630 | 221,530 | ||||||
Quidel Corp. (a) | 6,265 | 200,417 | ||||||
Staar Surgical Co. (a) | 6,791 | 69,608 | ||||||
The Cooper Cos., Inc. | 11,315 | 2,759,389 | ||||||
The Spectranetics Corp. (a) | 9,971 | 383,883 | ||||||
West Pharmaceutical Services, Inc. | 16,873 | 1,496,635 | ||||||
|
| |||||||
15,721,535 | ||||||||
|
| |||||||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES |
| 165,125,792 | ||||||
|
| |||||||
HEALTH CARE PROVIDERS & SERVICES – 18.6% |
| |||||||
Health Care Services – 3.0% | ||||||||
Almost Family, Inc. (a) | 2,600 | 128,570 | ||||||
Amedisys, Inc. (a) | 6,575 | 311,392 | ||||||
American Renal Associates Holdings Inc. (a) | 2,951 | 50,462 | ||||||
AMN Healthcare Services, Inc. (a) | 11,098 | 409,516 | ||||||
BioTelemetry, Inc. (a) | 7,193 | 246,001 | ||||||
Chemed Corp. | 3,734 | 737,465 | ||||||
Civitas Solutions, Inc. (a) | 3,374 | 60,226 | ||||||
Corvel Corp. (a) | 2,463 | 117,116 | ||||||
Cross Country Healthcare, Inc. (a) | 8,359 | 98,302 | ||||||
DaVita, Inc. (a) | 35,859 | 2,322,946 | ||||||
Diplomat Pharmacy, Inc. (a) | 10,770 | 170,920 | ||||||
Envision Healthcare Corp. (a) | 26,991 | 1,523,102 | ||||||
Express Scripts Holding Co. (a) | 139,558 | 8,741,913 | ||||||
Laboratory Corp. of America Holdings (a) | 23,557 | 3,743,443 | ||||||
Landauer, Inc. | 2,170 | 118,157 | ||||||
LHC Group, Inc. (a) | 3,787 | 219,267 | ||||||
MEDNAX, Inc. (a) | 21,576 | 1,013,640 | ||||||
National Research Corp. Class A | 2,136 | 62,798 | ||||||
Premier, Inc. Class A (a) | 11,525 | 402,222 | ||||||
Quest Diagnostics, Inc. | 31,664 | 3,429,528 | ||||||
Teladoc, Inc. (a) | 8,102 | 265,746 | ||||||
The Providence Service Corp. (a) | 2,687 | 138,488 | ||||||
Tivity Health, Inc. (a) | 8,024 | 318,152 | ||||||
|
| |||||||
24,629,372 | ||||||||
|
| |||||||
Health Care Distributors – 2.7% | ||||||||
Aceto Corp. | 6,735 | 113,687 | ||||||
AmerisourceBergen Corp. | 37,538 | 3,521,815 | ||||||
Cardinal Health, Inc. | 72,686 | 5,615,720 | ||||||
Henry Schein, Inc. (a) | 18,251 | 3,325,515 | ||||||
McKesson Corp. | 48,862 | 7,909,292 | ||||||
Owens & Minor, Inc. | 14,078 | 453,734 |
Shares | Value | |||||||
Patterson Cos., Inc. | 19,478 | $ | 812,622 | |||||
PharMerica Corp. (a) | 6,956 | 174,943 | ||||||
|
| |||||||
21,927,328 | ||||||||
|
| |||||||
Health Care Facilities – 1.8% | ||||||||
Acadia Healthcare Co., Inc. (a) | 17,084 | 904,256 | ||||||
Brookdale Senior Living, Inc. (a) | 42,735 | 606,837 | ||||||
Capital Senior Living Corp. (a) | 6,096 | 84,125 | ||||||
Community Health Systems, Inc. (a) | 25,862 | 184,913 | ||||||
Genesis Healthcare, Inc. (a) | 10,798 | 15,549 | ||||||
HCA Healthcare, Inc. (a) | 68,215 | 5,480,393 | ||||||
HealthSouth Corp. | 20,607 | 877,034 | ||||||
Kindred Healthcare, Inc. | 19,317 | 172,887 | ||||||
LifePoint Health, Inc. (a) | 9,260 | 550,044 | ||||||
National HealthCare Corp. | 2,464 | 160,579 | ||||||
Select Medical Holdings Corp. (a) | 24,395 | 395,199 | ||||||
Surgery Partners, Inc. (a) | 4,380 | 86,943 | ||||||
Tenet Healthcare Corp. (a) | 22,952 | 398,217 | ||||||
The Ensign Group, Inc. | 11,219 | 250,969 | ||||||
Universal Health Services, Inc. Class B | 20,632 | 2,286,645 | ||||||
US Physical Therapy, Inc. | 2,862 | 180,592 | ||||||
VCA, Inc. (a) | 18,782 | 1,738,838 | ||||||
|
| |||||||
14,374,020 | ||||||||
|
| |||||||
Managed Health Care – 11.1% | ||||||||
Aetna, Inc. | 81,018 | 12,501,888 | ||||||
Anthem, Inc. | 60,908 | 11,341,679 | ||||||
Centene Corp. (a) | 39,727 | 3,155,118 | ||||||
Cigna Corp. | 59,218 | 10,277,876 | ||||||
HealthEquity, Inc. (a) | 11,636 | 533,743 | ||||||
Humana, Inc. | 34,409 | 7,955,361 | ||||||
Magellan Health, Inc. (a) | 5,456 | 406,745 | ||||||
Molina Healthcare, Inc. (a) | 9,863 | 658,848 | ||||||
Triple-S Management Corp. | 5,426 | 83,994 | ||||||
UnitedHealth Group, Inc. | 221,896 | 42,561,872 | ||||||
WellCare Health Plans, Inc. (a) | 10,283 | 1,819,988 | ||||||
|
| |||||||
91,297,112 | ||||||||
|
| |||||||
TOTAL HEALTH CARE PROVIDERS & SERVICES |
| 152,227,832 | ||||||
|
| |||||||
HEALTH CARE TECHNOLOGY – 1.3% |
| |||||||
Health Care Technology – 1.3% | ||||||||
Allscripts Healthcare Solutions, Inc. (a) | 40,384 | 497,127 | ||||||
athenahealth, Inc. (a) | 9,095 | 1,258,021 | ||||||
Castlight Health, Inc. Class B (a) | 5,501 | 23,654 | ||||||
Cerner Corp. (a) | 68,566 | 4,413,594 | ||||||
Computer Programs & Systems, Inc. | 2,473 | 75,798 | ||||||
Cotiviti Holdings, Inc. (a) | 6,260 | 269,493 | ||||||
Evolent Health, Inc. Class A (a) | 12,116 | 299,265 | ||||||
HealthStream, Inc. (a) | 5,993 | 141,555 | ||||||
HMS Holdings Corp. (a) | 19,517 | 391,901 | ||||||
Inovalon Holdings, Inc. Class A (a) | 14,510 | 184,277 |
See accompanying notes which are an integral part of the financial statements.
47 | Annual Report |
Table of Contents
Fidelity MSCI Health Care Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE TECHNOLOGY – continued |
| |||||||
Health Care Technology – continued |
| |||||||
Medidata Solutions, Inc. (a) | 13,272 | $ | 1,019,422 | |||||
Omnicell, Inc. (a) | 8,394 | 416,342 | ||||||
Quality Systems, Inc. (a) | 10,912 | 186,595 | ||||||
Veeva Systems, Inc. Class A (a) | 24,660 | 1,572,322 | ||||||
Vocera Communications, Inc. (a) | 5,805 | 158,302 | ||||||
|
| |||||||
TOTAL HEALTH CARE TECHNOLOGY |
| 10,907,668 | ||||||
|
| |||||||
LIFE SCIENCES TOOLS & SERVICES – 5.6% |
| |||||||
Life Sciences Tools & Services – 5.6% |
| |||||||
Accelerate Diagnostics, Inc. (a) | 7,573 | 198,791 | ||||||
Agilent Technologies, Inc. | 74,189 | 4,435,760 | ||||||
Albany Molecular Research, Inc. (a) | 6,449 | 140,201 | ||||||
Bio-Rad Laboratories, Inc. Class A (a) | 4,765 | 1,122,777 | ||||||
Bio-Techne Corp. | 8,579 | 994,392 | ||||||
Bruker Corp. | 25,979 | 745,078 | ||||||
Cambrex Corp. (a) | 7,371 | 449,631 | ||||||
Charles River Laboratories International, Inc. (a) | 10,914 | 1,071,755 | ||||||
Illumina, Inc. (a) | 33,700 | 5,858,745 | ||||||
INC Research Holdings, Inc. Class A (a) | 12,405 | 682,275 | ||||||
Luminex Corp. | 8,874 | 181,296 | ||||||
Medpace Holdings, Inc. (a) | 1,970 | 54,037 | ||||||
Mettler-Toledo International, Inc. (a) | 5,975 | 3,424,153 | ||||||
NeoGenomics, Inc. (a) | 13,571 | 128,246 | ||||||
Pacific Biosciences of California, Inc. (a) | 22,598 | 73,669 | ||||||
PAREXEL International Corp. (a) | 11,753 | 1,028,623 | ||||||
Patheon N.V. (a) | 8,379 | 292,930 | ||||||
PerkinElmer, Inc. | 25,204 | 1,659,179 | ||||||
PRA Health Sciences, Inc. (a) | 9,238 | 687,307 | ||||||
Quintiles IMS Holdings Inc. (a) | 32,718 | 2,962,615 | ||||||
Thermo Fisher Scientific, Inc. | 91,017 | 15,976,214 | ||||||
VWR Corp. (a) | 21,207 | 699,831 | ||||||
Waters Corp. (a) | 18,440 | 3,198,234 | ||||||
|
| |||||||
TOTAL LIFE SCIENCES TOOLS & SERVICES |
| 46,065,739 | ||||||
|
| |||||||
PHARMACEUTICALS – 31.2% | ||||||||
Pharmaceuticals – 31.2% |
| |||||||
Aclaris Therapeutics, Inc. (a) | 4,178 | 120,326 | ||||||
Aerie Pharmaceuticals, Inc. (a) | 6,512 | 353,602 | ||||||
Akorn, Inc. (a) | 21,671 | 728,579 | ||||||
Allergan PLC | 77,268 | 19,497,034 | ||||||
Amphastar Pharmaceuticals, Inc. (a) | 8,633 | 149,178 | ||||||
ANI Pharmaceuticals, Inc. (a) | 1,984 | 96,680 | ||||||
Bristol-Myers Squibb Co. Class A | 385,553 | 21,937,966 | ||||||
Catalent, Inc. (a) | 28,838 | 1,000,679 | ||||||
Cempra, Inc. (a) | 9,694 | 38,776 | ||||||
Collegium Pharmaceutical, Inc. (a) | 4,342 | 51,974 |
Shares | Value | |||||||
Corcept Therapeutics, Inc. (a) | 19,250 | $ | 240,047 | |||||
Depomed, Inc. (a) | 14,368 | 148,134 | ||||||
Dermira, Inc. (a) | 6,986 | 192,325 | ||||||
Eli Lilly & Co. | 228,886 | 18,919,717 | ||||||
Endo International PLC (a) | 46,065 | 507,636 | ||||||
Horizon Pharma PLC (a) | 37,473 | 448,927 | ||||||
Impax Laboratories, Inc. (a) | 16,195 | 313,373 | ||||||
Innoviva, Inc. (a) | 17,360 | 238,179 | ||||||
Intersect ENT, Inc. (a) | 5,932 | 162,537 | ||||||
Intra-Cellular Therapies, Inc. (a) | 7,346 | 84,993 | ||||||
Jazz Pharmaceuticals PLC (a) | 13,816 | 2,122,276 | ||||||
Johnson & Johnson | 625,414 | 83,004,946 | ||||||
Lannett Co., Inc. (a) | 6,728 | 136,915 | ||||||
Mallinckrodt PLC (a) | 24,354 | 1,115,413 | ||||||
Merck & Co., Inc. | 635,507 | 40,596,187 | ||||||
Mylan N.V. (a) | 105,082 | 4,097,147 | ||||||
MyoKardia, Inc. (a) | 3,899 | 60,629 | ||||||
Nektar Therapeutics (a) | 35,203 | 768,481 | ||||||
Omeros Corp. (a) | 9,252 | 193,922 | ||||||
Pacira Pharmaceuticals, Inc. (a) | 8,606 | 339,937 | ||||||
Paratek Pharmaceuticals, Inc. (a) | 3,908 | 76,011 | ||||||
Perrigo Co. PLC | 29,831 | 2,234,939 | ||||||
Pfizer, Inc. | 1,371,879 | 45,491,508 | ||||||
Phibro Animal Health Corp. Class A | 4,190 | 160,058 | ||||||
Prestige Brands Holdings, Inc. (a) | 12,257 | 657,343 | ||||||
Reata Pharmaceuticals, Inc. Class A (a) | 1,895 | 55,486 | ||||||
Revance Therapeutics, Inc. (a) | 4,551 | 103,535 | ||||||
Sciclone Pharmaceuticals, Inc. (a) | 11,166 | 122,268 | ||||||
Sucampo Pharmaceuticals, Inc. Class A (a) | 5,858 | 63,559 | ||||||
Supernus Pharmaceuticals, Inc. (a) | 11,557 | 467,481 | ||||||
Teligent, Inc. (a) | 9,826 | 77,429 | ||||||
The Medicines Co. (a) | 16,280 | 625,966 | ||||||
TherapeuticsMD, Inc. (a) | 35,683 | 201,609 | ||||||
Theravance Biopharma, Inc. (a) | 9,610 | 308,769 | ||||||
WaVe Life Sciences Ltd. (a) | 2,543 | 50,479 | ||||||
Zoetis, Inc. | 113,335 | 7,085,704 | ||||||
|
| |||||||
TOTAL PHARMACEUTICALS | 255,448,659 | |||||||
|
| |||||||
TOTAL COMMON STOCKS | 817,989,439 | |||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 48 |
Table of Contents
Money Market Funds – 0.1% | ||||||||
Shares | Value | |||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 0.90% (b) | 829,972 | $ | 829,972 | |||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 100.0% |
| 818,819,411 | ||||||
NET OTHER ASSETS (LIABILITIES) – (0.0%) |
| (109,689 | ) | |||||
|
| |||||||
NET ASSETS – 100.0% | $ | 818,709,722 | ||||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2017, 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 | $ | 817,989,439 | $ | 817,885,063 | $ | — | $ | 104,376 | ||||||||
Money Market Funds | 829,972 | 829,972 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 818,819,411 | $ | 818,715,035 | $ | — | $ | 104,376 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
49 | Annual Report |
Table of Contents
Fidelity MSCI Industrials Index ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
AEROSPACE & DEFENSE – 22.4% | ||||||||
Aerospace & Defense – 22.4% | ||||||||
AAR Corp. | 4,332 | $ | 162,017 | |||||
Aerojet Rocketdyne Holdings, Inc. (a) | 8,016 | 187,975 | ||||||
Aerovironment, Inc. (a) | 2,830 | 106,946 | ||||||
Arconic, Inc. | 53,177 | 1,318,258 | ||||||
Astronics Corp. (a) | 2,880 | 84,240 | ||||||
Axon Enterprise, Inc. (a) | 7,073 | 173,925 | ||||||
BWX Technologies, Inc. | 12,024 | 633,424 | ||||||
Cubic Corp. | 3,469 | 165,298 | ||||||
Curtiss-Wright Corp. | 5,696 | 549,208 | ||||||
DigitalGlobe, Inc. (a) | 8,377 | 292,357 | ||||||
Engility Holdings, Inc. (a) | 2,671 | 77,913 | ||||||
Esterline Technologies Corp. (a) | 3,592 | 346,628 | ||||||
General Dynamics Corp. | 34,646 | 6,802,049 | ||||||
HEICO Corp. | 3,634 | 292,064 | ||||||
HEICO Corp. Class A | 6,473 | 459,907 | ||||||
Hexcel Corp. | 12,315 | 630,158 | ||||||
Huntington Ingalls Industries, Inc. | 6,204 | 1,278,706 | ||||||
KLX, Inc. (a) | 7,110 | 369,151 | ||||||
Kratos Defense & Security Solutions, Inc. (a) | 9,675 | 106,473 | ||||||
L3 Technologies, Inc. | 10,479 | 1,833,511 | ||||||
Lockheed Martin Corp. | 35,178 | 10,276,549 | ||||||
Mercury Systems, Inc. (a) | 6,447 | 283,088 | ||||||
Moog, Inc. Class A (a) | 4,328 | 321,657 | ||||||
National Presto Industries, Inc. | 666 | 75,325 | ||||||
Northrop Grumman Corp. | 22,332 | 5,876,219 | ||||||
Orbital ATK, Inc. | 7,734 | 790,260 | ||||||
Raytheon Co. | 39,432 | 6,773,235 | ||||||
Rockwell Collins, Inc. | 21,856 | 2,328,320 | ||||||
Spirit AeroSystems Holdings, Inc. Class A | 16,346 | 987,789 | ||||||
Teledyne Technologies, Inc. (a) | 4,470 | 609,440 | ||||||
Textron, Inc. | 36,375 | 1,787,104 | ||||||
The Boeing Co. | 78,339 | 18,994,074 | ||||||
The KEYW Holding Corp. (a) | 5,920 | 52,274 | ||||||
TransDigm Group, Inc. | 7,116 | 2,007,708 | ||||||
Triumph Group, Inc. | 6,680 | 171,008 | ||||||
United Technologies Corp. | 103,073 | 12,221,366 | ||||||
Wesco Aircraft Holdings, Inc. (a) | 7,356 | 79,812 | ||||||
|
| |||||||
TOTAL AEROSPACE & DEFENSE | 79,505,436 | |||||||
|
| |||||||
AIR FREIGHT & LOGISTICS – 6.1% |
| |||||||
Air Freight & Logistics – 6.1% | ||||||||
Air Transport Services Group, Inc. (a) | 2,030 | 49,451 | ||||||
Atlas Air Worldwide Holdings, Inc. (a) | 812 | 48,233 | ||||||
CH Robinson Worldwide, Inc. | 19,040 | 1,249,024 | ||||||
Echo Global Logistics, Inc. (a) | 3,486 | 47,584 | ||||||
Expeditors International of Washington, Inc. | 24,269 | 1,428,959 |
Shares | Value | |||||||
FedEx Corp. | 34,088 | $ | 7,091,327 | |||||
Forward Air Corp. | 4,085 | 211,725 | ||||||
Hub Group, Inc. Class A (a) | 4,458 | 151,795 | ||||||
Park-Ohio Holdings Corp. | 1,053 | 41,857 | ||||||
United Parcel Service, Inc. Class B | 92,795 | 10,234,360 | ||||||
XPO Logistics, Inc. (a) | 14,974 | 900,087 | ||||||
|
| |||||||
TOTAL AIR FREIGHT & LOGISTICS | 21,454,402 | |||||||
|
| |||||||
AIRLINES – 1.2% | ||||||||
Airlines – 1.2% | ||||||||
Allegiant Travel Co. | 559 | 72,251 | ||||||
American Airlines Group, Inc. | 16,939 | 854,403 | ||||||
Delta Air Lines, Inc. | 24,622 | 1,215,342 | ||||||
Hawaiian Holdings, Inc. (a) | 1,808 | 74,851 | ||||||
SkyWest, Inc. | 1,786 | 65,189 | ||||||
Southwest Airlines Co. | 20,731 | 1,150,778 | ||||||
Spirit Airlines, Inc. (a) | 2,304 | 89,511 | ||||||
United Continental Holdings, Inc. (a) | 10,571 | 715,445 | ||||||
|
| |||||||
TOTAL AIRLINES | 4,237,770 | |||||||
|
| |||||||
BUILDING PRODUCTS – 4.4% | ||||||||
Building Products – 4.4% | ||||||||
AAON, Inc. | 5,672 | 191,714 | ||||||
Advanced Drainage Systems, Inc. | 5,187 | 106,593 | ||||||
Allegion PLC | 12,878 | 1,046,209 | ||||||
American Woodmark Corp. (a) | 1,958 | 192,178 | ||||||
AO Smith Corp. | 19,765 | 1,058,416 | ||||||
Apogee Enterprises, Inc. | 3,886 | 202,422 | ||||||
Armstrong Flooring, Inc. (a) | 2,837 | 49,250 | ||||||
Armstrong World Industries, Inc. (a) | 5,428 | 263,529 | ||||||
Builders FirstSource, Inc. (a) | 13,455 | 210,840 | ||||||
Continental Building Products, Inc. (a) | 5,312 | 116,864 | ||||||
CSW Industrials, Inc. (a) | 2,170 | 84,738 | ||||||
Fortune Brands Home & Security, Inc. | 20,793 | 1,365,476 | ||||||
Gibraltar Industries, Inc. (a) | 3,996 | 119,281 | ||||||
Griffon Corp. | 4,142 | 84,911 | ||||||
Insteel Industries, Inc. | 2,413 | 63,510 | ||||||
JELD-WEN Holding, Inc. (a) | 6,365 | 207,817 | ||||||
Johnson Controls International PLC | 126,384 | 4,922,657 | ||||||
Lennox International, Inc. | 5,206 | 890,226 | ||||||
Masco Corp. | 43,161 | 1,645,729 | ||||||
Masonite International Corp. (a) | 4,013 | 311,609 | ||||||
NCI Building Systems, Inc. (a) | 5,729 | 103,122 | ||||||
Owens Corning | 15,104 | 1,012,723 | ||||||
Patrick Industries, Inc. (a) | 2,126 | 161,789 | ||||||
PGT Innovations, Inc. (a) | 6,642 | 86,346 | ||||||
Ply Gem Holdings, Inc. (a) | 3,266 | 57,155 | ||||||
Quanex Building Products Corp. | 4,090 | 87,935 | ||||||
Simpson Manufacturing Co., Inc. | 5,449 | 241,336 | ||||||
Trex Co., Inc. (a) | 3,933 | 295,801 | ||||||
Universal Forest Products, Inc. | 2,736 | 229,414 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 50 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
BUILDING PRODUCTS – continued | ||||||||
Building Products – continued | ||||||||
USG Corp. (a) | 12,832 | $ | 346,977 | |||||
|
| |||||||
TOTAL BUILDING PRODUCTS | 15,756,567 | |||||||
|
| |||||||
COMMERCIAL SERVICES & SUPPLIES – 5.9% |
| |||||||
Commercial Printing – 0.4% | ||||||||
Brady Corp. Class A | 6,440 | 213,808 | ||||||
Deluxe Corp. | 6,536 | 471,899 | ||||||
Ennis, Inc. | 3,475 | 66,894 | ||||||
InnerWorkings, Inc. (a) | 6,653 | 78,439 | ||||||
LSC Communications, Inc. | 4,401 | 94,093 | ||||||
Multi-Color Corp. | 1,942 | 156,331 | ||||||
Quad/Graphics, Inc. | 4,101 | 92,109 | ||||||
RR Donnelley & Sons Co. | 9,253 | 114,367 | ||||||
|
| |||||||
1,287,940 | ||||||||
|
| |||||||
Diversified Support Services – 1.4% | ||||||||
Cintas Corp. | 12,029 | 1,622,111 | ||||||
Copart, Inc. (a) | 27,722 | 872,966 | ||||||
Healthcare Services Group, Inc. | 9,822 | 513,199 | ||||||
KAR Auction Services, Inc. | 18,378 | 772,611 | ||||||
Matthews International Corp. Class A | 4,315 | 282,848 | ||||||
McGrath RentCorp | 3,027 | 107,549 | ||||||
Mobile Mini, Inc. | 6,011 | 185,139 | ||||||
UniFirst Corp. | 2,064 | 293,604 | ||||||
Viad Corp. | 2,755 | 147,530 | ||||||
VSE Corp. | 1,161 | 60,198 | ||||||
|
| |||||||
4,857,755 | ||||||||
|
| |||||||
Environmental & Facilities Services – 3.4% |
| |||||||
ABM Industries, Inc. | 7,484 | 333,936 | ||||||
Advanced Disposal Services, Inc. (a) | 4,153 | 100,420 | ||||||
Casella Waste Systems, Inc. Class A (a) | 5,190 | 87,088 | ||||||
Clean Harbors, Inc. (a) | 7,336 | 416,685 | ||||||
Covanta Holding Corp. | 15,844 | 239,244 | ||||||
Republic Services, Inc. | 31,962 | 2,052,600 | ||||||
Rollins, Inc. | 13,194 | 572,752 | ||||||
SP Plus Corp. (a) | 3,030 | 99,081 | ||||||
Stericycle, Inc. (a) | 11,429 | 880,947 | ||||||
Team, Inc. (a) | 3,855 | 55,319 | ||||||
Tetra Tech, Inc. | 7,743 | 367,405 | ||||||
US Ecology, Inc. | 2,937 | 152,430 | ||||||
Waste Connections, Inc. | 35,429 | 2,302,177 | ||||||
Waste Management, Inc. | 59,200 | 4,448,880 | ||||||
|
| |||||||
12,108,964 | ||||||||
|
| |||||||
Office Services & Supplies – 0.6% | ||||||||
ACCO Brands Corp. (a) | 14,366 | 167,364 | ||||||
Essendant, Inc. | 5,027 | 62,737 | ||||||
Herman Miller, Inc. | 8,042 | 270,814 | ||||||
HNI Corp. | 5,975 | 225,556 | ||||||
Interface, Inc. | 8,737 | 165,566 |
Shares | Value | |||||||
Kimball International, Inc. Class B | 4,980 | $ | 83,017 | |||||
Knoll, Inc. | 6,530 | 126,421 | ||||||
MSA Safety, Inc. | 4,557 | 365,289 | ||||||
Pitney Bowes, Inc. | 25,107 | 395,184 | ||||||
Steelcase, Inc. Class A | 11,573 | 157,972 | ||||||
West Corp. | 6,209 | 145,104 | ||||||
|
| |||||||
2,165,024 | ||||||||
|
| |||||||
Security & Alarm Services – 0.1% | ||||||||
The Brink’s Co. | 6,073 | 474,605 | ||||||
|
| |||||||
TOTAL COMMERCIAL SERVICES & SUPPLIES |
| 20,894,288 | ||||||
|
| |||||||
CONSTRUCTION & ENGINEERING – 1.8% |
| |||||||
Construction & Engineering – 1.8% |
| |||||||
AECOM (a) | 20,944 | 668,114 | ||||||
Aegion Corp. (a) | 4,594 | 109,980 | ||||||
Argan, Inc. | 1,960 | 126,322 | ||||||
Chicago Bridge & Iron Co. N.V. | 13,639 | 255,595 | ||||||
Comfort Systems USA, Inc. | 5,044 | 167,965 | ||||||
Dycom Industries, Inc. (a) | 4,224 | 382,694 | ||||||
EMCOR Group, Inc. | 8,020 | 541,350 | ||||||
Fluor Corp. | 18,722 | 813,096 | ||||||
Granite Construction, Inc. | 5,324 | 260,982 | ||||||
Great Lakes Dredge & Dock Corp. (a) | 7,944 | 31,379 | ||||||
Jacobs Engineering Group, Inc. | 16,273 | 857,913 | ||||||
KBR, Inc. | 19,125 | 285,345 | ||||||
MasTec, Inc. (a) | 8,913 | 411,781 | ||||||
MYR Group, Inc. (a) | 2,155 | 68,551 | ||||||
Primoris Services Corp. | 5,495 | 136,935 | ||||||
Quanta Services, Inc. (a) | 20,393 | 687,856 | ||||||
Tutor Perini Corp. (a) | 5,263 | 139,996 | ||||||
Valmont Industries, Inc. | 3,026 | 462,070 | ||||||
|
| |||||||
TOTAL CONSTRUCTION & ENGINEERING |
| 6,407,924 | ||||||
|
| |||||||
ELECTRICAL EQUIPMENT – 5.6% | ||||||||
Electrical Components & Equipment – 5.5% |
| |||||||
Acuity Brands, Inc. | 5,939 | 1,203,538 | ||||||
AMETEK, Inc. | 30,901 | 1,902,884 | ||||||
Atkore International Group, Inc. (a) | 4,225 | 87,965 | ||||||
Eaton Corp. PLC | 60,546 | 4,737,724 | ||||||
Emerson Electric Co. | 86,849 | 5,177,069 | ||||||
Encore Wire Corp. | 2,797 | 124,746 | ||||||
EnerSys | 5,840 | 422,057 | ||||||
Generac Holdings, Inc. (a) | 8,544 | 307,328 | ||||||
General Cable Corp. | 6,735 | 129,985 | ||||||
Hubbell, Inc. | 7,099 | 843,290 | ||||||
Plug Power, Inc. (a) | 26,122 | 59,036 | ||||||
Powell Industries, Inc. | 1,230 | 39,176 | ||||||
Regal-Beloit Corp. | 6,039 | 503,351 | ||||||
Rockwell Automation, Inc. | 17,314 | 2,857,329 | ||||||
Sensata Technologies Holding N.V. (a) | 23,033 | 1,039,249 |
See accompanying notes which are an integral part of the financial statements.
51 | Annual Report |
Table of Contents
Fidelity MSCI Industrials Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
ELECTRICAL EQUIPMENT – continued |
| |||||||
Electrical Components & Equipment – continued |
| |||||||
Sunrun, Inc. (a) | 9,093 | $ | 68,470 | |||||
Thermon Group Holdings, Inc. (a) | 4,259 | 76,108 | ||||||
Vicor Corp. (a) | 2,437 | 43,257 | ||||||
|
| |||||||
19,622,562 | ||||||||
|
| |||||||
Heavy Electrical Equipment – 0.1% |
| |||||||
AZZ, Inc. | 3,494 | 177,146 | ||||||
Babcock & Wilcox Enterprises, Inc. (a) | 6,559 | 68,869 | ||||||
|
| |||||||
246,015 | ||||||||
|
| |||||||
TOTAL ELECTRICAL EQUIPMENT |
| 19,868,577 | ||||||
|
| |||||||
INDUSTRIAL CONGLOMERATES – 18.0% |
| |||||||
Industrial Conglomerates – 18.0% |
| |||||||
3M Co. | 80,270 | 16,147,916 | ||||||
Carlisle Cos., Inc. | 8,703 | 849,326 | ||||||
General Electric Co. | 1,174,672 | 30,083,350 | ||||||
Honeywell International, Inc. | 97,360 | 13,252,643 | ||||||
Raven Industries, Inc. | 4,818 | 165,739 | ||||||
Roper Industries, Inc. | 13,707 | 3,186,329 | ||||||
|
| |||||||
TOTAL INDUSTRIAL CONGLOMERATES |
| 63,685,303 | ||||||
|
| |||||||
MACHINERY – 18.9% | ||||||||
Agricultural & Farm Machinery – 1.8% |
| |||||||
AGCO Corp. | 8,652 | 624,155 | ||||||
Deere & Co. | 36,425 | 4,672,599 | ||||||
Lindsay Corp. | 1,431 | 131,180 | ||||||
The Toro Co. | 14,459 | 1,027,891 | ||||||
Titan International, Inc. | 6,243 | 79,598 | ||||||
|
| |||||||
6,535,423 | ||||||||
|
| |||||||
Construction & Farm Machinery & Heavy Trucks – 6.1% |
| |||||||
Alamo Group, Inc. | 1,294 | 120,355 | ||||||
Allison Transmission Holdings, Inc. | 19,719 | 745,378 | ||||||
American Railcar Industries, Inc. | 1,026 | 37,726 | ||||||
Astec Industries, Inc. | 2,639 | 132,662 | ||||||
Caterpillar, Inc. | 78,962 | 8,997,720 | ||||||
Cummins, Inc. | 21,515 | 3,612,368 | ||||||
Douglas Dynamics, Inc. | 3,028 | 96,290 | ||||||
Federal Signal Corp. | 8,109 | 150,016 | ||||||
Meritor, Inc. (a) | 11,356 | 196,232 | ||||||
Navistar International Corp. (a) | 6,047 | 186,066 | ||||||
Oshkosh Corp. | 10,016 | 689,702 | ||||||
PACCAR, Inc. | 47,243 | 3,233,783 | ||||||
REV Group, Inc. | 1,716 | 45,903 | ||||||
Terex Corp. | 14,272 | 561,889 | ||||||
The Greenbrier Cos., Inc. | 3,791 | 170,595 | ||||||
The Manitowoc Co., Inc. (a) | 17,796 | 101,615 | ||||||
Trinity Industries, Inc. | 18,455 | 505,852 | ||||||
Wabash National Corp. | 8,060 | 153,785 | ||||||
WABCO Holdings, Inc. (a) | 6,961 | 957,625 |
Shares | Value | |||||||
Wabtec Corp. | 11,596 | $ | 873,875 | |||||
|
| |||||||
21,569,437 | ||||||||
|
| |||||||
Industrial Machinery – 11.0% | ||||||||
Actuant Corp. Class A | 7,884 | 190,793 | ||||||
Albany International Corp. Class A | 3,855 | 206,242 | ||||||
Altra Industrial Motion Corp. | 3,930 | 175,082 | ||||||
Barnes Group, Inc. | 6,889 | 414,580 | ||||||
Briggs & Stratton Corp. | 5,682 | 133,072 | ||||||
Chart Industries, Inc. (a) | 3,917 | 133,178 | ||||||
CIRCOR International, Inc. | 1,900 | 95,114 | ||||||
Colfax Corp. (a) | 12,444 | 513,688 | ||||||
Columbus McKinnon Corp. | 2,581 | 66,590 | ||||||
Crane Co. | 6,369 | 480,859 | ||||||
Donaldson Co., Inc. | 16,861 | 800,729 | ||||||
Dover Corp. | 20,943 | 1,759,212 | ||||||
Energy Recovery, Inc. (a) | 4,607 | 35,013 | ||||||
EnPro Industries, Inc. | 2,871 | 221,124 | ||||||
ESCO Technologies, Inc. | 3,462 | 213,605 | ||||||
Flowserve Corp. | 17,531 | 721,050 | ||||||
Fortive Corp. | 41,927 | 2,714,354 | ||||||
Franklin Electric Co., Inc. | 5,250 | 212,100 | ||||||
Global Brass & Copper Holdings, Inc. | 2,858 | 91,599 | ||||||
Graco, Inc. | 7,552 | 876,334 | ||||||
Harsco Corp. (a) | 10,737 | 165,887 | ||||||
Hillenbrand, Inc. | 8,589 | 309,204 | ||||||
Hyster-Yale Materials Handling, Inc. | 1,088 | 77,096 | ||||||
IDEX Corp. | 10,294 | 1,199,663 | ||||||
Illinois Tool Works, Inc. | 41,992 | 5,908,694 | ||||||
Ingersoll-Rand PLC | 34,939 | 3,070,439 | ||||||
ITT, Inc. | 11,896 | 487,736 | ||||||
John Bean Technologies Corp. | 4,205 | 388,542 | ||||||
Kadant, Inc. | 1,442 | 112,548 | ||||||
Kennametal, Inc. | 10,814 | 399,037 | ||||||
Lincoln Electric Holdings, Inc. | 7,947 | 693,455 | ||||||
Lydall, Inc. (a) | 2,342 | 115,929 | ||||||
Milacron Holdings Corp. (a) | 6,496 | 116,798 | ||||||
Mueller Industries, Inc. | 7,322 | 230,643 | ||||||
Mueller Water Products, Inc. Class A | 21,738 | 252,161 | ||||||
NN, Inc. | 3,441 | 95,316 | ||||||
Nordson Corp. | 6,977 | 886,079 | ||||||
Omega Flex, Inc. | 408 | 24,496 | ||||||
Parker Hannifin Corp. | 17,946 | 2,978,677 | ||||||
Pentair PLC | 23,262 | 1,467,134 | ||||||
Proto Labs, Inc. (a) | 3,404 | 251,556 | ||||||
RBC Bearings, Inc. (a) | 3,236 | 334,408 | ||||||
Rexnord Corp. (a) | 13,949 | 323,059 | ||||||
Snap-on, Inc. | 7,819 | 1,205,690 | ||||||
SPX Corp. (a) | 5,659 | 155,736 | ||||||
SPX FLOW, Inc. (a) | 5,731 | 203,221 | ||||||
Standex International Corp. | 1,710 | 164,075 | ||||||
Stanley Black & Decker, Inc. | 20,543 | 2,890,195 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 52 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
MACHINERY – continued |
| |||||||
Industrial Machinery – continued |
| |||||||
Sun Hydraulics Corp. | 3,266 | $ | 135,082 | |||||
Tennant Co. | 2,376 | 179,507 | ||||||
The Gorman-Rupp Co. | 2,608 | 78,814 | ||||||
The Middleby Corp. (a) | 7,733 | 1,010,548 | ||||||
The Timken Co. | 9,431 | 429,110 | ||||||
Trimas Corp. (a) | 6,089 | 148,267 | ||||||
Watts Water Technologies, Inc. Class A | 3,543 | 228,169 | ||||||
Welbilt, Inc. (a) | 17,797 | 346,864 | ||||||
Woodward, Inc. | 7,473 | 522,662 | ||||||
Xylem, Inc. | 24,185 | 1,372,015 | ||||||
|
| |||||||
39,012,830 | ||||||||
|
| |||||||
TOTAL MACHINERY | 67,117,690 | |||||||
|
| |||||||
MARINE – 0.0% | ||||||||
Marine – 0.0% | ||||||||
Kirby Corp. (a) | 1,815 | 110,533 | ||||||
Matson, Inc. | 1,434 | 40,439 | ||||||
|
| |||||||
TOTAL MARINE | 150,972 | |||||||
|
| |||||||
PROFESSIONAL SERVICES – 4.2% | ||||||||
Human Resource & Employment Services – 1.0% |
| |||||||
GP Strategies Corp. (a) | 1,795 | 51,427 | ||||||
Heidrick & Struggles International, Inc. | 2,540 | 45,974 | ||||||
Insperity, Inc. | 2,548 | 192,374 | ||||||
Kelly Services, Inc. Class A | 4,230 | 94,202 | ||||||
Kforce, Inc. | 3,295 | 61,617 | ||||||
Korn/Ferry International | 7,350 | 245,857 | ||||||
ManpowerGroup, Inc. | 9,114 | 976,565 | ||||||
On Assignment, Inc. (a) | 6,795 | 334,654 | ||||||
Robert Half International, Inc. | 17,177 | 777,259 | ||||||
TriNet Group, Inc. (a) | 5,527 | 193,445 | ||||||
TrueBlue, Inc. (a) | 5,683 | 145,201 | ||||||
WageWorks, Inc. (a) | 5,316 | 346,603 | ||||||
|
| |||||||
3,465,178 | ||||||||
|
| |||||||
Research & Consulting Services – 3.2% |
| |||||||
CBIZ, Inc. (a) | 6,976 | 103,594 | ||||||
Equifax, Inc. | 16,137 | 2,346,965 | ||||||
Exponent, Inc. | 3,459 | 225,527 | ||||||
FTI Consulting, Inc. (a) | 5,536 | 181,636 | ||||||
Huron Consulting Group, Inc. (a) | 2,939 | 104,334 | ||||||
ICF International, Inc. (a) | 2,566 | 116,111 | ||||||
IHS Markit Ltd. (a) | 49,778 | 2,322,144 | ||||||
Mistras Group, Inc. (a) | 2,412 | 48,602 | ||||||
Navigant Consulting, Inc. (a) | 6,332 | 107,201 | ||||||
Nielsen Holdings PLC | 48,148 | 2,070,845 | ||||||
Resources Connection, Inc. | 3,699 | 49,382 | ||||||
RPX Corp. (a) | 5,945 | 81,268 |
Shares | Value | |||||||
The Advisory Board Co. (a) | 5,398 | $ | 303,368 | |||||
The Dun & Bradstreet Corp. | 4,953 | 548,594 | ||||||
TransUnion (a) | 16,902 | 774,619 | ||||||
Verisk Analytics, Inc. (a) | 21,282 | 1,857,067 | ||||||
|
| |||||||
11,241,257 | ||||||||
|
| |||||||
TOTAL PROFESSIONAL SERVICES | 14,706,435 | |||||||
|
| |||||||
ROAD & RAIL – 8.2% | ||||||||
Railroads – 6.7% | ||||||||
CSX Corp. | 124,733 | 6,154,326 | ||||||
Genesee & Wyoming, Inc. Class A (a) | 8,260 | 538,222 | ||||||
Kansas City Southern | 14,369 | 1,482,737 | ||||||
Norfolk Southern Corp. | 39,119 | 4,404,017 | ||||||
Union Pacific Corp. | 109,566 | 11,280,915 | ||||||
|
| |||||||
23,860,217 | ||||||||
|
| |||||||
Trucking – 1.5% | ||||||||
AMERCO | 930 | 361,361 | ||||||
ArcBest Corp. | 3,248 | 90,294 | ||||||
Avis Budget Group, Inc. (a) | 10,401 | 320,143 | ||||||
Covenant Transportation Group, Inc. Class A (a) | 1,626 | 30,487 | ||||||
Heartland Express, Inc. | 6,107 | 129,041 | ||||||
Hertz Global Holdings, Inc. (a) | 6,664 | 91,097 | ||||||
JB Hunt Transport Services, Inc. | 11,969 | 1,085,708 | ||||||
Knight Transportation, Inc. | 9,166 | 326,768 | ||||||
Landstar System, Inc. | 5,613 | 466,721 | ||||||
Marten Transport Ltd. | 5,446 | 86,864 | ||||||
Old Dominion Freight Line, Inc. | 8,890 | 852,640 | ||||||
Roadrunner Transportation Systems, Inc. (a) | 4,081 | 28,485 | ||||||
Ryder System, Inc. | 7,201 | 523,945 | ||||||
Saia, Inc. (a) | 3,385 | 183,975 | ||||||
Swift Transportation Co. (a) | 10,638 | 271,269 | ||||||
Universal Truckload Services, Inc. | 1,274 | 18,537 | ||||||
Werner Enterprises, Inc. | 6,245 | 185,164 | ||||||
YRC Worldwide, Inc. (a) | 4,480 | 59,539 | ||||||
|
| |||||||
5,112,038 | ||||||||
|
| |||||||
TOTAL ROAD & RAIL | 28,972,255 | |||||||
|
| |||||||
TRADING COMPANIES & DISTRIBUTORS – 3.0% |
| |||||||
Trading Companies & Distributors – 3.0% |
| |||||||
Air Lease Corp. | 13,171 | 521,308 | ||||||
Aircastle Ltd. | 7,390 | 173,961 | ||||||
Applied Industrial Technologies, Inc. | 5,254 | 296,851 | ||||||
Beacon Roofing Supply, Inc. (a) | 8,095 | 371,803 | ||||||
BMC Stock Holdings, Inc. (a) | 8,011 | 176,242 | ||||||
DXP Enterprises, Inc. (a) | 2,205 | 63,041 | ||||||
Fastenal Co. | 38,963 | 1,673,850 | ||||||
Foundation Building Materials, Inc. (a) | 2,022 | 24,385 | ||||||
GATX Corp. | 5,082 | 314,220 |
See accompanying notes which are an integral part of the financial statements.
53 | Annual Report |
Table of Contents
Fidelity MSCI Industrials Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
TRADING COMPANIES & DISTRIBUTORS – continued |
| |||||||
Trading Companies & Distributors – continued |
| |||||||
GMS, Inc. (a) | 3,868 | $ | 116,117 | |||||
H&E Equipment Services, Inc. | 4,267 | 96,306 | ||||||
HD Supply Holdings, Inc. (a) | 27,181 | 883,111 | ||||||
Herc Holdings, Inc. (a) | 2,854 | 129,515 | ||||||
Kaman Corp. | 3,096 | 158,268 | ||||||
MRC Global, Inc. (a) | 12,801 | 209,168 | ||||||
MSC Industrial Direct Co., Inc. Class A | 6,019 | 428,613 | ||||||
Neff Corp. Class A (a) | 1,135 | 23,835 | ||||||
Nexeo Solutions, Inc. (a) | 3,587 | 29,880 | ||||||
NOW, Inc. (a) | 14,556 | 231,877 | ||||||
Rush Enterprises, Inc. Class A (a) | 4,024 | 173,555 | ||||||
Rush Enterprises, Inc. Class B (a) | 620 | 25,222 | ||||||
SiteOne Landscape Supply, Inc. (a) | 5,349 | 280,823 | ||||||
Titan Machinery, Inc. (a) | 2,411 | 43,036 | ||||||
Triton International Ltd. | 6,029 | 217,406 | ||||||
United Rentals, Inc. (a) | 11,370 | 1,352,575 | ||||||
Univar, Inc. (a) | 14,068 | 436,671 | ||||||
Veritiv Corp. (a) | 1,574 | 58,474 | ||||||
Watsco, Inc. | 4,087 | 616,197 | ||||||
WESCO International, Inc. (a) | 6,562 | 336,302 | ||||||
WW Grainger, Inc. | 7,531 | 1,255,719 | ||||||
|
| |||||||
TOTAL TRADING COMPANIES & DISTRIBUTORS |
| 10,718,331 | ||||||
|
|
Shares | Value | |||||||
TRANSPORTATION INFRASTRUCTURE – 0.2% |
| |||||||
Airport Services – 0.2% | ||||||||
Macquarie Infrastructure Corp. | 10,522 | $ | 797,673 | |||||
|
| |||||||
TOTAL COMMON STOCKS | 354,273,623 | |||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 0.90% (b) | 193,352 | 193,352 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 100.0% |
| 354,466,975 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.0% |
| 118,532 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $ | 354,585,507 | ||||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Annual Report | 54 |
Table of Contents
Fidelity MSCI Information Technology Index ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
COMMUNICATIONS EQUIPMENT – 5.0% |
| |||||||
Communications Equipment – 5.0% |
| |||||||
Acacia Communications, Inc. (a) | 3,093 | $ | 135,381 | |||||
ADTRAN, Inc. | 8,556 | 200,638 | ||||||
Applied Optoelectronics, Inc. (a) | 2,903 | 283,013 | ||||||
Arista Networks, Inc. (a) | 8,297 | 1,238,659 | ||||||
ARRIS International PLC (a) | 32,624 | 912,167 | ||||||
Brocade Communications Systems, Inc. | 73,417 | 927,257 | ||||||
CalAmp Corp. (a) | 6,361 | 121,495 | ||||||
Calix, Inc. (a) | 7,386 | 50,594 | ||||||
Ciena Corp. (a) | 25,343 | 652,582 | ||||||
Cisco Systems, Inc. | 898,101 | 28,245,276 | ||||||
CommScope Holding Co., Inc. (a) | 35,005 | 1,287,484 | ||||||
Comtech Telecommunications Corp. | 4,058 | 73,044 | ||||||
EchoStar Corp. Class A (a) | 8,501 | 516,266 | ||||||
Extreme Networks, Inc. (a) | 19,539 | 171,748 | ||||||
F5 Networks, Inc. (a) | 11,652 | 1,406,979 | ||||||
Finisar Corp. (a) | 19,825 | 539,637 | ||||||
Harmonic, Inc. (a) | 13,511 | 55,395 | ||||||
Harris Corp. | 22,288 | 2,551,307 | ||||||
Infinera Corp. (a) | 26,455 | 310,317 | ||||||
InterDigital, Inc. | 6,186 | 450,650 | ||||||
Juniper Networks, Inc. | 68,692 | 1,919,941 | ||||||
Lumentum Holdings, Inc. (a) | 11,020 | 689,852 | ||||||
Mitel Networks Corp. (a) | 17,202 | 146,561 | ||||||
Motorola Solutions, Inc. | 29,506 | 2,675,604 | ||||||
NETGEAR, Inc. (a) | 6,004 | 287,592 | ||||||
Netscout Systems, Inc. (a) | 15,527 | 535,682 | ||||||
Oclaro, Inc. (a) | 29,536 | 288,862 | ||||||
Palo Alto Networks, Inc. (a) | 16,483 | 2,172,130 | ||||||
Plantronics, Inc. | 5,933 | 268,053 | ||||||
Quantenna Communications, Inc. (a) | 1,469 | 29,689 | ||||||
ShoreTel, Inc. (a) | 11,712 | 87,254 | ||||||
Sonus Networks, Inc. (a) | 8,633 | 58,963 | ||||||
Ubiquiti Networks, Inc. (a) | 5,103 | 278,114 | ||||||
ViaSat, Inc. (a) | 9,881 | 653,035 | ||||||
Viavi Solutions, Inc. (a) | 41,401 | 454,169 | ||||||
|
| |||||||
TOTAL COMMUNICATIONS EQUIPMENT |
| 50,675,390 | ||||||
|
| |||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & |
| |||||||
Electronic Components – 1.3% |
| |||||||
Amphenol Corp. Class A | 55,144 | 4,225,133 | ||||||
AVX Corp. | 9,208 | 164,547 | ||||||
Belden, Inc. | 7,580 | 545,305 | ||||||
Corning, Inc. | 166,355 | 4,847,585 | ||||||
Dolby Laboratories, Inc. Class A | 10,334 | 534,785 | ||||||
II-VI, Inc. (a) | 9,984 | 380,391 | ||||||
Knowles Corp. (a) | 15,886 | 240,673 | ||||||
Littelfuse, Inc. | 4,078 | 734,774 | ||||||
Rogers Corp. (a) | 3,224 | 380,335 | ||||||
Universal Display Corp. | 7,617 | 918,610 |
Shares | Value | |||||||
Vishay Intertechnology, Inc. | 24,111 | $ | 430,381 | |||||
|
| |||||||
13,402,519 | ||||||||
|
| |||||||
Electronic Equipment & Instruments – 0.9% |
| |||||||
Badger Meter, Inc. | 5,337 | 241,499 | ||||||
Cognex Corp. | 15,577 | 1,480,750 | ||||||
Coherent, Inc. (a) | 4,397 | 1,165,205 | ||||||
Daktronics, Inc. | 6,428 | 62,866 | ||||||
FARO Technologies, Inc. (a) | 3,105 | 122,647 | ||||||
Fitbit, Inc. Class A (a) | 25,745 | 132,844 | ||||||
FLIR Systems, Inc. | 24,443 | 912,213 | ||||||
Itron, Inc. (a) | 6,141 | 448,293 | ||||||
Keysight Technologies, Inc. (a) | 33,337 | 1,386,486 | ||||||
Mesa Laboratories, Inc. | 591 | 85,417 | ||||||
MTS Systems Corp. | 3,039 | 160,155 | ||||||
National Instruments Corp. | 21,048 | 865,915 | ||||||
Novanta, Inc. (a) | 5,832 | 215,201 | ||||||
OSI Systems, Inc. (a) | 3,214 | 257,024 | ||||||
VeriFone Systems, Inc. (a) | 20,123 | 392,600 | ||||||
Zebra Technologies Corp. Class A (a) | 9,484 | 964,712 | ||||||
|
| |||||||
8,893,827 | ||||||||
|
| |||||||
Electronic Manufacturing Services – 1.3% |
| |||||||
Benchmark Electronics, Inc. (a) | 8,913 | 299,922 | ||||||
CTS Corp. | 5,859 | 128,898 | ||||||
Fabrinet (a) | 6,574 | 295,896 | ||||||
Flex Ltd. (a) | 96,235 | 1,538,798 | ||||||
IPG Photonics Corp. (a) | 6,737 | 1,028,336 | ||||||
Jabil, Inc. | 29,530 | 900,665 | ||||||
KEMET Corp. (a) | 7,050 | 118,792 | ||||||
Kimball Electronics, Inc. (a) | 4,910 | 95,499 | ||||||
Methode Electronics, Inc. | 6,300 | 250,425 | ||||||
Park Electrochemical Corp. | 3,626 | 68,133 | ||||||
Plexus Corp. (a) | 6,117 | 327,932 | ||||||
Sanmina Corp. (a) | 13,398 | 480,318 | ||||||
TE Connectivity Ltd. | 63,683 | 5,119,476 | ||||||
Trimble, Inc. (a) | 45,362 | 1,697,900 | ||||||
TTM Technologies, Inc. (a) | 15,194 | 264,072 | ||||||
|
| |||||||
12,615,062 | ||||||||
|
| |||||||
Technology Distributors – 0.6% |
| |||||||
Anixter International, Inc. (a) | 5,368 | 422,730 | ||||||
Arrow Electronics, Inc. (a) | 15,988 | 1,299,665 | ||||||
Avnet, Inc. | 23,081 | 885,849 | ||||||
CDW Corp. | 28,864 | 1,830,843 | ||||||
ePlus, Inc. (a) | 2,530 | 204,677 | ||||||
Insight Enterprises, Inc. (a) | 6,364 | 257,869 | ||||||
PC Connection, Inc. | 2,161 | 55,754 | ||||||
ScanSource, Inc. (a) | 4,493 | 177,923 | ||||||
SYNNEX Corp. | 5,342 | 635,271 | ||||||
Systemax, Inc. | 2,636 | 47,764 |
See accompanying notes which are an integral part of the financial statements.
55 | Annual Report |
Table of Contents
Fidelity MSCI Information Technology Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & |
| |||||||
Technology Distributors – continued |
| |||||||
Tech Data Corp. (a) | 6,866 | $ | 703,078 | |||||
|
| |||||||
6,521,423 | ||||||||
|
| |||||||
TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS |
| 41,432,831 | ||||||
|
| |||||||
INTERNET SOFTWARE & SERVICES – 20.1% |
| |||||||
Internet Software & Services – 20.1% |
| |||||||
2U, Inc. (a) | 7,999 | 413,948 | ||||||
Actua Corp. (a) | 6,330 | 85,455 | ||||||
Akamai Technologies, Inc. (a) | 31,020 | 1,462,283 | ||||||
Alarm.com Holdings, Inc. (a) | 2,861 | 108,804 | ||||||
Alphabet, Inc. Class A (a) | 53,283 | 50,379,076 | ||||||
Alphabet, Inc. Class C (a) | 55,995 | 52,103,347 | ||||||
Angie’s List, Inc. (a) | 6,704 | 80,314 | ||||||
Bankrate, Inc. (a) | 9,350 | 129,965 | ||||||
Bazaarvoice, Inc. (a) | 14,181 | 66,651 | ||||||
Benefitfocus, Inc. (a) | 2,877 | 102,853 | ||||||
Blucora, Inc. (a) | 7,329 | 164,170 | ||||||
Box, Inc. Class A (a) | 10,608 | 199,961 | ||||||
Brightcove, Inc. (a) | 5,051 | 33,842 | ||||||
Carbonite, Inc. (a) | 3,892 | 91,851 | ||||||
Cars.com, Inc. (a) | 12,113 | 294,346 | ||||||
ChannelAdvisor Corp. (a) | 4,028 | 42,294 | ||||||
Cimpress N.V. (a) | 4,204 | 370,961 | ||||||
CommerceHub, Inc. Series A (a) | 2,301 | 41,970 | ||||||
CommerceHub, Inc. Series C (a) | 5,119 | 92,040 | ||||||
Cornerstone OnDemand, Inc. (a) | 9,083 | 366,136 | ||||||
CoStar Group, Inc. (a) | 5,868 | 1,616,927 | ||||||
Coupa Software, Inc. (a) | 4,499 | 138,254 | ||||||
eBay, Inc. (a) | 185,110 | 6,613,980 | ||||||
Endurance International Group Holdings, Inc. (a) | 11,004 | 101,787 | ||||||
Envestnet, Inc. (a) | 7,671 | 299,553 | ||||||
Facebook, Inc. Class A (a) | 422,371 | 71,486,292 | ||||||
Five9, Inc. (a) | 7,590 | 167,435 | ||||||
GoDaddy, Inc. Class A (a) | 15,188 | 652,780 | ||||||
Gogo, Inc. (a) | 10,482 | 127,671 | ||||||
GrubHub, Inc. (a) | 14,709 | 678,526 | ||||||
GTT Communications, Inc. (a) | 5,416 | 165,459 | ||||||
Hortonworks, Inc. (a) | 7,625 | 102,175 | ||||||
IAC/InterActiveCorp. (a) | 12,932 | 1,353,075 | ||||||
Instructure, Inc. (a) | 2,257 | 73,014 | ||||||
j2 Global, Inc. | 8,675 | 734,165 | ||||||
LivePerson, Inc. (a) | 8,771 | 118,847 | ||||||
LogMeIn, Inc. | 9,453 | 1,100,802 | ||||||
Match Group, Inc. (a) | 8,149 | 148,719 | ||||||
MercadoLibre, Inc. | 7,547 | 2,176,706 | ||||||
MINDBODY, Inc. Class A (a) | 5,117 | 132,786 | ||||||
New Relic, Inc. (a) | 5,634 | 264,573 |
Shares | Value | |||||||
NIC, Inc. | 11,293 | $ | 183,511 | |||||
Nutanix, Inc. Class A (a) | 6,146 | 130,572 | ||||||
Pandora Media, Inc. (a) | 41,905 | 375,050 | ||||||
Q2 Holdings, Inc. (a) | 5,407 | 210,332 | ||||||
Quotient Technology, Inc. (a) | 13,085 | 151,786 | ||||||
Shutterstock, Inc. (a) | 3,315 | 139,694 | ||||||
SPS Commerce, Inc. (a) | 3,103 | 179,353 | ||||||
Stamps.com, Inc. (a) | 2,926 | 433,341 | ||||||
The Trade Desk, Inc. Class A (a) | 4,579 | 244,106 | ||||||
TrueCar, Inc. (a) | 12,083 | 228,731 | ||||||
Tucows, Inc. Class A (a) | 1,400 | 76,510 | ||||||
Twilio, Inc. Class A (a) | 8,264 | 241,061 | ||||||
Twitter, Inc. (a) | 111,097 | 1,787,551 | ||||||
VeriSign, Inc. (a) | 16,555 | 1,674,869 | ||||||
Web.com Group, Inc. (a) | 7,168 | 157,338 | ||||||
WebMD Health Corp. (a) | 6,819 | 451,759 | ||||||
XO Group, Inc. (a) | 4,447 | 81,291 | ||||||
Yelp, Inc. (a) | 13,283 | 432,096 | ||||||
Zillow Group, Inc. Class C (a) | 18,702 | 844,582 | ||||||
|
| |||||||
TOTAL INTERNET SOFTWARE & SERVICES |
| 202,907,326 | ||||||
|
| |||||||
IT SERVICES – 17.3% | ||||||||
Data Processing & Outsourced Services – 11.5% |
| |||||||
Alliance Data Systems Corp. | 9,049 | 2,184,700 | ||||||
Automatic Data Processing, Inc. | 80,559 | 9,579,271 | ||||||
Black Knight Financial Services, Inc. Class A (a) | 5,615 | 238,638 | ||||||
Blackhawk Network Holdings, Inc. (a) | 9,443 | 412,187 | ||||||
Broadridge Financial Solutions, Inc. | 21,268 | 1,613,390 | ||||||
Cardtronics PLC Class A (a) | 8,037 | 251,558 | ||||||
Cass Information Systems, Inc. | 1,957 | 129,084 | ||||||
Conduent, Inc. (a) | 31,166 | 514,551 | ||||||
Convergys Corp. | 17,163 | 411,397 | ||||||
CoreLogic, Inc. (a) | 15,266 | 695,366 | ||||||
CSG Systems International, Inc. | 5,854 | 242,063 | ||||||
DST Systems, Inc. | 11,411 | 626,464 | ||||||
Euronet Worldwide, Inc. (a) | 8,906 | 860,409 | ||||||
EVERTEC, Inc. | 10,973 | 195,868 | ||||||
ExlService Holdings, Inc. (a) | 5,966 | 343,343 | ||||||
Fidelity National Information Services, Inc. | 58,935 | 5,376,051 | ||||||
First Data Corp. Class A (a) | 63,539 | 1,185,638 | ||||||
Fiserv, Inc. (a) | 38,463 | 4,942,495 | ||||||
FleetCor Technologies, Inc. (a) | 16,443 | 2,500,323 | ||||||
Global Payments, Inc. | 27,268 | 2,573,281 | ||||||
Jack Henry & Associates, Inc. | 13,895 | 1,491,211 | ||||||
Mastercard, Inc. Class A | 170,861 | 21,836,036 | ||||||
MAXIMUS, Inc. | 11,671 | 704,462 | ||||||
MoneyGram International, Inc. (a) | 6,145 | 100,286 | ||||||
Net 1 UEPS Technologies, Inc. (a) | 9,808 | 94,941 | ||||||
Paychex, Inc. | 57,894 | 3,349,168 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 56 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
IT SERVICES – continued | ||||||||
Data Processing & Outsourced Services – continued |
| |||||||
PayPal Holdings, Inc. (a) | 205,814 | $ | 12,050,410 | |||||
Sabre Corp. | 37,467 | 829,145 | ||||||
Square, Inc. Class A (a) | 35,683 | 940,247 | ||||||
Sykes Enterprises, Inc. (a) | 6,918 | 235,212 | ||||||
Syntel, Inc. | 5,862 | 114,250 | ||||||
TeleTech Holdings, Inc. | 2,836 | 118,545 | ||||||
The Western Union Co. | 86,464 | 1,707,664 | ||||||
Total System Services, Inc. | 29,668 | 1,882,731 | ||||||
Travelport Worldwide Ltd. | 22,594 | 323,094 | ||||||
Vantiv, Inc. Class A (a) | 28,974 | 1,841,298 | ||||||
Visa, Inc. Class A | 333,215 | 33,174,885 | ||||||
WEX, Inc. (a) | 6,942 | 754,457 | ||||||
|
| |||||||
116,424,119 | ||||||||
|
| |||||||
IT Consulting & Other Services – 5.8% |
| |||||||
Accenture PLC Class A | 111,687 | 14,387,519 | ||||||
Acxiom Corp. (a) | 14,094 | 380,115 | ||||||
Booz Allen Hamilton Holding Corp. | 26,959 | 924,694 | ||||||
CACI International, Inc. Class A (a) | 4,400 | 550,440 | ||||||
Cognizant Technology Solutions Corp. Class A | 108,755 | 7,538,897 | ||||||
CSRA, Inc. | 29,123 | 949,701 | ||||||
DXC Technology Co. | 50,964 | 3,994,558 | ||||||
EPAM Systems, Inc. (a) | 8,765 | 753,176 | ||||||
Forrester Research, Inc. | 1,735 | 70,788 | ||||||
Gartner, Inc. (a) | 16,237 | 2,083,532 | ||||||
International Business Machines Corp. | 162,000 | 23,436,540 | ||||||
Leidos Holdings, Inc. | 25,709 | 1,373,889 | ||||||
ManTech International Corp. Class A | 4,700 | 186,684 | ||||||
Perficient, Inc. (a) | 6,316 | 118,741 | ||||||
Science Applications International Corp. | 7,939 | 558,985 | ||||||
ServiceSource International, Inc. (a) | 13,247 | 50,339 | ||||||
Teradata Corp. (a) | 23,492 | 747,515 | ||||||
The Hackett Group, Inc. | 4,838 | 79,440 | ||||||
Unisys Corp. (a) | 9,014 | 115,379 | ||||||
Virtusa Corp. (a) | 5,306 | 175,894 | ||||||
|
| |||||||
58,476,826 | ||||||||
|
| |||||||
TOTAL IT SERVICES | 174,900,945 | |||||||
|
| |||||||
SEMICONDUCTORS & SEMICONDUCTOR |
| |||||||
Semiconductor Equipment – 2.2% |
| |||||||
Advanced Energy Industries, Inc. (a) | 7,136 | 517,717 | ||||||
Amkor Technology, Inc. (a) | 19,520 | 202,422 | ||||||
Applied Materials, Inc. | 193,789 | 8,586,790 | ||||||
Axcelis Technologies, Inc. (a) | 5,265 | 116,883 | ||||||
Brooks Automation, Inc. | 12,355 | 303,439 | ||||||
Cabot Microelectronics Corp. | 4,536 | 336,344 | ||||||
Cohu, Inc. | 5,000 | 91,100 | ||||||
Entegris, Inc. (a) | 25,411 | 663,227 |
Shares | Value | |||||||
FormFactor, Inc. (a) | 12,657 | $ | 165,807 | |||||
KLA-Tencor Corp. | 28,082 | 2,601,236 | ||||||
Kulicke & Soffa Industries, Inc. (a) | 12,749 | 274,613 | ||||||
Lam Research Corp. | 29,187 | 4,654,159 | ||||||
MKS Instruments, Inc. | 9,608 | 803,709 | ||||||
Nanometrics, Inc. (a) | 4,418 | 117,740 | ||||||
PDF Solutions, Inc. (a) | 4,999 | 80,234 | ||||||
Photronics, Inc. (a) | 12,392 | 124,540 | ||||||
Rudolph Technologies, Inc. (a) | 5,469 | 135,358 | ||||||
SolarEdge Technologies, Inc. (a) | 4,955 | 113,717 | ||||||
Teradyne, Inc. | 35,991 | 1,244,929 | ||||||
Ultra Clean Holdings, Inc. (a) | 5,645 | 132,375 | ||||||
Veeco Instruments, Inc. (a) | 8,729 | 268,853 | ||||||
Versum Materials, Inc. | 19,684 | 694,058 | ||||||
Xcerra Corp. (a) | 9,524 | 92,478 | ||||||
Xperi Corp. | 8,696 | 254,358 | ||||||
|
| |||||||
22,576,086 | ||||||||
|
| |||||||
Semiconductors – 13.0% | ||||||||
Advanced Micro Devices, Inc. (a) | 148,533 | 2,021,534 | ||||||
Alpha & Omega Semiconductor Ltd. (a) | 3,298 | 58,375 | ||||||
Ambarella, Inc. (a) | 5,861 | 293,343 | ||||||
Analog Devices, Inc. | 65,241 | 5,154,691 | ||||||
Broadcom Ltd. | 71,923 | 17,740,527 | ||||||
Cavium, Inc. (a) | 12,091 | 748,917 | ||||||
Ceva, Inc. (a) | 3,765 | 174,131 | ||||||
Cirrus Logic, Inc. (a) | 11,478 | 705,208 | ||||||
Cree, Inc. (a) | 17,363 | 449,875 | ||||||
Cypress Semiconductor Corp. | 58,254 | 827,207 | ||||||
Diodes, Inc. (a) | 6,880 | 182,526 | ||||||
First Solar, Inc. (a) | 13,941 | 687,431 | ||||||
Impinj, Inc. (a) | 2,923 | 143,636 | ||||||
Inphi Corp. (a) | 6,693 | 257,011 | ||||||
Integrated Device Technology, Inc. (a) | 24,003 | 627,438 | ||||||
Intel Corp. | 847,914 | 30,075,510 | ||||||
IXYS Corp. | 4,453 | 77,482 | ||||||
Lattice Semiconductor Corp. (a) | 20,471 | 142,478 | ||||||
MACOM Technology Solutions Holdings, Inc. (a) | 7,407 | 448,494 | ||||||
Marvell Technology Group Ltd. | 73,059 | 1,136,798 | ||||||
Maxim Integrated Products, Inc. | 50,616 | 2,299,991 | ||||||
MaxLinear, Inc. Class A (a) | 10,623 | 278,323 | ||||||
Mellanox Technologies Ltd. (a) | 8,049 | 377,901 | ||||||
Microchip Technology, Inc. | 38,791 | 3,104,832 | ||||||
Micron Technology, Inc. (a) | 187,786 | 5,280,542 | ||||||
Microsemi Corp. (a) | 20,736 | 1,079,931 | ||||||
Monolithic Power Systems, Inc. | 6,942 | 710,305 | ||||||
NeoPhotonics Corp. (a) | 6,117 | 49,364 | ||||||
NVE Corp. | 871 | 68,705 | ||||||
NVIDIA Corp. | 96,681 | 15,711,629 | ||||||
ON Semiconductor Corp. (a) | 75,093 | 1,122,640 |
See accompanying notes which are an integral part of the financial statements.
57 | Annual Report |
Table of Contents
Fidelity MSCI Information Technology Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
SEMICONDUCTORS & SEMICONDUCTOR |
| |||||||
Semiconductors – continued |
| |||||||
Power Integrations, Inc. | 5,269 | $ | 372,255 | |||||
Qorvo, Inc. (a) | 22,736 | 1,558,780 | ||||||
QUALCOMM, Inc. | 264,935 | 14,091,893 | ||||||
Rambus, Inc. (a) | 19,871 | 256,137 | ||||||
Semtech Corp. (a) | 11,731 | 464,548 | ||||||
Silicon Laboratories, Inc. (a) | 7,593 | 570,234 | ||||||
Skyworks Solutions, Inc. | 33,146 | 3,476,021 | ||||||
SunPower Corp. (a) | 11,433 | 127,364 | ||||||
Synaptics, Inc. (a) | 6,396 | 336,494 | ||||||
Texas Instruments, Inc. | 179,312 | 14,592,411 | ||||||
Xilinx, Inc. | 44,605 | 2,821,712 | ||||||
|
| |||||||
130,704,624 | ||||||||
|
| |||||||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT |
| 153,280,710 | ||||||
|
| |||||||
SOFTWARE – 22.1% | ||||||||
Application Software – 6.3% | ||||||||
8x8, Inc. (a) | 16,534 | 209,982 | ||||||
ACI Worldwide, Inc. (a) | 21,224 | 491,760 | ||||||
Adobe Systems, Inc. (a) | 88,630 | 12,983,409 | ||||||
ANSYS, Inc. (a) | 15,352 | 1,988,852 | ||||||
Aspen Technology, Inc. (a) | 13,720 | 780,256 | ||||||
Autodesk, Inc. (a) | 35,903 | 3,977,693 | ||||||
Blackbaud, Inc. | 8,518 | 786,552 | ||||||
Blackline, Inc. (a) | 2,283 | 88,512 | ||||||
Bottomline Technologies de, Inc. (a) | 7,400 | 210,752 | ||||||
BroadSoft, Inc. (a) | 5,560 | 244,918 | ||||||
Cadence Design Systems, Inc. (a) | 50,120 | 1,849,428 | ||||||
Callidus Software, Inc. (a) | 11,411 | 277,287 | ||||||
CDK Global, Inc. | 23,468 | 1,543,725 | ||||||
Citrix Systems, Inc. (a) | 27,993 | 2,210,887 | ||||||
Ebix, Inc. | 3,748 | 216,447 | ||||||
Ellie Mae, Inc. (a) | 6,085 | 530,734 | ||||||
Fair Isaac Corp. | 5,600 | 798,280 | ||||||
Glu Mobile, Inc. (a) | 19,520 | 53,290 | ||||||
Guidewire Software, Inc. (a) | 13,163 | 949,842 | ||||||
HubSpot, Inc. (a) | 5,795 | 419,268 | ||||||
Intuit, Inc. | 43,557 | 5,976,456 | ||||||
Manhattan Associates, Inc. (a) | 12,690 | 560,898 | ||||||
MicroStrategy, Inc. Class A (a) | 1,715 | 230,685 | ||||||
MobileIron, Inc. (a) | 7,334 | 33,186 | ||||||
Monotype Imaging Holdings, Inc. | 7,621 | 143,656 | ||||||
Nuance Communications, Inc. (a) | 52,466 | 907,662 | ||||||
Paycom Software, Inc. (a) | 8,486 | 594,784 | ||||||
Paylocity Holding Corp. (a) | 5,038 | 229,078 | ||||||
Pegasystems, Inc. | 6,865 | 414,989 | ||||||
PROS Holdings, Inc. (a) | 4,879 | 140,661 | ||||||
PTC, Inc. (a) | 20,809 | 1,148,449 | ||||||
QAD, Inc. Class A | 1,902 | 59,628 |
Shares | Value | |||||||
RealPage, Inc. (a) | 10,289 | $ | 398,699 | |||||
RingCentral, Inc. Class A (a) | 9,854 | 342,919 | ||||||
Salesforce.com, Inc. (a) | 118,752 | 10,782,682 | ||||||
Silver Spring Networks, Inc. (a) | 6,928 | 78,356 | ||||||
Splunk, Inc. (a) | 24,272 | 1,456,563 | ||||||
SS&C Technologies Holdings, Inc. | 31,168 | 1,208,072 | ||||||
Synchronoss Technologies, Inc. (a) | 7,987 | 134,820 | ||||||
Synopsys, Inc. (a) | 27,062 | 2,072,137 | ||||||
The Ultimate Software Group, Inc. (a) | 5,066 | 1,143,447 | ||||||
Tyler Technologies, Inc. (a) | 6,308 | 1,083,777 | ||||||
Verint Systems, Inc. (a) | 11,287 | 447,529 | ||||||
Workday, Inc. Class A (a) | 22,477 | 2,295,126 | ||||||
Workiva, Inc. (a) | 4,120 | 80,752 | ||||||
Zendesk, Inc. (a) | 17,290 | 506,943 | ||||||
|
| |||||||
63,083,828 | ||||||||
|
| |||||||
Home Entertainment Software – 1.6% |
| |||||||
Activision Blizzard, Inc. | 126,560 | 7,818,877 | ||||||
Electronic Arts, Inc. (a) | 55,258 | 6,450,819 | ||||||
Take-Two Interactive Software, Inc. (a) | 18,233 | 1,449,159 | ||||||
Zynga, Inc. Class A (a) | 141,358 | 510,302 | ||||||
|
| |||||||
16,229,157 | ||||||||
|
| |||||||
Systems Software – 14.2% | ||||||||
A10 Networks, Inc. (a) | 8,254 | 58,356 | ||||||
Barracuda Networks, Inc. (a) | 6,572 | 147,673 | ||||||
CA, Inc. | 56,364 | 1,749,539 | ||||||
CommVault Systems, Inc. (a) | 7,614 | 453,414 | ||||||
Dell Technologies, Inc. Class V (a) | 38,699 | 2,487,185 | ||||||
FireEye, Inc. (a) | 28,576 | 418,067 | ||||||
Fortinet, Inc. (a) | 26,310 | 971,102 | ||||||
Gigamon, Inc. (a) | 5,882 | 233,809 | ||||||
Imperva, Inc. (a) | 5,054 | 227,683 | ||||||
Microsoft Corp. | 1,316,552 | 95,713,330 | ||||||
Oracle Corp. | 551,781 | 27,550,425 | ||||||
Progress Software Corp. | 8,072 | 258,385 | ||||||
Proofpoint, Inc. (a) | 7,823 | 666,832 | ||||||
Qualys, Inc. (a) | 5,503 | 220,945 | ||||||
Rapid7, Inc. (a) | 2,628 | 39,919 | ||||||
Red Hat, Inc. (a) | 31,942 | 3,158,106 | ||||||
ServiceNow, Inc. (a) | 29,757 | 3,286,661 | ||||||
Symantec Corp. | 110,922 | 3,437,473 | ||||||
Tableau Software, Inc. Class A (a) | 10,693 | 689,164 | ||||||
The Rubicon Project, Inc. (a) | 7,837 | 36,834 | ||||||
TiVo Corp. | 21,865 | 428,554 | ||||||
Varonis Systems, Inc. (a) | 2,633 | 98,079 | ||||||
VASCO Data Security International, Inc. (a) | 5,331 | 71,968 | ||||||
VMware, Inc. Class A (a) | 12,698 | 1,177,232 | ||||||
|
| |||||||
143,580,735 | ||||||||
|
| |||||||
TOTAL SOFTWARE | 222,893,720 | |||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 58 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS – 16.1% |
| |||||||
Technology Hardware, Storage & Peripherals – 16.1% |
| |||||||
3D Systems Corp. (a) | 19,525 | $ | 328,020 | |||||
Apple, Inc. | 940,905 | 139,940,801 | ||||||
Cray, Inc. (a) | 7,161 | 147,517 | ||||||
Diebold Nixdorf, Inc. | 12,086 | 282,812 | ||||||
Eastman Kodak Co. (a) | 3,698 | 35,131 | ||||||
Electronics For Imaging, Inc. (a) | 8,281 | 402,291 | ||||||
Hewlett Packard Enterprise Co. | 298,093 | 5,219,608 | ||||||
HP, Inc. | 303,073 | 5,788,694 | ||||||
Immersion Corp. (a) | 4,998 | 42,683 | ||||||
NCR Corp. (a) | 22,421 | 848,635 | ||||||
NetApp, Inc. | 49,514 | 2,149,898 | ||||||
Pure Storage, Inc. Class A (a) | 12,498 | 150,851 | ||||||
Seagate Technology PLC | 53,081 | 1,749,550 | ||||||
Super Micro Computer, Inc. (a) | 6,950 | 186,607 | ||||||
Western Digital Corp. | 51,638 | 4,395,427 | ||||||
Xerox Corp. | 38,916 | 1,193,554 | ||||||
|
| |||||||
TOTAL TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS |
| 162,862,079 | ||||||
|
| |||||||
TOTAL COMMON STOCKS | 1,008,953,001 | |||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
Shares | Value | |||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 0.90% (b) | 836,809 | $ | 836,809 | |||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 100.0% |
| 1,009,789,810 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.0% |
| 253,674 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $ | 1,010,043,484 | ||||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
59 | Annual Report |
Table of Contents
Fidelity MSCI Materials Index ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
CHEMICALS – 66.3% |
| |||||||
Commodity Chemicals – 6.1% |
| |||||||
AdvanSix, Inc. (a) | 7,587 | $ | 254,013 | |||||
Cabot Corp. | 15,480 | 841,028 | ||||||
Calgon Carbon Corp. | 12,585 | 201,360 | ||||||
Hawkins, Inc. | 2,361 | 106,127 | ||||||
Koppers Holdings, Inc. (a) | 5,124 | 186,001 | ||||||
Kronos Worldwide, Inc. | 5,758 | 122,761 | ||||||
LyondellBasell Industries N.V. Class A | 85,081 | 7,664,947 | ||||||
Olin Corp. | 41,140 | 1,212,807 | ||||||
Tredegar Corp. | 6,155 | 92,941 | ||||||
Trinseo S.A. | 10,999 | 773,230 | ||||||
Tronox Ltd. Class A | 16,224 | 314,421 | ||||||
Valvoline, Inc. | �� | 50,872 | 1,153,268 | |||||
|
| |||||||
12,922,904 | ||||||||
|
| |||||||
Diversified Chemicals – 20.6% |
| |||||||
Eastman Chemical Co. | 36,427 | 3,029,269 | ||||||
EI du Pont de Nemours & Co. | 214,989 | 17,674,246 | ||||||
Huntsman Corp. | 50,412 | 1,341,967 | ||||||
The Chemours Co. | 45,706 | 2,176,063 | ||||||
The Dow Chemical Co. | 301,708 | 19,381,722 | ||||||
|
| |||||||
43,603,267 | ||||||||
|
| |||||||
Fertilizers & Agricultural Chemicals – 9.5% |
| |||||||
AgroFresh Solutions, Inc. (a) | 5,598 | 43,664 | ||||||
American Vanguard Corp. | 6,543 | 115,811 | ||||||
CF Industries Holdings, Inc. | 57,967 | 1,701,332 | ||||||
FMC Corp. | 33,285 | 2,542,308 | ||||||
Monsanto Co. | 109,053 | 12,739,572 | ||||||
The Mosaic Co. | 82,697 | 1,996,306 | ||||||
The Scotts Miracle-Gro Co. Class A | 11,166 | 1,071,824 | ||||||
|
| |||||||
20,210,817 | ||||||||
|
| |||||||
Industrial Gases – 8.0% |
| |||||||
Air Products & Chemicals, Inc. | 54,107 | 7,691,310 | ||||||
Praxair, Inc. | 70,966 | 9,236,934 | ||||||
|
| |||||||
16,928,244 | ||||||||
|
| |||||||
Specialty Chemicals – 22.1% |
| |||||||
A Schulman, Inc. Class A | 7,340 | 193,042 | ||||||
Albemarle Corp. | 27,991 | 3,241,358 | ||||||
Ashland Global Holdings, Inc. | 15,481 | 1,005,801 | ||||||
Axalta Coating Systems Ltd. (a) | 53,824 | 1,695,456 | ||||||
Balchem Corp. | 7,900 | 613,040 | ||||||
Celanese Corp. Class A | 35,044 | 3,370,181 | ||||||
Chase Corp. | 1,861 | 201,081 | ||||||
Ecolab, Inc. | 65,286 | 8,596,208 | ||||||
Ferro Corp. (a) | 19,723 | 379,471 | ||||||
Flotek Industries, Inc. (a) | 12,738 | 107,254 | ||||||
FutureFuel Corp. | 6,535 | 95,150 | ||||||
GCP Applied Technologies, Inc. (a) | 17,689 | 535,977 | ||||||
HB Fuller Co. | 12,471 | 642,506 | ||||||
Ingevity Corp. (a) | 10,489 | 613,606 | ||||||
Innophos Holdings, Inc. | 4,844 | 202,334 |
Shares | Value | |||||||
Innospec, Inc. | 5,969 | $ | 372,466 | |||||
International Flavors & Fragrances, Inc. | 19,752 | 2,630,571 | ||||||
KMG Chemicals, Inc. | 2,363 | 119,615 | ||||||
Kraton Corp. (a) | 7,726 | 287,407 | ||||||
Minerals Technologies, Inc. | 8,698 | 615,818 | ||||||
NewMarket Corp. | 2,357 | 1,084,479 | ||||||
OMNOVA Solutions, Inc. (a) | 11,194 | 105,224 | ||||||
Platform Specialty Products Corp. (a) | 55,403 | 776,196 | ||||||
PolyOne Corp. | 20,438 | 747,622 | ||||||
PPG Industries, Inc. | 63,930 | 6,728,632 | ||||||
Quaker Chemical Corp. | 3,299 | 468,029 | ||||||
Rayonier Advanced Materials, Inc. | 10,747 | 160,238 | ||||||
RPM International, Inc. | 33,216 | 1,722,914 | ||||||
Sensient Technologies Corp. | 11,043 | 821,157 | ||||||
Stepan Co. | 5,024 | 412,822 | ||||||
The Sherwin-Williams Co. | 20,882 | 7,042,872 | ||||||
WR Grace & Co. | 16,982 | 1,171,079 | ||||||
|
| |||||||
46,759,606 | ||||||||
|
| |||||||
TOTAL CHEMICALS |
| 140,424,838 | ||||||
|
| |||||||
CONSTRUCTION MATERIALS – 4.6% |
| |||||||
Construction Materials – 4.6% |
| |||||||
Eagle Materials, Inc. | 12,041 | 1,133,058 | ||||||
Forterra, Inc. (a) | 4,787 | 42,748 | ||||||
Martin Marietta Materials, Inc. | 15,683 | 3,551,102 | ||||||
Summit Materials, Inc. Class A (a) | 26,327 | 748,740 | ||||||
United States Lime & Minerals, Inc. | 547 | 44,427 | ||||||
US Concrete, Inc. (a) | 3,720 | 291,462 | ||||||
Vulcan Materials Co. | 32,912 | 4,052,125 | ||||||
|
| |||||||
TOTAL CONSTRUCTION MATERIALS |
| 9,863,662 | ||||||
|
| |||||||
CONTAINERS & PACKAGING – 13.8% |
| |||||||
Metal & Glass Containers – 4.9% |
| |||||||
Aptargroup, Inc. | 15,502 | 1,254,577 | ||||||
Ball Corp. | 82,589 | 3,460,479 | ||||||
Berry Plastics Group, Inc. (a) | 30,405 | 1,705,113 | ||||||
Crown Holdings, Inc. (a) | 34,713 | 2,064,382 | ||||||
Greif, Inc. | 1,096 | 65,650 | ||||||
Greif, Inc. Class A | 6,391 | 358,471 | ||||||
Myers Industries, Inc. | 5,896 | 100,232 | ||||||
Owens-Illinois, Inc. (a) | 38,346 | 916,469 | ||||||
Silgan Holdings, Inc. | 19,185 | 581,306 | ||||||
|
| |||||||
10,506,679 | ||||||||
|
| |||||||
Paper Packaging – 8.9% |
| |||||||
Avery Dennison Corp. | 22,247 | 2,067,414 | ||||||
Bemis Co., Inc. | 23,001 | 974,552 | ||||||
Graphic Packaging Holding Co. | 77,639 | 1,024,058 | ||||||
International Paper Co. | 97,152 | 5,341,417 | ||||||
Packaging Corp. of America | 23,431 | 2,565,226 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 60 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
CONTAINERS & PACKAGING – continued |
| |||||||
Paper Packaging – continued |
| |||||||
Sealed Air Corp. | 48,084 | $ | 2,092,135 | |||||
Sonoco Products Co. | 24,717 | 1,198,280 | ||||||
WestRock Co. | 62,267 | 3,575,371 | ||||||
|
| |||||||
18,838,453 | ||||||||
|
| |||||||
TOTAL CONTAINERS & PACKAGING |
| 29,345,132 | ||||||
|
| |||||||
METALS & MINING – 13.3% |
| |||||||
Aluminum – 1.1% |
| |||||||
Alcoa Corp. | 45,805 | 1,667,302 | ||||||
Century Aluminum Co. (a) | 12,982 | 217,838 | ||||||
Kaiser Aluminum Corp. | 4,356 | 423,795 | ||||||
|
| |||||||
2,308,935 | ||||||||
|
| |||||||
Copper – 2.4% |
| |||||||
Freeport-McMoRan, Inc. (a) | 341,445 | 4,991,926 | ||||||
|
| |||||||
Diversified Metals & Mining – 0.4% |
| |||||||
Compass Minerals International, Inc. | 8,411 | 580,780 | ||||||
Materion Corp. | 4,945 | 190,135 | ||||||
|
| |||||||
770,915 | ||||||||
|
| |||||||
Gold – 3.0% |
| |||||||
McEwen Mining, Inc. | 58,369 | 152,343 | ||||||
Newmont Mining Corp. | 132,078 | 4,909,339 | ||||||
Royal Gold, Inc. | 16,246 | 1,407,879 | ||||||
|
| |||||||
6,469,561 | ||||||||
|
| |||||||
Silver – 0.4% |
| |||||||
Coeur Mining, Inc. (a) | 45,033 | 372,873 | ||||||
Hecla Mining Co. | 98,443 | 532,577 | ||||||
|
| |||||||
905,450 | ||||||||
|
| |||||||
Steel – 6.0% |
| |||||||
AK Steel Holding Corp. (a) | 78,148 | 442,318 | ||||||
Allegheny Technologies, Inc. | 27,000 | 511,380 | ||||||
Carpenter Technology Corp. | 11,611 | 469,433 | ||||||
Cliffs Natural Resources, Inc. (a) | 68,079 | 525,570 | ||||||
Commercial Metals Co. | 28,771 | 535,141 | ||||||
Haynes International, Inc. | 3,115 | 97,437 | ||||||
Nucor Corp. | 79,196 | 4,567,233 | ||||||
Reliance Steel & Aluminum Co. | 18,117 | 1,310,946 | ||||||
Ryerson Holding Corp. (a) | 4,156 | 35,949 | ||||||
Schnitzer Steel Industries, Inc. Class A | 6,636 | 171,209 | ||||||
Steel Dynamics, Inc. | 60,294 | 2,135,010 | ||||||
SunCoke Energy, Inc. (a) | 14,352 | 128,450 | ||||||
TimkenSteel Corp. (a) | 9,274 | 147,364 |
Shares | Value | |||||||
United States Steel Corp. | 42,904 | $ | 1,007,815 | |||||
Worthington Industries, Inc. | 11,858 | 600,845 | ||||||
|
| |||||||
12,686,100 | ||||||||
|
| |||||||
TOTAL METALS & MINING |
| 28,132,887 | ||||||
|
| |||||||
PAPER & FOREST PRODUCTS – 1.8% |
| |||||||
Forest Products – 0.7% | ||||||||
Boise Cascade Co. (a) | 9,555 | 289,994 | ||||||
Deltic Timber Corp. | 2,713 | 195,689 | ||||||
Louisiana-Pacific Corp. (a) | 35,916 | 901,851 | ||||||
|
| |||||||
1,387,534 | ||||||||
|
| |||||||
Paper Products – 1.1% | ||||||||
Clearwater Paper Corp. (a) | 4,088 | 200,925 | ||||||
Domtar Corp. | 15,528 | 606,524 | ||||||
KapStone Paper and Packaging Corp. | 21,639 | 494,667 | ||||||
Mercer International, Inc. | 11,327 | 124,597 | ||||||
Neenah Paper, Inc. | 4,172 | 333,343 | ||||||
PH Glatfelter Co. | 10,813 | 221,342 | ||||||
Resolute Forest Products, Inc. (a) | 14,443 | 67,160 | ||||||
Schweitzer-Mauduit International, Inc. | 7,659 | 294,259 | ||||||
|
| |||||||
2,342,817 | ||||||||
|
| |||||||
TOTAL PAPER & FOREST PRODUCTS |
| 3,730,351 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 211,496,870 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, | 116,800 | 116,800 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 99.9% |
| 211,613,670 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 317,637 | ||||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 211,931,307 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
61 | Annual Report |
Table of Contents
Fidelity MSCI Real Estate Index ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) – 96.5% |
| |||||||
Diversified REIT’s – 6.3% |
| |||||||
American Assets Trust, Inc. | 13,516 | $ | 548,885 | |||||
Armada Hoffler Properties, Inc. | 17,928 | 237,725 | ||||||
Colony NorthStar, Inc. Class A | 199,508 | 2,920,797 | ||||||
Empire State Realty Trust, Inc. Class A | 50,513 | 1,055,217 | ||||||
First Potomac Realty Trust | 23,708 | 263,870 | ||||||
Forest City Realty Trust, Inc. Class A | 77,637 | 1,892,790 | ||||||
Gladstone Commercial Corp. | 10,215 | 217,375 | ||||||
Global Net Lease, Inc. | 25,637 | 564,014 | ||||||
Gramercy Property Trust | 56,694 | 1,713,293 | ||||||
Investors Real Estate Trust | 49,089 | 305,334 | ||||||
iStar, Inc. (a) | 25,869 | 309,135 | ||||||
Lexington Realty Trust | 82,001 | 834,770 | ||||||
Liberty Property Trust | 54,870 | 2,305,637 | ||||||
One Liberty Properties, Inc. | 5,786 | 142,220 | ||||||
PS Business Parks, Inc. | 7,775 | 1,045,426 | ||||||
RAIT Financial Trust | 14,292 | 28,584 | ||||||
Select Income REIT | 26,012 | 610,502 | ||||||
Spirit Realty Capital, Inc. | 183,485 | 1,455,036 | ||||||
STORE Capital Corp. | 64,868 | 1,517,262 | ||||||
VEREIT, Inc. | 363,542 | 3,021,034 | ||||||
Washington Real Estate Investment Trust | 28,523 | 953,524 | ||||||
WP Carey, Inc. | 39,689 | 2,719,093 | ||||||
|
| |||||||
24,661,523 | ||||||||
|
| |||||||
Health Care REIT’s – 10.1% |
| |||||||
Care Capital Properties, Inc. | 23,751 | 575,249 | ||||||
CareTrust REIT, Inc. | 25,973 | 473,748 | ||||||
HCP, Inc. | 174,726 | 5,530,078 | ||||||
Healthcare Realty Trust, Inc. | 44,156 | 1,470,395 | ||||||
Healthcare Trust of America, Inc. | ||||||||
Class A | 72,244 | 2,209,944 | ||||||
LTC Properties, Inc. | 15,238 | 786,890 | ||||||
Medical Properties Trust, Inc. | 135,552 | 1,759,465 | ||||||
National Health Investors, Inc. | 15,134 | 1,169,101 | ||||||
New Senior Investment Group, Inc. | 30,721 | 319,191 | ||||||
Omega Healthcare Investors, Inc. | 73,443 | 2,320,064 | ||||||
Physicians Realty Trust | 67,485 | 1,256,571 | ||||||
Quality Care Properties, Inc. (a) | 36,235 | 609,473 | ||||||
Sabra Health Care REIT, Inc. | 25,377 | 588,746 | ||||||
Senior Housing Properties Trust | 56,249 | 1,094,043 | ||||||
Universal Health Realty Income Trust | 5,055 | 391,661 | ||||||
Ventas, Inc. | 132,348 | 8,913,638 | ||||||
Welltower, Inc. | 135,309 | 9,930,328 | ||||||
|
| |||||||
39,398,585 | ||||||||
|
| |||||||
Hotel & Resort REIT’s – 5.0% |
| |||||||
Apple Hospitality REIT, Inc. | 80,371 | 1,483,649 | ||||||
Ashford Hospitality Prime, Inc. | 6,388 | 66,180 | ||||||
Ashford Hospitality Trust, Inc. | 39,141 | 246,197 | ||||||
Chatham Lodging Trust | 10,941 | 226,260 |
Shares | Value | |||||||
Chesapeake Lodging Trust | 22,974 | $ | 579,634 | |||||
DiamondRock Hospitality Co. | 76,824 | 897,304 | ||||||
FelCor Lodging Trust, Inc. | 49,583 | 365,923 | ||||||
Hersha Hospitality Trust | 16,679 | 312,898 | ||||||
Hospitality Properties Trust | 35,511 | 1,031,950 | ||||||
Host Hotels & Resorts, Inc. | 275,892 | 5,148,145 | ||||||
LaSalle Hotel Properties | 42,298 | 1,249,483 | ||||||
MGM Growth Properties LLC | 22,161 | 663,279 | ||||||
Park Hotels & Resorts, Inc. | 57,012 | 1,535,333 | ||||||
Pebblebrook Hotel Trust | 27,639 | 930,605 | ||||||
RLJ Lodging Trust | 47,696 | 1,009,247 | ||||||
Ryman Hospitality Properties, Inc. | 17,238 | 1,078,926 | ||||||
Summit Hotel Properties, Inc. | 39,682 | 711,498 | ||||||
Sunstone Hotel Investors, Inc. | 83,773 | 1,363,824 | ||||||
Xenia Hotels & Resorts, Inc. | 40,724 | 827,512 | ||||||
|
| |||||||
19,727,847 | ||||||||
|
| |||||||
Industrial REIT’s – 5.8% |
| |||||||
DCT Industrial Trust, Inc. | 34,763 | 1,958,547 | ||||||
Duke Realty Corp. | 132,696 | 3,793,779 | ||||||
EastGroup Properties, Inc. | 12,729 | 1,109,714 | ||||||
First Industrial Realty Trust, Inc. | 44,626 | 1,361,986 | ||||||
Monmouth Real Estate Investment Corp. Class A | 25,114 | 387,007 | ||||||
Prologis, Inc. | 197,553 | 12,013,198 | ||||||
Rexford Industrial Realty, Inc. | 25,663 | 731,909 | ||||||
STAG Industrial, Inc. | 31,380 | 856,360 | ||||||
Terreno Realty Corp. | 18,323 | 634,342 | ||||||
|
| |||||||
22,846,842 | ||||||||
|
| |||||||
Office REIT’s – 10.6% |
| |||||||
Alexandria Real Estate Equities, Inc. | 33,170 | 4,021,862 | ||||||
Boston Properties, Inc. | 57,394 | 6,939,508 | ||||||
Brandywine Realty Trust | 66,759 | 1,122,219 | ||||||
Columbia Property Trust, Inc. | 46,796 | 1,017,813 | ||||||
Corporate Office Properties Trust | 37,469 | 1,247,343 | ||||||
Cousins Properties, Inc. | 159,005 | 1,461,256 | ||||||
Douglas Emmett, Inc. | 54,951 | 2,102,425 | ||||||
Easterly Government Properties, Inc. | 12,803 | 255,932 | ||||||
Equity Commonwealth (a) | 47,053 | 1,485,934 | ||||||
Franklin Street Properties Corp. | 39,946 | 422,229 | ||||||
Government Properties Income Trust | 16,775 | 297,421 | ||||||
Highwoods Properties, Inc. | 38,442 | 1,980,532 | ||||||
Hudson Pacific Properties, Inc. | 58,504 | 1,914,251 | ||||||
JBG SMITH (a) | 31,865 | 1,130,570 | ||||||
Kilroy Realty Corp. | 36,498 | 2,533,326 | ||||||
Mack-Cali Realty Corp. | 32,670 | 857,261 | ||||||
New York REIT, Inc. | 64,250 | 555,120 | ||||||
NorthStar Realty Europe Corp. | 21,459 | 277,036 | ||||||
Paramount Group, Inc. | 74,227 | 1,215,096 | ||||||
Parkway, Inc. | 17,408 | 400,558 | ||||||
Piedmont Office Realty Trust, Inc. Class A | 55,372 | 1,163,366 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 62 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) – continued |
| |||||||
Office REIT’s – continued | ||||||||
SL Green Realty Corp. | 37,536 | $ | 3,876,343 | |||||
Tier REIT, Inc. | 18,951 | 350,214 | ||||||
Vornado Realty Trust | 63,725 | 5,056,579 | ||||||
|
| |||||||
41,684,194 | ||||||||
|
| |||||||
Residential REIT’s – 13.6% |
| |||||||
Altisource Residential Corp. | 20,663 | 268,826 | ||||||
American Campus Communities, Inc. | 49,828 | 2,388,754 | ||||||
American Homes 4 Rent Class A | 87,315 | 2,009,118 | ||||||
Apartment Investment & Management Co. Class A | 58,613 | 2,669,822 | ||||||
AvalonBay Communities, Inc. | 51,252 | 9,858,322 | ||||||
Camden Property Trust | 32,672 | 2,930,678 | ||||||
Education Realty Trust, Inc. | 27,937 | 1,049,034 | ||||||
Equity Lifestyle Properties, Inc. | 30,769 | 2,686,134 | ||||||
Equity Residential | 137,002 | 9,324,356 | ||||||
Essex Property Trust, Inc. | 24,462 | 6,401,705 | ||||||
Independence Realty Trust, Inc. | 20,043 | 202,635 | ||||||
Mid-America Apartment Communities, Inc. | 42,375 | 4,387,084 | ||||||
Monogram Residential Trust, Inc. | 60,847 | 727,730 | ||||||
NexPoint Residential Trust, Inc. | 6,664 | 167,200 | ||||||
Starwood Waypoint Homes | 47,318 | 1,654,237 | ||||||
Sun Communities, Inc. | 29,233 | 2,602,029 | ||||||
UDR, Inc. | 99,784 | 3,900,557 | ||||||
UMH Properties, Inc. | 11,223 | 185,629 | ||||||
|
| |||||||
53,413,850 | ||||||||
|
| |||||||
Retail REIT’s – 15.6% |
| |||||||
Acadia Realty Trust | 31,117 | 925,420 | ||||||
Agree Realty Corp. | 11,000 | 540,870 | ||||||
Alexander’s, Inc. | 913 | 397,146 | ||||||
Brixmor Property Group, Inc. | 112,843 | 2,210,594 | ||||||
CBL & Associates Properties, Inc. | 62,292 | 547,547 | ||||||
Cedar Realty Trust, Inc. | 35,879 | 185,853 | ||||||
DDR Corp. | 118,723 | 1,209,787 | ||||||
Federal Realty Investment Trust | 26,910 | 3,569,073 | ||||||
Getty Realty Corp. | 10,932 | 284,013 | ||||||
GGP, Inc. | 231,186 | 5,227,115 | ||||||
Kimco Realty Corp. | 158,884 | 3,206,279 | ||||||
Kite Realty Group Trust | 22,877 | 469,665 | ||||||
National Retail Properties, Inc. | 54,962 | 2,197,381 | ||||||
Pennsylvania Real Estate Investment Trust | 27,708 | 329,448 | ||||||
Ramco-Gershenson Properties Trust | 28,700 | 404,383 | ||||||
Realty Income Corp. | 97,130 | 5,542,238 | ||||||
Regency Centers Corp. | 57,035 | 3,776,858 | ||||||
Retail Opportunity Investments Corp. | 42,035 | 852,470 | ||||||
Retail Properties of America, Inc. Class A | 90,311 | 1,194,815 | ||||||
Saul Centers, Inc. | 5,140 | 304,082 |
Shares | Value | |||||||
Seritage Growth Properties, Class A | 9,155 | $ | 428,179 | |||||
Simon Property Group, Inc. | 119,360 | 18,918,560 | ||||||
Tanger Factory Outlet Centers, Inc. | 36,806 | 972,783 | ||||||
Taubman Centers, Inc. | 22,998 | 1,307,896 | ||||||
The Macerich Co. | 45,661 | 2,620,485 | ||||||
Urban Edge Properties | 40,958 | 1,029,275 | ||||||
Urstadt Biddle Properties, Inc. Class A | 11,077 | 231,952 | ||||||
Washington Prime Group, Inc. | 71,931 | 648,818 | ||||||
Weingarten Realty Investors | 46,200 | 1,499,652 | ||||||
|
| |||||||
61,032,637 | ||||||||
|
| |||||||
Specialized REIT’s – 29.5% |
| |||||||
American Tower Corp. | 159,431 | 21,735,228 | ||||||
CatchMark Timber Trust, Inc. Class A | 16,221 | 186,704 | ||||||
CoreCivic, Inc. | 44,794 | 1,240,794 | ||||||
CoreSite Realty Corp. | 12,888 | 1,399,379 | ||||||
Crown Castle International Corp. | 150,259 | 15,113,050 | ||||||
CubeSmart | 68,273 | 1,683,612 | ||||||
CyrusOne, Inc. | 29,589 | 1,766,759 | ||||||
Digital Realty Trust, Inc. | 59,346 | 6,844,968 | ||||||
DuPont Fabros Technology, Inc. | 29,330 | 1,828,139 | ||||||
EPR Properties | 24,104 | 1,744,648 | ||||||
Equinix, Inc. | 28,706 | 12,938,655 | ||||||
Extra Space Storage, Inc. | 46,991 | 3,735,784 | ||||||
Four Corners Property Trust, Inc. | 23,311 | 591,633 | ||||||
Gaming and Leisure Properties, Inc. | 74,268 | 2,817,728 | ||||||
InfraREIT, Inc. (a) | 17,365 | 390,539 | ||||||
Iron Mountain, Inc. | 93,523 | 3,407,043 | ||||||
Lamar Advertising Co. Class A | 31,251 | 2,205,383 | ||||||
Life Storage, Inc. | 17,668 | 1,290,471 | ||||||
National Storage Affiliates Trust | 16,971 | 389,654 | ||||||
Outfront Media, Inc. | 52,728 | 1,205,889 | ||||||
Potlatch Corp. | 15,587 | 745,838 | ||||||
Public Storage | 58,205 | 11,965,202 | ||||||
QTS Realty Trust, Inc. Class A | 18,266 | 976,683 | ||||||
Rayonier, Inc. | 46,724 | 1,358,267 | ||||||
SBA Communications Corp. (a) | 45,159 | 6,211,620 | ||||||
The Geo Group, Inc. | 46,196 | 1,355,853 | ||||||
Uniti Group, Inc. (a) | 61,268 | 1,568,461 | ||||||
Weyerhaeuser Co. | 279,531 | 9,230,114 | ||||||
|
| |||||||
115,928,098 | ||||||||
|
| |||||||
TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) |
| 378,693,576 | ||||||
|
| |||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT – 3.4% |
| |||||||
Diversified Real Estate Activities – 0.3% |
| |||||||
Alexander & Baldwin, Inc. | 17,873 | 749,415 | ||||||
Tejon Ranch Co. (a) | 7,510 | 157,560 | ||||||
The RMR Group, Inc. Class A | 2,671 | 130,478 | ||||||
The St Joe Co. (a) | 14,486 | 261,472 | ||||||
|
| |||||||
1,298,925 | ||||||||
|
|
See accompanying notes which are an integral part of the financial statements.
63 | Annual Report |
Table of Contents
Fidelity MSCI Real Estate Index ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT – continued |
| |||||||
Real Estate Development – 0.5% |
| |||||||
Forestar Group, Inc. (a) | 5,334 | $ | 91,478 | |||||
The Howard Hughes Corp. (a) | 14,225 | 1,789,647 | ||||||
|
| |||||||
1,881,125 | ||||||||
|
| |||||||
Real Estate Operating Companies – 0.2% | ||||||||
Kennedy-Wilson Holdings, Inc. | 37,528 | 754,313 | ||||||
|
| |||||||
Real Estate Services – 2.4% | ||||||||
Altisource Portfolio Solutions S.A. (a) | 5,795 | 151,191 | ||||||
CBRE Group, Inc. Class A (a) | 113,287 | 4,303,773 | ||||||
HFF, Inc. Class A | 14,064 | 516,430 | ||||||
Jones Lang LaSalle, Inc. | 16,891 | 2,148,873 | ||||||
Marcus & Millichap, Inc. (a) | 7,071 | 181,018 | ||||||
RE/MAX Holdings, Inc. Class A | 6,998 | 406,934 | ||||||
Realogy Holdings Corp. | 52,868 | 1,755,218 | ||||||
|
| |||||||
9,463,437 | ||||||||
|
| |||||||
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT |
| 13,397,800 | ||||||
|
| |||||||
TOTAL COMMON STOCKS | 392,091,376 | |||||||
|
|
Money Market Funds – 0.0% | ||||||||
Shares | Value | |||||||
State Street Institutional Treasury Plus | 239,798 | $ | 239,798 | |||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 99.9% |
| 392,331,174 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 206,358 | ||||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 392,537,532 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Annual Report | 64 |
Table of Contents
Fidelity MSCI Telecommunication Services Index ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 100.0% | ||||||||
Shares | Value | |||||||
DIVERSIFIED TELECOMMUNICATION SERVICES – 84.9% |
| |||||||
Alternative Carriers – 21.7% |
| |||||||
Cogent Communications Holdings, Inc. | 49,796 | $ | 2,078,983 | |||||
Globalstar, Inc. (a) | 1,157,041 | 2,140,526 | ||||||
Iridium Communications, Inc. (a) | 194,206 | 1,932,350 | ||||||
Level 3 Communications, Inc. (a) | 87,074 | 5,109,502 | ||||||
Lumos Networks Corp. (a) | 109,120 | 1,954,339 | ||||||
ORBCOMM, Inc. (a) | 209,577 | 2,433,189 | ||||||
pdvWireless, Inc. (a) | 72,194 | 1,783,192 | ||||||
Straight Path Communications, Inc. (a) | 14,951 | 2,682,209 | ||||||
Vonage Holdings Corp. (a) | 307,378 | 2,031,769 | ||||||
Zayo Group Holdings, Inc. (a) | 91,691 | 3,006,548 | ||||||
|
| |||||||
25,152,607 | ||||||||
|
| |||||||
Integrated Telecommunication Services – 63.2% |
| |||||||
AT&T, Inc. | 679,527 | 26,501,553 | ||||||
ATN International, Inc. | 27,659 | 1,604,222 | ||||||
CenturyLink, Inc. | 189,669 | 4,413,598 | ||||||
Cincinnati Bell, Inc. (a) | 103,717 | 1,934,322 | ||||||
Consolidated Communications Holdings, Inc. | 184,619 | 3,323,142 | ||||||
Frontier Communications Corp. | 96,499 | 1,477,400 | ||||||
General Communication, Inc. Class A (a) | 69,623 | 2,970,813 | ||||||
IDT Corp. Class B | 97,570 | 1,445,012 | ||||||
Verizon Communications, Inc. | 573,346 | 27,749,946 | ||||||
Windstream Holding, Inc. | 462,018 | 1,751,048 | ||||||
|
| |||||||
73,171,056 | ||||||||
|
| |||||||
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES |
| 98,323,663 | ||||||
|
| |||||||
WIRELESS TELECOMMUNICATION SERVICES – 15.1% |
| |||||||
Wireless Telecommunication Services – 15.1% |
| |||||||
Boingo Wireless, Inc. (a) | 149,979 | 2,224,188 |
Shares | Value | |||||||
Shenandoah Telecommunications Co. | 64,729 | $ | 1,990,417 | |||||
Spok Holdings, Inc. | 98,869 | 1,621,451 | ||||||
Sprint Corp. (a) | 375,215 | 2,994,216 | ||||||
Telephone & Data Systems, Inc. | 79,439 | 2,258,451 | ||||||
T-Mobile US, Inc. (a) | 76,565 | 4,720,998 | ||||||
United States Cellular Corp. (a) | 43,434 | 1,645,280 | ||||||
|
| |||||||
TOTAL WIRELESS TELECOMMUNICATION SERVICES | 17,455,001 | |||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 115,778,664 | ||||||
|
| |||||||
Money Market Funds – 0.0% | ||||||||
State Street Institutional Treasury Plus | 54,229 | 54,229 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 100.0% |
| 115,832,893 | ||||||
NET OTHER ASSETS (LIABILITIES) – (0.0%) |
| (14,887 | ) | |||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 115,818,006 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
65 | Annual Report |
Table of Contents
Fidelity MSCI Utilities Index ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
ELECTRIC UTILITIES – 57.6% |
| |||||||
Electric Utilities – 57.6% |
| |||||||
ALLETE, Inc. | 17,084 | $ | 1,251,745 | |||||
Alliant Energy Corp. | 77,757 | 3,151,491 | ||||||
American Electric Power Co., Inc. | 167,972 | 11,848,745 | ||||||
Duke Energy Corp. | 238,991 | 20,342,914 | ||||||
Edison International | 111,299 | 8,757,005 | ||||||
El Paso Electric Co. | 13,875 | 720,113 | ||||||
Entergy Corp. | 61,283 | 4,701,632 | ||||||
Eversource Energy | 108,250 | 6,580,517 | ||||||
Exelon Corp. | 316,530 | 12,135,760 | ||||||
FirstEnergy Corp. | 151,154 | 4,823,324 | ||||||
Great Plains Energy, Inc. | 73,559 | 2,270,031 | ||||||
Hawaiian Electric Industries, Inc. | 37,131 | 1,224,952 | ||||||
IDACORP, Inc. | 17,226 | 1,487,637 | ||||||
MGE Energy, Inc. | 11,850 | 788,617 | ||||||
NextEra Energy, Inc. | 159,729 | 23,334,810 | ||||||
OGE Energy Corp. | 68,180 | 2,444,935 | ||||||
Otter Tail Corp. | 12,086 | 488,879 | ||||||
PG&E Corp. | 173,462 | 11,741,643 | ||||||
Pinnacle West Capital Corp. | 38,035 | 3,298,776 | ||||||
PNM Resources, Inc. | 27,199 | 1,083,880 | ||||||
Portland General Electric Co. | 30,354 | 1,356,520 | ||||||
PPL Corp. | 232,499 | 8,911,687 | ||||||
Spark Energy Inc. | 3,944 | 82,035 | ||||||
The Southern Co. | 338,550 | 16,226,701 | ||||||
Westar Energy, Inc. | 48,494 | 2,461,070 | ||||||
Xcel Energy, Inc. | 173,271 | 8,197,451 | ||||||
|
| |||||||
TOTAL ELECTRIC UTILITIES |
| 159,712,870 | ||||||
|
| |||||||
GAS UTILITIES – 5.8% |
| |||||||
Gas Utilities – 5.8% |
| |||||||
Atmos Energy Corp. | 35,939 | 3,118,067 | ||||||
Chesapeake Utilities Corp. | 5,278 | 407,725 | ||||||
National Fuel Gas Co. | 26,209 | 1,551,835 | ||||||
New Jersey Resources Corp. | 29,474 | 1,242,329 | ||||||
Northwest Natural Gas Co. | 9,797 | 618,191 | ||||||
ONE Gas, Inc. | 17,840 | 1,298,395 | ||||||
South Jersey Industries, Inc. | 27,174 | 923,101 | ||||||
Southwest Gas Holdings, Inc. | 16,243 | 1,301,064 | ||||||
Spire, Inc. | 15,613 | 1,133,504 | ||||||
UGI Corp. | 59,093 | 2,982,424 | ||||||
WGL Holdings, Inc. | 17,487 | 1,498,986 | ||||||
|
| |||||||
TOTAL GAS UTILITIES | 16,075,621 | |||||||
|
| |||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS – 3.8% |
| |||||||
Independent Power Producers & Energy Traders – 2.9% |
| |||||||
AES Corp. | 225,042 | 2,515,969 | ||||||
Calpine Corp. (a) | 123,373 | 1,774,104 | ||||||
Dynegy, Inc. (a) | 42,400 | 380,752 | ||||||
NRG Energy, Inc. | 107,772 | 2,653,347 |
Shares | Value | |||||||
NRG Yield, Inc. Class A | 11,822 | $ | 215,515 | |||||
NRG Yield, Inc. Class C | 21,382 | 397,705 | ||||||
|
| |||||||
7,937,392 | ||||||||
|
| |||||||
Renewable Electricity – 0.9% | ||||||||
8Point3 Energy Partners LP | 9,634 | 142,102 | ||||||
NextEra Energy Partners LP | 18,484 | 761,910 | ||||||
Ormat Technologies, Inc. | 12,734 | 755,126 | ||||||
Pattern Energy Group, Inc. | 23,853 | 598,710 | ||||||
TerraForm Global, Inc. Class A (a) | 27,125 | 138,338 | ||||||
TerraForm Power, Inc. Class A (a) | 20,290 | 271,886 | ||||||
|
| |||||||
2,668,072 | ||||||||
|
| |||||||
TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS |
| 10,605,464 | ||||||
|
| |||||||
MULTI-UTILITIES – 29.4% |
| |||||||
Multi-Utilities – 29.4% |
| |||||||
Ameren Corp. | 82,886 | 4,649,905 | ||||||
Avista Corp. | 22,094 | 1,162,365 | ||||||
Black Hills Corp. | 18,224 | 1,269,484 | ||||||
CenterPoint Energy, Inc. | 139,783 | 3,940,483 | ||||||
CMS Energy Corp. | 95,620 | 4,421,469 | ||||||
Consolidated Edison, Inc. | 104,210 | 8,634,841 | ||||||
Dominion Energy, Inc. | 214,569 | 16,560,435 | ||||||
DTE Energy Co. | 61,296 | 6,562,350 | ||||||
MDU Resources Group, Inc. | 63,405 | 1,670,722 | ||||||
NiSource, Inc. | 110,529 | 2,880,386 | ||||||
NorthWestern Corp. | 16,612 | 960,007 | ||||||
Public Service Enterprise Group, Inc. | 172,927 | 7,776,527 | ||||||
SCANA Corp. | 46,365 | 2,984,515 | ||||||
Sempra Energy | 81,152 | 9,170,987 | ||||||
Unitil Corp. | 4,815 | 244,361 | ||||||
Vectren Corp. | 28,338 | 1,703,397 | ||||||
WEC Energy Group, Inc. | 107,816 | 6,789,174 | ||||||
|
| |||||||
TOTAL MULTI-UTILITIES | 81,381,408 | |||||||
|
| |||||||
WATER UTILITIES – 3.3% |
| |||||||
Water Utilities – 3.3% |
| |||||||
American States Water Co. | 12,519 | 619,065 | ||||||
American Water Works Co., Inc. | 60,879 | 4,937,287 | ||||||
Aqua America, Inc. | 60,619 | 2,023,462 | ||||||
AquaVenture Holdings Ltd. (a) | 5,358 | 85,674 | ||||||
California Water Service Group | 16,341 | 635,665 | ||||||
Connecticut Water Service, Inc. | 3,875 | 220,797 | ||||||
Middlesex Water Co. | 5,578 | 218,881 | ||||||
SJW Group | 5,247 | 277,409 | ||||||
The York Water Co. | 4,362 | 151,798 | ||||||
|
| |||||||
TOTAL WATER UTILITIES |
| 9,170,038 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 276,945,401 | ||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 66 |
Table of Contents
Money Market Funds – 0.1% | ||||||||
Shares | Value | |||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 0.90% (b) | 137,555 | $ | 137,555 | |||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 100.0% |
| 277,082,956 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.0% |
| 66,038 | ||||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 277,148,994 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualized seven-day yield of the fund at period end. |
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
67 | Annual Report |
Table of Contents
Statements of Assets and Liabilities | ||||||||||||||||
July 31, 2017 | ||||||||||||||||
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 | $ | 293,787,854 | $ | 311,989,871 | $ | 431,042,649 | $ | 921,769,538 | ||||||||
Receivable for investments sold | — | 4,842,049 | 2,730 | 3,283 | ||||||||||||
Receivable for fund shares sold | — | 9,202 | — | — | ||||||||||||
Dividends receivable | 146,643 | 482,656 | 295,965 | 532,699 | ||||||||||||
Interest receivable | 175 | 140 | 191 | 574 | ||||||||||||
Other receivable | 38 | — | — | 14,643 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 293,934,710 | 317,323,918 | 431,341,535 | 922,320,737 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Due to custodian | — | — | — | 56 | ||||||||||||
Payable for investments purchased | — | 4,952,283 | — | 519,012 | ||||||||||||
Payable for fund shares redeemed | — | — | — | 58,588 | ||||||||||||
Accrued management fees | 21,436 | 22,236 | 30,963 | 64,498 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 21,436 | 4,974,519 | 30,963 | 642,154 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 293,913,274 | $ | 312,349,399 | $ | 431,310,572 | $ | 921,678,583 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets consist of: | ||||||||||||||||
Paid in capital | 285,387,256 | 300,262,791 | 527,642,463 | 835,774,180 | ||||||||||||
Undistributed net investment income | 32,519 | 497,742 | 2,370,211 | 538,871 | ||||||||||||
Accumulated undistributed net realized gain (loss) on investments | (5,458,325 | ) | (2,713,087 | ) | (39,438,390 | ) | (2,629,051 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | 13,951,824 | 14,301,953 | (59,263,712 | ) | 87,994,583 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 293,913,274 | $ | 312,349,399 | $ | 431,310,572 | $ | 921,678,583 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 8,150,000 | 9,400,000 | 23,450,000 | 24,950,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Asset Value, offering price and redemption price per share | $ | 36.06 | $ | 33.23 | $ | 18.39 | $ | 36.94 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Investments at cost | $ | 279,836,030 | $ | 297,687,918 | $ | 490,306,361 | $ | 833,774,955 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 68 |
Table of Contents
Statements of Assets and Liabilities | ||||||||||||||||
July 31, 2017 | ||||||||||||||||
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 | $ | 818,819,411 | $ | 354,466,975 | $ | 1,009,789,810 | $ | 211,613,670 | ||||||||
Receivable for investments sold | — | — | 56,324 | — | ||||||||||||
Receivable for fund shares sold | — | — | — | 7,249 | ||||||||||||
Dividends receivable | 499,082 | 187,175 | 261,574 | 332,752 | ||||||||||||
Interest receivable | 438 | 180 | 465 | 111 | ||||||||||||
Other receivable | 991 | — | 6,411 | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 819,319,922 | 354,654,330 | 1,010,114,584 | 211,953,782 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Due to custodian | — | — | — | — | ||||||||||||
Payable for investments purchased | 551,731 | 43,375 | — | — | ||||||||||||
Payable for fund shares redeemed | — | — | — | 7,214 | ||||||||||||
Accrued management fees | 58,469 | 25,448 | 71,100 | 15,261 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 610,200 | 68,823 | 71,100 | 22,475 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 818,709,722 | $ | 354,585,507 | $ | 1,010,043,484 | $ | 211,931,307 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets consist of: | ||||||||||||||||
Paid in capital | 758,130,838 | 323,203,636 | 850,290,407 | 200,903,941 | ||||||||||||
Undistributed net investment income | 1,079,805 | 344,297 | 551,089 | 317,298 | ||||||||||||
Accumulated undistributed net realized gain (loss) on investments | (11,277,479 | ) | (3,071,415 | ) | (4,097,499 | ) | (3,156,053 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments | 70,776,558 | 34,108,989 | 163,299,487 | 13,866,121 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 818,709,722 | $ | 354,585,507 | $ | 1,010,043,484 | $ | 211,931,307 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 21,300,000 | 10,150,000 | 22,700,000 | 6,700,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Asset Value, offering price and redemption price per share | $ | 38.44 | $ | 34.93 | $ | 44.50 | $ | 31.63 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Investments at cost | $ | 748,042,853 | $ | 320,357,986 | $ | 846,490,323 | $ | 197,747,549 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
69 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Assets and Liabilities |
July 31, 2017 | ||||||||||||
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 | $ | 392,331,174 | $ | 115,832,893 | $ | 277,082,956 | ||||||
Receivable for investments sold | — | — | — | |||||||||
Receivable for fund shares sold | 55,200 | 33,534 | — | |||||||||
Dividends receivable | 208,494 | 720,192 | 86,395 | |||||||||
Interest receivable | 417 | 37 | 122 | |||||||||
Other receivable | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total assets | 392,595,285 | 116,586,656 | 277,169,473 | |||||||||
|
|
|
|
|
| |||||||
Liabilities | ||||||||||||
Due to custodian | — | — | — | |||||||||
Payable for investments purchased | 31,193 | 760,337 | — | |||||||||
Payable for fund shares redeemed | — | — | — | |||||||||
Accrued management fees | 26,560 | 8,313 | 20,479 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 57,753 | 768,650 | 20,479 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 392,537,532 | $ | 115,818,006 | $ | 277,148,994 | ||||||
|
|
|
|
|
| |||||||
Net Assets consist of: | ||||||||||||
Paid in capital | 394,222,432 | 109,365,829 | 267,151,650 | |||||||||
Undistributed net investment income | — | 388,676 | 12,231 | |||||||||
Accumulated undistributed net realized gain (loss) on investments | (2,542,889 | ) | 4,029,237 | (2,483,606 | ) | |||||||
Net unrealized appreciation (depreciation) on investments | 857,989 | 2,034,264 | 12,468,719 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 392,537,532 | $ | 115,818,006 | $ | 277,148,994 | ||||||
|
|
|
|
|
| |||||||
Shares outstanding | 16,000,000 | 3,550,000 | 8,000,000 | |||||||||
|
|
|
|
|
| |||||||
Net Asset Value, offering price and redemption price per share | $ | 24.53 | $ | 32.62 | $ | 34.64 | ||||||
|
|
|
|
|
| |||||||
Investments at cost | $ | 391,473,185 | $ | 113,798,629 | $ | 264,614,237 | ||||||
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 70 |
Table of Contents
Statements of Operations | ||||||||||||||||
For the year ended July 31, 2017 | ||||||||||||||||
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 | $ | 4,063,734 | $ | 7,278,896 | $ | 13,761,816 | $ | 11,027,170 | ||||||||
Interest | 1,058 | 1,095 | 1,133 | 2,765 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total income | 4,064,792 | 7,279,991 | 13,762,949 | 11,029,935 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses | ||||||||||||||||
Management fees | 211,128 | 224,975 | 376,109 | 490,453 | ||||||||||||
Independent trustees’ compensation | 5,655 | 6,066 | 10,366 | 12,236 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 216,783 | 231,041 | 386,475 | 502,689 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 3,848,009 | 7,048,950 | 13,376,474 | 10,527,246 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) on investment securities | (2,458,852 | ) | 329,293 | (14,405,710 | ) | 231,498 | ||||||||||
Net realized gain (loss) on In-kind redemptions | 10,154,560 | 6,436,402 | 14,912,005 | 10,321,645 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total net realized gain (loss) | 7,695,708 | 6,765,695 | 506,295 | 10,553,143 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation (depreciation) on investment securities | 21,371,316 | (6,178,834 | ) | (22,293,670 | ) | 98,050,134 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net gain (loss) | 29,067,024 | 586,861 | (21,787,375 | ) | 108,603,277 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 32,915,033 | $ | 7,635,811 | $ | (8,410,901 | ) | $ | 119,130,523 | |||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
71 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Operations | ||||||||||||||||
For the year ended July 31, 2017 | ||||||||||||||||
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 | $ | 10,077,761 | $ | 5,132,306 | $ | 8,704,754 | $ | 3,470,291 | ||||||||
Interest | 2,429 | 1,148 | 2,591 | 741 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total income | 10,080,190 | 5,133,454 | 8,707,345 | 3,471,032 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses | ||||||||||||||||
Management fees | 539,375 | 218,173 | 559,689 | 141,338 | ||||||||||||
Independent trustees’ compensation | 14,336 | 5,623 | 14,117 | 3,692 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 553,711 | 223,796 | 573,806 | 145,030 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 9,526,479 | 4,909,658 | 8,133,539 | 3,326,002 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) on investment securities | (3,110,059 | ) | (997,322 | ) | 1,169,021 | (1,333,157 | ) | |||||||||
Net realized gain (loss) on In-kind redemptions | 7,429,228 | 4,252,433 | 14,695,141 | 7,801,041 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total net realized gain (loss) | 4,319,169 | 3,255,111 | 15,864,162 | 6,467,884 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation (depreciation) on investment securities | 49,461,351 | 33,201,447 | 149,979,218 | 14,449,014 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net gain (loss) | 53,780,520 | 36,456,558 | 165,843,380 | 20,916,898 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 63,306,999 | $ | 41,366,216 | $ | 173,976,919 | $ | 24,242,900 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 72 |
Table of Contents
Statements of Operations | ||||||||||||
For the year ended July 31, 2017 | ||||||||||||
Fidelity MSCI Real Estate Index ETF | Fidelity MSCI Telecommunication Services Index ETF | Fidelity MSCI Utilities Index ETF | ||||||||||
Investment Income | ||||||||||||
Dividends | $ | 7,213,121 | $ | 3,575,526 | $ | 7,963,145 | ||||||
Interest | 1,292 | 444 | 952 | |||||||||
|
|
|
|
|
| |||||||
Total income | 7,214,413 | 3,575,970 | 7,964,097 | |||||||||
|
|
|
|
|
| |||||||
Expenses | ||||||||||||
Management fees | 201,722 | 110,799 | 196,474 | |||||||||
Independent trustees’ compensation | 5,090 | 3,144 | 5,300 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 206,812 | 113,943 | 201,774 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | 7,007,601 | 3,462,027 | 7,762,323 | |||||||||
|
|
|
|
|
| |||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) on investment securities | (2,360,186 | ) | 4,721,934 | (495,565 | ) | |||||||
Net realized gain (loss) on In-kind redemptions | 4,819,884 | 13,923,093 | 11,495,108 | |||||||||
|
|
|
|
|
| |||||||
Total net realized gain (loss) | 2,459,698 | 18,645,027 | 10,999,543 | |||||||||
|
|
|
|
|
| |||||||
Change in net unrealized appreciation (depreciation) on investment securities | (12,304,082 | ) | (21,103,848 | ) | (8,322,969 | ) | ||||||
|
|
|
|
|
| |||||||
Net gain (loss) | (9,844,384 | ) | (2,458,821 | ) | 2,676,574 | |||||||
|
|
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | $ | (2,836,783 | ) | $ | 1,003,206 | $ | 10,438,897 | |||||
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
73 | Annual Report |
Table of Contents
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, 2017 | Year ended July 31, 2016 | Year ended July 31, 2017 | Year ended July 31, 2016 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 3,848,009 | $ | 3,672,372 | $ | 7,048,950 | $ | 6,013,205 | ||||||||
Net realized gain (loss) | 7,695,708 | 9,615,533 | 6,765,695 | 6,854,388 | ||||||||||||
Change in net unrealized appreciation (depreciation) | 21,371,316 | (22,169,428 | ) | (6,178,834 | ) | 12,152,519 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 32,915,033 | (8,881,523 | ) | 7,635,811 | 25,020,112 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders from net investment income | (3,848,250 | ) | (3,868,300 | ) | (6,993,800 | ) | (5,920,950 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 83,406,456 | 202,257,883 | 96,862,800 | 220,278,658 | ||||||||||||
Cost of shares redeemed | (80,881,472 | ) | (226,980,453 | ) | (70,659,144 | ) | (158,470,480 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 2,524,984 | (24,722,570 | ) | 26,203,656 | 61,808,178 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 31,591,767 | (37,472,393 | ) | 26,845,667 | 80,907,340 | |||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 262,321,507 | 299,793,900 | 285,503,732 | 204,596,392 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 293,913,274 | $ | 262,321,507 | $ | 312,349,399 | $ | 285,503,732 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of year | $ | 32,519 | $ | 30,956 | $ | 497,742 | $ | 442,592 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 2,450,000 | 6,500,000 | 2,950,000 | 7,350,000 | ||||||||||||
Redeemed | (2,500,000 | ) | (7,650,000 | ) | (2,250,000 | ) | (5,400,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (50,000 | ) | (1,150,000 | ) | 700,000 | 1,950,000 | ||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 74 |
Table of Contents
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Energy Index ETF | Fidelity MSCI Financials Index ETF | |||||||||||||||
Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2017 | Year ended July 31, 2016 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 13,376,474 | $ | 8,792,702 | $ | 10,527,246 | $ | 5,623,227 | ||||||||
Net realized gain (loss) | 506,295 | (27,444,867 | ) | 10,553,143 | (5,681,305 | ) | ||||||||||
Change in net unrealized appreciation (depreciation) | (22,293,670 | ) | 29,635,964 | 98,050,134 | (18,501,301 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (8,410,901 | ) | 10,983,799 | 119,130,523 | (18,559,379 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders from net investment income | (11,177,800 | ) | (8,829,100 | ) | (10,082,500 | ) | (5,983,150 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 100,894,324 | 180,786,099 | 633,770,202 | 121,969,148 | ||||||||||||
Cost of shares redeemed | (80,034,201 | ) | (9,300,501 | ) | (58,629,543 | ) | (203,948,262 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 20,860,123 | 171,485,598 | 575,140,659 | (81,979,114 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 1,271,422 | 173,640,297 | 684,188,682 | (106,521,643 | ) | |||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 430,039,150 | 256,398,853 | 237,489,901 | 344,011,544 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 431,310,572 | $ | 430,039,150 | $ | 921,678,583 | $ | 237,489,901 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of year | $ | 2,370,211 | $ | 171,537 | $ | 538,871 | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 5,000,000 | 10,100,000 | 18,400,000 | 4,250,000 | ||||||||||||
Redeemed | (4,150,000 | ) | (500,000 | ) | (1,750,000 | ) | (7,500,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 850,000 | 9,600,000 | 16,650,000 | (3,250,000 | ) | |||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
75 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Health Care Index ETF | Fidelity MSCI Industrials Index ETF | |||||||||||||||
Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2017 | Year ended July 31, 2016 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 9,526,479 | $ | 8,578,853 | $ | 4,909,658 | $ | 2,444,926 | ||||||||
Net realized gain (loss) | 4,319,169 | 16,027,115 | 3,255,111 | (3,153,096 | ) | |||||||||||
Change in net unrealized appreciation (depreciation) | 49,461,351 | (72,464,270 | ) | 33,201,447 | 7,067,172 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 63,306,999 | (47,858,302 | ) | 41,366,216 | 6,359,002 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders from net investment income | (9,330,050 | ) | (8,760,450 | ) | (4,608,750 | ) | (2,441,900 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 186,872,274 | 166,181,657 | 187,006,431 | 164,215,380 | ||||||||||||
Cost of shares redeemed | (64,263,827 | ) | (268,151,563 | ) | (27,227,864 | ) | (153,116,895 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 122,608,447 | (101,969,906 | ) | 159,778,567 | 11,098,485 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 176,585,396 | (158,588,658 | ) | 196,536,033 | 15,015,587 | |||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 642,124,326 | 800,712,984 | 158,049,474 | 143,033,887 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 818,709,722 | $ | 642,124,326 | $ | 354,585,507 | $ | 158,049,474 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of year | $ | 1,079,805 | $ | 311,841 | $ | 344,297 | $ | 42,250 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 5,200,000 | 4,850,000 | 5,750,000 | 5,900,000 | ||||||||||||
Redeemed | (1,900,000 | ) | (8,400,000 | ) | (850,000 | ) | (5,750,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 3,300,000 | (3,550,000 | ) | 4,900,000 | 150,000 | |||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 76 |
Table of Contents
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Information Technology Index ETF | Fidelity MSCI Materials Index ETF | |||||||||||||||
Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2017 | Year ended July 31, 2016 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 8,133,539 | $ | 5,403,104 | $ | 3,326,002 | $ | 1,485,956 | ||||||||
Net realized gain (loss) | 15,864,162 | 16,910,614 | 6,467,884 | (15,531,042 | ) | |||||||||||
Change in net unrealized appreciation (depreciation) | 149,979,218 | (9,630,663 | ) | 14,449,014 | 12,480,147 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 173,976,919 | 12,683,055 | 24,242,900 | (1,564,939 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders from net investment income | (7,809,700 | ) | (5,383,850 | ) | (3,068,600 | ) | (1,462,950 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 468,154,978 | 282,125,618 | 122,309,405 | 132,685,632 | ||||||||||||
Cost of shares redeemed | (55,670,081 | ) | (281,405,715 | ) | (54,877,050 | ) | (129,385,021 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 412,484,897 | 719,903 | 67,432,355 | 3,300,611 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 578,652,116 | 8,019,108 | 88,606,655 | 272,722 | ||||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 431,391,368 | 423,372,260 | 123,324,652 | 123,051,930 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 1,010,043,484 | $ | 431,391,368 | $ | 211,931,307 | $ | 123,324,652 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of year | $ | 551,089 | $ | 123,377 | $ | 317,298 | $ | 59,896 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 11,750,000 | 8,600,000 | 4,150,000 | 5,250,000 | ||||||||||||
Redeemed | (1,400,000 | ) | (9,200,000 | ) | (1,900,000 | ) | (5,550,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 10,350,000 | (600,000 | ) | 2,250,000 | (300,000 | ) | ||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
77 | Annual Report |
Table of Contents
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, 2017 | Year ended July 31, 2016 | Year ended July 31, 2017 | Year ended July 31, 2016 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 7,007,601 | $ | 2,125,983 | $ | 3,462,027 | $ | 2,966,226 | ||||||||
Net realized gain (loss) | 2,459,698 | 884,846 | 18,645,027 | 1,476,206 | ||||||||||||
Change in net unrealized appreciation (depreciation) | (12,304,082 | ) | 14,803,602 | (21,103,848 | ) | 23,239,724 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (2,836,783 | ) | 17,814,431 | 1,003,206 | 27,682,156 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders from net investment income | (8,640,100 | ) | (2,375,400 | ) | (3,777,050 | ) | (2,437,350 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 322,848,347 | 150,719,714 | 33,716,266 | 137,260,776 | ||||||||||||
Cost of shares redeemed | (102,228,174 | ) | (8,700,743 | ) | (90,063,955 | ) | (69,473,964 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 220,620,173 | 142,018,971 | (56,347,689 | ) | 67,786,812 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 209,143,290 | 157,458,002 | (59,121,533 | ) | 93,031,618 | |||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 183,394,242 | 25,936,240 | 174,939,539 | 81,907,921 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 392,537,532 | $ | 183,394,242 | $ | 115,818,006 | $ | 174,939,539 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of year | $ | — | $ | — | $ | 388,676 | $ | 703,699 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 13,300,000 | 6,300,000 | 1,050,000 | 5,050,000 | ||||||||||||
Redeemed | (4,400,000 | ) | (350,000 | ) | (2,950,000 | ) | (2,650,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 8,900,000 | 5,950,000 | (1,900,000 | ) | 2,400,000 | |||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 78 |
Table of Contents
Statements of Changes in Net Assets | ||||||||
Fidelity MSCI Utilities Index ETF | ||||||||
Year ended July 31, 2017 | Year ended July 31, 2016 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 7,762,323 | $ | 6,094,952 | ||||
Net realized gain (loss) | 10,999,543 | 2,515,706 | ||||||
Change in net unrealized appreciation (depreciation) | (8,322,969 | ) | 33,486,490 | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 10,438,897 | 42,097,148 | ||||||
|
|
|
| |||||
Distributions to shareholders from net investment income | (7,784,150 | ) | (6,073,050 | ) | ||||
|
|
|
| |||||
Share transactions | ||||||||
Proceeds from sales of shares | 125,186,565 | 257,957,666 | ||||||
Cost of shares redeemed | (134,361,663 | ) | (118,488,399 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from share transactions | (9,175,098 | ) | 139,469,267 | |||||
|
|
|
| |||||
Total increase (decrease) in net assets | (6,520,351 | ) | 175,493,365 | |||||
Net Assets | ||||||||
Beginning of year | 283,669,345 | 108,175,980 | ||||||
|
|
|
| |||||
End of year | $ | 277,148,994 | $ | 283,669,345 | ||||
|
|
|
| |||||
Undistributed net investment income included in net assets at end of year | $ | 12,231 | $ | 34,058 | ||||
|
|
|
| |||||
Other Information | ||||||||
Shares | ||||||||
Sold | 3,750,000 | 8,750,000 | ||||||
Redeemed | (4,200,000 | ) | (4,150,000 | ) | ||||
|
|
|
| |||||
Net increase (decrease) | (450,000 | ) | 4,600,000 | |||||
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
79 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | ||||||||||||||||
Year ended July 31, 2017 | 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 | $ | 31.99 | $ | 32.06 | $ | 26.58 | $ | 25.17 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from Investment Operations | ||||||||||||||||
Net investment income (loss)B | 0.50 | 0.43 | 0.37 | 0.25 | ||||||||||||
Net realized and unrealized gain (loss) | 4.07 | (0.06 | ) | 5.43 | 1.38 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | 4.57 | 0.37 | 5.80 | 1.63 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions from net investment income | (0.50 | ) | (0.44 | ) | (0.32 | ) | (0.22 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.50 | ) | (0.44 | ) | (0.32 | ) | (0.22 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 36.06 | $ | 31.99 | $ | 32.06 | $ | 26.58 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total ReturnC | 14.41 | % | 1.25 | % | 21.93 | % | 6.47 | % | ||||||||
Ratios to Average Net AssetsD | ||||||||||||||||
Expense before reductions | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Expenses net of fee waivers, if any | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Expenses net of all reductions | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Net investment income (loss) | 1.49 | % | 1.41 | % | 1.25 | % | 1.20 | %E | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000 omitted) | $ | 293,913 | $ | 262,322 | $ | 299,794 | $ | 75,741 | ||||||||
Portfolio turnover rateF,G | 7 | % | 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 the 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 | 80 |
Table of Contents
Financial Highlights | ||||||||||||||||
Fidelity MSCI Consumer Staples Index ETF | ||||||||||||||||
Year ended July 31, 2017 | 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 | $ | 32.82 | $ | 30.31 | $ | 26.16 | $ | 25.00 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from Investment Operations | ||||||||||||||||
Net investment income (loss)B | 0.83 | 0.75 | 0.77 | 0.52 | ||||||||||||
Net realized and unrealized gain (loss) | 0.40 | 2.56 | 4.16 | 1.09 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | 1.23 | 3.31 | 4.93 | 1.61 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions from net investment income | (0.82 | ) | (0.80 | ) | (0.78 | ) | (0.45 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.82 | ) | (0.80 | ) | (0.78 | ) | (0.45 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 33.23 | $ | 32.82 | $ | 30.31 | $ | 26.16 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total ReturnC | 3.82 | % | 11.18 | % | 19.00 | % | 6.42 | % | ||||||||
Ratios to Average Net AssetsD | ||||||||||||||||
Expense before reductions | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Expenses net of fee waivers, if any | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Expenses net of all reductions | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Net investment income (loss) | 2.56 | % | 2.45 | % | 2.63 | % | 2.51 | %E | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000 omitted) | $ | 312,349 | $ | 285,504 | $ | 204,596 | $ | 73,244 | ||||||||
Portfolio turnover rateF,G | 11 | % | 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 the 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.
81 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||||||
Fidelity MSCI Energy Index ETF | ||||||||||||||||
Year ended July 31, 2017 | 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 | $ | 19.03 | $ | 19.72 | $ | 27.97 | $ | 24.98 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from Investment Operations | ||||||||||||||||
Net investment income (loss)B | 0.57 | 0.50 | 0.57 | 0.38 | ||||||||||||
Net realized and unrealized gain (loss) | (0.73 | ) | (0.69 | )C | (8.31 | ) | 2.89 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | (0.16 | ) | (0.19 | ) | (7.74 | ) | 3.27 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions from net investment income | (0.48 | ) | (0.50 | ) | (0.51 | ) | (0.28 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.48 | ) | (0.50 | ) | (0.51 | ) | (0.28 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 18.39 | $ | 19.03 | $ | 19.72 | $ | 27.97 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total ReturnD | (0.96 | %) | (0.75 | %) | (27.95 | %) | 13.16 | % | ||||||||
Ratios to Average Net AssetsE | ||||||||||||||||
Expense before reductions | .08 | % | .12 | % | .12 | % | .12 | %F | ||||||||
Expenses net of fee waivers, if any | .08 | % | .12 | % | .12 | % | .12 | %F | ||||||||
Expenses net of all reductions | .08 | % | .12 | % | .12 | % | .12 | %F | ||||||||
Net investment income (loss) | 2.91 | % | 2.74 | % | 2.47 | % | 1.76 | %F | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000 omitted) | $ | 431,311 | $ | 430,039 | $ | 256,399 | $ | 145,425 | ||||||||
Portfolio turnover rateG,H | 10 | % | 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 the 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 | 82 |
Table of Contents
Financial Highlights | ||||||||||||||||
Fidelity MSCI Financials Index ETF | ||||||||||||||||
Year ended July 31, 2017 | 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 | $ | 28.61 | $ | 29.78 | $ | 26.61 | $ | 25.00 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from Investment Operations | ||||||||||||||||
Net investment income (loss)B | 0.61 | 0.63 | 0.58 | 0.41 | ||||||||||||
Net realized and unrealized gain (loss) | 8.28 | (1.11 | ) | 3.15 | 1.56 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | 8.89 | (0.48 | ) | 3.73 | 1.97 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions from net investment income | (0.56 | ) | (0.69 | ) | (0.56 | ) | (0.36 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.56 | ) | (0.69 | ) | (0.56 | ) | (0.36 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 36.94 | $ | 28.61 | $ | 29.78 | $ | 26.61 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total ReturnC | 31.31 | % | (1.49 | %) | 14.08 | % | 7.89 | % | ||||||||
Ratios to Average Net AssetsD | ||||||||||||||||
Expense before reductions | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Expenses net of fee waivers, if any | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Expenses net of all reductions | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Net investment income (loss) | 1.77 | % | 2.29 | % | 2.01 | % | 1.97 | %E | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000 omitted) | $ | 921,679 | $ | 237,490 | $ | 344,012 | $ | 126,397 | ||||||||
Portfolio turnover rateF,G | 18 | % | 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 the 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 |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||||||
Fidelity MSCI Health Care Index ETF | ||||||||||||||||
Year ended July 31, 2017 | 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 | $ | 35.67 | $ | 37.16 | $ | 29.05 | $ | 24.97 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from Investment Operations | ||||||||||||||||
Net investment income (loss)B | 0.51 | 0.44 | 0.80C | 0.30 | ||||||||||||
Net realized and unrealized gain (loss) | 2.76 | (1.49 | ) | 7.99 | 3.99 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | 3.27 | (1.05 | ) | 8.79 | 4.29 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions from net investment income | (0.50 | ) | (0.44 | ) | (0.68 | ) | (0.21 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.50 | ) | (0.44 | ) | (0.68 | ) | (0.21 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 38.44 | $ | 35.67 | $ | 37.16 | $ | 29.05 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total ReturnD | 9.30 | % | (2.73 | %) | 30.40 | % | 17.23 | % | ||||||||
Ratios to Average Net AssetsE | ||||||||||||||||
Expense before reductions | .08 | % | .12 | % | .12 | % | .12 | %F | ||||||||
Expenses net of fee waivers, if any | .08 | % | .12 | % | .12 | % | .12 | %F | ||||||||
Expenses net of all reductions | .08 | % | .12 | % | .12 | % | .12 | %F | ||||||||
Net investment income (loss) | 1.45 | % | 1.30 | % | 2.31 | %C | 1.36 | %F | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000 omitted) | $ | 818,710 | $ | 642,124 | $ | 800,713 | $ | 187,382 | ||||||||
Portfolio turnover rateG,H | 4 | % | 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 the 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 |
Table of Contents
Financial Highlights | ||||||||||||||||
Fidelity MSCI Industrials Index ETF | ||||||||||||||||
Year ended July 31, 2017 | 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 | $ | 30.10 | $ | 28.05 | $ | 26.85 | $ | 25.20 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from Investment Operations | ||||||||||||||||
Net investment income (loss)B | 0.61 | 0.54 | 0.48 | 0.35 | ||||||||||||
Net realized and unrealized gain (loss) | 4.79 | 2.04 | 1.19 | 1.61 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | 5.40 | 2.58 | 1.67 | 1.96 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions from net investment income | (0.57 | ) | (0.53 | ) | (0.47 | ) | (0.31 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.57 | ) | (0.53 | ) | (0.47 | ) | (0.31 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 34.93 | $ | 30.10 | $ | 28.05 | $ | 26.85 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total ReturnC | 18.08 | % | 9.41 | % | 6.18 | % | 7.75 | % | ||||||||
Ratios to Average Net AssetsD | ||||||||||||||||
Expense before reductions | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Expenses net of fee waivers, if any | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Expenses net of all reductions | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Net investment income (loss) | 1.85 | % | 1.94 | % | 1.69 | % | 1.65 | %E | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000 omitted) | $ | 354,586 | $ | 158,049 | $ | 143,034 | $ | 100,706 | ||||||||
Portfolio turnover rateF,G | 5 | % | 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 the 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 |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||||||
Fidelity MSCI Information Technology Index ETF | ||||||||||||||||
Year ended July 31, 2017 | 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 | $ | 34.93 | $ | 32.69 | $ | 29.29 | $ | 25.18 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from Investment Operations | ||||||||||||||||
Net investment income (loss)B | 0.48 | 0.46 | 0.39 | 0.25 | ||||||||||||
Net realized and unrealized gain (loss) | 9.54 | 2.24C | 3.40 | 4.06 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total from investment operations | 10.02 | 2.70 | 3.79 | 4.31 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions from net investment income | (0.45 | ) | (0.46 | ) | (0.39 | ) | (0.20 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.45 | ) | (0.46 | ) | (0.39 | ) | (0.20 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 44.50 | $ | 34.93 | $ | 32.69 | $ | 29.29 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total ReturnD | 28.86 | % | 8.41 | %C | 12.98 | % | 17.14 | % | ||||||||
Ratios to Average Net AssetsE | ||||||||||||||||
Expense before reductions | .08 | % | .12 | % | .12 | % | .12 | %F | ||||||||
Expenses net of fee waivers, if any | .08 | % | .12 | % | .12 | % | .12 | %F | ||||||||
Expenses net of all reductions | .08 | % | .12 | % | .12 | % | .12 | %F | ||||||||
Net investment income (loss) | 1.19 | % | 1.42 | % | 1.23 | % | 1.14 | %F | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000 omitted) | $ | 1,010,043 | $ | 431,391 | $ | 423,372 | $ | 181,611 | ||||||||
Portfolio turnover rateG,H | 6 | % | 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 advisor 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 the 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 |
Table of Contents
Financial Highlights | ||||||||||||||||
Fidelity MSCI Materials Index ETF | ||||||||||||||||
Year ended July 31, 2017 | 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 | $ | 27.71 | $ | 25.91 | $ | 27.66 | $ | 24.95 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from Investment Operations | ||||||||||||||||
Net investment income (loss)B | 0.57 | 0.50 | 0.50 | 0.35 | ||||||||||||
Net realized and unrealized gain (loss) | 3.87 | 1.83C | (1.75 | ) | 2.67 | |||||||||||
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| |||||||||
Total from investment operations | 4.44 | 2.33 | (1.25 | ) | 3.02 | |||||||||||
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|
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| |||||||||
Distributions from net investment income | (0.52 | ) | (0.53 | ) | (0.50 | ) | (0.31 | ) | ||||||||
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| |||||||||
Total distributions | (0.52 | ) | (0.53 | ) | (0.50 | ) | (0.31 | ) | ||||||||
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| |||||||||
Net asset value, end of period | $ | 31.63 | $ | 27.71 | $ | 25.91 | $ | 27.66 | ||||||||
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| |||||||||
Total ReturnD | 16.17 | % | 9.28 | % | (4.65 | %) | 12.15 | % | ||||||||
Ratios to Average Net AssetsE | ||||||||||||||||
Expense before reductions | .08 | % | .11 | % | .12 | % | .12 | %F | ||||||||
Expenses net of fee waivers, if any | .08 | % | .11 | % | .12 | % | .12 | %F | ||||||||
Expenses net of all reductions | .08 | % | .11 | % | .12 | % | .12 | %F | ||||||||
Net investment income (loss) | 1.93 | % | 2.00 | % | 1.81 | % | 1.64 | %F | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000 omitted) | $ | 211,931 | $ | 123,325 | $ | 123,052 | $ | 94,042 | ||||||||
Portfolio turnover rateG,H | 7 | % | 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 the 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.
87 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||
Fidelity MSCI Real Estate Index ETF | ||||||||||||
Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2015A | ||||||||||
Selected Per-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 25.83 | $ | 22.55 | $ | 24.28 | ||||||
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| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.68 | 0.83 | 0.38 | |||||||||
Net realized and unrealized gain (loss) | (1.12 | ) | 3.37 | (1.70 | ) | |||||||
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Total from investment operations | (0.44 | ) | 4.20 | (1.32 | ) | |||||||
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| |||||||
Distributions from net investment income | (0.86 | ) | (0.92 | ) | (0.38 | ) | ||||||
Return of capital | — | — | (0.03 | ) | ||||||||
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| |||||||
Total distributions | (0.86 | ) | (0.92 | ) | (0.41 | ) | ||||||
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| |||||||
Net asset value, end of period | $ | 24.53 | $ | 25.83 | $ | 22.55 | ||||||
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| |||||||
Total ReturnC | (1.53 | %) | 19.29 | % | (5.50 | %) | ||||||
Ratios to Average Net AssetsD | ||||||||||||
Expense before reductions | .08 | % | .11 | % | .12 | %E | ||||||
Expenses net of fee waivers, if any | .08 | % | .11 | % | .12 | %E | ||||||
Expenses net of all reductions | .08 | % | .11 | % | .12 | %E | ||||||
Net investment income (loss) | 2.85 | % | 3.55 | % | 3.33 | %E | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 392,538 | $ | 183,394 | $ | 25,936 | ||||||
Portfolio turnover rateF,G | 17 | % | 10 | % | 10 | %H |
A | For the period from 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 the 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 | 88 |
Table of Contents
Financial Highlights | ||||||||||||||||
Fidelity MSCI Telecommunication Services Index ETF | ||||||||||||||||
Year ended July 31, 2017 | 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 | $ | 32.10 | $ | 26.86 | $ | 26.98 | $ | 25.26 | ||||||||
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| |||||||||
Income from Investment Operations | ||||||||||||||||
Net investment income (loss)B | 0.80 | 0.78 | 0.78 | 0.72 | ||||||||||||
Net realized and unrealized gain (loss) | 0.62 | C | 5.11 | (0.09 | ) | 1.42 | ||||||||||
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Total from investment operations | 1.42 | 5.89 | 0.69 | 2.14 | ||||||||||||
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| |||||||||
Distributions from net investment income | (0.90 | ) | (0.65 | ) | (0.81 | ) | (0.42 | ) | ||||||||
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| |||||||||
Total distributions | (0.90 | ) | (0.65 | ) | (0.81 | ) | (0.42 | ) | ||||||||
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| |||||||||
Net asset value, end of period | $ | 32.62 | $ | 32.10 | $ | 26.86 | $ | 26.98 | ||||||||
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| |||||||||
Total ReturnD | 4.58 | % | 22.36 | % | 2.56 | % | 8.57 | % | ||||||||
Ratios to Average Net AssetsE | ||||||||||||||||
Expense before reductions | .08 | % | .12 | % | .12 | % | .12 | %F | ||||||||
Expenses net of fee waivers, if any | .08 | % | .12 | % | .12 | % | .12 | %F | ||||||||
Expenses net of all reductions | .08 | % | .12 | % | .12 | % | .12 | %F | ||||||||
Net investment income (loss) | 2.55 | % | 2.74 | % | 2.89 | % | 3.51 | %F | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000 omitted) | $ | 115,818 | $ | 174,940 | $ | 81,908 | $ | 67,447 | ||||||||
Portfolio turnover rateG,H | 27 | % | 26 | % | 23 | % | 21 | %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 the 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 |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||||||
Fidelity MSCI Utilities Index ETF | ||||||||||||||||
Year ended July 31, 2017 | 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 | $ | 33.57 | $ | 28.10 | $ | 26.88 | $ | 24.99 | ||||||||
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| |||||||||
Income from Investment Operations | ||||||||||||||||
Net investment income (loss)B | 1.06 | 0.98 | 0.98 | 0.67 | ||||||||||||
Net realized and unrealized gain (loss) | 1.09 | 5.48 | 1.47 | 1.85 | ||||||||||||
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| |||||||||
Total from investment operations | 2.15 | 6.46 | 2.45 | 2.52 | ||||||||||||
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| |||||||||
Distributions from net investment income | (1.08 | ) | (0.99 | ) | (1.23 | ) | (0.63 | ) | ||||||||
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| |||||||||
Total distributions | (1.08 | ) | (0.99 | ) | (1.23 | ) | (0.63 | ) | ||||||||
|
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| |||||||||
Net asset value, end of period | $ | 34.64 | $ | 33.57 | $ | 28.10 | $ | 26.88 | ||||||||
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| |||||||||
Total ReturnC | 6.61 | % | 23.56 | % | 9.13 | % | 10.13 | % | ||||||||
Ratios to Average Net AssetsD | ||||||||||||||||
Expense before reductions | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Expenses net of fee waivers, if any | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Expenses net of all reductions | .08 | % | .12 | % | .12 | % | .12 | %E | ||||||||
Net investment income (loss) | 3.22 | % | 3.25 | % | 3.37 | % | 3.15 | %E | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000 omitted) | $ | 277,149 | $ | 283,669 | $ | 108,176 | $ | 120,949 | ||||||||
Portfolio turnover rateF,G | 6 | % | 9 | % | 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 the 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 |
Table of Contents
For the year ended July 31, 2017
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 exchange-traded funds of Fidelity Covington Trust (the Trust) and are authorized to issue an unlimited number of shares. Each Fund, with the exception of MSCI Industrials Index ETF, is a non-diversified fund. 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.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. 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 Fair Value Committee (the Committee) established by the Fund’s investment adviser. 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 in these circumstances. 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, 2017, is included at the end of each applicable 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
91 | Annual Report |
Table of Contents
Notes to Financial Statements – continued
2. Significant Accounting Policies – continued
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 date. Certain distributions received by the Funds represent a return of capital or capital gain. The Funds determine the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
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 U.S. Federal income taxes is required. As of July 31, 2017 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. In addition, certain Funds claimed a portion of the payments made to redeeming shareholders as a distribution for income tax purposes.
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 and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period 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 | $ | 280,220,094 | $ | 37,613,017 | $ | (24,045,257 | ) | $ | 13,567,760 | |||||||
Fidelity MSCI Consumer Staples Index ETF | 299,541,057 | 18,997,614 | (6,548,800 | ) | 12,448,814 | |||||||||||
Fidelity MSCI Energy Index ETF | 512,206,501 | 8,132,206 | (89,296,058 | ) | (81,163,852 | ) | ||||||||||
Fidelity MSCI Financials Index ETF | 834,850,767 | 92,026,962 | (5,108,191 | ) | 86,918,771 | |||||||||||
Fidelity MSCI Health Care Index ETF | 750,366,384 | 107,904,390 | (39,451,363 | ) | 68,453,027 | |||||||||||
Fidelity MSCI Industrials Index ETF | 320,930,744 | 45,061,757 | (11,525,526 | ) | 33,536,231 | |||||||||||
Fidelity MSCI Information Technology Index ETF | 847,665,152 | 175,654,935 | (13,530,277 | ) | 162,124,658 | |||||||||||
Fidelity MSCI Materials Index ETF | 198,198,111 | 17,976,674 | (4,561,115 | ) | 13,415,559 | |||||||||||
Fidelity MSCI Real Estate Index ETF | 392,855,266 | 16,058,221 | (16,582,313 | ) | (524,092 | ) | ||||||||||
Fidelity MSCI Telecommunication Services Index ETF | 114,580,918 | 10,254,089 | (9,002,114 | ) | 1,251,975 | |||||||||||
Fidelity MSCI Utilities Index ETF | 265,200,892 | 15,329,427 | (3,447,363 | ) | 11,882,064 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
Undistributed ordinary income | Capital loss carryforward | Net unrealized appreciation (depreciation) | ||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 32,519 | $ | (4,192,463 | ) | $ | 13,567,760 | |||||
Fidelity MSCI Consumer Staples Index ETF | 497,742 | (859,948 | ) | 12,448,814 | ||||||||
Fidelity MSCI Energy Index ETF | 2,370,211 | (17,538,250 | ) | (81,163,852 | ) | |||||||
Fidelity MSCI Financials Index ETF | 538,871 | (1,553,239 | ) | 86,918,771 | ||||||||
Fidelity MSCI Health Care Index ETF | 1,079,808 | (3,919,047 | ) | 68,453,027 |
Annual Report | 92 |
Table of Contents
2. Significant Accounting Policies – continued
Undistributed ordinary income | Capital loss carryforward | Net unrealized appreciation (depreciation) | ||||||||||
Fidelity MSCI Industrials Index ETF | $ | 354,724 | $ | (2,509,084 | ) | $ | 33,536,231 | |||||
Fidelity MSCI Information Technology Index ETF | 551,089 | (2,922,670 | ) | 162,124,658 | ||||||||
Fidelity MSCI Materials Index ETF | 317,298 | (2,050,514 | ) | 13,415,559 | ||||||||
Fidelity MSCI Real Estate Index ETF | — | (1,160,808 | ) | (524,092 | ) | |||||||
Fidelity MSCI Telecommunication Services Index ETF | 5,200,202 | — | 1,251,975 | |||||||||
Fidelity MSCI Utilities Index ETF | 12,231 | (1,896,951 | ) | 11,882,064 |
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 | $ | (2,377,582 | ) | $ | (1,814,881 | ) | $ | (4,192,463 | ) | |||
Fidelity MSCI Consumer Staples Index ETF | (636,052 | ) | (223,896 | ) | (859,948 | ) | ||||||
Fidelity MSCI Energy Index ETF | (4,966,147 | ) | (12,572,103 | ) | (17,538,250 | ) | ||||||
Fidelity MSCI Financials Index ETF | (1,307,969 | ) | (245,270 | ) | (1,553,239 | ) | ||||||
Fidelity MSCI Health Care Index ETF | (3,574,216 | ) | (344,831 | ) | (3,919,047 | ) | ||||||
Fidelity MSCI Industrials Index ETF | (806,853 | ) | (1,702,231 | ) | (2,509,084 | ) | ||||||
Fidelity MSCI Information Technology Index ETF | (1,517,731 | ) | (1,404,939 | ) | (2,922,670 | ) | ||||||
Fidelity MSCI Materials Index ETF | (1,109,913 | ) | (940,601 | ) | (2,050,514 | ) | ||||||
Fidelity MSCI Real Estate Index ETF | (1,160,808 | ) | — | (1,160,808 | ) | |||||||
Fidelity MSCI Utilities Index ETF | (947,296 | ) | (949,655 | ) | (1,896,951 | ) |
Certain of the Funds intend to elect to defer to the next fiscal year capital losses recognized during the period November 1, 2016 to July 31, 2017. Loss deferrals were as follows:
Capital losses | ||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | (881,798 | ) | |
Fidelity MSCI Health Care Index ETF | (5,034,904 | ) | ||
Fidelity MSCI Materials Index ETF | (654,977 | ) |
The tax character of distributions paid was as follows:
July 31, 2017 | ||||||||||||||||
Ordinary income | Long-term capital gain | Tax return of capital | Total | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 3,848,250 | $ | — | $ | — | $ | 3,848,250 | ||||||||
Fidelity MSCI Consumer Staples Index ETF | 6,993,800 | — | — | 6,993,800 | ||||||||||||
Fidelity MSCI Energy Index ETF | 11,177,800 | — | — | 11,177,800 | ||||||||||||
Fidelity MSCI Financials Index ETF | 10,082,500 | — | — | 10,082,500 | ||||||||||||
Fidelity MSCI Health Care Index ETF | 9,330,050 | — | — | 9,330,050 | ||||||||||||
Fidelity MSCI Industrials Index ETF | 4,608,750 | — | — | 4,608,750 | ||||||||||||
Fidelity MSCI Information Technology Index ETF | 7,809,700 | — | — | 7,809,700 | ||||||||||||
Fidelity MSCI Materials Index ETF | 3,068,600 | — | — | 3,068,600 | ||||||||||||
Fidelity MSCI Real Estate Index ETF | 8,640,100 | — | — | 8,640,100 | ||||||||||||
Fidelity MSCI Telecommunication Services Index ETF | 3,777,050 | — | — | 3,777,050 | ||||||||||||
Fidelity MSCI Utilities Index ETF | 7,784,150 | — | — | 7,784,150 | ||||||||||||
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 |
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Notes to Financial Statements – continued
2. Significant Accounting Policies – continued
July 31, 2016 | ||||||||||||||||
Ordinary income | Long-term capital gain | Tax return of capital | Total | |||||||||||||
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 |
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 | $ | 18,456,205 | $ | 17,217,462 | ||||
Fidelity MSCI Consumer Staples Index ETF | 30,197,290 | 29,654,612 | ||||||
Fidelity MSCI Energy Index ETF | 46,956,815 | 44,413,264 | ||||||
Fidelity MSCI Financials Index ETF | 115,491,571 | 104,810,279 | ||||||
Fidelity MSCI Health Care Index ETF | 29,776,422 | 25,898,570 | ||||||
Fidelity MSCI Industrials Index ETF | 15,503,395 | 13,844,363 | ||||||
Fidelity MSCI Information Technology Index ETF | 44,383,035 | 37,274,694 | ||||||
Fidelity MSCI Materials Index ETF | 11,813,636 | 11,730,529 | ||||||
Fidelity MSCI Real Estate Index ETF | 47,439,930 | 41,155,510 | ||||||
Fidelity MSCI Telecommunication Services Index ETF | 36,813,860 | 36,682,768 | ||||||
Fidelity MSCI Utilities Index ETF | 15,736,930 | 15,351,519 |
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 | $ | 82,916,258 | $ | 80,538,913 | ||||
Fidelity MSCI Consumer Staples Index ETF | 96,588,319 | 70,452,603 | ||||||
Fidelity MSCI Energy Index ETF | 100,234,714 | 79,472,520 | ||||||
Fidelity MSCI Financials Index ETF | 623,632,619 | 57,763,493 | ||||||
Fidelity MSCI Health Care Index ETF | 185,858,765 | 63,830,230 | ||||||
Fidelity MSCI Industrials Index ETF | 186,012,176 | 26,998,161 | ||||||
Fidelity MSCI Information Technology Index ETF | 466,792,162 | 55,300,423 | ||||||
Fidelity MSCI Materials Index ETF | 121,880,940 | 54,420,047 | ||||||
Fidelity MSCI Real Estate Index ETF | 315,044,205 | 99,582,936 | ||||||
Fidelity MSCI Telecommunication Services Index ETF | 33,536,414 | 89,559,981 | ||||||
Fidelity MSCI Utilities Index ETF | 124,609,899 | 133,626,260 |
4. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity SelectCo, LLC (SelectCo) provides the Funds with investment management related services for which the Funds pay a monthly management fee that is based on an annual rate of .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 amount shown in the Purchases and Sales of Investments note.
Other. During the period, the investment adviser reimbursed the Real Estate Index ETF for certain losses in the amount of $27,610.
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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.
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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, 2017, 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, 2017, 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, 2017, 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, 2017
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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, 2017 | ||||||||||||
From commencement of operations* to July 31, 2017 | 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 | 367 | 38.71 | % | 574 | 60.55 | % | ||||||
25 – <50 | 3 | 0.32 | % | 4 | 0.42 | % | ||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 370 | 39.03 | % | 578 | 60.97 | % |
* | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
Fidelity MSCI Consumer Staples Index ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations* to July 31, 2017 | 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 | 308 | 32.48 | % | 638 | 67.30 | % | ||||||
25 – <50 | 1 | 0.11 | % | 1 | 0.11 | % | ||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 309 | 32.59 | % | 639 | 67.41 | % |
* | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
Fidelity MSCI Energy Index ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations* to July 31, 2017 | 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 | 239 | 25.21 | % | 703 | 74.15 | % | ||||||
25 – <50 | 0 | — | 4 | 0.42 | % | |||||||
50 – <75 | 0 | — | 1 | 0.11 | % | |||||||
75 – <100 | 0 | — | 1 | 0.11 | % | |||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 239 | 25.21 | % | 709 | 74.79 | % |
* | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
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Premium/Discount Analysis (Unaudited) – continued
Fidelity MSCI Financials Index ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations * to July 31, 2017 | 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 | 274 | 28.90 | % | 670 | 70.67 | % | ||||||
25 – <50 | 1 | 0.11 | % | 3 | 0.32 | % | ||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 275 | 29.01 | % | 673 | 70.99 | % |
* | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
Fidelity MSCI Health Care Index ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations * to July 31, 2017 | 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 | 276 | 29.11 | % | 667 | 70.36 | % | ||||||
25 – <50 | 0 | — | 5 | 0.53 | % | |||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 276 | 29.11 | % | 672 | 70.89 | % |
* | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
Fidelity MSCI Industrials Index ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations * to July 31, 2017 | 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 | 349 | 36.82 | % | 593 | 62.55 | % | ||||||
25 – <50 | 2 | 0.21 | % | 4 | 0.42 | % | ||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 351 | 37.03 | % | 597 | 62.97 | % |
* | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
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Fidelity MSCI Information Technology Index ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations * to July 31, 2017 | 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 | 239 | 25.21 | % | 708 | 74.68 | % | ||||||
25 – <50 | 0 | — | 1 | 0.11 | % | |||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 239 | 25.21 | % | 709 | 74.79 | % |
* | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
Fidelity MSCI Materials Index ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations * to July 31, 2017 | 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 | 373 | 39.35 | % | 559 | 58.97 | % | ||||||
25 – <50 | 6 | 0.63 | % | 8 | 0.84 | % | ||||||
50 – <75 | 0 | — | 2 | 0.21 | % | |||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 379 | 39.98 | % | 569 | 60.02 | % |
* | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
Fidelity MSCI Real Estate Index ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations * to July 31, 2017 | 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 | 156 | 24.92 | % | 438 | 69.97 | % | ||||||
25 – <50 | 3 | 0.48 | % | 23 | 3.67 | % | ||||||
50 – <75 | 2 | 0.32 | % | 2 | 0.32 | % | ||||||
75 – <100 | 0 | — | 1 | 0.16 | % | |||||||
100 or above | 1 | 0.16 | % | 0 | — | |||||||
Total | 162 | 25.88 | % | 464 | 74.12 | % |
* | From February 5, 2015, date initially listed on the NYSE ARCA exchange. |
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Premium/Discount Analysis (Unaudited) – continued
Fidelity MSCI Telecommunication Services Index ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations * to July 31, 2017 | 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 | 437 | 46.10 | % | 477 | 50.31 | % | ||||||
25 – <50 | 13 | 1.37 | % | 16 | 1.69 | % | ||||||
50 – <75 | 4 | 0.42 | % | 1 | 0.11 | % | ||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 454 | 47.89 | % | 494 | 52.11 | % |
* | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
Fidelity MSCI Utilities Index ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations * to July 31, 2017 | 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 | 356 | 37.55 | % | 585 | 61.70 | % | ||||||
25 – <50 | 3 | 0.32 | % | 3 | 0.32 | % | ||||||
50 – <75 | 0 | — | 1 | 0.11 | % | |||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 359 | 37.87 | % | 589 | 62.13 | % |
* | From October 24, 2013, date initially listed on the NYSE ARCA exchange. |
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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 90 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.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-FIDELITY.
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 FMR and its affiliates with (i) identifying events or
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Trustees and Officers (Unaudited) – continued
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 FMR, 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 but not limited to the funds’ Chief Compliance Officer (CCO), FMR’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.”
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 (UK) 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 FMR. |
+ | 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 the oil refining, drilling and marketing of petroleum products (including specialty petroleum products), 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) and serves as its President and CEO. 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. Mr. Rosow served 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). |
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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 (if any) 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 Fidelity SelectCo, LLC (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 Trustee or 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 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). |
Carol B. Tomé (1957) |
Year of Election or Appointment: 2017 |
Member of the Advisory Board |
Ms. Tomé also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations. |
Elizabeth Paige Baumann (1968) |
Year of Election or Appointment: 2017 |
Anti-Money Laundering (AML) Officer |
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC. |
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Trustees and Officers (Unaudited) – continued
Name, Year of Birth; Principal Occupation |
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 (UK) 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). |
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 MoneyManagement, 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 a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), 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). |
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Name, Year of Birth; Principal Occupation |
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). |
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 (UK) 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). |
Rieco E. Mello (1969) |
Year of Election or Appointment: 2017 |
Assistant Treasurer |
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello is an employee of Fidelity Investments (1995-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 (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016). |
Marc L. Spector (1972) |
Year of Election or Appointment: 2017 |
Assistant Treasurer |
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013). |
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). |
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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, 2017 to July 31, 2017).
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, 2017 | Ending Account Value July 31, 2017 | Expenses Paid During PeriodB February 1, 2017 to July 31, 2017 | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,086.10 | $ | 0.41 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Consumer Staples Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,063.60 | $ | 0.41 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Energy Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 910.10 | $ | 0.38 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Financials Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,075.90 | $ | 0.41 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Health Care Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,145.10 | $ | 0.43 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Industrials Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,074.80 | $ | 0.41 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Information Technology Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,163.50 | $ | 0.43 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 |
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Annualized Expense RatioA | Beginning Account Value February 1, 2017 | Ending Account Value July 31, 2017 | Expenses Paid During PeriodB February 1, 2017 to July 31, 2017 | |||||||||||||
Fidelity MSCI Materials Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,056.80 | $ | 0.41 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Real Estate Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,063.90 | $ | 0.41 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Telecommunication Services Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,028.80 | $ | 0.40 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Utilities Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,098.90 | $ | 0.42 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 |
A | Annualized expense ratio reflects expenses net of applicable fee waivers. |
B | Expense are equal to each Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
C | 5% return per year before expenses. |
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A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividend-received deduction for corporate shareholders:
September 2016 | December 2016 | March 2017 | June 2017 | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | 84 | % | 84 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Consumer Staples Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Energy Index ETF | 94 | % | 94 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Financials Index ETF | 82 | % | 82 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Health Care Index ETF | 98 | % | 98 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Industrials Index ETF | 94 | % | 94 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Information Technology Index ETF | 95 | % | 95 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Materials Index ETF | 94 | % | 94 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Real Estate Index ETF | — | — | 1 | % | 1 | % | ||||||||||
Fidelity MSCI Telecommunication Services Index ETF | 100 | % | 100 | % | 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 2016 | December 2016 | March 2017 | June 2017 | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | 86 | % | 86 | % | 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 | 88 | % | 88 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Health Care Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Industrials Index ETF | 98 | % | 98 | % | 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 | — | — | 1 | % | 1 | % | ||||||||||
Fidelity MSCI Telecommunication Services Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Utilities Index ETF | 100 | % | 100 | % | 100 | % | 100 | % |
The funds will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
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EXT-ANN-0917 812880.1.0 1.9584796.103 | Corporate Headquarters 245 Summer St., Boston, MA 02210 www.fidelity.com |
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Fidelity® Core Dividend ETF (To be renamed Fidelity High Dividend ETF effective November 9, 2017)
Fidelity Dividend ETF for Rising Rates
Fidelity Low Volatility Factor ETF
Fidelity Momentum Factor ETF
Fidelity Quality Factor ETF
Fidelity Value Factor ETF
Annual Report July 31, 2017
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Contents
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.
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.
© 2017 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, http://www.advisor.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 |
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The U.S. equity bellwether S&P 500® index gained 16.04% for the year ending July 31, 2017, rising sharply following the November election and continuing to rally through the end of February on optimism for President Trump’s pro-business agenda. Equity markets leveled off, however, as the fledgling administration faced the first test of its domestic agenda. Stocks reacted with uncertainty to efforts by Congress in March to repeal and replace the Affordable Care Act, and then reverted upward through July 31. Growth stocks surged ahead of value, while small-caps’ advantage over large-caps narrowed. Sector-wise, financials (+36%) fared best, riding an uptick in bond yields and a surge in banks, particularly post-election. Information technology gained 29%, as a handful of major index constituents posted stellar returns. Industrials (+18%) was boosted by a call for increased infrastructure spending. Consumer discretionary (+14%) slightly lagged the broader market because brick-and-mortar retailers continued to suffer from increased online competition. Energy (0%) was hurt by low oil prices. Utilities (+6%), consumer staples (+4%), telecommunication services (-7%) and real estate (-2%) all struggled amid an improved backdrop for riskier assets that curbed demand for dividend-rich sectors, as well as the likelihood of further interest rate hikes later in 2017.
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Fidelity® Core Dividend ETF
The information provided in the tables below shows you the performance of Fidelity® Core Dividend 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 cumulative 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/factor-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 Period Ended July 31, 2017 | ||||
Cumulative Total Returns | Life of fund | |||
Fidelity Core Dividend ETF – NAVA | 9.61% | |||
Fidelity Core Dividend ETF – Market PriceB | 10.50% | |||
Fidelity Core Dividend IndexA | 9.96% |
Cumulative total returns reflect performance over the period shown. This information represents returns as of the end of the fund’s fiscal period.
Period Ended June 30, 2017 | ||||
Cumulative Total Returns | Life of fund | |||
Fidelity Core Dividend ETF – NAVA | 8.84% | |||
Fidelity Core Dividend ETF – Market PriceB | 9.58% | |||
Fidelity Core Dividend IndexA | 9.13% |
This information shows the returns of the fund and its index for the applicable time period through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
Average annual total returns take Fidelity Core Dividend ETF’s cumulative total return and show you what would have happened if Fidelity Core Dividend ETF’s shares had performed at a constant rate each year. These numbers will be reported once the fund is a year old.
A | From September 12, 2016. |
B | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
The fund’s expense ratio is 0.29%. 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.
Annual Report | 4 |
Table of Contents
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity Core Dividend ETF – NAV on September 12, 2016, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Fidelity Core Dividend Index performed over the same period.
5 | Annual Report |
Table of Contents
Fidelity® Core Dividend ETF
Management’s Discussion of Fund Performance
From inception on September 12, 2016, through July 31, 2017, the exchange-traded fund’s (ETF) net asset value rose 9.61% and its market price gained 10.50%, each roughly in line with the 9.96% return of the Fidelity Core Dividend Index. Most sectors in the Fidelity index gained in value, led by industrials. Several information technology stocks also performed strongly, including Apple, which reported strong sales of its iPhone® mobile devices, as well as Microsoft, lifted by strong profits and its growing cloud-computing operations. In the financials sector, another source of strength, banks such as JPMorgan Chase and Citigroup benefited from expectations for higher interest rates. In contrast, the biggest individual detractor was Frontier Communications, a telecommunication services provider whose shares returned roughly -75% due to disappointing financial results and declines in subscribers. Also detracting was toy manufacturer Mattel, which reported much weaker-than-expected sales.
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 Geode Capital Management, LLC, (the ETF’s subadviser) or any other person in the Geode organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and Geode 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 November 9, 2017, the strategy’s name will change to Fidelity High Dividend ETF to better reflect it’s existing focus on high-dividend-paying stocks. At the same time, the fund’s primary benchmark will change from Fidelity Core Dividend Index to Fidelity High Dividend Index.
Investment Summary
Top Ten Stocks as of July 31, 2017 | ||||
% of fund’s net assets | ||||
Apple, Inc. | 4.9 | |||
Microsoft Corp. | 3.9 | |||
JPMorgan Chase & Co. | 2.8 | |||
AT&T, Inc. | 2.6 | |||
Verizon Communications, Inc. | 2.5 | |||
Bank of America Corp. | 2.4 | |||
Citigroup, Inc. | 2.4 | |||
Wells Fargo & Co. | 2.2 | |||
Cisco Systems, Inc. | 2.0 | |||
Intel Corp. | 1.9 | |||
|
| |||
27.6 | ||||
|
|
Top Market Sectors as of July 31, 2017 | ||||
% of fund’s net assets | ||||
Information Technology | 28.8 | |||
Financials | 22.1 | |||
Consumer Discretionary | 18.9 | |||
Real Estate | 10.0 | |||
Telecommunication Services | 7.2 | |||
Health Care | 6.8 | |||
Industrials | 3.9 | |||
Consumer Staples | 2.0 | |||
Energy | 0.1 |
Asset Allocation as of July 31, 2017 |
* | Foreign investments – 8.8% |
Annual Report | 6 |
Table of Contents
Fidelity® Dividend ETF for Rising Rates
Performance
The information provided in the tables below shows you the performance of Fidelity® Dividend ETF For Rising Rates, 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 cumulative 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/factor-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 Period Ended July 31, 2017 | ||||
Cumulative Total Returns | Life of fund | |||
Fidelity Dividend ETF for Rising Rates – NAVA | 14.85% | |||
Fidelity Dividend ETF for Rising Rates – Market PriceB | 15.50% | |||
Fidelity Dividend Index for Rising RatesA | 15.26% |
Cumulative total returns reflect performance over the period shown. This information represents returns as of the end of the fund’s fiscal period.
Period Ended June 30, 2017 | ||||
Cumulative Total Returns | Life of fund | |||
Fidelity Dividend ETF for Rising Rates – NAVA | 13.56% | |||
Fidelity Dividend ETF for Rising Rates – Market PriceB | 14.28% | |||
Fidelity Dividend Index for Rising RatesA | 13.91% |
This information shows the returns of the fund and its index for the applicable time period through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
Average annual total returns take Fidelity Dividend ETF For Rising Rates’s cumulative total return and show you what would have happened if Fidelity Dividend ETF For Rising Rates’s shares had performed at a constant rate each year. These numbers will be reported once the fund is a year old.
A | From September 12, 2016. |
B | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
The fund’s expense ratio is 0.29%. 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.
7 | Annual Report |
Table of Contents
Fidelity® Dividend ETF for Rising Rates
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity Dividend ETF For Rising Rates – NAV on September 12, 2016, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Fidelity Dividend Index For Rising Rates performed over the same period.
Annual Report | 8 |
Table of Contents
Fidelity® Dividend ETF for Rising Rates
Management’s Discussion of Fund Performance
From inception on September 12, 2016, through July 31, 2017, the exchange-traded fund’s (ETF) net asset value rose 14.85% and its market price gained 15.50%, each roughly in line with the 15.26% return of the Fidelity Dividend Index for Rising Rates. This index tracks the performance of companies that are expected to continue to pay and increase their dividends, and also have returns that historically have been correlated with increasing 10-year U.S. Treasury yields. Most sectors in the Fidelity index gained in value, including information technology. Here, Apple shares rose after the company reported strong sales of its iPhone® mobile devices. Microsoft shares advanced due to healthy profits and its growing cloud-computing operations. Also, growing demand for data-storage solutions lifted hard-drive manufacturer Western Digital. In financials, banks JPMorgan Chase and Citigroup benefited from expectations for higher interest rates. In contrast, shares of industrial conglomerate General Electric and toy manufacturer Mattel each struggled due to worse-than-anticipated revenue. Elsewhere, L Brands, parent of Victoria’s Secret, returned about -33%, hampered by disappointing same-store sales.
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 Geode Capital Management, LLC, (the ETF’s subadviser) or any other person in the Geode organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and Geode 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, 2017 | ||||
% of fund’s net assets | ||||
Apple, Inc. | 4.3 | |||
Microsoft Corp. | 3.3 | |||
Johnson & Johnson | 3.0 | |||
JPMorgan Chase & Co. | 2.2 | |||
Merck & Co., Inc. | 2.0 | |||
Amgen, Inc. | 1.9 | |||
AbbVie, Inc. | 1.9 | |||
Exxon Mobil Corp. | 1.9 | |||
Bank of America Corp. | 1.8 | |||
Bristol-Myers Squibb Co. Class A | 1.8 | |||
|
| |||
24.1 | ||||
|
|
Top Market Sectors as of July 31, 2017 | ||||
% of fund’s net assets | ||||
Information Technology | 21.8 | |||
Financials | 15.0 | |||
Health Care | 13.6 | |||
Consumer Discretionary | 12.0 | |||
Industrials | 10.4 | |||
Consumer Staples | 8.6 | |||
Energy | 6.4 | |||
Real Estate | 3.7 | |||
Materials | 3.1 | |||
Utilities | 3.1 |
Asset Allocation as of July 31, 2017 |
* | Foreign investments – 8.9% |
9 | Annual Report |
Table of Contents
Fidelity® Low Volatility Factor ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® Low Volatility Factor 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 cumulative 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/factor-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 Period Ended July 31, 2017 | ||||
Cumulative Total Returns | Life of fund | |||
Fidelity Low Volatility Factor ETF – NAVA | 12.94% | |||
Fidelity Low Volatility Factor ETF – Market PriceB | 14.02% | |||
Fidelity U.S. Low Volatility Factor IndexA | 13.30% |
Cumulative total returns reflect performance over the period shown. This information represents returns as of the end of the fund’s fiscal period.
Period Ended June 30, 2017 | ||||
Cumulative Total Returns | Life of fund | |||
Fidelity Low Volatility Factor ETF – NAVA | 11.09% | |||
Fidelity Low Volatility Factor ETF – Market PriceB | 12.18% | |||
Fidelity U.S. Low Volatility Factor IndexA | 11.37% |
This information shows the returns of the fund and its index for the applicable time period through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
Average annual total returns take Fidelity Low Volatility Factor ETF’s cumulative total return and show you what would have happened if Fidelity Low Volatility Factor ETF’s shares had performed at a constant rate each year. These numbers will be reported once the fund is a year old.
A | From September 12, 2016. |
B | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
The fund’s expense ratio is 0.29%. 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.
Annual Report | 10 |
Table of Contents
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity Low Volatility Factor ETF – NAV on September 12, 2016, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Fidelity U.S. Low Volatility Factor Index performed over the same period.
11 | Annual Report |
Table of Contents
Fidelity® Low Volatility Factor ETF
Management’s Discussion of Fund Performance
From inception on September 12, 2016, through July 31, 2017, the exchange-traded fund’s (ETF) net asset value rose 12.94% and its market price gained 14.02%, each close to in line with the 13.30% return of the Fidelity U.S. Low Volatility Factor Index, which tracks the performance of U.S. companies with lower volatility than the broader market. All sectors in the Fidelity index gained in value, including information technology. Here, Microsoft shares advanced due to healthy profits and its growing cloud-computing operations. Alphabet, parent company of internet search leader Google, also performed well, producing better-than-expected financial results on healthy growth in advertising revenue. In the health care sector, insurers UnitedHealth Group and Anthem each generated strong share-price performance, largely driven by their earnings. Elsewhere, McDonald’s shares rose, as the restaurant company reported growth in same-store sales. In contrast, difficult business conditions weighed on retailers AutoZone and Target, as well as auto-parts distributor Genuine Parts. The challenging environment for retailers also provided a headwind for mall owner Simon Property Group, which returned -21%.
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 Geode Capital Management, LLC, (the ETF’s subadviser) or any other person in the Geode organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and Geode 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, 2017 | ||||
% of fund’s net assets | ||||
Microsoft Corp. | 3.3 | |||
Alphabet, Inc. Class A | 3.2 | |||
Johnson & Johnson | 2.4 | |||
Berkshire Hathaway, Inc. Class B | 2.1 | |||
Visa, Inc. Class A | 1.7 | |||
Wells Fargo & Co. | 1.7 | |||
UnitedHealth Group, Inc. | 1.7 | |||
Oracle Corp. | 1.6 | |||
Pfizer, Inc. | 1.6 | |||
Exxon Mobil Corp. | 1.6 | |||
|
| |||
20.9 | ||||
|
|
Top Market Sectors as of July 31, 2017 | ||||
% of fund’s net assets | ||||
Information Technology | 22.6 | |||
Financials | 14.8 | |||
Health Care | 13.7 | |||
Consumer Discretionary | 11.3 | |||
Industrials | 10.7 | |||
Consumer Staples | 8.5 | |||
Energy | 5.6 | |||
Real Estate | 3.8 | |||
Materials | 3.3 | |||
Utilities | 3.2 |
Asset Allocation as of July 31, 2017 |
* | Foreign investments – 9.0% |
Annual Report | 12 |
Table of Contents
Fidelity® Momentum Factor ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® Momentum Factor 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 cumulative 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/factor-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 Period Ended July 31, 2017 | ||||
Cumulative Total Returns | Life of fund | |||
Fidelity Momentum Factor ETF – NAVA | 14.11% | |||
Fidelity Momentum Factor ETF – Market PriceB | 14.94% | |||
Fidelity U.S. Momentum Factor IndexA | 14.43% |
Cumulative total returns reflect performance over the period shown. This information represents returns as of the end of the fund’s fiscal period.
Period Ended June 30, 2017 | ||||
Cumulative Total Returns | Life of fund | |||
Fidelity Momentum Factor ETF – NAVA | 11.12% | |||
Fidelity Momentum Factor ETF – Market PriceB | 12.06% | |||
Fidelity U.S. Momentum Factor IndexA | 11.39% |
This information shows the returns of the fund and its index for the applicable time period through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
Average annual total returns take Fidelity Momentum Factor ETF’s cumulative total return and show you what would have happened if Fidelity Momentum Factor ETF’s shares had performed at a constant rate each year. These numbers will be reported once the fund is a year old.
A | From September 12, 2016. |
B | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
The fund’s expense ratio is 0.29%. 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.
13 | Annual Report |
Table of Contents
Fidelity® Momentum Factor ETF
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity Momentum Factor ETF – NAV on September 12, 2016, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Fidelity U.S. Momentum Factor Index performed over the same period.
Annual Report | 14 |
Table of Contents
Fidelity® Momentum Factor ETF
Management’s Discussion of Fund Performance
From inception on September 12, 2016, through July 31, 2017, the exchange-traded fund’s (ETF) net asset value rose 14.11% and its market price gained 14.94%, each roughly in line with the 14.43% return of the Fidelity U.S. Momentum Factor Index, which tracks the performance of U.S. companies with positive momentum signals. Most sectors in the Fidelity index gained in value, including information technology. Here, shares of Nvidia, maker of graphics processors, rose 171%, reflecting the company’s strong earnings and business gains. Microsoft shares advanced on healthy profits from the software maker’s cloud-computing operations. Elsewhere, health insurer UnitedHealth Group reported better-than-expected earnings, driving share gains, while online retail giant Amazon.com ‘s shares benefited from the company’s dominant competitive position. In contrast, the biggest individual detractor of the period was biotechnology company Tesaro, whose shares fell sharply in March after a competing treatment for ovarian cancer fared well in a late-stage drug trial. Also in health care, shares of Edwards Lifesciences, which makes medical equipment for cardiac health, plunged in October 2016, after the company reported disappointing quarterly sales.
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 Geode Capital Management, LLC, (the ETF’s subadviser) or any other person in the Geode organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and Geode 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, 2017 | ||||
% of fund’s net assets | ||||
Apple, Inc. | 4.0 | |||
Microsoft Corp. | 3.1 | |||
Alphabet, Inc. Class A | 3.0 | |||
Johnson & Johnson | 2.5 | |||
Amazon.com, Inc. | 2.2 | |||
Berkshire Hathaway, Inc. Class B | 1.9 | |||
JPMorgan Chase & Co. | 1.9 | |||
UnitedHealth Group, Inc. | 1.8 | |||
Merck & Co., Inc. | 1.7 | |||
NVIDIA Corp. | 1.6 | |||
|
| |||
23.7 | ||||
|
|
Top Market Sectors as of July 31, 2017 | ||||
% of fund’s net assets | ||||
Information Technology | 22.9 | |||
Financials | 14.5 | |||
Health Care | 13.7 | |||
Consumer Discretionary | 12.8 | |||
Industrials | 10.8 | |||
Consumer Staples | 7.5 | |||
Energy | 5.5 | |||
Real Estate | 3.8 | |||
Materials | 3.2 | |||
Utilities | 3.2 |
Asset Allocation as of July 31, 2017 |
* | Foreign investments – 1.9% |
15 | Annual Report |
Table of Contents
Fidelity® Quality Factor ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® Quality Factor 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 cumulative 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/factor-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 Period Ended July 31, 2017 | ||||
Cumulative Total Returns | Life of fund | |||
Fidelity Quality Factor ETF – NAVA | 16.10% | |||
Fidelity Quality Factor ETF – Market PriceB | 16.70% | |||
Fidelity U.S. Quality Factor IndexA | 16.48% |
Cumulative total returns reflect performance over the period shown. This information represents returns as of the end of the fund’s fiscal period.
Period Ended June 30, 2017 | ||||
Cumulative Total Returns | Life of fund | |||
Fidelity Quality Factor ETF – NAVA | 13.99% | |||
Fidelity Quality Factor ETF – Market PriceB | 14.54% | |||
Fidelity U.S. Quality Factor IndexA | 14.31% |
This information shows the returns of the fund and its index for the applicable time period through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
Average annual total returns take Fidelity Quality Factor ETF’s cumulative total return and show you what would have happened if Fidelity Quality Factor ETF’s shares had performed at a constant rate each year. These numbers will be reported once the fund is a year old.
A | From September 12, 2016. |
B | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
The fund’s expense ratio is 0.29%. 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.
Annual Report | 16 |
Table of Contents
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity Quality Factor ETF – NAV on September 12, 2016, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Fidelity U.S. Quality Factor Index performed over the same period.
17 | Annual Report |
Table of Contents
Fidelity® Quality Factor ETF
Management’s Discussion of Fund Performance
From inception on September 12, 2016, through July 31, 2017, the exchange-traded fund’s (ETF) net asset value rose 16.10% and its market price gained 16.70%, each roughly in line with the 16.48% return of the Fidelity U.S. Quality Factor Index, which tracks the performance of U.S. companies with a higher quality profile than the broader market. Most sectors in the Fidelity index gained in value, including information technology. Here, Apple shares rose after the company reported strong sales of its iPhone® mobile devices. Microsoft shares advanced due to healthy profits and its growing cloud-computing operations. Alphabet, parent company of internet search leader Google, also performed well, producing better-than-expected financial results on healthy growth in advertising revenue. Elsewhere, aircraft manufacturer Boeing and financial services company Morgan Stanley contributed. In contrast, difficult business conditions weighed on retailers O’Reilly Automotive and Michael Kors Holdings, as well as mall owner Simon Property Group. Further weighing on performance was Ensco, a U.K.-based offshore energy driller whose shares returned about -48% for the period.
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 Geode Capital Management, LLC, (the ETF’s subadviser) or any other person in the Geode organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and Geode 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, 2017 | ||||
% of fund’s net assets | ||||
Apple, Inc. | 4.0 | |||
Microsoft Corp. | 3.0 | |||
Alphabet, Inc. Class A | 2.9 | |||
Johnson & Johnson | 2.4 | |||
Facebook, Inc. Class A | 2.4 | |||
Wells Fargo & Co. | 1.7 | |||
Exxon Mobil Corp. | 1.7 | |||
Pfizer, Inc. | 1.6 | |||
The Home Depot, Inc. | 1.5 | |||
The Procter & Gamble Co. | 1.5 | |||
|
| |||
22.7 | ||||
|
|
Top Market Sectors as of July 31, 2017 | ||||
% of fund’s net assets | ||||
Information Technology | 22.6 | |||
Financials | 14.7 | |||
Health Care | 13.4 | |||
Consumer Discretionary | 12.1 | |||
Industrials | 11.0 | |||
Consumer Staples | 8.1 | |||
Energy | 5.6 | |||
Real Estate | 3.9 | |||
Materials | 3.3 | |||
Utilities | 3.2 |
Asset Allocation as of July 31, 2017 |
* | Foreign investments – 3.9% |
Annual Report | 18 |
Table of Contents
Fidelity® Value Factor ETF
Performance
The information provided in the tables below shows you the performance of Fidelity® Value Factor 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 cumulative 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/factor-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 Period Ended July 31, 2017 | ||||
Cumulative Total Returns | Life of fund | |||
Fidelity Value Factor ETF – NAVA | 18.65% | |||
Fidelity Value Factor ETF – Market PriceB | 19.37% | |||
Fidelity U.S. Value Factor IndexA | 19.01% |
Cumulative total returns reflect performance over the period shown. This information represents returns as of the end of the fund’s fiscal period.
Period Ended June 30, 2017 | ||||
Cumulative Total Returns | Life of fund | |||
Fidelity Value Factor ETF – NAVA | 16.30% | |||
Fidelity Value Factor ETF – Market PriceB | 16.96% | |||
Fidelity U.S. Value Factor IndexA | 16.62% |
This information shows the returns of the fund and its index for the applicable time period through the end of the most recent calendar quarter, as opposed to through the end of the fund’s fiscal period.
Average annual total returns take Fidelity Value Factor ETF’s cumulative total return and show you what would have happened if Fidelity Value Factor ETF’s shares had performed at a constant rate each year. These numbers will be reported once the fund is a year old.
A | From September 12, 2016. |
B | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
* | Total returns are historical and include changes in share price and reinvestment of dividends and capital gains distributions, if any. |
The fund’s expense ratio is 0.29%. 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.
19 | Annual Report |
Table of Contents
Fidelity® Value Factor ETF
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity Value Factor ETF – NAV on September 12, 2016, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Fidelity U.S. Value Factor Index performed over the same period.
Annual Report | 20 |
Table of Contents
Fidelity® Value Factor ETF
Management’s Discussion of Fund Performance
From inception on September 12, 2016, through July 31, 2017, the exchange-traded fund’s (ETF) net asset value rose 18.65% and its market price gained 19.37%, each roughly in line with the 19.01% return of the Fidelity U.S. Value Factor Index, which tracks the performance of attractively valued stocks. Every sector in the Fidelity index gained in value, including information technology. Here, Apple shares rose after the company reported strong sales of its iPhone® mobile devices. Microsoft shares advanced due to healthy profits and its growing cloud-computing operations. Alphabet, parent company of internet search leader Google, also performed well, producing better-than-expected financial results on healthy growth in advertising revenue. In the financials sector, banks such as JPMorgan Chase, Bank of America and Citigroup benefited from expectations for higher interest rates. In contrast, difficult business conditions hurt retailers Bed Bath & Beyond, Michael Kors Holdings and Target. Further weighing on performance was Chicago Bridge & Iron, an engineering and construction company whose shares returned about -33% for the period.
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 Geode Capital Management, LLC, (the ETF’s subadviser) or any other person in the Geode organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and Geode 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, 2017 | ||||
% of fund’s net assets | ||||
Apple, Inc. | 4.0 | |||
Microsoft Corp. | 3.0 | |||
Alphabet, Inc. Class A | 3.0 | |||
Johnson & Johnson | 2.4 | |||
Berkshire Hathaway, Inc. Class B | 1.9 | |||
JPMorgan Chase & Co. | 1.9 | |||
Pfizer, Inc. | 1.6 | |||
Exxon Mobil Corp. | 1.6 | |||
The Boeing Co. | 1.6 | |||
McDonald’s Corp. | 1.6 | |||
|
| |||
22.6 | ||||
|
|
Top Market Sectors as of July 31, 2017 | ||||
% of fund’s net assets | ||||
Information Technology | 22.2 | |||
Financials | 14.7 | |||
Health Care | 13.7 | |||
Consumer Discretionary | 11.8 | |||
Industrials | 10.5 | |||
Consumer Staples | 8.7 | |||
Energy | 5.9 | |||
Real Estate | 3.7 | |||
Utilities | 3.3 | |||
Materials | 3.2 |
Asset Allocation as of July 31, 2017 |
* | Foreign investments – 7.0% |
21 | Annual Report |
Table of Contents
Fidelity Core Dividend ETF
Showing Percentage of Net Assets
Common Stocks – 99.8% |
Shares | Value | |||||||
CONSUMER DISCRETIONARY – 18.9% | ||||||||
Automobiles – 2.2% | ||||||||
Ford Motor Co. | 54,735 | $ | 614,127 | |||||
General Motors Co. | 18,937 | 681,353 | ||||||
|
| |||||||
1,295,480 | ||||||||
|
| |||||||
Diversified Consumer Services – 1.4% | ||||||||
H&R Block, Inc. | 26,529 | 809,134 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure – 6.1% | ||||||||
Cracker Barrel Old Country Store, Inc. (a) | 3,570 | 554,957 | ||||||
Crown Resorts Ltd. | 63,318 | 644,324 | ||||||
Las Vegas Sands Corp. | 11,574 | 713,074 | ||||||
McDonald’s Corp. | 6,586 | 1,021,752 | ||||||
Yum! Brands, Inc. | 9,267 | 699,473 | ||||||
|
| |||||||
3,633,580 | ||||||||
|
| |||||||
Leisure Products – 0.7% | ||||||||
Mattel, Inc. | 22,206 | 444,564 | ||||||
|
| |||||||
Media – 1.9% | ||||||||
Twenty-First Century Fox, Inc. Class A | 21,413 | 623,119 | ||||||
Viacom, Inc. Class B | 14,134 | 493,559 | ||||||
|
| |||||||
1,116,678 | ||||||||
|
| |||||||
Multiline Retail – 2.7% | ||||||||
Kohl’s Corp. (a) | 14,263 | 589,775 | ||||||
Macy’s, Inc. | 18,675 | 443,532 | ||||||
Target Corp. | 10,069 | 570,610 | ||||||
|
| |||||||
1,603,917 | ||||||||
|
| |||||||
Specialty Retail – 3.9% | ||||||||
Best Buy Co., Inc. | 13,101 | 764,312 | ||||||
L Brands, Inc. | 9,885 | 458,565 | ||||||
The Home Depot, Inc. | 7,128 | 1,066,349 | ||||||
|
| |||||||
2,289,226 | ||||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY | 11,192,579 | |||||||
|
| |||||||
CONSUMER STAPLES – 2.0% | ||||||||
Beverages – 0.3% | ||||||||
PepsiCo, Inc. | 1,584 | 184,710 | ||||||
|
| |||||||
Food & Staples Retailing – 0.4% | ||||||||
Kesko Oyj | 1,637 | 82,805 | ||||||
Wal-Mart Stores, Inc. | 2,032 | 162,540 | ||||||
|
| |||||||
245,345 | ||||||||
|
| |||||||
Food Products – 0.3% | ||||||||
General Mills, Inc. | 1,579 | 87,887 | ||||||
The Kraft Heinz Co. | 1,207 | 105,564 | ||||||
|
| |||||||
193,451 | ||||||||
|
| |||||||
Household Products – 0.4% | ||||||||
The Procter & Gamble Co. | 2,424 | 220,148 | ||||||
|
| |||||||
Tobacco – 0.6% | ||||||||
Altria Group, Inc. | 2,194 | 142,544 |
Shares | Value | |||||||
Philip Morris International, Inc. | 1,675 | $ | 195,490 | |||||
|
| |||||||
338,034 | ||||||||
|
| |||||||
TOTAL CONSUMER STAPLES | 1,181,688 | |||||||
|
| |||||||
ENERGY – 0.1% | ||||||||
Oil, Gas & Consumable Fuels – 0.1% | ||||||||
Chevron Corp. | 159 | 17,361 | ||||||
Exxon Mobil Corp. | 302 | 24,172 | ||||||
Occidental Petroleum Corp. | 136 | 8,423 | ||||||
ONEOK, Inc. | 125 | 7,071 | ||||||
The Williams Cos., Inc. | 269 | 8,549 | ||||||
Valero Energy Corp. | 121 | 8,345 | ||||||
|
| |||||||
TOTAL ENERGY | 73,921 | |||||||
|
| |||||||
FINANCIALS – 22.1% | ||||||||
Banks – 9.8% | ||||||||
Bank of America Corp. | 58,596 | 1,413,336 | ||||||
Citigroup, Inc. | 20,592 | 1,409,522 | ||||||
JPMorgan Chase & Co. | 17,953 | 1,648,085 | ||||||
Wells Fargo & Co. | 24,916 | 1,343,969 | ||||||
|
| |||||||
5,814,912 | ||||||||
|
| |||||||
Capital Markets – 2.9% | ||||||||
CME Group, Inc. | 7,011 | 859,689 | ||||||
Lazard Ltd. Class A | 17,597 | 821,956 | ||||||
|
| |||||||
1,681,645 | ||||||||
|
| |||||||
Insurance – 1.4% | ||||||||
ProAssurance Corp. | 13,718 | 847,772 | ||||||
|
| |||||||
Mortgage Real Estate Investment Trust (REITs) – 8.0% |
| |||||||
Blackstone Mortgage Trust, Inc. Class A | 24,547 | 757,766 | ||||||
Chimera Investment Corp. | 42,219 | 794,562 | ||||||
MFA Financial, Inc. | 94,548 | 802,712 | ||||||
New Residential Investment Corp. | 47,915 | 814,555 | ||||||
Starwood Property Trust, Inc. | 33,830 | 745,613 | ||||||
Two Harbors Investment Corp. | 85,849 | 849,047 | ||||||
|
| |||||||
4,764,255 | ||||||||
|
| |||||||
TOTAL FINANCIALS | 13,108,584 | |||||||
|
| |||||||
HEALTH CARE – 6.8% | ||||||||
Biotechnology – 2.9% | ||||||||
AbbVie, Inc. | 8,354 | 584,028 | ||||||
Amgen, Inc. | 3,343 | 583,387 | ||||||
Gilead Sciences, Inc. | 6,976 | 530,804 | ||||||
|
| |||||||
1,698,219 | ||||||||
|
| |||||||
Pharmaceuticals – 3.9% | ||||||||
AstraZeneca PLC | 7,178 | 427,831 | ||||||
GlaxoSmithKline PLC | 19,970 | 397,542 | ||||||
Johnson & Johnson | 6,809 | 903,691 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 22 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE – continued |
| |||||||
Pharmaceuticals – continued |
| |||||||
Merck & Co., Inc. | 9,460 | $ | 604,305 | |||||
|
| |||||||
2,333,369 | ||||||||
|
| |||||||
TOTAL HEALTH CARE |
| 4,031,588 | ||||||
|
| |||||||
INDUSTRIALS – 3.9% |
| |||||||
Aerospace & Defense – 1.0% |
| |||||||
Lockheed Martin Corp. | 446 | 130,290 | ||||||
Raytheon Co. | 642 | 110,276 | ||||||
The Boeing Co. | 860 | 208,516 | ||||||
United Technologies Corp. | 1,200 | 142,284 | ||||||
|
| |||||||
591,366 | ||||||||
|
| |||||||
Air Freight & Logistics – 0.2% |
| |||||||
United Parcel Service, Inc. Class B | 1,147 | 126,503 | ||||||
|
| |||||||
Airlines – 0.3% |
| |||||||
Delta Air Lines, Inc. | 1,828 | 90,230 | ||||||
easyJet PLC | 4,704 | 76,712 | ||||||
|
| |||||||
166,942 | ||||||||
|
| |||||||
Commercial Services & Supplies – 0.1% |
| |||||||
Waste Management, Inc. | 1,158 | 87,024 | ||||||
|
| |||||||
Electrical Equipment – 0.3% |
| |||||||
Eaton Corp. PLC | 1,195 | 93,508 | ||||||
Emerson Electric Co. | 1,516 | 90,369 | ||||||
|
| |||||||
183,877 | ||||||||
|
| |||||||
Industrial Conglomerates – 1.2% |
| |||||||
3M Co. | 862 | 173,408 | ||||||
General Electric Co. | 9,878 | 252,976 | ||||||
Honeywell International, Inc. | 1,161 | 158,035 | ||||||
Jardine Matheson Holdings Ltd. | 800 | 51,048 | ||||||
Jardine Strategic Holdings Ltd. | 1,300 | 53,040 | ||||||
|
| |||||||
688,507 | ||||||||
|
| |||||||
Machinery – 0.3% |
| |||||||
Cummins, Inc. | 514 | 86,300 | ||||||
PACCAR, Inc. | 1,131 | 77,417 | ||||||
|
| |||||||
163,717 | ||||||||
|
| |||||||
Professional Services – 0.3% |
| |||||||
Capita PLC | 9,038 | 78,525 | ||||||
Nielsen Holdings PLC | 1,628 | 70,020 | ||||||
|
| |||||||
148,545 | ||||||||
|
| |||||||
Road & Rail – 0.2% |
| |||||||
Union Pacific Corp. | 1,257 | 129,421 | ||||||
|
| |||||||
TOTAL INDUSTRIALS |
| 2,285,902 | ||||||
|
| |||||||
INFORMATION TECHNOLOGY – 28.8% |
| |||||||
Communications Equipment – 5.0% |
| |||||||
Cisco Systems, Inc. | 37,110 | 1,167,109 | ||||||
Nokia Oyj | 157,361 | 1,004,150 | ||||||
Telefonaktiebolaget LM Ericsson | 127,563 | 825,640 | ||||||
|
| |||||||
2,996,899 | ||||||||
|
|
Shares | Value | |||||||
Electronic Equipment, Instruments & Components – 1.5% |
| |||||||
Corning, Inc. | 31,132 | $ | 907,187 | |||||
|
| |||||||
IT Services – 6.0% |
| |||||||
CSRA, Inc. | 24,170 | 788,184 | ||||||
DXC Technology Co. | 12,384 | 970,658 | ||||||
International Business Machines Corp. | 6,548 | 947,299 | ||||||
Leidos Holdings, Inc. | 15,789 | 843,764 | ||||||
|
| |||||||
3,549,905 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 3.6% |
| |||||||
Intel Corp. | 32,748 | 1,161,571 | ||||||
QUALCOMM, Inc. | 18,151 | 965,452 | ||||||
|
| |||||||
2,127,023 | ||||||||
|
| |||||||
Software – 5.4% | ||||||||
Microsoft Corp. | 31,851 | 2,315,568 | ||||||
Symantec Corp. | 28,860 | 894,371 | ||||||
|
| |||||||
3,209,939 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 7.3% |
| |||||||
Apple, Inc. | 19,517 | 2,902,763 | ||||||
Seagate Technology PLC | 17,473 | 575,910 | ||||||
Xerox Corp. | 26,944 | 826,373 | ||||||
|
| |||||||
4,305,046 | ||||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY |
| 17,095,999 | ||||||
|
| |||||||
REAL ESTATE – 10.0% |
| |||||||
Equity Real Estate Investment Trusts (REITs) – 10.0% |
| |||||||
CoreCivic, Inc. | 11,917 | 330,101 | ||||||
Equity Residential | 6,536 | 444,840 | ||||||
Gaming and Leisure Properties, Inc. | 11,267 | 427,470 | ||||||
HCP, Inc. | 12,276 | 388,535 | ||||||
Hospitality Properties Trust | 11,308 | 328,610 | ||||||
LaSalle Hotel Properties | 11,690 | 345,323 | ||||||
Omega Healthcare Investors, Inc. (a) | 11,104 | 350,775 | ||||||
Public Storage | 1,963 | 403,534 | ||||||
Senior Housing Properties Trust | 18,490 | 359,631 | ||||||
Simon Property Group, Inc. | 2,662 | 421,927 | ||||||
Spirit Realty Capital, Inc. | 33,507 | 265,711 | ||||||
Sunstone Hotel Investors, Inc. | 23,453 | 381,815 | ||||||
The Geo Group, Inc. | 12,543 | 368,137 | ||||||
The Macerich Co. | 5,257 | 301,699 | ||||||
Welltower, Inc. | 6,057 | 444,523 | ||||||
WP Carey, Inc. | 5,760 | 394,618 | ||||||
|
| |||||||
TOTAL REAL ESTATE |
| 5,957,249 | ||||||
|
| |||||||
TELECOMMUNICATION SERVICES – 7.2% |
| |||||||
Diversified Telecommunication Services – 7.2% |
| |||||||
AT&T, Inc. | 39,573 | 1,543,347 | ||||||
CenturyLink, Inc. (a) | 40,322 | 938,293 | ||||||
Frontier Communications Corp. (a) | 19,651 | 300,857 |
See accompanying notes which are an integral part of the financial statements.
23 | Annual Report |
Table of Contents
Fidelity Core Dividend ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
TELECOMMUNICATION SERVICES – continued |
| |||||||
Diversified Telecommunication Services – continued |
| |||||||
Verizon Communications, Inc. | 30,785 | $ | 1,489,994 | |||||
|
| |||||||
TOTAL TELECOMMUNICATION SERVICES |
| 4,272,491 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 59,200,001 | ||||||
|
| |||||||
Money Market Funds – 4.0% | ||||||||
Fidelity Cash Central Fund, 1.11% (b) | 235,237 | 235,285 | ||||||
Fidelity Securities Lending Cash Central Fund, 1.11% (b)(c) | 2,153,581 | 2,153,796 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUNDS |
| 2,389,081 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 103.8% |
| 61,589,082 | ||||||
NET OTHER ASSETS (LIABILITIES) – |
| (2,238,859 | ) | |||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 59,350,223 | |||||
|
|
Legend
(a) | Security or a portion of the security is on loan at period end. |
(b) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund’s holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund’s financial statements, which are not covered by the Fund’s Report of Independent Registered Public Accounting Firm, are available on the SEC’s website or upon request. |
(c) | Investment made with cash collateral received from securities on loan. |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned | |||
Fidelity Cash Central Fund | $ | 286 | ||
Fidelity Securities Lending Cash Central Fund | 15,163 | |||
|
| |||
Total | $ | 15,449 | ||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 24 |
Table of Contents
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2017, 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: | ||||||||||||||||
Equities: | ||||||||||||||||
Consumer Discretionary | $ | 11,192,579 | $ | 11,192,579 | $ | — | $ | — | ||||||||
Consumer Staples | 1,181,688 | 1,181,688 | — | — | ||||||||||||
Energy | 73,921 | 73,921 | — | — | ||||||||||||
Financials | 13,108,584 | 13,108,584 | — | — | ||||||||||||
Health Care | 4,031,588 | 3,206,215 | 825,373 | — | ||||||||||||
Industrials | 2,285,902 | 2,285,902 | — | — | ||||||||||||
Information Technology | 17,095,999 | 15,266,209 | 1,829,790 | — | ||||||||||||
Real Estate | 5,957,249 | 5,957,249 | — | — | ||||||||||||
Telecommunication Services | 4,272,491 | 4,272,491 | — | — | ||||||||||||
Money Market Funds | 2,389,081 | 2,389,081 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 61,589,082 | $ | 58,933,919 | $ | 2,655,163 | $ | — | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
25 | Annual Report |
Table of Contents
Fidelity Dividend ETF for Rising Rates
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
CONSUMER DISCRETIONARY – 12.0% |
| |||||||
Automobiles – 1.4% |
| |||||||
Ford Motor Co. | 92,190 | $ | 1,034,372 | |||||
General Motors Co. | 31,951 | 1,149,597 | ||||||
|
| |||||||
2,183,969 | ||||||||
|
| |||||||
Diversified Consumer Services – 0.8% |
| |||||||
H&R Block, Inc. | 40,237 | 1,227,229 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure – 3.9% |
| |||||||
Cracker Barrel Old Country Store, Inc. (a) | 5,406 | 840,363 | ||||||
Crown Resorts Ltd. | 95,193 | 968,684 | ||||||
Las Vegas Sands Corp. | 18,266 | 1,125,368 | ||||||
McDonald’s Corp. | 12,018 | 1,864,472 | ||||||
Yum! Brands, Inc. | 14,779 | 1,115,519 | ||||||
|
| |||||||
5,914,406 | ||||||||
|
| |||||||
Leisure Products – 0.4% |
| |||||||
Mattel, Inc. | 34,263 | 685,945 | ||||||
|
| |||||||
Media – 1.2% | ||||||||
Twenty-First Century Fox, Inc. Class A | 36,086 | 1,050,103 | ||||||
Viacom, Inc. Class B | 22,164 | 773,967 | ||||||
|
| |||||||
1,824,070 | ||||||||
|
| |||||||
Multiline Retail – 1.7% |
| |||||||
Kohl’s Corp. (a) | 21,809 | 901,802 | ||||||
Macy’s, Inc. | 28,837 | 684,879 | ||||||
Target Corp. | 16,535 | 937,038 | ||||||
|
| |||||||
2,523,719 | ||||||||
|
| |||||||
Specialty Retail – 2.6% |
| |||||||
Best Buy Co., Inc. | 20,315 | 1,185,177 | ||||||
L Brands, Inc. | 15,423 | 715,473 | ||||||
The Home Depot, Inc. | 13,903 | 2,079,889 | ||||||
|
| |||||||
3,980,539 | ||||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY |
| 18,339,877 | ||||||
|
| |||||||
CONSUMER STAPLES – 8.6% |
| |||||||
Beverages – 1.3% | ||||||||
PepsiCo, Inc. | 17,452 | 2,035,078 | ||||||
|
| |||||||
Food & Staples Retailing – 1.8% |
| |||||||
Kesko Oyj | 18,192 | 920,220 | ||||||
Wal-Mart Stores, Inc. | 22,503 | 1,800,015 | ||||||
|
| |||||||
2,720,235 | ||||||||
|
| |||||||
Food Products – 1.4% |
| |||||||
General Mills, Inc. | 17,677 | 983,902 | ||||||
The Kraft Heinz Co. | 13,484 | 1,179,310 | ||||||
|
| |||||||
2,163,212 | ||||||||
|
| |||||||
Household Products – 1.6% |
| |||||||
The Procter & Gamble Co. | 26,950 | 2,447,599 | ||||||
|
| |||||||
Tobacco – 2.5% | ||||||||
Altria Group, Inc. | 24,507 | 1,592,220 |
Shares | Value | |||||||
Philip Morris International, Inc. | 18,627 | $ | 2,173,957 | |||||
|
| |||||||
3,766,177 | ||||||||
|
| |||||||
TOTAL CONSUMER STAPLES | 13,132,301 | |||||||
|
| |||||||
ENERGY – 6.4% | ||||||||
Oil, Gas & Consumable Fuels – 6.4% |
| |||||||
Chevron Corp. | 18,898 | 2,063,472 | ||||||
Exxon Mobil Corp. | 35,792 | 2,864,792 | ||||||
Occidental Petroleum Corp. | 15,844 | 981,219 | ||||||
ONEOK, Inc. | 14,822 | 838,480 | ||||||
Phillips 66 | 12,072 | 1,011,030 | ||||||
The Williams Cos., Inc. | 31,356 | 996,494 | ||||||
Valero Energy Corp. | 14,340 | 989,030 | ||||||
|
| |||||||
TOTAL ENERGY |
| 9,744,517 | ||||||
|
| |||||||
FINANCIALS – 15.0% |
| |||||||
Banks – 7.5% | ||||||||
Bank of America Corp. | 114,609 | 2,764,369 | ||||||
Citigroup, Inc. | 38,459 | 2,632,518 | ||||||
JPMorgan Chase & Co. | 36,367 | 3,338,491 | ||||||
Wells Fargo & Co. | 49,314 | 2,659,997 | ||||||
|
| |||||||
11,395,375 | ||||||||
|
| |||||||
Capital Markets – 1.7% | ||||||||
CME Group, Inc. | 11,419 | 1,400,198 | ||||||
Lazard Ltd. Class A | 26,799 | 1,251,781 | ||||||
|
| |||||||
2,651,979 | ||||||||
|
| |||||||
Insurance – 1.0% | ||||||||
Prudential Financial, Inc. | 13,491 | 1,527,586 | ||||||
|
| |||||||
Mortgage Real Estate Investment Trust (REITs) – 4.8% |
| |||||||
Blackstone Mortgage Trust, Inc. Class A | 37,326 | 1,152,253 | ||||||
Chimera Investment Corp. | 64,052 | 1,205,459 | ||||||
MFA Financial, Inc. | 143,683 | 1,219,869 | ||||||
New Residential Investment Corp. | 72,810 | 1,237,770 | ||||||
Starwood Property Trust, Inc. | 51,798 | 1,141,628 | ||||||
Two Harbors Investment Corp. | 130,448 | 1,290,131 | ||||||
|
| |||||||
7,247,110 | ||||||||
|
| |||||||
TOTAL FINANCIALS |
| 22,822,050 | ||||||
|
| |||||||
HEALTH CARE – 13.6% |
| |||||||
Biotechnology – 5.5% |
| |||||||
AbbVie, Inc. | 41,540 | 2,904,061 | ||||||
Amgen, Inc. | 16,647 | 2,905,068 | ||||||
Gilead Sciences, Inc. | 34,666 | 2,637,736 | ||||||
|
| |||||||
8,446,865 | ||||||||
|
| |||||||
Pharmaceuticals – 8.1% |
| |||||||
Bristol-Myers Squibb Co. Class A | 48,250 | 2,745,425 | ||||||
GlaxoSmithKline PLC | 98,154 | 1,953,950 | ||||||
Johnson & Johnson | 34,208 | 4,540,086 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 26 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE – continued | ||||||||
Pharmaceuticals – continued | ||||||||
Merck & Co., Inc. | 47,274 | $ | 3,019,863 | |||||
|
| |||||||
12,259,324 | ||||||||
|
| |||||||
TOTAL HEALTH CARE |
| 20,706,189 | ||||||
|
| |||||||
INDUSTRIALS – 10.4% |
| |||||||
Aerospace & Defense – 2.3% | ||||||||
Lockheed Martin Corp. | 3,219 | 940,367 | ||||||
The Boeing Co. | 6,168 | 1,495,493 | ||||||
United Technologies Corp. | 8,636 | 1,023,971 | ||||||
|
| |||||||
3,459,831 | ||||||||
|
| |||||||
Air Freight & Logistics – 0.6% |
| |||||||
United Parcel Service, Inc. Class B | 8,272 | 912,319 | ||||||
|
| |||||||
Airlines – 0.8% | ||||||||
Delta Air Lines, Inc. | 13,340 | 658,462 | ||||||
easyJet PLC | 34,211 | 557,906 | ||||||
|
| |||||||
1,216,368 | ||||||||
|
| |||||||
Electrical Equipment – 0.9% |
| |||||||
Eaton Corp. PLC | 8,762 | 685,626 | ||||||
Emerson Electric Co. | 11,070 | 659,883 | ||||||
|
| |||||||
1,345,509 | ||||||||
|
| |||||||
Industrial Conglomerates – 3.3% |
| |||||||
3M Co. | 6,181 | 1,243,432 | ||||||
General Electric Co. | 70,491 | 1,805,274 | ||||||
Honeywell International, Inc. | 8,321 | 1,132,654 | ||||||
Jardine Matheson Holdings Ltd. | 6,186 | 394,729 | ||||||
Jardine Strategic Holdings Ltd. | 10,207 | 416,446 | ||||||
|
| |||||||
4,992,535 | ||||||||
|
| |||||||
Machinery – 1.2% |
| |||||||
Cummins, Inc. | 3,748 | 629,289 | ||||||
Illinois Tool Works, Inc. | 5,210 | 733,099 | ||||||
PACCAR, Inc. | 8,273 | 566,287 | ||||||
|
| |||||||
1,928,675 | ||||||||
|
| |||||||
Professional Services – 0.7% |
| |||||||
Capita PLC | 65,719 | 570,983 | ||||||
Nielsen Holdings PLC | 11,780 | 506,658 | ||||||
|
| |||||||
1,077,641 | ||||||||
|
| |||||||
Road & Rail – 0.6% | ||||||||
Union Pacific Corp. | 9,058 | 932,612 | ||||||
|
| |||||||
TOTAL INDUSTRIALS |
| 15,865,490 | ||||||
|
| |||||||
INFORMATION TECHNOLOGY – 21.8% |
| |||||||
Communications Equipment – 3.5% |
| |||||||
Cisco Systems, Inc. | 73,243 | 2,303,492 | ||||||
Nokia Oyj | 264,083 | 1,685,163 | ||||||
Telefonaktiebolaget LM Ericsson | 213,958 | 1,384,824 | ||||||
|
| |||||||
5,373,479 | ||||||||
|
|
Shares | Value | |||||||
IT Services – 4.1% |
| |||||||
CSRA, Inc. | 40,839 | $ | 1,331,760 | |||||
DXC Technology Co. | 21,060 | 1,650,683 | ||||||
International Business Machines Corp. | 12,883 | 1,863,783 | ||||||
Leidos Holdings, Inc. | 26,781 | 1,431,177 | ||||||
|
| |||||||
6,277,403 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 2.7% |
| |||||||
Intel Corp. | 65,272 | 2,315,198 | ||||||
QUALCOMM, Inc. | 33,696 | 1,792,290 | ||||||
|
| |||||||
4,107,488 | ||||||||
|
| |||||||
Software – 4.4% |
| |||||||
Microsoft Corp. | 70,352 | 5,114,590 | ||||||
Symantec Corp. | 49,743 | 1,541,536 | ||||||
|
| |||||||
6,656,126 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 7.1% |
| |||||||
Apple, Inc. | 44,272 | 6,584,575 | ||||||
HP, Inc. | 94,438 | 1,803,766 | ||||||
Seagate Technology PLC | 29,925 | 986,328 | ||||||
Xerox Corp. | 45,635 | 1,399,625 | ||||||
|
| |||||||
10,774,294 | ||||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY |
| 33,188,790 | ||||||
|
| |||||||
MATERIALS – 3.1% |
| |||||||
Chemicals – 2.5% |
| |||||||
CF Industries Holdings, Inc. | 11,490 | 337,232 | ||||||
EI du Pont de Nemours & Co. | 10,300 | 846,763 | ||||||
LyondellBasell Industries N.V. Class A | 6,025 | 542,792 | ||||||
Potash Corp. of Saskatchewan, Inc. | 19,286 | 344,959 | ||||||
Praxair, Inc. | 4,915 | 639,736 | ||||||
The Dow Chemical Co. | 13,201 | 848,032 | ||||||
The Mosaic Co. | 13,562 | 327,387 | ||||||
|
| |||||||
3,886,901 | ||||||||
|
| |||||||
Containers & Packaging – 0.3% |
| |||||||
International Paper Co. | 9,315 | 512,139 | ||||||
|
| |||||||
Metals & Mining – 0.3% |
| |||||||
Fresnillo PLC | 19,164 | 388,377 | ||||||
|
| |||||||
TOTAL MATERIALS |
| 4,787,417 | ||||||
|
| |||||||
REAL ESTATE – 3.7% |
| |||||||
Equity Real Estate Investment Trusts (REITs) – 3.7% |
| |||||||
CoreCivic, Inc. | 10,598 | 293,564 | ||||||
Equity Residential | 7,235 | 492,414 | ||||||
Gaming and Leisure Properties, Inc. | 10,355 | 392,869 | ||||||
HCP, Inc. | 12,633 | 399,834 | ||||||
Hospitality Properties Trust | 10,274 | 298,562 | ||||||
Host Hotels & Resorts, Inc. | 20,820 | 388,501 | ||||||
LaSalle Hotel Properties | 10,385 | 306,773 | ||||||
Omega Healthcare Investors, Inc. (a) | 10,225 | 323,008 | ||||||
RLJ Lodging Trust | 13,331 | 282,084 | ||||||
Senior Housing Properties Trust | 16,660 | 324,037 |
See accompanying notes which are an integral part of the financial statements.
27 | Annual Report |
Table of Contents
Fidelity Dividend ETF for Rising Rates
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE – continued |
| |||||||
Equity Real Estate Investment Trusts (REITs) – continued |
| |||||||
Spirit Realty Capital, Inc. | 30,537 | $ | 242,158 | |||||
Sunstone Hotel Investors, Inc. | 20,788 | 338,429 | ||||||
The Geo Group, Inc. | 11,094 | 325,609 | ||||||
The Macerich Co. | 4,958 | 284,540 | ||||||
Welltower, Inc. | 6,797 | 498,832 | ||||||
WP Carey, Inc. | 5,533 | 379,066 | ||||||
|
| |||||||
TOTAL REAL ESTATE |
| 5,570,280 | ||||||
|
| |||||||
TELECOMMUNICATION SERVICES – 2.1% |
| |||||||
Diversified Telecommunication Services – 2.1% |
| |||||||
AT&T, Inc. | 41,740 | 1,627,860 | ||||||
CenturyLink, Inc. (a) | 7,067 | 164,449 | ||||||
Frontier Communications Corp. (a) | 2,280 | 34,907 | ||||||
Verizon Communications, Inc. | 28,115 | 1,360,766 | ||||||
|
| |||||||
TOTAL TELECOMMUNICATION SERVICES |
| 3,187,982 | ||||||
|
| |||||||
UTILITIES – 3.1% |
| |||||||
Electric Utilities – 2.2% |
| |||||||
Duke Energy Corp. | 8,526 | 725,733 | ||||||
Entergy Corp. | 5,628 | 431,780 | ||||||
Exelon Corp. | 14,875 | 570,308 | ||||||
FirstEnergy Corp. | 13,433 | 428,647 | ||||||
PPL Corp. | 13,440 | 515,155 | ||||||
The Southern Co. | 13,154 | 630,471 | ||||||
|
| |||||||
3,302,094 | ||||||||
|
| |||||||
Independent Power and Renewable Electricity Producers – 0.2% |
| |||||||
AES Corp. | 32,568 | 364,110 | ||||||
|
| |||||||
Multi-Utilities – 0.7% | ||||||||
Dominion Energy, Inc. | 8,487 | 655,027 | ||||||
Public Service Enterprise Group, Inc. | 10,613 | 477,267 | ||||||
|
| |||||||
1,132,294 | ||||||||
|
| |||||||
TOTAL UTILITIES | 4,798,498 | |||||||
|
| |||||||
TOTAL COMMON STOCKS | 152,143,391 | |||||||
|
| |||||||
Money Market Funds – 1.4% | ||||||||
Shares | Value | |||||||
Fidelity Cash Central Fund, 1.11% (b) | 484,639 | $ | 484,737 | |||||
Fidelity Securities Lending Cash Central Fund, 1.11% (b)(c) | 1,665,976 | 1,666,142 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUNDS |
| 2,150,879 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 101.2% |
| 154,294,270 | ||||||
NET OTHER ASSETS (LIABILITIES) – (1.2%) |
| (1,802,091 | ) | |||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 152,492,179 | |||||
|
|
Legend
(a) | Security or a portion of the security is on loan at period end. |
(b) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund’s holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund’s financial statements, which are not covered by the Fund’s Report of Independent Registered Public Accounting Firm, are available on the SEC’s website or upon request. |
(c) | Investment made with cash collateral received from securities on loan. |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned | |||
Fidelity Cash Central Fund | $ | 615 | ||
Fidelity Securities Lending Cash Central Fund | 10,747 | |||
|
| |||
Total | $ | 11,362 | ||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 28 |
Table of Contents
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2017, 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: | ||||||||||||||||
Equities: | ||||||||||||||||
Consumer Discretionary | $ | 18,339,877 | $ | 18,339,877 | $ | — | $ | — | ||||||||
Consumer Staples | 13,132,301 | 13,132,301 | — | — | ||||||||||||
Energy | 9,744,517 | 9,744,517 | — | — | ||||||||||||
Financials | 22,822,050 | 22,822,050 | — | — | ||||||||||||
Health Care | 20,706,189 | 18,752,239 | 1,953,950 | — | ||||||||||||
Industrials | 15,865,490 | 15,865,490 | — | — | ||||||||||||
Information Technology | 33,188,790 | 30,118,803 | 3,069,987 | — | ||||||||||||
Materials | 4,787,417 | 4,787,417 | — | — | ||||||||||||
Real Estate | 5,570,280 | 5,570,280 | — | — | ||||||||||||
Telecommunication Services | 3,187,982 | 3,187,982 | — | — | ||||||||||||
Utilities | 4,798,498 | 4,798,498 | — | — | ||||||||||||
Money Market Funds | 2,150,879 | 2,150,879 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 154,294,270 | $ | 149,270,333 | $ | 5,023,937 | $ | — | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
29 | Annual Report |
Table of Contents
Fidelity Low Volatility Factor ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.6% | ||||||||
Shares | Value | |||||||
CONSUMER DISCRETIONARY – 11.3% |
| |||||||
Distributors – 0.6% |
| |||||||
Genuine Parts Co. | 2,568 | $ | 218,100 | |||||
|
| |||||||
Hotels, Restaurants & Leisure – 2.3% |
| |||||||
McDonald’s Corp. | 3,026 | 469,454 | ||||||
Vail Resorts, Inc. | 1,376 | 290,006 | ||||||
|
| |||||||
759,460 | ||||||||
|
| |||||||
Media – 3.7% |
| |||||||
Cable One, Inc. | 363 | 275,844 | ||||||
Comcast Corp. Class A | 12,828 | 518,893 | ||||||
The Walt Disney Co. | 4,135 | 454,560 | ||||||
|
| |||||||
1,249,297 | ||||||||
|
| |||||||
Multiline Retail – 0.7% |
| |||||||
Target Corp. | 4,373 | 247,818 | ||||||
|
| |||||||
Specialty Retail – 2.9% |
| |||||||
AutoZone, Inc. (a) | 353 | 190,556 | ||||||
The Home Depot, Inc. | 3,391 | 507,294 | ||||||
The TJX Companies, Inc. | 3,964 | 278,709 | ||||||
|
| |||||||
976,559 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods – 1.1% |
| |||||||
NIKE, Inc. Class B | 6,207 | 366,523 | ||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY |
| 3,817,757 | ||||||
|
| |||||||
CONSUMER STAPLES – 8.5% |
| |||||||
Beverages – 2.4% |
| |||||||
PepsiCo, Inc. | 3,458 | 403,237 | ||||||
The Coca-Cola Co. | 9,083 | 416,365 | ||||||
|
| |||||||
819,602 | ||||||||
|
| |||||||
Food & Staples Retailing – 1.6% |
| |||||||
Sysco Corp. | 3,540 | 186,275 | ||||||
Wal-Mart Stores, Inc. | 4,355 | 348,356 | ||||||
|
| |||||||
534,631 | ||||||||
|
| |||||||
Food Products – 1.0% |
| |||||||
General Mills, Inc. | 3,236 | 180,116 | ||||||
McCormick & Co., Inc. (non-vtg.) | 1,718 | 163,725 | ||||||
|
| |||||||
343,841 | ||||||||
|
| |||||||
Household Products – 2.6% |
| |||||||
Church & Dwight Co., Inc. | 3,617 | 192,967 | ||||||
The Clorox Co. | 1,412 | 188,488 | ||||||
The Procter & Gamble Co. | 5,483 | 497,966 | ||||||
|
| |||||||
879,421 | ||||||||
|
| |||||||
Tobacco – 0.9% |
| |||||||
Altria Group, Inc. | 4,838 | 314,325 | ||||||
|
| |||||||
TOTAL CONSUMER STAPLES |
| 2,891,820 | ||||||
|
| |||||||
ENERGY – 5.6% |
| |||||||
Energy Equipment & Services – 0.9% |
| |||||||
Halliburton Co. | 2,466 | 104,657 |
Shares | Value | |||||||
Schlumberger Ltd. | 2,820 | $ | 193,452 | |||||
|
| |||||||
298,109 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels – 4.7% |
| |||||||
Chevron Corp. | 3,300 | 360,327 | ||||||
Exxon Mobil Corp. | 6,721 | 537,949 | ||||||
Kinder Morgan, Inc. | 5,808 | 118,657 | ||||||
Occidental Petroleum Corp. | 2,103 | 130,239 | ||||||
ONEOK, Inc. | 1,555 | 87,966 | ||||||
Parsley Energy, Inc. Class A (a) | 2,270 | 66,466 | ||||||
Phillips 66 | 1,490 | 124,787 | ||||||
Valero Energy Corp. | 1,710 | 117,939 | ||||||
World Fuel Services Corp. | 1,658 | 53,620 | ||||||
|
| |||||||
1,597,950 | ||||||||
|
| |||||||
TOTAL ENERGY |
| 1,896,059 | ||||||
|
| |||||||
FINANCIALS – 14.8% |
| |||||||
Banks – 4.5% |
| |||||||
M&T Bank Corp. | 1,635 | 266,750 | ||||||
The PNC Financial Services Group, Inc. | 2,601 | 335,009 | ||||||
US Bancorp | 6,584 | 347,504 | ||||||
Wells Fargo & Co. | 10,527 | 567,826 | ||||||
|
| |||||||
1,517,089 | ||||||||
|
| |||||||
Diversified Financial Services – 2.1% |
| |||||||
Berkshire Hathaway, Inc. Class B (a) | 4,100 | 717,377 | ||||||
|
| |||||||
Insurance – 6.8% |
| |||||||
American Financial Group, Inc. | 2,625 | 266,175 | ||||||
Arch Capital Group Ltd. (a) | 2,724 | 264,936 | ||||||
Axis Capital Holdings Ltd. | 3,563 | 230,099 | ||||||
Chubb Ltd. | 2,413 | 353,408 | ||||||
Everest Re Group Ltd. | 1,090 | 286,005 | ||||||
Marsh & McLennan Cos., Inc. | 4,028 | 314,063 | ||||||
RenaissanceRe Holdings Ltd. | 1,675 | 246,074 | ||||||
The Progressive Corp. | 7,009 | 330,334 | ||||||
|
| |||||||
2,291,094 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trust (REITs) – 1.4% |
| |||||||
MFA Financial, Inc. | 29,383 | 249,462 | ||||||
Starwood Property Trust, Inc. | 10,581 | 233,205 | ||||||
|
| |||||||
482,667 | ||||||||
|
| |||||||
TOTAL FINANCIALS |
| 5,008,227 | ||||||
|
| |||||||
HEALTH CARE – 13.7% |
| |||||||
Health Care Equipment & Supplies – 2.2% |
| |||||||
Danaher Corp. | 3,834 | 312,433 | ||||||
Medtronic PLC | 5,224 | 438,659 | ||||||
|
| |||||||
751,092 | ||||||||
|
| |||||||
Health Care Providers & Services – 4.9% |
| |||||||
Aetna, Inc. | 2,562 | 395,342 | ||||||
Anthem, Inc. | 1,951 | 363,296 | ||||||
Cigna Corp. | 2,042 | 354,409 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 30 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE – continued |
| |||||||
Health Care Providers & Services – continued |
| |||||||
UnitedHealth Group, Inc. | 2,897 | $ | 555,674 | |||||
|
| |||||||
1,668,721 | ||||||||
|
| |||||||
Pharmaceuticals – 6.6% |
| |||||||
Eli Lilly & Co. | 4,592 | 379,575 | ||||||
Johnson & Johnson | 6,050 | 802,956 | ||||||
Merck & Co., Inc. | 7,787 | 497,433 | ||||||
Pfizer, Inc. | 16,450 | 545,482 | ||||||
|
| |||||||
2,225,446 | ||||||||
|
| |||||||
TOTAL HEALTH CARE |
| 4,645,259 | ||||||
|
| |||||||
INDUSTRIALS – 10.7% |
| |||||||
Aerospace & Defense – 2.7% |
| |||||||
Lockheed Martin Corp. | 1,118 | 326,601 | ||||||
Northrop Grumman Corp. | 1,085 | 285,496 | ||||||
Raytheon Co. | 1,735 | 298,021 | ||||||
|
| |||||||
910,118 | ||||||||
|
| |||||||
Air Freight & Logistics – 1.4% |
| |||||||
CH Robinson Worldwide, Inc. | 2,762 | 181,187 | ||||||
United Parcel Service, Inc. Class B | 2,803 | 309,143 | ||||||
|
| |||||||
490,330 | ||||||||
|
| |||||||
Commercial Services & Supplies – 2.0% |
| |||||||
Republic Services, Inc. | 3,675 | 236,009 | ||||||
Rollins, Inc. | 5,618 | 243,877 | ||||||
Stericycle, Inc. (a) | 2,620 | 201,950 | ||||||
|
| |||||||
681,836 | ||||||||
|
| |||||||
Industrial Conglomerates – 2.3% |
| |||||||
3M Co. | 1,955 | 393,287 | ||||||
Honeywell International, Inc. | 2,707 | 368,477 | ||||||
|
| |||||||
761,764 | ||||||||
|
| |||||||
Machinery – 0.7% |
| |||||||
The Toro Co. | 3,437 | 244,336 | ||||||
|
| |||||||
Professional Services – 0.7% |
| |||||||
Verisk Analytics, Inc. (a) | 2,557 | 223,124 | ||||||
|
| |||||||
Road & Rail – 0.9% |
| |||||||
Union Pacific Corp. | 2,958 | 304,556 | ||||||
|
| |||||||
TOTAL INDUSTRIALS |
| 3,616,064 | ||||||
|
| |||||||
INFORMATION TECHNOLOGY – 22.6% |
| |||||||
Electronic Equipment, Instruments & Components – 1.0% |
| |||||||
Amphenol Corp. Class A | 4,446 | 340,653 | ||||||
|
| |||||||
Internet Software & Services – 3.3% |
| |||||||
Alphabet, Inc. Class A (a) | 1,159 | 1,095,834 | ||||||
|
| |||||||
IT Services – 10.0% |
| |||||||
Amdocs Ltd. | 4,762 | 319,864 | ||||||
Automatic Data Processing, Inc. | 3,435 | 408,456 | ||||||
Fidelity National Information Services, Inc. | 3,870 | 353,021 |
Shares | Value | |||||||
Fiserv, Inc. (a) | 2,860 | $ | 367,510 | |||||
Genpact Ltd. | 11,181 | 324,249 | ||||||
International Business Machines Corp. | 2,769 | 400,591 | ||||||
Jack Henry & Associates, Inc. | 3,133 | 336,234 | ||||||
Paychex, Inc. | 5,054 | 292,374 | ||||||
Visa, Inc. Class A | 5,920 | 589,395 | ||||||
|
| |||||||
3,391,694 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 1.5% |
| |||||||
Intel Corp. | 14,064 | 498,850 | ||||||
|
| |||||||
Software – 6.8% |
| |||||||
Check Point Software Technologies Ltd. (a) | 2,920 | 308,878 | ||||||
Microsoft Corp. | 15,293 | 1,111,801 | ||||||
Oracle Corp. | 10,985 | 548,481 | ||||||
Synopsys, Inc. (a) | 4,408 | 337,520 | ||||||
|
| |||||||
2,306,680 | ||||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY |
| 7,633,711 | ||||||
|
| |||||||
MATERIALS – 3.3% |
| |||||||
Chemicals – 2.9% |
| |||||||
Air Products & Chemicals, Inc. | 731 | 103,912 | ||||||
Ecolab, Inc. | 861 | 113,368 | ||||||
LyondellBasell Industries N.V. Class A | 1,101 | 99,189 | ||||||
Monsanto Co. | 1,161 | 135,628 | ||||||
NewMarket Corp. | 151 | 69,476 | ||||||
Praxair, Inc. | 908 | 118,185 | ||||||
The Dow Chemical Co. | 2,574 | 165,354 | ||||||
The Scotts Miracle-Gro Co. Class A | 722 | 69,305 | ||||||
The Sherwin-Williams Co. | 307 | 103,542 | ||||||
|
| |||||||
977,959 | ||||||||
|
| |||||||
Containers & Packaging – 0.4% |
| |||||||
Aptargroup, Inc. | 892 | 72,190 | ||||||
Bemis Co., Inc. | 1,339 | 56,733 | ||||||
|
| |||||||
128,923 | ||||||||
|
| |||||||
TOTAL MATERIALS |
| 1,106,882 | ||||||
|
| |||||||
REAL ESTATE – 3.8% |
| |||||||
Equity Real Estate Investment Trusts (REITs) – 3.8% |
| |||||||
American Campus Communities, Inc. | 970 | 46,502 | ||||||
American Tower Corp. | 966 | 131,695 | ||||||
AvalonBay Communities, Inc. | 410 | 78,864 | ||||||
Boston Properties, Inc. | 508 | 61,422 | ||||||
Camden Property Trust | 572 | 51,308 | ||||||
Crown Castle International Corp. | 942 | 94,746 | ||||||
Digital Realty Trust, Inc. | 579 | 66,782 | ||||||
Equity Lifestyle Properties, Inc. | 626 | 54,650 | ||||||
Equity Residential | 1,140 | 77,588 | ||||||
Essex Property Trust, Inc. | 258 | 67,519 | ||||||
Federal Realty Investment Trust | 371 | 49,206 |
See accompanying notes which are an integral part of the financial statements.
31 | Annual Report |
Table of Contents
Fidelity Low Volatility Factor ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE – continued |
| |||||||
Equity Real Estate Investment Trusts (REITs) – continued |
| |||||||
Mid-America Apartment Communities, Inc. | 546 | $ | 56,527 | |||||
National Retail Properties, Inc. | 1,084 | 43,338 | ||||||
Public Storage | 387 | 79,556 | ||||||
Realty Income Corp. | 1,001 | 57,117 | ||||||
Simon Property Group, Inc. | 652 | 103,342 | ||||||
Ventas, Inc. | 1,114 | 75,028 | ||||||
Welltower, Inc. | 1,084 | 79,555 | ||||||
|
| |||||||
TOTAL REAL ESTATE |
| 1,274,745 | ||||||
|
| |||||||
TELECOMMUNICATION SERVICES – 2.1% |
| |||||||
Diversified Telecommunication Services – 2.1% |
| |||||||
AT&T, Inc. | 9,525 | 371,475 | ||||||
Verizon Communications, Inc. | 6,477 | 313,487 | ||||||
Zayo Group Holdings, Inc. (a) | 1,200 | 39,348 | ||||||
|
| |||||||
TOTAL TELECOMMUNICATION SERVICES |
| 724,310 | ||||||
|
| |||||||
UTILITIES – 3.2% |
| |||||||
Electric Utilities – 1.7% |
| |||||||
Duke Energy Corp. | 1,826 | 155,429 | ||||||
NextEra Energy, Inc. | 1,196 | 174,724 | ||||||
The Southern Co. | 2,738 | 131,232 | ||||||
Xcel Energy, Inc. | 2,315 | 109,523 | ||||||
|
| |||||||
570,908 | ||||||||
|
| |||||||
Multi-Utilities – 1.3% |
| |||||||
CMS Energy Corp. | 1,938 | 89,613 | ||||||
Consolidated Edison, Inc. | 1,317 | 109,127 | ||||||
Dominion Energy, Inc. | 1,809 | 139,618 | ||||||
DTE Energy Co. | 921 | 98,602 | ||||||
|
| |||||||
436,960 | ||||||||
|
|
Shares | Value | |||||||
Water Utilities – 0.2% |
| |||||||
American Water Works Co., Inc. | 1,157 | $ | 93,833 | |||||
|
| |||||||
TOTAL UTILITIES |
| 1,101,701 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 33,716,535 | ||||||
|
| |||||||
Money Market Funds – 0.3% | ||||||||
Fidelity Cash Central Fund, 1.11% (b) | 94,676 | 94,695 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO –99.9% |
| 33,811,230 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 21,976 | ||||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 33,833,206 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund’s holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund’s financial statements, which are not covered by the Fund’s Report of Independent Registered Public Accounting Firm, are available on the SEC’s website or upon request. |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned | |||
Fidelity Cash Central Fund | $ | 43 | ||
|
|
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Annual Report | 32 |
Table of Contents
Fidelity Momentum Factor ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
CONSUMER DISCRETIONARY – 12.8% |
| |||||||
Hotels, Restaurants & Leisure – 1.2% |
| |||||||
Domino’s Pizza, Inc. | 1,040 | $ | 193,960 | |||||
Marriott International, Inc. Class A | 2,369 | 246,826 | ||||||
|
| |||||||
440,786 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail – 4.1% |
| |||||||
Amazon.com, Inc. (a) | 781 | 771,456 | ||||||
Netflix, Inc. (a) | 1,808 | 328,441 | ||||||
The Priceline Group, Inc. (a) | 169 | 342,817 | ||||||
|
| |||||||
1,442,714 | ||||||||
|
| |||||||
Media – 5.6% | ||||||||
Charter Communications, Inc. Class A (a) | 889 | 348,408 | ||||||
Comcast Corp. Class A | 11,797 | 477,189 | ||||||
Liberty Broadband Corp. Class A (a) | 2,328 | 230,286 | ||||||
Liberty Media Corp-Liberty Formula One Class A (a) | 6,295 | 212,456 | ||||||
The Walt Disney Co. | 3,804 | 418,174 | ||||||
Time Warner, Inc. | 3,020 | 309,308 | ||||||
|
| |||||||
1,995,821 | ||||||||
|
| |||||||
Specialty Retail – 1.9% | ||||||||
Best Buy Co., Inc. | 4,029 | 235,052 | ||||||
The Home Depot, Inc. | 2,988 | 447,004 | ||||||
|
| |||||||
682,056 | ||||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY | 4,561,377 | |||||||
|
| |||||||
CONSUMER STAPLES – 7.5% | ||||||||
Beverages – 1.1% | ||||||||
PepsiCo, Inc. | 3,408 | 397,407 | ||||||
|
| |||||||
Food & Staples Retailing – 1.3% |
| |||||||
Costco Wholesale Corp. | 1,456 | 230,791 | ||||||
Walgreens Boots Alliance, Inc. | 2,969 | 239,509 | ||||||
|
| |||||||
470,300 | ||||||||
|
| |||||||
Food Products – 1.6% | ||||||||
Archer-Daniels-Midland Co. | 4,317 | 182,091 | ||||||
Pinnacle Foods, Inc. | 2,711 | 160,979 | ||||||
The Kraft Heinz Co. | 2,522 | 220,574 | ||||||
|
| |||||||
563,644 | ||||||||
|
| |||||||
Household Products – 1.4% | ||||||||
The Procter & Gamble Co. | 5,472 | 496,967 | ||||||
|
| |||||||
Tobacco – 2.1% | ||||||||
Altria Group, Inc. | 4,956 | 321,991 | ||||||
Philip Morris International, Inc. | 3,612 | 421,557 | ||||||
|
| |||||||
743,548 | ||||||||
|
| |||||||
TOTAL CONSUMER STAPLES | 2,671,866 | |||||||
|
| |||||||
ENERGY – 5.5% | ||||||||
Energy Equipment & Services – 0.5% |
| |||||||
Halliburton Co. | 4,571 | 193,993 | ||||||
|
|
Shares | Value | |||||||
Oil, Gas & Consumable Fuels – 5.0% |
| |||||||
Anadarko Petroleum Corp. | 3,656 | $ | 166,969 | |||||
Chevron Corp. | 4,190 | 457,506 | ||||||
Devon Energy Corp. | 4,750 | 158,222 | ||||||
EOG Resources, Inc. | 2,506 | 238,421 | ||||||
Kinder Morgan, Inc. | 10,260 | 209,612 | ||||||
Marathon Petroleum Corp. | 3,741 | 209,459 | ||||||
Targa Resources Corp. | 3,293 | 152,828 | ||||||
The Williams Cos., Inc. | 6,192 | 196,782 | ||||||
|
| |||||||
1,789,799 | ||||||||
|
| |||||||
TOTAL ENERGY | 1,983,792 | |||||||
|
| |||||||
FINANCIALS – 14.5% | ||||||||
Banks – 8.0% | ||||||||
Bank of America Corp. | 22,979 | 554,253 | ||||||
Citigroup, Inc. | 7,333 | 501,944 | ||||||
Citizens Financial Group, Inc. | 5,992 | 210,199 | ||||||
Hancock Holding Co. | 4,159 | 191,314 | ||||||
JPMorgan Chase & Co. | 7,511 | 689,510 | ||||||
SVB Financial Group (a) | 1,153 | 205,741 | ||||||
Texas Capital Bancshares, Inc. (a) | 2,650 | 207,628 | ||||||
The PNC Financial Services Group, Inc. | 2,301 | 296,369 | ||||||
|
| |||||||
2,856,958 | ||||||||
|
| |||||||
Capital Markets – 2.6% | ||||||||
Morgan Stanley | 6,640 | 311,416 | ||||||
The Charles Schwab Corp. | 6,664 | 285,886 | ||||||
The Goldman Sachs Group, Inc. | 1,410 | 317,715 | ||||||
|
| |||||||
915,017 | ||||||||
|
| |||||||
Diversified Financial Services – 2.5% |
| |||||||
Berkshire Hathaway, Inc. Class B (a) | 3,975 | 695,506 | ||||||
Leucadia National Corp. | 8,201 | 213,472 | ||||||
|
| |||||||
908,978 | ||||||||
|
| |||||||
Insurance – 1.4% | ||||||||
Principal Financial Group, Inc. | 3,431 | 229,019 | ||||||
Prudential Financial, Inc. | 2,460 | 278,546 | ||||||
|
| |||||||
507,565 | ||||||||
|
| |||||||
TOTAL FINANCIALS | 5,188,518 | |||||||
|
| |||||||
HEALTH CARE – 13.7% | ||||||||
Biotechnology – 4.5% | ||||||||
Celgene Corp. (a) | 3,780 | 511,850 | ||||||
Exelixis, Inc. (a) | 15,208 | 412,289 | ||||||
Incyte Corp. Ltd. (a) | 2,872 | 382,809 | ||||||
TESARO, Inc. (a) | 2,334 | 297,958 | ||||||
|
| |||||||
1,604,906 | ||||||||
|
| |||||||
Health Care Equipment & Supplies – 2.4% |
| |||||||
Abbott Laboratories | 9,899 | 486,832 | ||||||
IDEXX Laboratories, Inc. (a) | 2,173 | 361,718 | ||||||
|
| |||||||
848,550 | ||||||||
|
|
See accompanying notes which are an integral part of the financial statements.
33 | Annual Report |
Table of Contents
Fidelity Momentum Factor ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE – continued |
| |||||||
Health Care Providers & Services – 2.7% |
| |||||||
UnitedHealth Group, Inc. | 3,302 | $ | 633,356 | |||||
WellCare Health Plans, Inc. (a) | 1,996 | 353,272 | ||||||
|
| |||||||
986,628 | ||||||||
|
| |||||||
Pharmaceuticals – 4.1% | ||||||||
Johnson & Johnson | 6,643 | 881,659 | ||||||
Merck & Co., Inc. | 9,219 | 588,910 | ||||||
|
| |||||||
1,470,569 | ||||||||
|
| |||||||
TOTAL HEALTH CARE |
| 4,910,653 | ||||||
|
| |||||||
INDUSTRIALS – 10.8% |
| |||||||
Aerospace & Defense – 2.2% |
| |||||||
General Dynamics Corp. | 1,552 | 304,704 | ||||||
The Boeing Co. | 2,036 | 493,649 | ||||||
|
| |||||||
798,353 | ||||||||
|
| |||||||
Air Freight & Logistics – 0.7% |
| |||||||
XPO Logistics, Inc. (a) | 4,285 | 257,571 | ||||||
|
| |||||||
Construction & Engineering – 0.7% |
| |||||||
MasTec, Inc. (a) | 5,144 | 237,653 | ||||||
|
| |||||||
Machinery – 4.8% |
| |||||||
Caterpillar, Inc. | 3,070 | 349,826 | ||||||
Cummins, Inc. | 1,633 | 274,181 | ||||||
Deere & Co. | 2,389 | 306,461 | ||||||
Illinois Tool Works, Inc. | 2,044 | 287,611 | ||||||
Nordson Corp. | 1,793 | 227,711 | ||||||
Parker Hannifin Corp. | 1,568 | 260,257 | ||||||
|
| |||||||
1,706,047 | ||||||||
|
| |||||||
Road & Rail – 1.7% |
| |||||||
CSX Corp. | 5,605 | 276,551 | ||||||
Union Pacific Corp. | 3,186 | 328,030 | ||||||
|
| |||||||
604,581 | ||||||||
|
| |||||||
Trading Companies & Distributors – 0.7% |
| |||||||
United Rentals, Inc. (a) | 2,167 | 257,786 | ||||||
|
| |||||||
TOTAL INDUSTRIALS |
| 3,861,991 | ||||||
|
| |||||||
INFORMATION TECHNOLOGY – 22.9% |
| |||||||
Electronic Equipment, Instruments & Components – 1.7% |
| |||||||
Cognex Corp. | 3,205 | 304,667 | ||||||
Corning, Inc. | 10,822 | 315,353 | ||||||
|
| |||||||
620,020 | ||||||||
|
| |||||||
Internet Software & Services – 3.0% |
| |||||||
Alphabet, Inc. Class A (a) | 1,149 | 1,086,380 | ||||||
|
| |||||||
IT Services – 0.9% |
| |||||||
DXC Technology Co. | 3,935 | 308,425 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 8.7% |
| |||||||
Advanced Micro Devices, Inc. (a) | 28,142 | 383,013 | ||||||
Applied Materials, Inc. | 8,137 | 360,550 | ||||||
Broadcom Ltd. | 1,811 | 446,701 |
Shares | Value | |||||||
Lam Research Corp. | 2,050 | $ | 326,893 | |||||
Micron Technology, Inc. (a) | 11,341 | 318,909 | ||||||
MKS Instruments, Inc. | 3,466 | 289,931 | ||||||
NVIDIA Corp. | 3,494 | 567,810 | ||||||
Texas Instruments, Inc. | 4,925 | 400,797 | ||||||
|
| |||||||
3,094,604 | ||||||||
|
| |||||||
Software – 3.1% |
| |||||||
Microsoft Corp. | 15,351 | 1,116,018 | ||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 5.5% |
| |||||||
Apple, Inc. | 9,593 | 1,426,767 | ||||||
Seagate Technology PLC | 6,841 | 225,479 | ||||||
Western Digital Corp. | 3,483 | 296,473 | ||||||
|
| |||||||
1,948,719 | ||||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY |
| 8,174,166 | ||||||
|
| |||||||
MATERIALS – 3.2% |
| |||||||
Chemicals – 2.1% |
| |||||||
Albemarle Corp. | 763 | 88,356 | ||||||
EI du Pont de Nemours & Co. | 2,097 | 172,394 | ||||||
Huntsman Corp. | 2,930 | 77,997 | ||||||
Monsanto Co. | 1,210 | 141,352 | ||||||
The Chemours Co. | 1,910 | 90,935 | ||||||
The Dow Chemical Co. | 2,701 | 173,512 | ||||||
|
| |||||||
744,546 | ||||||||
|
| |||||||
Containers & Packaging – 0.5% |
| |||||||
Packaging Corp. of America | 790 | 86,489 | ||||||
WestRock Co. | 1,577 | 90,552 | ||||||
|
| |||||||
177,041 | ||||||||
|
| |||||||
Metals & Mining – 0.6% |
| |||||||
Nucor Corp. | 1,536 | 88,581 | ||||||
Steel Dynamics, Inc. | 2,154 | 76,273 | ||||||
United States Steel Corp. | 3,333 | 78,292 | ||||||
|
| |||||||
243,146 | ||||||||
|
| |||||||
TOTAL MATERIALS |
| 1,164,733 | ||||||
|
| |||||||
REAL ESTATE – 3.8% |
| |||||||
Equity Real Estate Investment Trusts (REITs) – 3.8% |
| |||||||
American Homes 4 Rent Class A | 2,435 | 56,029 | ||||||
American Tower Corp. | 1,009 | 137,557 | ||||||
Colony NorthStar, Inc. Class A | 4,509 | 66,012 | ||||||
Crown Castle International Corp. | 1,041 | 104,704 | ||||||
Digital Realty Trust, Inc. | 667 | 76,932 | ||||||
Duke Realty Corp. | 2,238 | 63,984 | ||||||
Equinix, Inc. | 228 | 102,766 | ||||||
Essex Property Trust, Inc. | 289 | 75,631 | ||||||
Hospitality Properties Trust | 1,750 | 50,855 | ||||||
Host Hotels & Resorts, Inc. | 3,728 | 69,565 | ||||||
Hudson Pacific Properties, Inc. | 1,632 | 53,399 | ||||||
JBG SMITH (a) | 376 | 13,341 | ||||||
Kilroy Realty Corp. | 826 | 57,333 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 34 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE – continued |
| |||||||
Equity Real Estate Investment Trusts (REITs) – continued |
| |||||||
Prologis, Inc. | 1,674 | $ | 101,796 | |||||
SBA Communications Corp. (a) | 550 | 75,653 | ||||||
Sunstone Hotel Investors, Inc. | 3,379 | 55,010 | ||||||
The Geo Group, Inc. | 1,701 | 49,924 | ||||||
Vornado Realty Trust | 752 | 59,671 | ||||||
Weyerhaeuser Co. | 2,568 | 84,795 | ||||||
|
| |||||||
TOTAL REAL ESTATE | 1,354,957 | |||||||
|
| |||||||
TELECOMMUNICATION SERVICES – 1.9% |
| |||||||
Wireless Telecommunication Services – 1.9% |
| |||||||
Sprint Corp. (a) | 43,042 | 343,475 | ||||||
T-Mobile US, Inc. (a) | 5,531 | 341,042 | ||||||
|
| |||||||
TOTAL TELECOMMUNICATION SERVICES |
| 684,517 | ||||||
|
| |||||||
UTILITIES – 3.2% |
| |||||||
Electric Utilities – 1.5% |
| |||||||
Edison International | 1,450 | 114,086 | ||||||
NextEra Energy, Inc. | 1,273 | 185,972 | ||||||
OGE Energy Corp. | 2,552 | 91,515 | ||||||
PG&E Corp. | 1,920 | 129,965 | ||||||
|
| |||||||
521,538 | ||||||||
|
| |||||||
Gas Utilities – 0.5% |
| |||||||
Southwest Gas Holdings, Inc. | 1,036 | 82,984 | ||||||
UGI Corp. | 1,851 | 93,420 | ||||||
|
| |||||||
176,404 | ||||||||
|
| |||||||
Multi-Utilities – 1.2% |
| |||||||
CenterPoint Energy, Inc. | 3,403 | 95,931 |
Shares | Value | |||||||
Dominion Energy, Inc. | 1,942 | $ | 149,883 | |||||
DTE Energy Co. | 1,005 | 107,595 | ||||||
MDU Resources Group, Inc. | 3,259 | 85,875 | ||||||
|
| |||||||
439,284 | ||||||||
|
| |||||||
TOTAL UTILITIES | 1,137,226 | |||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 35,693,796 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
Fidelity Cash Central Fund, 1.11% (b) | 25,436 | 25,442 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 99.9% |
| 35,719,238 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 25,509 | ||||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 35,744,747 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund’s holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund’s financial statements, which are not covered by the Fund’s Report of Independent Registered Public Accounting Firm, are available on the SEC’s website or upon request. |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned | |||
Fidelity Cash Central Fund | $ | 78 | ||
|
|
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
35 | Annual Report |
Table of Contents
Fidelity Quality Factor ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
CONSUMER DISCRETIONARY – 12.1% |
| |||||||
Hotels, Restaurants & Leisure – 3.2% |
| |||||||
Domino’s Pizza, Inc. | 1,254 | $ | 233,871 | |||||
McDonald’s Corp. | 2,753 | 427,101 | ||||||
Starbucks Corp. | 5,734 | 309,521 | ||||||
|
| |||||||
970,493 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail – 1.3% |
| |||||||
The Priceline Group, Inc. (a) | 196 | 397,586 | ||||||
|
| |||||||
Media – 2.3% |
| |||||||
Sirius XM Holdings, Inc. (b) | 46,172 | 270,568 | ||||||
The Walt Disney Co. | 3,755 | 412,787 | ||||||
|
| |||||||
683,355 | ||||||||
|
| |||||||
Specialty Retail – 3.6% |
| |||||||
O’Reilly Automotive, Inc. (a) | 933 | 190,612 | ||||||
Ross Stores, Inc. | 3,688 | 204,020 | ||||||
The Home Depot, Inc. | 3,086 | 461,665 | ||||||
The TJX Companies, Inc. | 3,619 | 254,452 | ||||||
|
| |||||||
1,110,749 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods – 1.7% |
| |||||||
Michael Kors Holdings Ltd. (a) | 5,316 | 193,715 | ||||||
NIKE, Inc. Class B | 5,658 | 334,105 | ||||||
|
| |||||||
527,820 | ||||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY |
| 3,690,003 | ||||||
|
| |||||||
CONSUMER STAPLES – 8.1% |
| |||||||
Beverages – 1.8% | ||||||||
Brown-Forman Corp. Class B | 3,384 | 167,169 | ||||||
The Coca-Cola Co. | 8,302 | 380,564 | ||||||
|
| |||||||
547,733 | ||||||||
|
| |||||||
Household Products – 4.1% | ||||||||
Church & Dwight Co., Inc. | 3,381 | 180,376 | ||||||
Colgate-Palmolive Co. | 3,247 | 234,434 | ||||||
Kimberly-Clark Corp. | 1,600 | 197,056 | ||||||
The Clorox Co. | 1,319 | 176,073 | ||||||
The Procter & Gamble Co. | 4,993 | 453,464 | ||||||
|
| |||||||
1,241,403 | ||||||||
|
| |||||||
Tobacco – 2.2% | ||||||||
Altria Group, Inc. | 4,428 | 287,687 | ||||||
Philip Morris International, Inc. | 3,385 | 395,064 | ||||||
|
| |||||||
682,751 | ||||||||
|
| |||||||
TOTAL CONSUMER STAPLES |
| 2,471,887 | ||||||
|
| |||||||
ENERGY – 5.6% | ||||||||
Energy Equipment & Services – 2.1% |
| |||||||
Baker Hughes a GE Co. | 2,033 | 74,998 | ||||||
Core Laboratories N.V. (b) | 847 | 85,149 | ||||||
Ensco PLC Class A (b) | 9,041 | 47,827 | ||||||
Helmerich & Payne, Inc. (b) | 1,471 | 74,462 | ||||||
National Oilwell Varco, Inc. | 2,951 | 96,527 | ||||||
Schlumberger Ltd. | 2,937 | 201,478 |
Shares | Value | |||||||
Transocean Ltd. (a)(b) | 7,372 | $ | 63,768 | |||||
|
| |||||||
644,209 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels – 3.5% |
| |||||||
Andeavor | 1,289 | 128,294 | ||||||
Exxon Mobil Corp. | 6,427 | 514,417 | ||||||
Kinder Morgan, Inc. | 6,625 | 135,349 | ||||||
Phillips 66 | 1,729 | 144,804 | ||||||
Valero Energy Corp. | 2,018 | 139,181 | ||||||
|
| |||||||
1,062,045 | ||||||||
|
| |||||||
TOTAL ENERGY | 1,706,254 | |||||||
|
| |||||||
FINANCIALS – 14.7% | ||||||||
Banks – 5.4% | ||||||||
Bank of Hawaii Corp. | 2,865 | 239,714 | ||||||
East West Bancorp, Inc. | 4,815 | 274,359 | ||||||
US Bancorp | 6,437 | 339,745 | ||||||
Wells Fargo & Co. | 9,961 | 537,296 | ||||||
Western Alliance Bancorp (a) | 4,902 | 246,963 | ||||||
|
| |||||||
1,638,077 | ||||||||
|
| |||||||
Capital Markets – 6.9% | ||||||||
CBOE Holdings, Inc. | 3,093 | 292,381 | ||||||
CME Group, Inc. | 2,355 | 288,770 | ||||||
FactSet Research Systems, Inc. | 1,387 | 231,934 | ||||||
Moody’s Corp. | 2,444 | 321,704 | ||||||
Morgan Stanley | 7,377 | 345,981 | ||||||
S&P Global, Inc. | 2,272 | 348,957 | ||||||
SEI Investments Co. | 4,961 | 280,346 | ||||||
|
| |||||||
2,110,073 | ||||||||
|
| |||||||
Consumer Finance – 1.5% | ||||||||
Discover Financial Services | 3,932 | 239,616 | ||||||
Synchrony Financial | 7,596 | 230,311 | ||||||
|
| |||||||
469,927 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trust (REITs) – 0.9% |
| |||||||
AGNC Investment Corp. | 12,828 | 271,697 | ||||||
|
| |||||||
TOTAL FINANCIALS | 4,489,774 | |||||||
|
| |||||||
HEALTH CARE – 13.4% | ||||||||
Biotechnology – 6.9% | ||||||||
AbbVie, Inc. | 5,818 | 406,736 | ||||||
Amgen, Inc. | 2,375 | 414,461 | ||||||
Biogen, Inc. (a) | 1,138 | 329,554 | ||||||
Celgene Corp. (a) | 2,967 | 401,762 | ||||||
Gilead Sciences, Inc. | 4,830 | 367,515 | ||||||
United Therapeutics Corp. (a) | 1,431 | 183,740 | ||||||
|
| |||||||
2,103,768 | ||||||||
|
| |||||||
Life Sciences Tools & Services – 1.0% |
| |||||||
Mettler-Toledo International, Inc. (a) | 559 | 320,352 | ||||||
|
| |||||||
Pharmaceuticals – 5.5% | ||||||||
Johnson & Johnson | 5,482 | 727,571 | ||||||
Merck & Co., Inc. | 7,065 | 451,312 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 36 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE – continued | ||||||||
Pharmaceuticals – continued | ||||||||
Pfizer, Inc. | 14,931 | $ | 495,112 | |||||
|
| |||||||
1,673,995 | ||||||||
|
| |||||||
TOTAL HEALTH CARE |
| 4,098,115 | ||||||
|
| |||||||
INDUSTRIALS – 11.0% |
| |||||||
Aerospace & Defense – 2.4% | ||||||||
Lockheed Martin Corp. | 1,006 | 293,883 | ||||||
The Boeing Co. | 1,788 | 433,518 | ||||||
|
| |||||||
727,401 | ||||||||
|
| |||||||
Air Freight & Logistics – 0.7% |
| |||||||
Expeditors International of Washington, Inc. | 3,501 | 206,139 | ||||||
|
| |||||||
Airlines – 0.7% | ||||||||
Delta Air Lines, Inc. | 4,554 | 224,786 | ||||||
|
| |||||||
Commercial Services & Supplies – 0.7% |
| |||||||
Rollins, Inc. | 5,022 | 218,005 | ||||||
|
| |||||||
Electrical Equipment – 0.7% | ||||||||
Rockwell Automation, Inc. | 1,326 | 218,830 | ||||||
|
| |||||||
Industrial Conglomerates – 2.2% |
| |||||||
3M Co. | 1,752 | 352,450 | ||||||
Honeywell International, Inc. | 2,426 | 330,227 | ||||||
|
| |||||||
682,677 | ||||||||
|
| |||||||
Machinery – 1.6% | ||||||||
Graco, Inc. | 1,999 | 231,964 | ||||||
Illinois Tool Works, Inc. | 1,757 | 247,227 | ||||||
|
| |||||||
479,191 | ||||||||
|
| |||||||
Professional Services – 0.5% | ||||||||
The Dun & Bradstreet Corp. | 1,438 | 159,273 | ||||||
|
| |||||||
Road & Rail – 0.9% | ||||||||
Union Pacific Corp. | 2,650 | 272,844 | ||||||
|
| |||||||
Trading Companies & Distributors – 0.6% |
| |||||||
Fastenal Co. | 3,871 | 166,298 | ||||||
|
| |||||||
TOTAL INDUSTRIALS |
| 3,355,444 | ||||||
|
| |||||||
INFORMATION TECHNOLOGY – 22.6% |
| |||||||
Communications Equipment – 0.5% |
| |||||||
F5 Networks, Inc. (a) | 1,351 | 163,133 | ||||||
|
| |||||||
Internet Software & Services – 6.1% |
| |||||||
Alphabet, Inc. Class A (a) | 957 | 904,844 | ||||||
Facebook, Inc. Class A (a) | 4,296 | 727,098 | ||||||
VeriSign, Inc. (a)(b) | 2,200 | 222,574 | ||||||
|
| |||||||
1,854,516 | ||||||||
|
| |||||||
IT Services – 5.1% | ||||||||
Accenture PLC Class A | 2,291 | 295,127 | ||||||
Automatic Data Processing, Inc. | 2,344 | 278,725 | ||||||
Mastercard, Inc. Class A | 2,835 | 362,313 | ||||||
Paychex, Inc. | 3,324 | 192,293 |
Shares | Value | |||||||
Visa, Inc. Class A | 4,454 | $ | 443,440 | |||||
|
| |||||||
1,571,898 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 0.9% |
| |||||||
Texas Instruments, Inc. | 3,522 | 286,620 | ||||||
|
| |||||||
Software – 6.0% | ||||||||
Adobe Systems, Inc. (a) | 2,139 | 313,342 | ||||||
Check Point Software Technologies Ltd. (a) | 1,898 | 200,771 | ||||||
Microsoft Corp. | 12,639 | 918,855 | ||||||
Oracle Corp. | 8,096 | 404,233 | ||||||
|
| |||||||
1,837,201 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 4.0% |
| |||||||
Apple, Inc. | 8,142 | 1,210,960 | ||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY |
| 6,924,328 | ||||||
|
| |||||||
MATERIALS – 3.3% |
| |||||||
Chemicals – 2.8% | ||||||||
Air Products & Chemicals, Inc. | 639 | 90,834 | ||||||
Celanese Corp. Class A | 741 | 71,262 | ||||||
Ecolab, Inc. | 741 | 97,568 | ||||||
International Flavors & Fragrances, Inc. | 519 | 69,121 | ||||||
LyondellBasell Industries N.V. Class A | 948 | 85,405 | ||||||
Monsanto Co. | 1,016 | 118,689 | ||||||
Praxair, Inc. | 795 | 103,477 | ||||||
The Dow Chemical Co. | 2,269 | 145,761 | ||||||
The Sherwin-Williams Co. | 268 | 90,388 | ||||||
|
| |||||||
872,505 | ||||||||
|
| |||||||
Construction Materials – 0.2% |
| |||||||
Eagle Materials, Inc. | 531 | 49,967 | ||||||
|
| |||||||
Containers & Packaging – 0.3% |
| |||||||
International Paper Co. | 1,441 | 79,226 | ||||||
|
| |||||||
TOTAL MATERIALS |
| 1,001,698 | ||||||
|
| |||||||
REAL ESTATE – 3.9% |
| |||||||
Equity Real Estate Investment Trusts (REITs) – 3.9% |
| |||||||
AvalonBay Communities, Inc. | 388 | 74,632 | ||||||
Camden Property Trust | 547 | 49,066 | ||||||
Digital Realty Trust, Inc. | 543 | 62,630 | ||||||
Duke Realty Corp. | 1,928 | 55,121 | ||||||
Equity Residential | 1,083 | 73,709 | ||||||
Essex Property Trust, Inc. | 249 | 65,163 | ||||||
Federal Realty Investment Trust | 361 | 47,879 | ||||||
GGP, Inc. | 2,219 | 50,172 | ||||||
HCP, Inc. | 1,786 | 56,527 | ||||||
Kilroy Realty Corp. | 621 | 43,104 | ||||||
National Retail Properties, Inc. | 1,035 | 41,379 | ||||||
Prologis, Inc. | 1,434 | 87,201 | ||||||
Public Storage | 363 | 74,622 | ||||||
Realty Income Corp. | 945 | 53,922 | ||||||
SBA Communications Corp. (a) | 405 | 55,708 |
See accompanying notes which are an integral part of the financial statements.
37 | Annual Report |
Table of Contents
Fidelity Quality Factor ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE – continued | ||||||||
Equity Real Estate Investment Trusts (REITs) – continued |
| |||||||
Simon Property Group, Inc. | 603 | $ | 95,575 | |||||
UDR, Inc. | 1,386 | 54,179 | ||||||
Ventas, Inc. | 1,042 | 70,179 | ||||||
Welltower, Inc. | 1,024 | 75,151 | ||||||
|
| |||||||
TOTAL REAL ESTATE | 1,185,919 | |||||||
|
| |||||||
TELECOMMUNICATION SERVICES – 2.0% |
| |||||||
Diversified Telecommunication Services – 2.0% |
| |||||||
AT&T, Inc. | 8,477 | 330,603 | ||||||
Verizon Communications, Inc. | 5,748 | 278,203 | ||||||
|
| |||||||
TOTAL TELECOMMUNICATION SERVICES |
| 608,806 | ||||||
|
| |||||||
UTILITIES – 3.2% |
| |||||||
Electric Utilities – 1.2% | ||||||||
IDACORP, Inc. | 1,069 | 92,319 | ||||||
NextEra Energy, Inc. | 1,244 | 181,736 | ||||||
OGE Energy Corp. | 2,574 | 92,303 | ||||||
|
| |||||||
366,358 | ||||||||
|
| |||||||
Gas Utilities – 0.3% | ||||||||
UGI Corp. | 1,902 | 95,994 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers – 0.3% |
| |||||||
AES Corp. | 7,779 | 86,969 | ||||||
|
| |||||||
Multi-Utilities – 1.4% | ||||||||
CenterPoint Energy, Inc. | 3,517 | 99,144 | ||||||
Consolidated Edison, Inc. | 1,432 | 118,656 | ||||||
Public Service Enterprise Group, Inc. | 2,453 | 110,312 | ||||||
WEC Energy Group, Inc. | 1,757 | 110,638 | ||||||
|
| |||||||
438,750 | ||||||||
|
| |||||||
TOTAL UTILITIES | 988,071 | |||||||
|
| |||||||
TOTAL COMMON STOCKS | 30,520,299 | |||||||
|
|
Money Market Funds – 2.5% | ||||||||
Shares | Value | |||||||
Fidelity Cash Central Fund, 1.11% (c) | 50,850 | $ | 50,860 | |||||
Fidelity Securities Lending Cash Central Fund, 1.11% (c)(d) | 723,278 | 723,350 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUNDS |
| 774,210 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 102.4% |
| 31,294,509 | ||||||
NET OTHER ASSETS (LIABILITIES) – (2.4%) |
| (725,968 | ) | |||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 30,568,541 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | Security or a portion of the security is on loan at period end. |
(c) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund’s holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund’s financial statements, which are not covered by the Fund’s Report of Independent Registered Public Accounting Firm, are available on the SEC’s website or upon request. |
(d) | Investment made with cash collateral received from securities on loan. |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned | |||
Fidelity Cash Central Fund | $ | 156 | ||
Fidelity Securities Lending Cash Central Fund | 1,582 | |||
|
| |||
Total | $ | 1,738 | ||
|
|
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
Annual Report | 38 |
Table of Contents
Fidelity Value Factor ETF
Investments July 31, 2017
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
CONSUMER DISCRETIONARY – 11.8% |
| |||||||
Automobiles – 2.0% |
| |||||||
Ford Motor Co. | 32,051 | $ | 359,612 | |||||
General Motors Co. | 11,133 | 400,566 | ||||||
|
| |||||||
760,178 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure – 4.8% |
| |||||||
Darden Restaurants, Inc. | 4,628 | 388,197 | ||||||
McDonald’s Corp. | 3,909 | 606,442 | ||||||
Royal Caribbean Cruises Ltd. | 3,642 | 411,801 | ||||||
Wyndham Worldwide Corp. | 4,181 | 436,371 | ||||||
|
| |||||||
1,842,811 | ||||||||
|
| |||||||
Media – 1.9% |
| |||||||
Time Warner, Inc. | 4,556 | 466,625 | ||||||
Viacom, Inc. Class B | 8,206 | 286,554 | ||||||
|
| |||||||
753,179 | ||||||||
|
| |||||||
Multiline Retail – 1.7% |
| |||||||
Kohl’s Corp. (a) | 8,264 | 341,716 | ||||||
Target Corp. | 5,883 | 333,390 | ||||||
|
| |||||||
675,106 | ||||||||
|
| |||||||
Specialty Retail – 0.6% |
| |||||||
Bed Bath & Beyond, Inc. | 8,167 | 244,193 | ||||||
|
| |||||||
Textiles, Apparel & Luxury Goods – 0.8% |
| |||||||
Michael Kors Holdings Ltd. (b) | 8,023 | 292,358 | ||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY |
| 4,567,825 | ||||||
|
| |||||||
CONSUMER STAPLES – 8.7% |
| |||||||
Beverages – 2.5% |
| |||||||
PepsiCo, Inc. | 4,074 | 475,069 | ||||||
The Coca-Cola Co. | 10,672 | 489,205 | ||||||
|
| |||||||
964,274 | ||||||||
|
| |||||||
Food & Staples Retailing – 1.9% |
| |||||||
CVS Health Corp. | 4,172 | 333,468 | ||||||
Wal-Mart Stores, Inc. | 5,176 | 414,028 | ||||||
|
| |||||||
747,496 | ||||||||
|
| |||||||
Food Products – 2.2% |
| |||||||
Archer-Daniels-Midland Co. | 5,081 | 214,317 | ||||||
Bunge Ltd. | 2,877 | 225,528 | ||||||
Ingredion, Inc. | 1,695 | 209,027 | ||||||
Tyson Foods, Inc. Class A | 3,272 | 207,314 | ||||||
|
| |||||||
856,186 | ||||||||
|
| |||||||
Household Products – 1.5% |
| |||||||
The Procter & Gamble Co. | 6,399 | 581,157 | ||||||
|
| |||||||
Personal Products – 0.6% |
| |||||||
Herbalife Ltd. (a)(b) | 3,361 | 223,540 | ||||||
|
| |||||||
TOTAL CONSUMER STAPLES |
| 3,372,653 | ||||||
|
| |||||||
ENERGY – 5.9% |
| |||||||
Energy Equipment & Services – 0.8% |
| |||||||
Ensco PLC Class A (a) | 8,289 | 43,849 | ||||||
Schlumberger Ltd. | 3,280 | 225,008 |
Shares | Value | |||||||
Transocean Ltd. (a)(b) | 6,821 | $ | 59,002 | |||||
|
| |||||||
327,859 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels – 5.1% |
| |||||||
Andeavor | 1,219 | 121,327 | ||||||
Chevron Corp. | 3,804 | 415,359 | ||||||
ConocoPhillips | 3,753 | 170,273 | ||||||
Exxon Mobil Corp. | 7,703 | 616,548 | ||||||
Kinder Morgan, Inc. | 6,843 | 139,802 | ||||||
Marathon Petroleum Corp. | 2,635 | 147,534 | ||||||
Phillips 66 | 1,761 | 147,484 | ||||||
Valero Energy Corp. | 2,029 | 139,940 | ||||||
World Fuel Services Corp. | 2,011 | 65,036 | ||||||
|
| |||||||
1,963,303 | ||||||||
|
| |||||||
TOTAL ENERGY | 2,291,162 | |||||||
|
| |||||||
FINANCIALS – 14.7% | ||||||||
Banks – 7.4% | ||||||||
Bank of America Corp. | 24,489 | 590,675 | ||||||
CIT Group, Inc. | 4,865 | 231,817 | ||||||
Citigroup, Inc. | 7,913 | 541,645 | ||||||
JPMorgan Chase & Co. | 7,959 | 730,636 | ||||||
Popular, Inc. | 4,454 | 187,691 | ||||||
Wells Fargo & Co. | 10,622 | 572,951 | ||||||
|
| |||||||
2,855,415 | ||||||||
|
| |||||||
Capital Markets – 0.8% | ||||||||
Morgan Stanley | 6,747 | 316,434 | ||||||
|
| |||||||
Consumer Finance – 1.7% | ||||||||
Capital One Financial Corp. | 2,947 | 253,973 | ||||||
Discover Financial Services | 3,365 | 205,063 | ||||||
Synchrony Financial | 6,520 | 197,686 | ||||||
|
| |||||||
656,722 | ||||||||
|
| |||||||
Diversified Financial Services – 1.9% |
| |||||||
Berkshire Hathaway, Inc. Class B (b) | 4,196 | 734,174 | ||||||
|
| |||||||
Insurance – 2.9% | ||||||||
Aflac, Inc. | 3,404 | 271,469 | ||||||
MetLife, Inc. | 5,389 | 296,395 | ||||||
Prudential Financial, Inc. | 2,478 | 280,584 | ||||||
The Travelers Cos., Inc. | 2,042 | 261,560 | ||||||
|
| |||||||
1,110,008 | ||||||||
|
| |||||||
TOTAL FINANCIALS | 5,672,753 | |||||||
|
| |||||||
HEALTH CARE – 13.7% | ||||||||
Biotechnology – 3.7% | ||||||||
Amgen, Inc. | 3,058 | 533,652 | ||||||
Biogen, Inc. (b) | 1,473 | 426,566 | ||||||
Gilead Sciences, Inc. | 6,226 | 473,736 | ||||||
|
| |||||||
1,433,954 | ||||||||
|
| |||||||
Health Care Providers & Services – 4.4% |
| |||||||
Aetna, Inc. | 3,028 | 467,251 | ||||||
Anthem, Inc. | 2,305 | 429,214 |
See accompanying notes which are an integral part of the financial statements.
39 | Annual Report |
Table of Contents
Fidelity Value Factor ETF
Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE – continued | ||||||||
Health Care Providers & Services – continued |
| |||||||
Humana, Inc. | 1,728 | $ | 399,514 | |||||
McKesson Corp. | 2,498 | 404,351 | ||||||
|
| |||||||
1,700,330 | ||||||||
|
| |||||||
Pharmaceuticals – 5.6% | ||||||||
Johnson & Johnson | 6,994 | 928,244 | ||||||
Merck & Co., Inc. | 9,067 | 579,200 | ||||||
Pfizer, Inc. | 19,102 | 633,422 | ||||||
|
| |||||||
2,140,866 | ||||||||
|
| |||||||
TOTAL HEALTH CARE | 5,275,150 | |||||||
|
| |||||||
INDUSTRIALS – 10.5% | ||||||||
Aerospace & Defense – 2.3% | ||||||||
Spirit AeroSystems Holdings, Inc. Class A | 4,881 | 294,959 | ||||||
The Boeing Co. | 2,502 | 606,635 | ||||||
|
| |||||||
901,594 | ||||||||
|
| |||||||
Airlines – 3.2% | ||||||||
American Airlines Group, Inc. | 6,659 | 335,880 | ||||||
Delta Air Lines, Inc. | 6,581 | 324,838 | ||||||
JetBlue Airways Corp. (b) | 13,764 | 301,845 | ||||||
United Continental Holdings, Inc. (b) | 4,018 | 271,938 | ||||||
|
| |||||||
1,234,501 | ||||||||
|
| |||||||
Building Products – 0.8% | ||||||||
Owens Corning | 4,860 | 325,863 | ||||||
|
| |||||||
Construction & Engineering – 0.4% | ||||||||
Chicago Bridge & Iron Co. N.V. (a) | 7,984 | 149,620 | ||||||
|
| |||||||
Machinery – 1.6% | ||||||||
Cummins, Inc. | 2,000 | 335,800 | ||||||
Trinity Industries, Inc. | 9,558 | 261,985 | ||||||
|
| |||||||
597,785 | ||||||||
|
| |||||||
Professional Services – 0.8% | ||||||||
ManpowerGroup, Inc. | 2,744 | 294,020 | ||||||
|
| |||||||
Trading Companies & Distributors – 1.4% |
| |||||||
AerCap Holdings N.V. (b) | 6,025 | 295,827 | ||||||
United Rentals, Inc. (b) | 2,152 | 256,002 | ||||||
|
| |||||||
551,829 | ||||||||
|
| |||||||
TOTAL INDUSTRIALS | 4,055,212 | |||||||
|
| |||||||
INFORMATION TECHNOLOGY – 22.2% | ||||||||
Communications Equipment – 1.2% | ||||||||
Cisco Systems, Inc. | 15,309 | 481,468 | ||||||
|
| |||||||
Internet Software & Services – 3.8% | ||||||||
Alphabet, Inc. Class A (b) | 1,218 | 1,151,619 | ||||||
eBay, Inc. (b) | 8,709 | 311,173 | ||||||
|
| |||||||
1,462,792 | ||||||||
|
| |||||||
IT Services – 4.2% | ||||||||
Accenture PLC Class A | 2,978 | 383,626 | ||||||
Alliance Data Systems Corp. | 1,088 | 262,676 |
Shares | Value | |||||||
Cognizant Technology Solutions Corp. Class A | 5,329 | $ | 369,406 | |||||
International Business Machines Corp. | 2,682 | 388,005 | ||||||
The Western Union Co. | 12,156 | 240,081 | ||||||
|
| |||||||
1,643,794 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 3.1% |
| |||||||
Intel Corp. | 13,756 | 487,925 | ||||||
Lam Research Corp. | 2,184 | 348,261 | ||||||
QUALCOMM, Inc. | 6,648 | 353,607 | ||||||
|
| |||||||
1,189,793 | ||||||||
|
| |||||||
Software – 4.4% | ||||||||
Microsoft Corp. | 16,081 | 1,169,089 | ||||||
Oracle Corp. | 10,449 | 521,718 | ||||||
|
| |||||||
1,690,807 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 5.5% |
| |||||||
Apple, Inc. | 10,333 | 1,536,827 | ||||||
HP, Inc. | 17,540 | 335,014 | ||||||
Xerox Corp. | 8,191 | 251,218 | ||||||
|
| |||||||
2,123,059 | ||||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY | 8,591,713 | |||||||
|
| |||||||
MATERIALS – 3.2% | ||||||||
Chemicals – 1.8% | ||||||||
Celanese Corp. Class A | 1,116 | 107,326 | ||||||
Eastman Chemical Co. | 1,231 | 102,370 | ||||||
Huntsman Corp. | 4,069 | 108,317 | ||||||
LyondellBasell Industries N.V. Class A | 1,361 | 122,612 | ||||||
The Dow Chemical Co. | 3,091 | 198,566 | ||||||
Trinseo S.A. | 1,200 | 84,360 | ||||||
|
| |||||||
723,551 | ||||||||
|
| |||||||
Containers & Packaging – 0.6% | ||||||||
International Paper Co. | 2,109 | 115,953 | ||||||
WestRock Co. | 1,842 | 105,767 | ||||||
|
| |||||||
221,720 | ||||||||
|
| |||||||
Metals & Mining – 0.8% | ||||||||
Newmont Mining Corp. | 2,958 | 109,949 | ||||||
Nucor Corp. | 1,855 | 106,978 | ||||||
Steel Dynamics, Inc. | 2,657 | 94,084 | ||||||
|
| |||||||
311,011 | ||||||||
|
| |||||||
TOTAL MATERIALS | 1,256,282 | |||||||
|
| |||||||
REAL ESTATE – 3.7% | ||||||||
Equity Real Estate Investment Trusts (REITs) – 3.5% |
| |||||||
Apple Hospitality REIT, Inc. | 3,013 | 55,620 | ||||||
Colony NorthStar, Inc. Class A | 4,742 | 69,423 | ||||||
Equity Commonwealth (b) | 1,987 | 62,749 | ||||||
Equity Residential | 1,501 | 102,158 | ||||||
HCP, Inc. | 2,532 | 80,138 | ||||||
Hospitality Properties Trust | 2,013 | 58,498 | ||||||
Host Hotels & Resorts, Inc. | 4,242 | 79,156 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 40 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE – continued | ||||||||
Equity Real Estate Investment Trusts (REITs) – continued |
| |||||||
LaSalle Hotel Properties | 2,014 | $ | 59,493 | |||||
Medical Properties Trust, Inc. | 4,806 | 62,382 | ||||||
Omega Healthcare Investors, Inc. (a) | 2,018 | 63,749 | ||||||
Prologis, Inc. | 1,978 | 120,282 | ||||||
RLJ Lodging Trust | 2,580 | 54,593 | ||||||
Simon Property Group, Inc. | 808 | 128,068 | ||||||
SL Green Realty Corp. | 666 | 68,778 | ||||||
Sunstone Hotel Investors, Inc. | 4,030 | 65,608 | ||||||
Ventas, Inc. | 1,454 | 97,927 | ||||||
Welltower, Inc. | 1,407 | 103,260 | ||||||
|
| |||||||
1,331,882 | ||||||||
|
| |||||||
Real Estate Management & Development – 0.2% |
| |||||||
CBRE Group, Inc. Class A (b) | 2,262 | 85,933 | ||||||
|
| |||||||
TOTAL REAL ESTATE | 1,417,815 | |||||||
|
| |||||||
TELECOMMUNICATION SERVICES – 2.1% | ||||||||
Diversified Telecommunication Services – 2.1% |
| |||||||
AT&T, Inc. | 10,682 | 416,598 | ||||||
CenturyLink, Inc. (a) | 2,154 | 50,124 | ||||||
Verizon Communications, Inc. | 7,240 | 350,416 | ||||||
|
| |||||||
TOTAL TELECOMMUNICATION SERVICES | 817,138 | |||||||
|
| |||||||
UTILITIES – 3.3% | ||||||||
Electric Utilities – 2.4% | ||||||||
Duke Energy Corp. | 2,272 | 193,393 | ||||||
Entergy Corp. | 1,538 | 117,995 | ||||||
Exelon Corp. | 3,975 | 152,402 | ||||||
FirstEnergy Corp. | 3,664 | 116,918 | ||||||
Great Plains Energy, Inc. | 3,633 | 112,114 | ||||||
NextEra Energy, Inc. | 1,477 | 215,775 | ||||||
|
| |||||||
908,597 | ||||||||
|
| |||||||
Independent Power and Renewable Electricity Producers – 0.6% |
| |||||||
AES Corp. | 8,947 | 100,027 |
Shares | Value | |||||||
Calpine Corp. (b) | 8,334 | $ | 119,843 | |||||
|
| |||||||
219,870 | ||||||||
|
| |||||||
Multi-Utilities – 0.3% | ||||||||
Public Service Enterprise Group, Inc. | 2,864 | 128,794 | ||||||
|
| |||||||
TOTAL UTILITIES | 1,257,261 | |||||||
|
| |||||||
TOTAL COMMON STOCKS | 38,574,964 | |||||||
|
| |||||||
Money Market Funds – 2.2% | ||||||||
Fidelity Cash Central Fund, 1.11% (c) | 23,364 | 23,369 | ||||||
Fidelity Securities Lending Cash Central Fund, 1.11% (c)(d) | 827,600 | 827,683 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUNDS |
| 851,052 | ||||||
|
| |||||||
TOTAL INVESTMENT PORTFOLIO – 102.0% |
| 39,426,016 | ||||||
NET OTHER ASSETS (LIABILITIES) – (2.0%) |
| (787,291 | ) | |||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 38,638,725 | |||||
|
|
Legend
(a) | Security or a portion of the security is on loan at period end. |
(b) | Non-income producing. |
(c) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund’s holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund’s financial statements, which are not covered by the Fund’s Report of Independent Registered Public Accounting Firm, are available on the SEC’s website or upon request. |
(d) | Investment made with cash collateral received from securities on loan. |
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund | Income earned | |||
Fidelity Cash Central Fund | $ | 317 | ||
Fidelity Securities Lending Cash Central Fund | 926 | |||
|
| |||
Total | $ | 1,243 | ||
|
|
Investment Valuation
All investments are categorized as Level 1 under the Fair Value Hierarchy. 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 please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
See accompanying notes which are an integral part of the financial statements.
41 | Annual Report |
Table of Contents
Statements of Assets and Liabilities | ||||||||||||||||
July 31, 2017 | ||||||||||||||||
Fidelity Core Dividend ETF | Fidelity Dividend ETF for Rising Rates | Fidelity Low Volatility Factor ETF | Fidelity Momentum Factor ETF | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at value (including securities loaned of $2,068,288, $1,617,488, $— and $—, respectively) – See accompanying schedule | ||||||||||||||||
Unaffiliated issuers | $ | 59,200,001 | $ | 152,143,391 | $ | 33,716,535 | $ | 35,693,796 | ||||||||
Fidelity Central Funds | 2,389,081 | 2,150,879 | 94,695 | 25,442 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments | $ | 61,589,082 | $ | 154,294,270 | $ | 33,811,230 | $ | 35,719,238 | ||||||||
Cash | 8,113 | 14,930 | — | 7,463 | ||||||||||||
Foreign currency held at value (cost $9,162, $24,710, $— and $—, respectively) | 9,428 | 25,365 | — | — | ||||||||||||
Receivable for investments sold | 32 | — | 5,683,732 | — | ||||||||||||
Receivable for fund shares sold | 2,697,702 | — | 2,814,715 | — | ||||||||||||
Dividends receivable | 75,342 | 159,199 | 24,629 | 26,125 | ||||||||||||
Distributions receivable from Fidelity Central Funds | 3,866 | 2,285 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 64,383,565 | 154,496,049 | 42,334,306 | 35,752,826 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Payable for investments purchased | 2,866,160 | 302,244 | 4,272,555 | — | ||||||||||||
Payable for fund shares redeemed | — | — | 4,221,162 | — | ||||||||||||
Accrued management fees | 13,353 | 35,530 | 7,383 | 8,079 | ||||||||||||
Collateral on securities loaned, at value | 2,153,829 | 1,666,096 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 5,033,342 | 2,003,870 | 8,501,100 | 8,079 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 59,350,223 | $ | 152,492,179 | $ | 33,833,206 | $ | 35,744,747 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets consist of: | ||||||||||||||||
Paid in capital | 58,515,978 | 150,087,551 | 32,725,453 | 33,973,782 | ||||||||||||
Undistributed net investment income | 36,075 | 187,874 | 21,632 | 19,481 | ||||||||||||
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (4,131 | ) | (116,057 | ) | (55,598 | ) | (50,218 | ) | ||||||||
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 802,301 | 2,332,811 | 1,141,719 | 1,801,702 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 59,350,223 | $ | 152,492,179 | $ | 33,833,206 | $ | 35,744,747 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 2,200,000 | 5,350,000 | 1,200,000 | 1,250,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Asset Value, offering price and redemption price per share | $ | 26.98 | $ | 28.50 | $ | 28.19 | $ | 28.60 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Investments at cost – Unaffiliated issuers | $ | 58,397,997 | $ | 149,811,309 | $ | 32,574,816 | $ | 33,892,094 | ||||||||
Investments at cost – Fidelity Central Funds | 2,389,082 | 2,150,879 | 94,695 | 25,442 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Investments at cost | $ | 60,787,079 | $ | 151,962,188 | $ | 32,669,511 | $ | 33,917,536 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 42 |
Table of Contents
Statements of Assets and Liabilities | ||||||||
July 31, 2017 | ||||||||
Fidelity Quality Factor ETF | Fidelity Value Factor ETF | |||||||
Assets | ||||||||
Investments in securities, at value (including securities loaned of $700,222 and $797,321, respectively) – See accompanying schedule | ||||||||
Unaffiliated issuers | $ | 30,520,299 | $ | 38,574,964 | ||||
Fidelity Central Funds | 774,210 | 851,052 | ||||||
|
|
|
| |||||
Total Investments | $ | 31,294,509 | $ | 39,426,016 | ||||
Cash | 5,667 | 32,778 | ||||||
Foreign currency held at value (cost $– and $–, respectively) | — | — | ||||||
Receivable for investments sold | — | — | ||||||
Receivable for fund shares sold | — | — | ||||||
Dividends receivable | 32,534 | 36,212 | ||||||
Distributions receivable from Fidelity Central Funds | 595 | 458 | ||||||
|
|
|
| |||||
Total assets | 31,333,305 | 39,495,464 | ||||||
|
|
|
| |||||
Liabilities | ||||||||
Payable for investments purchased | 34,326 | 19,970 | ||||||
Payable for fund shares redeemed | — | — | ||||||
Accrued management fees | 7,088 | 9,073 | ||||||
Collateral on securities loaned, at value | 723,350 | 827,696 | ||||||
|
|
|
| |||||
Total liabilities | 764,764 | 856,739 | ||||||
|
|
|
| |||||
Net Assets | $ | 30,568,541 | $ | 38,638,725 | ||||
|
|
|
| |||||
Net Assets consist of: | ||||||||
Paid in capital | 29,803,353 | 37,668,105 | ||||||
Undistributed net investment income | 54,599 | 30,993 | ||||||
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions | (32,228 | ) | (54,574 | ) | ||||
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies | 742,817 | 994,201 | ||||||
|
|
|
| |||||
Net Assets | $ | 30,568,541 | $ | 38,638,725 | ||||
|
|
|
| |||||
Shares outstanding | 1,050,000 | 1,300,000 | ||||||
|
|
|
| |||||
Net Asset Value, offering price and redemption price per share | $ | 29.11 | $ | 29.72 | ||||
|
|
|
| |||||
Investments at cost – Unaffiliated issuers | $ | 29,777,482 | $ | 37,580,760 | ||||
Investments at cost – Fidelity Central Funds | 774,210 | 851,055 | ||||||
|
|
|
| |||||
Investments at cost | $ | 30,551,692 | $ | 38,431,815 | ||||
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
43 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Operations | ||||||||||||||||
For the period September 12, 2016 (commencement of operations) to July 31, 2017 | ||||||||||||||||
Fidelity Core Dividend ETF | Fidelity Dividend ETF for Rising Rates | Fidelity Low Volatility Factor ETF | Fidelity Momentum Factor ETF | |||||||||||||
Investment Income | ||||||||||||||||
Dividends | $ | 1,256,720 | $ | 2,259,361 | $ | 322,212 | $ | 268,327 | ||||||||
Income from Fidelity Central Funds | 15,449 | 11,362 | 43 | 78 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total income | 1,272,169 | 2,270,723 | 322,255 | 268,405 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses | ||||||||||||||||
Management fees | 93,772 | 193,552 | 42,854 | 43,103 | ||||||||||||
Independent trustees’ compensation | 602 | 1,207 | 270 | 266 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses before reductions | 94,374 | 194,759 | 43,124 | 43,369 | ||||||||||||
Expense reductions | (27 | ) | (9 | ) | (51 | ) | (45 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 94,347 | 194,750 | 43,073 | 43,324 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 1,177,822 | 2,075,973 | 279,182 | 225,081 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) on investment securities | (4,807 | ) | (119,802 | ) | (56,665 | ) | (50,786 | ) | ||||||||
Net realized gain (loss) on In-kind redemptions | 821,295 | 4,550,784 | 759,750 | 484,119 | ||||||||||||
Net realized gain (loss) on Fidelity Central Funds | 3 | 12 | — | — | ||||||||||||
Net realized gain (loss) on foreign currency transactions | 1,102 | 3,351 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total net realized gain (loss) | 817,593 | 4,434,345 | 703,085 | 433,333 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation (depreciation) on investment securities | 802,003 | 2,332,082 | 1,141,719 | 1,801,702 | ||||||||||||
Change in net unrealized appreciation (depreciation) on assets and liabilities in foreign currencies | 298 | 729 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net unrealized appreciation (depreciation) | 802,301 | 2,332,811 | 1,141,719 | 1,801,702 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net gain (loss) | 1,619,894 | 6,767,156 | 1,844,804 | 2,235,035 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 2,797,716 | $ | 8,843,129 | $ | 2,123,986 | $ | 2,460,116 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 44 |
Table of Contents
Statements of Operations | ||||||||
For the period September 12, 2016 (commencement of operations) to July 31, 2017 | ||||||||
Fidelity Quality Factor ETF | Fidelity Value Factor ETF | |||||||
Investment Income | ||||||||
Dividends | $ | 393,352 | $ | 427,556 | ||||
Income from Fidelity Central Funds | 1,738 | 1,243 | ||||||
|
|
|
| |||||
Total income | 395,090 | 428,799 | ||||||
|
|
|
| |||||
Expenses | ||||||||
Management fees | 53,325 | 55,845 | ||||||
Independent trustees’ compensation | 359 | 359 | ||||||
|
|
|
| |||||
Total expenses before reductions | 53,684 | 56,204 | ||||||
Expense reductions | (43 | ) | (48 | ) | ||||
|
|
|
| |||||
Total expenses | 53,641 | 56,156 | ||||||
|
|
|
| |||||
Net investment income (loss) | 341,449 | 372,643 | ||||||
|
|
|
| |||||
Realized and Unrealized Gain (Loss) | ||||||||
Net realized gain (loss) on investment securities | (33,906 | ) | (60,880 | ) | ||||
Net realized gain (loss) on In-kind redemptions | 2,002,527 | 1,856,244 | ||||||
Net realized gain (loss) on Fidelity Central Funds | — | — | ||||||
Net realized gain (loss) on foreign currency transactions | — | — | ||||||
|
|
|
| |||||
Total net realized gain (loss) | 1,968,621 | 1,795,364 | ||||||
|
|
|
| |||||
Change in net unrealized appreciation (depreciation) on investment securities | 742,817 | 994,201 | ||||||
Change in net unrealized appreciation (depreciation) on assets and liabilities in foreign currencies | — | — | ||||||
|
|
|
| |||||
Total change in net unrealized appreciation (depreciation) | 742,817 | 994,201 | ||||||
|
|
|
| |||||
Net gain (loss) | 2,711,438 | 2,789,565 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | $ | 3,052,887 | $ | 3,162,208 | ||||
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
45 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Changes in Net Assets | ||||||||||||||||
For the period September 12, 2016 (commencement of operations) to July 31, 2017 | ||||||||||||||||
Fidelity Core Dividend ETF | Fidelity Rising Rates | Fidelity Low Volatility Factor ETF | Fidelity Momentum Factor ETF | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 1,177,822 | $ | 2,075,973 | $ | 279,182 | $ | 225,081 | ||||||||
Net realized gain (loss) | 817,593 | 4,434,345 | 703,085 | 433,333 | ||||||||||||
Change in net unrealized appreciation (depreciation) | 802,301 | 2,332,811 | 1,141,719 | 1,801,702 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 2,797,716 | 8,843,129 | 2,123,986 | 2,460,116 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders from net investment income | (1,142,850 | ) | (1,891,450 | ) | (257,550 | ) | (205,600 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 61,716,076 | 180,748,122 | 36,187,957 | 37,612,617 | ||||||||||||
Cost of shares redeemed | (4,020,719 | ) | (35,207,622 | ) | (4,221,187 | ) | (4,122,386 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 57,695,357 | 145,540,500 | 31,966,770 | 33,490,231 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 59,350,223 | 152,492,179 | 33,833,206 | 35,744,747 | ||||||||||||
Net Assets | ||||||||||||||||
Beginning of period | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of period | $ | 59,350,223 | $ | 152,492,179 | $ | 33,833,206 | $ | 35,744,747 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income included in net assets at end of period | $ | 36,075 | $ | 187,874 | $ | 21,632 | $ | 19,481 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 2,350,000 | 6,600,000 | 1,350,000 | 1,400,000 | ||||||||||||
Redeemed | (150,000 | ) | (1,250,000 | ) | (150,000 | ) | (150,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 2,200,000 | 5,350,000 | 1,200,000 | 1,250,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 46 |
Table of Contents
Statements of Changes in Net Assets | ||||||||
For the period September 12, 2016 (commencement of operations) to July 31, 2017 | ||||||||
Fidelity Quality Factor ETF | Fidelity Value Factor ETF | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 341,449 | $ | 372,643 | ||||
Net realized gain (loss) | 1,968,621 | 1,795,364 | ||||||
Change in net unrealized appreciation (depreciation) | 742,817 | 994,201 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 3,052,887 | 3,162,208 | ||||||
|
|
|
| |||||
Distributions to shareholders from net investment income | (286,850 | ) | (341,650 | ) | ||||
|
|
|
| |||||
Share transactions | ||||||||
Proceeds from sales of shares | 43,305,942 | 47,409,478 | ||||||
Cost of shares redeemed | (15,503,438 | ) | (11,591,311 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from share transactions | 27,802,504 | 35,818,167 | ||||||
|
|
|
| |||||
Total increase (decrease) in net assets | 30,568,541 | 38,638,725 | ||||||
Net Assets | ||||||||
Beginning of period | — | — | ||||||
|
|
|
| |||||
End of period | $ | 30,568,541 | $ | 38,638,725 | ||||
|
|
|
| |||||
Undistributed net investment income included in net assets at end of period | $ | 54,599 | $ | 30,993 | ||||
|
|
|
| |||||
Other Information | ||||||||
Shares | ||||||||
Sold | 1,600,000 | 1,700,000 | ||||||
Redeemed | (550,000 | ) | (400,000 | ) | ||||
|
|
|
| |||||
Net increase (decrease) | 1,050,000 | 1,300,000 | ||||||
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
47 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||||||
Fidelity Core Dividend ETF | Fidelity Dividend ETF for Rising Rates | Fidelity Low Volatility Factor ETF | Fidelity Momentum Factor ETF | |||||||||||||
Period ended July 31, | 2017A | 2017A | 2017A | 2017A | ||||||||||||
Selected Per-Share Data | ||||||||||||||||
Net asset value, beginning of period | $ | 25.32 | $ | 25.34 | $ | 25.31 | $ | 25.34 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Income from Investment Operations | ||||||||||||||||
Net investment income (loss)B | 0.85 | 0.76 | 0.45 | 0.36 | ||||||||||||
Net realized and unrealized gain (loss) | 1.57 | 2.98 | 2.81 | 3.19 | ||||||||||||
|
|
|
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|
|
|
| |||||||||
Total from investment operations | 2.42 | 3.74 | 3.26 | 3.55 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions from net investment income | (0.76 | ) | (0.58 | ) | (0.38 | ) | (0.29 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (0.76 | ) | (0.58 | ) | (0.38 | ) | (0.29 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net asset value, end of period | $ | 26.98 | $ | 28.50 | $ | 28.19 | $ | 28.60 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total ReturnC | 9.61 | % | 14.85 | % | 12.94 | % | 14.11 | % | ||||||||
Ratios to Average Net AssetsD,E | ||||||||||||||||
Expense before reductions | .29 | % | .29 | % | .29 | % | .29 | % | ||||||||
Expenses net of fee waivers, if any | .29 | % | .29 | % | .29 | % | .29 | % | ||||||||
Expenses net of all reductions | .29 | % | .29 | % | .29 | % | .29 | % | ||||||||
Net investment income (loss) | 3.61 | % | 3.09 | % | 1.87 | % | 1.50 | % | ||||||||
Supplemental Data | ||||||||||||||||
Net assets, end of period (000 omitted) | $ | 59,350 | $ | 152,492 | $ | 33,833 | $ | 35,745 | ||||||||
Portfolio turnover rateF,G,H | 57 | % | 52 | % | 33 | % | 106 | % |
A | For the period September 12, 2016 (commencement of operations) to July 31, 2017. |
B | Calculated based on average shares outstanding during the period. |
C | Total returns for periods of less than one year are not annualized. |
D | 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 the 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 | Amount does not include the portfolio activity of any underlying funds. |
G | Amount not annualized. |
H | Portfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 48 |
Table of Contents
Financial Highlights | ||||||||
Fidelity Quality Factor ETF | Fidelity Value Factor ETF | |||||||
Period ended July 31, | 2017A | 2017A | ||||||
Selected Per-Share Data | ||||||||
Net asset value, beginning of period | $ | 25.37 | $ | 25.37 | ||||
|
|
|
| |||||
Income from Investment Operations | ||||||||
Net investment income (loss)B | 0.45 | 0.49 | ||||||
Net realized and unrealized gain (loss) | 3.62 | 4.23 | ||||||
|
|
|
| |||||
Total from investment operations | 4.07 | 4.72 | ||||||
|
|
|
| |||||
Distributions from net investment income | (0.33 | ) | (0.37 | ) | ||||
|
|
|
| |||||
Total distributions | (0.33 | ) | (0.37 | ) | ||||
|
|
|
| |||||
Net asset value, end of period | $ | 29.11 | $ | 29.72 | ||||
|
|
|
| |||||
Total ReturnC | 16.10 | % | 18.65 | % | ||||
Ratios to Average Net AssetsD,E | ||||||||
Expense before reductions | .29 | % | .29 | % | ||||
Expenses net of fee waivers, if any | .29 | % | .29 | % | ||||
Expenses net of all reductions | .29 | % | .29 | % | ||||
Net investment income (loss) | 1.84 | % | 1.92 | % | ||||
Supplemental Data | ||||||||
Net assets, end of period (000 omitted) | $ | 30,569 | $ | 38,639 | ||||
Portfolio turnover rateF,G,H | 35 | % | 42 | % |
A | For the period September 12, 2016 (commencement of operations) to July 31, 2017. |
B | Calculated based on average shares outstanding during the period. |
C | Total returns for periods of less than one year are not annualized. |
D | 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 the 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 | Amount does not include the portfolio activity of any underlying funds. |
G | Amount not annualized. |
H | Portfolio turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial statements.
49 | Annual Report |
Table of Contents
For the period ended July 31, 2017
1. Organization.
Fidelity Core Dividend ETF, Fidelity Dividend ETF for Rising Rates, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF and Fidelity Value Factor ETF (the Funds) are exchange-traded funds of Fidelity Covington Trust (the Trust) and are authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as open-end management investment company organized as a Massachusetts business trust.
In July 2017, the Board of Trustees approved a change in the name of Fidelity Core Dividend ETF to Fidelity High Dividend ETF effective November 9, 2017.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. Each Fund’s Schedule of Investments lists each of the Fidelity Central Funds held as of year end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, each Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management Inc. (FIMM) an affiliate of Fidelity Management & Research Company (FMR). Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date are less than .005%.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds which are not covered by the Funds’ Report of Independent Registered Public Accounting Firm, are available on the SEC website or upon request.
3. Significant Accounting Policies.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services – Investments Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. 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) FairValue 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
Annual Report | 50 |
Table of Contents
3. Significant Accounting Policies – continued
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 in these circumstances. 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, including Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of Investments by input level, as of July 31, 2017, is included at the end of each applicable Fund’s Schedule of Investments.
Foreign Currency. The Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts’ terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the translation date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, 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 date. Certain distributions received by the Funds represent a return of capital or capital gain. The Funds determine the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.
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 U.S. Federal income taxes is required. As of July 31, 2017 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.
51 | Annual Report |
Table of Contents
Notes to Financial Statements – continued
3. Significant Accounting Policies – continued
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 redemptions in kind, partnerships, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period 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 Core Dividend ETF | $ | 60,813,649 | $ | 2,746,276 | $ | (1,970,843 | ) | $ | 775,433 | |||||||
Fidelity Dividend ETF for Rising Rates | 151,997,553 | 4,374,660 | (2,077,943 | ) | 2,296,717 | |||||||||||
Fidelity Low Volatility Factor ETF | 32,719,960 | 1,429,807 | (338,537 | ) | 1,091,270 | |||||||||||
Fidelity Momentum Factor ETF | 33,921,278 | 2,248,304 | (450,344 | ) | 1,797,960 | |||||||||||
Fidelity Quality Factor ETF | 30,559,868 | 1,267,766 | (533,125 | ) | 734,641 | |||||||||||
Fidelity Value Factor ETF | 38,444,451 | 1,426,633 | (445,068 | ) | 981,565 |
The tax-based components of distributable earnings as of period end were as follows for each Fund:
Undistributed ordinary income | Undistributed capital gain | Capital loss carryforward | Net unrealized appreciation (depreciation) | |||||||||||||
Fidelity Core Dividend ETF | $ | 56,093 | $ | 2,421 | $ | — | $ | 775,731 | ||||||||
Fidelity Dividend ETF for Rising Rates | 180,092 | — | (72,910 | ) | 2,297,446 | |||||||||||
Fidelity Low Volatility Factor ETF | 21,632 | — | (5,149 | ) | 1,091,270 | |||||||||||
Fidelity Momentum Factor ETF | 19,481 | — | (46,476 | ) | 1,797,960 | |||||||||||
Fidelity Quality Factor ETF | 54,599 | — | (24,052 | ) | 734,641 | |||||||||||
Fidelity Value Factor ETF | 30,993 | — | (41,938 | ) | 981,565 |
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 Dividend ETF for Rising Rates | $ | (72,910 | ) | $ | — | $ | (72,910 | ) | ||||
Fidelity Low Volatility Factor ETF | (5,149 | ) | — | (5,149 | ) | |||||||
Fidelity Momentum Factor ETF | (46,476 | ) | — | (46,476 | ) | |||||||
Fidelity Quality Factor ETF | (24,052 | ) | — | (24,052 | ) | |||||||
Fidelity Value Factor ETF | (41,938 | ) | — | (41,938 | ) |
The tax character of distributions paid was as follows:
July 31, 2017 | ||||||||||||||||
Ordinary income | Long-term capital gain | Tax return of capital | Total | |||||||||||||
Fidelity Core Dividend ETF | $ | 1,142,850 | $ | — | $ | — | $ | 1,142,850 | ||||||||
Fidelity Dividend ETF for Rising Rates | 1,891,450 | — | — | 1,891,450 | ||||||||||||
Fidelity Low Volatility Factor ETF | 257,550 | — | — | 257,550 | ||||||||||||
Fidelity Momentum Factor ETF | 205,600 | — | — | 205,600 | ||||||||||||
Fidelity Quality Factor ETF | 286,850 | — | — | 286,850 | ||||||||||||
Fidelity Value Factor ETF | 341,650 | — | — | 341,650 |
Annual Report | 52 |
Table of Contents
4. 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 Core Dividend ETF | $ | 22,951,238 | $ | 21,473,943 | ||||
Fidelity Dividend ETF for Rising Rates | 43,416,134 | 41,597,536 | ||||||
Fidelity Low Volatility Factor ETF | 5,994,790 | 5,889,866 | ||||||
Fidelity Momentum Factor ETF | 19,256,865 | 19,075,933 | ||||||
Fidelity Quality Factor ETF | 7,796,896 | 7,574,439 | ||||||
Fidelity Value Factor ETF | 9,631,200 | 9,508,512 |
Securities received or delivered in-kind through subscriptions and redemptions were as follows:
In-kind Subscriptions | In-kind Redemptions | |||||||
Fidelity Core Dividend ETF | $ | 60,209,142 | $ | 3,997,366 | ||||
Fidelity Dividend ETF for Rising Rates | 178,553,852 | 34,937,063 | ||||||
Fidelity Low Volatility Factor ETF | 35,953,289 | 4,184,714 | ||||||
Fidelity Momentum Factor ETF | 37,380,857 | 4,094,502 | ||||||
Fidelity Quality Factor ETF | 43,004,826 | 15,407,280 | ||||||
Fidelity Value Factor ETF | 47,187,955 | 11,518,675 |
5. Fees and Other Transactions with Affiliates.
Management Fee. FMR Co., Inc. (FMRC), an affiliate of FMR, provides the Funds with investment management related services for which the Funds pay a monthly management fee that is based on an annual rate of .29% of each Fund’s average net assets. Under the management contract, FMRC pays all other expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. The management fee paid to FMRC is reduced by an amount equal to the fees and expenses paid by each fund to the independent Trustees.
Sub-Adviser. Geode Capital Management, LLC (Geode), serves as sub-adviser for the Funds. Geode provides discretionary investment advisory services to the Funds and is paid by the Adviser for providing these services.
Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of the investment adviser, maintains each Fund’s accounting records. The accounting fee is based on the level of average net assets for each month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.
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 amount shown in the Purchases and Sales of Investments note.
6. Expense Reductions.
Through arrangements with each applicable Fund’s custodian, credits realized as a result of uninvested cash balances were used to reduce each applicable Fund’s management fee. During the period, these credits reduced management fees by the following amounts:
Amount | ||||
Fidelity Core Dividend ETF | $ | 27 | ||
Fidelity Dividend ETF for Rising Rates | 9 | |||
Fidelity Low Volatility Factor ETF | 51 | |||
Fidelity Momentum Factor ETF | 45 | |||
Fidelity Quality Factor ETF | 43 | |||
Fidelity Value Factor ETF | 48 |
7. Security Lending.
Certain Funds lend portfolio securities through a lending agent from time to time in order to earn additional income. On the settlement date of the loan, each applicable Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan.
53 | Annual Report |
Table of Contents
Notes to Financial Statements – continued
7. Security Lending – continued
The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. The Funds or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Funds may apply collateral received from the borrower against the obligation. The Funds may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities at period end is disclosed on each applicable Fund’s Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented on each applicable Fund’s Statement of Operations as a component of income from Fidelity Central Funds. Security lending activity was as follows:
Total security lending income | ||||
Fidelity Core Dividend ETF | $ | 15,163 | ||
Fidelity Dividend ETF for Rising Rates | 10,747 | |||
Fidelity Quality Factor ETF | 1,582 | |||
Fidelity Value Factor ETF | 926 |
8. 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.
9. 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.
Annual Report | 54 |
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Covington Trust and the Shareholders of Fidelity Core Dividend ETF, Fidelity Dividend ETF for Rising Rates, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF and Fidelity Value Factor ETF:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity Core Dividend ETF, Fidelity Dividend ETF for Rising Rates, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF and Fidelity Value Factor ETF (the “Funds”) as of July 31, 2017, and the results of each of their operations, the changes in each of their net assets and the financial highlights for the period September 12, 2016 (commencement of operations) through July 31, 2017, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements 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 are free of material misstatement. An audit 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, and evaluating the overall financial statement presentation. Our procedures include confirmation of securities owned as of July 31, 2017 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 21, 2017
55 | Annual Report |
Table of Contents
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 Core Dividend ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations* to July 31, 2017 | 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 | 20 | 9.09 | % | 166 | 75.45 | % | ||||||
25 – <50 | 1 | 0.46 | % | 30 | 13.63 | % | ||||||
50 – <75 | 0 | — | 1 | 0.46 | % | |||||||
75 – <100 | 0 | — | 2 | 0.91 | % | |||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 21 | 9.55 | % | 199 | 90.45 | % |
* | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
Fidelity Dividend ETF For Rising Rates
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations* to July 31, 2017 | 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 | 11 | 5.00 | % | 189 | 85.91 | % | ||||||
25 – <50 | 0 | — | 19 | 8.63 | % | |||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 1 | 0.46 | % | |||||||
Total | 11 | 5.00 | % | 209 | 95.00 | % |
* | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
Fidelity Low Volatility Factor ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations* to July 31, 2017 | 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 | 34 | 15.46 | % | 182 | 82.72 | % | ||||||
25 – <50 | 3 | 1.36 | % | 1 | 0.46 | % | ||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 37 | 16.82 | % | 183 | 83.18 | % |
* | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
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Fidelity Momentum Factor ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations* to July 31, 2017 | 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 | 55 | 25.00 | % | 158 | 71.82 | % | ||||||
25 – <50 | 3 | 1.36 | % | 4 | 1.82 | % | ||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 58 | 26.36 | % | 162 | 73.64 | % |
* | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
Fidelity Quality Factor ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations* to July 31, 2017 | 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 | 56 | 25.45 | % | 157 | 71.36 | % | ||||||
25 – <50 | 1 | 0.46 | % | 5 | 2.27 | % | ||||||
50 – <75 | 0 | — | 1 | 0.46 | % | |||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 57 | 25.91 | % | 163 | 74.09 | % |
* | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
Fidelity Value Factor ETF
Period Ended July 31, 2017 | ||||||||||||
From commencement of operations* to July 31, 2017 | 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 | 52 | 23.63 | % | 166 | 75.45 | % | ||||||
25 – <50 | 0 | — | 1 | 0.46 | % | |||||||
50 – <75 | 1 | 0.46 | % | 0 | — | |||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 53 | 24.09 | % | 167 | 75.91 | % |
* | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
57 | Annual Report |
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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 90 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.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-FIDELITY.
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 FMR and its affiliates with (i) identifying events or
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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 FMR, 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 but not limited to the funds’ Chief Compliance Officer (CCO), FMR’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.”
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 (UK) 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 FMR. |
+ | 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 the oil refining, drilling and marketing of petroleum products (including specialty petroleum products), 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) and serves as its President and CEO. 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. Mr. Rosow served 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). |
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Trustees and Officers (Unaudited) – continued
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
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). |
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 (if any) 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 Fidelity SelectCo, LLC (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 Trustee or 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 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). |
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Name, Year of Birth; Principal Occupation |
Carol B. Tomé (1957) |
Year of Election or Appointment: 2017 |
Member of the Advisory Board |
Ms. Tomé also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Ms. Tomé is Chief Financial Officer (2001-present) and Executive Vice President of Corporate Services (2007-present) of The Home Depot, Inc. (home improvement retailer) and a Director (2003-present) and Chair of the Audit Committee (2004-present) of United Parcel Service, Inc. (package delivery and supply chain management). Previously, Ms. Tomé served as Senior Vice President of Finance and Accounting/Treasurer (2000-2007) and Vice President and Treasurer (1995-2000) of The Home Depot, Inc. and Chair of the Board (2010-2012), Vice Chair of the Board (2009 and 2013), and a Director (2008-2013) of the Federal Reserve Bank of Atlanta. Ms. Tomé is also a director or trustee of many community and professional organizations. |
Elizabeth Paige Baumann (1968) |
Year of Election or Appointment: 2017 |
Anti-Money Laundering (AML) Officer |
Ms. Baumann also serves as AML Officer of other funds. She is Chief AML Officer (2012-present) and Senior Vice President (2014-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments. Previously, Ms. Baumann served as AML Officer of the funds (2012-2016), and Vice President (2007-2014) and Deputy Anti-Money Laundering Officer (2007-2012) of FMR LLC. |
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 (UK) 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). |
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). |
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Trustees and Officers (Unaudited) – continued
Name, Year of Birth; Principal Occupation |
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 a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), 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). |
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). |
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 (UK) 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. |
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Name, Year of Birth; Principal Occupation |
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). |
Rieco E. Mello (1969) |
Year of Election or Appointment: 2017 |
Assistant Treasurer |
Mr. Mello also serves as Assistant Treasurer of other funds. Mr. Mello is an employee of Fidelity Investments (1995-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 (accounting firm, 1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016). |
Marc L. Spector (1972) |
Year of Election or Appointment: 2017 |
Assistant Treasurer |
Mr. Spector also serves as an officer of other funds. Mr. Spector is an employee of Fidelity Investments (2016-present). Prior to joining Fidelity Investments, Mr. Spector served as Director at the Siegfried Group (accounting firm, 2013-2016), and prior to Siegfried Group as audit senior manager at Deloitte & Touche (accounting firm, 2005-2013). |
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). |
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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, 2017 to July 31, 2017).
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 Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. 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 Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. 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, 2017 | Ending Account Value July 31, 2017 | Expenses Paid During PeriodB | |||||||||||||
Fidelity Core Dividend ETF | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,043.60 | $ | 1.47 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,023.36 | $ | 1.45 | ||||||||||
Fidelity Dividend ETF For Rising Rates | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,077.30 | $ | 1.49 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,023.36 | $ | 1.45 | ||||||||||
Fidelity Low Volatility Factor ETF | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,088.80 | $ | 1.50 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,023.36 | $ | 1.45 | ||||||||||
Fidelity Momentum Factor ETF | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,098.30 | $ | 1.51 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,023.36 | $ | 1.45 | ||||||||||
Fidelity Quality Factor ETF | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,092.80 | $ | 1.50 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,023.36 | $ | 1.45 | ||||||||||
Fidelity Value Factor ETF | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,078.00 | $ | 1.49 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,023.36 | $ | 1.45 |
A | Annualized expense ratio reflects expenses net of applicable fee waivers. |
B | Expense are equal to each Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period). |
C | 5% return per year before expenses. |
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A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividend-received deduction for corporate shareholders:
September 2016 | December 2016 | March 2017 | June 2017 | |||||||||||||
Fidelity Core Dividend ETF | 58 | % | 58 | % | 80 | % | 80 | % | ||||||||
Fidelity Dividend ETF for Rising Rates | — | — | 92 | % | 92 | % | ||||||||||
Fidelity Low Volatility Factor ETF | 87 | % | 87 | % | 100 | % | 100 | % | ||||||||
Fidelity Momentum Factor ETF | 80 | % | 80 | % | 100 | % | 100 | % | ||||||||
Fidelity Quality Factor ETF | 89 | % | 89 | % | 100 | % | 100 | % | ||||||||
Fidelity Value Factor ETF | 79 | % | 79 | % | 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 2016 | December 2016 | March 2017 | June 2017 | |||||||||||||
Fidelity Core Dividend ETF | 64 | % | 64 | % | 93 | % | 93 | % | ||||||||
Fidelity Dividend ETF for Rising Rates | — | — | 100 | % | 100 | % | ||||||||||
Fidelity Low Volatility Factor ETF | 94 | % | 94 | % | 100 | % | 100 | % | ||||||||
Fidelity Momentum Factor ETF | 89 | % | 89 | % | 100 | % | 100 | % | ||||||||
Fidelity Quality Factor ETF | 92 | % | 92 | % | 100 | % | 100 | % | ||||||||
Fidelity Value Factor ETF | 83 | % | 83 | % | 100 | % | 100 | % |
The Fidelity Core Dividend ETF hereby designates as a capital gain dividend with respect to the taxable year ended July 31, 2017, $2,421, or, if subsequently determined to be different, the net capital gain of such year.
The funds will notify shareholders in January 2018 of amounts for use in preparing 2017 income tax returns.
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CPF-ANN-0917 814236.1.0 1.9881294.100 | Corporate Headquarters 245 Summer St., Boston, MA 02210 www.fidelity.com |
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Item 2. | Code of Ethics |
As of the end of the period, July 31, 2017, 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.
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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:
Services Billed by Deloitte Entities
July 31, 2017 FeesA | ||||||||||||||||
Audit Fees | Audit- Related Fees | Tax Fees | All Other Fees | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 12,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Consumer Staples Index ETF | $ | 12,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Energy Index ETF | $ | 12,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Financials Index ETF | $ | 12,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Health Care Index ETF | $ | 12,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Industrials Index ETF | $ | 12,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Information Technology Index ETF | $ | 12,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Materials Index ETF | $ | 12,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Real Estate Index ETF | $ | 12,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Telecommunication Services Index ETF | $ | 12,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Utilities Index ETF | $ | 12,000 | $ | — | $ | 2,500 | $ | — |
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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 |
A | Amounts may reflect rounding. |
The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to Fidelity Core Dividend ETF, Fidelity Dividend ETF for Rising Rates, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF and Fidelity Value Factor ETF (together with the funds in the previous table, the “Funds”):
Services Billed by PwC
July 31, 2017 FeesA,B | ||||||||||||||||
Audit Fees | Audit- Related Fees | Tax Fees | All Other Fees | |||||||||||||
Fidelity Core Dividend ETF | $ | 14,000 | $ | 400 | $ | 2,000 | $ | 400 | ||||||||
Fidelity Dividend ETF for Rising Rates | $ | 14,000 | $ | 400 | $ | 2,000 | $ | 400 | ||||||||
Fidelity Low Volatility Factor ETF | $ | 14,000 | $ | 400 | $ | 1,800 | $ | 400 | ||||||||
Fidelity Momentum Factor ETF | $ | 14,000 | $ | 400 | $ | 1,800 | $ | 400 | ||||||||
Fidelity Quality Factor ETF | $ | 14,000 | $ | 400 | $ | 1,800 | $ | 400 | ||||||||
Fidelity Value Factor ETF | $ | 14,000 | $ | 400 | $ | 1,800 | $ | 400 |
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July 31, 2016 FeesA,B | ||||||||||||||||
Audit Fees | Audit- Related Fees | Tax Fees | All Other Fees | |||||||||||||
Fidelity Core Dividend ETF | $ | — | $ | — | $ | — | $ | — | ||||||||
Fidelity Dividend ETF for Rising Rates | �� | $ | — | $ | — | $ | — | $ | — | |||||||
Fidelity Low Volatility Factor ETF | $ | — | $ | — | $ | — | $ | — | ||||||||
Fidelity Momentum Factor ETF | $ | — | $ | — | $ | — | $ | — | ||||||||
Fidelity Quality Factor ETF | $ | — | $ | — | $ | — | $ | — | ||||||||
Fidelity Value Factor ETF | $ | — | $ | — | $ | — | $ | — |
A | Amounts may reflect rounding. |
B | Fidelity Core Dividend ETF, Fidelity Dividend ETF for Rising Rates, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF and Fidelity Value Factor ETF commenced operations on September 12, 2016. |
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The following tables present fees billed by Deloitte Entities and PwC 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 or Fidelity Management & Research Company (the “Funds’ Investment Advisers”) and entities controlling, controlled by, or under common control with the Funds’ Investment Advisers (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, 2017A | July 31, 2016A | |||||||
Audit-Related Fees | $ | — | $ | 35,000 | ||||
Tax Fees | $ | 25,000 | $ | 10,000 | ||||
All Other Fees | $ | — | $ | — |
A | Amounts may reflect rounding. |
Services Billed by PwC
July 31, 2017A,B | July 31, 2016A,B,C | |||||||
Audit-Related Fees | $ | 5,990,000 | $ | 5,780,000 | ||||
Tax Fees | $ | 115,000 | $ | — | ||||
All Other Fees | $ | — | $ | — |
A | Amounts may reflect rounding. |
B | May include amounts billed prior to the commencement of operations of the Fidelity Core Dividend ETF, Fidelity Dividend ETF for Rising Rates, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF and Fidelity Value Factor ETF. |
C | Certain amounts have been reclassified to align with current period presentation. |
“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.
* * *
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The aggregate non-audit fees billed by PwC and Deloitte Entities for services rendered to the Funds, the Funds’ Investment Advisers (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, 2017 A,B | July 31, 2016 A,B | ||||||
PwC | $ | 7,960,000 | $ | 6,770,000 | ||||
Deloitte Entities | $ | 395,000 | $ | 105,000 |
A | Amounts may reflect rounding. |
B | May include amounts billed prior to the commencement of operations of the Fidelity Core Dividend ETF, Fidelity Dividend ETF for Rising Rates, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF and Fidelity Value Factor ETF. |
The trust’s audit committee (the “Audit Committee”) has considered non-audit services that were not pre-approved that were provided by PwC and Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of PwC and Deloitte Entities in their audits of the Funds, taking into account representations from PwC and Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding their independence from the Funds and their related entities and the Funds’ Investment Advisers’ 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 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 Funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a 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 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.
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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 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 Audit Committee is a separately-designated standing audit committee in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. As of July 31, 2017, 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.
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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. |
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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 28, 2017 |
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 28, 2017 | |
By: | /s/ Howard J. Galligan III | |
Howard J. Galligan III | ||
Chief Financial Officer | ||
Date: | September 28, 2017 |