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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORMN-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number811-07319
Fidelity Covington Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
William C. Coffey, 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, 2019
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Item 1. | Reports to Stockholders |
Table of Contents
Fidelity® MSCI Communication Services Index ETF
(formerly Fidelity® MSCI Telecommunications Services Index ETF)
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 Utilities Index ETF
Annual Report July 31, 2019
| ![]() |
Table of Contents
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity’s web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number | ||
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 | ||
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose ‘no’ under Required Disclosures to continue print) | 1-800-343-0860 |
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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 call1-800-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.
© 2019 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 FormN-PORT. FormsN-PORT are available on the SEC’s web site at http://www.sec.gov. A fund’s FormsN-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling1-800-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.
3 | Annual Report |
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Note to Shareholders
During January 2019 the Board approved to change the investment adviser from Fidelity SelectCo, LLC (SelectCo) to FMR Co., Inc. (FMRC) effective February 1, 2019. There was no change to the management fee.
Annual Report | 4 |
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The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to anall-time high on April 30. In May, however, volatility spiked and stocks returned-6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series ofall-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy(-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).
5 | Annual Report |
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Fidelity® MSCI Communication Services Index ETF
The information provided in the tables below shows you the performance of Fidelity® MSCI Communication Services Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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, 2019 | ||||||||||||
Average Annual Total Returns | Past 1 Year | Past 5 Years | Life of fund | |||||||||
Fidelity MSCI Communication Services Index ETF – NAVA | 21.33% | 8.60% | 8.94% | |||||||||
Fidelity MSCI Communication Services Index ETF – Market PriceB | 20.98% | 8.62% | 8.95% | |||||||||
MSCI USA IMI Communication Services 25/50 IndexA | 21.50% | 8.75% | 9.01% | |||||||||
S&P 500 IndexA | 7.99% | 11.34% | 11.98% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity® MSCI Communication 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.
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. |
Effective December 1, 2018, the fund’s sector index changed from the MSCI USA IMI Telecommunication Services 25/50 Index to the MSCI USA IMI Communication Services 25/50 Index.
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Communication 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 Communication Services 25/50 Index and the S&P 500 Index performed over the same period.
Annual Report | 6 |
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Fidelity® MSCI Communication Services Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value rose 21.33%, roughly in line with the 21.50% advance of the MSCI USA IMI Communications Services 25/50 Index. The ETF’s market price gained 20.98% over the same time frame, while the broad-market S&P 500® index added 7.99%. Communications services stocks benefited from their limited exposure to rising global trade tension, as well as secular shifts, such as the continued growth of social networking. Wireless telecommunication services (+26%), comprising 10% of the MSCI sector index, posted the best return of all subindustries, driven by the buildout of 5G networks and growth in the consumption of broadband data. Interactive media & services (+20%), comprising 27% of the MSCI index, also delivered a strong result. Within this group, shares of social media platform Facebook and Google-parent Alphabet rose notably for the year. Integrated telecommunication services (+4%), the largest component of the MSCI index, delivered a more modest result. Conversely, publishing(-1%) and advertising(-2%), each representing about 1% of the MSCI index, posted the weakest results, as advertising dollars continued to shift away from traditional print and television media to digital.
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.
7 | Annual Report |
Table of Contents
Fidelity® MSCI Communication Services Index ETF
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Facebook, Inc. Class A | 15.5 | |||
Alphabet, Inc. Class C | 11.6 | |||
Alphabet, Inc. Class A | 11.0 | |||
The Walt Disney Co. | 7.5 | |||
AT&T, Inc. | 4.7 | |||
Comcast Corp. Class A | 4.4 | |||
Verizon Communications, Inc. | 4.2 | |||
Netflix, Inc. | 4.0 | |||
Charter Communications, Inc. Class A | 2.4 | |||
T-Mobile US, Inc. | 1.7 | |||
|
| |||
67.0 | ||||
|
|
Industries as of July 31, 2019 |
Percentages shown as 0.0% may reflect amounts less than 0.05%. |
Annual Report | 8 |
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Fidelity® MSCI Consumer Discretionary Index ETF
Performance (Unaudited)
The information provided in the tables below shows you the performance of Fidelity® MSCI Consumer Discretionary Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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, 2019 | ||||||||||||
Average Annual Total Returns | Past 1 Year | Past 5 Years | Life of fund | |||||||||
Fidelity MSCI Consumer Discretionary Index ETF – NAVA | 8.15% | 13.15% | 12.49% | |||||||||
Fidelity MSCI Consumer Discretionary Index ETF – Market PriceB | 8.27% | 13.13% | 12.32% | |||||||||
MSCI USA IMI Consumer Discretionary IndexA | 8.20% | 13.27% | 12.61% | |||||||||
S&P 500 IndexA | 7.99% | 11.34% | 11.98% |
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.
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. |
$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.
9 | Annual Report |
Table of Contents
Fidelity® MSCI Consumer Discretionary Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value rose 8.15%, roughly in line with the 8.20% advance of the MSCI USA IMI Consumer Discretionary Index. The ETF’s market price gained 8.27% over the same time frame, while the broad-market S&P 500® index added 7.99%. For much of the period, the consumer discretionary sector benefited from a pause in the U.S. Federal Reserve’s multiyear string of policy interest rate increases, leading up to the Fed’s decision to cut rates slightly in July. Despite lingering concern about global trade policy, consumer confidence remained solid for the 12 months, supported by historically low unemployment and moderately rising wages. Among industries within the MSCI sector index, restaurants (+42%) performed best, driven partly by coffee giant Starbucks, which reported healthy financial results. Fast-food restaurant McDonald’s also contributed notably, aided by momentum in its same-store sales. Other outperforming industries included automotive retail (+27%) and general merchandise stores (+18%). Conversely, auto parts & equipment(-22%) and automobile manufacturers(-3%) each posted a negative result for the period, driven by sales weakness and trade-policy friction between China and the U.S. Among specific auto names, electric vehicle maker Tesla lagged notably, due to concern about future demand for Tesla’s vehicles. Casinos & gaming(-13%) also suffered, due partly to lingering trade-policy uncertainty that hurt revenue in China’s Macau region.
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.
Annual Report | 10 |
Table of Contents
Fidelity® MSCI Consumer Discretionary Index ETF
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Amazon.com, Inc. | 24.5 | |||
The Home Depot, Inc. | 7.7 | |||
McDonald’s Corp. | 5.1 | |||
Starbucks Corp. | 3.8 | |||
NIKE, Inc. Class B | 3.5 | |||
Booking Holdings, Inc. | 2.7 | |||
Lowe’s Cos., Inc. | 2.6 | |||
The TJX Cos., Inc. | 2.1 | |||
General Motors Co. | 1.6 | |||
Target Corp. | 1.4 | |||
|
| |||
55.0 | ||||
|
|
Industries as of July 31, 2019 |
* | Includes short-term investments and net other assets. |
11 | Annual Report |
Table of Contents
Fidelity® MSCI Consumer Staples Index ETF
Performance (Unaudited)
The information provided in the tables below shows you the performance of Fidelity® MSCI Consumer Staples Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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, 2019 | ||||||||||||
Average Annual Total Returns | Past 1 Year | Past 5 Years | Life of fund | |||||||||
Fidelity MSCI Consumer Staples Index ETF – NAVA | 13.16% | 9.21% | 9.09% | |||||||||
Fidelity MSCI Consumer Staples Index ETF – Market PriceB | 13.09% | 9.20% | 8.86% | |||||||||
MSCI USA IMI Consumer Staples IndexA | 13.24% | 9.36% | 9.24% | |||||||||
S&P 500 IndexA | 7.99% | 11.34% | 11.98% |
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.
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. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Consumer Staples Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Consumer Staples Index and the S&P 500 Index performed over the same period.
Annual Report | 12 |
Table of Contents
Fidelity® MSCI Consumer Staples Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value gained 13.16%, roughly in line with the 13.24% advance of the MSCI USA IMI Consumer Staples Index. The ETF’s market price rose 13.09% the past 12 months, while the broad-based S&P 500® index advanced 7.99%. Consumer staples stocks significantly outpaced the broader equity market, as investors favored more-defensive sectors amid increased market volatility, growing uncertainty about global economic growth and continued low interest rates. Much of the sector’s gain came as investors bid up stock prices relative to earnings. Within the MSCI index, household products gained 36%, helped by Procter & Gamble (+50%), which gained traction on its turnaround and benefited from price increases. The hypermarkets & super centers group (+26%) rallied on the back of Walmart (+26%) and Costco Wholesale (+27%). The soft drinks category rose 15%, buoyed by Coca-Cola (+17%). Conversely, tobacco stocks(-5%) were pressured by proposed regulatory changes in the U.S. focused on limiting nicotine content, along with competition from alternative products, includinge-cigarettes. Notable individual disappointments included Altria Group(-15%), which owns a number of companies, including Philip Morris International, and also has a stake in the Juule-cigarette brand. The packaged foods & meats category gained roughly 9%, with Kraft Heinz returning-44%, due to decelerating sales and a markdown of many of its brands.
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.
13 | Annual Report |
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Fidelity® MSCI Consumer Staples Index ETF
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
The Procter & Gamble Co. | 13.3 | |||
The Coca-Cola Co. | 11.0 | |||
Walmart, Inc. | 8.3 | |||
Philip Morris International, Inc. | 6.8 | |||
Costco Wholesale Corp. | 6.3 | |||
Altria Group, Inc. | 4.6 | |||
PepsiCo, Inc. | 4.5 | |||
Mondelez International, Inc. Class A | 4.1 | |||
Colgate-Palmolive Co. | 3.1 | |||
Kimberly-Clark Corp. | 2.5 | |||
|
| |||
64.5 | ||||
|
|
Industries as of July 31, 2019 |
* | Includes short-term investments and net other assets. |
Annual Report | 14 |
Table of Contents
Fidelity® MSCI Energy Index ETF
Performance (Unaudited)
The information provided in the tables below shows you the performance of Fidelity® MSCI Energy Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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, 2019 | ||||||||||||
Average Annual Total Returns | Past 1 Year | Past 5 Years | Life of fund | |||||||||
Fidelity MSCI Energy Index ETF – NAVA | -19.42% | -7.21% | -4.24% | |||||||||
Fidelity MSCI Energy Index ETF – Market PriceB | -19.34% | -7.20% | -4.19% | |||||||||
MSCI USA IMI Energy IndexA | -19.39% | -7.13% | -4.15% | |||||||||
S&P 500 IndexA | 7.99% | 11.34% | 11.98% |
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.
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. |
$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.
15 | Annual Report |
Table of Contents
Fidelity® MSCI Energy Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value produced a return of-19.42%, roughly in line with the-19.39% result of the MSCI USA IMI Energy Index. The ETF’s market price returned-19.34% the past 12 months, while the broad-market S&P 500® index gained 7.99%. A significant factor here was the 13% decrease in theper-barrel price of domestic crude oil (West Texas Intermediate spot price). This decline was driven by heightened trade tension between the U.S. and China, along with concerns about softening global demand at a time of peak worldwide production, which in turn weighed on stock prices in the energy sector. Looking at specific industries, oil & gas drilling(-43%), oil & gas equipment & services(-39%) and oil & gas exploration & production(-31%) stocks performed the worst this period. The oil & gas refining & marketing segment also fared poorly, returning-22%. The sector’s largest subindustry, integrated oil & gas(-6%), held up best, as it is often perceived as a more defensive investment amid periods of increased volatility within the energy sector. At an individual stock level, energy services provider Schlumberger was a major detractor, returning-38% the past 12 months, due to low activity for offshore drilling services. Shares of exploration & production companies EOG Resources, Marathon Oil and Concho Resources each returned-33% this period, amid a flight to perceived “safety” within the sector. Conversely, the stocks of large integrated energy companies with diverse operations, multiple sources of revenue and that issued dividends performed relatively well. Here, Chevron (+1%) and Exxon Mobil(-5%) were key relative outperformers.
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.
Annual Report | 16 |
Table of Contents
Fidelity® MSCI Energy Index ETF
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Exxon Mobil Corp. | 23.0 | |||
Chevron Corp. | 17.1 | |||
ConocoPhillips | 4.9 | |||
Schlumberger Ltd. | 4.0 | |||
EOG Resources, Inc. | 3.6 | |||
Phillips 66 | 3.4 | |||
Kinder Morgan, Inc. | 3.1 | |||
Occidental Petroleum Corp. | 2.8 | |||
Marathon Petroleum Corp. | 2.8 | |||
Anadarko Petroleum Corp. | 2.7 | |||
|
| |||
67.4 | ||||
|
|
Industries as of July 31, 2019 |
17 | Annual Report |
Table of Contents
Fidelity® MSCI Financials Index ETF
Performance (Unaudited)
The information provided in the tables below shows you the performance of Fidelity® MSCI Financials Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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, 2019 | ||||||||||||
Average Annual Total Returns | Past 1 Year | Past 5 Years | Life of fund | |||||||||
Fidelity MSCI Financials Index ETF – NAVA | 2.80% | 11.43% | 11.27% | |||||||||
Fidelity MSCI Financials Index ETF – Market PriceB | 2.76% | 11.37% | 11.32% | |||||||||
MSCI USA IMI Financials IndexA | 2.87% | 11.55% | 11.39% | |||||||||
S&P 500 IndexA | 7.99% | 11.34% | 11.98% |
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.
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. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Financials Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Financials Index and the S&P 500 Index performed over the same period.
Annual Report | 18 |
Table of Contents
Fidelity® MSCI Financials Index ETF
Management’s Discussion of Fund Performance
For the 12 months ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value rose 2.80%, versus the 2.87% return of the MSCI USA IMI Financials Index. The ETF’s market price gained 2.76% over the same period, while the broad-based S&P 500® index returned 7.99%. Historically low interest rates, several bouts of market volatility and global trade conflict generally kept financials stocks in check. Within the MSCI index, asset management & custody banks(-9%) faced added pressure from the proliferation of passive products and pricing headwinds. Among the biggest disappointments here was State Street(-32%), which has significant interest rate exposure. Elsewhere, investment banking & brokerage stocks(-9%) – notably Charles Schwab(-14%) and Morgan Stanley(-9%) – were hurt by low interest rates and volatility that kept many investors on the sidelines. Among diversified banks (0%), Wells Fargo(-12%) struggled, as the search for a new CEO raised added concern about the timetable of the company’s turnaround. Conversely, the more-defensive financial exchanges & data (+25%), insurance brokers (+27%) and property & casualty insurance (18%) segments rallied. The consumer finance (+17%) group, which tends to be less affected by declining interest rates, also did well, led by credit card company American Express (+27%). Elsewhere, diversified bank JPMorgan Chase & Co. (+4%), which represented nearly 10% of the MSCI sector index, contributed.
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.
19 | Annual Report |
Table of Contents
Fidelity® MSCI Financials Index ETF
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
JPMorgan Chase & Co. | 9.6 | |||
Bank of America Corp. | 7.1 | |||
Berkshire Hathaway, Inc. Class B | 6.7 | |||
Wells Fargo & Co. | 5.3 | |||
Citigroup, Inc. | 4.2 | |||
American Express Co. | 2.2 | |||
US Bancorp | 2.2 | |||
The Goldman Sachs Group, Inc. | 1.8 | |||
Chubb Ltd. | 1.8 | |||
CME Group, Inc. | 1.8 | |||
|
| |||
42.7 | ||||
|
|
Industries as of July 31, 2019 |
* | Includes short-term investments and net other assets. |
Annual Report | 20 |
Table of Contents
Fidelity® MSCI Health Care Index ETF
Performance (Unaudited)
The information provided in the tables below shows you the performance of Fidelity® MSCI Health Care Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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, 2019 | ||||||||||||
Average Annual Total Returns | Past 1 Year | Past 5 Years | Life of fund | |||||||||
Fidelity MSCI Health Care Index | 3.84% | 10.67% | 12.21% | |||||||||
Fidelity MSCI Health Care Index | 3.85% | 10.66% | 12.07% | |||||||||
MSCI USA IMI Health Care IndexA | 3.93% | 10.79% | 12.34% | |||||||||
S&P 500 IndexA | 7.99% | 11.34% | 11.98% |
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.
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. |
$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.
21 | Annual Report |
Table of Contents
Fidelity® MSCI Health Care Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value gained 3.84%, roughly in line with the 3.93% advance of the MSCI USA IMI Health Care Index. The ETF’s market price rose 3.85% over the same time frame, while the broad-market S&P 500® index added 7.99%. Many health care companies benefited from secular trends, such as an aging population and accelerating growth in several industries. However, health care stocks underperformed the broad market for the 12 months, amid a resurgence of legal and political rhetoric around the Affordable Care Act (ACA) and the potential for a“Medicare-for-all” scenario that spurred sector volatility. By segment, biotechnology(-10%) lagged considerably for the period. Within this group, shares of AbbVie(-24%) stood out to the downside, due to intensifying international competition for the firm’s flagship drug, arthritis treatment Humira®. Shares of Biogen(-29%) also fell sharply, after this biotech company announced a clinical setback for its drug candidate targeting Alzheimer’s disease. Health care supplies(-8%) and health care services(-3%) also declined for the 12 months. Conversely, health care technology (+29%) and health care equipment (21%) performed strongly within the MSCI sector index. In particular, tech company Medtronic (+15%) stood out to the upside, as did equipment firm Abbott Laboratories (+35%), the latter driven by strong sales of its FreeStyle Libre glucose monitoring system for diabetes.
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.
Annual Report | 22 |
Table of Contents
Fidelity® MSCI Health Care Index ETF
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Johnson & Johnson | 8.5 | |||
UnitedHealth Group, Inc. | 5.9 | |||
Pfizer, Inc. | 5.3 | |||
Merck & Co., Inc. | 5.3 | |||
Abbott Laboratories | 3.8 | |||
Medtronic PLC | 3.4 | |||
Amgen, Inc. | 2.9 | |||
Thermo Fisher Scientific, Inc. | 2.7 | |||
AbbVie, Inc. | 2.4 | |||
Eli Lilly & Co. | 2.4 | |||
|
| |||
42.6 | ||||
|
|
Industries as of July 31, 2019 |
* | Includes short-term investments and net other assets. |
23 | Annual Report |
Table of Contents
Fidelity® MSCI Industrials Index ETF
Performance (Unaudited)
The information provided in the tables below shows you the performance of Fidelity® MSCI Industrials Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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, 2019 | ||||||||||||
Average Annual Total Returns | Past 1 Year | Past 5 Years | Life of fund | |||||||||
Fidelity MSCI Industrials Index ETF – NAVA | 3.23% | 10.26% | 10.24% | |||||||||
Fidelity MSCI Industrials Index ETF – Market PriceB | 3.34% | 10.27% | 10.04% | |||||||||
MSCI USA IMI Industrials IndexA | 3.30% | 10.37% | 10.35% | |||||||||
S&P 500 IndexA | 7.99% | 11.34% | 11.98% |
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.
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. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Industrials Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Industrials Index and the S&P 500 Index performed over the same period.
Annual Report | 24 |
Table of Contents
Fidelity® MSCI Industrials Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value gained 3.23%, roughly in line with the 3.30% result of the MSCI USA IMI Industrials Index. The ETF’s market price rose 3.34% over the same time frame, while the broad-market S&P 500® index added 7.99%. Industrials finished with the eighth-best performance among the 11 S&P 500® sectors for the 12 months. The sector was relatively sensitive to investors’ concerns about slowing global economic growth and lingering trade conflict between the U.S. and China. Among segments in the MSCI sector index, returns varied widely, ranging from +34% for diversified metals & mining to-19% for commercial printing. Among groups with a large representation in the MSCI sector index, research & consulting services (+26%) stood out to the upside, as did environmental & facilities services (+21%). Railroads (+15%) also did well, helped by a +23% result for Union Pacific. The largest group in the index, aerospace & defense (+5%), slightly topped the return of the MSCI sector index, with defense stocks outpacing aerospace shares. On the negative side, air freight & logistics(-11%) lagged notably. Within this group, industry bellwether FedEx(-30%) struggled this period. Industrial conglomerates(-4%) also fared poorly, reflecting weak performance from General Electric(-19%) and 3M(-15%).
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.
25 | Annual Report |
Table of Contents
Fidelity® MSCI Industrials Index ETF
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
The Boeing Co. | 6.2 | |||
Union Pacific Corp. | 4.4 | |||
Honeywell International, Inc. | 4.3 | |||
United Technologies Corp. | 3.7 | |||
3M Co. | 3.4 | |||
Lockheed Martin Corp. | 3.2 | |||
General Electric Co. | 3.1 | |||
United Parcel Service, Inc. Class B | 2.8 | |||
Caterpillar, Inc. | 2.6 | |||
Northrop Grumman Corp. | 1.9 | |||
|
| |||
35.6 | ||||
|
|
Industries as of July 31, 2019 |
* | Includes short-term investments and net other assets. |
Annual Report | 26 |
Table of Contents
Fidelity® MSCI Information Technology Index ETF
Performance (Unaudited)
The information provided in the tables below shows you the performance of Fidelity® MSCI Information Technology Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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, 2019 | ||||||||||||
Average Annual Total Returns | Past 1 Year | Past 5 Years | Life of fund | |||||||||
Fidelity MSCI Information Technology Index ETF – NAVA | 15.94% | 18.54% | 19.07% | |||||||||
Fidelity MSCI Information Technology Index ETF – Market PriceB | 15.92% | 18.51% | 19.20% | |||||||||
MSCI USA IMI Information Technology IndexA | 16.03% | 18.65% | 19.19% | |||||||||
S&P 500 IndexA | 7.99% | 11.34% | 11.98% |
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.
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. |
$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.
27 | Annual Report |
Table of Contents
Fidelity® MSCI Information Technology Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value gained 15.94%, roughly in line with the 16.03% advance of the MSCI USA IMI Information Technology Index. The ETF’s market price rose 15.92% over the same time frame, while the broad-market S&P 500® index increased 7.99%. Information technology finished the trailing 12 month period with some of the best performance among the 11 S&P 500® sectors, aided by broad trends such as digital transformation and cloud computing. Among subindustries within the MSCI index, there were many highlights this period. Data processing & outsourced services (+31%) was one of the strongest groups, riding robust results from Mastercard (+38%) and PayPal (+34%), among others. Tech stocks within the systems software (+29%) segment did almost as well. Microsoft (+31%) was a big winner here, as the company continued to grow its Azure cloud-services platform while transitioning more users of its Office software suite to a cloud-based subscription model. The application software (+23%) group was another standout, with Intuit (+37%) helping to lift results. Conversely, interactive home entertainment(-28%) was the MSCI index’s weakest subindustry this period. The group includes gaming-software names Activision Blizzard(-32%) and Electronic Arts(-35%), both of which were big losers the past year and no longer held at period end. Interactive media & services(-13%) stocks also underperformed, reflecting the increased regulatory scrutiny of Facebook(-19%) and Alphabet, whose class A shares returned-13%.
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.
Annual Report | 28 |
Table of Contents
Fidelity® MSCI Information Technology Index ETF
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Apple, Inc. | 15.6 | |||
Microsoft Corp. | 15.4 | |||
Visa, Inc. Class A | 4.8 | |||
Mastercard, Inc. Class A | 3.9 | |||
Cisco Systems, Inc. | 3.8 | |||
Intel Corp. | 3.5 | |||
Adobe, Inc. | 2.3 | |||
Oracle Corp. | 2.2 | |||
International Business Machines Corp. | 2.0 | |||
PayPal Holdings, Inc. | 1.9 | |||
|
| |||
55.4 | ||||
|
|
Industries as of July 31, 2019 |
* | Includes short-term investments and net other assets. |
29 | Annual Report |
Table of Contents
Fidelity® MSCI Materials Index ETF
Performance (Unaudited)
The information provided in the tables below shows you the performance of Fidelity® MSCI Materials Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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, 2019 | ||||||||||||
Average Annual Total Returns | Past 1 Year | Past 5 Years | Life of fund | |||||||||
Fidelity MSCI Materials Index ETF – NAVA | -4.02% | 5.32% | 6.68% | |||||||||
Fidelity MSCI Materials Index ETF – Market PriceB | -3.95% | 5.31% | 6.48% | |||||||||
MSCI USA IMI Materials IndexA | -3.89% | 5.38% | 6.76% | |||||||||
S&P 500 IndexA | 7.99% | 11.34% | 11.98% |
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.
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. |
$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 | 30 |
Table of Contents
Fidelity® MSCI Materials Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value returned-4.02%, roughly in line with the-3.89% result of the MSCI USA IMI Materials Index. The ETF’s market price returned-3.95% over the same time frame, whereas the broad-market S&P 500® index advanced 7.99%. Materials finished near the bottom of the pack among the 11 S&P 500® sectors, due to investor concerns about trade issues and slowing global economic growth, which in turn hampered demand, commodity pricing and profit margins of materials companies throughout the period. Against this backdrop, defensive groups such as metal & glass containers (+34%) and industrial gases (+22%) performed the best. In the former category, Ball (+82%) was a standout, and in the latter, Air Products & Chemicals (+42%) merits mention. The construction materials segment (+15%) also fared relatively well. On the other hand, two relatively small index groups – silver(-42%) and aluminum(-41%) – notably underperformed. Among segments with a more meaningful index representation, commodity chemicals(-28%) lagged, with stocks such as Westlake Chemical(-36%) weighing on results. The paper packaging(-10%) segment also was weak. The MSCI index’s largest subindustry group, specialty chemicals, returned about-5% the past 12 months, partly reflecting a weak showing by DuPont de Nemours(-28%), which in June began trading once again as a standalone stock after itsspin-off from DowDuPont.
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.
31 | Annual Report |
Table of Contents
Fidelity® MSCI Materials Index ETF
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Linde PLC | 11.9 | |||
DuPont de Nemours, Inc. | 6.1 | |||
Ecolab, Inc. | 5.9 | |||
Air Products & Chemicals, Inc. | 5.7 | |||
The Sherwin-Williams Co. | 4.8 | |||
Dow, Inc. | 4.2 | |||
Newmont Mining Corp. | 3.4 | |||
PPG Industries, Inc. | 3.1 | |||
Ball Corp. | 2.6 | |||
LyondellBasell Industries N.V. Class A | 2.6 | |||
|
| |||
50.3 | ||||
|
|
Industries as of July 31, 2019 |
Annual Report | 32 |
Table of Contents
Fidelity® MSCI Real Estate Index ETF
Performance (Unaudited)
The information provided in the tables below shows you the performance of Fidelity® MSCI Real Estate Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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, 2019 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity MSCI Real Estate Index ETF – NAVA | 13.19% | 6.25% | ||||||
Fidelity MSCI Real Estate Index ETF – Market PriceB | 13.28% | 5.90% | ||||||
MSCI USA IMI Real Estate IndexA | 13.21% | 6.30% | ||||||
S&P 500 IndexA | 7.99% | 11.31% |
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.
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. |
$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.
33 | Annual Report |
Table of Contents
Fidelity® MSCI Real Estate Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value returned 13.19%, roughly in line with the 13.21% result of the MSCI USA IMI Real Estate Index. The ETF’s market price returned 13.28% over the same time frame, while the broad-market S&P 500® index rose 7.99%. The industrial real estate investment trust (REIT) segment (+25%) led all groups in the MSCI sector index, as owners of specialized distribution facilities – including industry leader Prologis (+27%) – continued to benefit from growth ine-commerce. Among residential REITs (+24%), apartment REITs Equity Residential (+25%) and AvalonBay Communities (+22%) continued to benefit from industry trends boosting demand for apartment living. Health care REITs (+24%) also advanced, driven partly by a robust gain for Welltower (+40%), which specializes in housing for seniors, outpatient medical centers, and post-acute care centers. In contrast, retail REITs (+2%) underperformed the real estate sector, with mall owners Macerich(-40%) and Simon Property Group(-4%) each lagging notably. Among other notable drivers of index performance, wireless infrastructure providers American Tower (+46%), Crown Castle International (+25%) and SBA Communications (+55%) each enjoyed strong results, driven partly by optimism for the growth and rollout of 5G wireless service. Conversely, timber-focused REIT Weyerhaeuser(-22%) suffered amid lower demand from China and a decline in the price of lumber.
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.
Annual Report | 34 |
Table of Contents
Fidelity® MSCI Real Estate Index ETF
Investment Summary (Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
American Tower Corp. | 7.8 | |||
Crown Castle International Corp. | 4.6 | |||
Prologis, Inc. | 4.3 | |||
Simon Property Group, Inc. | 4.2 | |||
Equinix, Inc. | 3.4 | |||
Public Storage | 3.2 | |||
Welltower, Inc. | 2.7 | |||
Equity Residential | 2.4 | |||
AvalonBay Communities, Inc. | 2.4 | |||
SBA Communications Corp. | 2.3 | |||
|
| |||
37.3 | ||||
|
|
Industries as of July 31, 2019 |
35 | Annual Report |
Table of Contents
Fidelity® MSCI Utilities Index ETF
Performance (Unaudited)
The information provided in the tables below shows you the performance of Fidelity® MSCI Utilities Index ETF, with comparisons over different time periods to the fund’s relevant benchmarks, including an appropriate broad-based market index. Seeing the returns over different time periods can help you assess the fund’s performance against relevant measurements. The performance information includes average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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, 2019 | ||||||||||||
Average Annual Total Returns | Past 1 Year | Past 5 Years | Life of fund | |||||||||
Fidelity MSCI Utilities Index ETF – NAVA | 15.93% | 11.59% | 11.81% | |||||||||
Fidelity MSCI Utilities Index ETF – Market PriceB | 15.98% | 11.60% | 11.65% | |||||||||
MSCI USA IMI Utilities IndexA | 16.07% | 11.75% | 11.97% | |||||||||
S&P 500 IndexA | 7.99% | 11.34% | 11.98% |
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.
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. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity MSCI Utilities Index ETF – NAV on October 21, 2013, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI USA IMI Utilities Index and the S&P 500 Index performed over the same period.
Annual Report | 36 |
Table of Contents
Fidelity® MSCI Utilities Index ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value gained 15.93%, roughly in line with the 16.07% advance of the MSCI USA IMI Utilities Index. The ETF’s market price rose 15.98% over the same time frame, while the broad-market S&P 500® index added 7.99%. Amid rising global trade tension, a slowing global economy and several bouts of volatility for the broader market, the perceived safety of the utilities sector appealed to many investors. Water utilities (+27%), considered to be among the most-conservative groups within utilities, led all subindustries. As wind and solar energy became more readily available to consumers and power prices improved, renewable electricity (+23%) also delivered a solid result for the 12 months. Multi-utilities (+17%) and electric utilities (+16%), together representing 86% of the MSCI sector index, also posted double-digit gains. The high-dividend-yielding, regulated companies within these groups performed well, as investors turned to more domestic-oriented stocks with less exposure to ongoing international trade disputes. Among the index’s top contributors overall were electric companies NextEra Energy (+27%), Southern Company (+21%) and American Electric Power (+28%). Conversely, independent power producers & energy traders (+11%), comprising about 4% of the MSCI sector index, lagged the other utility segments.
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.
37 | Annual Report |
Table of Contents
Fidelity® MSCI Utilities Index ETF
Investment Summary(Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
NextEra Energy, Inc. | 10.6 | |||
Duke Energy Corp. | 6.7 | |||
Dominion Energy, Inc. | 6.3 | |||
The Southern Co. | 6.2 | |||
Exelon Corp. | 4.7 | |||
American Electric Power Co., Inc. | 4.6 | |||
Sempra Energy | 3.9 | |||
Xcel Energy, Inc. | 3.3 | |||
Public Service Enterprise Group, Inc. | 3.1 | |||
Consolidated Edison, Inc. | 2.9 | |||
|
| |||
52.3 | ||||
|
|
Industries as of July 31, 2019 |
Annual Report | 38 |
Table of Contents
Fidelity® MSCI Communication Services Index ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 100.0% | ||||||||
Shares | Value | |||||||
DIVERSIFIED TELECOMMUNICATION SERVICES – 12.9% |
| |||||||
Alternative Carriers – 3.7% |
| |||||||
Bandwidth, Inc. Class A (a) | 7,879 | $ | 586,985 | |||||
CenturyLink, Inc. | 256,500 | 3,101,085 | ||||||
Cogent Communications Holdings, Inc. | 23,303 | 1,468,322 | ||||||
GCI Liberty, Inc. Class A (a) | 26,994 | 1,612,351 | ||||||
Globalstar, Inc. (a) | 306,948 | 145,862 | ||||||
Iridium Communications, Inc. (a) | 50,938 | 1,295,863 | ||||||
ORBCOMM, Inc. (a) | 39,874 | 233,662 | ||||||
pdvWireless, Inc. (a) | 6,700 | 298,083 | ||||||
Vonage Holdings Corp. (a) | 120,827 | 1,498,255 | ||||||
Zayo Group Holdings, Inc. (a) | 108,343 | 3,654,409 | ||||||
|
| |||||||
13,894,877 | ||||||||
|
| |||||||
Integrated Telecommunication Services – 9.2% |
| |||||||
AT&T, Inc. | 520,264 | 17,714,989 | ||||||
ATN International, Inc. | 5,922 | 333,231 | ||||||
Cincinnati Bell, Inc. (a) | 22,594 | 86,309 | ||||||
Consolidated Communications Holdings, Inc. | 37,373 | 176,027 | ||||||
Frontier Communications Corp. (a) | 52,673 | 69,528 | ||||||
Verizon Communications, Inc. | 286,698 | 15,845,799 | ||||||
|
| |||||||
34,225,883 | ||||||||
|
| |||||||
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES | 48,120,760 | |||||||
|
| |||||||
ENTERTAINMENT – 19.3% |
| |||||||
Interactive Home Entertainment – 4.1% |
| |||||||
Activision Blizzard, Inc. | 119,488 | 5,823,845 | ||||||
Electronic Arts, Inc. (a) | 48,432 | 4,479,960 | ||||||
Glu Mobile, Inc. (a) | 60,712 | 452,912 | ||||||
Rosetta Stone Inc. (a) | 10,947 | 251,343 | ||||||
Take-Two Interactive Software, Inc. (a) | 23,049 | 2,823,964 | ||||||
Zynga, Inc. Class A (a) | 249,382 | 1,591,057 | ||||||
|
| |||||||
15,423,081 | ||||||||
|
| |||||||
Movies & Entertainment – 15.2% |
| |||||||
AMC Entertainment Holdings, Inc. Class A | 27,526 | 325,633 | ||||||
Cinemark Holdings, Inc. | 36,328 | 1,450,214 | ||||||
IMAX Corp. (a) | 29,356 | 644,364 | ||||||
Liberty Media Corp-Liberty Braves Class A (a) | 4,655 | 134,529 | ||||||
Liberty Media Corp-Liberty Braves Class C (a) | 18,943 | 544,990 | ||||||
Liberty Media Corp-Liberty Formula One Class C (a) | 49,471 | 1,948,168 | ||||||
Lions Gate Entertainment Corp. Class A | 30,643 | 395,601 | ||||||
Lions Gate Entertainment Corp. Class B | 59,964 | 730,961 | ||||||
Live Nation Entertainment, Inc. (a) | 33,009 | 2,378,629 | ||||||
Netflix, Inc. (a) | 45,784 | 14,787,774 |
Shares | Value | |||||||
The Madison Square Garden Co. | ||||||||
Class A (a) | 4,876 | $ | 1,414,235 | |||||
The Marcus Corp. | 10,819 | 378,557 | ||||||
The Walt Disney Co. | 195,708 | 27,988,201 | ||||||
Viacom, Inc. Class B | 77,232 | 2,343,991 | ||||||
World Wrestling Entertainment, Inc. Class A | 16,827 | 1,224,669 | ||||||
|
| |||||||
56,690,516 | ||||||||
|
| |||||||
TOTAL ENTERTAINMENT | 72,113,597 | |||||||
|
| |||||||
INTERACTIVE MEDIA & SERVICES – 43.3% |
| |||||||
Interactive Media & Services – 43.3% |
| |||||||
Alphabet, Inc. Class A (a) | 33,824 | 41,204,397 | ||||||
Alphabet, Inc. Class C (a) | 35,784 | 43,537,677 | ||||||
ANGI Homeservices, Inc. Class A (a) | 35,248 | 488,185 | ||||||
Care.com, Inc. (a) | 15,181 | 166,384 | ||||||
Cargurus, Inc. (a) | 33,709 | 1,256,334 | ||||||
Cars.com, Inc. (a) | 34,368 | 652,992 | ||||||
Eventbrite, Inc. Class A (a) | 6,178 | 109,289 | ||||||
Facebook, Inc. Class A (a) | 298,066 | 57,893,359 | ||||||
IAC/InterActiveCorp. (a) | 13,938 | 3,331,879 | ||||||
Liberty TripAdvisor Holdings, Inc. Class A (a) | 38,224 | 441,487 | ||||||
QuinStreet, Inc. (a) | 22,525 | 366,932 | ||||||
Snap, Inc. Class A (a) | 165,832 | 2,785,978 | ||||||
TripAdvisor, Inc. (a) | 32,640 | 1,441,056 | ||||||
TrueCar, Inc. (a) | 44,306 | 225,074 | ||||||
Twitter, Inc. (a) | 119,106 | 5,039,375 | ||||||
Yelp, Inc. (a) | 37,375 | 1,309,994 | ||||||
Zillow Group, Inc. Class C (a) | 38,861 | 1,941,496 | ||||||
|
| |||||||
TOTAL INTERACTIVE MEDIA & SERVICES | 162,191,888 | |||||||
|
| |||||||
MEDIA – 21.0% |
| |||||||
Advertising – 1.7% |
| |||||||
Boston Omaha Corp. Class A (a) | 4,547 | 96,169 | ||||||
Clear Channel Outdoor Holdings, | 18,900 | 57,267 | ||||||
comScore, Inc. (a) | 23,688 | 78,170 | ||||||
Emerald Expositions Events, Inc. | 13,470 | 143,590 | ||||||
Fluent, Inc. (a) | 20,226 | 105,175 | ||||||
National CineMedia, Inc. | 33,363 | 237,545 | ||||||
Omnicom Group, Inc. | 40,591 | 3,256,210 | ||||||
TechTarget, Inc. (a) | 12,590 | 289,822 | ||||||
The Interpublic Group of Cos., Inc. | 89,531 | 2,052,051 | ||||||
|
| |||||||
6,315,999 | ||||||||
|
| |||||||
Broadcasting – 5.3% |
| |||||||
AMC Networks, Inc. Class A (a) | 21,701 | 1,158,399 | ||||||
CBS Corp. Class B | 61,660 | 3,176,106 | ||||||
Discovery, Inc. Class A (a) | 51,865 | 1,572,028 | ||||||
Discovery, Inc. Class C (a) | 80,596 | 2,276,031 |
See accompanying notes which are an integral part of the financial statements.
39 | Annual Report |
Table of Contents
Fidelity® MSCI Communication Services Index ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
MEDIA – continued |
| |||||||
Broadcasting – continued |
| |||||||
Entercom Communications Corp. Class A | 65,670 | $ | 373,006 | |||||
Entravision Communications Corp. Class A | 34,415 | 112,193 | ||||||
Fox Corp. Class A | 70,269 | 2,622,439 | ||||||
Fox Corp. Class B (a) | 46,769 | 1,739,807 | ||||||
Gray Television, Inc. (a) | 49,632 | 880,968 | ||||||
Hemisphere Media Group, Inc. (a) | 9,452 | 116,354 | ||||||
Nexstar Media Group, Inc. Class A | 14,071 | 1,432,006 | ||||||
Sinclair Broadcast Group, Inc. Class A | 28,831 | 1,448,758 | ||||||
TEGNA, Inc. | 82,457 | 1,252,522 | ||||||
The E.W. Scripps Co. Class A | 25,489 | 390,746 | ||||||
Tribune Media Co. Class A | 29,138 | 1,354,043 | ||||||
|
| |||||||
19,905,406 | ||||||||
|
| |||||||
Cable & Satellite – 12.1% |
| |||||||
Altice USA, Inc. Class A (a) | 73,533 | 1,897,887 | ||||||
Cable One, Inc. | 1,371 | 1,668,233 | ||||||
Charter Communications, Inc. | 23,411 | 9,022,131 | ||||||
Comcast Corp. Class A | 380,892 | 16,443,108 | ||||||
DISH Network Corp. Class A (a) | 55,032 | 1,863,383 | ||||||
Liberty Broadband Corp. Class C (a) | 22,749 | 2,263,753 | ||||||
Liberty Global PLC Class A (a) | 58,188 | 1,551,874 | ||||||
Liberty Global PLC Series C (a) | 100,896 | 2,627,332 | ||||||
Liberty Latin America Ltd. Class A (a) | 23,129 | 379,084 | ||||||
Liberty Latin America Ltd. Class C (a) | 62,214 | 1,020,309 | ||||||
Liberty Media Corp-Liberty SiriusXM Class A (a) | 34,317 | 1,428,617 | ||||||
Liberty Media Corp-Liberty SiriusXM Class C (a) | 44,965 | 1,882,235 | ||||||
Loral Space & Communications Ltd. (a) | 6,234 | 229,349 | ||||||
MSG Networks, Inc. Class A (a) | 32,464 | 616,491 | ||||||
Sirius XM Holdings, Inc. | 372,545 | 2,332,132 | ||||||
WideOpenWest, Inc. (a) | 13,213 | 100,287 | ||||||
|
| |||||||
45,326,205 | ||||||||
|
| |||||||
Publishing – 1.9% |
| |||||||
Gannett Co., Inc. | 60,684 | 622,011 | ||||||
John Wiley & Sons, Inc. Class A | 24,222 | 1,102,343 | ||||||
Meredith Corp. | 20,274 | 1,112,232 |
Shares | Value | |||||||
New Media Investment Group, Inc. | 30,608 | $ | 329,648 | |||||
News Corp. Class A | 126,175 | 1,660,463 | ||||||
Scholastic Corp. | 16,009 | 547,027 | ||||||
The New York Times Co. Class A | 45,042 | 1,607,099 | ||||||
Tribune Publishing Co. | 8,539 | 70,617 | ||||||
|
| |||||||
7,051,440 | ||||||||
|
| |||||||
TOTAL MEDIA | 78,599,050 | |||||||
|
| |||||||
WIRELESS TELECOMMUNICATION SERVICES – 3.5% |
| |||||||
Wireless Telecommunication Services – 3.5% |
| |||||||
Boingo Wireless, Inc. (a) | 22,605 | 339,527 | ||||||
Gogo, Inc. (a) | 30,316 | 127,024 | ||||||
Shenandoah Telecommunications Co. | 24,941 | 981,678 | ||||||
Spok Holdings, Inc. | 9,783 | 127,081 | ||||||
Sprint Corp. (a) | 432,253 | 3,168,414 | ||||||
Telephone & Data Systems, Inc. | 53,624 | 1,734,200 | ||||||
T-Mobile US, Inc. (a) | 80,083 | 6,385,018 | ||||||
United States Cellular Corp. (a) | 7,026 | 336,475 | ||||||
|
| |||||||
TOTAL WIRELESS TELECOMMUNICATION SERVICES |
| 13,199,417 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 374,224,712 | ||||||
|
| |||||||
Money Market Funds – 0.0% | ||||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 2.16% (b) | 192,000 | 192,000 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 100.0% |
| 374,416,712 | ||||||
NET OTHER ASSETS (LIABILITIES) – (0.0%) |
| (27,948 | ) | |||||
|
| |||||||
NET ASSETS – 100.0% | $ | 374,388,764 | ||||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualizedseven-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 | 40 |
Table of Contents
Fidelity® MSCI Consumer Discretionary Index ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
AUTO COMPONENTS – 2.6% | ||||||||
Auto Parts & Equipment – 2.5% | ||||||||
Adient PLC | 20,901 | $ | 496,399 | |||||
American Axle & Manufacturing | ||||||||
Holdings, Inc. (a) | 26,364 | 318,214 | ||||||
Aptiv PLC | 60,265 | 5,282,227 | ||||||
Autoliv, Inc. | 19,278 | 1,390,908 | ||||||
BorgWarner, Inc. | 48,116 | 1,818,785 | ||||||
Cooper-Standard Holding, Inc. (a) | 4,190 | 207,321 | ||||||
Dana, Inc. | 33,607 | 561,573 | ||||||
Delphi Technologies PLC | 20,912 | 391,891 | ||||||
Dorman Products, Inc. (a) | 6,605 | 474,767 | ||||||
Fox Factory Holding Corp. (a) | 8,881 | 711,191 | ||||||
Garrett Motion, Inc. (a) | 17,692 | 250,696 | ||||||
Gentex Corp. | 60,058 | 1,646,790 | ||||||
Gentherm, Inc. (a) | 8,287 | 339,021 | ||||||
LCI Industries | 5,840 | 535,119 | ||||||
Lear Corp. | 13,812 | 1,751,085 | ||||||
Modine Manufacturing Co. (a) | 12,277 | 168,441 | ||||||
Motorcar Parts of America, Inc. (a) | 4,758 | 85,073 | ||||||
Standard Motor Products, Inc. | 4,840 | 222,688 | ||||||
Stoneridge, Inc. (a) | 6,820 | 222,127 | ||||||
Tenneco, Inc. Class A | 12,334 | 111,499 | ||||||
Tower International, Inc. | 5,044 | 155,355 | ||||||
Veoneer, Inc. (a) | 24,862 | 451,245 | ||||||
Visteon Corp. (a) | 6,653 | 438,300 | ||||||
|
| |||||||
18,030,715 | ||||||||
|
| |||||||
Tires & Rubber – 0.1% | ||||||||
Cooper Tire & Rubber Co. | 11,880 | 319,810 | ||||||
The Goodyear Tire & Rubber Co. | 54,373 | 746,541 | ||||||
|
| |||||||
1,066,351 | ||||||||
|
| |||||||
TOTAL AUTO COMPONENTS | 19,097,066 | |||||||
|
| |||||||
AUTOMOBILES – 4.1% | ||||||||
Automobile Manufacturers – 3.9% | ||||||||
Ford Motor Co. | 905,013 | 8,624,774 | ||||||
General Motors Co. | 293,737 | 11,849,351 | ||||||
Tesla Motors, Inc. (a) | 30,007 | 7,249,991 | ||||||
Thor Industries, Inc. | 12,881 | 767,708 | ||||||
Winnebago Industries, Inc. | 7,111 | 286,573 | ||||||
|
| |||||||
28,778,397 | ||||||||
|
| |||||||
Motorcycle Manufacturers – 0.2% | ||||||||
Harley-Davidson, Inc. | 37,176 | 1,330,157 | ||||||
|
| |||||||
TOTAL AUTOMOBILES | 30,108,554 | |||||||
|
| |||||||
DISTRIBUTORS – 1.0% | ||||||||
Distributors – 1.0% | ||||||||
Core-Mark Holding Co., Inc. | 10,777 | 403,383 | ||||||
Genuine Parts Co. | 33,846 | 3,287,124 | ||||||
LKQ Corp. (a) | 73,431 | 1,977,497 |
Shares | Value | |||||||
Pool Corp. | 9,158 | $ | 1,734,250 | |||||
|
| |||||||
TOTAL DISTRIBUTORS | 7,402,254 | |||||||
|
| |||||||
DIVERSIFIED CONSUMER SERVICES – 2.0% |
| |||||||
Education Services – 1.1% | ||||||||
Adtalem Global Education, Inc. (a) | 13,537 | 641,248 | ||||||
American Public Education, Inc. (a) | 4,032 | 133,137 | ||||||
Bright Horizons Family Solutions, Inc. (a) | 13,478 | 2,049,599 | ||||||
Career Education Corp. (a) | 16,463 | 312,138 | ||||||
Chegg, Inc. (a) | 24,306 | 1,091,826 | ||||||
Graham Holdings Co. Class B | 1,010 | 750,157 | ||||||
Grand Canyon Education, Inc. (a) | 11,230 | 1,221,487 | ||||||
Houghton Mifflin Harcourt Co. (a) | 25,482 | 149,070 | ||||||
K12, Inc. (a) | 9,094 | 271,456 | ||||||
Laureate Education, Inc. Class A (a) | 22,863 | 374,725 | ||||||
Strategic Education, Inc. | 5,060 | 900,629 | ||||||
|
| |||||||
7,895,472 | ||||||||
|
| |||||||
Specialized Consumer Services – 0.9% | ||||||||
Carriage Services, Inc. | 4,610 | 88,143 | ||||||
frontdoor, Inc. (a) | 19,745 | 901,162 | ||||||
H&R Block, Inc. | 47,626 | 1,318,764 | ||||||
Regis Corp. (a) | 6,934 | 126,892 | ||||||
Service Corp. International | 42,108 | 1,942,863 | ||||||
ServiceMaster Global Holdings, Inc. (a) | 31,565 | 1,680,205 | ||||||
Sotheby’s (a) | 7,617 | 454,811 | ||||||
Weight Watchers International, Inc. (a) | 10,912 | 236,245 | ||||||
|
| |||||||
6,749,085 | ||||||||
|
| |||||||
TOTAL DIVERSIFIED CONSUMER SERVICES |
| 14,644,557 | ||||||
|
| |||||||
HOTELS, RESTAURANTS & LEISURE – 20.6% |
| |||||||
Casinos & Gaming – 2.3% | ||||||||
Boyd Gaming Corp. | 19,668 | 521,005 | ||||||
Caesars Entertainment Corp. (a) | 124,748 | 1,477,016 | ||||||
Churchill Downs, Inc. | 8,456 | 1,011,760 | ||||||
Eldorado Resorts, Inc. (a) | 15,388 | 694,307 | ||||||
Everi Holdings, Inc. (a) | 16,842 | 202,273 | ||||||
Golden Entertainment, Inc. (a) | 4,949 | 69,385 | ||||||
Las Vegas Sands Corp. | 80,829 | 4,885,305 | ||||||
MGM Resorts International | 118,271 | 3,550,496 | ||||||
Monarch Casino & Resort, Inc. (a) | 3,069 | 144,458 | ||||||
Penn National Gaming, Inc. (a) | 26,083 | 509,140 | ||||||
PlayAGS, Inc. (a) | 6,971 | 130,776 | ||||||
Red Rock Resorts, Inc. Class A | 16,504 | 343,943 | ||||||
Scientific Games Corp. Class A (a) | 12,103 | 247,506 | ||||||
Twin River Worldwide Holdings, Inc. | 6,667 | 175,942 | ||||||
Wynn Resorts Ltd. | 22,471 | 2,922,803 | ||||||
|
| |||||||
16,886,115 | ||||||||
|
|
See accompanying notes which are an integral part of the financial statements.
41 | Annual Report |
Table of Contents
Fidelity® MSCI Consumer Discretionary Index ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HOTELS, RESTAURANTS & LEISURE – continued |
| |||||||
Hotels, Resorts & Cruise Lines – 4.6% |
| |||||||
BBX Capital Corp. | 10,679 | $ | 46,026 | |||||
Carnival Corp. | 97,685 | 4,613,663 | ||||||
Choice Hotels International, Inc. | 8,467 | 726,553 | ||||||
Extended Stay America, Inc. | 43,671 | 730,179 | ||||||
Hilton Grand Vacations, Inc. (a) | 22,156 | 724,501 | ||||||
Hilton Worldwide Holdings, Inc. | 64,453 | 6,222,937 | ||||||
Lindblad Expeditions Holdings, Inc. (a) | 6,225 | 117,217 | ||||||
Marriott International, Inc. Class A | 67,152 | 9,338,157 | ||||||
Marriott Vacations Worldwide Corp. | 9,329 | 953,704 | ||||||
Norwegian Cruise Line Holdings | 50,510 | 2,497,214 | ||||||
Playa Hotels & Resorts N.V. (a) | 14,644 | 107,341 | ||||||
Royal Caribbean Cruises Ltd. | 41,205 | 4,793,790 | ||||||
Wyndham Destinations, Inc. | 21,901 | 1,030,661 | ||||||
Wyndham Hotels & Resorts, Inc. | 22,792 | 1,288,888 | ||||||
|
| |||||||
33,190,831 | ||||||||
|
| |||||||
Leisure Facilities – 0.8% | ||||||||
International Speedway Corp. Class A | 5,662 | 255,243 | ||||||
Planet Fitness, Inc., Class A (a) | 19,450 | 1,529,937 | ||||||
SeaWorld Entertainment, Inc. (a) | 13,450 | 411,166 | ||||||
Six Flags Entertainment Corp. | 17,673 | 933,665 | ||||||
Speedway Motorsports, Inc. | 3,187 | 63,103 | ||||||
Vail Resorts, Inc. | 9,347 | 2,304,222 | ||||||
|
| |||||||
5,497,336 | ||||||||
|
| |||||||
Restaurants – 12.9% | ||||||||
Aramark | 57,186 | 2,069,561 | ||||||
Biglari Holdings, Inc. Class B (a) | 292 | 26,514 | ||||||
BJ’s Restaurants, Inc. | 5,065 | 201,081 | ||||||
Bloomin’ Brands, Inc. | 20,527 | 349,575 | ||||||
Brinker International, Inc. | 8,873 | 353,589 | ||||||
Carrols Restaurant Group, Inc. (a) | 8,920 | 83,134 | ||||||
Chipotle Mexican Grill, Inc. (a) | 6,088 | 4,843,187 | ||||||
Chuys Holdings, Inc. (a) | 4,232 | 100,087 | ||||||
Cracker Barrel Old Country Store, Inc. | 4,779 | 830,160 | ||||||
Darden Restaurants, Inc. | 28,633 | 3,480,627 | ||||||
Dave & Buster’s Entertainment, Inc. | 9,131 | 371,175 | ||||||
Del Taco Restaurants, Inc. (a) | 8,064 | 97,736 | ||||||
Denny’s Corp. (a) | 14,534 | 328,323 | ||||||
Dine Brands Global, Inc. | 3,936 | 323,106 | ||||||
Domino’s Pizza, Inc. | 9,046 | 2,212,018 | ||||||
Dunkin’ Brands Group, Inc. | 19,228 | 1,541,316 | ||||||
El Pollo Loco Holdings, Inc. (a) | 6,178 | 60,792 | ||||||
Fiesta Restaurant Group, Inc. (a) | 6,078 | 58,045 | ||||||
Jack in the Box, Inc. | 5,491 | 394,419 | ||||||
McDonald’s Corp. | 177,195 | 37,338,530 | ||||||
Noodles & Co. (a) | 6,965 | 51,611 | ||||||
Papa John’s International, Inc. | 4,845 | 215,215 | ||||||
Red Robin Gourmet Burgers, Inc. (a) | 3,220 | 106,324 | ||||||
Ruth’s Hospitality Group, Inc. | 7,114 | 158,429 |
Shares | Value | |||||||
Shake Shack, Inc. Class A (a) | 6,588 | $ | 491,860 | |||||
Starbucks Corp. | 287,941 | 27,265,133 | ||||||
Texas Roadhouse, Inc. Class A | 15,909 | 878,654 | ||||||
The Cheesecake Factory, Inc. | 10,044 | 432,696 | ||||||
Wendy’s Co. | 42,714 | 776,968 | ||||||
Wingstop, Inc. | 6,865 | 656,225 | ||||||
Yum! Brands, Inc. | 70,970 | 7,985,544 | ||||||
|
| |||||||
94,081,634 | ||||||||
|
| |||||||
TOTAL HOTELS, RESTAURANTS & LEISURE |
| 149,655,916 | ||||||
|
| |||||||
HOUSEHOLD DURABLES – 4.4% | ||||||||
Consumer Electronics – 0.7% | ||||||||
Garmin Ltd. | 30,782 | 2,419,157 | ||||||
GoPro, Inc. Class A (a) | 27,829 | 147,216 | ||||||
Roku, Inc. (a) | 18,972 | 1,960,377 | ||||||
Sonos, Inc. (a) | 5,324 | 57,765 | ||||||
Universal Electronics, Inc. (a) | 3,376 | 144,560 | ||||||
|
| |||||||
4,729,075 | ||||||||
|
| |||||||
Home Furnishings – 0.6% | ||||||||
Ethan Allen Interiors, Inc. | 6,235 | 128,316 | ||||||
Hooker Furniture Corp. | 3,096 | 64,552 | ||||||
La-Z-Boy, Inc. | 11,044 | 364,342 | ||||||
Leggett & Platt, Inc. | 30,555 | 1,221,283 | ||||||
Mohawk Industries, Inc. (a) | 14,281 | 1,780,698 | ||||||
Tempur Sealy International, Inc. (a) | 10,851 | 870,467 | ||||||
|
| |||||||
4,429,658 | ||||||||
|
| |||||||
Homebuilding – 2.4% | ||||||||
Beazer Homes U.S.A., Inc. (a) | 7,728 | 90,572 | ||||||
Cavco Industries, Inc. (a) | 2,042 | 362,149 | ||||||
Century Communities, Inc. (a) | 6,187 | 170,576 | ||||||
D.R. Horton, Inc. | 82,246 | 3,777,559 | ||||||
Green Brick Partners, Inc. (a) | 6,668 | 62,746 | ||||||
Installed Building Products, Inc. (a) | 5,329 | 283,929 | ||||||
KB Home | 18,400 | 483,368 | ||||||
Lennar Corp. Class A | 66,437 | 3,160,408 | ||||||
LGI Homes, Inc. (a) | 4,574 | 321,506 | ||||||
M.D.C. Holdings, Inc. | 11,366 | 410,767 | ||||||
M/I Homes, Inc. (a) | 6,407 | 226,616 | ||||||
Meritage Homes Corp. (a) | 8,513 | 534,702 | ||||||
NVR, Inc. (a) | 796 | 2,661,935 | ||||||
PulteGroup, Inc. | 61,153 | 1,926,931 | ||||||
Skyline Champion Corp. (a) | 12,071 | 344,023 | ||||||
Taylor Morrison Home Corp. Class A (a) | 24,485 | 551,402 | ||||||
Toll Brothers, Inc. | 32,135 | 1,155,896 | ||||||
TopBuild Corp. (a) | 8,092 | 656,504 | ||||||
TRI Pointe Group, Inc. (a) | 32,907 | 450,497 | ||||||
William Lyon Homes Class A (a) | 7,953 | 156,197 | ||||||
|
| |||||||
17,788,283 | ||||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 42 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HOUSEHOLD DURABLES – continued |
| |||||||
Household Appliances – 0.5% |
| |||||||
Hamilton Beach Brands Holding Co. Class A | 2,071 | $ | 33,985 | |||||
Helen of Troy Ltd. (a) | 5,974 | 885,825 | ||||||
iRobot Corp. (a) | 6,535 | 477,709 | ||||||
Whirlpool Corp. | 14,753 | 2,146,266 | ||||||
|
| |||||||
3,543,785 | ||||||||
|
| |||||||
Housewares & Specialties – 0.2% | ||||||||
Newell Brands, Inc. | 103,264 | 1,465,316 | ||||||
Tupperware Brands Corp. | 11,759 | 180,030 | ||||||
|
| |||||||
1,645,346 | ||||||||
|
| |||||||
TOTAL HOUSEHOLD DURABLES | 32,136,147 | |||||||
|
| |||||||
INTERNET & DIRECT MARKETING RETAIL – 31.0% |
| |||||||
Internet & Direct Marketing Retail – 31.0% |
| |||||||
1-800-FLOWERS.com, Inc. Class A (a) | 6,175 | 120,907 | ||||||
Amazon.com, Inc. (a) | 95,664 | 178,583,642 | ||||||
Booking Holdings, Inc. (a) | 10,425 | 19,667,909 | ||||||
Duluth Holdings, Inc. Class B (a) | 4,979 | 60,495 | ||||||
eBay, Inc. | 201,311 | 8,292,000 | ||||||
Etsy, Inc. (a) | 27,769 | 1,861,078 | ||||||
Expedia Group, Inc. | 32,504 | 4,314,581 | ||||||
Groupon, Inc. Class A (a) | 107,066 | 337,258 | ||||||
GrubHub, Inc. (a) | 21,088 | 1,426,181 | ||||||
Lands’ End, Inc. (a) | 3,284 | 35,796 | ||||||
MercadoLibre, Inc. (a) | 9,944 | 6,179,401 | ||||||
Overstock.com, Inc. (a) | 6,243 | 140,592 | ||||||
PetMed Express, Inc. | 5,234 | 90,915 | ||||||
Quotient Technology, Inc. (a) | 19,387 | 203,951 | ||||||
Qurate Retail, Inc. (a) | 94,471 | 1,335,820 | ||||||
Shutterfly, Inc. (a) | 7,896 | 400,248 | ||||||
Shutterstock, Inc. | 4,639 | 177,998 | ||||||
Stamps.com, Inc. (a) | 4,118 | 196,635 | ||||||
Stitch Fix, Inc. Class A (a) | 10,042 | 261,895 | ||||||
Waitr Holdings, Inc. (a) | 12,858 | 59,018 | ||||||
Wayfair, Inc. Class A (a) | 13,903 | 1,823,518 | ||||||
|
| |||||||
TOTAL INTERNET & DIRECT MARKETING RETAIL |
| 225,569,838 | ||||||
|
| |||||||
LEISURE PRODUCTS – 1.2% | ||||||||
Leisure Products – 1.2% | ||||||||
Acushnet Holdings Corp. | 8,130 | 207,803 | ||||||
American Outdoor Brands Corp. (a) | 13,431 | 129,475 | ||||||
Brunswick Corp. | 20,173 | 991,705 | ||||||
Callaway Golf Co. | 20,910 | 383,489 | ||||||
Hasbro, Inc. | 27,717 | 3,358,192 | ||||||
Johnson Outdoors, Inc. Class A | 1,638 | 111,367 | ||||||
Malibu Boats, Inc. Class A (a) | 5,031 | 151,584 | ||||||
Marine Products Corp. | 2,464 | 39,572 | ||||||
MasterCraft Boat Holdings, Inc. (a) | 4,745 | 78,767 |
Shares | Value | |||||||
Mattel, Inc. (a) | 80,080 | $ | 1,169,168 | |||||
Polaris Industries, Inc. | 13,489 | 1,277,004 | ||||||
Sturm, Ruger & Co., Inc. | 4,180 | 236,170 | ||||||
Vista Outdoor, Inc. (a) | 14,393 | 103,629 | ||||||
YETI Holdings, Inc. (a) | 4,108 | 142,794 | ||||||
|
| |||||||
TOTAL LEISURE PRODUCTS | 8,380,719 | |||||||
|
| |||||||
MEDIA – 0.0% | ||||||||
Broadcasting – 0.0% | ||||||||
Media General, Inc. (a) | 7,026 | 0 | ||||||
|
| |||||||
MULTILINE RETAIL – 4.2% | ||||||||
Department Stores – 0.7% | ||||||||
Dillard’s, Inc. Class A | 2,717 | 197,743 | ||||||
J.C. Penney Co., Inc. (a) | 79,206 | 63,009 | ||||||
Kohl’s Corp. | 38,318 | 2,063,808 | ||||||
Macy’s, Inc. | 71,262 | 1,619,785 | ||||||
Nordstrom, Inc. | 27,384 | 906,684 | ||||||
|
| |||||||
4,851,029 | ||||||||
|
| |||||||
General Merchandise Stores – 3.5% |
| |||||||
Big Lots, Inc. | 9,581 | 245,274 | ||||||
Dollar General Corp. | 60,885 | 8,159,808 | ||||||
Dollar Tree, Inc. (a) | 55,134 | 5,609,884 | ||||||
Ollie’s Bargain Outlet Holdings, | ||||||||
Inc. (a) | 13,196 | 1,117,569 | ||||||
Target Corp. | 120,837 | 10,440,317 | ||||||
|
| |||||||
25,572,852 | ||||||||
|
| |||||||
TOTAL MULTILINE RETAIL | 30,423,881 | |||||||
|
| |||||||
SPECIALTY RETAIL – 21.5% | ||||||||
Apparel Retail – 4.7% | ||||||||
Abercrombie & Fitch Co. Class A | 15,647 | 296,198 | ||||||
American Eagle Outfitters, Inc. | 39,258 | 694,474 | ||||||
Boot Barn Holdings, Inc. (a) | 6,699 | 209,612 | ||||||
Burlington Stores, Inc. (a) | 15,635 | 2,826,026 | ||||||
Caleres, Inc. | 10,332 | 194,035 | ||||||
Chico’s FAS, Inc. | 31,537 | 100,603 | ||||||
Citi Trends, Inc. | 3,351 | 51,438 | ||||||
Designer Brands, Inc. Class A | 16,378 | 301,028 | ||||||
Express, Inc. (a) | 19,078 | 47,123 | ||||||
Foot Locker, Inc. | 26,335 | 1,081,315 | ||||||
Gap, Inc. | 53,418 | 1,041,651 | ||||||
Genesco, Inc. (a) | 4,869 | 191,741 | ||||||
Guess?, Inc. | 13,581 | 228,840 | ||||||
L Brands, Inc. | 54,193 | 1,406,308 | ||||||
Ross Stores, Inc. | 85,825 | 9,100,025 | ||||||
Shoe Carnival, Inc. | 3,158 | 80,150 | ||||||
Tailored Brands, Inc. | 13,115 | 63,870 | ||||||
The Buckle, Inc. | 7,220 | 146,927 | ||||||
The Cato Corp. Class A | 5,829 | 83,763 | ||||||
The Children’s Place Retail Stores, Inc. | 3,783 | 369,486 |
See accompanying notes which are an integral part of the financial statements.
43 | Annual Report |
Table of Contents
Fidelity® MSCI Consumer Discretionary Index ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
SPECIALTY RETAIL – continued | ||||||||
Apparel Retail – continued | ||||||||
The TJX Cos., Inc. | 285,517 | $ | 15,577,807 | |||||
Urban Outfitters, Inc. (a) | 16,225 | 386,317 | ||||||
Zumiez, Inc. (a) | 5,042 | 124,890 | ||||||
|
| |||||||
34,603,627 | ||||||||
|
| |||||||
Automotive Retail – 3.3% | ||||||||
Advance Auto Parts, Inc. | 16,628 | 2,504,842 | ||||||
America’sCar-Mart, Inc. (a) | 1,547 | 139,478 | ||||||
Asbury Automotive Group, Inc. (a) | 4,622 | 425,594 | ||||||
AutoNation, Inc. (a) | 12,672 | 616,873 | ||||||
AutoZone, Inc. (a) | 5,779 | 6,490,048 | ||||||
Camping World Holdings, Inc. Class A | 8,311 | 97,488 | ||||||
CarMax, Inc. (a) | 39,435 | 3,460,816 | ||||||
Carvana Co. (a) | 10,884 | 691,787 | ||||||
Group 1 Automotive, Inc. | 4,119 | 345,831 | ||||||
Lithia Motors, Inc. Class A | 5,214 | 687,622 | ||||||
Monro, Inc. | 7,757 | 653,217 | ||||||
Murphy USA, Inc. (a) | 7,185 | 634,867 | ||||||
O’Reilly Automotive, Inc. (a) | 18,151 | 6,911,175 | ||||||
Penske Automotive Group, Inc. | 9,020 | 414,649 | ||||||
Sonic Automotive, Inc. Class A | 5,641 | 155,522 | ||||||
|
| |||||||
24,229,809 | ||||||||
|
| |||||||
Computer & Electronics Retail – 0.7% | ||||||||
Best Buy Co., Inc. | 56,133 | 4,295,859 | ||||||
Conn’s, Inc. (a) | 4,778 | 99,382 | ||||||
GameStop Corp. Class A | 23,507 | 94,498 | ||||||
Rent-A-Center, Inc. (a) | 10,598 | 286,464 | ||||||
|
| |||||||
4,776,203 | ||||||||
|
| |||||||
Home Improvement Retail – 10.4% | ||||||||
Floor & Decor Holdings, Inc. Class A (a) | 15,978 | 625,539 | ||||||
Lowe’s Cos., Inc. | 185,526 | 18,812,336 | ||||||
Lumber Liquidators Holdings, Inc. (a) | 7,408 | 64,968 | ||||||
The Home Depot, Inc. | 261,527 | 55,885,704 | ||||||
Tile Shop Holdings, Inc. | 11,996 | 31,070 | ||||||
|
| |||||||
75,419,617 | ||||||||
|
| |||||||
Homefurnishing Retail – 0.5% | ||||||||
Aarons, Inc. Class A | 15,692 | 989,381 | ||||||
At Home Group, Inc. (a) | 12,243 | 73,336 | ||||||
Bed Bath & Beyond, Inc. | 32,649 | 317,022 | ||||||
Haverty Furniture Companies, Inc. | 4,595 | 83,215 | ||||||
RH (a) | 4,442 | 619,215 | ||||||
Sleep Number Corp. (a) | 7,213 | 354,663 | ||||||
Williams-Sonoma, Inc. | 18,677 | 1,245,382 | ||||||
|
| |||||||
3,682,214 | ||||||||
|
| |||||||
Specialty Stores – 1.9% | ||||||||
Barnes & Noble, Inc. | 13,019 | 84,884 | ||||||
Dick’s Sporting Goods, Inc. | 17,297 | 642,929 | ||||||
Five Below, Inc. (a) | 12,991 | 1,525,923 | ||||||
Hibbett Sports, Inc. (a) | 4,647 | 85,505 |
Shares | Value | |||||||
MarineMax, Inc. (a) | 5,764 | $ | 88,996 | |||||
National Vision Holdings, Inc. (a) | 15,631 | 493,783 | ||||||
Office Depot, Inc. | 129,119 | 263,403 | ||||||
Party City Holdings, Inc. (a) | 14,234 | 90,813 | ||||||
Sally Beauty Holdings, Inc. (a) | 28,537 | 392,098 | ||||||
Signet Jewelers Ltd. | 12,477 | 226,333 | ||||||
The Container Store Group, | 5,661 | 34,589 | ||||||
The Michaels Cos., Inc. (a) | 23,003 | 158,031 | ||||||
Tiffany & Co., Inc. | 25,460 | 2,391,203 | ||||||
Tractor Supply Co. | 28,133 | 3,061,152 | ||||||
Ulta Salon, Cosmetics & Fragrance, | 13,057 | 4,560,157 | ||||||
Winmark Corp. | 649 | 109,687 | ||||||
|
| |||||||
14,209,486 | ||||||||
|
| |||||||
TOTAL SPECIALTY RETAIL | 156,920,956 | |||||||
|
| |||||||
TEXTILES, APPAREL & LUXURY GOODS – 7.3% |
| |||||||
Apparel, Accessories & Luxury Goods – 3.3% |
| |||||||
Capri Holdings Ltd. (a) | 35,116 | 1,249,778 | ||||||
Carter’s, Inc. | 10,630 | 988,803 | ||||||
Columbia Sportswear Co. | 7,173 | 760,195 | ||||||
Fossil Group, Inc. (a) | 11,020 | 121,661 | ||||||
G-III Apparel Group Ltd. (a) | 9,861 | 282,616 | ||||||
Hanesbrands, Inc. | 84,194 | 1,354,681 | ||||||
Kontoor Brands, Inc. (a) | 11,198 | 328,437 | ||||||
Lululemon Athletica, Inc. (a) | 26,076 | 4,982,863 | ||||||
Movado Group, Inc. | 4,113 | 108,295 | ||||||
Oxford Industries, Inc. | 4,032 | 295,102 | ||||||
PVH Corp. | 17,619 | 1,566,681 | ||||||
Ralph Lauren Corp. | 12,282 | 1,280,153 | ||||||
Tapestry, Inc. | 67,345 | 2,082,981 | ||||||
Under Armour, Inc. Class A (a) | 43,657 | 1,007,167 | ||||||
Under Armour, Inc. Class C (a) | 44,946 | 914,202 | ||||||
Vera Bradley, Inc. (a) | 6,270 | 73,673 | ||||||
VF Corp. | 77,900 | 6,807,681 | ||||||
|
| |||||||
24,204,969 | ||||||||
|
| |||||||
Footwear – 4.0% | ||||||||
Crocs, Inc. (a) | 15,400 | 351,890 | ||||||
Deckers Outdoor Corp. (a) | 6,785 | 1,060,360 | ||||||
NIKE, Inc. Class B | 291,453 | 25,073,702 | ||||||
Skechers U.S.A., Inc. Class A (a) | 31,207 | 1,183,994 | ||||||
Steven Madden Ltd. | 19,130 | 660,176 | ||||||
Wolverine World Wide, Inc. | 21,477 | 583,100 | ||||||
|
| |||||||
28,913,222 | ||||||||
|
| |||||||
Textiles – 0.0% | ||||||||
Unifi, Inc. (a) | 3,602 | 67,393 | ||||||
|
| |||||||
TOTAL TEXTILES, APPAREL & LUXURY GOODS |
| 53,185,584 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 727,525,472 | ||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 44 |
Table of Contents
Money Market Funds – 0.1% | ||||||||
Shares | Value | |||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 2.16% (b) | 637,000 | $ | 637,000 | |||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES –100.0% |
| 728,162,472 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.0% |
| 294,577 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $ | 728,457,049 | ||||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualizedseven-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.
45 | Annual Report |
Table of Contents
Fidelity® MSCI Consumer Staples Index ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.7% | ||||||||
Shares | Value | |||||||
BEVERAGES – 20.7% |
| |||||||
Brewers – 0.7% |
| |||||||
Molson Coors Brewing Co. Class B | 57,119 | $ | 3,083,855 | |||||
The Boston Beer Co., Inc. | 2,728 | 1,070,249 | ||||||
|
| |||||||
4,154,104 | ||||||||
|
| |||||||
Distillers & Vintners – 2.9% |
| |||||||
Brown-Forman Corp. Class B | 100,982 | 5,534,823 | ||||||
Constellation Brands, Inc. Class A | 50,567 | 9,952,597 | ||||||
MGP Ingredients, Inc. | 3,759 | 187,912 | ||||||
|
| |||||||
15,675,332 | ||||||||
|
| |||||||
Soft Drinks – 17.1% |
| |||||||
Coca-Cola Bottling Co. Consolidated | 1,470 | 431,489 | ||||||
Monster Beverage Corp. (a) | 126,379 | 8,147,654 | ||||||
National Beverage Corp. | 3,261 | 141,951 | ||||||
PepsiCo, Inc. | 191,174 | 24,433,949 | ||||||
Primo Water Corp. (a) | 9,143 | 135,042 | ||||||
The Coca-Cola Co. | 1,147,215 | 60,377,926 | ||||||
|
| |||||||
93,668,011 | ||||||||
|
| |||||||
TOTAL BEVERAGES | 113,497,447 | |||||||
|
| |||||||
FOOD & STAPLES RETAILING – 21.2% |
| |||||||
Drug Retail – 2.3% |
| |||||||
Rite Aid Corp. (a) | 14,702 | 102,473 | ||||||
Walgreens Boots Alliance, Inc. | 226,712 | 12,353,537 | ||||||
|
| |||||||
12,456,010 | ||||||||
|
| |||||||
Food Distributors – 2.7% | ||||||||
Performance Food Group Co. (a) | 29,300 | 1,284,805 | ||||||
SpartanNash Co. | 10,038 | 118,649 | ||||||
Sysco Corp. | 147,922 | 10,143,012 | ||||||
The Andersons, Inc. | 8,615 | 231,313 | ||||||
The Chefs’ Warehouse, Inc. (a) | 7,107 | 259,192 | ||||||
United Natural Foods, Inc. (a) | 14,311 | 141,106 | ||||||
US Foods Holding Corp. (a) | 70,272 | 2,485,521 | ||||||
|
| |||||||
14,663,598 | ||||||||
|
| |||||||
Food Retail – 1.4% | ||||||||
Casey’s General Stores, Inc. | 13,413 | 2,171,699 | ||||||
Ingles Markets, Inc. Class A | 3,558 | 112,006 | ||||||
Sprouts Farmers Market, Inc. (a) | 34,644 | 586,523 | ||||||
The Kroger Co. | 222,154 | 4,700,779 | ||||||
Village Super Market, Inc. Class A | 2,445 | 61,198 | ||||||
Weis Markets, Inc. | 4,508 | 164,316 | ||||||
|
| |||||||
7,796,521 | ||||||||
|
| |||||||
Hypermarkets & Super Centers – 14.8% |
| |||||||
BJ’s Wholesale Club Holdings, | 32,795 | 772,650 | ||||||
Costco Wholesale Corp. | 125,723 | 34,653,030 | ||||||
PriceSmart, Inc. | 6,381 | 389,241 | ||||||
Walmart, Inc. | 412,199 | 45,498,526 | ||||||
|
| |||||||
81,313,447 | ||||||||
|
| |||||||
TOTAL FOOD & STAPLES RETAILING |
| 116,229,576 | ||||||
|
|
Shares | Value | |||||||
FOOD PRODUCTS – 21.1% |
| |||||||
Agricultural Products – 2.7% |
| |||||||
Archer-Daniels-Midland Co. | 176,480 | $ | 7,249,798 | |||||
Bunge Ltd. | 54,160 | 3,164,569 | ||||||
Darling Ingredients, Inc. (a) | 86,761 | 1,763,851 | ||||||
Fresh Del Monte Produce, Inc. | 8,862 | 268,784 | ||||||
Ingredion, Inc. | 29,189 | 2,256,018 | ||||||
|
| |||||||
14,703,020 | ||||||||
|
| |||||||
Packaged Foods & Meats – 18.4% |
| |||||||
B&G Foods, Inc. | 20,069 | 366,861 | ||||||
Calavo Growers, Inc. | 6,409 | 566,812 | ||||||
Cal-Maine Foods, Inc. | 29,350 | 1,167,250 | ||||||
Campbell Soup Co. | 66,209 | 2,737,080 | ||||||
Conagra Brands, Inc. | 147,241 | 4,250,848 | ||||||
Farmer Bros Co. (a) | 3,037 | 49,321 | ||||||
Flowers Foods, Inc. | 87,928 | 2,083,894 | ||||||
Freshpet, Inc. (a) | 12,047 | 543,922 | ||||||
General Mills, Inc. | 181,850 | 9,658,053 | ||||||
Hormel Foods Corp. | 102,015 | 4,181,595 | ||||||
Hostess Brands, Inc. (a) | 78,851 | 1,113,376 | ||||||
J&J Snack Foods Corp. | 8,705 | 1,617,737 | ||||||
John B Sanfilippo & Son, Inc. | 2,362 | 205,281 | ||||||
Kellogg Co. | 86,146 | 5,015,420 | ||||||
Lamb Weston Holdings, Inc. | 53,201 | 3,570,851 | ||||||
Lancaster Colony Corp. | 10,772 | 1,678,493 | ||||||
Landec Corp. (a) | 7,328 | 81,854 | ||||||
McCormick & Co., Inc.(non-vtg.) | 39,344 | 6,237,598 | ||||||
Mondelez International, Inc. Class A | 417,639 | 22,339,510 | ||||||
Pilgrim’s Pride Corp. (a) | 26,548 | 718,389 | ||||||
Post Holdings, Inc. (a) | 25,212 | 2,703,231 | ||||||
Sanderson Farms, Inc. | 6,838 | 895,915 | ||||||
Seaboard Corp. | 211 | 861,226 | ||||||
The Hain Celestial Group, Inc. (a) | 25,960 | 565,149 | ||||||
The Hershey Co. | 46,704 | 7,086,865 | ||||||
The JM Smucker Co. | 39,086 | 4,345,972 | ||||||
The Kraft Heinz Co. | 190,827 | 6,108,372 | ||||||
The Simply Good Foods Co. (a) | 48,039 | 1,308,102 | ||||||
Tootsie Roll Industries, Inc. | 11,644 | 435,020 | ||||||
TreeHouse Foods, Inc. (a) | 19,788 | 1,174,220 | ||||||
Tyson Foods, Inc. Class A | 92,550 | 7,357,725 | ||||||
|
| |||||||
101,025,942 | ||||||||
|
| |||||||
TOTAL FOOD PRODUCTS | 115,728,962 | |||||||
|
| |||||||
HOUSEHOLD PRODUCTS – 21.8% |
| |||||||
Household Products – 21.8% |
| |||||||
Central Garden and Pet Co. (a) | 2,974 | 90,350 | ||||||
Central Garden and Pet Co. | ||||||||
Class A (a) | 11,682 | 321,839 | ||||||
Church & Dwight Co., Inc. | 79,429 | 5,992,124 | ||||||
Colgate-Palmolive Co. | 239,270 | 17,165,230 | ||||||
Energizer Holdings, Inc. | 18,519 | 779,280 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 46 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HOUSEHOLD PRODUCTS – continued |
| |||||||
Household Products – continued |
| |||||||
Kimberly-Clark Corp. | 102,014 | $ | 13,838,199 | |||||
Spectrum Brands Holdings, Inc. | 11,223 | 562,385 | ||||||
The Clorox Co. | 40,774 | 6,629,852 | ||||||
The Procter & Gamble Co. | 616,634 | 72,787,477 | ||||||
WD-40 Co. | 8,434 | 1,531,277 | ||||||
|
| |||||||
TOTAL HOUSEHOLD PRODUCTS | 119,698,013 | |||||||
|
| |||||||
PERSONAL PRODUCTS – 3.3% |
| |||||||
Personal Products – 3.3% |
| |||||||
Avon Products, Inc. (a) | 122,757 | 521,717 | ||||||
Coty, Inc. Class A | 83,683 | 912,982 | ||||||
Edgewell Personal Care Co. (a) | 15,099 | 459,463 | ||||||
elf Beauty, Inc. (a) | 6,118 | 101,498 | ||||||
Herbalife Nutrition Ltd. (a) | 38,775 | 1,590,550 | ||||||
Inter Parfums, Inc. | 16,681 | 1,155,660 | ||||||
Medifast, Inc. | 3,314 | 370,008 | ||||||
Nu Skin Enterprises, Inc. Class A | 15,452 | 617,771 | ||||||
The Estee Lauder Cos., Inc. | 65,237 | 12,016,003 | ||||||
USANA Health Sciences, Inc. (a) | 3,908 | 265,939 | ||||||
|
| |||||||
TOTAL PERSONAL PRODUCTS | 18,011,591 | |||||||
|
| |||||||
TOBACCO – 11.6% |
| |||||||
Tobacco – 11.6% |
| |||||||
Altria Group, Inc. | 539,505 | 25,394,500 |
Shares | Value | |||||||
Philip Morris International, Inc. | 442,834 | $ | 37,025,351 | |||||
Turning Point Brands, Inc. | 3,277 | 121,675 | ||||||
Universal Corp. | 6,975 | 415,013 | ||||||
Vector Group Ltd. | 31,451 | 363,259 | ||||||
|
| |||||||
TOTAL TOBACCO | 63,319,798 | |||||||
|
| |||||||
TOTAL COMMON STOCKS | 546,485,387 | |||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 2.16% (b) | 471,000 | 471,000 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES –99.8% |
| 546,956,387 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.2% |
| 1,113,557 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $548,069,944 |
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualizedseven-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.
47 | Annual Report |
Table of Contents
Fidelity® MSCI Energy Index ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
ENERGY EQUIPMENT & SERVICES – 10.9% |
| |||||||
Oil & Gas Drilling – 1.1% | ||||||||
Diamond Offshore Drilling, Inc. (a) | 23,147 | $ | 209,249 | |||||
Helmerich & Payne, Inc. | 37,352 | 1,855,647 | ||||||
Nabors Industries Ltd. | 116,230 | 344,041 | ||||||
Noble Corp. PLC (a) | 84,953 | 189,445 | ||||||
Patterson-UTI Energy, Inc. | 72,996 | 848,944 | ||||||
Transocean Ltd. (a) | 176,755 | 1,074,670 | ||||||
Valaris PLC | 67,313 | 551,293 | ||||||
|
| |||||||
5,073,289 | ||||||||
|
| |||||||
Oil & Gas Equipment & Services – 9.8% |
| |||||||
Apergy Corp. (a) | 26,353 | 857,263 | ||||||
Archrock, Inc. | 44,852 | 492,475 | ||||||
Baker Hughes a GE Co. | 175,258 | 4,449,801 | ||||||
C&J Energy Services, Inc. (a) | 22,657 | 247,868 | ||||||
Cactus, Inc. Class A (a) | 15,771 | 463,194 | ||||||
Core Laboratories N.V. | 15,084 | 756,764 | ||||||
Covia Holdings Corp. (a) | 11,584 | 20,156 | ||||||
DMC Global, Inc. | 5,062 | 264,439 | ||||||
Dril-Quip, Inc. (a) | 12,447 | 654,961 | ||||||
Exterran Corp. (a) | 10,475 | 142,984 | ||||||
Forum Energy Technologies, Inc. (a) | 26,186 | 68,607 | ||||||
Frank’s International N.V. (a) | 30,827 | 175,714 | ||||||
FTS International, Inc. (a) | 11,342 | 45,028 | ||||||
Halliburton Co. | 297,865 | 6,850,895 | ||||||
Helix Energy Solutions Group, | 48,273 | 422,871 | ||||||
Keane Group, Inc. (a) | 16,333 | 102,734 | ||||||
KLX Energy Services Holdings, | 6,847 | 107,635 | ||||||
Liberty Oilfield Services, Inc. Class A | 19,085 | 270,053 | ||||||
Mammoth Energy Services, Inc. | 4,663 | 30,216 | ||||||
Matrix Service Co. (a) | 9,248 | 169,886 | ||||||
McDermott International, Inc. (a) | 61,908 | 397,449 | ||||||
National Oilwell Varco, Inc. | 130,895 | 3,117,919 | ||||||
Newpark Resources, Inc. (a) | 31,028 | 236,744 | ||||||
Nine Energy Service, Inc. (a) | 5,792 | 74,543 | ||||||
Oceaneering International, Inc. (a) | 33,573 | 518,703 | ||||||
Oil States International, Inc. (a) | 19,619 | 292,715 | ||||||
ProPetro Holding Corp. (a) | 28,991 | 525,607 | ||||||
RPC, Inc. | 21,973 | 135,793 | ||||||
Schlumberger Ltd. | 473,138 | 18,911,326 | ||||||
SEACOR Holdings, Inc. (a) | 5,944 | 283,172 | ||||||
Select Energy Services, Inc. | 20,639 | 209,899 | ||||||
Solaris Oilfield Infrastructure, Inc. | 10,726 | 153,489 | ||||||
Superior Energy Services, Inc. (a) | 53,010 | 48,091 | ||||||
TechnipFMC PLC | 145,986 | 4,020,454 | ||||||
TETRA Technologies, Inc. (a) | 43,139 | 67,297 | ||||||
Tidewater, Inc. (a) | 11,818 | 271,696 |
Shares | Value | |||||||
US Silica Holdings, Inc. | 23,644 | $ | 327,706 | |||||
|
| |||||||
46,186,147 | ||||||||
|
| |||||||
TOTAL ENERGY EQUIPMENT & SERVICES |
| 51,259,436 | ||||||
|
| |||||||
OIL, GAS & CONSUMABLE FUELS – 88.9% |
| |||||||
Coal & Consumable Fuels – 0.3% | ||||||||
Arch Coal, Inc. Class A | 5,732 | 511,065 | ||||||
CONSOL Energy, Inc. (a) | 9,441 | 202,887 | ||||||
Contura Energy, Inc. (a) | 6,513 | 233,361 | ||||||
Peabody Energy Corp. | 25,922 | 545,918 | ||||||
|
| |||||||
1,493,231 | ||||||||
|
| |||||||
Integrated Oil & Gas – 42.9% | ||||||||
Chevron Corp. | 648,635 | 79,853,455 | ||||||
Exxon Mobil Corp. | 1,446,410 | 107,555,048 | ||||||
Occidental Petroleum Corp. | 255,878 | 13,141,894 | ||||||
Unit Corp. (a) | 18,583 | 120,789 | ||||||
|
| |||||||
200,671,186 | ||||||||
|
| |||||||
Oil & Gas Exploration & Production – 25.0% |
| |||||||
Anadarko Petroleum Corp. | 170,543 | 12,562,197 | ||||||
Antero Resources Corp. (a) | 89,265 | 411,512 | ||||||
Apache Corp. | 127,935 | 3,124,173 | ||||||
Berry Petroleum Corp. | 22,435 | 219,863 | ||||||
Bonanza Creek Energy, Inc. (a) | 5,274 | 114,973 | ||||||
Cabot Oil & Gas Corp. | 144,528 | 2,769,156 | ||||||
California Resources Corp. (a) | 15,760 | 241,286 | ||||||
Callon Petroleum Co. (a) | 77,713 | 382,348 | ||||||
Carrizo Oil & Gas, Inc. (a) | 31,516 | 300,347 | ||||||
Centennial Resource Development, Inc. Class A (a) | 62,945 | 374,523 | ||||||
Chaparral Energy, Inc. Class A (a) | 13,240 | 47,002 | ||||||
Chesapeake Energy Corp. (a) | 389,255 | 704,552 | ||||||
Cimarex Energy Co. | 34,579 | 1,752,118 | ||||||
CNX Resources Corp. (a) | 67,608 | 555,738 | ||||||
Concho Resources, Inc. | 68,478 | 6,688,931 | ||||||
ConocoPhillips | 387,259 | 22,879,262 | ||||||
Continental Resources, Inc. (a) | 32,090 | 1,192,785 | ||||||
Denbury Resources, Inc. (a) | 157,705 | 178,207 | ||||||
Devon Energy Corp. | 149,666 | 4,040,982 | ||||||
Diamondback Energy, Inc. | 53,310 | 5,513,853 | ||||||
EOG Resources, Inc. | 198,016 | 16,999,674 | ||||||
EQT Corp. | 86,826 | 1,311,941 | ||||||
Extraction Oil & Gas, Inc. (a) | 38,190 | 141,685 | ||||||
Gran Tierra Energy, Inc. (a) | 131,442 | 214,250 | ||||||
Gulfport Energy Corp. (a) | 53,107 | 200,744 | ||||||
Hess Corp. | 93,104 | 6,036,863 | ||||||
HighPoint Resources Corp. (a) | 40,053 | 50,066 | ||||||
Jagged Peak Energy, Inc. (a) | 21,997 | 161,458 | ||||||
Kosmos Energy Ltd. | 95,149 | 571,845 | ||||||
Laredo Petroleum, Inc. (a) | 51,811 | 172,013 | ||||||
Magnolia Oil & Gas Corp. | 37,662 | 421,061 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 48 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
OIL, GAS & CONSUMABLE FUELS – continued |
| |||||||
Oil & Gas Exploration & Production – continued |
| |||||||
Marathon Oil Corp. | 279,417 | $ | 3,931,397 | |||||
Matador Resources Co. (a) | 37,612 | 663,100 | ||||||
Montage Resources Corp. (a) | 7,492 | 25,023 | ||||||
Murphy Oil Corp. | 56,016 | 1,346,625 | ||||||
Noble Energy, Inc. | 165,009 | 3,643,399 | ||||||
Northern Oil and Gas, Inc. (a) | 72,107 | 116,813 | ||||||
Oasis Petroleum, Inc. (a) | 97,287 | 473,788 | ||||||
Parsley Energy, Inc. Class A (a) | 95,700 | 1,587,663 | ||||||
PDC Energy, Inc. (a) | 22,591 | 649,039 | ||||||
Penn Virginia Corp. (a) | 3,616 | 123,812 | ||||||
Pioneer Natural Resources Co. | 57,477 | 7,934,125 | ||||||
QEP Resources, Inc. (a) | 80,860 | 400,257 | ||||||
Range Resources Corp. | 72,518 | 412,627 | ||||||
Ring Energy, Inc. (a) | 19,754 | 48,397 | ||||||
Roan Resources, Inc. (a) | 24,377 | 29,252 | ||||||
SandRidge Energy, Inc. (a) | 10,470 | 70,673 | ||||||
SM Energy Co. | 36,161 | 360,525 | ||||||
Southwestern Energy Co. (a) | 184,579 | 406,074 | ||||||
SRC Energy, Inc. (a) | 82,763 | 337,673 | ||||||
Talos Energy, Inc. (a) | 7,445 | 153,218 | ||||||
Tellurian, Inc. (a) | 33,035 | 203,826 | ||||||
Texas Pacific Land Trust | 2,120 | 1,690,064 | ||||||
W&T Offshore, Inc. (a) | 33,632 | 151,008 | ||||||
Whiting Petroleum Corp. (a) | 31,116 | 550,131 | ||||||
WPX Energy, Inc. (a) | 143,424 | 1,497,347 | ||||||
|
| |||||||
117,141,264 | ||||||||
|
| |||||||
Oil & Gas Refining & Marketing – 10.4% |
| |||||||
Clean Energy Fuels Corp. (a) | 48,777 | 130,235 | ||||||
CVR Energy, Inc. | 10,316 | 547,470 | ||||||
Delek US Holdings, Inc. | 27,917 | 1,202,664 | ||||||
Green Plains, Inc. | 13,496 | 136,175 | ||||||
HollyFrontier Corp. | 55,381 | 2,756,312 | ||||||
Marathon Petroleum Corp. | 229,957 | 12,967,275 | ||||||
Par Pacific Holdings, Inc. (a) | 11,015 | 254,006 | ||||||
PBF Energy, Inc. Class A | 38,780 | 1,083,125 | ||||||
Phillips 66 | 155,668 | 15,965,310 | ||||||
Renewable Energy Group, Inc. (a) | 12,791 | 173,830 | ||||||
REX American Resources Corp. (a) | 1,910 | 142,486 |
Shares | Value | |||||||
Valero Energy Corp. | 142,563 | $ | 12,153,496 | |||||
World Fuel Services Corp. | 22,776 | 889,175 | ||||||
|
| |||||||
48,401,559 | ||||||||
|
| |||||||
Oil & Gas Storage & Transportation – 10.3% |
| |||||||
Antero Midstream Corp. | 77,616 | 707,858 | ||||||
Cheniere Energy, Inc. (a) | 79,094 | 5,152,974 | ||||||
EnLink Midstream LLC | 91,388 | 877,325 | ||||||
Equitrans Midstream Corp. | 73,686 | 1,222,451 | ||||||
International Seaways, Inc. (a) | 6,992 | 118,934 | ||||||
Kinder Morgan, Inc. | 695,482 | 14,340,839 | ||||||
ONEOK, Inc. | 140,514 | 9,847,221 | ||||||
Plains GP Holdings LP Class A (a) | 51,648 | 1,247,816 | ||||||
SemGroup Corp. Class A | 23,074 | 292,347 | ||||||
Tallgrass Energy LP | 47,988 | 919,930 | ||||||
Targa Resources Corp. | 78,271 | 3,045,524 | ||||||
The Williams Cos., Inc. | 413,400 | 10,186,176 | ||||||
|
| |||||||
47,959,395 | ||||||||
|
| |||||||
TOTAL OIL, GAS & CONSUMABLE FUELS |
| 415,666,635 | ||||||
|
| |||||||
TOTAL COMMON STOCKS | 466,926,071 | |||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 2.16% (b) | 238,000 | 238,000 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 99.9% |
| 467,164,071 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 464,044 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $ | 467,628,115 | ||||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualizedseven-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.
49 | Annual Report |
Table of Contents
Fidelity® MSCI Financials Index ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
BANKS – 43.4% | ||||||||
Diversified Banks – 28.3% | ||||||||
Bank of America Corp. | 2,642,046 | $ | 81,057,971 | |||||
Citigroup, Inc. | 677,087 | 48,181,511 | ||||||
JPMorgan Chase & Co. | 942,771 | 109,361,436 | ||||||
US Bancorp | 437,832 | 25,022,099 | ||||||
Wells Fargo & Co. | 1,244,444 | 60,243,534 | ||||||
|
| |||||||
323,866,551 | ||||||||
|
| |||||||
Regional Banks – 15.1% | ||||||||
1st Source Corp. | 5,316 | 249,586 | ||||||
Allegiance Bancshares, Inc. (a) | 3,639 | 122,125 | ||||||
Amalgamated Bank Class A | 4,134 | 70,939 | ||||||
Ameris Bancorp | 19,069 | 758,374 | ||||||
Arrow Financial Corp. | 3,934 | 130,845 | ||||||
Associated Banc-Corp | 47,408 | 1,027,331 | ||||||
Atlantic Capital Bancshares, Inc. (a) | 7,220 | 132,776 | ||||||
Atlantic Union Bankshares Corp. | 21,267 | 808,784 | ||||||
Banc of California, Inc. | 13,035 | 203,737 | ||||||
Bancfirst Corp. | 5,181 | 302,260 | ||||||
BancorpSouth Bank | 28,663 | 856,737 | ||||||
Bank of Hawaii Corp. | 11,931 | 1,017,118 | ||||||
Bank of Marin Bancorp | 3,531 | 154,375 | ||||||
Bank OZK | 37,951 | 1,160,542 | ||||||
BankUnited, Inc. | 28,441 | 978,655 | ||||||
Banner Corp. | 10,274 | 608,837 | ||||||
Bar Harbor Bankshares | 4,716 | 119,739 | ||||||
BB&T Corp. | 219,884 | 11,330,623 | ||||||
Berkshire Hills Bancorp, Inc. | 12,815 | 420,332 | ||||||
BOK Financial Corp. | 9,256 | 774,542 | ||||||
Boston Private Financial Holdings, Inc. | 25,205 | 290,866 | ||||||
Bridge Bancorp, Inc. | 4,572 | 133,548 | ||||||
Brookline Bancorp, Inc. | 24,001 | 355,935 | ||||||
Bryn Mawr Bank Corp. | 5,844 | 216,696 | ||||||
Byline Bancorp, Inc. (a) | 4,824 | 92,187 | ||||||
Cadence BanCorp | 38,344 | 657,216 | ||||||
Camden National Corp. | 4,577 | 204,638 | ||||||
Carolina Financial Corp. | 6,095 | 214,056 | ||||||
Cathay General Bancorp | 22,175 | 825,354 | ||||||
CBTX, Inc. | 5,522 | 166,433 | ||||||
CenterState Banks, Inc. | 33,787 | 821,700 | ||||||
Central Pacific Financial Corp. | 8,128 | 239,532 | ||||||
Century Bancorp, Inc. Class A | 831 | 69,596 | ||||||
CIT Group, Inc. | 29,084 | 1,470,196 | ||||||
Citizens Financial Group, Inc. | 132,360 | 4,931,734 | ||||||
City Holding Co. | 4,856 | 376,097 | ||||||
Columbia Banking System, Inc. | 21,647 | 816,308 | ||||||
Comerica, Inc. | 45,762 | 3,349,778 | ||||||
Commerce Bancshares, Inc. | 28,784 | 1,750,931 | ||||||
Community Bank System, Inc. | 15,245 | 1,006,018 | ||||||
Community Trust Bancorp, Inc. | 4,685 | 198,129 | ||||||
ConnectOne Bancorp, Inc. | 9,714 | 222,062 |
Shares | Value | |||||||
Cullen/Frost Bankers, Inc. | 17,265 | $ | 1,639,139 | |||||
Customers Bancorp, Inc. (a) | 8,751 | 180,446 | ||||||
CVB Financial Corp. | 32,438 | 713,960 | ||||||
Eagle Bancorp, Inc. | 9,430 | 380,123 | ||||||
East West Bancorp, Inc. | 41,771 | 2,005,426 | ||||||
Enterprise Financial Services Corp. | 7,274 | 303,180 | ||||||
Equity Bancshares, Inc. Class A (a) | 4,466 | 118,304 | ||||||
FB Financial Corp. | 5,028 | 191,114 | ||||||
Fifth Third Bancorp | 232,674 | 6,908,091 | ||||||
Financial Institutions, Inc. | 4,463 | 137,416 | ||||||
First BanCorp | 64,238 | 691,201 | ||||||
First BanCorp/NC | 8,593 | 317,425 | ||||||
First Busey Corp. | 14,432 | 390,097 | ||||||
First Citizens BancShares, Inc. Class A | 1,962 | 916,293 | ||||||
First Commonwealth Financial Corp. | 29,439 | 405,375 | ||||||
First Community Bancshares, Inc. | 4,230 | 139,886 | ||||||
First Financial Bancorp | 28,823 | 734,698 | ||||||
First Financial Bankshares, Inc. | 31,274 | 1,024,223 | ||||||
First Financial Corp. | 3,025 | 131,315 | ||||||
First Foundation, Inc. | 10,900 | 163,936 | ||||||
First Hawaiian, Inc. | 38,991 | 1,043,399 | ||||||
First Horizon National Corp. | 91,489 | 1,500,420 | ||||||
First Interstate Bancsystem, Inc. | 11,691 | 467,991 | ||||||
First Merchants Corp. | 16,188 | 637,969 | ||||||
FirstMid-Illinois Bancshares, Inc. | 3,839 | 130,833 | ||||||
First Midwest Bancorp, Inc. | 31,429 | 679,809 | ||||||
First Republic Bank | 48,008 | 4,770,075 | ||||||
Flushing Financial Corp. | 8,001 | 162,900 | ||||||
FNB Corp. | 93,580 | 1,127,639 | ||||||
Franklin Financial Network, Inc. | 4,107 | 121,157 | ||||||
Fulton Financial Corp. | 49,094 | 834,598 | ||||||
German American Bancorp, Inc. | 6,788 | 214,161 | ||||||
Glacier Bancorp, Inc. | 24,851 | 1,041,505 | ||||||
Great Southern Bancorp, Inc. | 3,306 | 198,228 | ||||||
Great Western Bancorp, Inc. | 16,628 | 562,359 | ||||||
Hancock Whitney Corp. | 24,565 | 1,019,939 | ||||||
Hanmi Financial Corp. | 9,306 | 199,986 | ||||||
HarborOne Bancorp, Inc. (a) | 4,615 | 88,377 | ||||||
Heartland Financial USA, Inc. | 9,056 | 435,503 | ||||||
Heritage Commerce Corp. | 12,363 | 152,930 | ||||||
Heritage Financial Corp. | 10,449 | 298,005 | ||||||
Hilltop Holdings, Inc. | 21,500 | 487,620 | ||||||
Home BancShares, Inc. | 46,069 | 906,177 | ||||||
HomeTrust Bancshares, Inc. | 5,084 | 132,845 | ||||||
Hope Bancorp, Inc. | 36,612 | 540,027 | ||||||
Horizon Bancorp, Inc. | 10,941 | 190,592 | ||||||
Huntington Bancshares, Inc. | 300,972 | 4,288,851 | ||||||
Iberiabank Corp. | 15,841 | 1,244,627 | ||||||
Independent Bank Corp./MA | 9,804 | 762,359 | ||||||
Independent Bank Corp./MI | 6,121 | 133,071 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 50 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
BANKS – continued | ||||||||
Regional Banks – continued | ||||||||
Independent Bank Group, Inc. | 10,104 | $ | 574,008 | |||||
International Bancshares Corp. | 16,194 | 609,380 | ||||||
Investors Bancorp, Inc. | 69,548 | 790,065 | ||||||
KeyCorp | 289,995 | 5,327,208 | ||||||
Lakeland Bancorp, Inc. | 13,774 | 225,618 | ||||||
Lakeland Financial Corp. | 7,249 | 333,382 | ||||||
LegacyTexas Financial Group, Inc. | 14,013 | 598,916 | ||||||
Live Oak Bancshares, Inc. | 7,202 | 140,223 | ||||||
M&T Bank Corp. | 37,829 | 6,213,413 | ||||||
Mercantile Bank Corp. | 4,376 | 147,034 | ||||||
Midland States Bancorp, Inc. | 6,381 | 173,053 | ||||||
National Bank Holdings Corp. Class A | 8,435 | 306,022 | ||||||
NBT Bancorp, Inc. | 12,638 | 489,091 | ||||||
Nicolet Bankshares, Inc. (a) | 2,499 | 164,209 | ||||||
OFG Bancorp | 14,683 | 332,276 | ||||||
Old Line Bancshares, Inc. | 4,154 | 117,309 | ||||||
Old National Bancorp | 45,509 | 801,413 | ||||||
Opus Bank | 7,526 | 168,658 | ||||||
Origin Bancorp, Inc. | 5,021 | 174,781 | ||||||
Pacific Premier Bancorp, Inc. | 16,224 | 513,165 | ||||||
PacWest Bancorp | 34,766 | 1,343,011 | ||||||
Park National Corp. | 4,030 | 381,198 | ||||||
Peapack Gladstone Financial Corp. | 4,950 | 140,729 | ||||||
Peoples Bancorp, Inc. | 5,353 | 173,491 | ||||||
People’s United Financial, Inc. | 114,517 | 1,880,369 | ||||||
People’s Utah Bancorp | 4,741 | 143,652 | ||||||
Pinnacle Financial Partners, Inc. | 21,100 | 1,281,614 | ||||||
Popular, Inc. | 28,824 | 1,659,109 | ||||||
Preferred Bank | 4,471 | 242,283 | ||||||
Prosperity Bancshares, Inc. | 19,149 | 1,328,749 | ||||||
QCR Holdings, Inc. | 4,525 | 173,127 | ||||||
Regions Financial Corp. | 292,597 | 4,661,070 | ||||||
Renasant Corp. | 13,522 | 485,305 | ||||||
Republic Bancorp, Inc. Class A | 2,917 | 139,345 | ||||||
Republic First Bancorp, Inc. (a) | 13,075 | 56,876 | ||||||
S&T Bancorp, Inc. | 10,416 | 396,537 | ||||||
Sandy Spring Bancorp, Inc. | 10,263 | 373,984 | ||||||
Seacoast Banking Corp. of Florida (a) | 14,793 | 400,003 | ||||||
ServisFirst Bancshares, Inc. | 13,205 | 449,762 | ||||||
Signature Bank | 15,866 | 2,022,280 | ||||||
Simmons First National Corp. Class A | 27,455 | 706,966 | ||||||
South State Corp. | 10,210 | 817,515 | ||||||
Southside Bancshares, Inc. | 9,232 | 319,612 | ||||||
Sterling Bancorp/DE | 62,376 | 1,362,916 | ||||||
Stock Yards Bancorp, Inc. | 6,282 | 240,287 | ||||||
SunTrust Banks, Inc. | 127,406 | 8,485,240 | ||||||
SVB Financial Group (a) | 15,103 | 3,503,443 | ||||||
Synovus Financial Corp. | 45,894 | 1,751,774 | ||||||
TCF Financial Corp. | 44,996 | 962,014 |
Shares | Value | |||||||
TCF Financial Corp. | 20,618 | $ | 866,781 | |||||
Texas Capital Bancshares, Inc. (a) | 14,491 | 911,919 | ||||||
The Bancorp, Inc. (a) | 14,709 | 142,383 | ||||||
The First Bancshares, Inc. | 4,699 | 156,054 | ||||||
The First of Long Island Corp. | 7,444 | 164,661 | ||||||
The PNC Financial Services Group, Inc. | 131,906 | 18,849,367 | ||||||
Tompkins Financial Corp. | 4,025 | 329,929 | ||||||
Towne Bank | 20,856 | 586,888 | ||||||
Trico Bancshares | 7,901 | 298,263 | ||||||
TriState Capital Holdings, Inc. (a) | 6,763 | 142,023 | ||||||
Triumph Bancorp, Inc. (a) | 7,320 | 228,457 | ||||||
Trustmark Corp. | 17,622 | 626,286 | ||||||
UMB Financial Corp. | 13,657 | 932,227 | ||||||
Umpqua Holdings Corp. | 63,549 | 1,109,566 | ||||||
United Bankshares, Inc. | 29,416 | 1,105,747 | ||||||
United Community Banks, Inc. | 23,355 | 670,289 | ||||||
Univest Financial Corp. | 8,365 | 229,703 | ||||||
Valley National Bancorp | 95,596 | 1,066,851 | ||||||
Veritex Holdings, Inc. | 12,398 | 317,265 | ||||||
Washington Trust Bancorp, Inc. | 4,524 | 227,241 | ||||||
Webster Financial Corp. | 26,604 | 1,356,804 | ||||||
WesBanco, Inc. | 15,792 | 577,671 | ||||||
Westamerica BanCorp. | 8,019 | 514,018 | ||||||
Western Alliance Bancorp (a) | 28,549 | 1,411,463 | ||||||
Wintrust Financial Corp. | 16,276 | 1,164,385 | ||||||
Zions Bancorp NA | 53,516 | 2,411,966 | ||||||
|
| |||||||
171,982,559 | ||||||||
|
| |||||||
TOTAL BANKS | 495,849,110 | |||||||
|
| |||||||
CAPITAL MARKETS – 19.8% | ||||||||
Asset Management & Custody Banks – 6.4% |
| |||||||
Affiliated Managers Group, Inc. | 14,920 | 1,279,987 | ||||||
Ameriprise Financial, Inc. | 38,987 | 5,672,998 | ||||||
Ares Management Corp. Class A | 22,284 | 651,807 | ||||||
Artisan Partners Asset Management, Inc. Class A | 14,870 | 440,003 | ||||||
Associated Capital Group, Inc. Class A | 1,076 | 40,210 | ||||||
BlackRock, Inc. | 34,232 | 16,009,622 | ||||||
Blucora, Inc. (a) | 13,856 | 414,849 | ||||||
Brihgtsphere Investment Group (a) | 22,502 | 240,771 | ||||||
Cohen & Steers, Inc. | 6,747 | 353,340 | ||||||
Diamond Hill Investment Group, Inc. | 935 | 131,788 | ||||||
Eaton Vance Corp. | 33,219 | 1,478,246 | ||||||
Federated Investors, Inc. Class B | 27,611 | 959,482 | ||||||
Franklin Resources, Inc. | 87,790 | 2,864,588 | ||||||
GAMCO Investors, Inc. Class A | 1,580 | 32,074 | ||||||
Hamilton Lane, Inc. Class A | 5,523 | 324,200 | ||||||
Invesco Ltd. | 113,992 | 2,187,507 | ||||||
Janus Henderson Group PLC | 49,537 | 994,208 |
See accompanying notes which are an integral part of the financial statements.
51 | Annual Report |
Table of Contents
Fidelity® MSCI Financials Index ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
CAPITAL MARKETS – continued | ||||||||
Asset Management & Custody Banks – continued |
| |||||||
KKR & Co., Inc. Class A | 139,741 | $ | 3,738,072 | |||||
Legg Mason, Inc. | 24,488 | 922,218 | ||||||
Northern Trust Corp. | 59,698 | 5,850,404 | ||||||
Pzena Investment Management, Inc. | 4,695 | 38,217 | ||||||
SEI Investments Co. | 37,649 | 2,243,504 | ||||||
State Street Corp. | 108,925 | 6,327,453 | ||||||
T Rowe Price Group, Inc. | 67,951 | 7,704,964 | ||||||
The Bank of New York Mellon Corp. | 247,044 | 11,591,305 | ||||||
Victory Capital Holdings, Inc. Class A (a) | 3,774 | 67,441 | ||||||
Virtus Investment Partners, Inc. | 2,089 | 223,857 | ||||||
Waddell & Reed Financial, Inc. Class A | 22,012 | 385,210 | ||||||
Westwood Holdings Group, Inc. | 2,259 | 70,707 | ||||||
WisdomTree Investments, Inc. | 34,911 | 216,448 | ||||||
|
| |||||||
73,455,480 | ||||||||
|
| |||||||
Financial Exchanges and Data – 7.2% |
| |||||||
CBOE Holdings, Inc. | 32,035 | 3,501,746 | ||||||
CME Group, Inc. | 103,021 | 20,029,343 | ||||||
Donnelley Financial Solutions, Inc. (a) | 9,445 | 128,735 | ||||||
FactSet Research Systems, Inc. | 11,005 | 3,051,687 | ||||||
Intercontinental Exchange, Inc. | 163,691 | 14,381,891 | ||||||
MarketAxess Holdings, Inc. | 10,824 | 3,648,121 | ||||||
Moody’s Corp. | 49,415 | 10,591,611 | ||||||
Morningstar, Inc. | 5,536 | 841,361 | ||||||
MSCI, Inc. | 24,210 | 5,501,480 | ||||||
Nasdaq, Inc. | 33,326 | 3,211,627 | ||||||
S&P Global, Inc. | 71,581 | 17,533,766 | ||||||
|
| |||||||
82,421,368 | ||||||||
|
| |||||||
Investment Banking & Brokerage – 6.2% |
| |||||||
B. Riley Financial, Inc. | 3,949 | 74,478 | ||||||
BGC Partners, Inc. Class A | 75,667 | 416,925 | ||||||
Cowen, Inc. Class A (a) | 7,835 | 137,583 | ||||||
E*TRADE Financial Corp. | 70,729 | 3,450,868 | ||||||
Evercore Partners, Inc. Class A | 11,831 | 1,021,843 | ||||||
Greenhill & Co., Inc. | 4,573 | 75,912 | ||||||
Houlihan Lokey, Inc. | 9,920 | 456,320 | ||||||
Interactive Brokers Group, Inc. Class A | 20,578 | 1,054,828 | ||||||
INTL. FCStone, Inc. (a) | 4,719 | 192,441 | ||||||
Ladenburg Thalmann Financial Services, Inc. | 30,637 | 94,668 | ||||||
LPL Financial Holdings, Inc. | 24,216 | 2,030,996 | ||||||
Moelis & Co. Class A | 13,045 | 475,360 | ||||||
Morgan Stanley | 369,016 | 16,443,353 | ||||||
Piper Jaffray Cos. | 3,944 | 304,871 | ||||||
PJT Partners, Inc. Class A | 5,768 | 243,179 | ||||||
Raymond James Financial, Inc. | 36,444 | 2,939,937 | ||||||
Stifel Financial Corp. | 21,425 | 1,281,429 |
Shares | Value | |||||||
TD Ameritrade Holding Corp. | 80,572 | $ | 4,117,229 | |||||
The Charles Schwab Corp. | 345,409 | 14,928,577 | ||||||
The Goldman Sachs Group, Inc. | 95,435 | 21,008,107 | ||||||
Virtu Financial, Inc. Class A | 13,635 | 295,607 | ||||||
|
| |||||||
71,044,511 | ||||||||
|
| |||||||
TOTAL CAPITAL MARKETS | 226,921,359 | |||||||
|
| |||||||
CONSUMER FINANCE – 5.7% | ||||||||
Consumer Finance – 5.7% | ||||||||
Ally Financial, Inc. | 115,602 | 3,804,462 | ||||||
American Express Co. | 206,410 | 25,671,212 | ||||||
Capital One Financial Corp. | 134,720 | 12,450,822 | ||||||
Credit Acceptance Corp. (a) | 2,988 | 1,428,354 | ||||||
Curo Group Holdings Corp. (a) | 3,899 | 48,426 | ||||||
Discover Financial Services | 94,410 | 8,472,353 | ||||||
Encore Capital Group, Inc. (a) | 7,491 | 269,526 | ||||||
Enova International, Inc. (a) | 9,669 | 260,580 | ||||||
Ezcorp, Inc. Class A (a) | 15,129 | 149,021 | ||||||
FirstCash, Inc. | 12,559 | 1,263,938 | ||||||
Green Dot Corp. Class A (a) | 14,502 | 735,106 | ||||||
LendingClub Corp. (a) | 17,301 | 255,709 | ||||||
Navient Corp. | 63,476 | 898,185 | ||||||
Nelnet, Inc. Class A | 5,785 | 361,910 | ||||||
OneMain Holdings, Inc. | 23,543 | 975,857 | ||||||
PRA Group, Inc. (a) | 12,904 | 401,701 | ||||||
SLM Corp. | 125,673 | 1,144,881 | ||||||
Synchrony Financial | 183,502 | 6,584,052 | ||||||
World Acceptance Corp. (a) | 2,106 | 266,893 | ||||||
|
| |||||||
TOTAL CONSUMER FINANCE |
| 65,442,988 | ||||||
|
| |||||||
DIVERSIFIED FINANCIAL SERVICES – 7.3% |
| |||||||
Multi-Sector Holdings – 6.9% | ||||||||
Berkshire Hathaway, Inc. Class B (a) | 375,501 | 77,139,170 | ||||||
Cannae Holdings, Inc. (a) | 17,611 | 509,838 | ||||||
Jefferies Financial Group, Inc. | 74,096 | 1,580,468 | ||||||
|
| |||||||
79,229,476 | ||||||||
|
| |||||||
Other Diversified Financial Services – 0.4% |
| |||||||
AXA Equitable Holdings, Inc. | 84,568 | 1,901,089 | ||||||
FGL Holdings | 47,957 | 390,850 | ||||||
Voya Financial, Inc. | 42,026 | 2,360,600 | ||||||
|
| |||||||
4,652,539 | ||||||||
|
| |||||||
Specialized Finance – 0.0% | ||||||||
NewStar Financial, Inc. (b) | 6,699 | 1,739 | ||||||
On Deck Capital, Inc. (a) | 15,228 | 54,516 | ||||||
|
| |||||||
56,255 | ||||||||
|
| |||||||
TOTAL DIVERSIFIED FINANCIAL SERVICES |
| 83,938,270 | ||||||
|
| |||||||
INSURANCE – 20.6% | ||||||||
Insurance Brokers – 3.7% | ||||||||
Aon PLC | 69,104 | 13,077,932 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 52 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
INSURANCE – continued | ||||||||
Insurance Brokers – continued | ||||||||
Arthur J Gallagher & Co. | 52,912 | $ | 4,784,832 | |||||
Brown & Brown, Inc. | 68,187 | 2,449,959 | ||||||
Crawford & Co. Class A | 5,274 | 54,480 | ||||||
eHealth, Inc. (a) | 5,841 | 606,004 | ||||||
Marsh & McLennan Cos., Inc. | 145,439 | 14,369,373 | ||||||
Willis Towers Watson PLC | 37,263 | 7,274,483 | ||||||
|
| |||||||
42,617,063 | ||||||||
|
| |||||||
Life & Health Insurance – 4.9% | ||||||||
Aflac, Inc. | 216,047 | 11,372,714 | ||||||
American Equity Investment Life | ||||||||
Holding Co. | 26,768 | 690,615 | ||||||
Athene Holding Ltd. Class A (a) | 46,377 | 1,894,964 | ||||||
Brighthouse Financial, Inc. (a) | 30,099 | 1,178,978 | ||||||
Citizens, Inc. (a) | 14,682 | 109,381 | ||||||
CNO Financial Group, Inc. | 46,351 | 783,796 | ||||||
FBL Financial Group, Inc. Class A | 3,242 | 203,273 | ||||||
Genworth Financial, Inc. Class A (a) | 145,501 | 580,549 | ||||||
Independence Holding Co. | 1,671 | 63,331 | ||||||
Lincoln National Corp. | 58,792 | 3,841,469 | ||||||
MetLife, Inc. | 234,288 | 11,578,513 | ||||||
National Western Life Group, Inc. | 719 | 193,411 | ||||||
Primerica, Inc. | 12,202 | 1,497,063 | ||||||
Principal Financial Group, Inc. | 79,915 | 4,638,267 | ||||||
Prudential Financial, Inc. | 117,597 | 11,913,752 | ||||||
Torchmark Corp. | 30,510 | 2,786,173 | ||||||
Trupanion, Inc. (a) | 8,421 | 270,819 | ||||||
Unum Group | 61,880 | 1,977,066 | ||||||
|
| |||||||
55,574,134 | ||||||||
|
| |||||||
Multi-line Insurance – 2.3% | ||||||||
American Financial Group, Inc. | 22,354 | 2,288,603 | ||||||
American International Group, Inc. | 250,356 | 14,017,432 | ||||||
American National Insurance Co. | 2,280 | 275,926 | ||||||
Assurant, Inc. | 17,790 | 2,016,674 | ||||||
Hartford Financial Services Group, Inc. | 103,328 | 5,954,793 | ||||||
Horace Mann Educators Corp. | 12,327 | 535,485 | ||||||
National General Holdings Corp. | 19,699 | 487,156 | ||||||
|
| |||||||
25,576,069 | ||||||||
|
| |||||||
Property & Casualty Insurance – 8.7% |
| |||||||
Ambac Financial Group, Inc. (a) | 12,889 | 234,838 | ||||||
AMERISAFE, Inc. | 5,798 | 377,218 | ||||||
Arch Capital Group Ltd. (a) | 115,608 | 4,472,874 | ||||||
Argo Group International Holdings Ltd. | 9,859 | 674,750 | ||||||
Assured Guaranty Ltd. | 29,704 | 1,297,768 | ||||||
Axis Capital Holdings Ltd. | 24,738 | 1,575,068 | ||||||
Chubb Ltd. | 131,984 | 20,172,435 | ||||||
Cincinnati Financial Corp. | 44,544 | 4,780,908 |
Shares | Value | |||||||
Donegal Group, Inc. Class A | 4,157 | $ | 61,731 | |||||
EMC Insurance Group, Inc. | 2,669 | 95,924 | ||||||
Employers Holdings, Inc. | 9,869 | 433,249 | ||||||
Erie Indemnity Co. Class A | 7,289 | 1,623,771 | ||||||
Fidelity National Financial, Inc. | 79,048 | 3,389,578 | ||||||
First American Financial Corp. | 32,002 | 1,850,356 | ||||||
Global Indemnity Ltd. | 2,612 | 73,893 | ||||||
HCI Group, Inc. | 2,264 | 90,764 | ||||||
Heritage Insurance Holdings, Inc. | 6,985 | 93,878 | ||||||
James River Group Holdings Ltd. | 8,963 | 428,700 | ||||||
Kemper Corp. | 15,956 | 1,404,447 | ||||||
Kinsale Capital Group, Inc. | 5,828 | 523,704 | ||||||
Loews Corp. | 80,532 | 4,311,683 | ||||||
Markel Corp. (a) | 3,995 | 4,450,150 | ||||||
MBIA, Inc. (a) | 24,255 | 226,299 | ||||||
Mercury General Corp. | 7,986 | 452,886 | ||||||
Old Republic International Corp. | 82,953 | 1,892,158 | ||||||
ProAssurance Corp. | 15,989 | 625,010 | ||||||
Protective Insurance Corp. Class B | 2,546 | 42,136 | ||||||
RLI Corp. | 10,904 | 982,778 | ||||||
Safety Insurance Group, Inc. | 4,164 | 410,820 | ||||||
Selective Insurance Group, Inc. | 17,422 | 1,310,134 | ||||||
State Auto Financial Corp. | 5,088 | 175,943 | ||||||
Stewart Information Services Corp. | 7,136 | 269,955 | ||||||
The Allstate Corp. | 95,438 | 10,250,041 | ||||||
The Hanover Insurance Group, Inc. | 11,703 | 1,517,996 | ||||||
The Progressive Corp. | 168,125 | 13,614,762 | ||||||
The Travelers Cos., Inc. | 75,743 | 11,105,439 | ||||||
United Fire Group, Inc. | 6,063 | 316,913 | ||||||
United Insurance Holdings Corp. | 6,203 | 70,280 | ||||||
Universal Insurance Holdings, Inc. | 9,622 | 238,722 | ||||||
White Mountains Insurance Group Ltd. | 906 | 974,856 | ||||||
WR Berkley Corp. | 42,556 | 2,952,961 | ||||||
|
| |||||||
99,847,776 | ||||||||
|
| |||||||
Reinsurance – 1.0% | ||||||||
Alleghany Corp. (a) | 4,160 | 2,852,637 | ||||||
Enstar Group Ltd. (a) | 3,369 | 596,818 | ||||||
Everest Re Group Ltd. | 11,665 | 2,877,056 | ||||||
Greenlight Capital Re Ltd. (a) | 8,262 | 68,988 | ||||||
Reinsurance Group of America, Inc. | 18,238 | 2,843,669 | ||||||
RenaissanceRe Holdings Ltd. | 12,110 | 2,193,726 | ||||||
Third Point Reinsurance Ltd. (a) | 21,525 | 216,972 | ||||||
|
| |||||||
11,649,866 | ||||||||
|
| |||||||
TOTAL INSURANCE | 235,264,908 | |||||||
|
| |||||||
MORTGAGE REAL ESTATE INVESTMENT TRUSTS |
| |||||||
Mortgage REITs – 1.8% | ||||||||
AG Mortgage Investment Trust, Inc. | 9,691 | 158,545 | ||||||
AGNC Investment Corp. | 154,371 | 2,645,919 | ||||||
Annaly Capital Management, Inc. | 402,772 | 3,846,473 | ||||||
Anworth Mortgage Asset Corp. | 29,722 | 114,430 |
See accompanying notes which are an integral part of the financial statements.
53 | Annual Report |
Table of Contents
Fidelity® MSCI Financials Index ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
MORTGAGE REAL ESTATE INVESTMENT TRUSTS |
| |||||||
Mortgage REITs – continued | ||||||||
Apollo Commercial Real Estate Finance, Inc. | 41,321 | $ | 777,661 | |||||
Ares Commercial Real Estate Corp. | 7,475 | 113,396 | ||||||
Arlington Asset Investment Corp. | 10,375 | 68,268 | ||||||
ARMOUR Residential REIT, Inc. | 16,800 | 300,216 | ||||||
Blackstone Mortgage Trust, Inc. | 33,913 | 1,204,590 | ||||||
Capstead Mortgage Corp. | 24,684 | 208,086 | ||||||
Chimera Investment Corp. | 53,954 | 1,040,233 | ||||||
Colony Credit Real Estate, Inc. | 23,756 | 384,847 | ||||||
Dynex Capital, Inc. | 7,207 | 117,474 | ||||||
Exantas Capital Corp. | 9,323 | 104,324 | ||||||
Granite Point Mortgage Trust, Inc. | 15,051 | 287,474 | ||||||
Invesco Mortgage Capital, Inc. | 36,835 | 607,041 | ||||||
KKR Real Estate Finance Trust, Inc. | 7,686 | 153,951 | ||||||
Ladder Capital Corp. | 25,480 | 428,828 | ||||||
MFA Financial, Inc. | 130,088 | 934,032 | ||||||
New Residential Investment Corp. | 118,080 | 1,852,675 | ||||||
New York Mortgage Trust, Inc. | 66,476 | 406,168 | ||||||
PennyMac Mortgage Investment Trust | 21,665 | 477,280 | ||||||
Ready Capital Corp. | 9,560 | 146,937 | ||||||
Redwood Trust, Inc. | 27,801 | 470,393 | ||||||
Starwood Property Trust, Inc. | 80,273 | 1,864,742 | ||||||
TPG RE Finance Trust, Inc. | 11,414 | 225,427 | ||||||
Two Harbors Investment Corp. | 72,427 | 974,867 | ||||||
Western Asset Mortgage Capital Corp. | 15,158 | 154,005 | ||||||
|
| |||||||
TOTAL MORTGAGE REAL ESTATE INVESTMENT TRUSTS (REITS) |
| 20,068,282 | ||||||
|
| |||||||
THRIFTS & MORTGAGE FINANCE – 1.3% |
| |||||||
Thrifts & Mortgage Finance – 1.3% | ||||||||
Axos Financial, Inc. (a) | 15,832 | 464,036 | ||||||
Capitol Federal Financial, Inc. | 38,201 | 521,826 | ||||||
Columbia Financial, Inc. (a) | 16,715 | 255,572 | ||||||
Dime Community Bancshares, Inc. | 8,774 | 177,059 | ||||||
Essent Group Ltd. (a) | 26,919 | 1,242,581 | ||||||
Federal Agricultural Mortgage Corp. Class C | 2,656 | 205,229 | ||||||
First Defiance Financial Corp. | 6,046 | 173,641 | ||||||
Flagstar Bancorp, Inc. | 8,812 | 303,838 | ||||||
HomeStreet, Inc. (a) | 7,235 | 209,960 | ||||||
Kearny Financial Corp. | 25,509 | 340,545 | ||||||
LendingTree, Inc. (a) | 2,217 | 715,071 |
Shares | Value | |||||||
Luther Burbank Corp. | 6,357 | $ | 70,944 | |||||
Merchants Bancorp | 2,666 | 47,695 | ||||||
Meridian Bancorp, Inc. | 14,944 | 274,073 | ||||||
Meta Financial Group, Inc. | 10,243 | 316,201 | ||||||
MGIC Investment Corp. (a) | 102,668 | 1,319,284 | ||||||
Mr Cooper Group, Inc. (a) | 20,424 | 155,427 | ||||||
New York Community Bancorp, Inc. | 139,766 | 1,611,502 | ||||||
NMI Holdings, Inc. Class A (a) | 19,147 | 476,377 | ||||||
Northfield Bancorp, Inc. | 13,266 | 207,613 | ||||||
Northwest Bancshares, Inc. | 29,136 | 499,682 | ||||||
OceanFirst Financial Corp. | 13,828 | 337,403 | ||||||
Ocwen Financial Corp. (a) | 32,138 | 61,062 | ||||||
Oritani Financial Corp. | 11,652 | 210,901 | ||||||
Provident Financial Services, Inc. | 18,338 | 443,413 | ||||||
Radian Group, Inc. | 61,567 | 1,403,728 | ||||||
Sterling Bancorp, Inc. | 5,130 | 50,377 | ||||||
TFS Financial Corp. | 16,347 | 293,592 | ||||||
TrustCo Bank Corp. | 28,482 | 230,704 | ||||||
United Community Financial Corp. | 14,709 | 149,738 | ||||||
United Financial Bancorp, Inc. | 14,892 | 213,551 | ||||||
Walker & Dunlop, Inc. | 8,525 | 497,349 | ||||||
Washington Federal, Inc. | 23,420 | 856,704 | ||||||
Waterstone Financial, Inc. | 7,613 | 128,660 | ||||||
WSFS Financial Corp. | 14,828 | 628,262 | ||||||
|
| |||||||
TOTAL THRIFTS & MORTGAGE FINANCE | 15,093,600 | |||||||
|
| |||||||
TOTAL COMMON STOCKS | 1,142,578,517 | |||||||
|
| |||||||
Money Market Funds – 0.0% | ||||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 2.16% (c) | 586,000 | 586,000 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES –99.9% |
| 1,143,164,517 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 693,951 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $ | 1,143,858,468 | ||||||
|
|
Legend
(a) | Non-income producing. |
(b) | Level 3 security. |
(c) | The rate quoted is the annualizedseven-day yield of the fund at period end. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 54 |
Table of Contents
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 | $ | 1,142,578,517 | $ | 1,142,576,778 | $ | — | $ | 1,739 | ||||||||
Money Market Funds | 586,000 | 586,000 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 1,143,164,517 | $ | 1,143,162,778 | $ | — | $ | 1,739 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
55 | Annual Report |
Table of Contents
Fidelity® MSCI Health Care Index ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.6% | ||||||||
Shares | Value | |||||||
BIOTECHNOLOGY – 18.5% | ||||||||
Biotechnology – 18.5% | ||||||||
AbbVie, Inc. | 567,022 | $ | 37,775,006 | |||||
Abeona Therapeutics, Inc. (a) | 13,086 | 33,893 | ||||||
ACADIA Pharmaceuticals, Inc. (a) | 41,549 | 1,021,274 | ||||||
Acceleron Pharma, Inc. (a) | 16,969 | 740,867 | ||||||
Achillion Pharmaceuticals, Inc. (a) | 50,703 | 223,600 | ||||||
Acorda Therapeutics, Inc. (a) | 18,340 | 127,096 | ||||||
Aduro Biotech, Inc. (a) | 19,566 | 25,827 | ||||||
Agenus, Inc. (a) | 44,573 | 107,421 | ||||||
Agios Pharmaceuticals, Inc. (a) | 20,395 | 981,203 | ||||||
Aimmune Therapeutics, Inc. (a) | 14,375 | 276,719 | ||||||
Akcea Therapeutics, Inc. (a) | 6,804 | 147,171 | ||||||
Akebia Therapeutics, Inc. (a) | 28,871 | 120,969 | ||||||
Alder Biopharmaceuticals, Inc. (a) | 23,289 | 235,685 | ||||||
Alexion Pharmaceuticals, Inc. (a) | 85,833 | 9,724,021 | ||||||
Alkermes PLC (a) | 59,851 | 1,386,149 | ||||||
Allakos, Inc. (a) | 4,979 | 173,120 | ||||||
Allogene Therapeutics, Inc. (a) | 9,355 | 290,005 | ||||||
Alnylam Pharmaceuticals, Inc. (a) | 36,821 | 2,856,941 | ||||||
AMAG Pharmaceuticals, Inc. (a) | 13,847 | 114,376 | ||||||
Amgen, Inc. | 239,204 | 44,630,682 | ||||||
Amicus Therapeutics, Inc. (a) | 86,135 | 1,068,074 | ||||||
AnaptysBio, Inc. (a) | 9,352 | 502,296 | ||||||
Anika Therapeutics, Inc. (a) | 5,598 | 308,394 | ||||||
Apellis Pharmaceuticals, Inc. (a) | 16,804 | 469,336 | ||||||
Arcus Biosciences, Inc. (a) | 9,308 | 73,626 | ||||||
Arena Pharmaceuticals, Inc. (a) | 19,042 | 1,193,553 | ||||||
ArQule, Inc. (a) | 36,766 | 370,969 | ||||||
Arrowhead Pharmaceuticals, Inc. (a) | 32,645 | 948,664 | ||||||
Assembly Biosciences, Inc. (a) | 9,446 | 118,075 | ||||||
Atara Biotherapeutics, Inc. (a) | 18,348 | 261,826 | ||||||
Athenex, Inc. (a) | 17,758 | 319,644 | ||||||
Audentes Therapeutics, Inc. (a) | 14,184 | 552,041 | ||||||
Avrobio, Inc. (a) | 8,191 | 173,813 | ||||||
BioCryst Pharmaceuticals, Inc. (a) | 29,304 | 92,894 | ||||||
Biogen, Inc. (a) | 75,554 | 17,968,252 | ||||||
Biohaven Pharmaceutical Holding Co. | 16,682 | 717,993 | ||||||
BioMarin Pharmaceutical, Inc. (a) | 68,400 | 5,425,488 | ||||||
BioSpecifics Technologies Corp. (a) | 2,080 | 120,848 | ||||||
Bluebird Bio, Inc. (a) | 21,009 | 2,757,011 | ||||||
Blueprint Medicines Corp. (a) | 16,131 | 1,615,520 | ||||||
Calyxt, Inc. (a) | 3,776 | 35,079 | ||||||
CareDx, Inc. (a) | 14,343 | 470,020 | ||||||
Catalyst Pharmaceuticals, Inc. (a) | 35,602 | 177,654 | ||||||
Celgene Corp. (a) | 269,696 | 24,774,275 | ||||||
ChemoCentryx, Inc. (a) | 9,940 | 79,321 | ||||||
Clovis Oncology, Inc. (a) | 17,303 | 182,547 | ||||||
Coherus Biosciences, Inc. (a) | 19,644 | 330,412 | ||||||
Crinetics Pharmaceuticals, Inc. (a) | 3,711 | 75,259 |
Shares | Value | |||||||
CRISPR Therapeutics AG (a) | 10,065 | $ | 510,195 | |||||
Cyclerion Therapeutics, Inc. (a) | 5,440 | 50,538 | ||||||
Cytokinetics, Inc. (a) | 18,626 | 227,051 | ||||||
CytomX Therapeutics, Inc. (a) | 18,179 | 187,425 | ||||||
Deciphera Pharmaceuticals, Inc. (a) | 4,603 | 101,726 | ||||||
Denali Therapeutics, Inc. (a) | 23,969 | 511,738 | ||||||
Dicerna Pharmaceuticals, Inc. (a) | 18,652 | 254,227 | ||||||
Dynavax Technologies Corp. (a) | 24,570 | 67,813 | ||||||
Eagle Pharmaceuticals, Inc. (a) | 4,484 | 245,992 | ||||||
Editas Medicine, Inc. (a) | 16,568 | 418,342 | ||||||
Eidos Therapeutics, Inc. (a) | 2,830 | 92,201 | ||||||
Emergent BioSolutions, Inc. (a) | 16,757 | 739,654 | ||||||
Enanta Pharmaceuticals, Inc. (a) | 5,675 | 425,738 | ||||||
Epizyme, Inc. (a) | 27,520 | 364,915 | ||||||
Esperion Therapeutics, Inc. (a) | 9,444 | 374,832 | ||||||
Exact Sciences Corp. (a) | 48,304 | 5,560,273 | ||||||
Exelixis, Inc. (a) | 115,293 | 2,452,282 | ||||||
Fate Therapeutics, Inc. (a) | 19,697 | 434,319 | ||||||
FibroGen, Inc. (a) | 29,744 | 1,405,701 | ||||||
Five Prime Therapeutics, Inc. (a) | 11,614 | 59,348 | ||||||
Flexion Therapeutics, Inc. (a) | 13,373 | 134,265 | ||||||
Forty Seven, Inc. (a) | 9,375 | 83,438 | ||||||
G1 Therapeutics, Inc. (a) | 10,022 | 248,646 | ||||||
Genomic Health, Inc. (a) | 9,946 | 725,760 | ||||||
Geron Corp. (a) | 75,567 | 90,680 | ||||||
Gilead Sciences, Inc. | 490,306 | 32,124,849 | ||||||
Global Blood Therapeutics, Inc. (a) | 21,686 | 1,188,393 | ||||||
GlycoMimetics, Inc. (a) | 14,081 | 129,968 | ||||||
Gossamer Bio, Inc. (a) | 7,609 | 151,039 | ||||||
Halozyme Therapeutics, Inc. (a) | 50,786 | 862,854 | ||||||
Heron Therapeutics, Inc. (a) | 28,597 | 498,732 | ||||||
Homology Medicines, Inc. (a) | 7,445 | 132,372 | ||||||
ImmunoGen, Inc. (a) | 57,738 | 129,911 | ||||||
Immunomedics, Inc. (a) | 58,820 | 867,595 | ||||||
Incyte Corp. (a) | 69,773 | 5,925,123 | ||||||
Inovio Pharmaceuticals, Inc. (a) | 36,574 | 100,944 | ||||||
Insmed, Inc. (a) | 31,879 | 699,744 | ||||||
Intellia Therapeutics, Inc. (a) | 12,189 | 220,621 | ||||||
Intercept Pharmaceuticals, Inc. (a) | 9,134 | 574,072 | ||||||
Intrexon Corp. (a) | 23,776 | 189,970 | ||||||
Invitae Corp. (a) | 31,442 | 845,475 | ||||||
Ionis Pharmaceuticals, Inc. (a) | 50,500 | 3,325,930 | ||||||
Iovance Biotherapeutics, Inc. (a) | 40,345 | 992,084 | ||||||
Ironwood Pharmaceuticals, Inc. (a) | 59,543 | 632,942 | ||||||
KalVista Pharmaceuticals, Inc. (a) | 3,648 | 60,520 | ||||||
Karyopharm Therapeutics, Inc. (a) | 18,616 | 164,007 | ||||||
Kiniksa Pharmaceuticals Ltd. | 4,026 | 47,507 | ||||||
Krystal Biotech, Inc. (a) | 4,234 | 203,274 | ||||||
Kura Oncology, Inc. (a) | 12,663 | 242,117 | ||||||
Lexicon Pharmaceuticals, Inc. (a) | 18,968 | 25,607 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 56 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
BIOTECHNOLOGY – continued | ||||||||
Biotechnology – continued | ||||||||
Ligand Pharmaceuticals, Inc. (a) | 7,872 | $ | 720,367 | |||||
MacroGenics, Inc. (a) | 18,250 | 262,617 | ||||||
Madrigal Pharmaceuticals, Inc. (a) | 3,265 | 285,002 | ||||||
MeiraGTx Holdings PLC (a) | 5,135 | 139,929 | ||||||
Minerva Neurosciences, Inc. (a) | 14,673 | 97,429 | ||||||
Mirati Therapeutics, Inc. (a) | 8,826 | 933,791 | ||||||
Momenta Pharmaceuticals, Inc. (a) | 36,134 | 408,314 | ||||||
Myovant Sciences Ltd. (a) | 15,158 | 109,138 | ||||||
Myriad Genetics, Inc. (a) | 27,845 | 811,403 | ||||||
Natera, Inc. (a) | 16,663 | 459,566 | ||||||
Neurocrine Biosciences, Inc. (a) | 34,946 | 3,368,445 | ||||||
Novavax, Inc. (a) | 10,043 | 43,285 | ||||||
Opko Health, Inc. (a) | 128,122 | 270,337 | ||||||
PDL BioPharma, Inc. (a) | 58,225 | 167,688 | ||||||
Portola Pharmaceuticals, Inc. (a) | 23,021 | 614,200 | ||||||
Principia Biopharma, Inc. (a) | 3,216 | 119,442 | ||||||
Progenics Pharmaceuticals, Inc. (a) | 31,812 | 171,149 | ||||||
Prothena Corp. PLC (a) | 15,497 | 145,052 | ||||||
PTC Therapeutics, Inc. (a) | 20,019 | 964,315 | ||||||
Puma Biotechnology, Inc. (a) | 11,586 | 111,805 | ||||||
Ra Pharmaceuticals, Inc. (a) | 10,349 | 352,280 | ||||||
Radius Health, Inc. (a) | 16,657 | 357,459 | ||||||
Regeneron Pharmaceuticals, Inc. (a) | 30,927 | 9,425,313 | ||||||
REGENXBIO, Inc. (a) | 12,783 | 567,693 | ||||||
Repligen Corp. (a) | 15,198 | 1,434,539 | ||||||
Retrophin, Inc. (a) | 14,869 | 294,258 | ||||||
Rhythm Pharmaceuticals, Inc. (a) | 7,342 | 141,333 | ||||||
Rigel Pharmaceuticals, Inc. (a) | 67,742 | 154,452 | ||||||
Rocket Pharmaceuticals, Inc. (a) | 11,458 | 139,558 | ||||||
Rubius Therapeutics, Inc. (a) | 12,297 | 163,550 | ||||||
Sage Therapeutics, Inc. (a) | 19,608 | 3,143,947 | ||||||
Sangamo Therapeutics, Inc. (a) | 43,499 | 522,423 | ||||||
Sarepta Therapeutics, Inc. (a) | 26,077 | 3,881,561 | ||||||
Scholar Rock Holding Corp. (a) | 7,299 | 89,705 | ||||||
Seattle Genetics, Inc. (a) | 43,196 | 3,270,369 | ||||||
Solid Biosciences, Inc. (a) | 6,056 | 34,701 | ||||||
Sorrento Therapeutics, Inc. (a) | 38,571 | 103,756 | ||||||
Spark Therapeutics, Inc. (a) | 13,211 | 1,321,364 | ||||||
Spectrum Pharmaceuticals, Inc. (a) | 38,546 | 292,179 | ||||||
Stemline Therapeutics, Inc. (a) | 13,317 | 176,717 | ||||||
TG Therapeutics, Inc. (a) | 29,063 | 217,682 | ||||||
The Medicines Co. (a) | 28,592 | 1,024,737 | ||||||
Twist Bioscience Corp. (a) | 2,158 | 72,768 | ||||||
Ultragenyx Pharmaceutical, Inc. (a) | 20,414 | 1,230,148 | ||||||
uniQure N.V. (a) | 10,874 | 637,760 | ||||||
United Therapeutics Corp. (a) | 16,908 | 1,339,790 | ||||||
Vanda Pharmaceuticals, Inc. (a) | 18,242 | 227,113 | ||||||
Veracyte, Inc. (a) | 12,662 | 359,221 | ||||||
Vericel Corp. (a) | 16,459 | 314,696 |
Shares | Value | |||||||
Vertex Pharmaceuticals, Inc. (a) | 98,284 | $ | 16,376,080 | |||||
Viking Therapeutics, Inc. (a) | 25,834 | 198,663 | ||||||
Voyager Therapeutics, Inc. (a) | 9,419 | 207,312 | ||||||
Xencor, Inc. (a) | 19,770 | 870,275 | ||||||
Y-mAbs Therapeutics, Inc. (a) | 2,633 | 58,900 | ||||||
ZIOPHARM Oncology, Inc. (a) | 52,736 | 365,988 | ||||||
|
| |||||||
TOTAL BIOTECHNOLOGY | 287,849,222 | |||||||
|
| |||||||
HEALTH CARE EQUIPMENT & SUPPLIES – 25.6% |
| |||||||
Health Care Equipment – 23.6% | ||||||||
Abbott Laboratories | 674,964 | 58,789,364 | ||||||
ABIOMED, Inc. (a) | 17,359 | 4,835,523 | ||||||
Accuray, Inc. (a) | 33,862 | 140,189 | ||||||
AngioDynamics, Inc. (a) | 14,149 | 288,357 | ||||||
AtriCure, Inc. (a) | 14,834 | 475,875 | ||||||
AxoGen, Inc. (a) | 13,496 | 242,658 | ||||||
Axonics Modulation Technologies, | 3,752 | 137,698 | ||||||
Baxter International, Inc. | 187,212 | 15,720,192 | ||||||
Becton Dickinson and Co. | 103,346 | 26,125,869 | ||||||
Boston Scientific Corp. (a) | 532,714 | 22,619,036 | ||||||
Cantel Medical Corp. | 14,550 | 1,342,674 | ||||||
Cardiovascular Systems, Inc. (a) | 13,378 | 613,114 | ||||||
CONMED Corp. | 10,839 | 946,787 | ||||||
CryoLife, Inc. (a) | 14,254 | 410,800 | ||||||
Danaher Corp. | 242,608 | 34,086,424 | ||||||
DexCom, Inc. (a) | 34,653 | 5,436,016 | ||||||
Edwards Lifesciences Corp. (a) | 79,884 | 17,003,309 | ||||||
GenMark Diagnostics, Inc. (a) | 18,097 | 113,287 | ||||||
Glaukos Corp. (a) | 13,226 | 1,080,300 | ||||||
Globus Medical, Inc. Class A (a) | 29,298 | 1,335,403 | ||||||
Heska Corp. (a) | 2,901 | 232,486 | ||||||
Hill-Rom Holdings, Inc. | 25,668 | 2,737,235 | ||||||
Hologic, Inc. (a) | 102,771 | 5,267,014 | ||||||
IDEXX Laboratories, Inc. (a) | 33,086 | 9,331,906 | ||||||
Inogen, Inc. (a) | 7,077 | 435,235 | ||||||
Insulet Corp. (a) | 22,863 | 2,810,777 | ||||||
Integer Holdings Corp. (a) | 12,520 | 1,095,876 | ||||||
Integra LifeSciences Holdings Corp. (a) | 28,031 | 1,776,885 | ||||||
Intuitive Surgical, Inc. (a) | 44,005 | 22,861,038 | ||||||
iRhythm Technologies, Inc. (a) | 9,311 | 774,117 | ||||||
LeMaitre Vascular, Inc. | 6,319 | 209,096 | ||||||
LivaNova PLC (a) | 18,696 | 1,440,527 | ||||||
Masimo Corp. (a) | 19,455 | 3,070,972 | ||||||
Medtronic PLC | 515,153 | 52,514,697 | ||||||
Mesa Laboratories, Inc. | 1,332 | 335,238 | ||||||
Natus Medical, Inc. (a) | 13,214 | 410,559 | ||||||
Nevro Corp. (a) | 11,696 | 781,995 | ||||||
Novocure Ltd. (a) | 29,261 | 2,435,100 | ||||||
NuVasive, Inc. (a) | 19,966 | 1,329,736 | ||||||
Orthofix Medical, Inc. (a) | 7,368 | 393,820 |
See accompanying notes which are an integral part of the financial statements.
57 | Annual Report |
Table of Contents
Fidelity® MSCI Health Care Index ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE EQUIPMENT & SUPPLIES – continued |
| |||||||
Health Care Equipment – continued |
| |||||||
Penumbra, Inc. (a) | 12,042 | $ | 2,018,239 | |||||
ResMed, Inc. | 55,109 | 7,092,528 | ||||||
Steris PLC | 32,490 | 4,836,461 | ||||||
Stryker Corp. | 128,902 | 27,041,062 | ||||||
Surmodics, Inc. (a) | 5,262 | 219,425 | ||||||
Tactile Systems Technology, Inc. (a) | 6,456 | 372,769 | ||||||
Tandem Diabetes Care, Inc. (a) | 19,961 | 1,266,126 | ||||||
Teleflex, Inc. | 17,702 | 6,014,077 | ||||||
TransEnterix, Inc. (a) | 69,349 | 95,008 | ||||||
Varex Imaging Corp. (a) | 14,824 | 471,255 | ||||||
Varian Medical Systems, Inc. (a) | 34,954 | 4,102,551 | ||||||
ViewRay, Inc. (a) | 22,525 | 201,824 | ||||||
Wright Medical Group N.V. (a) | 46,084 | 1,329,984 | ||||||
Zimmer Biomet Holdings, Inc. | 78,656 | 10,628,785 | ||||||
|
| |||||||
367,677,278 | ||||||||
|
| |||||||
Health Care Supplies – 2.0% | ||||||||
Align Technology, Inc. (a) | 29,187 | 6,102,418 | ||||||
Antares Pharma, Inc. (a) | 59,209 | 188,877 | ||||||
Atrion Corp. | 569 | 437,846 | ||||||
Avanos Medical, Inc. (a) | 18,288 | 744,687 | ||||||
Cerus Corp. (a) | 52,000 | 304,200 | ||||||
DENTSPLY SIRONA, Inc. | 85,612 | 4,661,573 | ||||||
Haemonetics Corp. (a) | 19,639 | 2,397,529 | ||||||
ICU Medical, Inc. (a) | 7,495 | 1,907,028 | ||||||
Lantheus Holdings, Inc. (a) | 15,080 | 341,110 | ||||||
Meridian Bioscience, Inc. | 16,382 | 195,765 | ||||||
Merit Medical Systems, Inc. (a) | 21,201 | 836,591 | ||||||
Neogen Corp. (a) | 19,986 | 1,427,000 | ||||||
OraSure Technologies, Inc. (a) | 23,418 | 195,540 | ||||||
OrthoPediatrics Corp. (a) | 3,392 | 119,772 | ||||||
Quidel Corp. (a) | 13,678 | 807,412 | ||||||
Quotient Ltd. (a) | 20,031 | 211,527 | ||||||
Rockwell Medical, Inc. (a) | 19,146 | 50,928 | ||||||
Senseonics Holdings, Inc. (a) | 40,906 | 45,406 | ||||||
STAAR Surgical Co. (a) | 12,619 | 369,863 | ||||||
The Cooper Cos., Inc. | 18,974 | 6,401,828 | ||||||
West Pharmaceutical Services, Inc. | 28,547 | 3,918,647 | ||||||
|
| |||||||
31,665,547 | ||||||||
|
| |||||||
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES |
| 399,342,825 | ||||||
|
| |||||||
HEALTH CARE PROVIDERS & SERVICES – 18.6% |
| |||||||
Health Care Distributors – 1.7% | ||||||||
AmerisourceBergen Corp. | 60,805 | 5,299,156 | ||||||
Cardinal Health, Inc. | 114,297 | 5,226,802 | ||||||
Covetrus, Inc. (a) | 38,532 | 912,053 | ||||||
Henry Schein, Inc. (a) | 58,295 | 3,878,949 | ||||||
McKesson Corp. | 73,679 | 10,237,697 | ||||||
Patterson Cos., Inc. | 32,719 | 647,836 |
Shares | Value | |||||||
PetIQ, Inc. (a) | 7,192 | $ | 246,254 | |||||
|
| |||||||
26,448,747 | ||||||||
|
| |||||||
Health Care Facilities – 1.8% | ||||||||
Acadia Healthcare Co., Inc. (a) | 33,862 | 1,081,552 | ||||||
Brookdale Senior Living, Inc. (a) | 64,662 | 503,717 | ||||||
Community Health Systems, Inc. (a) | 32,445 | 66,512 | ||||||
Encompass Health Corp. | 38,018 | 2,427,069 | ||||||
Hanger, Inc. (a) | 12,901 | 222,542 | ||||||
HCA Healthcare, Inc. | 105,203 | 14,045,653 | ||||||
National HealthCare Corp. | 4,405 | 385,878 | ||||||
Select Medical Holdings Corp. (a) | 44,268 | 741,046 | ||||||
Surgery Partners, Inc. (a) | 7,530 | 57,454 | ||||||
Tenet Healthcare Corp. (a) | 33,601 | 791,976 | ||||||
The Ensign Group, Inc. | 19,284 | 1,162,054 | ||||||
Universal Health Services, Inc. Class B | 32,161 | 4,851,808 | ||||||
US Physical Therapy, Inc. | 4,950 | 638,946 | ||||||
|
| |||||||
26,976,207 | ||||||||
|
| |||||||
Health Care Services – 5.1% | ||||||||
Addus HomeCare Corp. (a) | 4,287 | 345,489 | ||||||
Amedisys, Inc. (a) | 12,325 | 1,699,494 | ||||||
AMN Healthcare Services, Inc. (a) | 18,060 | 964,043 | ||||||
Apollo Medical Holdings, Inc. (a) | 9,554 | 146,176 | ||||||
BioTelemetry, Inc. (a) | 12,880 | 604,716 | ||||||
Chemed Corp. | 6,166 | 2,499,635 | ||||||
Cigna Corp. | 145,978 | 24,804,582 | ||||||
CorVel Corp. (a) | 4,067 | 346,508 | ||||||
Cross Country Healthcare, Inc. (a) | 13,859 | 131,522 | ||||||
CVS Health Corp. | 498,598 | 27,856,670 | ||||||
DaVita, Inc. (a) | 48,052 | 2,875,912 | ||||||
Diplomat Pharmacy, Inc. (a) | 22,940 | 120,894 | ||||||
Guardant Health, Inc. (a) | 6,604 | 620,710 | ||||||
Laboratory Corp. of America | 37,918 | 6,352,023 | ||||||
LHC Group, Inc. (a) | 11,476 | 1,452,632 | ||||||
MEDNAX, Inc. (a) | 33,832 | 831,252 | ||||||
National Research Corp. Class A | 4,775 | 321,931 | ||||||
Premier, Inc. Class A (a) | 24,569 | 952,049 | ||||||
Quest Diagnostics, Inc. | 51,619 | 5,269,268 | ||||||
R1 RCM, Inc. (a) | 34,693 | 436,438 | ||||||
RadNet, Inc. (a) | 16,731 | 246,448 | ||||||
The Providence Service Corp. (a) | 4,564 | 254,397 | ||||||
Tivity Health, Inc. (a) | 18,234 | 318,183 | ||||||
|
| |||||||
79,450,972 | ||||||||
|
| |||||||
Managed Health Care – 10.0% | ||||||||
Anthem, Inc. | 98,771 | 29,098,924 | ||||||
Centene Corp. (a) | 158,656 | 8,264,391 | ||||||
HealthEquity, Inc. (a) | 26,561 | 2,177,471 | ||||||
Humana, Inc. | 52,071 | 15,452,069 | ||||||
Magellan Health, Inc. (a) | 8,020 | 564,127 | ||||||
Molina Healthcare, Inc. (a) | 22,718 | 3,016,496 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 58 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE PROVIDERS & SERVICES – continued |
| |||||||
Managed Health Care – continued | ||||||||
Triple-S Management Corp. | 8,753 | $ | 209,900 | |||||
UnitedHealth Group, Inc. | 368,847 | 91,846,592 | ||||||
WellCare Health Plans, Inc. (a) | 19,249 | 5,529,275 | ||||||
156,159,245 | ||||||||
|
| |||||||
TOTAL HEALTH CARE PROVIDERS & SERVICES |
| 289,035,171 | ||||||
|
| |||||||
HEALTH CARE TECHNOLOGY – 1.7% |
| |||||||
Health Care Technology – 1.7% | ||||||||
Allscripts Healthcare Solutions, Inc. (a) | 64,685 | 666,256 | ||||||
Castlight Health, Inc. Class B (a) | 33,321 | 53,647 | ||||||
Cerner Corp. | 124,773 | 8,939,985 | ||||||
Computer Programs & Systems, Inc. | 5,463 | 141,000 | ||||||
Evolent Health, Inc. Class A (a) | 27,147 | 185,143 | ||||||
HealthStream, Inc. (a) | 9,826 | 277,486 | ||||||
HMS Holdings Corp. (a) | 32,921 | 1,148,943 | ||||||
Inovalon Holdings, Inc. Class A (a) | 24,290 | 364,350 | ||||||
Inspire Medical Systems, Inc. (a) | 4,512 | 305,147 | ||||||
Medidata Solutions, Inc. (a) | 23,577 | 2,154,230 | ||||||
NextGen Healthcare, Inc. (a) | 18,884 | 308,942 | ||||||
Omnicell, Inc. (a) | 15,709 | 1,181,474 | ||||||
Tabula Rasa HealthCare, Inc. (a) | 6,758 | 407,305 | ||||||
Teladoc Health, Inc. (a) | 25,885 | 1,766,392 | ||||||
Veeva Systems, Inc. Class A (a) | 48,140 | 7,986,426 | ||||||
Vocera Communications, Inc. (a) | 11,861 | 304,472 | ||||||
|
| |||||||
TOTAL HEALTH CARE TECHNOLOGY |
| 26,191,198 | ||||||
|
| |||||||
LIFE SCIENCES TOOLS & SERVICES – 7.2% |
| |||||||
Life Sciences Tools & Services – 7.2% |
| |||||||
Accelerate Diagnostics, Inc. (a) | 11,804 | 220,499 | ||||||
Agilent Technologies, Inc. | 122,183 | 8,480,722 | ||||||
Bio-Rad Laboratories, Inc. Class A (a) | 8,135 | 2,561,712 | ||||||
Bio-Techne Corp. | 14,560 | 3,059,784 | ||||||
Bruker Corp. | 42,198 | 2,019,174 | ||||||
Cambrex Corp. (a) | 13,167 | 576,715 | ||||||
Charles River Laboratories | ||||||||
International, Inc. (a) | 18,597 | 2,502,040 | ||||||
Codexis, Inc. (a) | 19,758 | 362,955 | ||||||
Fluidigm Corp. (a) | 26,563 | 312,115 | ||||||
Illumina, Inc. (a) | 56,506 | 16,916,766 | ||||||
IQVIA Holdings, Inc. (a) | 64,678 | 10,294,797 | ||||||
Luminex Corp. | 15,842 | 344,247 | ||||||
Medpace Holdings, Inc. (a) | 10,993 | 865,809 | ||||||
Mettler-Toledo International, Inc. (a) | 9,523 | 7,206,530 | ||||||
NanoString Technologies, Inc. (a) | 12,469 | 409,731 | ||||||
NeoGenomics, Inc. (a) | 34,492 | 840,570 | ||||||
Pacific Biosciences of California, Inc. (a) | 49,406 | 266,792 | ||||||
PerkinElmer, Inc. | 42,585 | 3,667,420 |
Shares | Value | |||||||
PRA Health Sciences, Inc. (a) | 22,718 | $ | 2,269,755 | |||||
Quanterix Corp. (a) | 3,419 | 105,921 | ||||||
Syneos Health, Inc. (a) | 23,970 | 1,224,627 | ||||||
Thermo Fisher Scientific, Inc. | 153,326 | 42,575,564 | ||||||
Waters Corp. (a) | 27,496 | 5,789,558 | ||||||
|
| |||||||
TOTAL LIFE SCIENCES TOOLS & SERVICES |
| 112,873,803 | ||||||
|
| |||||||
PHARMACEUTICALS – 28.0% |
| |||||||
Pharmaceuticals – 28.0% | ||||||||
Aerie Pharmaceuticals, Inc. (a) | 16,635 | 360,480 | ||||||
Akorn, Inc. (a) | 35,856 | 133,384 | ||||||
Allergan PLC | 127,755 | 20,504,677 | ||||||
Amneal Pharmaceuticals, Inc. (a) | 35,445 | 129,729 | ||||||
Amphastar Pharmaceuticals, Inc. (a) | 13,846 | 278,997 | ||||||
ANI Pharmaceuticals, Inc. (a) | 3,398 | 287,437 | ||||||
Arvinas Holding Co. LLC (a) | 4,356 | 116,218 | ||||||
Assertio Therapeutics, Inc. (a) | 28,236 | 96,849 | ||||||
Axsome Therapeutics, Inc. (a) | 8,970 | 228,735 | ||||||
Bristol-Myers Squibb Co. | 627,601 | 27,871,760 | ||||||
Cara Therapeutics, Inc. (a) | 15,550 | 372,267 | ||||||
Catalent, Inc. (a) | 56,073 | 3,167,564 | ||||||
Collegium Pharmaceutical, Inc. (a) | 10,259 | 112,541 | ||||||
Corcept Therapeutics, Inc. (a) | 40,485 | 455,861 | ||||||
Cymabay Therapeutics, Inc. (a) | 23,421 | 144,742 | ||||||
Dermira, Inc. (a) | 16,974 | 149,541 | ||||||
Elanco Animal Health, Inc. (a) | 107,509 | 3,543,497 | ||||||
Eli Lilly & Co. | 343,476 | 37,421,710 | ||||||
Endo International PLC (a) | 77,350 | 245,199 | ||||||
Evolus, Inc. (a) | 4,726 | 83,886 | ||||||
Horizon Therapeutics PLC (a) | 65,309 | 1,625,541 | ||||||
Innoviva, Inc. (a) | 27,228 | 323,469 | ||||||
Intersect ENT, Inc. (a) | 11,765 | 232,594 | ||||||
Intra-Cellular Therapies, Inc. (a) | 17,966 | 150,016 | ||||||
Jazz Pharmaceuticals PLC (a) | 21,968 | 3,061,900 | ||||||
Johnson & Johnson | 1,023,710 | 133,307,516 | ||||||
Mallinckrodt PLC (a) | 32,064 | 218,356 | ||||||
Merck & Co., Inc. | 992,221 | 82,344,421 | ||||||
Mylan N.V. (a) | 197,614 | 4,130,133 | ||||||
MyoKardia, Inc. (a) | 16,496 | 897,877 | ||||||
Nektar Therapeutics (a) | 66,723 | 1,898,937 | ||||||
Odonate Therapeutics, Inc. (a) | 5,449 | 222,047 | ||||||
Omeros Corp. (a) | 18,383 | 285,120 | ||||||
Optinose, Inc. (a) | 6,350 | 34,100 | ||||||
Pacira BioSciences, Inc. (a) | 14,247 | 625,301 | ||||||
Perrigo Co. PLC | 49,590 | 2,678,356 | ||||||
Pfizer, Inc. | 2,134,113 | 82,888,949 | ||||||
Phibro Animal Health Corp. Class A | 8,068 | 251,157 | ||||||
Prestige Consumer Healthcare, Inc. (a) | 19,826 | 685,980 | ||||||
Reata Pharmaceuticals, Inc. Class A (a) | 7,436 | 674,073 | ||||||
Revance Therapeutics, Inc. (a) | 15,899 | 200,009 |
See accompanying notes which are an integral part of the financial statements.
59 | Annual Report |
Table of Contents
Fidelity® MSCI Health Care Index ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
PHARMACEUTICALS – continued | ||||||||
Pharmaceuticals – continued | ||||||||
Supernus Pharmaceuticals, Inc. (a) | 20,379 | $ | 680,047 | |||||
TherapeuticsMD, Inc. (a) | 78,737 | 169,285 | ||||||
Theravance Biopharma, Inc. (a) | 16,001 | 333,621 | ||||||
Tricida, Inc. (a) | 7,419 | 234,144 | ||||||
WaVe Life Sciences Ltd. (a) | 7,009 | 150,063 | ||||||
Zoetis, Inc. | 184,032 | 21,143,436 | ||||||
Zogenix, Inc. (a) | 15,351 | 739,458 | ||||||
|
| |||||||
TOTAL PHARMACEUTICALS | 435,890,980 | |||||||
|
| |||||||
TOTAL COMMON STOCKS | 1,551,183,199 | |||||||
|
| |||||||
Money Market Funds – 0.3% | ||||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 2.16% (b) | 4,833,000 | 4,833,000 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 99.9% |
| 1,556,016,199 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 1,236,264 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $ | 1,557,252,463 | ||||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualizedseven-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 | 60 |
Table of Contents
Fidelity® MSCI Industrials Index ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
AEROSPACE & DEFENSE – 24.2% | ||||||||
Aerospace & Defense – 24.2% | ||||||||
AAR Corp. | 5,184 | $ | 217,002 | |||||
Aerojet Rocketdyne Holdings, | 10,924 | 466,673 | ||||||
Aerovironment, Inc. (a) | 3,313 | 181,718 | ||||||
Arconic, Inc. | 67,472 | 1,689,499 | ||||||
Astronics Corp. (a) | 3,381 | 124,556 | ||||||
Axon Enterprise, Inc. (a) | 9,068 | 636,755 | ||||||
BWX Technologies, Inc. | 14,627 | 788,542 | ||||||
Cubic Corp. | 4,572 | 302,666 | ||||||
Curtiss-Wright Corp. | 6,266 | 795,218 | ||||||
Ducommun, Inc. (a) | 1,675 | 70,601 | ||||||
General Dynamics Corp. | 37,853 | 7,038,387 | ||||||
HEICO Corp. | 6,599 | 902,413 | ||||||
HEICO Corp. Class A | 11,694 | 1,232,431 | ||||||
Hexcel Corp. | 13,083 | 1,069,666 | ||||||
Huntington Ingalls Industries, Inc. | 6,423 | 1,466,371 | ||||||
Kratos Defense & Security Solutions, Inc. (a) | 13,574 | 334,599 | ||||||
L3Harris Technologies, Inc. | 34,159 | 7,091,408 | ||||||
Lockheed Martin Corp. | 39,285 | 14,227,849 | ||||||
Mercury Systems, Inc. (a) | 8,397 | 684,523 | ||||||
Moog, Inc. Class A | 5,030 | 409,744 | ||||||
National Presto Industries, Inc. | 733 | 67,414 | ||||||
Northrop Grumman Corp. | 24,911 | 8,608,494 | ||||||
Park Aerospace Corp. | 2,832 | 51,514 | ||||||
Raytheon Co. | 43,605 | 7,948,756 | ||||||
Spirit AeroSystems Holdings, Inc. Class A | 16,310 | 1,253,260 | ||||||
Teledyne Technologies, Inc. (a) | 5,601 | 1,631,459 | ||||||
Textron, Inc. | 36,270 | 1,788,111 | ||||||
The Boeing Co. | 82,914 | 28,288,599 | ||||||
TransDigm Group, Inc. (a) | 7,351 | 3,568,469 | ||||||
Triumph Group, Inc. | 7,637 | 185,045 | ||||||
United Technologies Corp. | 126,465 | 16,895,724 | ||||||
Wesco Aircraft Holdings, Inc. (a) | 8,622 | 90,790 | ||||||
|
| |||||||
TOTAL AEROSPACE & DEFENSE |
| 110,108,256 | ||||||
|
| |||||||
AIR FREIGHT & LOGISTICS – 5.5% |
| |||||||
Air Freight & Logistics – 5.5% | ||||||||
Air Transport Services Group, | 2,270 | 52,914 | ||||||
Atlas Air Worldwide Holdings, | 955 | 43,596 | ||||||
CH Robinson Worldwide, Inc. | 21,154 | 1,771,224 | ||||||
Echo Global Logistics, Inc. (a) | 4,381 | 92,264 | ||||||
Expeditors International of Washington, Inc. | 26,529 | 2,025,489 | ||||||
FedEx Corp. | 38,320 | 6,534,710 | ||||||
Forward Air Corp. | 4,421 | 278,523 | ||||||
Hub Group, Inc. Class A (a) | 5,172 | 234,550 | ||||||
United Parcel Service, Inc. Class B | 107,515 | 12,844,817 |
Shares | Value | |||||||
XPO Logistics, Inc. (a) | 16,836 | $ | 1,136,093 | |||||
|
| |||||||
TOTAL AIR FREIGHT & LOGISTICS |
| 25,014,180 | ||||||
|
| |||||||
AIRLINES – 1.0% |
| |||||||
Airlines – 1.0% | ||||||||
Allegiant Travel Co. | 629 | 94,256 | ||||||
American Airlines Group, Inc. | 17,311 | 528,158 | ||||||
Delta Air Lines, Inc. | 26,246 | 1,602,056 | ||||||
Hawaiian Holdings, Inc. | 1,939 | 50,394 | ||||||
SkyWest, Inc. | 1,979 | 120,145 | ||||||
Southwest Airlines Co. | 21,302 | 1,097,692 | ||||||
Spirit Airlines, Inc. (a) | 2,665 | 113,076 | ||||||
United Airlines Holdings, Inc. (a) | 10,281 | 944,927 | ||||||
|
| |||||||
TOTAL AIRLINES |
| 4,550,704 | ||||||
|
| |||||||
BUILDING PRODUCTS – 4.1% |
| |||||||
Building Products – 4.1% | ||||||||
AAON, Inc. | 6,455 | 327,914 | ||||||
Advanced Drainage Systems, Inc. | 6,608 | 217,601 | ||||||
Allegion PLC | 14,606 | 1,512,305 | ||||||
American Woodmark Corp. (a) | 2,342 | 198,719 | ||||||
AO Smith Corp. | 21,864 | 993,719 | ||||||
Apogee Enterprises, Inc. | 3,979 | 161,388 | ||||||
Armstrong Flooring, Inc. (a) | 2,499 | 20,892 | ||||||
Armstrong World Industries, Inc. | 7,105 | 694,230 | ||||||
Builders FirstSource, Inc. (a) | 17,833 | 306,371 | ||||||
Continental Building Products, Inc. (a) | 5,489 | 134,920 | ||||||
Cornerstone Building Brands, Inc. (a) | 10,687 | 62,198 | ||||||
CSW Industrials, Inc. | 2,306 | 162,827 | ||||||
Fortune Brands Home & Security, Inc. | 21,746 | 1,194,725 | ||||||
Gibraltar Industries, Inc. (a) | 4,908 | 203,388 | ||||||
Griffon Corp. | 5,770 | 94,339 | ||||||
Insteel Industries, Inc. | 2,924 | 57,047 | ||||||
JELD-WEN Holding, Inc. (a) | 10,337 | 226,484 | ||||||
Johnson Controls International PLC | 122,934 | 5,217,319 | ||||||
Lennox International, Inc. | 5,550 | 1,423,464 | ||||||
Masco Corp. | 45,520 | 1,855,850 | ||||||
Masonite International Corp. (a) | 3,932 | 209,576 | ||||||
Owens Corning | 16,891 | 979,678 | ||||||
Patrick Industries, Inc. (a) | 3,530 | 161,921 | ||||||
PGT Innovations, Inc. (a) | 8,971 | 144,613 | ||||||
Quanex Building Products Corp. | 5,133 | 95,576 | ||||||
Resideo Technologies, Inc. (a) | 19,043 | 359,151 | ||||||
Simpson Manufacturing Co., Inc. | 6,224 | 384,394 | ||||||
Trex Co., Inc. (a) | 9,044 | 739,347 | ||||||
Universal Forest Products, Inc. | 9,372 | 378,910 | ||||||
|
| |||||||
TOTAL BUILDING PRODUCTS |
| 18,518,866 | ||||||
|
|
See accompanying notes which are an integral part of the financial statements.
61 | Annual Report |
Table of Contents
Fidelity® MSCI Industrials Index ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
COMMERCIAL SERVICES & SUPPLIES – 7.2% |
| |||||||
Commercial Printing – 0.3% |
| |||||||
Brady Corp. Class A | 7,600 | $ | 393,148 | |||||
Cimpress N.V. (a) | 3,328 | 320,986 | ||||||
Deluxe Corp. | 6,733 | 300,426 | ||||||
Ennis, Inc. | 4,075 | 82,845 | ||||||
Quad/Graphics, Inc. | 4,942 | 55,894 | ||||||
RR Donnelley & Sons Co. | 10,962 | 22,143 | ||||||
|
| |||||||
1,175,442 | ||||||||
|
| |||||||
Diversified Support Services – 2.0% |
| |||||||
Cintas Corp. | 13,721 | 3,573,497 | ||||||
Civeo Corp. (a) | 20,178 | 33,294 | ||||||
Copart, Inc. (a) | 31,727 | 2,459,794 | ||||||
Healthcare Services Group, Inc. | 11,361 | 271,642 | ||||||
IAA, Inc. (a) | 20,491 | 957,954 | ||||||
KAR Auction Services, Inc. | 20,491 | 547,929 | ||||||
Matthews International Corp. Class A | 4,916 | 167,881 | ||||||
McGrath RentCorp | 3,769 | 256,707 | ||||||
Mobile Mini, Inc. | 6,933 | 235,445 | ||||||
UniFirst Corp. | 2,389 | 470,322 | ||||||
Viad Corp. | 3,111 | 215,095 | ||||||
VSE Corp. | 1,305 | 39,098 | ||||||
|
| |||||||
9,228,658 | ||||||||
|
| |||||||
Environmental & Facilities Services – 4.2% |
| |||||||
ABM Industries, Inc. | 10,263 | 431,970 | ||||||
Advanced Disposal Services, Inc. (a) | 11,625 | 376,301 | ||||||
BrightView Holdings, Inc. (a) | 4,857 | 95,974 | ||||||
Casella Waste Systems, Inc. | 6,668 | 290,725 | ||||||
Clean Harbors, Inc. (a) | 8,216 | 639,287 | ||||||
Covanta Holding Corp. | 18,158 | 312,681 | ||||||
Heritage-Crystal Clean, Inc. (a) | 2,409 | 67,573 | ||||||
Republic Services, Inc. | 34,764 | 3,081,829 | ||||||
Rollins, Inc. | 22,738 | 762,405 | ||||||
SP Plus Corp. (a) | 3,527 | 121,787 | ||||||
Stericycle, Inc. (a) | 14,046 | 645,554 | ||||||
Team, Inc. (a) | 4,319 | 71,523 | ||||||
Tetra Tech, Inc. | 8,506 | 673,675 | ||||||
US Ecology, Inc. | 3,371 | 214,497 | ||||||
Waste Connections, Inc. | 40,688 | 3,691,215 | ||||||
Waste Management, Inc. | 65,471 | 7,660,107 | ||||||
|
| |||||||
19,137,103 | ||||||||
|
| |||||||
Office Services & Supplies – 0.5% |
| |||||||
ACCO Brands Corp. | 15,934 | 155,834 | ||||||
Herman Miller, Inc. | 9,112 | 413,138 | ||||||
HNI Corp. | 6,685 | 228,894 | ||||||
Interface, Inc. | 9,268 | 128,454 | ||||||
Kimball International, Inc. Class B | 5,571 | 96,601 | ||||||
Knoll, Inc. | 7,723 | 187,283 | ||||||
MSA Safety, Inc. | 5,656 | 595,860 | ||||||
Pitney Bowes, Inc. | 28,834 | 116,778 |
Shares | Value | |||||||
Steelcase, Inc. Class A | 13,604 | $ | 230,044 | |||||
|
| |||||||
2,152,886 | ||||||||
|
| |||||||
Security & Alarm Services – 0.2% |
| |||||||
ADT, Inc. | 23,331 | 148,152 | ||||||
The Brink’s Co. | 7,653 | 689,994 | ||||||
|
| |||||||
838,146 | ||||||||
|
| |||||||
TOTAL COMMERCIAL SERVICES & SUPPLIES |
| 32,532,235 | ||||||
|
| |||||||
CONSTRUCTION & ENGINEERING – 1.7% |
| |||||||
Construction & Engineering – 1.7% | ||||||||
AECOM (a) | 24,125 | 867,294 | ||||||
Aegion Corp. (a) | 4,943 | 93,176 | ||||||
Ameresco, Inc. Class A (a) | 3,056 | 43,548 | ||||||
Arcosa, Inc. | 6,838 | 256,425 | ||||||
Argan, Inc. | 2,146 | 88,308 | ||||||
Comfort Systems USA, Inc. | 5,655 | 237,510 | ||||||
Construction Partners, Inc. Class A (a) | 1,843 | 28,806 | ||||||
Dycom Industries, Inc. (a) | 4,859 | 268,022 | ||||||
EMCOR Group, Inc. | 8,634 | 728,623 | ||||||
Fluor Corp. | 21,508 | 699,225 | ||||||
Granite Construction, Inc. | 7,195 | 255,422 | ||||||
Great Lakes Dredge & Dock Corp. (a) | 8,642 | 92,729 | ||||||
Jacobs Engineering Group, Inc. | 21,565 | 1,779,328 | ||||||
MasTec, Inc. (a) | 9,379 | 481,330 | ||||||
MYR Group, Inc. (a) | 2,621 | 94,671 | ||||||
NV5 Global, Inc. (a) | 1,538 | 122,225 | ||||||
Primoris Services Corp. | 6,648 | 139,342 | ||||||
Quanta Services, Inc. | 21,800 | 815,756 | ||||||
Tutor Perini Corp. (a) | 6,079 | 79,392 | ||||||
Valmont Industries, Inc. | 3,382 | 465,363 | ||||||
Willscot Corp. (a) | 8,365 | 133,171 | ||||||
|
| |||||||
TOTAL CONSTRUCTION & ENGINEERING |
| 7,769,666 | ||||||
|
| |||||||
ELECTRICAL EQUIPMENT – 5.4% |
| |||||||
Electrical Components & Equipment – 5.3% |
| |||||||
Acuity Brands, Inc. | 6,157 | 826,392 | ||||||
AMETEK, Inc. | 35,071 | 3,142,712 | ||||||
Atkore International Group, Inc. (a) | 7,051 | 192,422 | ||||||
Eaton Corp. PLC | 65,420 | 5,376,870 | ||||||
Emerson Electric Co. | 94,970 | 6,161,654 | ||||||
Encore Wire Corp. | 3,213 | 176,458 | ||||||
EnerSys | 6,638 | 452,114 | ||||||
Generac Holdings, Inc. (a) | 9,578 | 692,489 | ||||||
GrafTech International Ltd. | 11,076 | 126,820 | ||||||
Hubbell, Inc. | 8,440 | 1,096,187 | ||||||
nVent Electric PLC | 24,594 | 609,685 | ||||||
Plug Power, Inc. (a) | 36,214 | 80,033 | ||||||
Powell Industries, Inc. | 1,539 | 56,928 | ||||||
Regal-Beloit Corp. | 6,608 | 526,129 | ||||||
Rockwell Automation, Inc. | 18,460 | 2,967,999 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 62 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
ELECTRICAL EQUIPMENT – continued |
| |||||||
Electrical Components & Equipment – continued |
| |||||||
Sensata Technologies Holding | 25,388 | $ | 1,204,153 | |||||
Sunrun, Inc. (a) | 11,211 | 213,570 | ||||||
Thermon Group Holdings, Inc. (a) | 4,988 | 126,396 | ||||||
Vicor Corp. (a) | 2,844 | 84,069 | ||||||
Vivint Solar, Inc. (a) | 6,440 | 53,130 | ||||||
|
| |||||||
24,166,210 | ||||||||
|
| |||||||
Heavy Electrical Equipment – 0.1% |
| |||||||
AZZ, Inc. | 4,075 | 189,813 | ||||||
Bloom Energy Corp. Class A (a) | 8,133 | 84,990 | ||||||
TPI Composites, Inc. (a) | 4,256 | 108,826 | ||||||
|
| |||||||
383,629 | ||||||||
|
| |||||||
TOTAL ELECTRICAL EQUIPMENT |
| 24,549,839 | ||||||
|
| |||||||
INDUSTRIAL CONGLOMERATES – 12.4% |
| |||||||
Industrial Conglomerates – 12.4% | ||||||||
3M Co. | 88,948 | 15,540,994 | ||||||
Carlisle Cos., Inc. | 8,862 | 1,277,989 | ||||||
General Electric Co. | 1,344,746 | 14,052,596 | ||||||
Honeywell International, Inc. | 112,628 | 19,423,825 | ||||||
Raven Industries, Inc. | 5,603 | 203,053 | ||||||
Roper Industries, Inc. | 16,001 | 5,818,763 | ||||||
|
| |||||||
TOTAL INDUSTRIAL CONGLOMERATES |
| 56,317,220 | ||||||
|
| |||||||
MACHINERY – 19.3% |
| |||||||
Agricultural & Farm Machinery – 2.2% |
| |||||||
AGCO Corp. | 10,082 | 776,314 | ||||||
Deere & Co. | 46,948 | 7,776,936 | ||||||
Lindsay Corp. | 1,694 | 154,527 | ||||||
The Toro Co. | 16,429 | 1,196,360 | ||||||
Titan International, Inc. | 7,659 | 28,951 | ||||||
|
| |||||||
9,933,088 | ||||||||
|
| |||||||
Construction Machinery & Heavy Trucks – 5.8% |
| |||||||
Alamo Group, Inc. | 1,548 | 151,534 | ||||||
Allison Transmission Holdings, Inc. | 18,475 | 848,926 | ||||||
Astec Industries, Inc. | 3,338 | 109,119 | ||||||
Blue Bird Corp. (a) | 2,306 | 47,780 | ||||||
Caterpillar, Inc. | 88,909 | 11,706,648 | ||||||
Cummins, Inc. | 23,100 | 3,788,400 | ||||||
Douglas Dynamics, Inc. | 3,487 | 143,316 | ||||||
Federal Signal Corp. | 9,258 | 288,387 | ||||||
Meritor, Inc. (a) | 11,571 | 286,151 | ||||||
Navistar International Corp. (a) | 6,880 | 214,931 | ||||||
Oshkosh Corp. | 10,799 | 902,472 | ||||||
PACCAR, Inc. | 53,584 | 3,758,382 | ||||||
REV Group, Inc. | 4,345 | 63,307 | ||||||
Spartan Motors, Inc. | 4,993 | 60,016 | ||||||
Terex Corp. | 10,854 | 330,504 | ||||||
The Greenbrier Cos., Inc. | 4,937 | 142,729 |
Shares | Value | |||||||
The Manitowoc Co., Inc. (a) | 5,615 | $ | 100,789 | |||||
Trinity Industries, Inc. | 17,476 | 342,530 | ||||||
Wabash National Corp. | 8,503 | 134,602 | ||||||
WABCO Holdings, Inc. (a) | 7,920 | 1,048,687 | ||||||
Wabtec Corp. | 24,394 | 1,894,926 | ||||||
|
| |||||||
26,364,136 | ||||||||
|
| |||||||
Industrial Machinery – 11.3% |
| |||||||
Actuant Corp. Class A | 9,504 | 217,642 | ||||||
Albany International Corp. Class A | 4,506 | 387,471 | ||||||
Altra Industrial Motion Corp. | 9,897 | 284,341 | ||||||
Barnes Group, Inc. | 7,571 | 393,995 | ||||||
Briggs & Stratton Corp. | 6,668 | 63,546 | ||||||
Chart Industries, Inc. (a) | 5,161 | 389,810 | ||||||
CIRCOR International, Inc. (a) | 2,635 | 100,130 | ||||||
Colfax Corp. (a) | 13,621 | 377,029 | ||||||
Columbus McKinnon Corp. | 3,421 | 131,503 | ||||||
Crane Co. | 7,386 | 618,208 | ||||||
Donaldson Co., Inc. | 19,781 | 988,061 | ||||||
Dover Corp. | 22,393 | 2,168,762 | ||||||
Energy Recovery, Inc. (a) | 4,983 | 54,713 | ||||||
EnPro Industries, Inc. | 3,046 | 216,388 | ||||||
ESCO Technologies, Inc. | 3,991 | 333,488 | ||||||
Evoqua Water Technologies Corp. (a) | 12,318 | 175,162 | ||||||
Flowserve Corp. | 20,194 | 1,010,306 | ||||||
Fortive Corp. | 46,546 | 3,539,823 | ||||||
Franklin Electric Co., Inc. | 6,149 | 288,142 | ||||||
Gardner Denver Holdings, Inc. (a) | 19,910 | 656,433 | ||||||
Gates Industrial Corp. PLC (a) | 9,027 | 99,116 | ||||||
Graco, Inc. | 25,571 | 1,229,454 | ||||||
Harsco Corp. (a) | 12,326 | 289,168 | ||||||
Helios Technologies, Inc. | 4,430 | 208,033 | ||||||
Hillenbrand, Inc. | 9,704 | 326,928 | ||||||
Hyster-Yale Materials Handling, Inc. | 979 | 60,541 | ||||||
IDEX Corp. | 11,712 | 1,970,193 | ||||||
Illinois Tool Works, Inc. | 50,691 | 7,818,073 | ||||||
Ingersoll-Rand PLC | 37,410 | 4,626,121 | ||||||
ITT, Inc. | 13,514 | 843,544 | ||||||
John Bean Technologies Corp. | 4,873 | 578,230 | ||||||
Kadant, Inc. | 1,712 | 160,004 | ||||||
Kennametal, Inc. | 12,736 | 440,411 | ||||||
Lincoln Electric Holdings, Inc. | 9,260 | 782,655 | ||||||
Lydall, Inc. (a) | 2,729 | 64,404 | ||||||
Milacron Holdings Corp. (a) | 10,978 | 184,870 | ||||||
Mueller Industries, Inc. | 8,357 | 252,298 | ||||||
Mueller Water Products, Inc. Class A | 24,341 | 247,548 | ||||||
NN, Inc. | 6,464 | 53,069 | ||||||
Nordson Corp. | 7,954 | 1,126,764 | ||||||
Omega Flex, Inc. | 453 | 34,455 | ||||||
Parker Hannifin Corp. | 19,974 | 3,497,048 | ||||||
Park-Ohio Holdings Corp. | 1,284 | 39,290 | ||||||
Pentair PLC | 25,093 | 973,859 |
See accompanying notes which are an integral part of the financial statements.
63 | Annual Report |
Table of Contents
Fidelity® MSCI Industrials Index ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
MACHINERY – continued |
| |||||||
Industrial Machinery – continued |
| |||||||
Proto Labs, Inc. (a) | 3,955 | $ | 411,715 | |||||
RBC Bearings, Inc. (a) | 3,831 | 623,265 | ||||||
Rexnord Corp. (a) | 16,246 | 475,845 | ||||||
Snap-on, Inc. | 8,603 | 1,312,904 | ||||||
SPX Corp. (a) | 6,724 | 234,668 | ||||||
SPX FLOW, Inc. (a) | 6,521 | 264,492 | ||||||
Standex International Corp. | 1,958 | 137,784 | ||||||
Stanley Black & Decker, Inc. | 23,368 | 3,448,883 | ||||||
Tennant Co. | 2,641 | 201,007 | ||||||
The Gorman-Rupp Co. | 2,867 | 95,242 | ||||||
The Middleby Corp. (a) | 8,622 | 1,158,624 | ||||||
The Timken Co. | 10,506 | 480,229 | ||||||
Trimas Corp. (a) | 7,107 | 213,139 | ||||||
Watts Water Technologies, Inc. Class A | 4,257 | 395,177 | ||||||
Welbilt, Inc. (a) | 20,604 | 338,318 | ||||||
Woodward, Inc. | 8,613 | 965,001 | ||||||
Xylem, Inc. | 27,739 | 2,227,164 | ||||||
|
| |||||||
51,284,486 | ||||||||
|
| |||||||
TOTAL MACHINERY |
| 87,581,710 | ||||||
|
| |||||||
MARINE – 0.1% |
| |||||||
Marine – 0.1% | ||||||||
Genco Shipping & Trading Ltd. (a) | 2,533 | 24,368 | ||||||
Kirby Corp. (a) | 2,340 | 183,362 | ||||||
Matson, Inc. | 1,611 | 65,906 | ||||||
|
| |||||||
TOTAL MARINE |
| 273,636 | ||||||
|
| |||||||
PROFESSIONAL SERVICES – 5.3% |
| |||||||
Human Resource & Employment Services – 1.1% |
| |||||||
ASGN, Inc. (a) | 8,136 | 512,975 | ||||||
Barrett Business Services, Inc. | 1,159 | 101,413 | ||||||
Heidrick & Struggles International, Inc. | 2,957 | 87,823 | ||||||
Insperity, Inc. | 5,997 | 637,781 | ||||||
Kelly Services, Inc. Class A | 4,919 | 136,896 | ||||||
Kforce, Inc. | 3,645 | 124,258 | ||||||
Korn Ferry | 8,747 | 343,582 | ||||||
ManpowerGroup, Inc. | 9,310 | 850,468 | ||||||
Robert Half International, Inc. | 18,358 | 1,109,007 | ||||||
TriNet Group, Inc. (a) | 7,075 | 520,296 | ||||||
TrueBlue, Inc. (a) | 6,221 | 122,989 | ||||||
Upwork, Inc. (a) | 8,226 | 135,235 | ||||||
WageWorks, Inc. (a) | 6,148 | 314,593 | ||||||
|
| |||||||
4,997,316 | ||||||||
|
| |||||||
Research & Consulting Services – 4.2% |
| |||||||
CBIZ, Inc. (a) | 8,012 | 187,240 | ||||||
CoStar Group, Inc. (a) | 5,624 | 3,461,009 | ||||||
Equifax, Inc. | 18,645 | 2,593,333 |
Shares | Value | |||||||
Exponent, Inc. | 7,940 | $ | 546,272 | |||||
Forrester Research, Inc. | 1,691 | 80,035 | ||||||
FTI Consulting, Inc. (a) | 5,837 | 609,675 | ||||||
Huron Consulting Group, Inc. (a) | 3,473 | 211,749 | ||||||
ICF International, Inc. | 2,898 | 246,881 | ||||||
IHS Markit Ltd. (a) | 58,648 | 3,778,104 | ||||||
Mistras Group, Inc. (a) | 2,859 | 43,342 | ||||||
Navigant Consulting, Inc. | 6,534 | 159,168 | ||||||
Nielsen Holdings PLC | 55,000 | 1,273,800 | ||||||
Resources Connection, Inc. | 4,644 | 81,734 | ||||||
TransUnion | 28,740 | 2,379,385 | ||||||
Verisk Analytics, Inc. | 24,011 | 3,642,949 | ||||||
Willdan Group, Inc. (a) | 1,614 | 56,458 | ||||||
|
| |||||||
19,351,134 | ||||||||
|
| |||||||
TOTAL PROFESSIONAL SERVICES |
| 24,348,450 | ||||||
|
| |||||||
ROAD & RAIL – 10.5% |
| |||||||
Railroads – 8.7% | ||||||||
CSX Corp. | 119,698 | 8,426,739 | ||||||
Genesee & Wyoming, Inc. Class A (a) | 8,678 | 952,931 | ||||||
Kansas City Southern | 15,601 | 1,930,468 | ||||||
Norfolk Southern Corp. | 41,318 | 7,896,696 | ||||||
Union Pacific Corp. | 111,669 | 20,094,837 | ||||||
|
| |||||||
39,301,671 | ||||||||
|
| |||||||
Trucking – 1.8% |
| |||||||
AMERCO | 1,364 | 527,868 | ||||||
ArcBest Corp. | 3,978 | 119,062 | ||||||
Avis Budget Group, Inc. (a) | 9,929 | 361,316 | ||||||
Covenant Transportation Group, Inc. Class A (a) | 1,946 | 32,790 | ||||||
Daseke, Inc. (a) | 6,877 | 25,445 | ||||||
Heartland Express, Inc. | 7,082 | 140,507 | ||||||
Hertz Global Holdings, Inc. (a) | 13,052 | 202,567 | ||||||
JB Hunt Transport Services, Inc. | 13,413 | 1,373,089 | ||||||
Knight-Swift Transportation Holdings, Inc. | 20,101 | 720,420 | ||||||
Landstar System, Inc. | 6,186 | 688,316 | ||||||
Marten Transport Ltd. | 6,326 | 126,963 | ||||||
Old Dominion Freight Line, Inc. | 10,040 | 1,676,479 | ||||||
Ryder System, Inc. | 8,209 | 437,211 | ||||||
Saia, Inc. (a) | 3,977 | 303,445 | ||||||
Schneider National, Inc. Class B | 8,026 | 154,902 | ||||||
Uber Technologies, Inc. (a) | 28,580 | 1,204,361 | ||||||
Universal Logistics Holdings, Inc | 1,332 | 26,227 | ||||||
Werner Enterprises, Inc. | 7,096 | 235,233 | ||||||
YRC Worldwide, Inc. (a) | 5,039 | 16,427 | ||||||
|
| |||||||
8,372,628 | ||||||||
|
| |||||||
TOTAL ROAD & RAIL | 47,674,299 | |||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 64 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
TRADING COMPANIES & DISTRIBUTORS – 3.1% |
| |||||||
Trading Companies & Distributors – 3.1% |
| |||||||
Air Lease Corp. | 16,249 | $ | 679,046 | |||||
Aircastle Ltd. | 8,771 | 182,349 | ||||||
Applied Industrial Technologies, Inc. | 6,009 | 365,587 | ||||||
Beacon Roofing Supply, Inc. (a) | 10,628 | 385,052 | ||||||
BMC Stock Holdings, Inc. (a) | 10,360 | 219,114 | ||||||
CAI International, Inc. (a) | 2,836 | 64,661 | ||||||
DXP Enterprises, Inc. (a) | 2,599 | 88,236 | ||||||
Fastenal Co. | 88,381 | 2,722,135 | ||||||
Foundation Building Materials, Inc. (a) | 2,915 | 50,167 | ||||||
GATX Corp. | 5,360 | 411,970 | ||||||
GMS, Inc. (a) | 5,178 | 116,557 | ||||||
H&E Equipment Services, Inc. | 4,944 | 151,336 | ||||||
HD Supply Holdings, Inc. (a) | 27,562 | 1,116,537 | ||||||
Herc Holdings, Inc. (a) | 3,283 | 148,195 | ||||||
Kaman Corp. | 3,868 | 245,231 | ||||||
MRC Global, Inc. (a) | 12,928 | 202,194 | ||||||
MSC Industrial Direct Co., Inc. Class A | 6,966 | 494,934 | ||||||
NOW, Inc. (a) | 16,873 | 206,694 | ||||||
Rush Enterprises, Inc. Class A | 4,354 | 163,972 | ||||||
Rush Enterprises, Inc. Class B | 572 | 22,537 | ||||||
SiteOne Landscape Supply, Inc. (a) | 6,011 | 444,032 | ||||||
Systemax, Inc. | 1,939 | 42,076 | ||||||
Titan Machinery, Inc. (a) | 2,938 | 60,934 | ||||||
Triton International Ltd. | 8,536 | 282,371 | ||||||
United Rentals, Inc. (a) | 12,306 | 1,557,324 | ||||||
Univar, Inc. (a) | 21,072 | 466,113 | ||||||
Veritiv Corp. (a) | 1,990 | 34,666 |
Shares | Value | |||||||
Watsco, Inc. | 4,959 | $ | 806,433 | |||||
WESCO International, Inc. (a) | 6,621 | 335,949 | ||||||
WW Grainger, Inc. | 7,338 | 2,135,578 | ||||||
|
| |||||||
TOTAL TRADING COMPANIES & DISTRIBUTORS |
| 14,201,980 | ||||||
|
| |||||||
TRANSPORTATION INFRASTRUCTURE – 0.1% |
| |||||||
Airport Services – 0.1% | ||||||||
Macquarie Infrastructure Corp. | 11,924 | 494,131 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 453,935,172 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 2.16% (b) | 349,000 | 349,000 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 100.0% |
| 454,284,172 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.0% |
| 186,884 | ||||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 454,471,056 | |||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualizedseven-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 Information Technology Index ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
COMMUNICATIONS EQUIPMENT – 5.3% |
| |||||||
Communications Equipment – 5.3% |
| |||||||
Acacia Communications, Inc. (a) | 12,776 | $ | 858,164 | |||||
ADTRAN, Inc. | 18,669 | 207,413 | ||||||
Applied Optoelectronics, Inc. (a) | 7,318 | 73,253 | ||||||
Arista Networks, Inc. (a) | 21,132 | 5,778,545 | ||||||
CalAmp Corp. (a) | 13,797 | 153,975 | ||||||
Casa Systems, Inc. (a) | 11,804 | 77,788 | ||||||
Ciena Corp. (a) | 62,685 | 2,834,616 | ||||||
Cisco Systems, Inc. | 1,756,867 | 97,330,432 | ||||||
CommScope Holding Co., Inc. (a) | 76,283 | 1,089,321 | ||||||
Comtech Telecommunications Corp. | 9,235 | 274,834 | ||||||
EchoStar Corp. Class A (a) | 18,992 | 864,516 | ||||||
Extreme Networks, Inc. (a) | 46,948 | 382,157 | ||||||
F5 Networks, Inc. (a) | 23,796 | 3,491,349 | ||||||
Finisar Corp. (a) | 44,376 | 1,044,167 | ||||||
Harmonic, Inc. (a) | 33,654 | 251,395 | ||||||
Infinera Corp. (a) | 61,912 | 238,980 | ||||||
InterDigital, Inc. | 12,965 | 835,335 | ||||||
Juniper Networks, Inc. | 138,883 | 3,752,619 | ||||||
Lumentum Holdings, Inc. (a) | 30,224 | 1,711,585 | ||||||
Motorola Solutions, Inc. | 65,491 | 10,868,886 | ||||||
NETGEAR, Inc. (a) | 12,430 | 420,755 | ||||||
Netscout Systems, Inc. (a) | 31,588 | 822,551 | ||||||
Plantronics, Inc. | 13,674 | 525,082 | ||||||
Ribbon Communications, Inc. (a) | 20,281 | 99,783 | ||||||
ViaSat, Inc. (a) | 15,659 | 1,277,618 | ||||||
Viavi Solutions, Inc. (a) | 90,649 | 1,329,821 | ||||||
|
| |||||||
TOTAL COMMUNICATIONS EQUIPMENT |
| 136,594,940 | ||||||
|
| |||||||
ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS – 3.8% |
| |||||||
Electronic Components – 1.1% | ||||||||
Amphenol Corp. Class A | 118,868 | 11,092,762 | ||||||
AVX Corp. | 19,785 | 301,326 | ||||||
Belden, Inc. | 15,878 | 721,814 | ||||||
Corning, Inc. | 313,731 | 9,647,228 | ||||||
Dolby Laboratories, Inc. Class A | 25,859 | 1,760,998 | ||||||
II-VI, Inc. (a) | 24,143 | 958,477 | ||||||
Knowles Corp. (a) | 36,552 | 743,833 | ||||||
Littelfuse, Inc. | 9,847 | 1,663,749 | ||||||
Rogers Corp. (a) | 7,327 | 1,162,502 | ||||||
Vishay Intertechnology, Inc. | 52,693 | 895,781 | ||||||
|
| |||||||
28,948,470 | ||||||||
|
| |||||||
Electronic Equipment & Instruments – 1.1% |
| |||||||
Arlo Technologies, Inc. (a) | 30,628 | 131,700 | ||||||
Badger Meter, Inc. | 11,820 | 632,252 | ||||||
Cognex Corp. | 68,394 | 3,010,020 | ||||||
Coherent, Inc. (a) | 9,668 | 1,342,402 | ||||||
Daktronics, Inc. | 16,362 | 103,735 | ||||||
FARO Technologies, Inc. (a) | 7,069 | 377,414 | ||||||
Fitbit, Inc. Class A (a) | 87,951 | 369,394 |
Shares | Value | |||||||
FLIR Systems, Inc. | 54,319 | $ | 2,697,482 | |||||
Itron, Inc. (a) | 14,235 | 882,570 | ||||||
Keysight Technologies, Inc. (a) | 74,855 | 6,701,020 | ||||||
MTS Systems Corp. | 6,970 | 401,611 | ||||||
National Instruments Corp. | 50,628 | 2,114,225 | ||||||
nLight, Inc. (a) | 10,873 | 178,752 | ||||||
Novanta, Inc. (a) | 13,859 | 1,165,403 | ||||||
OSI Systems, Inc. (a) | 6,768 | 761,806 | ||||||
Trimble, Inc. (a) | 100,285 | 4,238,044 | ||||||
Vishay Precision Group, Inc. (a) | 4,175 | 170,090 | ||||||
Zebra Technologies Corp. Class A (a) | 21,522 | 4,538,775 | ||||||
|
| |||||||
29,816,695 | ||||||||
|
| |||||||
Electronic Manufacturing Services – 0.9% |
| |||||||
Benchmark Electronics, Inc. | 15,357 | 415,560 | ||||||
CTS Corp. | 12,289 | 387,349 | ||||||
Fabrinet (a) | 14,622 | 784,909 | ||||||
Flex Ltd. (a) | 207,287 | 2,311,250 | ||||||
IPG Photonics Corp. (a) | 14,776 | 1,935,804 | ||||||
Jabil, Inc. | 55,356 | 1,709,393 | ||||||
KEMET Corp. | 21,804 | 438,696 | ||||||
Kimball Electronics, Inc. (a) | 10,404 | 165,424 | ||||||
Methode Electronics, Inc. | 14,467 | 433,287 | ||||||
Plexus Corp. (a) | 12,592 | 751,868 | ||||||
Sanmina Corp. (a) | 27,285 | 866,299 | ||||||
TE Connectivity Ltd. | 135,119 | 12,484,996 | ||||||
TTM Technologies, Inc. (a) | 39,389 | 412,009 | ||||||
|
| |||||||
23,096,844 | ||||||||
|
| |||||||
Technology Distributors – 0.7% | ||||||||
Anixter International, Inc. (a) | 12,811 | 824,516 | ||||||
Arrow Electronics, Inc. (a) | 33,856 | 2,458,284 | ||||||
Avnet, Inc. | 43,104 | 1,957,784 | ||||||
CDW Corp. | 58,635 | 6,928,312 | ||||||
ePlus, Inc. (a) | 5,351 | 406,141 | ||||||
Insight Enterprises, Inc. (a) | 14,305 | 787,061 | ||||||
PC Connection, Inc. | 4,754 | 155,503 | ||||||
ScanSource, Inc. (a) | 9,999 | 339,466 | ||||||
SYNNEX Corp. | 17,523 | 1,726,716 | ||||||
Tech Data Corp. (a) | 14,821 | 1,501,960 | ||||||
|
| |||||||
17,085,743 | ||||||||
|
| |||||||
TOTAL ELECTRONIC EQUIPMENT, INSTRUMENTS & COMPONENTS |
| 98,947,752 | ||||||
|
| |||||||
IT SERVICES – 24.6% | ||||||||
Data Processing & Outsourced Services – 17.4% |
| |||||||
Alliance Data Systems Corp. | 19,008 | 2,982,735 | ||||||
Automatic Data Processing, Inc. | 173,864 | 28,951,833 | ||||||
Black Knight, Inc. (a) | 56,790 | 3,595,943 | ||||||
Broadridge Financial Solutions, Inc. | 46,117 | 5,862,393 | ||||||
Cardtronics PLC Class A (a) | 16,051 | 457,133 | ||||||
Cass Information Systems, Inc. | 4,982 | 253,634 | ||||||
Conduent, Inc. (a) | 71,763 | 653,043 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 66 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
IT SERVICES – continued | ||||||||
Data Processing & Outsourced Services – continued |
| |||||||
CoreLogic, Inc. (a) | 32,196 | $ | 1,467,172 | |||||
CSG Systems International, Inc. | 13,103 | 671,398 | ||||||
Euronet Worldwide, Inc. (a) | 20,789 | 3,241,213 | ||||||
EVERTEC, Inc. | 24,979 | 799,828 | ||||||
Evo Payments, Inc. Class A (a) | 12,717 | 395,753 | ||||||
Exela Technologies, Inc. (a) | 17,732 | 46,990 | ||||||
ExlService Holdings, Inc. (a) | 13,805 | 949,646 | ||||||
Fidelity National Information Services, Inc. | 244,200 | 32,539,612 | ||||||
Fiserv, Inc. (a) | 229,326 | 24,177,840 | ||||||
FleetCor Technologies, Inc. (a) | 34,314 | 9,751,009 | ||||||
Global Payments, Inc. | 62,835 | 10,551,253 | ||||||
GreenSky, Inc. Class A (a) | 20,480 | 234,087 | ||||||
Jack Henry & Associates, Inc. | 30,828 | 4,306,672 | ||||||
Mastercard, Inc. Class A | 364,308 | 99,190,139 | ||||||
MAXIMUS, Inc. | 25,385 | 1,866,051 | ||||||
NIC, Inc. | 27,531 | 499,412 | ||||||
Paychex, Inc. | 128,866 | 10,702,321 | ||||||
PayPal Holdings, Inc. (a) | 444,923 | 49,119,499 | ||||||
Sabre Corp. | 109,613 | 2,577,002 | ||||||
Square, Inc. Class A (a) | 130,518 | 10,494,952 | ||||||
Sykes Enterprises, Inc. (a) | 15,894 | 449,641 | ||||||
The Western Union Co. | 174,515 | 3,664,815 | ||||||
Total System Services, Inc. | 67,021 | 9,096,090 | ||||||
TTEC Holdings, Inc. | 6,340 | 297,473 | ||||||
Verra Mobility Corp. (a) | 18,487 | 256,045 | ||||||
Visa, Inc. Class A | 698,502 | 124,333,356 | ||||||
WEX, Inc. (a) | 17,211 | 3,753,203 | ||||||
|
| |||||||
448,189,186 | ||||||||
|
| |||||||
Internet Services & Infrastructure – 1.3% |
| |||||||
Akamai Technologies, Inc. (a) | 64,992 | 5,727,745 | ||||||
Carbonite, Inc. (a) | 13,481 | 241,714 | ||||||
Endurance International Group Holdings, | 25,270 | 119,780 | ||||||
GoDaddy, Inc. Class A (a) | 69,160 | 5,074,961 | ||||||
GTT Communications, Inc. (a) | 11,910 | 144,111 | ||||||
Limelight Networks, Inc. (a) | 44,063 | 119,411 | ||||||
MongoDB, Inc. (a) | 12,654 | 1,812,306 | ||||||
Okta, Inc. (a) | 40,373 | 5,281,999 | ||||||
Switch, Inc. Class A | 10,962 | 148,754 | ||||||
Tucows, Inc. Class A (a) | 3,897 | 190,680 | ||||||
Twilio, Inc. Class A (a) | 44,418 | 6,178,988 | ||||||
VeriSign, Inc. (a) | 42,952 | 9,066,738 | ||||||
|
| |||||||
34,107,187 | ||||||||
|
| |||||||
IT Consulting & Other Services – 5.9% |
| |||||||
Accenture PLC Class A | 254,466 | 49,005,062 | ||||||
Booz Allen Hamilton Holding Corp. | 56,057 | 3,853,919 | ||||||
CACI International, Inc. Class A (a) | 9,961 | 2,143,109 |
Shares | Value | |||||||
Cognizant Technology Solutions Corp. | 229,723 | $ | 14,964,156 | |||||
DXC Technology Co. | 107,126 | 5,974,417 | ||||||
EPAM Systems, Inc. (a) | 21,603 | 4,186,445 | ||||||
Gartner, Inc. (a) | 35,762 | 4,982,720 | ||||||
International Business Machines Corp. | 355,216 | 52,657,220 | ||||||
KBR, Inc. | 56,233 | 1,483,427 | ||||||
Leidos Holdings, Inc. | 55,364 | 4,545,384 | ||||||
LiveRamp Holdings, Inc. (a) | 25,749 | 1,356,715 | ||||||
ManTech International Corp. Class A | 10,735 | 738,353 | ||||||
Perficient, Inc. (a) | 13,669 | 467,070 | ||||||
Perspecta, Inc. | 58,404 | 1,362,565 | ||||||
Presidio, Inc. | 17,997 | 251,958 | ||||||
Science Applications International Corp. | 21,157 | 1,806,173 | ||||||
The Hackett Group, Inc. | 10,170 | 166,991 | ||||||
Unisys Corp. (a) | 19,957 | 247,267 | ||||||
Virtusa Corp. (a) | 11,523 | 514,848 | ||||||
|
| |||||||
150,707,799 | ||||||||
|
| |||||||
TOTAL IT SERVICES | 633,004,172 | |||||||
�� |
|
| ||||||
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT – 17.1% |
| |||||||
Semiconductor Equipment – 2.3% | ||||||||
Advanced Energy Industries, Inc. (a) | 15,299 | 893,462 | ||||||
Amkor Technology, Inc. (a) | 42,151 | 389,054 | ||||||
Applied Materials, Inc. | 379,125 | 18,717,401 | ||||||
Axcelis Technologies, Inc. (a) | 12,639 | 202,856 | ||||||
Brooks Automation, Inc. | 28,479 | 1,104,985 | ||||||
Cabot Microelectronics Corp. | 11,673 | 1,420,020 | ||||||
Cohu, Inc. | 15,897 | 240,998 | ||||||
Enphase Energy, Inc. (a) | 30,648 | 862,741 | ||||||
Entegris, Inc. | 53,649 | 2,334,268 | ||||||
FormFactor, Inc. (a) | 30,551 | 512,646 | ||||||
Ichor Holdings Ltd. (a) | 8,826 | 222,503 | ||||||
KLA Corp. | 65,252 | 8,895,153 | ||||||
Kulicke & Soffa Industries, Inc. | 26,433 | 598,179 | ||||||
Lam Research Corp. | 60,969 | 12,718,743 | ||||||
MKS Instruments, Inc. | 21,749 | 1,851,492 | ||||||
Nanometrics, Inc. (a) | 9,728 | 305,265 | ||||||
PDF Solutions, Inc. (a) | 11,420 | 152,457 | ||||||
Photronics, Inc. (a) | 27,354 | 263,419 | ||||||
Rudolph Technologies, Inc. (a) | 12,465 | 335,558 | ||||||
SolarEdge Technologies, Inc. (a) | 16,884 | 1,101,343 | ||||||
Teradyne, Inc. | 71,638 | 3,992,386 | ||||||
Ultra Clean Holdings, Inc. (a) | 15,230 | 222,206 | ||||||
Veeco Instruments, Inc. (a) | 19,068 | 227,100 | ||||||
Versum Materials, Inc. | 43,741 | 2,273,657 | ||||||
Xperi Corp. | 19,206 | 410,048 | ||||||
|
| |||||||
60,247,940 | ||||||||
|
| |||||||
Semiconductors – 14.8% | ||||||||
Advanced Micro Devices, Inc. (a) | 380,831 | 11,596,304 |
See accompanying notes which are an integral part of the financial statements.
67 | Annual Report |
Table of Contents
Fidelity® MSCI Information Technology Index ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
SEMICONDUCTORS & SEMICONDUCTOR |
| |||||||
Semiconductors – continued | ||||||||
Alpha & Omega Semiconductor | 7,651 | $ | 77,658 | |||||
Ambarella, Inc. (a) | 11,463 | 572,577 | ||||||
Analog Devices, Inc. | 147,090 | 17,277,191 | ||||||
Broadcom, Inc. | 158,129 | 45,855,829 | ||||||
CEVA, Inc. (a) | 8,601 | 238,936 | ||||||
Cirrus Logic, Inc. (a) | 23,852 | 1,169,941 | ||||||
Cree, Inc. (a) | 41,103 | 2,555,785 | ||||||
Cypress Semiconductor Corp. | 145,105 | 3,333,062 | ||||||
Diodes, Inc. (a) | 17,456 | 743,626 | ||||||
First Solar, Inc. (a) | 31,569 | 2,035,885 | ||||||
Inphi Corp. (a) | 15,903 | 957,520 | ||||||
Intel Corp. | 1,794,769 | 90,725,573 | ||||||
Lattice Semiconductor Corp. (a) | 50,581 | 978,237 | ||||||
MACOM Technology Solutions Holdings, | 17,838 | 349,982 | ||||||
Marvell Technology Group Ltd. | 249,184 | 6,543,572 | ||||||
Maxim Integrated Products, Inc. | 109,013 | 6,452,479 | ||||||
MaxLinear, Inc. Class A (a) | 26,416 | 580,624 | ||||||
Mellanox Technologies Ltd. (a) | 18,300 | 2,060,946 | ||||||
Microchip Technology, Inc. | 94,489 | 8,921,651 | ||||||
Micron Technology, Inc. (a) | 447,597 | 20,092,629 | ||||||
Monolithic Power Systems, Inc. | 16,222 | 2,403,451 | ||||||
NVE Corp. | 1,887 | 126,844 | ||||||
NVIDIA Corp. | 229,725 | 38,759,202 | ||||||
ON Semiconductor Corp. (a) | 164,144 | 3,530,737 | ||||||
Power Integrations, Inc. | 11,478 | 1,045,301 | ||||||
Qorvo, Inc. (a) | 48,958 | 3,588,132 | ||||||
QUALCOMM, Inc. | 482,970 | 35,334,085 | ||||||
Rambus, Inc. (a) | 44,188 | 550,582 | ||||||
Semtech Corp. (a) | 26,373 | 1,394,340 | ||||||
Silicon Laboratories, Inc. (a) | 17,235 | 1,933,939 | ||||||
Skyworks Solutions, Inc. | 69,411 | 5,919,370 | ||||||
SMART Global Holdings, Inc. (a) | 5,420 | 164,985 | ||||||
SunPower Corp. (a) | 24,819 | 290,134 | ||||||
Synaptics, Inc. (a) | 13,828 | 444,985 | ||||||
Texas Instruments, Inc. | 374,659 | 46,836,122 | ||||||
Universal Display Corp. | 16,905 | 3,568,307 | ||||||
Xilinx, Inc. | 101,162 | 11,553,712 | ||||||
|
| |||||||
380,564,235 | ||||||||
|
| |||||||
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT |
| 440,812,175 | ||||||
|
| |||||||
SOFTWARE – 31.6% | ||||||||
Application Software – 11.4% | ||||||||
2U, Inc. (a) | 22,975 | 294,080 | ||||||
8x8, Inc. (a) | 37,824 | 914,206 | ||||||
ACI Worldwide, Inc. (a) | 46,022 | 1,544,498 | ||||||
Adobe, Inc. (a) | 194,682 | 58,182,663 |
Shares | Value | |||||||
Agilysys, Inc. (a) | 7,886 | $ | 193,444 | |||||
Alarm.com Holdings, Inc. (a) | 14,280 | 712,715 | ||||||
Altair Engineering, Inc. Class A (a) | 13,742 | 571,805 | ||||||
Alteryx, Inc. Class A (a) | 17,681 | 2,078,225 | ||||||
ANSYS, Inc. (a) | 33,310 | 6,765,927 | ||||||
Appfolio, Inc. Class A (a) | 5,770 | 557,093 | ||||||
Aspen Technology, Inc. (a) | 27,866 | 3,674,689 | ||||||
Autodesk, Inc. (a) | 87,488 | 13,663,001 | ||||||
Avaya Holdings Corp. (a) | 44,412 | 534,720 | ||||||
Benefitfocus, Inc. (a) | 10,149 | 253,624 | ||||||
Blackbaud, Inc. | 19,285 | 1,754,935 | ||||||
Blackline, Inc. (a) | 15,189 | 677,429 | ||||||
Bottomline Technologies de, Inc. (a) | 17,077 | 718,771 | ||||||
Box, Inc. Class A (a) | 55,516 | 918,235 | ||||||
Cadence Design Systems, Inc. (a) | 111,806 | 8,263,581 | ||||||
CDK Global, Inc. | 50,054 | 2,596,301 | ||||||
Ceridian HCM Holding, Inc. (a) | 16,429 | 875,830 | ||||||
ChannelAdvisor Corp. (a) | 11,634 | 106,218 | ||||||
Cision Ltd. (a) | 32,315 | 335,753 | ||||||
Citrix Systems, Inc. | 52,624 | 4,959,286 | ||||||
Cloudera, Inc. (a) | 84,860 | 507,463 | ||||||
Cornerstone OnDemand, Inc. (a) | 19,958 | 1,181,514 | ||||||
Coupa Software, Inc. (a) | 22,604 | 3,067,589 | ||||||
DocuSign, Inc. (a) | 40,682 | 2,104,073 | ||||||
Domo, Inc. Class B (a) | 4,224 | 117,174 | ||||||
Dropbox, Inc. Class A (a) | 76,257 | 1,796,615 | ||||||
Ebix, Inc. | 9,924 | 456,802 | ||||||
Elastic N.V. (a) | 10,384 | 1,026,251 | ||||||
Envestnet, Inc. (a) | 18,137 | 1,295,163 | ||||||
Everbridge, Inc. (a) | 12,180 | 1,246,014 | ||||||
Fair Isaac Corp. (a) | 11,585 | 4,024,861 | ||||||
Five9, Inc. (a) | 23,531 | 1,161,725 | ||||||
Guidewire Software, Inc. (a) | 32,369 | 3,304,228 | ||||||
HubSpot, Inc. (a) | 15,672 | 2,800,900 | ||||||
Instructure, Inc. (a) | 12,095 | 480,051 | ||||||
Intuit, Inc. | 103,448 | 28,687,165 | ||||||
j2 Global, Inc. | 18,610 | 1,657,965 | ||||||
LivePerson, Inc. (a) | 23,992 | 796,294 | ||||||
LogMeIn, Inc. | 20,278 | 1,540,520 | ||||||
Manhattan Associates, Inc. (a) | 26,154 | 2,222,828 | ||||||
MicroStrategy, Inc. Class A (a) | 3,274 | 447,654 | ||||||
Mimecast Ltd. (a) | 19,197 | 913,777 | ||||||
MobileIron, Inc. (a) | 27,274 | 188,191 | ||||||
Model N, Inc. (a) | 9,185 | 200,784 | ||||||
Monotype Imaging Holdings, Inc. | 16,307 | 325,651 | ||||||
New Relic, Inc. (a) | 19,356 | 1,803,399 | ||||||
Nuance Communications, Inc. (a) | 114,125 | 1,899,040 | ||||||
Nutanix, Inc. Class A (a) | 56,011 | 1,271,450 | ||||||
Paycom Software, Inc. (a) | 19,808 | 4,768,776 | ||||||
Paylocity Holding Corp. (a) | 13,659 | 1,394,447 | ||||||
Pegasystems, Inc. | 15,740 | 1,189,944 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 68 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
SOFTWARE – continued | ||||||||
Application Software – continued | ||||||||
Pivotal Software, Inc. Class A (a) | 26,812 | $ | 254,178 | |||||
Pluralsight, Inc. Class A (a) | 19,060 | 584,951 | ||||||
PROS Holdings, Inc. (a) | 13,395 | 969,262 | ||||||
PTC, Inc. (a) | 45,003 | 3,050,303 | ||||||
Q2 Holdings, Inc. (a) | 15,574 | 1,243,895 | ||||||
QAD, Inc. Class A | 4,110 | 177,305 | ||||||
RealPage, Inc. (a) | 31,598 | 1,974,243 | ||||||
RingCentral, Inc. Class A (a) | 28,015 | 3,977,570 | ||||||
Salesforce.com, Inc. (a) | 305,390 | 47,182,755 | ||||||
ShotSpotter, Inc. (a) | 3,065 | 115,213 | ||||||
Smartsheet, Inc. Class A (a) | 34,748 | 1,734,273 | ||||||
Splunk, Inc. (a) | 58,918 | 7,972,195 | ||||||
SPS Commerce, Inc. (a) | 7,021 | 785,158 | ||||||
SS&C Technologies Holdings, Inc. | 90,000 | 4,315,500 | ||||||
SVMK, Inc. (a) | 9,995 | 169,615 | ||||||
Synopsys, Inc. (a) | 59,674 | 7,922,320 | ||||||
The Trade Desk, Inc. Class A (a) | 14,497 | 3,817,205 | ||||||
Tyler Technologies, Inc. (a) | 15,327 | 3,576,555 | ||||||
Upland Software, Inc. (a) | 8,412 | 370,044 | ||||||
Verint Systems, Inc. (a) | 26,142 | 1,512,838 | ||||||
Workday, Inc. Class A (a) | 60,330 | 12,064,793 | ||||||
Workiva, Inc. (a) | 11,751 | 675,565 | ||||||
Yext, Inc. (a) | 22,012 | 458,070 | ||||||
Zendesk, Inc. (a) | 43,683 | 3,650,151 | ||||||
|
| |||||||
293,579,294 | ||||||||
|
| |||||||
Systems Software – 20.2% | ||||||||
A10 Networks, Inc. (a) | 21,316 | 161,575 | ||||||
Appian Corp. (a) | 9,014 | 354,160 | ||||||
Carbon Black, Inc. (a) | 6,976 | 129,823 | ||||||
CommVault Systems, Inc. (a) | 17,436 | 792,292 | ||||||
FireEye, Inc. (a) | 80,685 | 1,210,275 | ||||||
ForeScout Technologies, Inc. (a) | 12,758 | 476,639 | ||||||
Fortinet, Inc. (a) | 57,829 | 4,644,247 | ||||||
Microsoft Corp. | 2,908,910 | 396,397,166 | ||||||
OneSpan, Inc. (a) | 12,349 | 180,542 | ||||||
Oracle Corp. | 1,002,803 | 56,457,809 | ||||||
Palo Alto Networks, Inc. (a) | 37,365 | 8,464,667 | ||||||
Progress Software Corp. | 17,923 | 775,887 | ||||||
Proofpoint, Inc. (a) | 22,195 | 2,801,009 | ||||||
Qualys, Inc. (a) | 13,281 | 1,149,603 | ||||||
Rapid7, Inc. (a) | 15,964 | 968,217 | ||||||
SailPoint Technologies Holding, Inc. (a) | 31,339 | 662,506 | ||||||
SecureWorks Corp. Class A (a) | 3,102 | 37,038 | ||||||
ServiceNow, Inc. (a) | 72,062 | 19,989,278 | ||||||
Symantec Corp. | 255,748 | 5,513,927 | ||||||
Tableau Software, Inc. Class A (a) | 30,059 | 5,095,902 |
Shares | Value | |||||||
Tenable Holdings, Inc. (a) | 11,394 | $ | 285,534 | |||||
Teradata Corp. (a) | 47,252 | 1,730,368 | ||||||
TiVo Corp. | 51,953 | 393,804 | ||||||
Varonis Systems, Inc. (a) | 11,868 | 853,428 | ||||||
VMware, Inc. Class A | 33,150 | 5,784,344 | ||||||
Zscaler, Inc. (a) | 24,938 | 2,101,525 | ||||||
Zuora, Inc. Class A (a) | 26,003 | 390,305 | ||||||
|
| |||||||
517,801,870 | ||||||||
|
| |||||||
TOTAL SOFTWARE | 811,381,164 | |||||||
|
| |||||||
TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS – 17.5% |
| |||||||
Technology Hardware, Storage & Peripherals –17.5% |
| |||||||
3D Systems Corp. (a) | 44,591 | 402,211 | ||||||
Apple, Inc. | 1,881,888 | 400,917,419 | ||||||
Cray, Inc. (a) | 16,694 | 578,280 | ||||||
Dell Technologies, Inc. Class C (a) | 61,758 | 3,565,907 | ||||||
Diebold Nixdorf, Inc. (a) | 28,726 | 399,579 | ||||||
Hewlett Packard Enterprise Co. | 549,319 | 7,893,714 | ||||||
HP, Inc. | 611,518 | 12,866,339 | ||||||
NCR Corp. (a) | 47,737 | 1,613,988 | ||||||
NetApp, Inc. | 98,479 | 5,760,037 | ||||||
Pure Storage, Inc. Class A (a) | 73,325 | 1,110,140 | ||||||
Seagate Technology PLC | 101,103 | 4,682,080 | ||||||
Western Digital Corp. | 115,976 | 6,249,947 | ||||||
Xerox Corp. | 82,442 | 2,646,388 | ||||||
|
| |||||||
TOTAL TECHNOLOGY HARDWARE, STORAGE & PERIPHERALS |
| 448,686,029 | ||||||
|
| |||||||
TOTAL COMMON STOCKS | 2,569,426,232 | |||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 2.16% (b) | 1,189,000 | 1,189,000 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 100.0% |
| 2,570,615,232 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.0% |
| 748,999 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $ | 2,571,364,231 | ||||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualizedseven-day yield of the fund at period end. |
See accompanying notes which are an integral part of the financial statements.
69 | Annual Report |
Table of Contents
Fidelity® MSCI Information Technology Index ETF
Schedule of 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 | 70 |
Table of Contents
Fidelity® MSCI Materials Index ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
CHEMICALS – 66.2% | ||||||||
Commodity Chemicals – 8.7% | ||||||||
AdvanSix, Inc. (a) | 6,500 | $ | 166,660 | |||||
Cabot Corp. | 13,386 | 598,622 | ||||||
Dow, Inc. | 172,184 | 8,340,593 | ||||||
Hawkins, Inc. | 2,154 | 94,065 | ||||||
Koppers Holdings, Inc. (a) | 4,600 | 125,580 | ||||||
Kronos Worldwide, Inc. | 5,218 | 69,973 | ||||||
LyondellBasell Industries N.V. Class A | 60,523 | 5,065,170 | ||||||
Olin Corp. | 37,173 | 746,062 | ||||||
Tredegar Corp. | 5,941 | 99,037 | ||||||
Trinseo S.A. | 9,302 | 361,011 | ||||||
Tronox Holdings PLC Class A | 21,289 | 235,456 | ||||||
Valvoline, Inc. | 42,338 | 854,804 | ||||||
Westlake Chemical Corp. | 8,668 | 585,697 | ||||||
|
| |||||||
17,342,730 | ||||||||
|
| |||||||
Diversified Chemicals – 2.0% | ||||||||
Eastman Chemical Co. | 31,471 | 2,371,340 | ||||||
Huntsman Corp. | 47,335 | 972,734 | ||||||
The Chemours Co. | 37,567 | 716,403 | ||||||
|
| |||||||
4,060,477 | ||||||||
|
| |||||||
Fertilizers & Agricultural Chemicals – 6.7% |
| |||||||
American Vanguard Corp. | 6,090 | 86,965 | ||||||
CF Industries Holdings, Inc. | 50,184 | 2,487,119 | ||||||
Corteva, Inc. | 169,221 | 4,992,019 | ||||||
FMC Corp. | 29,783 | 2,573,847 | ||||||
Intrepid Potash, Inc. (a) | 22,150 | 82,841 | ||||||
The Mosaic Co. | 82,450 | 2,076,916 | ||||||
The Scotts Miracle-Gro Co. | 9,356 | 1,049,556 | ||||||
|
| |||||||
13,349,263 | ||||||||
|
| |||||||
Industrial Gases – 17.6% | ||||||||
Air Products & Chemicals, Inc. | 49,450 | 11,287,951 | ||||||
Linde PLC | 124,071 | 23,732,301 | ||||||
|
| |||||||
35,020,252 | ||||||||
|
| |||||||
Specialty Chemicals – 31.2% | ||||||||
A Schulman, Inc. Class A (b) | 8,906 | 3,856 | ||||||
Albemarle Corp. | 23,811 | 1,737,251 | ||||||
Amyris, Inc. (a) | 8,753 | 27,047 | ||||||
Ashland Global Holdings, Inc. | 14,108 | 1,121,304 | ||||||
Axalta Coating Systems Ltd. (a) | 47,488 | 1,407,069 | ||||||
Balchem Corp. | 7,252 | 744,345 | ||||||
Celanese Corp. | 28,842 | 3,235,207 | ||||||
Chase Corp. | 1,690 | 175,050 | ||||||
DuPont de Nemours, Inc. | 169,221 | 12,210,987 | ||||||
Ecolab, Inc. | 58,536 | 11,808,467 | ||||||
Element Solutions, Inc. (a) | 51,140 | 512,423 | ||||||
Ferro Corp. (a) | 17,750 | 261,458 | ||||||
FutureFuel Corp. | 5,848 | 68,129 | ||||||
GCP Applied Technologies, Inc. (a) | 14,686 | 323,533 | ||||||
HB Fuller Co. | 11,446 | 547,233 | ||||||
Ingevity Corp. (a) | 9,380 | 924,305 |
Shares | Value | |||||||
Innophos Holdings, Inc. | 4,394 | $ | 119,385 | |||||
Innospec, Inc. | 5,497 | 513,310 | ||||||
International Flavors & Fragrances, Inc. | 22,808 | 3,284,124 | ||||||
Kraton Corp. (a) | 7,167 | 219,812 | ||||||
Livent Corp. (a) | 33,021 | 212,655 | ||||||
Minerals Technologies, Inc. | 7,935 | 422,539 | ||||||
NewMarket Corp. | 2,018 | 850,809 | ||||||
OMNOVA Solutions, Inc. (a) | 10,078 | 100,276 | ||||||
PolyOne Corp. | 17,491 | 573,180 | ||||||
PPG Industries, Inc. | 53,113 | 6,234,935 | ||||||
PQ Group Holdings, Inc. (a) | 9,158 | 142,773 | ||||||
Quaker Chemical Corp. | 3,001 | 562,357 | ||||||
Rayonier Advanced Materials, Inc. | 11,562 | 53,763 | ||||||
RPM International, Inc. | 29,640 | 2,010,481 | ||||||
Sensient Technologies Corp. | 9,512 | 648,433 | ||||||
Stepan Co. | 4,563 | 452,422 | ||||||
The Sherwin-Williams Co. | 18,788 | 9,638,996 | ||||||
Venator Materials PLC (a) | 12,014 | 46,014 | ||||||
WR Grace & Co. | 13,545 | 918,487 | ||||||
|
| |||||||
62,112,415 | ||||||||
|
| |||||||
TOTAL CHEMICALS | 131,885,137 | |||||||
|
| |||||||
CONSTRUCTION MATERIALS – 4.6% |
| |||||||
Construction Materials – 4.6% | ||||||||
Eagle Materials, Inc. | 10,346 | 856,442 | ||||||
Martin Marietta Materials, Inc. | 14,056 | 3,482,374 | ||||||
Summit Materials, Inc. Class A (a) | 25,140 | 463,582 | ||||||
United States Lime & Minerals, Inc. | 505 | 40,844 | ||||||
US Concrete, Inc. (a) | 3,546 | 166,981 | ||||||
Vulcan Materials Co. | 29,682 | 4,106,505 | ||||||
|
| |||||||
TOTAL CONSTRUCTION MATERIALS |
| 9,116,728 | ||||||
|
| |||||||
CONTAINERS & PACKAGING – 14.8% |
| |||||||
Metal & Glass Containers – 5.8% | ||||||||
Aptargroup, Inc. | 14,188 | 1,717,032 | ||||||
Ball Corp. | 71,513 | 5,111,749 | ||||||
Berry Plastics Group, Inc. (a) | 29,341 | 1,321,812 | ||||||
Crown Holdings, Inc. (a) | 30,472 | 1,950,513 | ||||||
Greif, Inc. Class A | 5,844 | 204,306 | ||||||
Greif, Inc. Class B | 995 | 42,785 | ||||||
Myers Industries, Inc. | 7,126 | 115,227 | ||||||
Owens-Illinois, Inc. | 34,559 | 586,466 | ||||||
Silgan Holdings, Inc. | 17,384 | 522,563 | ||||||
|
| |||||||
11,572,453 | ||||||||
|
| |||||||
Paper Packaging – 9.0% | ||||||||
Amcor PLC (a) | 365,438 | 3,873,643 | ||||||
Avery Dennison Corp. | 18,908 | 2,171,962 | ||||||
Graphic Packaging Holding Co. | 66,987 | 995,427 | ||||||
International Paper Co. | 85,608 | 3,759,047 |
See accompanying notes which are an integral part of the financial statements.
71 | Annual Report |
Table of Contents
Fidelity® MSCI Materials Index ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
CONTAINERS & PACKAGING – continued |
| |||||||
Paper Packaging – continued | ||||||||
Packaging Corp. of America | 21,276 | $ | 2,148,238 | |||||
Sealed Air Corp. | 35,047 | 1,464,614 | ||||||
Sonoco Products Co. | 22,477 | 1,349,294 | ||||||
Westrock Co. | 57,497 | 2,072,767 | ||||||
|
| |||||||
17,834,992 | ||||||||
|
| |||||||
TOTAL CONTAINERS & PACKAGING | 29,407,445 | |||||||
|
| |||||||
METALS & MINING – 12.9% | ||||||||
Aluminum – 0.7% | ||||||||
Alcoa Corp. (a) | 41,805 | 940,194 | ||||||
Century Aluminum Co. (a) | 11,856 | 85,245 | ||||||
Kaiser Aluminum Corp. | 3,619 | 348,401 | ||||||
|
| |||||||
1,373,840 | ||||||||
|
| |||||||
Copper – 1.8% | ||||||||
Freeport-McMoRan, Inc. | 326,257 | 3,608,403 | ||||||
|
| |||||||
Diversified Metals & Mining – 0.4% | ||||||||
Compass Minerals International, Inc. | 7,621 | 425,633 | ||||||
Materion Corp. | 4,554 | 282,940 | ||||||
|
| |||||||
708,573 | ||||||||
|
| |||||||
Gold – 4.4% | ||||||||
Coeur Mining, Inc. (a) | 45,587 | 209,700 | ||||||
McEwen Mining, Inc. | 61,730 | 106,793 | ||||||
Newmont Mining Corp. | 184,146 | 6,725,012 | ||||||
Royal Gold, Inc. | 14,753 | 1,688,481 | ||||||
|
| |||||||
8,729,986 | ||||||||
|
| |||||||
Silver – 0.1% | ||||||||
Hecla Mining Co. | 108,299 | 200,353 | ||||||
|
| |||||||
Steel – 5.5% | ||||||||
AK Steel Holding Corp. (a) | 70,924 | 200,006 | ||||||
Allegheny Technologies, Inc. (a) | 28,265 | 615,329 | ||||||
Carpenter Technology Corp. | 10,655 | 479,582 | ||||||
Cleveland-Cliffs, Inc. | 65,851 | 701,972 | ||||||
Commercial Metals Co. | 26,492 | 463,875 | ||||||
Haynes International, Inc. | 2,841 | 84,548 | ||||||
Nucor Corp. | 68,804 | 3,741,561 | ||||||
Reliance Steel & Aluminum Co. | 15,107 | 1,509,945 | ||||||
Ryerson Holding Corp. (a) | 3,789 | 30,918 | ||||||
Schnitzer Steel Industries, Inc. Class A | 6,015 | 160,179 | ||||||
Steel Dynamics, Inc. | 50,467 | 1,590,215 | ||||||
SunCoke Energy, Inc. (a) | 20,220 | 153,470 | ||||||
TimkenSteel Corp. (a) | 8,551 | 59,771 | ||||||
United States Steel Corp. | 38,989 | 586,005 |
Shares | Value | |||||||
Warrior Met Coal, Inc. | 10,484 | $ | 259,374 | |||||
Worthington Industries, Inc. | 9,100 | 366,002 | ||||||
|
| |||||||
11,002,752 | ||||||||
|
| |||||||
TOTAL METALS & MINING | 25,623,907 | |||||||
|
| |||||||
PAPER & FOREST PRODUCTS – 1.3% |
| |||||||
Forest Products – 0.5% | ||||||||
Boise Cascade Co. | 8,714 | 235,278 | ||||||
Louisiana-Pacific Corp. | 30,526 | 797,950 | ||||||
|
| |||||||
1,033,228 | ||||||||
|
| |||||||
Paper Products – 0.8% | ||||||||
Clearwater Paper Corp. (a) | 3,671 | 72,062 | ||||||
Domtar Corp. | 14,151 | 600,710 | ||||||
Mercer International, Inc. | 9,503 | 123,824 | ||||||
Neenah Paper, Inc. | 3,794 | 249,304 | ||||||
PH Glatfelter Co. | 9,874 | 161,143 | ||||||
Resolute Forest Products, Inc. | 13,362 | 81,508 | ||||||
Schweitzer-Mauduit International, Inc. | 6,932 | 238,669 | ||||||
Verso Corp. Class A (a) | 7,785 | 125,961 | ||||||
|
| |||||||
1,653,181 | ||||||||
|
| |||||||
TOTAL PAPER & FOREST PRODUCTS |
| 2,686,409 | ||||||
|
| |||||||
TOTAL COMMON STOCKS | 198,719,626 | |||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 2.16% (c) | 136,000 | 136,000 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 99.9% |
| 198,855,626 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 187,585 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $ | 199,043,211 | ||||||
|
|
Legend
(a) | Non-income producing. |
(b) | Level 3 security. |
(c) | The rate quoted is the annualizedseven-day yield of the fund at period end. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 72 |
Table of Contents
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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 | $ | 198,719,626 | $ | 198,715,770 | $ | — | $ | 3,856 | ||||||||
Money Market Funds | 136,000 | 136,000 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 198,855,626 | $ | 198,851,770 | $ | — | $ | 3,856 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
73 | Annual Report |
Table of Contents
Fidelity® MSCI Real Estate Index ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) – 96.3% |
| |||||||
Diversified REITs – 5.0% | ||||||||
Alexander & Baldwin, Inc. | 48,874 | $ | 1,149,028 | |||||
American Assets Trust, Inc. | 34,592 | 1,605,069 | ||||||
Armada Hoffler Properties, Inc. | 35,806 | 606,195 | ||||||
Colony Capital, Inc. | 330,921 | 1,869,704 | ||||||
Empire State Realty Trust, Inc. Class A | 105,186 | 1,473,656 | ||||||
Essential Properties Realty Trust, Inc. | 51,360 | 1,084,723 | ||||||
Gladstone Commercial Corp. | 21,147 | 449,585 | ||||||
Global Net Lease, Inc. | 59,568 | 1,162,767 | ||||||
iStar, Inc. | 49,078 | 647,830 | ||||||
Lexington Realty Trust | 149,259 | 1,473,186 | ||||||
Liberty Property Trust | 104,440 | 5,462,212 | ||||||
One Liberty Properties, Inc. | 10,554 | 302,478 | ||||||
PS Business Parks, Inc. | 14,475 | 2,533,125 | ||||||
STORE Capital Corp. | 142,518 | 4,875,541 | ||||||
VEREIT, Inc. | 683,207 | 6,230,848 | ||||||
Washington Real Estate Investment Trust | 56,516 | 1,523,106 | ||||||
WP Carey, Inc. | 117,307 | 10,151,748 | ||||||
|
| |||||||
42,600,801 | ||||||||
|
| |||||||
Health Care REITs – 9.6% | ||||||||
CareTrust REIT, Inc. | 62,723 | 1,457,055 | ||||||
Community Healthcare Trust, Inc. | 12,754 | 524,062 | ||||||
HCP, Inc. | 337,280 | 10,769,351 | ||||||
Healthcare Realty Trust, Inc. | 88,447 | 2,828,535 | ||||||
Healthcare Trust of America, Inc. Class A | 144,925 | 3,902,830 | ||||||
LTC Properties, Inc. | 28,080 | 1,294,207 | ||||||
Medical Properties Trust, Inc. | 309,956 | 5,424,230 | ||||||
National Health Investors, Inc. | 30,175 | 2,395,292 | ||||||
New Senior Investment Group, Inc. | 58,797 | 419,223 | ||||||
Omega Healthcare Investors, Inc. | 151,408 | 5,496,110 | ||||||
Physicians Realty Trust | 129,531 | 2,229,229 | ||||||
Sabra Health Care REIT, Inc. | 125,973 | 2,600,083 | ||||||
Senior Housing Properties Trust | 166,617 | 1,366,259 | ||||||
Universal Health Realty Income Trust | 9,376 | 864,092 | ||||||
Ventas, Inc. | 251,449 | 16,920,003 | ||||||
Welltower, Inc. | 272,502 | 22,650,366 | ||||||
|
| |||||||
81,140,927 | ||||||||
|
| |||||||
Hotel & Resort REITs – 4.3% | ||||||||
Apple Hospitality REIT, Inc. | 150,036 | 2,357,065 | ||||||
Ashford Hospitality Trust, Inc. | 68,370 | 185,283 | ||||||
Braemar Hotels & Resorts, Inc. | 19,150 | 174,648 | ||||||
Chatham Lodging Trust | 33,396 | 596,453 | ||||||
Chesapeake Lodging Trust | 43,058 | 1,182,803 | ||||||
CorePoint Lodging, Inc. | 30,287 | 355,266 | ||||||
DiamondRock Hospitality Co. | 142,726 | 1,437,251 | ||||||
Hersha Hospitality Trust | 26,438 | 412,962 | ||||||
Hospitality Properties Trust | 116,090 | 2,868,584 | ||||||
Host Hotels & Resorts, Inc. | 522,734 | 9,090,344 |
Shares | Value | |||||||
MGM Growth Properties LLC Class A | 64,226 | $ | 1,917,788 | |||||
Park Hotels & Resorts, Inc. | 142,351 | 3,759,490 | ||||||
Pebblebrook Hotel Trust | 91,994 | 2,574,912 | ||||||
RLJ Lodging Trust | 123,757 | 2,138,521 | ||||||
Ryman Hospitality Properties, Inc. | 34,577 | 2,593,275 | ||||||
Summit Hotel Properties, Inc. | 74,654 | 829,406 | ||||||
Sunstone Hotel Investors, Inc. | 161,133 | 2,128,567 | ||||||
Xenia Hotels & Resorts, Inc. | 80,021 | 1,714,850 | ||||||
|
| |||||||
36,317,468 | ||||||||
|
| |||||||
Industrial REITs – 7.7% | ||||||||
Americold Realty Trust | 123,482 | 4,140,351 | ||||||
Duke Realty Corp. | 253,603 | 8,452,588 | ||||||
EastGroup Properties, Inc. | 25,732 | 3,100,191 | ||||||
First Industrial Realty Trust, Inc. | 89,290 | 3,409,985 | ||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 43,990 | 1,207,526 | ||||||
Industrial Logistics Properties Trust | 46,278 | 989,424 | ||||||
Monmouth Real Estate Investment Corp. Class A | 62,279 | 858,827 | ||||||
Prologis, Inc. | 444,588 | 35,838,239 | ||||||
Rexford Industrial Realty, Inc. | 68,347 | 2,829,566 | ||||||
STAG Industrial, Inc. | 79,349 | 2,358,252 | ||||||
Terreno Realty Corp. | 43,386 | 2,119,840 | ||||||
|
| |||||||
65,304,789 | ||||||||
|
| |||||||
Office REITs – 9.4% | ||||||||
Alexandria Real Estate Equities, Inc. | 79,576 | 11,646,743 | ||||||
Boston Properties, Inc. | 109,043 | 14,497,267 | ||||||
Brandywine Realty Trust | 124,291 | 1,833,292 | ||||||
Columbia Property Trust, Inc. | 83,046 | 1,821,199 | ||||||
Corporate Office Properties Trust | 77,682 | 2,168,881 | ||||||
Cousins Properties, Inc. | 102,588 | 3,609,046 | ||||||
Douglas Emmett, Inc. | 114,204 | 4,661,807 | ||||||
Easterly Government Properties, Inc. | 43,102 | 813,335 | ||||||
Equity Commonwealth | 85,745 | 2,879,317 | ||||||
Franklin Street Properties Corp. | 76,867 | 619,548 | ||||||
Highwoods Properties, Inc. | 73,209 | 3,318,564 | ||||||
Hudson Pacific Properties, Inc. | 109,020 | 3,848,406 | ||||||
JBG SMITH Properties | 82,362 | 3,222,825 | ||||||
Kilroy Realty Corp. | 71,210 | 5,658,347 | ||||||
Mack-Cali Realty Corp. | 63,701 | 1,514,810 | ||||||
NorthStar Realty Europe Corp. | 28,470 | 483,990 | ||||||
Office Properties Income Trust | 34,415 | 969,471 | ||||||
Paramount Group, Inc. | 131,880 | 1,823,900 | ||||||
Piedmont Office Realty Trust, Inc. Class A | 88,791 | 1,847,741 | ||||||
SL Green Realty Corp. | 59,076 | 4,789,882 | ||||||
Vornado Realty Trust | 121,062 | 7,786,708 | ||||||
|
| |||||||
79,815,079 | ||||||||
|
| |||||||
Residential REITs – 14.5% | ||||||||
American Campus Communities, Inc. | 96,766 | 4,523,811 | ||||||
American Homes 4 Rent Class A | 187,906 | 4,549,204 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 74 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) – continued |
| |||||||
Residential REITs – continued | ||||||||
Apartment Investment & Management Co. Class A | 104,202 | $ | 5,162,167 | |||||
AvalonBay Communities, Inc. | 97,692 | 20,397,113 | ||||||
Camden Property Trust | 68,213 | 7,074,370 | ||||||
Equity Lifestyle Properties, Inc. | 60,342 | 7,497,493 | ||||||
Equity Residential | 260,917 | 20,583,742 | ||||||
Essex Property Trust, Inc. | 46,375 | 14,015,452 | ||||||
Front Yard Residential Corp. | 36,572 | 439,230 | ||||||
Independence Realty Trust, Inc. | 63,710 | 786,819 | ||||||
Investors Real Estate Trust | 8,383 | 534,416 | ||||||
Invitation Homes, Inc. | 314,538 | 8,640,359 | ||||||
Mid-America Apartment Communities, Inc. | 80,404 | 9,474,807 | ||||||
NexPoint Residential Trust, Inc. | 13,415 | 578,991 | ||||||
Preferred Apartment Communities, Inc. Class A | 29,775 | 431,440 | ||||||
Sun Communities, Inc. | 60,971 | 8,097,559 | ||||||
UDR, Inc. | 194,562 | 8,961,526 | ||||||
UMH Properties, Inc. | 24,343 | 320,110 | ||||||
|
| |||||||
122,068,609 | ||||||||
|
| |||||||
Retail REITs – 12.9% | ||||||||
Acadia Realty Trust | 57,522 | 1,614,643 | ||||||
Agree Realty Corp. | 26,646 | 1,781,285 | ||||||
Alexander’s, Inc. | 1,649 | 617,550 | ||||||
American Finance Trust, Inc. | 75,168 | 880,217 | ||||||
Brixmor Property Group, Inc. | 210,938 | 4,003,603 | ||||||
Cedar Realty Trust, Inc. | 63,242 | 175,813 | ||||||
Federal Realty Investment Trust | 52,503 | 6,930,921 | ||||||
Getty Realty Corp. | 24,568 | 736,549 | ||||||
Kimco Realty Corp. | 297,471 | 5,714,418 | ||||||
Kite Realty Group Trust | 59,612 | 948,427 | ||||||
National Retail Properties, Inc. | 114,099 | 5,960,532 | ||||||
Pennsylvania Real Estate Investment Trust | 48,338 | 289,061 | ||||||
Realty Income Corp. | 214,465 | 14,843,123 | ||||||
Regency Centers Corp. | 118,248 | 7,887,142 | ||||||
Retail Opportunity Investments Corp. | 80,630 | 1,462,628 | ||||||
Retail Properties of America, Inc. Class A | 150,831 | 1,834,105 | ||||||
Retail Value, Inc. | 10,578 | 398,156 | ||||||
RPT Realty | 57,188 | 700,553 | ||||||
Saul Centers, Inc. | 9,696 | 531,244 | ||||||
Seritage Growth Properties, Class A | 24,014 | 1,003,065 | ||||||
Simon Property Group, Inc. | 217,911 | 35,345,164 | ||||||
SITE Centers Corp. | 102,149 | 1,455,623 | ||||||
Spirit MTA REIT | 31,391 | 263,998 | ||||||
Spirit Realty Capital, Inc. | 60,793 | 2,682,187 | ||||||
Tanger Factory Outlet Centers, Inc. | 66,051 | 1,048,890 | ||||||
Taubman Centers, Inc. | 43,189 | 1,750,018 |
Shares | Value | |||||||
The Macerich Co. | 79,728 | $ | 2,635,010 | |||||
Urban Edge Properties | 80,933 | 1,354,009 | ||||||
Urstadt Biddle Properties, Inc. Class A | 21,106 | 455,679 | ||||||
Washington Prime Group, Inc. | 131,592 | 477,679 | ||||||
Weingarten Realty Investors | 86,073 | 2,402,297 | ||||||
Whitestone REIT | 26,032 | 331,908 | ||||||
|
| |||||||
108,515,497 | ||||||||
|
| |||||||
Specialized REITs – 32.9% | ||||||||
American Tower Corp. | 311,135 | 65,842,389 | ||||||
CatchMark Timber Trust, Inc. Class A | 35,134 | 356,961 | ||||||
CoreCivic, Inc. | 84,309 | 1,430,724 | ||||||
CorEnergy Infrastructure Trust, Inc. | 9,279 | 375,521 | ||||||
CoreSite Realty Corp. | 25,921 | 2,716,780 | ||||||
Crown Castle International Corp. | 293,105 | 39,059,172 | ||||||
CubeSmart | 132,125 | 4,485,644 | ||||||
CyrusOne, Inc. | 76,419 | 4,386,451 | ||||||
Digital Realty Trust, Inc. | 146,580 | 16,762,889 | ||||||
EPR Properties | 52,500 | 3,907,575 | ||||||
Equinix, Inc. | 56,936 | 28,587,566 | ||||||
Extra Space Storage, Inc. | 89,873 | 10,100,826 | ||||||
Four Corners Property Trust, Inc. | 48,328 | 1,301,956 | ||||||
Gaming and Leisure Properties, Inc. | 143,952 | 5,428,430 | ||||||
Iron Mountain, Inc. | 202,155 | 5,945,379 | ||||||
Lamar Advertising Co. Class A | 60,125 | 4,865,315 | ||||||
Life Storage, Inc. | 32,966 | 3,213,855 | ||||||
National Storage Affiliates Trust | 40,429 | 1,224,594 | ||||||
Outfront Media, Inc. | 99,275 | 2,698,294 | ||||||
PotlatchDeltic Corp. | 48,193 | 1,774,466 | ||||||
Public Storage | 110,765 | 26,889,311 | ||||||
QTS Realty Trust, Inc. Class A | 38,807 | 1,795,988 | ||||||
Rayonier, Inc. | 91,569 | 2,659,164 | ||||||
SBA Communications Corp. (a) | 79,300 | 19,461,013 | ||||||
The Geo Group, Inc. | 85,197 | 1,517,359 | ||||||
Uniti Group, Inc. | 127,142 | 1,070,536 | ||||||
VICI Properties, Inc. | 285,717 | 6,097,201 | ||||||
Weyerhaeuser Co. | 527,008 | 13,391,273 | ||||||
|
| |||||||
277,346,632 | ||||||||
|
| |||||||
TOTAL EQUITY REAL ESTATE INVESTMENT TRUSTS (REITS) |
| 813,109,802 | ||||||
|
| |||||||
REAL ESTATE MANAGEMENT & DEVELOPMENT – 3.6% |
| |||||||
Diversified Real Estate Activities – 0.2% |
| |||||||
Five Point Holdings LLC Class A (a) | 35,785 | 279,481 | ||||||
Tejon Ranch Co. (a) | 15,453 | 286,344 | ||||||
The RMR Group, Inc. Class A | 10,836 | 533,565 | ||||||
The St Joe Co. (a) | 26,095 | 502,068 | ||||||
|
| |||||||
1,601,458 | ||||||||
|
| |||||||
Real Estate Development – 0.5% | ||||||||
Forestar Group, Inc. (a) | 7,335 | 151,541 | ||||||
The Howard Hughes Corp. (a) | 28,826 | 3,891,510 | ||||||
|
| |||||||
4,043,051 | ||||||||
|
|
See accompanying notes which are an integral part of the financial statements.
75 | Annual Report |
Table of Contents
Fidelity® MSCI Real Estate Index ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE MANAGEMENT & |
| |||||||
Real Estate Operating Companies – 0.3% |
| |||||||
FRP Holdings, Inc. (a) | 5,040 | $ | 249,883 | |||||
Kennedy-Wilson Holdings, Inc. | 91,546 | 1,970,070 | ||||||
|
| |||||||
2,219,953 | ||||||||
|
| |||||||
Real Estate Services – 2.6% | ||||||||
Altisource Portfolio Solutions S.A. (a) | 4,801 | 100,821 | ||||||
CBRE Group, Inc. Class A (a) | 228,611 | 12,118,669 | ||||||
Cushman & Wakefield PLC (a) | 69,436 | 1,377,610 | ||||||
eXp World Holdings, Inc. (a) | 15,377 | 162,535 | ||||||
Jones Lang LaSalle, Inc. | 36,359 | 5,297,143 | ||||||
Marcus & Millichap, Inc. (a) | 16,572 | 550,191 | ||||||
Newmark Group, Inc. Class A | 93,905 | 925,903 | ||||||
RE/MAX Holdings, Inc. Class A | 12,727 | 370,101 | ||||||
Realogy Holdings Corp. | 80,897 | 421,473 | ||||||
Redfin Corp. (a) | 51,823 | 934,887 | ||||||
|
| |||||||
22,259,333 | ||||||||
|
| |||||||
TOTAL REAL ESTATE MANAGEMENT & |
| 30,123,795 | ||||||
|
| |||||||
TOTAL COMMON STOCKS | 843,233,597 | |||||||
|
|
Money Market Funds – 0.1% | ||||||||
Shares | Value | |||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 2.16% (b) | 398,000 | $ | 398,000 | |||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 100.0% |
| 843,631,597 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.0% |
| 371,286 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $ | 844,002,883 | ||||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualizedseven-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 | 76 |
Table of Contents
Fidelity® MSCI Utilities Index ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
ELECTRIC UTILITIES – 56.2% | ||||||||
Electric Utilities – 56.2% | ||||||||
ALLETE, Inc. | 40,298 | $ | 3,503,911 | |||||
Alliant Energy Corp. | 184,539 | 9,142,062 | ||||||
American Electric Power Co., Inc. | 385,671 | 33,865,771 | ||||||
Duke Energy Corp. | 568,400 | 49,291,648 | ||||||
Edison International | 254,731 | 18,987,649 | ||||||
El Paso Electric Co. | 31,756 | 2,104,153 | ||||||
Entergy Corp. | 148,223 | 15,655,313 | ||||||
Evergy, Inc. | 199,112 | 12,044,285 | ||||||
Eversource Energy | 247,823 | 18,799,853 | ||||||
Exelon Corp. | 758,181 | 34,163,636 | ||||||
FirstEnergy Corp. | 414,493 | 18,225,257 | ||||||
Hawaiian Electric Industries, Inc. | 85,145 | 3,814,496 | ||||||
IDACORP, Inc. | 39,392 | 4,020,348 | ||||||
MGE Energy, Inc. | 27,055 | 2,006,128 | ||||||
NextEra Energy, Inc. | 373,844 | 77,449,261 | ||||||
OGE Energy Corp. | 156,219 | 6,709,606 | ||||||
Otter Tail Corp. | 27,908 | 1,489,729 | ||||||
Pinnacle West Capital Corp. | 87,683 | 7,998,443 | ||||||
PNM Resources, Inc. | 62,309 | 3,094,888 | ||||||
Portland General Electric Co. | 69,807 | 3,828,914 | ||||||
PPL Corp. | 563,653 | 16,701,038 | ||||||
The Southern Co. | 808,856 | 45,457,707 | ||||||
Xcel Energy, Inc. | 402,026 | 23,964,770 | ||||||
|
| |||||||
TOTAL ELECTRIC UTILITIES | 412,318,866 | |||||||
|
| |||||||
GAS UTILITIES – 5.4% | ||||||||
Gas Utilities – 5.4% | ||||||||
Atmos Energy Corp. | 91,363 | 9,962,222 | ||||||
Chesapeake Utilities Corp. | 12,781 | �� | 1,194,512 | |||||
National Fuel Gas Co. | 60,741 | 2,899,775 | ||||||
New Jersey Resources Corp. | 69,428 | 3,462,374 | ||||||
Northwest Natural Holding Co. | 22,511 | 1,607,736 | ||||||
ONE Gas, Inc. | 41,114 | 3,748,775 | ||||||
South Jersey Industries, Inc. | 72,279 | 2,461,100 | ||||||
Southwest Gas Holdings, Inc. | 41,510 | 3,690,654 | ||||||
Spire, Inc. | 39,688 | 3,270,688 | ||||||
Star Group LP | 38,649 | 371,803 | ||||||
UGI Corp. | 135,950 | 6,945,686 | ||||||
|
| |||||||
TOTAL GAS UTILITIES | 39,615,325 | |||||||
|
| |||||||
INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS – 4.1% |
| |||||||
Independent Power Producers & Energy |
| |||||||
AES Corp. | 517,849 | 8,694,685 | ||||||
Clearway Energy, Inc. Class A | 26,850 | 461,015 | ||||||
Clearway Energy, Inc. Class C | 57,120 | 1,029,302 | ||||||
NRG Energy, Inc. | 219,724 | 7,501,377 | ||||||
Vistra Energy Corp. | 285,059 | 6,117,366 | ||||||
|
| |||||||
23,803,745 | ||||||||
|
|
Shares | Value | |||||||
Renewable Electricity – 0.9% | ||||||||
NextEra Energy Partners LP | 43,930 | $ | 2,136,755 | |||||
Ormat Technologies, Inc. | 29,659 | 1,944,148 | ||||||
Pattern Energy Group, Inc. Class A | 68,900 | 1,579,877 | ||||||
TerraForm Power, Inc. Class A | 48,875 | 753,164 | ||||||
|
| |||||||
6,413,944 | ||||||||
|
| |||||||
TOTAL INDEPENDENT POWER AND RENEWABLE ELECTRICITY PRODUCERS |
| 30,217,689 | ||||||
|
| |||||||
MULTI-UTILITIES – 30.0% | ||||||||
Multi-Utilities – 30.0% | ||||||||
Ameren Corp. | 191,270 | 14,477,226 | ||||||
Avista Corp. | 51,287 | 2,360,740 | ||||||
Black Hills Corp. | 46,920 | 3,713,718 | ||||||
CenterPoint Energy, Inc. | 391,950 | 11,370,469 | ||||||
CMS Energy Corp. | 221,591 | 12,901,028 | ||||||
Consolidated Edison, Inc. | 251,031 | 21,327,594 | ||||||
Dominion Energy, Inc. | 624,930 | 46,426,050 | ||||||
DTE Energy Co. | 142,236 | 18,079,618 | ||||||
MDU Resources Group, Inc. | 153,697 | 4,109,858 | ||||||
NiSource, Inc. | 291,226 | 8,646,500 | ||||||
NorthWestern Corp. | 39,398 | 2,754,708 | ||||||
Public Service Enterprise Group, Inc. | 395,174 | 22,584,194 | ||||||
Sempra Energy | 214,253 | 29,016,284 | ||||||
Unitil Corp. | 11,691 | 684,742 | ||||||
WEC Energy Group, Inc. | 246,637 | 21,077,598 | ||||||
|
| |||||||
TOTAL MULTI-UTILITIES | 219,530,327 | |||||||
|
| |||||||
WATER UTILITIES – 4.2% | ||||||||
Water Utilities – 4.2% | ||||||||
American States Water Co. | 28,701 | 2,223,466 | ||||||
American Water Works Co., Inc. | 141,317 | 16,220,365 | ||||||
Aqua America, Inc. | 164,748 | 6,911,179 | ||||||
AquaVenture Holdings Ltd. (a) | 14,475 | 249,404 | ||||||
California Water Service Group | 37,510 | 2,002,659 | ||||||
Connecticut Water Service, Inc. | 9,467 | 661,743 | ||||||
Middlesex Water Co. | 12,798 | 801,539 | ||||||
SJW Group | 18,856 | 1,223,566 | ||||||
The York Water Co. | 10,163 | 365,563 | ||||||
|
| |||||||
TOTAL WATER UTILITIES | 30,659,484 | |||||||
|
| |||||||
TOTAL COMMON STOCKS | 732,341,691 | |||||||
|
|
See accompanying notes which are an integral part of the financial statements.
77 | Annual Report |
Table of Contents
Fidelity® MSCI Utilities Index ETF
Schedule of Investments – continued
Money Market Funds – 0.1% | ||||||||
Shares | Value | |||||||
State Street Institutional Treasury Plus Money Market Fund, Trust Class, 2.16% (b) | 618,000 | $ | 618,000 | |||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 100.0% |
| 732,959,691 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.0% |
| 230,473 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $ | 733,190,164 | ||||||
|
|
Legend
(a) | Non-income producing. |
(b) | The rate quoted is the annualizedseven-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 | 78 |
Table of Contents
[THIS PAGE INTENTIONALLY LEFT BLANK]
79 | Annual Report |
Table of Contents
Statements of Assets and Liabilities | ||||||||||||||||
July 31, 2019 | ||||||||||||||||
Fidelity MSCI Index ETF | Fidelity MSCI Consumer Discretionary Index ETF | Fidelity MSCI Staples Index ETF | Fidelity MSCI Index ETF | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at value – See accompanying schedule | $ | 374,416,712 | $ | 728,162,472 | $ | 546,956,387 | $ | 467,164,071 | ||||||||
Cash | 383 | 233 | 602 | 214 | ||||||||||||
Receivable for investments sold | — | 1,875,537 | 35,168,852 | 18,593 | ||||||||||||
Receivable for fund shares sold | — | 30,949 | 17,692 | — | ||||||||||||
Dividends receivable | 409,186 | 331,584 | 804,306 | 477,890 | ||||||||||||
Interest receivable | 420 | 880 | 733 | 425 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 374,826,701 | 730,401,655 | 582,948,572 | 467,661,193 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Payable for investments purchased | 408,531 | 1,894,045 | 34,840,142 | — | ||||||||||||
Payable for fund shares redeemed | 4,312 | — | — | — | ||||||||||||
Accrued management fees | 25,094 | 50,561 | 38,486 | 33,078 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 437,937 | 1,944,606 | 34,878,628 | 33,078 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 374,388,764 | $ | 728,457,049 | $ | 548,069,944 | $ | 467,628,115 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets consist of: | ||||||||||||||||
Paid in capital | 365,532,168 | 720,552,683 | 538,590,615 | 638,246,703 | ||||||||||||
Total distributable earnings (loss) | 8,856,596 | 7,904,366 | 9,479,329 | (170,618,588 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 374,388,764 | $ | 728,457,049 | $ | 548,069,944 | $ | 467,628,115 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 10,900,000 | 15,750,000 | 15,400,000 | 27,850,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Asset Value, offering price and redemption price per share | $ | 34.35 | $ | 46.25 | $ | 35.59 | $ | 16.79 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Investments at cost | $ | 338,584,868 | $ | 696,479,619 | $ | 525,053,953 | $ | 582,589,505 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 80 |
Table of Contents
Statements of Assets and Liabilities | ||||||||||||||||
July 31, 2019 | ||||||||||||||||
Fidelity MSCI Index ETF | Fidelity MSCI Health Care Index ETF | Fidelity MSCI Index ETF | Fidelity MSCI Index ETF | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at value – See accompanying schedule | $ | 1,143,164,517 | $ | 1,556,016,199 | $ | 454,284,172 | $ | 2,570,615,232 | ||||||||
Cash | 615 | 35,301 | 256 | 494 | ||||||||||||
Receivable for investments sold | — | — | — | 11,892,843 | ||||||||||||
Receivable for fund shares sold | — | — | — | 122,286 | ||||||||||||
Dividends receivable | 772,378 | 1,369,138 | 282,712 | 495,381 | ||||||||||||
Interest receivable | 1,376 | 2,535 | 648 | 6,510 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 1,143,938,886 | 1,557,423,173 | 454,567,788 | 2,583,132,746 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Payable for investments purchased | — | 34,464 | 51,521 | 11,590,854 | ||||||||||||
Payable for fund shares redeemed | — | 25,799 | 13,357 | — | ||||||||||||
Accrued management fees | 80,418 | 110,447 | 31,854 | 177,661 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 80,418 | 170,710 | 96,732 | 11,768,515 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 1,143,858,468 | $ | 1,557,252,463 | $ | 454,471,056 | $ | 2,571,364,231 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets consist of: | ||||||||||||||||
Paid in capital | 1,097,197,228 | 1,473,483,351 | 458,069,680 | 2,082,732,464 | ||||||||||||
Total distributable earnings (loss) | 46,661,240 | 83,769,112 | (3,598,624 | ) | 488,631,767 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 1,143,858,468 | $ | 1,557,252,463 | $ | 454,471,056 | $ | 2,571,364,231 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 27,750,000 | 35,050,000 | 11,350,000 | 39,850,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Asset Value, offering price and redemption price per share | $ | 41.22 | $ | 44.43 | $ | 40.04 | $ | 64.53 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Investments at cost | $ | 1,083,946,227 | $ | 1,443,479,621 | $ | 450,479,683 | $ | 2,051,037,067 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
81 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Assets and Liabilities | ||||||||||||
July 31, 2019 | ||||||||||||
Fidelity MSCI Index ETF | Fidelity MSCI Real Estate Index ETF | Fidelity MSCI Index ETF | ||||||||||
Assets | ||||||||||||
Investments in securities, at value – See accompanying schedule | $ | 198,855,626 | $ | 843,631,597 | $ | 732,959,691 | ||||||
Cash | 151 | 694 | 662 | |||||||||
Receivable for investments sold | — | — | — | |||||||||
Receivable for fund shares sold | — | 1,755 | — | |||||||||
Dividends receivable | 201,217 | 426,105 | 281,212 | |||||||||
Interest receivable | 203 | 949 | 841 | |||||||||
|
|
|
|
|
| |||||||
Total assets | 199,057,197 | 844,061,100 | 733,242,406 | |||||||||
|
|
|
|
|
| |||||||
Liabilities | ||||||||||||
Payable for investments purchased | — | — | — | |||||||||
Payable for fund shares redeemed | — | — | — | |||||||||
Accrued management fees | 13,986 | 58,217 | 52,242 | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 13,986 | 58,217 | 52,242 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 199,043,211 | $ | 844,002,883 | $ | 733,190,164 | ||||||
|
| �� |
|
|
|
| ||||||
Net Assets consist of: | ||||||||||||
Paid in capital | 220,320,650 | 818,268,280 | 691,778,394 | |||||||||
Total distributable earnings (loss) | (21,277,439 | ) | 25,734,603 | 41,411,770 | ||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 199,043,211 | $ | 844,002,883 | $ | 733,190,164 | ||||||
|
|
|
|
|
| |||||||
Shares outstanding | 6,100,000 | 31,750,000 | 18,700,000 | |||||||||
|
|
|
|
|
| |||||||
Net Asset Value, offering price and redemption price per share | $ | 32.63 | $ | 26.58 | $ | 39.21 | ||||||
|
|
|
|
|
| |||||||
Investments at cost | $ | 212,125,668 | $ | 801,631,092 | $ | 672,844,797 | ||||||
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 82 |
Table of Contents
Statements of Operations | ||||||||||||||||
For the year ended July 31, 2019 | ||||||||||||||||
Fidelity MSCI Index ETF | Fidelity MSCI Index ETF | Fidelity MSCI Index ETF | Fidelity MSCI Index ETF | |||||||||||||
Investment Income | ||||||||||||||||
Dividends | $ | 4,129,933 | $ | 8,511,296 | $ | 12,913,788 | $ | 15,385,423 | ||||||||
Non-Cash dividends | — | — | — | — | ||||||||||||
Interest | 3,975 | 9,574 | 7,046 | 7,053 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total income | 4,133,908 | 8,520,870 | 12,920,834 | 15,392,476 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses | ||||||||||||||||
Management fees | 213,621 | 561,999 | 370,524 | 425,918 | ||||||||||||
Independent trustees’ compensation | 1,198 | 3,614 | 2,212 | 2,923 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 214,819 | 565,613 | 372,736 | 428,841 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 3,919,089 | 7,955,257 | 12,548,098 | 14,963,635 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) on investment securities | (19,205,926 | ) | (21,223,541 | ) | (8,760,945 | ) | (18,812,415 | ) | ||||||||
Net realized gain (loss) onIn-kind redemptions | 25,914,315 | 84,576,408 | 19,259,404 | 11,993,146 | ||||||||||||
Net realized gain (loss) on foreign currency transactions | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total net realized gain (loss) | 6,708,389 | 63,352,867 | 10,498,459 | (6,819,269 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation (depreciation) on investment securities | 36,735,985 | (34,233,246 | ) | 23,359,605 | (128,630,437 | ) | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net gain (loss) | 43,444,374 | 29,119,621 | 33,858,064 | (135,449,706 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 47,363,463 | $ | 37,074,878 | $ | 46,406,162 | $ | (120,486,071 | ) | |||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
83 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Operations | ||||||||||||||||
For the year ended July 31, 2019 | ||||||||||||||||
Fidelity MSCI Index ETF | Fidelity MSCI Health Care Index ETF | Fidelity MSCI Index ETF | Fidelity MSCI Index ETF | |||||||||||||
Investment Income | ||||||||||||||||
Dividends | $ | 29,272,261 | $ | 23,123,911 | $ | 7,805,421 | $ | 28,938,029 | ||||||||
Non-Cash dividends | — | — | 652,445 | — | ||||||||||||
Interest | 18,197 | 24,600 | 7,063 | 35,697 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total income | 29,290,458 | 23,148,511 | 8,464,929 | 28,973,726 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses | ||||||||||||||||
Management fees | 1,034,862 | 1,276,833 | 366,847 | 1,857,075 | ||||||||||||
Independent trustees’ compensation | 7,186 | 8,067 | 2,459 | 11,981 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 1,042,048 | 1,284,900 | 369,306 | 1,869,056 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 28,248,410 | 21,863,611 | 8,095,623 | 27,104,670 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) on investment securities | (7,760,662 | ) | (772,593 | ) | (2,502,750 | ) | (27,029,848 | ) | ||||||||
Net realized gain (loss) onIn-kind redemptions | 87,481,966 | 91,247,487 | 26,385,118 | 221,641,159 | ||||||||||||
Net realized gain (loss) on foreign currency transactions | — | — | (64 | ) | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total net realized gain (loss) | 79,721,304 | 90,474,894 | 23,882,304 | 194,611,311 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation (depreciation) on investment securities | (105,807,789 | ) | (73,666,611 | ) | (26,405,832 | ) | 72,901,985 | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net gain (loss) | (26,086,485 | ) | 16,808,283 | (2,523,528 | ) | 267,513,296 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 2,161,925 | $ | 38,671,894 | $ | 5,572,095 | $ | 294,617,966 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 84 |
Table of Contents
Statements of Operations | ||||||||||||
For the year ended July 31, 2019 | ||||||||||||
Fidelity MSCI Materials Index ETF | Fidelity MSCI Real Estate Index ETF | Fidelity MSCI Index ETF | ||||||||||
Investment Income | ||||||||||||
Dividends | $ | 4,332,084 | $ | 25,788,705 | $ | 17,360,369 | ||||||
Non-Cash dividends | — | 3,706,918 | — | |||||||||
Interest | 3,237 | 11,420 | 8,184 | |||||||||
|
|
|
|
|
| |||||||
Total income | 4,335,321 | 29,507,043 | 17,368,553 | |||||||||
|
|
|
|
|
| |||||||
Expenses | ||||||||||||
Management fees | 168,788 | 575,316 | 454,500 | |||||||||
Independent trustees’ compensation | 1,168 | 3,440 | 2,623 | |||||||||
|
|
|
|
|
| |||||||
Total expenses | 169,956 | 578,756 | 457,123 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | 4,165,365 | 28,928,287 | 16,911,430 | |||||||||
|
|
|
|
|
| |||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) on investment securities | (6,466,747 | ) | (13,174,859 | ) | (15,671,081 | ) | ||||||
Net realized gain (loss) onIn-kind redemptions | 3,481,974 | 24,234,928 | 24,302,907 | |||||||||
Net realized gain (loss) on foreign currency transactions | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total net realized gain (loss) | (2,984,773 | ) | 11,060,069 | 8,631,826 | ||||||||
|
|
|
|
|
| |||||||
Change in net unrealized appreciation (depreciation) on investment securities | (17,284,162 | ) | 43,048,682 | 54,722,931 | ||||||||
|
|
|
|
|
| |||||||
Net gain (loss) | (20,268,935 | ) | 54,108,751 | 63,354,757 | ||||||||
|
|
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | $ | (16,103,570 | ) | $ | 83,037,038 | $ | 80,266,187 | |||||
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
85 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Communication Services Index ETF | Fidelity MSCI Consumer Discretionary Index ETF | |||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 3,919,089 | $ | 3,290,433 | $ | 7,955,257 | $ | 4,992,534 | ||||||||
Net realized gain (loss) | 6,708,389 | (6,057,475 | ) | 63,352,867 | 20,090,016 | |||||||||||
Change in net unrealized appreciation (depreciation) | 36,735,985 | (2,938,405 | ) | (34,233,246 | ) | 51,964,275 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 47,363,463 | (5,705,447 | ) | 37,074,878 | 77,046,825 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders | (3,314,700 | ) | — | (8,215,200 | ) | — | ||||||||||
Distributions to shareholders from net investment income | — | (3,739,800 | ) | — | (4,460,400 | ) | ||||||||||
Distributions to shareholders from net realized gain | — | (4,815,000 | ) | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (3,314,700 | ) | (8,554,800 | ) | (8,215,200 | ) | (4,460,400 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 333,949,778 | 43,402,418 | 550,589,148 | 339,614,391 | ||||||||||||
Cost of shares redeemed | (128,714,106 | ) | (19,855,848 | ) | (479,120,713 | ) | (77,985,154 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 205,235,672 | 23,546,570 | 71,468,435 | 261,629,237 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 249,284,435 | 9,286,323 | 100,328,113 | 334,215,662 | ||||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 125,104,329 | 115,818,006 | 628,128,936 | 293,913,274 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 374,388,764 | $ | 125,104,329 | $ | 728,457,049 | $ | 628,128,936 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income end of period | $ | — | $ | 564,653 | ||||||||||||
|
|
|
| |||||||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 10,700,000 | 1,450,000 | 12,900,000 | 8,300,000 | ||||||||||||
Redeemed | (4,150,000 | ) | (650,000 | ) | (11,650,000 | ) | (1,950,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 6,550,000 | 800,000 | 1,250,000 | 6,350,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 86 |
Table of Contents
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Consumer Staples Index ETF | Fidelity MSCI Energy Index ETF | |||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 12,548,098 | $ | 7,773,755 | $ | 14,963,635 | $ | 12,452,967 | ||||||||
Net realized gain (loss) | 10,498,459 | 4,056,608 | (6,819,269 | ) | 4,956,194 | |||||||||||
Change in net unrealized appreciation (depreciation) | 23,359,605 | (15,759,124 | ) | (128,630,437 | ) | 72,468,715 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 46,406,162 | (3,928,761 | ) | (120,486,071 | ) | 89,877,876 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders | (12,158,300 | ) | — | (15,191,850 | ) | — | ||||||||||
Distributions to shareholders from net investment income | — | (7,829,600 | ) | — | (14,924,250 | ) | ||||||||||
Distributions to shareholders from net realized gain | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (12,158,300 | ) | (7,829,600 | ) | (15,191,850 | ) | (14,924,250 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 421,706,910 | 130,886,159 | 144,619,090 | 241,918,899 | ||||||||||||
Cost of shares redeemed | (219,855,040 | ) | (119,506,985 | ) | (175,470,393 | ) | (114,025,758 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 201,851,870 | 11,379,174 | (30,851,303 | ) | 127,893,141 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 236,099,732 | (379,187 | ) | (166,529,224 | ) | 202,846,767 | ||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 311,970,212 | 312,349,399 | 634,157,339 | 431,310,572 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 548,069,944 | $ | 311,970,212 | $ | 467,628,115 | $ | 634,157,339 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income end of period | $ | 441,897 | $ | 108,312 | ||||||||||||
|
|
|
| |||||||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 12,600,000 | 3,950,000 | 8,000,000 | 11,950,000 | ||||||||||||
Redeemed | (6,850,000 | ) | (3,700,000 | ) | (9,650,000 | ) | (5,900,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 5,750,000 | 250,000 | (1,650,000 | ) | 6,050,000 | |||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
87 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Financials Index ETF | Fidelity MSCI Health Care Index ETF | |||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 28,248,410 | $ | 24,531,797 | $ | 21,863,611 | $ | 14,114,050 | ||||||||
Net realized gain (loss) | 79,721,304 | 16,645,069 | 90,474,894 | 12,112,875 | ||||||||||||
Change in net unrealized appreciation (depreciation) | (105,807,789 | ) | 77,031,496 | (73,666,611 | ) | 115,426,631 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 2,161,925 | 118,208,362 | 38,671,894 | 141,653,556 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders | (28,117,600 | ) | — | (32,785,100 | ) | — | ||||||||||
Distributions to shareholders from net investment income | — | (24,296,050 | ) | — | (14,186,300 | ) | ||||||||||
Distributions to shareholders from net realized gain | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (28,117,600 | ) | (24,296,050 | ) | (32,785,100 | ) | (14,186,300 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 111,490,469 | 640,258,002 | 605,506,750 | 381,928,886 | ||||||||||||
Cost of shares redeemed | (516,051,490 | ) | (81,473,733 | ) | (306,767,425 | ) | (75,479,520 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | (404,561,021 | ) | 558,784,269 | 298,739,325 | 306,449,366 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | (430,516,696 | ) | 652,696,581 | 304,626,119 | 433,916,622 | |||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 1,574,375,164 | 921,678,583 | 1,252,626,344 | 818,709,722 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 1,143,858,468 | $ | 1,574,375,164 | $ | 1,557,252,463 | $ | 1,252,626,344 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income end of period | $ | 774,481 | $ | 1,007,564 | ||||||||||||
|
|
|
| |||||||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 2,900,000 | 15,500,000 | 13,600,000 | 9,200,000 | ||||||||||||
Redeemed | (13,500,000 | ) | (2,100,000 | ) | (7,200,000 | ) | (1,850,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (10,600,000 | ) | 13,400,000 | 6,400,000 | 7,350,000 | |||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 88 |
Table of Contents
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Industrials Index ETF | Fidelity MSCI Information Technology Index ETF | |||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 8,095,623 | $ | 7,584,299 | $ | 27,104,670 | $ | 16,370,825 | ||||||||
Net realized gain (loss) | 23,882,304 | 41,849,210 | 194,611,311 | 45,773,020 | ||||||||||||
Change in net unrealized appreciation (depreciation) | (26,405,832 | ) | (3,898,668 | ) | 72,901,985 | 283,376,693 | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 5,572,095 | 45,534,841 | 294,617,966 | 345,520,538 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders | (7,967,250 | ) | — | (26,778,650 | ) | — | ||||||||||
Distributions to shareholders from net investment income | — | (8,096,400 | ) | — | (16,100,150 | ) | ||||||||||
Distributions to shareholders from net realized gain | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (7,967,250 | ) | (8,096,400 | ) | (26,778,650 | ) | (16,100,150 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 99,681,511 | 277,231,538 | 731,389,567 | 997,961,581 | ||||||||||||
Cost of shares redeemed | (142,639,469 | ) | (169,431,317 | ) | (651,118,489 | ) | (114,171,616 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | (42,957,958 | ) | 107,800,221 | 80,271,078 | 883,789,965 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | (45,353,113 | ) | 145,238,662 | 348,110,394 | 1,213,210,353 | |||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 499,824,169 | 354,585,507 | 2,223,253,837 | 1,010,043,484 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 454,471,056 | $ | 499,824,169 | $ | 2,571,364,231 | $ | 2,223,253,837 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income end of period | $ | — | $ | 821,764 | ||||||||||||
|
|
|
| |||||||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 2,600,000 | 7,050,000 | 12,700,000 | 18,950,000 | ||||||||||||
Redeemed | (3,900,000 | ) | (4,550,000 | ) | (12,300,000 | ) | (2,200,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (1,300,000 | ) | 2,500,000 | 400,000 | 16,750,000 | |||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
89 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity MSCI Materials Index ETF | Fidelity MSCI Real Estate Index ETF | |||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 4,165,365 | $ | 4,530,500 | $ | 28,928,287 | $ | 12,395,820 | ||||||||
Net realized gain (loss) | (2,984,773 | ) | 26,146,321 | 11,060,069 | 6,144,538 | |||||||||||
Change in net unrealized appreciation (depreciation) | (17,284,162 | ) | (9,852,001 | ) | 43,048,682 | (1,906,166 | ) | |||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | (16,103,570 | ) | 20,824,820 | 83,037,038 | 16,634,192 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders | (4,082,150 | ) | — | (34,076,900 | ) | — | ||||||||||
Distributions to shareholders from net investment income | — | (4,793,700 | ) | — | (14,778,500 | ) | ||||||||||
Distributions to shareholders from net realized gain | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (4,082,150 | ) | (4,793,700 | ) | (34,076,900 | ) | (14,778,500 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 84,423,869 | 184,983,722 | 590,575,099 | 258,852,360 | ||||||||||||
Cost of shares redeemed | (130,623,126 | ) | (147,517,961 | ) | (297,879,834 | ) | (150,898,104 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | (46,199,257 | ) | 37,465,761 | 292,695,265 | 107,954,256 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | (66,384,977 | ) | 53,496,881 | 341,655,403 | 109,809,948 | |||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 265,428,188 | 211,931,307 | 502,347,480 | 392,537,532 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 199,043,211 | $ | 265,428,188 | $ | 844,002,883 | $ | 502,347,480 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income end of period | $ | 54,098 | $ | — | ||||||||||||
|
|
|
| |||||||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 2,650,000 | 5,350,000 | 23,800,000 | 10,700,000 | ||||||||||||
Redeemed | (4,200,000 | ) | (4,400,000 | ) | (12,400,000 | ) | (6,350,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | (1,550,000 | ) | 950,000 | 11,400,000 | 4,350,000 | |||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 90 |
Table of Contents
Statements of Changes in Net Assets | ||||||||
Fidelity MSCI Utilities Index ETF | ||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 16,911,430 | $ | 9,569,751 | ||||
Net realized gain (loss) | 8,631,826 | 7,245,336 | ||||||
Change in net unrealized appreciation (depreciation) | 54,722,931 | (7,076,756 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 80,266,187 | 9,738,331 | ||||||
|
|
|
| |||||
Distributions to shareholders | (16,704,200 | ) | — | |||||
Distributions to shareholders from net investment income | — | (9,603,500 | ) | |||||
Distributions to shareholders from net realized gain | — | — | ||||||
|
|
|
| |||||
Total distributions | (16,704,200 | ) | (9,603,500 | ) | ||||
|
|
|
| |||||
Share transactions | ||||||||
Proceeds from sales of shares | 483,209,133 | 151,290,619 | ||||||
Cost of shares redeemed | (149,853,958 | ) | (92,301,442 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from share transactions | 333,355,175 | 58,989,177 | ||||||
|
|
|
| |||||
Total increase (decrease) in net assets | 396,917,162 | 59,124,008 | ||||||
Net Assets | ||||||||
Beginning of year | 336,273,002 | 277,148,994 | ||||||
|
|
|
| |||||
End of year | $ | 733,190,164 | $ | 336,273,002 | ||||
|
|
|
| |||||
Undistributed net investment income end of period | $ | — | ||||||
|
| |||||||
Other Information | ||||||||
Shares | ||||||||
Sold | 13,100,000 | 4,400,000 | ||||||
Redeemed | (4,050,000 | ) | (2,750,000 | ) | ||||
|
|
|
| |||||
Net increase (decrease) | 9,050,000 | 1,650,000 | ||||||
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
91 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||||||||||
Fidelity MSCI Communication Services Index ETF | ||||||||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2015 | ||||||||||||||||
SelectedPer-Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 28.76 | $ | 32.62 | $ | 32.10 | $ | 26.86 | $ | 26.98 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from Investment Operations | ||||||||||||||||||||
Net investment income (loss)A | 0.49 | 0.85 | 0.80 | 0.78 | 0.78 | |||||||||||||||
Net realized and unrealized gain (loss) | 5.59 | (2.43 | ) | 0.62 | 5.11 | (0.09 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 6.08 | (1.58 | ) | 1.42 | 5.89 | 0.69 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions from net investment income | (0.49 | ) | (1.00 | ) | (0.90 | ) | (0.65 | ) | (0.81 | ) | ||||||||||
Distributions from net realized gain | — | (1.28 | ) | — | — | — | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.49 | ) | (2.28 | ) | (0.90 | ) | (0.65 | ) | (0.81 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 34.35 | $ | 28.76 | $ | 32.62 | $ | 32.10 | $ | 26.86 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | 21.33 | % | (5.14 | )% | 4.58 | % | 22.36 | % | 2.56 | % | ||||||||||
Ratios to Average Net AssetsB | ||||||||||||||||||||
Expense before reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of fee waivers, if any | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of all reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Net investment income (loss) | 1.53 | % | 2.81 | % | 2.55 | % | 2.74 | % | 2.89 | % | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 374,389 | $ | 125,104 | $ | 115,818 | $ | 174,940 | $ | 81,908 | ||||||||||
Portfolio turnover rateC,D | 82 | % | 38 | % | 27 | % | 26 | % | 23 | % |
A | Calculated based on average shares outstanding during the period. |
B | 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. |
C | Amount does not include the portfolio activity of any underlying funds. |
D | Portfolio turnover rate excludes securities received or deliveredin-kind. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 92 |
Table of Contents
Financial Highlights | ||||||||||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | ||||||||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2015 | ||||||||||||||||
SelectedPer-Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 43.32 | $ | 36.06 | $ | 31.99 | $ | 32.06 | $ | 26.58 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from Investment Operations | ||||||||||||||||||||
Net investment income (loss)A | 0.51 | 0.47 | 0.50 | 0.43 | 0.37 | |||||||||||||||
Net realized and unrealized gain (loss) | 2.96 | 7.20 | 4.07 | (0.06 | ) | 5.43 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 3.47 | 7.67 | 4.57 | 0.37 | 5.80 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions from net investment income | (0.54 | ) | (0.41 | ) | (0.50 | ) | (0.44 | ) | (0.32 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.54 | ) | (0.41 | ) | (0.50 | ) | (0.44 | ) | (0.32 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 46.25 | $ | 43.32 | $ | 36.06 | $ | 31.99 | $ | 32.06 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | 8.15 | % | 21.36 | % | 14.41 | % | 1.25 | % | 21.93 | % | ||||||||||
Ratios to Average Net AssetsB | ||||||||||||||||||||
Expense before reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of fee waivers, if any | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of all reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Net investment income (loss) | 1.18 | % | 1.16 | % | 1.49 | % | 1.41 | % | 1.25 | % | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 728,457 | $ | 628,129 | $ | 293,913 | $ | 262,322 | $ | 299,794 | ||||||||||
Portfolio turnover rateC,D | 25 | % | 5 | % | 7 | % | 5 | % | 8 | % |
A | Calculated based on average shares outstanding during the period. |
B | 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. |
C | Amount does not include the portfolio activity of any underlying funds. |
D | Portfolio turnover rate excludes securities received or deliveredin-kind. |
See accompanying notes which are an integral part of the financial statements.
93 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||||||||||
Fidelity MSCI Consumer Staples Index ETF | ||||||||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2015 | ||||||||||||||||
SelectedPer-Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 32.33 | $ | 33.23 | $ | 32.82 | $ | 30.31 | $ | 26.16 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from Investment Operations | ||||||||||||||||||||
Net investment income (loss)A | 0.94 | 0.86 | 0.83 | 0.75 | 0.77 | |||||||||||||||
Net realized and unrealized gain (loss) | 3.23 | (0.88 | ) | 0.40 | 2.56 | 4.16 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 4.17 | (0.02 | ) | 1.23 | 3.31 | 4.93 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions from net investment income | (0.91 | ) | (0.88 | ) | (0.82 | ) | (0.80 | ) | (0.78 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.91 | ) | (0.88 | ) | (0.82 | ) | (0.80 | ) | (0.78 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 35.59 | $ | 32.33 | $ | 33.23 | $ | 32.82 | $ | 30.31 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | 13.16 | % | (0.06 | )% | 3.82 | % | 11.18 | % | 19.00 | % | ||||||||||
Ratios to Average Net AssetsB | ||||||||||||||||||||
Expense before reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of fee waivers, if any | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of all reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Net investment income (loss) | 2.83 | % | 2.65 | % | 2.56 | % | 2.45 | % | 2.63 | % | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 548,070 | $ | 311,970 | $ | 312,349 | $ | 285,504 | $ | 204,596 | ||||||||||
Portfolio turnover rateC,D | 30 | % | 24 | % | 11 | % | 10 | % | 10 | % |
A | Calculated based on average shares outstanding during the period. |
B | 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. |
C | Amount does not include the portfolio activity of any underlying funds. |
D | Portfolio turnover rate excludes securities received or deliveredin-kind. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 94 |
Table of Contents
Financial Highlights | ||||||||||||||||||||
Fidelity MSCI Energy Index ETF | ||||||||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2015 | ||||||||||||||||
SelectedPer-Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 21.50 | $ | 18.39 | $ | 19.03 | $ | 19.72 | $ | 27.97 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from Investment Operations | ||||||||||||||||||||
Net investment income (loss)A | 0.54 | 0.47 | 0.57 | 0.50 | 0.57 | |||||||||||||||
Net realized and unrealized gain (loss) | (4.70 | ) | 3.22 | (0.73 | ) | (0.69 | ) | (8.31 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | (4.16 | ) | 3.69 | (0.16 | ) | (0.19 | ) | (7.74 | ) | |||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions from net investment income | (0.55 | ) | (0.58 | ) | (0.48 | ) | (0.50 | ) | (0.51 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.55 | ) | (0.58 | ) | (0.48 | ) | (0.50 | ) | (0.51 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 16.79 | $ | 21.50 | $ | 18.39 | $ | 19.03 | $ | 19.72 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | (19.42 | )% | 20.52 | % | (0.96 | )% | (0.75 | )% | (27.95 | )% | ||||||||||
Ratios to Average Net AssetsB | ||||||||||||||||||||
Expense before reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of fee waivers, if any | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of all reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Net investment income (loss) | 2.92 | % | 2.40 | % | 2.91 | % | 2.74 | % | 2.47 | % | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 467,628 | $ | 634,157 | $ | 431,311 | $ | 430,039 | $ | 256,399 | ||||||||||
Portfolio turnover rateC,D | 6 | % | 5 | % | 10 | % | 19 | % | 8 | % |
A | Calculated based on average shares outstanding during the period. |
B | 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. |
C | Amount does not include the portfolio activity of any underlying funds. |
D | Portfolio turnover rate excludes securities received or deliveredin-kind. |
See accompanying notes which are an integral part of the financial statements.
95 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||||||||||
Fidelity MSCI Financials Index ETF | ||||||||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2015 | ||||||||||||||||
SelectedPer-Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 41.05 | $ | 36.94 | $ | 28.61 | $ | 29.78 | $ | 26.61 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from Investment Operations | ||||||||||||||||||||
Net investment income (loss)A | 0.89 | 0.75 | 0.61 | 0.63 | 0.58 | |||||||||||||||
Net realized and unrealized gain (loss) | 0.18 | B | 4.11 | 8.28 | (1.11 | ) | 3.15 | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 1.07 | 4.86 | 8.89 | (0.48 | ) | 3.73 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions from net investment income | (0.90 | ) | (0.75 | ) | (0.56 | ) | (0.69 | ) | (0.56 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.90 | ) | (0.75 | ) | (0.56 | ) | (0.69 | ) | (0.56 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 41.22 | $ | 41.05 | $ | 36.94 | $ | 28.61 | $ | 29.78 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | 2.80 | % | 13.23 | % | 31.31 | % | (1.49 | )% | 14.08 | % | ||||||||||
Ratios to Average Net AssetsC | ||||||||||||||||||||
Expense before reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of fee waivers, if any | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of all reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Net investment income (loss) | 2.27 | % | 1.88 | % | 1.77 | % | 2.29 | % | 2.01 | % | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 1,143,858 | $ | 1,574,375 | $ | 921,679 | $ | 237,490 | $ | 344,012 | ||||||||||
Portfolio turnover rateD,E | 5 | % | 5 | % | 18 | % | 8 | % | 7 | % |
A | Calculated based on average shares outstanding during the period. |
B | 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. |
C | 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. |
D | Amount does not include the portfolio activity of any underlying funds. |
E | Portfolio turnover rate excludes securities received or deliveredin-kind. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 96 |
Table of Contents
Financial Highlights | ||||||||||||||||||||
Fidelity MSCI Health Care Index ETF | ||||||||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2015 | ||||||||||||||||
SelectedPer-Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 43.72 | $ | 38.44 | $ | 35.67 | $ | 37.16 | $ | 29.05 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from Investment Operations | ||||||||||||||||||||
Net investment income (loss)A | 0.63 | 0.56 | 0.51 | 0.44 | 0.80 | B | ||||||||||||||
Net realized and unrealized gain (loss) | 1.01 | 5.29 | 2.76 | (1.49 | ) | 7.99 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 1.64 | 5.85 | 3.27 | (1.05 | ) | 8.79 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions from net investment income | (0.93 | ) | (0.57 | ) | (0.50 | ) | (0.44 | ) | (0.68 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.93 | ) | (0.57 | ) | (0.50 | ) | (0.44 | ) | (0.68 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 44.43 | $ | 43.72 | $ | 38.44 | $ | 35.67 | $ | 37.16 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | 3.84 | % | 15.34 | % | 9.30 | % | (2.73 | )% | 30.40 | % | ||||||||||
Ratios to Average Net AssetsC | ||||||||||||||||||||
Expense before reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of fee waivers, if any | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of all reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Net investment income (loss) | 1.43 | % | 1.39 | % | 1.45 | % | 1.30 | % | 2.31 | %B | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 1,557,252 | $ | 1,252,626 | $ | 818,710 | $ | 642,124 | $ | 800,713 | ||||||||||
Portfolio turnover rateD,E | 5 | % | 8 | % | 4 | % | 9 | % | 10 | % |
A | Calculated based on average shares outstanding during the period. |
B | Investment income per share reflects a large,non-recurring dividend which amounted to $.17 per share. Excluding thisnon-recurring dividend, the ratio of net investment income (loss) to average net assets would have been 1.83%. |
C | 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. |
D | Amount does not include the portfolio activity of any underlying funds. |
E | Portfolio turnover rate excludes securities received or deliveredin-kind. |
See accompanying notes which are an integral part of the financial statements.
97 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||||||||||
Fidelity MSCI Industrials Index ETF | ||||||||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2015 | ||||||||||||||||
SelectedPer-Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 39.51 | $ | 34.93 | $ | 30.10 | $ | 28.05 | $ | 26.85 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from Investment Operations | ||||||||||||||||||||
Net investment income (loss)A | 0.70 | 0.61 | 0.61 | 0.54 | 0.48 | |||||||||||||||
Net realized and unrealized gain (loss) | 0.51 | B | 4.62 | 4.79 | 2.04 | 1.19 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 1.21 | 5.23 | 5.40 | 2.58 | 1.67 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions from net investment income | (0.68 | ) | (0.65 | ) | (0.57 | ) | (0.53 | ) | (0.47 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.68 | ) | (0.65 | ) | (0.57 | ) | (0.53 | ) | (0.47 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 40.04 | $ | 39.51 | $ | 34.93 | $ | 30.10 | $ | 28.05 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | 3.23 | % | 15.08 | % | 18.08 | % | 9.41 | % | 6.18 | % | ||||||||||
Ratios to Average Net AssetsC | ||||||||||||||||||||
Expense before reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of fee waivers, if any | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of all reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Net investment income (loss) | 1.84 | % | 1.61 | % | 1.85 | % | 1.94 | % | 1.69 | % | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 454,471 | $ | 499,824 | $ | 354,586 | $ | 158,049 | $ | 143,034 | ||||||||||
Portfolio turnover rateD,E | 5 | % | 5 | % | 5 | % | 11 | % | 6 | % |
A | Calculated based on average shares outstanding during the period. |
B | 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. |
C | 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. |
D | Amount does not include the portfolio activity of any underlying funds. |
E | Portfolio turnover rate excludes securities received or deliveredin-kind. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 98 |
Table of Contents
Financial Highlights | ||||||||||||||||||||
Fidelity MSCI Information Technology Index ETF | ||||||||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2015 | ||||||||||||||||
SelectedPer-Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 56.36 | $ | 44.50 | $ | 34.93 | $ | 32.69 | $ | 29.29 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from Investment Operations | ||||||||||||||||||||
Net investment income (loss)A | 0.70 | 0.53 | 0.48 | 0.46 | 0.39 | |||||||||||||||
Net realized and unrealized gain (loss) | 8.17 | 11.85 | 9.54 | 2.24 | B | 3.40 | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 8.87 | 12.38 | 10.02 | 2.70 | 3.79 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions from net investment income | (0.70 | ) | (0.52 | ) | (0.45 | ) | (0.46 | ) | (0.39 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.70 | ) | (0.52 | ) | (0.45 | ) | (0.46 | ) | (0.39 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 64.53 | $ | 56.36 | $ | 44.50 | $ | 34.93 | $ | 32.69 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | 15.94 | % | 27.92 | % | 28.86 | % | 8.41 | %B | 12.98 | % | ||||||||||
Ratios to Average Net AssetsC | ||||||||||||||||||||
Expense before reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of fee waivers, if any | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of all reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Net investment income (loss) | 1.22 | % | 1.02 | % | 1.19 | % | 1.42 | % | 1.23 | % | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 2,571,364 | $ | 2,223,254 | $ | 1,010,043 | $ | 431,391 | $ | 423,372 | ||||||||||
Portfolio turnover rateD,E | 18 | % | 4 | % | 6 | % | 5 | % | 6 | % |
A | Calculated based on average shares outstanding during the period. |
B | 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%. |
C | 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. |
D | Amount does not include the portfolio activity of any underlying funds. |
E | Portfolio turnover rate excludes securities received or deliveredin-kind. |
See accompanying notes which are an integral part of the financial statements.
99 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||||||||||
Fidelity MSCI Materials Index ETF | ||||||||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2015 | ||||||||||||||||
SelectedPer-Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 34.70 | $ | 31.63 | $ | 27.71 | $ | 25.91 | $ | 27.66 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from Investment Operations | ||||||||||||||||||||
Net investment income (loss)A | 0.65 | 0.55 | 0.57 | 0.50 | 0.50 | |||||||||||||||
Net realized and unrealized gain (loss) | (2.08 | ) | 3.09 | 3.87 | 1.83 | (1.75 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | (1.43 | ) | 3.64 | 4.44 | 2.33 | (1.25 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions from net investment income | (0.64 | ) | (0.57 | ) | (0.52 | ) | (0.53 | ) | (0.50 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (0.64 | ) | (0.57 | ) | (0.52 | ) | (0.53 | ) | (0.50 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 32.63 | $ | 34.70 | $ | 31.63 | $ | 27.71 | $ | 25.91 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | (4.02 | )% | 11.54 | % | 16.17 | % | 9.28 | % | (4.65 | )% | ||||||||||
Ratios to Average Net AssetsB | ||||||||||||||||||||
Expense before reductions | .08 | % | .08 | % | .08 | % | .11 | % | .12 | % | ||||||||||
Expenses net of fee waivers, if any | .08 | % | .08 | % | .08 | % | .11 | % | .12 | % | ||||||||||
Expenses net of all reductions | .08 | % | .08 | % | .08 | % | .11 | % | .12 | % | ||||||||||
Net investment income (loss) | 2.05 | % | 1.60 | % | 1.93 | % | 2.00 | % | 1.81 | % | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 199,043 | $ | 265,428 | $ | 211,931 | $ | 123,325 | $ | 123,052 | ||||||||||
Portfolio turnover rateC,D | 12 | % | 10 | % | 7 | % | 9 | % | 7 | % |
A | Calculated based on average shares outstanding during the period. |
B | 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. |
C | Amount does not include the portfolio activity of any underlying funds. |
D | Portfolio turnover rate excludes securities received or deliveredin-kind. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 100 |
Table of Contents
Financial Highlights | ||||||||||||||||||||
Fidelity MSCI Real Estate Index ETF | ||||||||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2015A | ||||||||||||||||
SelectedPer-Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 24.69 | $ | 24.53 | $ | 25.83 | $ | 22.55 | $ | 24.28 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from Investment Operations | ||||||||||||||||||||
Net investment income (loss)B | 1.05 | 0.76 | 0.68 | 0.83 | 0.38 | |||||||||||||||
Net realized and unrealized gain (loss) | 2.08 | 0.32 | (1.12 | ) | 3.37 | (1.70 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 3.13 | 1.08 | (0.44 | ) | 4.20 | (1.32 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions from net investment income | (1.24 | ) | (0.92 | ) | (0.86 | ) | (0.92 | ) | (0.38 | ) | ||||||||||
Return of capital | — | — | — | — | (0.03 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (1.24 | ) | (0.92 | ) | (0.86 | ) | (0.92 | ) | (0.41 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 26.58 | $ | 24.69 | $ | 24.53 | $ | 25.83 | $ | 22.55 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total ReturnC | 13.19 | % | 4.53 | % | (1.53 | )% | 19.29 | % | (5.50 | )% | ||||||||||
Ratios to Average Net AssetsD | ||||||||||||||||||||
Expense before reductions | .08 | % | .08 | % | .08 | % | .11 | % | .12 | %E | ||||||||||
Expenses net of fee waivers, if any | .08 | % | .08 | % | .08 | % | .11 | % | .12 | %E | ||||||||||
Expenses net of all reductions | .08 | % | .08 | % | .08 | % | .11 | % | .12 | %E | ||||||||||
Net investment income (loss) | 4.20 | % | 3.15 | % | 2.85 | % | 3.55 | % | 3.33 | %E | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 844,003 | $ | 502,347 | $ | 392,538 | $ | 183,394 | $ | 25,936 | ||||||||||
Portfolio turnover rateF,G | 10 | % | 8 | % | 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 deliveredin-kind. |
H | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
101 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||||||||||
Fidelity MSCI Utilities Index ETF | ||||||||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017 | Year ended July 31, 2016 | Year ended July 31, 2015 | ||||||||||||||||
SelectedPer-Share Data | ||||||||||||||||||||
Net asset value, beginning of period | $ | 34.85 | $ | 34.64 | $ | 33.57 | $ | 28.10 | $ | 26.88 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Income from Investment Operations | ||||||||||||||||||||
Net investment income (loss)A | 1.16 | 1.10 | 1.06 | 0.98 | 0.98 | |||||||||||||||
Net realized and unrealized gain (loss) | 4.32 | 0.20 | 1.09 | 5.48 | 1.47 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total from investment operations | 5.48 | 1.30 | 2.15 | 6.46 | 2.45 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Distributions from net investment income | (1.12 | ) | (1.09 | ) | (1.08 | ) | (0.99 | ) | (1.23 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total distributions | (1.12 | ) | (1.09 | ) | (1.08 | ) | (0.99 | ) | (1.23 | ) | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Net asset value, end of period | $ | 39.21 | $ | 34.85 | $ | 34.64 | $ | 33.57 | $ | 28.10 | ||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total Return | 15.93 | % | 3.83 | % | 6.61 | % | 23.56 | % | 9.13 | % | ||||||||||
Ratios to Average Net AssetsB | ||||||||||||||||||||
Expense before reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of fee waivers, if any | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Expenses net of all reductions | .08 | % | .08 | % | .08 | % | .12 | % | .12 | % | ||||||||||
Net investment income (loss) | 3.11 | % | 3.21 | % | 3.22 | % | 3.25 | % | 3.37 | % | ||||||||||
Supplemental Data | ||||||||||||||||||||
Net assets, end of period (000 omitted) | $ | 733,190 | $ | 336,273 | $ | 277,149 | $ | 283,669 | $ | 108,176 | ||||||||||
Portfolio turnover rateC,D | 7 | % | 6 | % | 6 | % | 9 | % | 7 | % |
A | Calculated based on average shares outstanding during the period. |
B | 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. |
C | Amount does not include the portfolio activity of any underlying funds. |
D | Portfolio turnover rate excludes securities received or deliveredin-kind. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 102 |
Table of Contents
For the year ended July 31, 2019
1. Organization.
Fidelity MSCI Communication Services Index ETF (formerly Fidelity MSCI Telecommunications Services Index ETF), 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 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 and MSCI Real Estate ETF, are non-diversified funds. 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 each Fund’s investments to the Fair Value Committee (the Committee) established by each 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. 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, 2019, is included at the end of each 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 transaction date.
103 | Annual Report |
Table of Contents
Notes to Financial Statements – continued
2. Significant Accounting Policies – continued
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 the Funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from 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. 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, 2019 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. A fund’s federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Realized gain or loss resulting from in-kind redemptions is not taxable to the Fund and is not distributed to shareholders of the Fund. Foreign taxes are provided for based on each Fund’s understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to passive foreign investment companies (PFIC), redemptions in kind, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows for each Fund:
Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) on securities and other investments | |||||||||||||
Fidelity MSCI Communication Services Index ETF | $ | 339,987,167 | $ | 40,033,494 | $ | (5,603,949 | ) | $ | 34,429,545 | |||||||
Fidelity MSCI Consumer Discretionary Index ETF | 703,825,664 | 64,779,434 | (40,442,626 | ) | 24,336,808 | |||||||||||
Fidelity MSCI Consumer Staples Index ETF | 534,457,110 | 42,459,578 | (29,960,301 | ) | 12,499,277 | |||||||||||
Fidelity MSCI Energy Index ETF | 599,528,227 | 7,998,078 | (140,362,234 | ) | (132,364,156 | ) | ||||||||||
Fidelity MSCI Financials Index ETF | 1,086,971,275 | 106,761,571 | (50,568,329 | ) | 56,193,242 | |||||||||||
Fidelity MSCI Health Care Index ETF | 1,458,558,776 | 210,542,546 | (113,085,123 | ) | 97,457,423 | |||||||||||
Fidelity MSCI Industrials Index ETF | 452,552,835 | 46,773,266 | (45,041,929 | ) | 1,731,337 | |||||||||||
Fidelity MSCI Information Technology Index ETF | 2,056,537,041 | 547,698,008 | (33,619,817 | ) | 514,078,191 | |||||||||||
Fidelity MSCI Materials Index ETF | 213,543,977 | 14,989,527 | (29,677,878 | ) | (14,688,351 | ) | ||||||||||
Fidelity MSCI Real Estate Index ETF | 806,553,169 | 72,521,288 | (35,442,860 | ) | 37,078,428 | |||||||||||
Fidelity MSCI Utilities Index ETF | 674,270,322 | 63,580,928 | (4,891,559 | ) | 58,689,369 |
Annual Report | 104 |
Table of Contents
2. Significant Accounting Policies – continued
Thetax-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 Communication Services Index ETF | $ | 604,389 | $ | (26,177,338 | ) | $ | 34,429,545 | |||||
Fidelity MSCI Consumer Discretionary Index ETF | 304,711 | (16,737,151 | ) | 24,336,807 | ||||||||
Fidelity MSCI Consumer Staples Index ETF | 831,695 | (3,851,643 | ) | 12,499,277 | ||||||||
Fidelity MSCI Energy Index ETF | — | (38,254,432 | ) | (132,364,156 | ) | |||||||
Fidelity MSCI Financials Index ETF | 905,292 | (10,437,292 | ) | 56,193,241 | ||||||||
Fidelity MSCI Health Care Index ETF | 1,351,578 | (15,039,889 | ) | 97,457,423 | ||||||||
Fidelity MSCI Industrials Index ETF | 128,830 | (5,458,790 | ) | 1,731,337 | ||||||||
Fidelity MSCI Information Technology Index ETF | 1,147,784 | (26,594,207 | ) | 514,078,191 | ||||||||
Fidelity MSCI Materials Index ETF | 137,313 | (6,726,402 | ) | (14,688,350 | ) | |||||||
Fidelity MSCI Real Estate Index ETF | — | (11,343,825 | ) | 37,078,428 | ||||||||
Fidelity MSCI Utilities Index ETF | 207,229 | (17,484,828 | ) | 58,689,369 |
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 Communication Services Index ETF | $ | (9,673,560 | ) | $ | (16,503,778 | ) | $ | (26,177,338 | ) | |||
Fidelity MSCI Consumer Discretionary Index ETF | (5,590,771 | ) | (11,146,380 | ) | (16,737,151 | ) | ||||||
Fidelity MSCI Consumer Staples Index ETF | — | (3,851,643 | ) | (3,851,643 | ) | |||||||
Fidelity MSCI Energy Index ETF | (6,791,923 | ) | (31,462,509 | ) | (38,254,432 | ) | ||||||
Fidelity MSCI Financials Index ETF | (6,579,782 | ) | (3,857,510 | ) | (10,437,292 | ) | ||||||
Fidelity MSCI Health Care Index ETF | (7,536,383 | ) | (7,503,506 | ) | (15,039,889 | ) | ||||||
Fidelity MSCI Industrials Index ETF | (1,740,905 | ) | (3,717,885 | ) | (5,458,790 | ) | ||||||
Fidelity MSCI Information Technology Index ETF | (25,043,225 | ) | (1,550,982 | ) | (26,594,207 | ) | ||||||
Fidelity MSCI Materials Index ETF | (3,147,221 | ) | (3,579,181 | ) | (6,726,402 | ) | ||||||
Fidelity MSCI Real Estate Index ETF | (6,482,003 | ) | (4,861,822 | ) | (11,343,825 | ) | ||||||
Fidelity MSCI Utilities Index ETF | (5,783,922 | ) | (11,700,906 | ) | (17,484,828 | ) |
The tax character of distributions paid was as follows:
July 31, 2019 | ||||||||||||||||
Ordinary Income | Long-Term Capital Gain | Tax Return Of Capital | Total | |||||||||||||
Fidelity MSCI Communication Services Index ETF | $ | 3,314,700 | $ | — | $ | — | $ | 3,314,700 | ||||||||
Fidelity MSCI Consumer Discretionary Index ETF | 8,215,200 | — | — | 8,215,200 | ||||||||||||
Fidelity MSCI Consumer Staples Index ETF | 12,158,300 | — | — | 12,158,300 | ||||||||||||
Fidelity MSCI Energy Index ETF | 15,191,850 | — | — | 15,191,850 | ||||||||||||
Fidelity MSCI Financials Index ETF | 28,117,600 | — | — | 28,117,600 | ||||||||||||
Fidelity MSCI Health Care Index ETF | 32,785,100 | — | — | 32,785,100 | ||||||||||||
Fidelity MSCI Industrials Index ETF | 7,967,250 | — | — | 7,967,250 | ||||||||||||
Fidelity MSCI Information Technology Index ETF | 26,778,650 | — | — | 26,778,650 | ||||||||||||
Fidelity MSCI Materials Index ETF | 4,082,150 | — | — | 4,082,150 | ||||||||||||
Fidelity MSCI Real Estate Index ETF | 34,076,900 | — | — | 34,076,900 | ||||||||||||
Fidelity MSCI Utilities Index ETF | 16,704,200 | — | — | 16,704,200 | ||||||||||||
July 31, 2018 | ||||||||||||||||
Ordinary Income | Long-Term Capital Gain | Tax Return Of Capital | Total | |||||||||||||
Fidelity MSCI Communication Services Index ETF | $ | 8,554,800 | $ | — | $ | — | $ | 8,554,800 |
105 | Annual Report |
Table of Contents
Notes to Financial Statements – continued
2. Significant Accounting Policies – continued
July 31, 2018 | ||||||||||||||||
Ordinary Income | Long-Term Capital Gain | Tax Return Of Capital | Total | |||||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 4,460,400 | $ | — | $ | — | $ | 4,460,400 | ||||||||
Fidelity MSCI Consumer Staples Index ETF | 7,829,600 | — | — | 7,829,600 | ||||||||||||
Fidelity MSCI Energy Index ETF | 14,924,250 | — | — | 14,924,250 | ||||||||||||
Fidelity MSCI Financials Index ETF | 24,296,050 | — | — | 24,296,050 | ||||||||||||
Fidelity MSCI Health Care Index ETF | 14,186,300 | — | — | 14,186,300 | ||||||||||||
Fidelity MSCI Industrials Index ETF | 8,096,400 | — | — | 8,096,400 | ||||||||||||
Fidelity MSCI Information Technology Index ETF | 16,100,150 | — | — | 16,100,150 | ||||||||||||
Fidelity MSCI Materials Index ETF | 4,793,700 | — | — | 4,793,700 | ||||||||||||
Fidelity MSCI Real Estate Index ETF | 14,778,500 | — | — | 14,778,500 | ||||||||||||
Fidelity MSCI Utilities Index ETF | 9,603,500 | — | — | 9,603,500 |
New Rule Issuance. During August 2018, the U.S. Securities and Exchange Commission issued Final Rule Release No. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between Regulation S-X and GAAP. In accordance with these amendments, certain line-items in the Fund’s financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation | ||
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/ Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) | ||
Statement of Changes in Net Assets |
N/A – removed | Net unrealized appreciation (depreciation) Undistributed/Distributions in excess of/ Accumulated net investment income (loss) end of period | ||
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
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 Communication Services Index ETF | $ | 212,336,983 | $ | 205,677,614 | ||||
Fidelity MSCI Consumer Discretionary Index ETF | 166,929,876 | 166,928,991 | ||||||
Fidelity MSCI Consumer Staples Index ETF | 131,663,761 | 130,471,760 | ||||||
Fidelity MSCI Energy Index ETF | 33,384,532 | 32,181,431 | ||||||
Fidelity MSCI Financials Index ETF | 65,826,817 | 74,309,993 | ||||||
Fidelity MSCI Health Care Index ETF | 94,375,373 | 79,058,138 | ||||||
Fidelity MSCI Industrials Index ETF | 23,310,825 | 21,272,342 | ||||||
Fidelity MSCI Information Technology Index ETF | 403,902,369 | 395,363,359 | ||||||
Fidelity MSCI Materials Index ETF | 24,914,031 | 23,877,257 | ||||||
Fidelity MSCI Real Estate Index ETF | 75,310,776 | 67,348,437 | ||||||
Fidelity MSCI Utilities Index ETF | 36,351,879 | 35,836,966 |
Annual Report | 106 |
Table of Contents
3. Purchases and Sales of Investments – continued
Securities received or delivered in-kind through subscriptions and redemptions were as follows:
In-kind Subscriptions | In-kind Redemptions | |||||||
Fidelity MSCI Communication Services Index ETF | $ | 330,126,368 | $ | 127,290,696 | ||||
Fidelity MSCI Consumer Discretionary Index ETF | 548,296,990 | 476,828,488 | ||||||
Fidelity MSCI Consumer Staples Index ETF | 419,985,301 | 218,981,368 | ||||||
Fidelity MSCI Energy Index ETF | 143,861,523 | 174,377,522 | ||||||
Fidelity MSCI Financials Index ETF | 108,136,638 | 502,945,345 | ||||||
Fidelity MSCI Health Care Index ETF | 601,808,169 | 303,940,652 | ||||||
Fidelity MSCI Industrials Index ETF | 98,996,290 | 141,535,684 | ||||||
Fidelity MSCI Information Technology Index ETF | 729,688,529 | 648,890,674 | ||||||
Fidelity MSCI Materials Index ETF | 83,324,956 | 130,122,794 | ||||||
Fidelity MSCI Real Estate Index ETF | 578,981,386 | 291,622,083 | ||||||
Fidelity MSCI Utilities Index ETF | 481,700,947 | 149,144,188 |
4. Fees and Other Transactions with Affiliates.
Management Fee. FMRCo., Inc. 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, FMRCo., Inc. pays all other expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. The management fee paid to FMRCo., Inc. is reduced by an amount equal to the fees and expenses paid by each fund to the independent Trustees. During January 2019 the Board approved to change the investment adviser from Fidelity SelectCo, LLC to FMR Co., Inc. effective February 1, 2019. There was no change to the management fee.
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 the investment adviser for providing these services.
Interfund Trades. The Funds may purchase from or sell securities to other funds affiliated with the sub-adviser under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
Brokerage Commissions. Certain Funds placed a portion of their portfolio transactions with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in the net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statements of Operations. The commissions paid to these affiliated firms were as follows:
Amount | ||||
Fidelity MSCI Communication Services Index ETF | $ | 5 |
Other. During the period, the investment adviser reimbursed Fidelity MSCI Industrials Index ETF for certain losses in the amount of $1,950.
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.
107 | Annual Report |
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Covington Trust and Shareholders of Fidelity Communication Services Index ETF (formerly Fidelity MSCI Telecommunications Services Index ETF), 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 and Fidelity MSCI Utilities Index ETF:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Fidelity MSCI Communication Services Index ETF, 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 Fidelity ETF and MSCI Utilities Index ETF (the “Funds”), each a fund of Fidelity Covington Trust, including the schedules of investments, as of July 31, 2019, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended for the Funds except Fidelity MSCI Real Estate Index ETF; the related statement of operations for the year then ended, the financial highlights for each of the two years in the period then ended, and the financial highlights for the four years in the period then ended and for the period from February 2, 2015 (commencement of operations) to July 31, 2015 for Fidelity MSCI Real Estate Index ETF; and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of July 31, 2019, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended (or for the period defined above) in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of July 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
September 17, 2019
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Annual Report | 108 |
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 MSCI Communication Services Index ETF
Period Ended July 31, 2019 | ||||||||||||
From July 31, 2014 to July 31, 2019 | 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 | 595 | 47.26 | % | 617 | 49.01 | % | ||||||
25 - <50 | 14 | 1.11 | % | 30 | 2.38 | % | ||||||
50 - <75 | 2 | 0.16 | % | 0 | — | |||||||
75 - <100 | 0 | — | 1 | 0.08 | % | |||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 611 | 48.53 | % | 648 | 51.47 | % |
Fidelity MSCI Consumer Discretionary Index ETF
Period Ended July 31, 2019 | ||||||||||||
From July 31, 2014 to July 31, 2019 | 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 | 552 | 43.84 | % | 701 | 55.68 | % | ||||||
25 - <50 | 3 | 0.24 | % | 3 | 0.24 | % | ||||||
50 - <75 | 0 | — | 0 | — | ||||||||
75 - <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 555 | 44.08 | % | 704 | 55.92 | % |
Fidelity MSCI Consumer Staples Index ETF
Period Ended July 31, 2019 | ||||||||||||
From July 31, 2014 to July 31, 2019 | 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 | 486 | 38.60 | % | 772 | 61.32 | % | ||||||
25 - <50 | 0 | — | 0 | — | ||||||||
50 - <75 | 0 | — | 0 | — | ||||||||
75 - <100 | 0 | — | 0 | — | ||||||||
100 or above | 1 | 0.08 | % | 0 | — | |||||||
Total | 487 | 38.68 | % | 772 | 61.32 | % |
109 | Annual Report |
Table of Contents
Premium/Discount Analysis (Unaudited) – continued
Fidelity MSCI Energy Index ETF
Period Ended July 31, 2019 | ||||||||||||
From July 31, 2014 to July 31, 2019 | 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 | 463 | 36.78 | % | 794 | 63.06 | % | ||||||
25 - <50 | 0 | — | 2 | 0.16 | % | |||||||
50 - <75 | 0 | — | 0 | — | ||||||||
75 - <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 463 | 36.78 | % | 796 | 63.22 | % |
Fidelity MSCI Financials Index ETF
Period Ended July 31, 2019 | ||||||||||||
From July 31, 2014 to July 31, 2019 | 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 | 525 | 41.70 | % | 732 | 58.14 | % | ||||||
25 - <50 | 0 | — | 2 | 0.16 | % | |||||||
50 - <75 | 0 | — | 0 | — | ||||||||
75 - <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 525 | 41.70 | % | 734 | 58.30 | % |
Fidelity MSCI Health Care Index ETF
Period Ended July 31, 2019 | ||||||||||||
From July 31, 2014 to July 31, 2019 | 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 | 462 | 36.70 | % | 796 | 63.22 | % | ||||||
25 - <50 | 0 | — | 1 | 0.08 | % | |||||||
50 - <75 | 0 | — | 0 | — | ||||||||
75 - <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 462 | 36.70 | % | 797 | 63.30 | % |
Fidelity MSCI Industrials Index ETF
Period Ended July 31, 2019 | ||||||||||||
From July 31, 2014 to July 31, 2019 | 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 | 564 | 44.80 | % | 689 | 54.72 | % | ||||||
25 - <50 | 1 | 0.08 | % | 4 | 0.32 | % | ||||||
50 - <75 | 1 | 0.08 | % | 0 | — | |||||||
75 - <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 566 | 44.96 | % | 693 | 55.04 | % |
Annual Report | 110 |
Table of Contents
Fidelity MSCI Information Technology Index ETF
Period Ended July 31, 2019 | ||||||||||||
From July 31, 2014 to July 31, 2019 | 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 | 358 | 28.43 | % | 900 | 71.49 | % | ||||||
25 - <50 | 1 | 0.08 | % | 0 | — | |||||||
50 - <75 | 0 | — | 0 | — | ||||||||
75 - <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 359 | 28.51 | % | 900 | 71.49 | % |
Fidelity MSCI Materials Index ETF
Period Ended July 31, 2019 | ||||||||||||
From July 31, 2014 to July 31, 2019 | 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 | 625 | 49.64 | % | 621 | 49.32 | % | ||||||
25 - <50 | 5 | 0.40 | % | 6 | 0.48 | % | ||||||
50 - <75 | 0 | — | 2 | 0.16 | % | |||||||
75 - <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 630 | 50.04 | % | 629 | 49.96 | % |
Fidelity MSCI Real Estate Index ETF
Period Ended July 31, 2019 | ||||||||||||
From commencement of operations * to July 31, 2019 | 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 | 344 | 30.47 | % | 751 | 66.52 | % | ||||||
25 - <50 | 6 | 0.53 | % | 21 | 1.86 | % | ||||||
50 - <75 | 2 | 0.18 | % | 2 | 0.18 | % | ||||||
75 - <100 | 0 | — | 1 | 0.08 | % | |||||||
100 or above | 1 | 0.09 | % | 1 | 0.09 | % | ||||||
Total | 353 | 31.27 | % | 776 | 68.73 | % |
* | From February 5, 2015, date initially listed on the NYSE ARCA exchange. |
Fidelity MSCI Utilities Index ETF
Period Ended July 31, 2019 | ||||||||||||
From July 31, 2014 to July 31, 2019 | 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 | 540 | 42.89 | % | 715 | 56.79 | % | ||||||
25 - <50 | 2 | 0.16 | % | 2 | 0.16 | % | ||||||
50 - <75 | 0 | — | 0 | — | ||||||||
75 - <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 542 | 43.05 | % | 717 | 56.95 | % |
111 | Annual Report |
Table of Contents
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. Except for Michael E. Wiley, each of the Trustees oversees 298 funds. Mr. Wiley oversees 197 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 otherTrustees; 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 funds’ Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at1-800-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 particularTrustee 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. James C. Curvey 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. Ned C. Lautenbach 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 high income and certain equity funds, and other Boards oversee Fidelity’s investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the funds’ Board. 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.
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The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds’ activities and associated risks. The Board, acting through its committees, has charged SelectCo and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds’ business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because theday-to-day operations and activities of the funds are carried out by or through SelectCo, its affiliates, and other service providers, the funds’ exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board’s committees has responsibility for overseeing different aspects of the funds’ activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the funds’ Chief Compliance Officer (CCO), SelectCo’s internal auditor, the independent accountants, the funds’ Treasurer and portfolio management personnel, make periodic reports to the Board’s committees, as appropriate, including an annual review of Fidelity’s risk management program for the Fidelity® funds. 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+ |
James C. Curvey (1935) |
Year of Election or Appointment: 2018 |
Trustee |
Chairman of the Board of Trustees |
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms, 2007-2014). |
* | Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with SelectCo. |
+ | The information includes the Trustee’s principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee’s qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund. |
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
Dennis J. Dirks (1948) |
Year of Election or Appointment: 2018 |
Trustee |
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College(2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County(2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee (2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre. |
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Trustees and Officers (Unaudited) – continued
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
Donald F. Donahue (1950) |
Year of Election or Appointment: 2018 |
Trustee |
Mr. Donahue also serves as a Trustee 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). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and 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 (2007-present) andCo-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 servicesnon-profit, 2009-2012) and the International Securities Services Association (2009-2012). |
Alan J. Lacy (1953) |
Year of Election or Appointment: 2018 |
Trustee |
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011). |
Ned C. Lautenbach (1944) |
Year of Election or Appointment: 2018 |
Trustee |
Chairman of the Independent Trustees |
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples (2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998). |
Joseph Mauriello (1944) |
Year of Election or Appointment: 2018 |
Trustee |
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance andre-insurance, 2006-2018). |
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Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
Cornelia M. Small (1944) |
Year of Election or Appointment: 2018 |
Trustee |
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments. |
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). |
David M. Thomas (1949) |
Year of Election or Appointment: 2018 |
Trustee |
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves asNon-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products, 2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018). |
Michael E. Wiley (1950) |
Year of Election or Appointment: 2013 |
Trustee |
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). |
+ | 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. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Vicki L. Fuller (1957)
Year of Election or Appointment: 2018
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Trustees and Officers (Unaudited) – continued
Name, Year of Birth; Principal Occupation |
Member of the Advisory Board |
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). |
Peter S. Lynch (1944) |
Year of Election or Appointment: 2018 |
Member of the Advisory Board |
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006). |
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. |
Craig S. Brown (1977) |
Year of Election or Appointment: 2019 |
Assistant Treasurer |
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments(2013-present). John J. Burke III (1964) Year of Election or Appointment: 2018 Chief Financial Officer Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018). |
William C. Coffey (1969) |
Year of Election or Appointment: 2018 |
Secretary and Chief Legal Officer (CLO) |
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms,2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009). |
Timothy M. Cohen (1969) |
Year of Election or Appointment: 2018 |
Vice President |
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present),Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017). |
Annual Report | 116 |
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Name, Year of Birth; Principal Occupation |
Jonathan Davis (1968) |
Year of Election or Appointment: 2010 |
Assistant Treasurer |
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc. (2017-present) 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: 2018 |
Assistant Treasurer |
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc.(2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm,2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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. |
Laura M. Del Prato (1964) |
Year of Election or Appointment: 2018 |
Assistant Treasurer |
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012). |
Colm A. Hogan (1973) |
Year of Election or Appointment: 2018 |
Deputy Treasurer |
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc.(2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018). |
Pamela R. Holding (1964) |
Year of Election or Appointment: 2018 |
Vice President |
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present),Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018). |
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, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), 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). |
Kenneth B. Robins (1969) |
Year of Election or Appointment: 2018 |
Chief Compliance Officer |
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles. |
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Trustees and Officers (Unaudited) – continued
Name, Year of Birth; Principal Occupation |
Stacie M. Smith (1974) |
Year of Election or Appointment: 2018 |
President and Treasurer |
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc.(2017-present), 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 Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds. |
Marc L. Spector (1972) |
Year of Election or Appointment: 2017 |
Assistant Treasurer |
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc.(2017-present) and 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). |
Jim Wegmann (1979) |
Year of Election or Appointment: 2019 |
Assistant Treasurer |
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments (2011-present). |
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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, 2019 to July 31, 2019).
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 itspro-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 itspro-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, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During PeriodB February 1, 2019 to July 31, 2019 | |||||||||||||
Fidelity MSCI Communication Services Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,100.00 | $ | 0.42 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Consumer Discretionary Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,103.00 | $ | 0.42 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Consumer Staples Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,122.50 | $ | 0.42 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Energy Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 979.30 | $ | 0.39 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Financials Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,104.30 | $ | 0.42 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Health Care Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,022.60 | $ | 0.40 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Industrials Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,107.20 | $ | 0.42 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 |
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Shareholder Expense Example – continued
Annualized Expense RatioA | Beginning Account Value February 1, 2019 | Ending Account Value July 31, 2019 | Expenses Paid During PeriodB February 1, 2019 to July 31, 2019 | |||||||||||||
Fidelity MSCI Information Technology Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,219.20 | $ | 0.44 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Materials Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,082.20 | $ | 0.41 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Real Estate Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,084.20 | $ | 0.41 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 | ||||||||||
Fidelity MSCI Utilities Index ETF | 0.08% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,101.40 | $ | 0.42 | ||||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,024.40 | $ | 0.40 |
A | Annualized expense ratio reflects expenses net of applicable fee waivers. |
B | Expenses are equal to each Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period). |
C | 5% return per year before expenses. |
Annual Report | 120 |
Table of Contents
A percentage of the dividends distributed during the fiscal year for the following funds qualifies for the dividend-received deduction for corporate shareholders:
September 2018 | December 2018 | March 2019 | June 2019 | |||||||||||||
Fidelity MSCI Communication Services Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Consumer Discretionary Index ETF | 97 | % | 97 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Consumer Staples Index ETF | 98 | % | 98 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Energy Index ETF | 87 | % | 87 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Financials Index ETF | 90 | % | 90 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Health Care Index ETF | 92 | % | 92 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Industrials Index ETF | 92 | % | 92 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Information Technology Index ETF | 95 | % | 95 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Materials Index ETF | 89 | % | 89 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Real Estate Index ETF | — | — | 1 | % | 1 | % | ||||||||||
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 2018 | December 2018 | March 2019 | June 2019 | |||||||||||||
Fidelity MSCI Communication Services Index ETF | 93 | % | 93 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Consumer Discretionary Index ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Consumer Staples Index ETF | 98 | % | 98 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Energy Index ETF | 95 | % | 95 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Financials Index ETF | 95 | % | 95 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Health Care Index ETF | 95 | % | 95 | % | 100 | % | 100 | % | ||||||||
Fidelity MSCI Industrials Index ETF | 96 | % | 96 | % | 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 Utilities Index ETF | 100 | % | 100 | % | 100 | % | 100 | % |
The funds will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
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EXT-ANN-0919 1.9584796.105 | 899567.1.0 |
Table of Contents
Fidelity® Dividend ETF for Rising Rates
Fidelity® High Dividend ETF
Fidelity® Low Volatility Factor ETF
Fidelity® Momentum Factor ETF
Fidelity® Quality Factor ETF
Fidelity®Small-Mid Factor ETF
Fidelity® Value Factor ETF
Annual Report July 31, 2019
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Table of Contents
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of a fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from the fund or from your financial intermediary, such as a financial advisor, broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from a fund electronically, by contacting your financial intermediary. For Fidelity customers, visit Fidelity’s web site or call Fidelity using the contact information listed below.
You may elect to receive all future reports in paper free of charge. If you wish to continue receiving paper copies of your shareholder reports, you may contact your financial intermediary or, if you are a Fidelity customer, visit Fidelity’s website, or call Fidelity at the applicable toll-free number listed below. Your election to receive reports in paper will apply to all funds held with the fund complex/your financial intermediary.
Account Type | Website | Phone Number | ||
Brokerage, Mutual Fund, or Annuity Contracts: | fidelity.com/mailpreferences | 1-800-343-3548 | ||
Employer Provided Retirement Accounts: | netbenefits.fidelity.com/preferences (choose ‘no’ under Required Disclosures to continue print) | 1-800-343-0860 |
Table of Contents
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 call1-800-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.
© 2019 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 FormN-PORT. FormsN-PORT are available on the SEC’s web site at http://www.sec.gov. A fund’s FormsN-PORT may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling1-800-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.
3 | Annual Report |
Table of Contents
The U.S. equity bellwether S&P 500® index gained 7.99% for the 12 months ending July 31, 2019, beginning the new year on a high note after enduring a historically volatile final quarter of 2018. Upbeat company earnings/outlooks and signs the Federal Reserve may pause on rates boosted stocks to anall-time high on April 30. In May, however, volatility spiked and stocks returned-6.35% for the month amid the Fed’s decision to hold interest rates steady and signal that it had little appetite to adjust them any time soon, as well as retaliatory tariffs imposed on the U.S. by China. The downtrend was similar to late 2018, when many investors fled from risk assets on elevated concerns about future economic growth, global trade and tighter monetary policy. The bull market roared back in June, with the S&P 500® rising 7.05%, and recorded a series ofall-time highs in a productive July (+1.44%). For the full 12 months, growth stocks outpaced value, while large-caps handily bested small-caps. By sector, information technology (+19%) led the way, boosted by continued strength in software & services (+26%), the market’s largest industry segment. Three defensive groups also stood out – real estate (+18%), utilities (+17%) and consumer staples (+15%) – followed by consumer discretionary (+10%) and communication services (+8%). In contrast, energy(-16%) was by far the weakest sector. Other notable laggards included materials (0%), financials (+3%), industrials (+4%) and health care (+4%).
Annual Report | 4 |
Table of Contents
Fidelity® Dividend ETF for Rising Rates
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 average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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 Periods Ended July 31, 2019 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity Dividend ETF for Rising Rates – NAVA | 6.09% | 12.09% | ||||||
Fidelity Dividend ETF for Rising Rates – Market PriceB | 6.06% | 12.27% | ||||||
Fidelity Dividend Index For Rising RatesA | 6.44% | 12.51% | ||||||
Russell 1000 IndexA | 8.00% | 14.03% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity® Dividend ETF For Rising Rates 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.
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. |
$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.
5 | Annual Report |
Table of Contents
Fidelity® Dividend for Rising Rates ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value rose 6.09%, and its market price gained 6.06%, each compared with the 6.44% gain of the Fidelity Dividend Index for Rising Rates. Eight out of eleven sectors in the Fidelity index produced a positive return for the year, led by information technology (+21%) and utilities (+15%). Within technology, Microsoft (+31%) stood out to the upside, driven by growth in the company’s cloud-computing business. Shares of Cisco Systems (+35%) also rose notably, due partly to recurring subscription-based revenue. Elsewhere, consumer branded goods company Procter & Gamble (+50%) benefited from better-than-expected sales gains. Conversely, energy(-12%) performed the worst among all sectors, followed by health care(-4%) and materials(-4%). Among individual stocks, shares of biotech firm AbbVie(-24%) stood out to the downside, as investors appeared to disapprove of the company’s plans to acquire Allergan in a $63 billion deal. Somewhat similarly, mounting concerns about drug maker Bristol-Myers Squibb’s(-22%) pending acquisition of Celgene weighed on the former company’s stock.
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 March 22, 2019, Pat Waddell retired and is no longer a portfolio manager with Geode Capital Management.
Annual Report | 6 |
Table of Contents
Fidelity® Dividend for Rising Rates ETF
Investment Summary(Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Microsoft Corp. | 4.8 | |||
Apple, Inc. | 4.4 | |||
Johnson & Johnson | 2.4 | |||
JPMorgan Chase & Co. | 2.3 | |||
Merck & Co., Inc. | 2.1 | |||
Pfizer, Inc. | 1.9 | |||
Bank of America Corp. | 1.9 | |||
Cisco Systems, Inc. | 1.8 | |||
The Procter & Gamble Co. | 1.8 | |||
Intel Corp. | 1.6 | |||
|
| |||
25.0 | ||||
|
|
Top Market Sectors as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Information Technology | 22.9 | |||
Financials | 13.3 | |||
Health Care | 13.2 | |||
Consumer Discretionary | 10.4 | |||
Industrials | 9.8 | |||
Communication Services | 9.5 | |||
Consumer Staples | 6.4 | |||
Energy | 4.7 | |||
Real Estate | 3.5 | |||
Utilities | 3.2 |
Asset Allocation as of July 31, 2019 |
Percentagesshown as 0.0% may reflect amounts less than 0.05%.
* | Foreign investments – 7.8% |
7 | Annual Report |
Table of Contents
Fidelity® High Dividend ETF
Performance(Unaudited)
The information provided in the tables below shows you the performance of Fidelity® High 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 average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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 Periods Ended July 31, 2019 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity High Dividend ETF – NAVA | 4.16% | 10.31% | ||||||
Fidelity High Dividend ETF – Market PriceB | 4.30% | 10.70% | ||||||
Fidelity High Dividend IndexA | 4.55% | 10.72% | ||||||
Russell 1000 IndexA | 8.00% | 14.03% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity® High Dividend 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.
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. |
$10,000 Over Life of Fund |
Let’s say hypothetically that $10,000 was invested in Fidelity High 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 High Dividend Index performed over the same period.
Annual Report | 8 |
Table of Contents
Fidelity® High Dividend ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value rose 4.16% and its market price gained 4.30%. This compares with an increase of 4.55% for the Fidelity High Dividend Index, which tracks the performance of stocks of large- andmid-capitalization dividend-paying companies that are expected to continue to pay and grow their dividends. Most sectors in the Fidelity index rose in value, led by information technology (+21%). Higher-yielding sectors, such as utilities (+15%) and real estate (+10%), also topped the Fidelity index. Among individual fund positions, shares of software maker Microsoft gained about 31%, fueled by continued growth in the company’s cloud-computing business. Other strong-performing technology stocks for the 12 months included network communications equipment maker Cisco Systems (+35%) and semiconductor company Broadcom (+35%). Elsewhere, Procter & Gamble (+50%) added value, as the provider of consumer goods reported better-than-expected sales. Conversely, energy(-14%) performed the worst of all sectors in the index, where a challenging pricing environment particularly weighed on shares of energy producer Occidental Petroleum(-36%) and refinerValero Energy(-27%), which was not held at period end.
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 March 22, 2019, Pat Waddell retired and is no longer a portfolio manager with Geode Capital Management.
9 | Annual Report |
Table of Contents
Fidelity® High Dividend ETF
Investment Summary(Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Microsoft Corp. | 3.3 | |||
Apple, Inc. | 3.1 | |||
The Procter & Gamble Co. | 3.0 | |||
JPMorgan Chase & Co. | 3.0 | |||
Exxon Mobil Corp. | 2.8 | |||
Chevron Corp. | 2.5 | |||
Bank of America Corp. | 2.5 | |||
PepsiCo, Inc. | 2.5 | |||
Philip Morris International, Inc. | 2.2 | |||
Wells Fargo & Co. | 2.1 | |||
|
| |||
27.0 | ||||
|
|
Top Market Sectors as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Financials | 20.6 | |||
Information Technology | 15.7 | |||
Consumer Staples | 13.4 | |||
Energy | 11.6 | |||
Utilities | 10.6 | |||
Real Estate | 10.4 | |||
Health Care | 7.3 | |||
Consumer Discretionary | 3.7 | |||
Industrials | 3.2 | |||
Communication Services | 3.1 |
Asset Allocation as of July 31, 2019 |
Short-Term Investments and Net Other Assets (Liabilities) are not included in the pie chart.
* | Foreign investments – 7.8% |
Annual Report | 10 |
Table of Contents
Fidelity® Low Volatility Factor ETF
Performance(Unaudited)
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 average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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 Periods Ended July 31, 2019 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity Low Volatility Factor ETF – NAVA | 14.20% | 15.31% | ||||||
Fidelity Low Volatility Factor ETF – Market PriceB | 14.19% | 15.71% | ||||||
Fidelity U.S. Low Volatility Factor IndexA | 14.24% | 15.58% | ||||||
Russell 1000 IndexA | 8.00% | 14.03% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity® Low Volatility Factor 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.
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. |
$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
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value rose 14.20% and its market price gained 14.19%, compared with an increase of 14.24% for the Fidelity U.S. Low Volatility Factor Index, which tracks the performance of U.S. companies with lower volatility than the broader market. Ten of eleven sectors in the Fidelity index gained in value, led by consumer staples and consumer discretionary. Within consumer discretionary, coffee retailer Starbucks (+85%) benefited from healthy sales and earnings growth, particularly in China. Other strong-performing stocks in this sector included auto-parts retailer Autozone (+59%) and restaurant operator McDonald’s (+37%). Within information technology, shares of consumer electronics and personal computer manufacturer Apple gained 14%, partly reflecting recent strength in its wearables and services businesses. Conversely, energy(-10%) was the only sector to lose ground, hurt by declining commodity prices for much of the 12 months. Among individual stocks, shares of Mednax(-21%) a service provider to pediatric physicians, stood out to the downside, largely due to weaker-than-expected financials reported in May. Elsewhere, bank company Wells Fargo(-12%) faced several challenges, including a CEO change. The fund did not hold Mednax nor Wells Fargo at period end.
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 March 22, 2019, Pat Waddell retired and is no longer a portfolio manager with Geode Capital Management.
Annual Report | 12 |
Table of Contents
Fidelity® Low Volatility Factor ETF
Investment Summary(Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Apple, Inc. | 4.2 | |||
Alphabet, Inc. Class A | 3.0 | |||
Visa, Inc. Class A | 2.1 | |||
Berkshire Hathaway, Inc. Class B | 2.0 | |||
Johnson & Johnson | 1.9 | |||
Mastercard, Inc. Class A | 1.8 | |||
Intel Corp. | 1.6 | |||
Merck & Co., Inc. | 1.5 | |||
The Home Depot, Inc. | 1.5 | |||
The Procter & Gamble Co. | 1.5 | |||
|
| |||
21.1 | ||||
|
|
Top Market Sectors as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Information Technology | 20.9 | |||
Financials | 13.8 | |||
Health Care | 13.4 | |||
Consumer Discretionary | 10.7 | |||
Industrials | 9.8 | |||
Communication Services | 9.8 | |||
Consumer Staples | 6.9 | |||
Energy | 4.6 | |||
Real Estate | 3.7 | |||
Utilities | 3.1 |
Asset Allocation as of July 31, 2019 |
* | Foreign investments – 6.7% |
13 | Annual Report |
Table of Contents
Fidelity® Momentum Factor ETF
Performance(Unaudited)
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 average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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 Periods Ended July 31, 2019 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity Momentum Factor ETF – NAVA | 7.91% | 14.07% | ||||||
Fidelity Momentum Factor ETF – Market PriceB | 8.04% | 14.44% | ||||||
Fidelity U.S. Momentum Factor IndexA | 8.19% | 14.43% | ||||||
Russell 1000 IndexA | 8.00% | 14.03% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity® Momentum Factor 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.
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. |
$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
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value rose 7.91% and its market price gained 8.04%. This compares with an increase of 8.19% for the Fidelity U.S. Momentum Factor Index, which tracks the performance of U.S. companies with positive momentum signals. Eight of the 11 sectors in the Fidelity index gained in value over the 12 months, led by information technology (+24%) and utilities (+20%). Within technology, Microsoft (+31%) performed quite well, driven by continued growth in the company’s cloud-computing business. Other contributors within technology included Mastercard (+39%) and Visa (+33%), two leading processors of electronic payments. Conversely, energy(-21%) performed the worst of all sectors by far, due to sluggish commodity pricing. Among individual positions, semiconductor company Nvidia(-35%) stood out to the downside, hampered by broad concerns for chipmakers and the company’s worse-than-expected fourth-quarter financial outlook. Elsewhere, Align Technology(-37%), a maker of orthodontic devices, saw its shares decline, partly due to sales weakness in China. The fund did not hold Nvidia nor Align Technology at period end.
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 March 22, 2019, Pat Waddell retired and is no longer a portfolio manager with Geode Capital Management.
15 | Annual Report |
Table of Contents
Fidelity® Momentum Factor ETF
Investment Summary(Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Microsoft Corp. | 4.5 | |||
Amazon.com, Inc. | 3.2 | |||
Alphabet, Inc. Class A | 3.1 | |||
Visa, Inc. Class A | 2.0 | |||
Johnson & Johnson | 1.9 | |||
Berkshire Hathaway, Inc. Class B | 1.9 | |||
JPMorgan Chase & Co. | 1.9 | |||
Mastercard, Inc. Class A | 1.7 | |||
Cisco Systems, Inc. | 1.6 | |||
Merck & Co., Inc. | 1.5 | |||
|
| |||
23.3 | ||||
|
|
Top Market Sectors as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Information Technology | 22.7 | |||
Financials | 13.5 | |||
Health Care | 13.2 | |||
Consumer Discretionary | 10.4 | |||
Communication Services | 9.7 | |||
Industrials | 9.4 | |||
Consumer Staples | 6.9 | |||
Energy | 4.4 | |||
Real Estate | 3.8 | |||
Utilities | 3.1 |
Asset Allocation as of July 31, 2019 |
* | Foreign investments – 5.8% |
Annual Report | 16 |
Table of Contents
Fidelity® Quality Factor ETF
Performance(Unaudited)
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 average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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 Periods Ended July 31, 2019 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity Quality Factor ETF – NAVA | 7.14% | 13.90% | ||||||
Fidelity Quality Factor ETF – Market PriceB | 7.14% | 14.05% | ||||||
Fidelity U.S. Quality Factor IndexA | 7.44% | 14.25% | ||||||
Russell 1000 IndexA | 8.00% | 14.03% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity® Quality Factor 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.
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. |
$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
For the fiscal year ending July 31, 2019, the exchange-traded fund (ETF) gained 7.14% based on both market price and net asset value, each in line with the 7.44% increase 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. Nine of the 11 sectors in the Fidelity index advanced over the 12 months, led by real estate (+20%) and information technology (+18%). Within technology, Microsoft (+30%) gained notably, driven by continued growth in the company’s cloud-computing business. Shares of consumer electronics and personal computer manufacturer Apple (+14%) also advanced, reflecting strength in its wearables and services businesses. Elsewhere, consumer branded goods company Procter & Gamble (+50%) saw better-than-expected sales gains. Conversely, energy(-20%) performed worst of all sectors, due to generally sluggish commodity prices, while health care(-3%) also lagged. Among individual holdings, internet-based shipping services firm Stamps.com(-76%) stood out meaningfully to the downside, driven lower partly by a shift in business strategy. Other notable laggards included biotech firms Biogen(-31%) and Abbvie(-24%), as well as graphics chipmaker Nvidia(-31%).
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 March 22, 2019, Pat Waddell retired and is no longer a portfolio manager with Geode Capital Management.
Annual Report | 18 |
Table of Contents
Fidelity® Quality Factor ETF
Investment Summary(Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Microsoft Corp. | 4.3 | |||
Apple, Inc. | 4.0 | |||
Alphabet, Inc. Class A | 3.0 | |||
Facebook, Inc. Class A | 2.1 | |||
Johnson & Johnson | 2.0 | |||
Visa, Inc. Class A | 1.8 | |||
Pfizer, Inc. | 1.6 | |||
The Home Depot, Inc. | 1.5 | |||
The Procter & Gamble Co. | 1.5 | |||
Mastercard, Inc. Class A | 1.5 | |||
|
| |||
23.3 | ||||
|
|
Top Market Sectors as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Information Technology | 23.0 | |||
Financials | 14.3 | |||
Health Care | 13.0 | |||
Consumer Discretionary | 10.0 | |||
Communication Services | 10.0 | |||
Industrials | 8.9 | |||
Consumer Staples | 6.6 | |||
Energy | 4.5 | |||
Real Estate | 3.7 | |||
Utilities | 3.0 |
Asset Allocation as of July 31, 2019 |
* | Foreign investments – 4.6% |
19 | Annual Report |
Table of Contents
Fidelity®Small-Mid Factor ETF
Investment Summary(Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
MarketAxess Holdings, Inc. | 0.4 | |||
HEICO Corp. Class A | 0.4 | |||
Paycom Software, Inc. | 0.4 | |||
FactSet Research Systems, Inc. | 0.4 | |||
WR Berkley Corp. | 0.4 | |||
Fair Isaac Corp. | 0.4 | |||
Live Nation Entertainment, Inc. | 0.4 | |||
West Pharmaceutical Services, Inc. | 0.3 | |||
RingCentral, Inc. Class A | 0.3 | |||
Teledyne Technologies, Inc. | 0.3 | |||
|
| |||
3.7 | ||||
|
|
Top Market Sectors as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Financials | 16.2 | |||
Industrials | 16.2 | |||
Information Technology | 15.3 | |||
Consumer Discretionary | 12.6 | |||
Health Care | 12.2 | |||
Real Estate | 9.4 | |||
Materials | 5.1 | |||
Communication Services | 4.0 | |||
Consumer Staples | 3.1 | |||
Energy | 3.0 |
Asset Allocation as of July 31, 2019 |
Annual Report | 20 |
Table of Contents
Fidelity® Value Factor ETF
Performance(Unaudited)
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 average annual total returns and is further explained in this section.*
The fund’s net asset value (NAV) performance is based on the NAV calculated each business day. It is calculated in accordance with the standard formula for valuing investment company shares as of the close of regular trading hours on NYSE Arca, Inc. (NYSE Arca) (normally 4:00 p.m. Eastern Time). The fund’s market price performance is based on the daily closing price of the shares of the fund on NYSE Arca. Since ETFs are bought and sold at prices set by the market – which can result in a premium or discount to NAV – the returns calculated using market price (market return) can differ from those calculated using NAV (NAV return). For information on these differences, please visit Fidelity.com or see the prospectus. The fund’s returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Current performance may be higher or lower than the performance data quoted. Formonth-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 Periods Ended July 31, 2019 | ||||||||
Average Annual Total Returns | Past 1 Year | Life of fund | ||||||
Fidelity Value Factor ETF – NAVA | 3.95% | 13.27% | ||||||
Fidelity Value Factor ETF – Market PriceB | 4.08% | 13.56% | ||||||
Fidelity U.S. Value Factor IndexA | 4.25% | 13.63% | ||||||
Russell 1000 IndexA | 8.00% | 14.03% |
Average annual total returns represent just that – the average return on an annual basis for Fidelity® Value Factor 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.
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. |
$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.
21 | Annual Report |
Table of Contents
Fidelity® Value Factor ETF
Management’s Discussion of Fund Performance
For the fiscal year ending July 31, 2019, the exchange-traded fund’s (ETF) net asset value rose 3.95% and its market price advanced 4.08%. This compares with a 4.25% gain for the fund’s benchmark, the Fidelity U.S. Value Factor Index, which tracks the performance of shares of U.S. companies with above-average quality characteristics. Eight of eleven sectors in the Fidelity index gained in value, led by information technology (+15%) and communication services (+11%). Among technology names, shares of software maker Microsoft rose about 31%, driven by continued growth in the company’s cloud-computing business. Consumer electronics and personal computer manufacturer Apple (+14%) also advanced, partly reflecting recent strength in its wearables and services businesses. Elsewhere, coffee retailer Starbucks (+35%) benefited from strong sales and earnings growth, particularly in China. Conversely, the materials(-31%), energy(-14%) and health care(-6%) sectors each declined. Among individual stocks, department store chain Macy’s(-41%) stood out to the downside in a difficult retail environment. Within health care, United Therapeutics(-36%) and Biogen(-29%) each slid, partly due to unfavorable drug-trial results.
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 March 22, 2019, Pat Waddell retired and is no longer a portfolio manager with Geode Capital Management.
Annual Report | 22 |
Table of Contents
Fidelity® Value Factor ETF
Investment Summary(Unaudited)
Top Ten Stocks as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Microsoft Corp. | 4.5 | |||
Apple, Inc. | 4.2 | |||
Alphabet, Inc. Class A | 3.0 | |||
Johnson & Johnson | 2.1 | |||
Facebook, Inc. Class A | 2.0 | |||
Berkshire Hathaway, Inc. Class B | 2.0 | |||
JPMorgan Chase & Co. | 1.9 | |||
Visa, Inc. Class A | 1.9 | |||
The Home Depot, Inc. | 1.7 | |||
Mastercard, Inc. Class A | 1.6 | |||
|
| |||
24.9 | ||||
|
|
Top Market Sectors as of July 31, 2019 | ||||
% of fund’s net assets | ||||
Information Technology | 23.1 | |||
Financials | 14.0 | |||
Health Care | 12.4 | |||
Communication Services | 10.3 | |||
Consumer Discretionary | 10.2 | |||
Industrials | 10.0 | |||
Consumer Staples | 6.3 | |||
Energy | 4.7 | |||
Real Estate | 3.5 | |||
Utilities | 3.1 |
Asset Allocation as of July 31, 2019 |
Percentages shown as 0.0% may reflect amounts less than 0.05%.
* | Foreign investments – 4.1% |
23 | Annual Report |
Table of Contents
Fidelity® Dividend ETF for Rising Rates
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.7% | ||||||||
Shares | Value | |||||||
COMMUNICATION SERVICES – 9.5% |
| |||||||
Diversified Telecommunication Services – 2.7% |
| |||||||
AT&T, Inc. | 131,723 | $ | 4,485,168 | |||||
CenturyLink, Inc. | 82,002 | 991,404 | ||||||
Verizon Communications, Inc. | 73,996 | 4,089,759 | ||||||
|
| |||||||
9,566,331 | ||||||||
|
| |||||||
Entertainment – 2.5% |
| |||||||
Activision Blizzard, Inc. | 32,610 | 1,589,411 | ||||||
Cinemark Holdings, Inc. | 27,417 | 1,094,487 | ||||||
The Walt Disney Co. | 29,227 | 4,179,753 | ||||||
Viacom, Inc. Class B | 40,956 | 1,243,015 | ||||||
World Wrestling Entertainment, Inc. Class A | 13,451 | 978,964 | ||||||
|
| |||||||
9,085,630 | ||||||||
|
| |||||||
Media – 4.0% | ||||||||
Cable One, Inc. | 1,271 | 1,546,553 | ||||||
CBS Corp. Class B | 25,954 | 1,336,890 | ||||||
Comcast Corp. Class A | 89,207 | 3,851,066 | ||||||
Nexstar Media Group, Inc. Class A | 13,348 | 1,358,426 | ||||||
Omnicom Group, Inc. | 16,621 | 1,333,337 | ||||||
Sirius XM Holdings, Inc. | 198,854 | 1,244,826 | ||||||
The Interpublic Group of Cos., Inc. | 51,847 | 1,188,333 | ||||||
The New York Times Co. Class A | 43,229 | 1,542,411 | ||||||
Tribune Media Co. Class A | 24,160 | 1,122,715 | ||||||
|
| |||||||
14,524,557 | ||||||||
|
| |||||||
Wireless Telecommunication Services – 0.3% |
| |||||||
Telephone & Data Systems, Inc. | 30,504 | 986,500 | ||||||
|
| |||||||
TOTAL COMMUNICATION SERVICES |
| 34,163,018 | ||||||
|
| |||||||
CONSUMER DISCRETIONARY – 10.4% |
| |||||||
Automobiles – 1.3% |
| |||||||
Ford Motor Co. | 244,415 | 2,329,275 | ||||||
General Motors Co. | 60,823 | 2,453,600 | ||||||
|
| |||||||
4,782,875 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure – 2.8% |
| |||||||
Las Vegas Sands Corp. | 33,919 | 2,050,064 | ||||||
McDonald’s Corp. | 19,687 | 4,148,445 | ||||||
Starbucks Corp. | 41,305 | 3,911,170 | ||||||
|
| |||||||
10,109,679 | ||||||||
|
| |||||||
Household Durables – 0.4% | ||||||||
Persimmon PLC | 54,141 | 1,322,743 | ||||||
|
| |||||||
Multiline Retail – 1.1% | ||||||||
Macy’s, Inc. | 68,567 | 1,558,528 | ||||||
Target Corp. | 30,134 | 2,603,578 | ||||||
|
| |||||||
4,162,106 | ||||||||
|
| |||||||
Specialty Retail – 3.5% | ||||||||
L Brands, Inc. | 63,940 | 1,659,243 | ||||||
Lowe’s Cos., Inc. | 28,267 | 2,866,274 | ||||||
The Home Depot, Inc. | 24,200 | 5,171,298 |
Shares | Value | |||||||
The TJX Cos., Inc. | 50,467 | $ | 2,753,479 | |||||
|
| |||||||
12,450,294 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods – 1.3% |
| |||||||
NIKE, Inc. Class B | 37,614 | 3,235,932 | ||||||
Pandora A/S | 39,067 | 1,504,582 | ||||||
|
| |||||||
4,740,514 | ||||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY |
| 37,568,211 | ||||||
|
| |||||||
CONSUMER STAPLES – 6.4% |
| |||||||
Beverages – 1.3% |
| |||||||
The Coca-Cola Co. | 91,881 | 4,835,697 | ||||||
|
| |||||||
Food Products – 0.4% | ||||||||
The Kraft Heinz Co. | 49,530 | 1,585,455 | ||||||
|
| |||||||
Household Products – 1.8% | ||||||||
The Procter & Gamble Co. | 53,525 | 6,318,091 | ||||||
|
| |||||||
Tobacco – 2.9% | ||||||||
Altria Group, Inc. | 65,080 | 3,063,316 | ||||||
British American Tobacco PLC | 56,147 | 2,015,636 | ||||||
Imperial Brands PLC | 59,584 | 1,518,039 | ||||||
Philip Morris International, Inc. | 46,437 | 3,882,597 | ||||||
|
| |||||||
10,479,588 | ||||||||
|
| |||||||
TOTAL CONSUMER STAPLES |
| 23,218,831 | ||||||
|
| |||||||
ENERGY – 4.7% |
| |||||||
Energy Equipment & Services – 0.5% |
| |||||||
Schlumberger Ltd. | 48,985 | 1,957,931 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels – 4.2% | ||||||||
Chevron Corp. | 37,145 | 4,572,921 | ||||||
Exxon Mobil Corp. | 74,649 | 5,550,899 | ||||||
Kinder Morgan, Inc. | 99,987 | 2,061,732 | ||||||
Occidental Petroleum Corp. | 30,306 | 1,556,516 | ||||||
Targa Resources Corp. | 34,570 | 1,345,119 | ||||||
|
| |||||||
15,087,187 | ||||||||
|
| |||||||
TOTAL ENERGY |
| 17,045,118 | ||||||
|
| |||||||
FINANCIALS – 13.3% |
| |||||||
Banks – 5.7% |
| |||||||
Bank of America Corp. | 221,639 | 6,799,884 | ||||||
JPMorgan Chase & Co. | 71,764 | 8,324,624 | ||||||
Wells Fargo & Co. | 114,829 | 5,558,872 | ||||||
|
| |||||||
20,683,380 | ||||||||
|
| |||||||
Capital Markets – 0.9% |
| |||||||
Invesco Ltd. | 163,261 | 3,132,979 | ||||||
|
| |||||||
Insurance – 2.0% | ||||||||
Old Republic International Corp. | 146,317 | 3,337,491 | ||||||
Prudential Financial, Inc. | 36,675 | 3,715,544 | ||||||
|
| |||||||
7,053,035 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs) – 4.7% |
| |||||||
AGNC Investment Corp. | 167,504 | 2,871,018 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 24 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
FINANCIALS – continued |
| |||||||
Mortgage Real Estate Investment Trusts (REITs) – continued |
| |||||||
Annaly Capital Management, Inc. | 293,605 | $ | 2,803,928 | |||||
Chimera Investment Corp. | 153,536 | 2,960,174 | ||||||
MFA Financial, Inc. | 397,888 | 2,856,836 | ||||||
New Residential Investment Corp. | 174,127 | 2,732,053 | ||||||
Two Harbors Investment Corp. | 200,347 | 2,696,671 | ||||||
|
| |||||||
16,920,680 | ||||||||
|
| |||||||
TOTAL FINANCIALS |
| 47,790,074 | ||||||
|
| |||||||
HEALTH CARE – 13.2% |
| |||||||
Biotechnology – 4.4% |
| |||||||
AbbVie, Inc. | 72,127 | 4,805,101 | ||||||
Amgen, Inc. | 30,844 | 5,754,873 | ||||||
Gilead Sciences, Inc. | 76,960 | 5,042,419 | ||||||
|
| |||||||
15,602,393 | ||||||||
|
| |||||||
Health Care Providers & Services – 1.1% |
| |||||||
Cardinal Health, Inc. | 87,810 | 4,015,551 | ||||||
|
| |||||||
Pharmaceuticals – 7.7% | ||||||||
Bristol-Myers Squibb Co. | 106,488 | 4,729,132 | ||||||
Johnson & Johnson | 66,997 | 8,724,349 | ||||||
Merck & Co., Inc. | 90,739 | 7,530,430 | ||||||
Pfizer, Inc. | 175,252 | 6,806,788 | ||||||
|
| |||||||
27,790,699 | ||||||||
|
| |||||||
TOTAL HEALTH CARE |
| 47,408,643 | ||||||
|
| |||||||
INDUSTRIALS – 9.8% |
| |||||||
Aerospace & Defense – 2.2% |
| |||||||
Lockheed Martin Corp. | 6,503 | 2,355,192 | ||||||
The Boeing Co. | 9,417 | 3,212,892 | ||||||
United Technologies Corp. | 18,665 | 2,493,644 | ||||||
|
| |||||||
8,061,728 | ||||||||
|
| |||||||
Air Freight & Logistics – 0.8% | ||||||||
Royal Mail PLC | 264,552 | 674,650 | ||||||
United Parcel Service, Inc. Class B | 18,079 | 2,159,898 | ||||||
|
| |||||||
2,834,548 | ||||||||
|
| |||||||
Airlines – 0.4% | ||||||||
Delta Air Lines, Inc. | 27,186 | 1,659,433 | ||||||
|
| |||||||
Building Products – 0.5% | ||||||||
Johnson Controls International PLC | 39,962 | 1,695,987 | ||||||
|
| |||||||
Electrical Equipment – 0.8% | ||||||||
Eaton Corp. PLC | 17,963 | 1,476,379 | ||||||
Emerson Electric Co. | 22,523 | 1,461,292 | ||||||
|
| |||||||
2,937,671 | ||||||||
|
| |||||||
Industrial Conglomerates – 1.9% | ||||||||
3M Co. | 12,376 | 2,162,335 | ||||||
Honeywell International, Inc. | 16,278 | 2,807,304 | ||||||
Jardine Matheson Holdings Ltd. | 14,619 | 890,151 |
Shares | Value | |||||||
Jardine Strategic Holdings Ltd. | 24,507 | $ | 845,491 | |||||
|
| |||||||
6,705,281 | ||||||||
|
| |||||||
Machinery – 1.4% | ||||||||
Caterpillar, Inc. | 14,838 | 1,953,720 | ||||||
Illinois Tool Works, Inc. | 10,830 | 1,670,311 | ||||||
PACCAR, Inc. | 18,858 | 1,322,700 | ||||||
|
| |||||||
4,946,731 | ||||||||
|
| |||||||
Professional Services – 0.3% | ||||||||
Randstad N.V. | 19,315 | 973,723 | ||||||
|
| |||||||
Road & Rail – 1.3% | ||||||||
Norfolk Southern Corp. | 9,189 | 1,756,202 | ||||||
Union Pacific Corp. | 15,636 | 2,813,698 | ||||||
|
| |||||||
4,569,900 | ||||||||
|
| |||||||
Transportation Infrastructure – 0.2% |
| |||||||
Macquarie Infrastructure Corp. | 22,634 | 937,953 | ||||||
|
| |||||||
TOTAL INDUSTRIALS |
| 35,322,955 | ||||||
|
| |||||||
INFORMATION TECHNOLOGY – 22.9% |
| |||||||
Communications Equipment – 1.8% |
| |||||||
Cisco Systems, Inc. | 114,255 | 6,329,727 | ||||||
|
| |||||||
IT Services – 1.3% | ||||||||
International Business Machines Corp. | 31,301 | 4,640,060 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 6.6% |
| |||||||
Applied Materials, Inc. | 79,307 | 3,915,387 | ||||||
Broadcom, Inc. | 15,130 | 4,387,549 | ||||||
Intel Corp. | 115,411 | 5,834,026 | ||||||
QUALCOMM, Inc. | 68,378 | 5,002,534 | ||||||
Texas Instruments, Inc. | 38,447 | 4,806,259 | ||||||
|
| |||||||
23,945,755 | ||||||||
|
| |||||||
Software – 5.5% | ||||||||
Micro Focus International PLC | 112,585 | 2,380,671 | ||||||
Microsoft Corp. | 127,110 | 17,321,280 | ||||||
|
| |||||||
19,701,951 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 7.7% |
| |||||||
Apple, Inc. | 75,236 | 16,028,277 | ||||||
Hewlett Packard Enterprise Co. | 185,163 | 2,660,792 | ||||||
HP, Inc. | 138,527 | 2,914,608 | ||||||
Seagate Technology PLC | 61,976 | 2,870,109 | ||||||
Western Digital Corp. | 61,413 | 3,309,547 | ||||||
|
| |||||||
27,783,333 | ||||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY |
| 82,400,826 | ||||||
|
| |||||||
MATERIALS – 2.8% |
| |||||||
Chemicals – 1.9% |
| |||||||
Air Products & Chemicals, Inc. | 7,034 | 1,605,651 | ||||||
Corteva, Inc. | 14,282 | 421,319 | ||||||
Dow, Inc. | 14,282 | 691,820 | ||||||
DuPont de Nemours, Inc. | 14,331 | 1,034,125 | ||||||
Linde PLC | 11,457 | 2,191,495 |
See accompanying notes which are an integral part of the financial statements.
25 | Annual Report |
Table of Contents
Fidelity® Dividend ETF for Rising Rates
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
MATERIALS – continued |
| |||||||
Chemicals – continued |
| |||||||
LyondellBasell Industries N.V. Class A | 11,927 | $ | 998,171 | |||||
|
| |||||||
6,942,581 | ||||||||
|
| |||||||
Containers & Packaging – 0.5% | ||||||||
International Paper Co. | 19,601 | 860,680 | ||||||
Westrock Co. | 19,949 | 719,161 | ||||||
|
| |||||||
1,579,841 | ||||||||
|
| |||||||
Metals & Mining – 0.4% | ||||||||
Alumina Ltd. | 381,348 | 610,236 | ||||||
Nucor Corp. | 15,178 | 825,380 | ||||||
|
| |||||||
1,435,616 | ||||||||
|
| |||||||
TOTAL MATERIALS |
| 9,958,038 | ||||||
|
| |||||||
REAL ESTATE – 3.5% |
| |||||||
Equity Real Estate Investment Trusts (REITs) – 3.3% |
| |||||||
American Tower Corp. | 9,270 | 1,961,717 | ||||||
Crown Castle International Corp. | 10,539 | 1,404,427 | ||||||
Hospitality Properties Trust | 24,393 | 602,751 | ||||||
Iron Mountain, Inc. | 19,705 | 579,524 | ||||||
Kimco Realty Corp. | 40,388 | 775,854 | ||||||
Park Hotels & Resorts, Inc. | 22,358 | 590,475 | ||||||
Public Storage | 4,771 | 1,158,208 | ||||||
RLJ Lodging Trust | 34,251 | 591,857 | ||||||
Sabra Health Care REIT, Inc. | 31,201 | 643,989 | ||||||
Senior Housing Properties Trust | 46,162 | 378,528 | ||||||
Simon Property Group, Inc. | 7,345 | 1,191,359 | ||||||
Uniti Group, Inc. | 32,245 | 271,503 | ||||||
Welltower, Inc. | 12,608 | 1,047,977 | ||||||
Weyerhaeuser Co. | 32,471 | 825,088 | ||||||
|
| |||||||
12,023,257 | ||||||||
|
| |||||||
Real Estate Management & Development – 0.2% |
| |||||||
Hongkong Land Holdings Ltd. | 83,300 | 509,796 | ||||||
|
| |||||||
TOTAL REAL ESTATE |
| 12,533,053 | ||||||
|
|
Shares | Value | |||||||
UTILITIES – 3.2% |
| |||||||
Electric Utilities – 2.8% |
| |||||||
Duke Energy Corp. | 18,624 | $ | 1,615,073 | |||||
Edison International | 18,498 | 1,378,841 | ||||||
Exelon Corp. | 29,800 | 1,342,788 | ||||||
NextEra Energy, Inc. | 10,855 | 2,248,830 | ||||||
PPL Corp. | 35,459 | 1,050,650 | ||||||
SSE PLC | 52,523 | 702,925 | ||||||
The Southern Co. | 30,302 | 1,702,973 | ||||||
|
| |||||||
10,042,080 | ||||||||
|
| |||||||
Multi-Utilities – 0.4% | ||||||||
Dominion Energy, Inc. | 21,604 | 1,604,961 | ||||||
|
| |||||||
TOTAL UTILITIES |
| 11,647,041 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 359,055,808 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
Fidelity Cash Central Fund, 2.43% (a) | 553,662 | 553,773 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 99.8% |
| 359,609,581 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.2% |
| 619,866 | ||||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 360,229,447 | |||||
|
|
Legend
(a) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualizedseven-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. |
Futures Contracts | ||||||||||||||||||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||
Purchased | ||||||||||||||||||||
Equity Index Contract | ||||||||||||||||||||
CMEE-mini S&P 500 Index Future Contracts | 8 | September 2019 | 1,192,920 | $(5,408) | $ | (5,408 | ) | |||||||||||||
|
|
The notional amount of futures purchased as a percentage of Net Assets is 0.3%
See accompanying notes which are an integral part of the financial statements.
Annual Report | 26 |
Table of Contents
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 | $ | 10,540 | ||
Fidelity Securities Lending Cash Central Fund | 26,251 | |||
|
| |||
Total | $ | 36,791 | ||
|
|
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received from lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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: | ||||||||||||||||
Communication Services | $ | 34,163,018 | $ | 34,163,018 | $ | — | $ | — | ||||||||
Consumer Discretionary | 37,568,211 | 37,568,211 | — | — | ||||||||||||
Consumer Staples | 23,218,831 | 23,218,831 | — | — | ||||||||||||
Energy | 17,045,118 | 17,045,118 | — | — | ||||||||||||
Financials | 47,790,074 | 47,790,074 | — | — | ||||||||||||
Health Care | 47,408,643 | 47,408,643 | — | — | ||||||||||||
Industrials | 35,322,955 | 35,322,955 | — | — | ||||||||||||
Information Technology | 82,400,826 | 82,400,826 | — | — | ||||||||||||
Materials | 9,958,038 | 9,958,038 | — | — | ||||||||||||
Real Estate | 12,533,053 | 12,533,053 | — | — | ||||||||||||
Utilities | 11,647,041 | 11,647,041 | — | — | ||||||||||||
Money Market Funds | 553,773 | 553,773 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 359,609,581 | $ | 359,609,581 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Instruments: | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (5,408 | ) | $ | (5,408 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | $ | (5,408 | ) | $ | (5,408 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Derivative Instruments: | $ | (5,408 | ) | $ | (5,408 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
|
Value of Derivative Instruments
The following table is a summary of the Fund’s value of derivative instruments by primary risk exposure as of July 31, 2019. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Value | ||||||||
Primary Risk/ Derivative Type | Asset | Liabilities | ||||||
Equity Risk | ||||||||
Futures Contracts(a) | $ | 0 | $ | (5,408 | ) | |||
|
|
|
| |||||
Total Equity Risk | 0 | (5,408 | ) | |||||
|
|
|
| |||||
Total Value of Derivatives | $ | 0 | $ | (5,408 | ) | |||
|
|
|
|
(a) | Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in distributable earnings. |
See accompanying notes which are an integral part of the financial statements.
27 | Annual Report |
Table of Contents
Fidelity® High Dividend ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.6% | ||||||||
Shares | Value | |||||||
COMMUNICATION SERVICES – 3.1% | ||||||||
Diversified Telecommunication Services – 0.9% |
| |||||||
AT&T, Inc. | 43,144 | $ | 1,469,053 | |||||
CenturyLink, Inc. | 26,760 | 323,528 | ||||||
Verizon Communications, Inc. | 24,240 | 1,339,745 | ||||||
|
| |||||||
3,132,326 | ||||||||
|
| |||||||
Entertainment – 0.8% | ||||||||
Activision Blizzard, Inc. | 10,681 | 520,592 | ||||||
Cinemark Holdings, Inc. | 8,944 | 357,045 | ||||||
The Walt Disney Co. | 9,576 | 1,369,464 | ||||||
Viacom, Inc. Class B | 13,367 | 405,688 | ||||||
World Wrestling Entertainment, Inc. Class A | 4,399 | 320,159 | ||||||
|
| |||||||
2,972,948 | ||||||||
|
| |||||||
Media – 1.3% | ||||||||
Cable One, Inc. | 414 | 503,755 | ||||||
CBS Corp. Class B | 8,514 | 438,556 | ||||||
Comcast Corp. Class A | 29,219 | 1,261,384 | ||||||
Nexstar Media Group, Inc. Class A | 4,354 | 443,107 | ||||||
Omnicom Group, Inc. | 5,422 | 434,953 | ||||||
Sirius XM Holdings, Inc. | 65,425 | 409,560 | ||||||
The Interpublic Group of Cos., Inc. | 16,924 | 387,898 | ||||||
The New York Times Co. Class A | 14,104 | 503,231 | ||||||
Tribune Media Co. Class A | 7,955 | 369,669 | ||||||
|
| |||||||
4,752,113 | ||||||||
|
| |||||||
Wireless Telecommunication Services – 0.1% |
| |||||||
Telephone & Data Systems, Inc. | 10,019 | 324,015 | ||||||
|
| |||||||
TOTAL COMMUNICATION SERVICES | 11,181,402 | |||||||
|
| |||||||
CONSUMER DISCRETIONARY – 3.7% | ||||||||
Automobiles – 0.5% | ||||||||
Ford Motor Co. | 87,044 | 829,529 | ||||||
General Motors Co. | 21,663 | 873,886 | ||||||
|
| |||||||
1,703,415 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure – 1.0% | ||||||||
Las Vegas Sands Corp. | 12,084 | 730,357 | ||||||
McDonald’s Corp. | 7,010 | 1,477,147 | ||||||
Starbucks Corp. | 14,709 | 1,392,795 | ||||||
|
| |||||||
3,600,299 | ||||||||
|
| |||||||
Household Durables – 0.1% | ||||||||
Persimmon PLC | 19,257 | 470,476 | ||||||
|
| |||||||
Multiline Retail – 0.4% | ||||||||
Macy’s, Inc. | 24,426 | 555,203 | ||||||
Target Corp. | 10,731 | 927,159 | ||||||
|
| |||||||
1,482,362 | ||||||||
|
| |||||||
Specialty Retail – 1.2% | ||||||||
L Brands, Inc. | 22,769 | 590,855 | ||||||
Lowe’s Cos., Inc. | 10,062 | 1,020,287 | ||||||
The Home Depot, Inc. | 8,612 | 1,840,298 |
Shares | Value | |||||||
The TJX Cos., Inc. | 17,978 | $ | 980,880 | |||||
|
| |||||||
4,432,320 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods – 0.5% |
| |||||||
NIKE, Inc. Class B | 13,374 | 1,150,565 | ||||||
Pandora A/S | 13,915 | 535,907 | ||||||
|
| |||||||
1,686,472 | ||||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY | 13,375,344 | |||||||
|
| |||||||
CONSUMER STAPLES – 13.4% | ||||||||
Beverages – 2.5% | ||||||||
PepsiCo, Inc. | 69,771 | 8,917,431 | ||||||
|
| |||||||
Food Products – 1.1% | ||||||||
The Kraft Heinz Co. | 127,065 | 4,067,351 | ||||||
|
| |||||||
Household Products – 3.0% | ||||||||
The Procter & Gamble Co. | 92,940 | 10,970,638 | ||||||
|
| |||||||
Tobacco – 6.8% | ||||||||
Altria Group, Inc. | 141,041 | 6,638,800 | ||||||
British American Tobacco PLC | 161,287 | 5,790,084 | ||||||
Imperial Brands PLC | 171,639 | 4,372,896 | ||||||
Philip Morris International, Inc. | 95,419 | 7,977,983 | ||||||
|
| |||||||
24,779,763 | ||||||||
|
| |||||||
TOTAL CONSUMER STAPLES | 48,735,183 | |||||||
|
| |||||||
ENERGY – 11.6% | ||||||||
Energy Equipment & Services – 1.6% | ||||||||
Schlumberger Ltd. | 145,699 | 5,823,589 | ||||||
|
| |||||||
Oil, Gas & Consumable Fuels – 10.0% | ||||||||
Chevron Corp. | 74,886 | 9,219,215 | ||||||
Exxon Mobil Corp. | 134,073 | 9,969,668 | ||||||
Kinder Morgan, Inc. | 335,702 | 6,922,175 | ||||||
Occidental Petroleum Corp. | 94,260 | 4,841,194 | ||||||
Targa Resources Corp. | 133,538 | 5,195,964 | ||||||
|
| |||||||
36,148,216 | ||||||||
|
| |||||||
TOTAL ENERGY | 41,971,805 | |||||||
|
| |||||||
FINANCIALS – 20.6% | ||||||||
Banks – 7.7% | ||||||||
Bank of America Corp. | 300,114 | 9,207,497 | ||||||
JPMorgan Chase & Co. | 93,619 | 10,859,804 | ||||||
Wells Fargo & Co. | 160,068 | 7,748,892 | ||||||
|
| |||||||
27,816,193 | ||||||||
|
| |||||||
Insurance – 4.9% | ||||||||
MetLife, Inc. | 123,179 | 6,087,506 | ||||||
Old Republic International Corp. | 252,667 | 5,763,335 | ||||||
Prudential Financial, Inc. | 60,023 | 6,080,930 | ||||||
|
| |||||||
17,931,771 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs) – 8.0% |
| |||||||
AGNC Investment Corp. | 286,978 | 4,918,803 | ||||||
Annaly Capital Management, Inc. | 499,075 | 4,766,166 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 28 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
FINANCIALS – continued | ||||||||
Mortgage Real Estate Investment Trusts (REITs) – continued |
| |||||||
Chimera Investment Corp. | 265,980 | $ | 5,128,095 | |||||
MFA Financial, Inc. | 690,041 | 4,954,494 | ||||||
New Residential Investment Corp. | 300,219 | 4,710,436 | ||||||
Two Harbors Investment Corp. | 346,864 | 4,668,790 | ||||||
|
| |||||||
29,146,784 | ||||||||
|
| |||||||
TOTAL FINANCIALS | 74,894,748 | |||||||
|
| |||||||
HEALTH CARE – 7.3% | ||||||||
Biotechnology – 2.4% | ||||||||
AbbVie, Inc. | 40,224 | 2,679,723 | ||||||
Amgen, Inc. | 17,204 | 3,209,922 | ||||||
Gilead Sciences, Inc. | 42,947 | 2,813,888 | ||||||
|
| |||||||
8,703,533 | ||||||||
|
| |||||||
Health Care Providers & Services – 0.6% |
| |||||||
Cardinal Health, Inc. | 48,992 | 2,240,404 | ||||||
|
| |||||||
Pharmaceuticals – 4.3% | ||||||||
Bristol-Myers Squibb Co. | 59,413 | 2,638,531 | ||||||
Johnson & Johnson | 37,368 | 4,866,061 | ||||||
Merck & Co., Inc. | 50,611 | 4,200,207 | ||||||
Pfizer, Inc. | 97,749 | 3,796,571 | ||||||
|
| |||||||
15,501,370 | ||||||||
|
| |||||||
TOTAL HEALTH CARE | 26,445,307 | |||||||
|
| |||||||
INDUSTRIALS – 3.2% | ||||||||
Aerospace & Defense – 0.7% | ||||||||
Lockheed Martin Corp. | 2,142 | 775,768 | ||||||
The Boeing Co. | 3,103 | 1,058,682 | ||||||
United Technologies Corp. | 6,154 | 822,174 | ||||||
|
| |||||||
2,656,624 | ||||||||
|
| |||||||
Air Freight & Logistics – 0.3% | ||||||||
Royal Mail PLC | 86,813 | 221,387 | ||||||
United Parcel Service, Inc. Class B | 5,963 | 712,400 | ||||||
|
| |||||||
933,787 | ||||||||
|
| |||||||
Airlines – 0.1% | ||||||||
Delta Air Lines, Inc. | 8,968 | 547,407 | ||||||
|
| |||||||
Building Products – 0.2% | ||||||||
Johnson Controls International PLC | 13,170 | 558,935 | ||||||
|
| |||||||
Electrical Equipment – 0.3% | ||||||||
Eaton Corp. PLC | 5,940 | 488,208 | ||||||
Emerson Electric Co. | 7,418 | 481,280 | ||||||
|
| |||||||
969,488 | ||||||||
|
| |||||||
Industrial Conglomerates – 0.6% | ||||||||
3M Co. | 4,079 | 712,683 | ||||||
Honeywell International, Inc. | 5,377 | 927,317 | ||||||
Jardine Matheson Holdings Ltd. | 4,566 | 278,024 | ||||||
Jardine Strategic Holdings Ltd. | 8,000 | 276,000 | ||||||
|
| |||||||
2,194,024 | ||||||||
|
|
Shares | Value | |||||||
Machinery – 0.4% | ||||||||
Caterpillar, Inc. | 4,892 | $ | 644,130 | |||||
Illinois Tool Works, Inc. | 3,577 | 551,681 | ||||||
PACCAR, Inc. | 6,233 | 437,182 | ||||||
|
| |||||||
1,632,993 | ||||||||
|
| |||||||
Professional Services – 0.1% | ||||||||
Randstad N.V. | 6,357 | 320,474 | ||||||
|
| |||||||
Road & Rail – 0.4% | ||||||||
Norfolk Southern Corp. | 3,027 | 578,520 | ||||||
Union Pacific Corp. | 5,154 | 927,463 | ||||||
|
| |||||||
1,505,983 | ||||||||
|
| |||||||
Transportation Infrastructure – 0.1% | ||||||||
Macquarie Infrastructure Corp. | 7,451 | 308,769 | ||||||
|
| |||||||
TOTAL INDUSTRIALS | 11,628,484 | |||||||
|
| |||||||
INFORMATION TECHNOLOGY – 15.7% |
| |||||||
Communications Equipment – 1.2% | ||||||||
Cisco Systems, Inc. | 78,880 | 4,369,952 | ||||||
|
| |||||||
IT Services – 0.9% | ||||||||
International Business Machines Corp. | 21,605 | 3,202,725 | ||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 4.6% |
| |||||||
Applied Materials, Inc. | 54,752 | 2,703,106 | ||||||
Broadcom, Inc. | 10,440 | 3,027,496 | ||||||
Intel Corp. | 79,661 | 4,026,863 | ||||||
QUALCOMM, Inc. | 47,199 | 3,453,079 | ||||||
Texas Instruments, Inc. | 26,584 | 3,323,266 | ||||||
|
| |||||||
16,533,810 | ||||||||
|
| |||||||
Software – 3.7% | ||||||||
Micro Focus International PLC | 77,763 | 1,644,341 | ||||||
Microsoft Corp. | 87,751 | 11,957,829 | ||||||
|
| |||||||
13,602,170 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 5.3% |
| |||||||
Apple, Inc. | 51,937 | 11,064,659 | ||||||
Hewlett Packard Enterprise Co. | 127,763 | 1,835,954 | ||||||
HP, Inc. | 95,662 | 2,012,728 | ||||||
Seagate Technology PLC | 42,783 | 1,981,281 | ||||||
Western Digital Corp. | 42,407 | 2,285,313 | ||||||
|
| |||||||
19,179,935 | ||||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY | 56,888,592 | |||||||
|
| |||||||
REAL ESTATE – 10.4% | ||||||||
Equity Real Estate Investment Trusts (REITs) – 9.8% |
| |||||||
American Tower Corp. | 19,065 | 4,034,535 | ||||||
Crown Castle International Corp. | 24,934 | 3,322,705 | ||||||
Iron Mountain, Inc. | 64,672 | 1,902,003 | ||||||
Kimco Realty Corp. | 138,654 | 2,663,543 | ||||||
Park Hotels & Resorts, Inc. | 77,933 | 2,058,210 | ||||||
Prologis, Inc. | 41,260 | 3,325,969 | ||||||
Public Storage | 12,674 | 3,076,740 | ||||||
Sabra Health Care REIT, Inc. | 112,504 | 2,322,083 |
See accompanying notes which are an integral part of the financial statements.
29 | Annual Report |
Table of Contents
Fidelity® High Dividend ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE – continued | ||||||||
Equity Real Estate Investment Trusts (REITs) – continued |
| |||||||
Senior Housing Properties Trust | 167,429 | $ | 1,372,918 | |||||
Simon Property Group, Inc. | 16,615 | 2,694,953 | ||||||
Spirit Realty Capital, Inc. | 58,093 | 2,563,063 | ||||||
Uniti Group, Inc. | 115,992 | 976,653 | ||||||
Welltower, Inc. | 34,281 | 2,849,437 | ||||||
Weyerhaeuser Co. | 96,344 | 2,448,101 | ||||||
|
| |||||||
35,610,913 | ||||||||
|
| |||||||
Real Estate Management & Development – 0.6% |
| |||||||
Hongkong Land Holdings Ltd. | 315,338 | 1,929,869 | ||||||
|
| |||||||
TOTAL REAL ESTATE | 37,540,782 | |||||||
|
| |||||||
UTILITIES – 10.6% | ||||||||
Electric Utilities – 9.2% | ||||||||
Duke Energy Corp. | 55,191 | 4,786,163 | ||||||
Edison International | 74,542 | 5,556,361 | ||||||
Exelon Corp. | 96,778 | 4,360,817 | ||||||
NextEra Energy, Inc. | 28,809 | 5,968,360 | ||||||
PPL Corp. | 137,327 | 4,068,999 | ||||||
SSE PLC | 259,597 | 3,474,233 | ||||||
The Southern Co. | 96,168 | 5,404,641 | ||||||
|
| |||||||
33,619,574 | ||||||||
|
| |||||||
Multi-Utilities – 1.4% | ||||||||
Dominion Energy, Inc. | 67,251 | 4,996,077 | ||||||
|
| |||||||
TOTAL UTILITIES | 38,615,651 | |||||||
|
| |||||||
TOTAL COMMON STOCKS | 361,277,298 | |||||||
|
|
Money Market Funds – 0.2% | ||||||||
Shares | Value | |||||||
Fidelity Cash Central Fund, 2.43% (a) | 856,259 | $ | 856,430 | |||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 99.8% |
| 362,133,728 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.2% |
| 818,207 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $ | 362,951,935 | ||||||
|
|
Legend
(a) | Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualizedseven-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. |
Futures Contracts | ||||||||||||||||||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||
Purchased | ||||||||||||||||||||
Equity Index Contract | ||||||||||||||||||||
CMEE-mini S&P 500 Index Future Contracts | 11 | September 2019 | 1,640,265 | $(9,392) | $ | (9,392 | ) | |||||||||||||
|
|
The notional amount of futures purchased as a percentage of Net Assets is 0.5%
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 | $ | 9,654 | ||
Fidelity Securities Lending Cash Central Fund | 5,749 | |||
|
| |||
Total | $ | 15,403 | ||
|
|
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received from lending certain types of securities.
See accompanying notes which are an integral part of the financial statements.
Annual Report | 30 |
Table of Contents
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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: | ||||||||||||||||
Communication Services | $ | 11,181,402 | $ | 11,181,402 | $ | — | $ | — | ||||||||
Consumer Discretionary | 13,375,344 | 13,375,344 | — | — | ||||||||||||
Consumer Staples | 48,735,183 | 48,735,183 | — | — | ||||||||||||
Energy | 41,971,805 | 41,971,805 | — | — | ||||||||||||
Financials | 74,894,748 | 74,894,748 | — | — | ||||||||||||
Health Care | 26,445,307 | 26,445,307 | — | — | ||||||||||||
Industrials | 11,628,484 | 11,628,484 | — | — | ||||||||||||
Information Technology | 56,888,592 | 56,888,592 | — | — | ||||||||||||
Real Estate | 37,540,782 | 37,540,782 | — | — | ||||||||||||
Utilities | 38,615,651 | 38,615,651 | — | — | ||||||||||||
Money Market Funds | 856,430 | 856,430 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 362,133,728 | $ | 362,133,728 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Instruments: | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (9,392 | ) | $ | (9,392 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | $ | (9,392 | ) | $ | (9,392 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Derivative Instruments: | $ | (9,392 | ) | $ | (9,392 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
|
Value of Derivative Instruments
The following table is a summary of the Fund’s value of derivative instruments by primary risk exposure as of July 31, 2019. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Value | ||||||||
Primary Risk/ Derivative Type | Asset | Liabilities | ||||||
Equity Risk | ||||||||
Futures Contracts(a) | $ | 0 | $ | (9,392 | ) | |||
|
|
|
| |||||
Total Equity Risk | 0 | (9,392 | ) | |||||
|
|
|
| |||||
Total Value of Derivatives | $ | 0 | $ | (9,392 | ) | |||
|
|
|
|
(a) | Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in distributable earnings. |
See accompanying notes which are an integral part of the financial statements.
31 | Annual Report |
Table of Contents
Fidelity® Low Volatility Factor ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
COMMUNICATION SERVICES – 9.8% |
| |||||||
Diversified Telecommunication Services – 2.6% |
| |||||||
AT&T, Inc. | 97,360 | $ | 3,315,108 | |||||
Verizon Communications, Inc. | 54,232 | 2,997,403 | ||||||
|
| |||||||
6,312,511 | ||||||||
|
| |||||||
Entertainment – 1.3% |
| |||||||
The Walt Disney Co. | 22,247 | 3,181,543 | ||||||
|
| |||||||
Interactive Media & Services – 3.0% |
| |||||||
Alphabet, Inc. Class A (a) | 6,040 | 7,357,928 | ||||||
|
| |||||||
Media – 2.3% |
| |||||||
Cable One, Inc. | 1,254 | 1,525,867 | ||||||
Comcast Corp. Class A | 68,169 | 2,942,856 | ||||||
Omnicom Group, Inc. | 15,747 | 1,263,224 | ||||||
|
| |||||||
5,731,947 | ||||||||
|
| |||||||
Wireless Telecommunication Services – 0.6% |
| |||||||
T-Mobile US, Inc. (a) | 18,142 | 1,446,462 | ||||||
|
| |||||||
TOTAL COMMUNICATION SERVICES |
| 24,030,391 | ||||||
|
| |||||||
CONSUMER DISCRETIONARY – 10.7% |
| |||||||
Diversified Consumer Services – 1.5% |
| |||||||
Bright Horizons Family Solutions, Inc. (a) | 13,010 | 1,978,431 | ||||||
H&R Block, Inc. | 63,206 | 1,750,174 | ||||||
|
| |||||||
3,728,605 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure – 4.0% |
| |||||||
Darden Restaurants, Inc. | 14,864 | 1,806,868 | ||||||
McDonald’s Corp. | 14,554 | 3,066,819 | ||||||
Starbucks Corp. | 31,759 | 3,007,259 | ||||||
Yum! Brands, Inc. | 18,069 | 2,033,124 | ||||||
|
| |||||||
9,914,070 | ||||||||
|
| |||||||
Multiline Retail – 0.9% |
| |||||||
Target Corp. | 24,153 | 2,086,819 | ||||||
|
| |||||||
Specialty Retail – 3.3% |
| |||||||
AutoZone, Inc. (a) | 1,923 | 2,159,606 | ||||||
The Home Depot, Inc. | 17,499 | 3,739,361 | ||||||
The TJX Cos., Inc. | 39,444 | 2,152,065 | ||||||
|
| |||||||
8,051,032 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods – 1.0% |
| |||||||
NIKE, Inc. Class B | 28,423 | 2,445,231 | ||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY |
| 26,225,757 | ||||||
|
| |||||||
CONSUMER STAPLES – 6.9% |
| |||||||
Beverages – 2.1% |
| |||||||
PepsiCo, Inc. | 19,529 | 2,496,001 | ||||||
The Coca-Cola Co. | 50,687 | 2,667,657 | ||||||
|
| |||||||
5,163,658 | ||||||||
|
| |||||||
Food & Staples Retailing – 0.9% |
| |||||||
Walmart, Inc. | 20,768 | 2,292,372 | ||||||
|
| |||||||
Food Products – 1.5% |
| |||||||
Hormel Foods Corp. (b) | 22,627 | 927,481 | ||||||
|
|
Shares | Value | |||||||
McCormick & Co., Inc. (non-vtg.) | 7,985 | $ | 1,265,942 | |||||
The Hershey Co. | 9,279 | 1,407,995 | ||||||
|
| |||||||
3,601,418 | ||||||||
|
| |||||||
Household Products – 2.4% |
| |||||||
Church & Dwight Co., Inc. | 15,408 | 1,162,379 | ||||||
The Clorox Co. | 6,895 | 1,121,127 | ||||||
The Procter & Gamble Co. | 30,219 | 3,567,051 | ||||||
|
| |||||||
5,850,557 | ||||||||
|
| |||||||
TOTAL CONSUMER STAPLES |
| 16,908,005 | ||||||
|
| |||||||
ENERGY – 4.6% |
| |||||||
Oil, Gas & Consumable Fuels – 4.6% |
| |||||||
Cabot Oil & Gas Corp. | 28,377 | 543,703 | ||||||
Chevron Corp. | 22,076 | 2,717,777 | ||||||
Exxon Mobil Corp. | 45,543 | 3,386,578 | ||||||
Kinder Morgan, Inc. | 50,365 | 1,038,526 | ||||||
Marathon Petroleum Corp. | 15,088 | 850,812 | ||||||
ONEOK, Inc. | 13,141 | 920,921 | ||||||
Phillips 66 | 9,973 | 1,022,831 | ||||||
Valero Energy Corp. | 10,507 | 895,722 | ||||||
|
| |||||||
TOTAL ENERGY |
| 11,376,870 | ||||||
|
| |||||||
FINANCIALS – 13.8% |
| |||||||
Banks – 1.0% | ||||||||
US Bancorp | 42,943 | 2,454,192 | ||||||
|
| |||||||
Capital Markets – 1.8% | ||||||||
CME Group, Inc. | 11,481 | 2,232,136 | ||||||
Intercontinental Exchange, Inc. | 24,892 | 2,187,011 | ||||||
|
| |||||||
4,419,147 | ||||||||
|
| |||||||
Diversified Financial Services – 2.0% |
| |||||||
Berkshire Hathaway, Inc. Class B (a) | 24,234 | 4,978,391 | ||||||
|
| |||||||
Insurance – 7.0% |
| |||||||
Aflac, Inc. | 38,706 | 2,037,484 | ||||||
Brown & Brown, Inc. | 58,674 | 2,108,157 | ||||||
Chubb Ltd. | 15,470 | 2,364,434 | ||||||
Erie Indemnity Co. Class A | 10,677 | 2,378,515 | ||||||
Everest Re Group Ltd. | 7,370 | 1,817,737 | ||||||
Marsh & McLennan Cos., Inc. | 21,796 | 2,153,445 | ||||||
The Allstate Corp. | 20,450 | 2,196,330 | ||||||
WR Berkley Corp. | 31,238 | 2,167,605 | ||||||
|
| |||||||
17,223,707 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs) – 2.0% |
| |||||||
Blackstone Mortgage Trust, Inc. Class A (b) | 45,677 | 1,622,447 | ||||||
MFA Financial, Inc. | 214,020 | 1,536,664 | ||||||
Starwood Property Trust, Inc. | 72,048 | 1,673,675 | ||||||
|
| |||||||
4,832,786 | ||||||||
|
| |||||||
TOTAL FINANCIALS |
| 33,908,223 | ||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 32 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE – 13.4% |
| |||||||
Health Care Equipment & Supplies – 4.4% |
| |||||||
Danaher Corp. | 20,242 | $ | 2,844,001 | |||||
Medtronic PLC | 30,310 | 3,089,802 | ||||||
ResMed, Inc. | 18,790 | 2,418,273 | ||||||
Stryker Corp. | 12,058 | 2,529,527 | ||||||
|
| |||||||
10,881,603 | ||||||||
|
| |||||||
Health Care Providers & Services – 3.2% |
| |||||||
Anthem, Inc. | 7,720 | 2,274,389 | ||||||
Cigna Corp. | 11,515 | 1,956,629 | ||||||
UnitedHealth Group, Inc. | 14,296 | 3,559,847 | ||||||
|
| |||||||
7,790,865 | ||||||||
|
| |||||||
Pharmaceuticals – 5.8% |
| |||||||
Eli Lilly & Co. | 22,027 | 2,399,842 | ||||||
Johnson & Johnson | 35,479 | 4,620,075 | ||||||
Merck & Co., Inc. | 45,116 | 3,744,177 | ||||||
Pfizer, Inc. | 88,899 | 3,452,837 | ||||||
|
| |||||||
14,216,931 | ||||||||
|
| |||||||
TOTAL HEALTH CARE |
| 32,889,399 | ||||||
|
| |||||||
INDUSTRIALS – 9.8% |
| |||||||
Aerospace & Defense – 3.5% |
| |||||||
Lockheed Martin Corp. | 6,445 | 2,334,186 | ||||||
Northrop Grumman Corp. | 6,025 | 2,082,059 | ||||||
Raytheon Co. | 10,070 | 1,835,660 | ||||||
United Technologies Corp. | 17,589 | 2,349,891 | ||||||
|
| |||||||
8,601,796 | ||||||||
|
| |||||||
Air Freight & Logistics – 1.1% |
| |||||||
CH Robinson Worldwide, Inc. | 15,700 | 1,314,561 | ||||||
Expeditors International of Washington, Inc. | 19,652 | 1,500,430 | ||||||
|
| |||||||
2,814,991 | ||||||||
|
| |||||||
Commercial Services & Supplies – 1.9% |
| |||||||
Republic Services, Inc. | 18,271 | 1,619,724 | ||||||
Rollins, Inc. | 35,079 | 1,176,199 | ||||||
Waste Management, Inc. | 16,477 | 1,927,809 | ||||||
|
| |||||||
4,723,732 | ||||||||
|
| |||||||
Industrial Conglomerates – 1.9% |
| |||||||
3M Co. | 11,192 | 1,955,466 | ||||||
Honeywell International, Inc. | 15,083 | 2,601,214 | ||||||
|
| |||||||
4,556,680 | ||||||||
|
| |||||||
Machinery – 0.7% |
| |||||||
The Toro Co. | 22,063 | 1,606,628 | ||||||
|
| |||||||
Professional Services – 0.7% |
| |||||||
Verisk Analytics, Inc. | 12,136 | 1,841,274 | ||||||
|
| |||||||
TOTAL INDUSTRIALS |
| 24,145,101 | ||||||
|
| |||||||
INFORMATION TECHNOLOGY – 20.9% |
| |||||||
Electronic Equipment, Instruments & Components – 0.9% |
| |||||||
Amphenol Corp. Class A | 22,945 | 2,141,227 | ||||||
|
|
Shares | Value | |||||||
IT Services – 11.3% |
| |||||||
Accenture PLC Class A | 17,105 | $ | 3,294,081 | |||||
Amdocs Ltd. | 33,277 | 2,129,395 | ||||||
Automatic Data Processing, Inc. | 16,568 | 2,758,903 | ||||||
Broadridge Financial Solutions, Inc. | 18,789 | 2,388,458 | ||||||
Fidelity National Information Services, Inc. | 19,997 | 2,664,600 | ||||||
Fiserv, Inc. (a) | 24,992 | 2,634,907 | ||||||
Mastercard, Inc. Class A | 16,272 | 4,430,378 | ||||||
Paychex, Inc. | 28,066 | 2,330,881 | ||||||
Visa, Inc. Class A | 28,709 | 5,110,202 | ||||||
|
| |||||||
27,741,805 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 1.6% |
| |||||||
Intel Corp. | 77,996 | 3,942,698 | ||||||
|
| |||||||
Software – 2.9% |
| |||||||
CDK Global, Inc. | 37,746 | 1,957,885 | ||||||
Check Point Software Technologies Ltd. (a) | 17,091 | 1,913,337 | ||||||
Oracle Corp. | 57,495 | 3,236,969 | ||||||
|
| |||||||
7,108,191 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 4.2% |
| |||||||
Apple, Inc. | 48,951 | 10,428,521 | ||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY |
| 51,362,442 | ||||||
|
| |||||||
MATERIALS – 3.1% |
| |||||||
Chemicals – 2.4% |
| |||||||
Air Products & Chemicals, Inc. | 4,242 | 968,321 | ||||||
Ecolab, Inc. | 4,658 | 939,658 | ||||||
International Flavors & Fragrances, Inc. | 3,594 | 517,500 | ||||||
Linde PLC | 7,162 | 1,369,947 | ||||||
NewMarket Corp. | 1,049 | 442,269 | ||||||
PPG Industries, Inc. | 5,789 | 679,571 | ||||||
The Sherwin-Williams Co. | 1,612 | 827,021 | ||||||
|
| |||||||
5,744,287 | ||||||||
|
| |||||||
Containers & Packaging – 0.7% |
| |||||||
Amcor PLC (a) | 44,648 | 473,269 | ||||||
Aptargroup, Inc. | 4,487 | 543,017 | ||||||
Ball Corp. | 10,409 | 744,035 | ||||||
|
| |||||||
1,760,321 | ||||||||
|
| |||||||
TOTAL MATERIALS |
| 7,504,608 | ||||||
|
| |||||||
REAL ESTATE – 3.7% |
| |||||||
Equity Real Estate Investment Trusts (REITs) – 3.7% |
| |||||||
American Tower Corp. | 5,391 | 1,140,843 | ||||||
AvalonBay Communities, Inc. | 2,625 | 548,074 | ||||||
Crown Castle International Corp. | 6,048 | 805,956 | ||||||
Equity Lifestyle Properties, Inc. | 3,510 | 436,118 | ||||||
Essex Property Trust, Inc. | 1,600 | 483,552 | ||||||
Extra Space Storage, Inc. | 3,934 | 442,142 | ||||||
Federal Realty Investment Trust | 2,776 | 366,460 |
See accompanying notes which are an integral part of the financial statements.
33 | Annual Report |
Table of Contents
Fidelity® Low Volatility Factor ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE – continued |
| |||||||
Equity Real Estate Investment Trusts (REITs) – continued |
| |||||||
Invitation Homes, Inc. | 15,157 | $ | 416,363 | |||||
Mid-America Apartment Communities, Inc. | 3,769 | 444,139 | ||||||
National Retail Properties, Inc. | 6,858 | 358,262 | ||||||
Public Storage | 2,639 | 640,644 | ||||||
Realty Income Corp. | 6,603 | 456,994 | ||||||
Simon Property Group, Inc. | 4,117 | 667,777 | ||||||
Sun Communities, Inc. | 3,325 | 441,593 | ||||||
UDR, Inc. | 8,801 | 405,374 | ||||||
Ventas, Inc. | 7,338 | 493,774 | ||||||
WP Carey, Inc. | 5,144 | 445,162 | ||||||
|
| |||||||
TOTAL REAL ESTATE |
| 8,993,227 | ||||||
|
| |||||||
UTILITIES – 3.1% |
| |||||||
Electric Utilities – 1.9% |
| |||||||
American Electric Power Co., Inc. | 9,450 | 829,804 | ||||||
Duke Energy Corp. | 10,821 | 938,397 | ||||||
NextEra Energy, Inc. | 6,354 | 1,316,358 | ||||||
The Southern Co. | 17,299 | 972,204 | ||||||
Xcel Energy, Inc. | 12,365 | 737,078 | ||||||
|
| |||||||
4,793,841 | ||||||||
|
| |||||||
Multi-Utilities – 1.2% |
| |||||||
CMS Energy Corp. | 10,261 | 597,395 | ||||||
Consolidated Edison, Inc. | 7,899 | 671,099 | ||||||
Dominion Energy, Inc. | 12,517 | 929,888 | ||||||
DTE Energy Co. | 5,072 | 644,702 | ||||||
|
| |||||||
2,843,084 | ||||||||
|
| |||||||
TOTAL UTILITIES |
| 7,636,925 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 244,980,948 | ||||||
|
| |||||||
Money Market Funds – 0.7% | ||||||||
Shares | Value | |||||||
Fidelity Cash Central Fund, 2.43% (c) | 363,777 | $ | 363,850 | |||||
Fidelity Securities Lending Cash Central Fund, 2.43% (c)(d) | 1,279,423 | 1,279,551 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUNDS |
| 1,643,401 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 100.5% |
| 246,624,349 | ||||||
NET OTHER ASSETS (LIABILITIES) – (0.5%) |
| (1,122,029 | ) | |||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 245,502,320 | |||||
|
|
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 annualizedseven-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. |
Futures Contracts | ||||||||||||||||||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||
Purchased | ||||||||||||||||||||
Equity Index Contract | ||||||||||||||||||||
CMEE-mini S&P 500 Index Future Contracts | 2 | September 2019 | $298,230 | $(570) | $ | (570 | ) | |||||||||||||
|
|
The notional amount of futures purchased as a percentage of Net Assets is 0.1%
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 | $ | 4,555 | ||
Fidelity Securities Lending Cash Central Fund | 3,724 | |||
|
| |||
Total | $ | 8,279 | ||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 34 |
Table of Contents
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received from lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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: | ||||||||||||||||
Communication Services | $ | 24,030,391 | $ | 24,030,391 | $ | — | $ | — | ||||||||
Consumer Discretionary | 26,225,757 | 26,225,757 | — | — | ||||||||||||
Consumer Staples | 16,908,005 | 16,908,005 | — | — | ||||||||||||
Energy | 11,376,870 | 11,376,870 | — | — | ||||||||||||
Financials | 33,908,223 | 33,908,223 | — | — | ||||||||||||
Health Care | 32,889,399 | 32,889,399 | — | — | ||||||||||||
Industrials | 24,145,101 | 24,145,101 | — | — | ||||||||||||
Information Technology | 51,362,442 | 51,362,442 | — | — | ||||||||||||
Materials | 7,504,608 | 7,504,608 | — | — | ||||||||||||
Real Estate | 8,993,227 | 8,993,227 | — | — | ||||||||||||
Utilities | 7,636,925 | 7,636,925 | — | — | ||||||||||||
Money Market Funds | 1,643,401 | 1,643,401 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 246,624,349 | $ | 246,624,349 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Instruments: | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (570 | ) | $ | (570 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | $ | (570 | ) | $ | (570 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Derivative Instruments: | $ | (570 | ) | $ | (570 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
|
Value of Derivative Instruments
The following table is a summary of the Fund’s value of derivative instruments by primary risk exposure as of July 31, 2019. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Value | ||||||||
Primary Risk/ Derivative Type | Asset | Liabilities | ||||||
Equity Risk | ||||||||
Futures Contracts(a) | $ | 0 | $ | (570 | ) | |||
|
|
|
| |||||
Total Equity Risk | 0 | (570 | ) | |||||
|
|
|
| |||||
Total Value of Derivatives | $ | 0 | $ | (570 | ) | |||
|
|
|
|
(a) | Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in distributable earnings. |
See accompanying notes which are an integral part of the financial statements.
35 | Annual Report |
Table of Contents
Fidelity® Momentum Factor ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
COMMUNICATION SERVICES – 9.7% |
| |||||||
Diversified Telecommunication Services – 1.2% |
| |||||||
Verizon Communications, Inc. | 27,572 | $ | 1,523,904 | |||||
|
| |||||||
Entertainment – 1.4% | ||||||||
The Walt Disney Co. | 11,700 | 1,673,217 | ||||||
|
| |||||||
Interactive Media & Services – 3.6% | ||||||||
Alphabet, Inc. Class A (a) | 3,066 | 3,735,001 | ||||||
IAC/InterActiveCorp. (a) | 2,878 | 687,986 | ||||||
|
| |||||||
4,422,987 | ||||||||
|
| |||||||
Media – 2.9% |
| |||||||
Cable One, Inc. | 566 | 688,709 | ||||||
Charter Communications, Inc. Class A (a) | 2,278 | 877,896 | ||||||
Comcast Corp. Class A | 32,581 | 1,406,522 | ||||||
Nexstar Media Group, Inc. Class A | 5,333 | 542,739 | ||||||
|
| |||||||
3,515,866 | ||||||||
|
| |||||||
Wireless Telecommunication Services – 0.6% |
| |||||||
T-Mobile US, Inc. (a) | 9,100 | 725,543 | ||||||
|
| |||||||
TOTAL COMMUNICATION SERVICES |
| 11,861,517 | ||||||
|
| |||||||
CONSUMER DISCRETIONARY – 10.4% |
| |||||||
Hotels, Restaurants & Leisure – 4.0% |
| |||||||
Chipotle Mexican Grill, Inc. (a) | 965 | 767,686 | ||||||
McDonald’s Corp. | 6,382 | 1,344,815 | ||||||
Planet Fitness, Inc., Class A (a) | 8,454 | 664,992 | ||||||
Starbucks Corp. | 13,159 | 1,246,026 | ||||||
Yum! Brands, Inc. | 7,298 | 821,171 | ||||||
|
| |||||||
4,844,690 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail – 3.7% |
| |||||||
Amazon.com, Inc. (a) | 2,073 | 3,869,835 | ||||||
Etsy, Inc. (a) | 9,477 | 635,149 | ||||||
|
| |||||||
4,504,984 | ||||||||
|
| |||||||
Specialty Retail – 1.2% |
| |||||||
AutoZone, Inc. (a) | 693 | 778,267 | ||||||
O’Reilly Automotive, Inc. (a) | 1,932 | 735,628 | ||||||
|
| |||||||
1,513,895 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods – 1.5% |
| |||||||
Lululemon Athletica, Inc. (a) | 3,903 | 745,824 | ||||||
NIKE, Inc. Class B | 12,497 | 1,075,117 | ||||||
|
| |||||||
1,820,941 | ||||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY |
| 12,684,510 | ||||||
|
| |||||||
CONSUMER STAPLES – 6.9% |
| |||||||
Beverages – 2.0% | ||||||||
PepsiCo, Inc. | 8,892 | 1,136,486 | ||||||
The Coca-Cola Co. | 24,017 | 1,264,015 | ||||||
|
| |||||||
2,400,501 | ||||||||
|
| |||||||
Food & Staples Retailing – 1.7% |
| |||||||
Costco Wholesale Corp. | 3,403 | 937,969 |
Shares | Value | |||||||
Walmart, Inc. | 9,724 | $ | 1,073,335 | |||||
|
| |||||||
2,011,304 | ||||||||
|
| |||||||
Food Products – 1.0% |
| |||||||
Mondelez International, Inc. Class A | 13,353 | 714,252 | ||||||
The Hershey Co. | 3,624 | 549,906 | ||||||
|
| |||||||
1,264,158 | ||||||||
|
| |||||||
Household Products – 2.2% |
| |||||||
Church & Dwight Co., Inc. | 6,040 | 455,658 | ||||||
Kimberly-Clark Corp. | 4,381 | 594,283 | ||||||
The Procter & Gamble Co. | 14,138 | 1,668,849 | ||||||
|
| |||||||
2,718,790 | ||||||||
|
| |||||||
TOTAL CONSUMER STAPLES | 8,394,753 | |||||||
|
| |||||||
ENERGY – 4.4% |
| |||||||
Oil, Gas & Consumable Fuels – 4.4% |
| |||||||
Cabot Oil & Gas Corp. | 15,746 | 301,693 | ||||||
Cheniere Energy, Inc. (a) | 6,392 | 416,439 | ||||||
Chevron Corp. | 11,059 | 1,361,473 | ||||||
ConocoPhillips | 10,497 | 620,163 | ||||||
Exxon Mobil Corp. | 22,550 | 1,676,818 | ||||||
Kinder Morgan, Inc. | 26,269 | 541,667 | ||||||
The Williams Cos., Inc. | 17,906 | 441,204 | ||||||
|
| |||||||
TOTAL ENERGY | 5,359,457 | |||||||
|
| |||||||
FINANCIALS – 13.5% |
| |||||||
Banks – 3.4% |
| |||||||
Bank of America Corp. | 59,377 | 1,821,686 | ||||||
JPMorgan Chase & Co. | 19,511 | 2,263,276 | ||||||
|
| |||||||
4,084,962 | ||||||||
|
| |||||||
Capital Markets – 0.8% |
| |||||||
CME Group, Inc. | 5,248 | 1,020,316 | ||||||
|
| |||||||
Consumer Finance – 1.4% | ||||||||
American Express Co. | 8,432 | 1,048,688 | ||||||
Credit Acceptance Corp. (a)(b) | 1,352 | 646,297 | ||||||
|
| |||||||
1,694,985 | ||||||||
|
| |||||||
Diversified Financial Services – 1.9% |
| |||||||
Berkshire Hathaway, Inc. Class B (a) | 11,240 | 2,309,033 | ||||||
|
| |||||||
Insurance – 6.0% | ||||||||
Aflac, Inc. | 16,009 | 842,714 | ||||||
Aon PLC | 4,667 | 883,230 | ||||||
Arthur J Gallagher & Co. | 8,627 | 780,140 | ||||||
Assured Guaranty Ltd. | 14,056 | 614,107 | ||||||
Cincinnati Financial Corp. | 7,359 | 789,841 | ||||||
Erie Indemnity Co. Class A | 3,510 | 781,923 | ||||||
Marsh & McLennan Cos., Inc. | 9,062 | 895,325 | ||||||
The Progressive Corp. | 11,003 | 891,023 | ||||||
Willis Towers Watson PLC | 4,157 | 811,529 | ||||||
|
| |||||||
7,289,832 | ||||||||
|
| |||||||
TOTAL FINANCIALS | 16,399,128 | |||||||
|
|
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 – 13.2% |
| |||||||
Health Care Equipment & Supplies – 2.4% |
| |||||||
Abbott Laboratories | 19,282 | $ | 1,679,462 | |||||
DexCom, Inc. (a) | 8,122 | 1,274,098 | ||||||
|
| |||||||
2,953,560 | ||||||||
|
| |||||||
Health Care Providers & Services – 2.0% |
| |||||||
Anthem, Inc. | 4,663 | 1,373,766 | ||||||
Molina Healthcare, Inc. (a) | 7,618 | 1,011,518 | ||||||
|
| |||||||
2,385,284 | ||||||||
|
| |||||||
Health Care Technology – 1.0% |
| |||||||
Veeva Systems, Inc. Class A (a) | 7,145 | 1,185,356 | ||||||
|
| |||||||
Life Sciences Tools & Services – 1.1% |
| |||||||
Thermo Fisher Scientific, Inc. | 5,079 | 1,410,337 | ||||||
|
| |||||||
Pharmaceuticals – 6.7% | ||||||||
Eli Lilly & Co. | 11,531 | 1,256,303 | ||||||
Horizon Therapeutics PLC (a) | 36,627 | 911,646 | ||||||
Johnson & Johnson | 17,915 | 2,332,891 | ||||||
Merck & Co., Inc. | 22,719 | 1,885,450 | ||||||
Pfizer, Inc. | 46,360 | 1,800,622 | ||||||
|
| |||||||
8,186,912 | ||||||||
|
| |||||||
TOTAL HEALTH CARE | 16,121,449 | |||||||
|
| |||||||
INDUSTRIALS – 9.4% |
| |||||||
Aerospace & Defense – 2.4% |
| |||||||
Mercury Systems, Inc. (a) | 9,411 | 767,185 | ||||||
The Boeing Co. | 3,988 | 1,360,626 | ||||||
TransDigm Group, Inc. (a) | 1,587 | 770,393 | ||||||
|
| |||||||
2,898,204 | ||||||||
|
| |||||||
Airlines – 0.4% |
| |||||||
Spirit Airlines, Inc. (a) | 12,884 | 546,668 | ||||||
|
| |||||||
Commercial Services & Supplies – 1.4% |
| |||||||
Republic Services, Inc. | 8,960 | 794,304 | ||||||
Waste Management, Inc. | 7,888 | 922,896 | ||||||
|
| |||||||
1,717,200 | ||||||||
|
| |||||||
Industrial Conglomerates – 0.7% |
| |||||||
Roper Industries, Inc. | 2,306 | 838,577 | ||||||
|
| |||||||
Machinery – 1.4% | ||||||||
Deere & Co. | 5,382 | 891,528 | ||||||
Ingersoll-Rand PLC | 6,395 | 790,806 | ||||||
|
| |||||||
1,682,334 | ||||||||
|
| |||||||
Professional Services – 0.7% |
| |||||||
Verisk Analytics, Inc. | 5,406 | 820,198 | ||||||
|
| |||||||
Road & Rail – 2.4% |
| |||||||
CSX Corp. | 11,670 | 821,568 | ||||||
Norfolk Southern Corp. | 4,424 | 845,515 | ||||||
Union Pacific Corp. | 6,828 | 1,228,699 | ||||||
|
| |||||||
2,895,782 | ||||||||
|
| |||||||
TOTAL INDUSTRIALS | 11,398,963 | |||||||
|
|
Shares | Value | |||||||
INFORMATION TECHNOLOGY – 22.7% |
| |||||||
Communications Equipment – 1.6% |
| |||||||
Cisco Systems, Inc. | 36,318 | $ | 2,012,017 | |||||
|
| |||||||
IT Services – 7.6% |
| |||||||
Euronet Worldwide, Inc. (a) | 6,716 | 1,047,092 | ||||||
Mastercard, Inc. Class A | 7,753 | 2,110,909 | ||||||
PayPal Holdings, Inc. (a) | 13,760 | 1,519,104 | ||||||
Twilio, Inc. Class A (a) | 7,705 | 1,071,842 | ||||||
VeriSign, Inc. (a) | 5,386 | 1,136,931 | ||||||
Visa, Inc. Class A | 13,448 | 2,393,744 | ||||||
|
| |||||||
9,279,622 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 2.0% |
| |||||||
Broadcom, Inc. | 4,728 | 1,371,073 | ||||||
Xilinx, Inc. | 9,171 | 1,047,420 | ||||||
|
| |||||||
2,418,493 | ||||||||
|
| |||||||
Software – 11.5% |
| |||||||
Atlassian Corp. PLC Class A (a) | 9,308 | 1,304,237 | ||||||
CyberArk Software Ltd. (a) | 7,678 | 1,066,321 | ||||||
Microsoft Corp. | 40,266 | 5,487,048 | ||||||
Paycom Software, Inc. (a) | 4,984 | 1,199,898 | ||||||
Salesforce.com, Inc. (a) | 9,198 | 1,421,091 | ||||||
ServiceNow, Inc. (a) | 4,428 | 1,228,283 | ||||||
The Trade Desk, Inc. Class A (a) | 4,432 | 1,166,990 | ||||||
Workday, Inc. Class A (a) | 5,487 | 1,097,290 | ||||||
|
| |||||||
13,971,158 | ||||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY | 27,681,290 | |||||||
|
| |||||||
MATERIALS – 2.7% |
| |||||||
Chemicals – 2.2% |
| |||||||
Air Products & Chemicals, Inc. | 1,883 | 429,832 | ||||||
Ecolab, Inc. | 2,148 | 433,316 | ||||||
Ingevity Corp. (a) | 2,123 | 209,201 | ||||||
Linde PLC | 3,437 | 657,429 | ||||||
PPG Industries, Inc. | 2,709 | 318,010 | ||||||
The Mosaic Co. | 9,407 | 236,962 | ||||||
The Sherwin-Williams Co. | 785 | 402,736 | ||||||
|
| |||||||
2,687,486 | ||||||||
|
| |||||||
Containers & Packaging – 0.5% |
| |||||||
Ball Corp. | 4,744 | 339,101 | ||||||
Crown Holdings, Inc. (a) | 3,965 | 253,800 | ||||||
|
| |||||||
592,901 | ||||||||
|
| |||||||
TOTAL MATERIALS | 3,280,387 | |||||||
|
| |||||||
REAL ESTATE – 3.8% |
| |||||||
Equity Real Estate Investment Trusts (REITs) – 3.8% |
| |||||||
American Tower Corp. | 2,619 | 554,233 | ||||||
Apartment Investment & Management Co. Class A | 3,645 | 180,573 | ||||||
AvalonBay Communities, Inc. | 1,322 | 276,020 | ||||||
Crown Castle International Corp. | 2,948 | 392,851 |
See accompanying notes which are an integral part of the financial statements.
37 | Annual Report |
Table of Contents
Fidelity® Momentum Factor ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE – continued | ||||||||
Equity Real Estate Investment Trusts (REITs) – continued |
| |||||||
Equity Residential | 3,490 | $ | 275,326 | |||||
Essex Property Trust, Inc. | 794 | 239,963 | ||||||
HCP, Inc. | 6,828 | 218,018 | ||||||
Medical Properties Trust, Inc. | 9,918 | 173,565 | ||||||
National Retail Properties, Inc. | 3,448 | 180,124 | ||||||
Omega Healthcare Investors, Inc. | 4,998 | 181,427 | ||||||
Prologis, Inc. | 4,599 | 370,725 | ||||||
Realty Income Corp. | 3,376 | 233,653 | ||||||
Simon Property Group, Inc. | 2,137 | 346,621 | ||||||
STORE Capital Corp. | 5,219 | 178,542 | ||||||
UDR, Inc. | 4,479 | 206,303 | ||||||
Ventas, Inc. | 3,896 | 262,162 | ||||||
Welltower, Inc. | 3,585 | 297,985 | ||||||
|
| |||||||
TOTAL REAL ESTATE |
| 4,568,091 | ||||||
|
| |||||||
UTILITIES – 3.1% |
| |||||||
Electric Utilities – 1.9% | ||||||||
American Electric Power Co., Inc. | 4,851 | 425,966 | ||||||
Duke Energy Corp. | 5,675 | 492,136 | ||||||
Exelon Corp. | 8,814 | 397,159 | ||||||
FirstEnergy Corp. | 7,700 | 338,569 | ||||||
NextEra Energy, Inc. | 3,229 | 668,952 | ||||||
|
| |||||||
2,322,782 | ||||||||
|
| |||||||
Independent Power and Renewable Electricity Producers – 0.2% |
| |||||||
AES Corp. | 16,496 | 276,968 | ||||||
|
| |||||||
Multi-Utilities – 1.0% | ||||||||
Ameren Corp. | 4,262 | 322,591 | ||||||
Dominion Energy, Inc. | 6,429 | 477,610 | ||||||
WEC Energy Group, Inc. | 4,344 | 371,238 | ||||||
|
| |||||||
1,171,439 | ||||||||
|
| |||||||
TOTAL UTILITIES |
| 3,771,189 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 121,520,734 | ||||||
|
|
Money Market Funds – 0.6% | ||||||||
Shares | Value | |||||||
Fidelity Cash Central Fund, 2.43% (c) | 156,049 | $ | 156,080 | |||||
Fidelity Securities Lending Cash Central Fund, 2.43% (c)(d) | 596,042 | 596,101 | ||||||
|
| |||||||
TOTAL MONEY MARKET FUNDS |
| 752,181 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 100.4% |
| 122,272,915 | ||||||
NET OTHER ASSETS (LIABILITIES) – (0.4%) |
| (536,604 | ) | |||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 121,736,311 | |||||
|
|
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 annualizedseven-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. |
Futures Contracts | ||||||||||||||||||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||
Purchased | ||||||||||||||||||||
Equity Index Contract | ||||||||||||||||||||
CMEE-mini S&P 500 Index Future Contracts | 1 | September 2019 | $149,115 | $(285) | $ | (285 | ) | |||||||||||||
|
|
The notional amount of futures purchased as a percentage of Net Assets is 0.1%
See accompanying notes which are an integral part of the financial statements.
Annual Report | 38 |
Table of Contents
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 | $ | 2,540 | ||
Fidelity Securities Lending Cash Central Fund | 770 | |||
|
| |||
Total | $ | 3,310 | ||
|
|
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received from lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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: | ||||||||||||||||
Communication Services | $ | 11,861,517 | $ | 11,861,517 | $ | — | $ | — | ||||||||
Consumer Discretionary | 12,684,510 | 12,684,510 | — | — | ||||||||||||
Consumer Staples | 8,394,753 | 8,394,753 | — | — | ||||||||||||
Energy | 5,359,457 | 5,359,457 | — | — | ||||||||||||
Financials | 16,399,128 | 16,399,128 | — | — | ||||||||||||
Health Care | 16,121,449 | 16,121,449 | — | — | ||||||||||||
Industrials | 11,398,963 | 11,398,963 | — | — | ||||||||||||
Information Technology | 27,681,290 | 27,681,290 | — | — | ||||||||||||
Materials | 3,280,387 | 3,280,387 | — | — | ||||||||||||
Real Estate | 4,568,091 | 4,568,091 | — | — | ||||||||||||
Utilities | 3,771,189 | 3,771,189 | — | — | ||||||||||||
Money Market Funds | 752,181 | 752,181 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 122,272,915 | $ | 122,272,915 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Instruments: | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (285 | ) | $ | (285 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | $ | (285 | ) | $ | (285 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Derivative Instruments: | $ | (285 | ) | $ | (285 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
|
Value of Derivative Instruments
The following table is a summary of the Fund’s value of derivative instruments by primary risk exposure as of July 31, 2019. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Value | ||||||||
Primary Risk/ Derivative Type | Asset | Liabilities | ||||||
Equity Risk | ||||||||
Futures Contracts(a) | $ | 0 | $ | (285 | ) | |||
|
|
|
| |||||
Total Equity Risk | 0 | (285 | ) | |||||
|
|
|
| |||||
Total Value of Derivatives | $ | 0 | $ | (285 | ) | |||
|
|
|
|
(a) | Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in distributable earnings. |
See accompanying notes which are an integral part of the financial statements.
39 | Annual Report |
Table of Contents
Fidelity® Quality Factor ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.8% | ||||||||
Shares | Value | |||||||
COMMUNICATION SERVICES – 10.0% |
| |||||||
Diversified Telecommunication Services – 1.2% |
| |||||||
Verizon Communications, Inc. | 34,369 | $ | 1,899,575 | |||||
|
| |||||||
Entertainment – 1.7% | ||||||||
Electronic Arts, Inc. (a) | 8,161 | 754,892 | ||||||
The Walt Disney Co. | 13,884 | 1,985,551 | ||||||
|
| |||||||
2,740,443 | ||||||||
|
| |||||||
Interactive Media & Services – 5.1% | ||||||||
Alphabet, Inc. Class A (a) | 3,993 | 4,864,272 | ||||||
Facebook, Inc. Class A (a) | 17,320 | 3,364,064 | ||||||
|
| |||||||
8,228,336 | ||||||||
|
| |||||||
Media – 2.0% | ||||||||
Comcast Corp. Class A | 42,559 | 1,837,272 | ||||||
Liberty Global PLC Class A (a) | 28,874 | 770,070 | ||||||
Sirius XM Holdings, Inc. | 111,817 | 699,974 | ||||||
|
| |||||||
3,307,316 | ||||||||
|
| |||||||
TOTAL COMMUNICATION SERVICES |
| 16,175,670 | ||||||
|
| |||||||
CONSUMER DISCRETIONARY – 10.0% |
| |||||||
Hotels, Restaurants & Leisure – 4.0% |
| |||||||
Las Vegas Sands Corp. | 18,264 | 1,103,876 | ||||||
McDonald’s Corp. | 9,638 | 2,030,919 | ||||||
Starbucks Corp. | 20,919 | 1,980,820 | ||||||
Yum! Brands, Inc. | 11,792 | 1,326,836 | ||||||
|
| |||||||
6,442,451 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail – 1.0% |
| |||||||
Booking Holdings, Inc. (a) | 782 | 1,475,329 | ||||||
Stamps.com, Inc. (a) | 5,131 | 245,005 | ||||||
|
| |||||||
1,720,334 | ||||||||
|
| |||||||
Specialty Retail – 4.0% | ||||||||
O’Reilly Automotive, Inc. (a) | 3,187 | 1,213,482 | ||||||
Ross Stores, Inc. | 12,334 | 1,307,774 | ||||||
The Home Depot, Inc. | 11,682 | 2,496,327 | ||||||
The TJX Cos., Inc. | 25,889 | 1,412,504 | ||||||
|
| |||||||
6,430,087 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods – 1.0% |
| |||||||
NIKE, Inc. Class B | 18,763 | 1,614,181 | ||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY |
| 16,207,053 | ||||||
|
| |||||||
CONSUMER STAPLES – 6.6% | ||||||||
Beverages – 1.6% | ||||||||
Monster Beverage Corp. (a) | 12,703 | 818,962 | ||||||
The Coca-Cola Co. | 34,668 | 1,824,577 | ||||||
|
| |||||||
2,643,539 | ||||||||
|
| |||||||
Household Products – 3.2% | ||||||||
Colgate-Palmolive Co. | 14,210 | 1,019,426 | ||||||
Kimberly-Clark Corp. | 7,334 | 994,857 | ||||||
The Clorox Co. | 4,746 | 771,700 | ||||||
The Procter & Gamble Co. | 20,655 | 2,438,116 | ||||||
|
| |||||||
5,224,099 | ||||||||
|
|
Shares | Value | |||||||
Personal Products – 0.3% | ||||||||
Herbalife Nutrition Ltd. (a) | 10,546 | $ | 432,597 | |||||
|
| |||||||
Tobacco – 1.5% | ||||||||
Altria Group, Inc. | 22,830 | 1,074,608 | ||||||
Philip Morris International, Inc. | 16,582 | 1,386,421 | ||||||
|
| |||||||
2,461,029 | ||||||||
|
| |||||||
TOTAL CONSUMER STAPLES |
| 10,761,264 | ||||||
|
| |||||||
ENERGY – 4.5% |
| |||||||
Energy Equipment & Services – 0.6% |
| |||||||
Core Laboratories N.V. | 5,595 | 280,701 | ||||||
Schlumberger Ltd. | 16,204 | 647,674 | ||||||
|
| |||||||
928,375 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels – 3.9% |
| |||||||
Chevron Corp. | 14,508 | 1,786,080 | ||||||
ConocoPhillips | 12,062 | 712,623 | ||||||
Exxon Mobil Corp. | 30,189 | 2,244,854 | ||||||
Kinder Morgan, Inc. | 30,966 | 638,519 | ||||||
Marathon Petroleum Corp. | 9,355 | 527,528 | ||||||
Occidental Petroleum Corp. | 9,902 | 508,567 | ||||||
|
| |||||||
6,418,171 | ||||||||
|
| |||||||
TOTAL ENERGY |
| 7,346,546 | ||||||
|
| |||||||
FINANCIALS – 14.3% |
| |||||||
Banks – 3.6% | ||||||||
East West Bancorp, Inc. | 25,342 | 1,216,669 | ||||||
SVB Financial Group (a) | 5,592 | 1,297,176 | ||||||
US Bancorp | 32,991 | 1,885,436 | ||||||
Western Alliance Bancorp (a) | 28,399 | 1,404,047 | ||||||
|
| |||||||
5,803,328 | ||||||||
|
| |||||||
Capital Markets – 6.2% | ||||||||
CME Group, Inc. | 8,835 | 1,717,701 | ||||||
FactSet Research Systems, Inc. | 5,856 | 1,623,869 | ||||||
Interactive Brokers Group, Inc. Class A | 24,879 | 1,275,297 | ||||||
Moody’s Corp. | 8,746 | 1,874,617 | ||||||
S&P Global, Inc. | 7,922 | 1,940,494 | ||||||
SEI Investments Co. | 26,705 | 1,591,351 | ||||||
|
| |||||||
10,023,329 | ||||||||
|
| |||||||
Consumer Finance – 2.1% | ||||||||
Discover Financial Services | 20,316 | 1,823,158 | ||||||
Synchrony Financial | 44,791 | 1,607,101 | ||||||
|
| |||||||
3,430,259 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs) – 0.7% |
| |||||||
AGNC Investment Corp. | 71,856 | 1,231,612 | ||||||
|
| |||||||
Thrifts & Mortgage Finance – 1.7% | ||||||||
Essent Group Ltd. (a) | 31,582 | 1,457,825 | ||||||
MGIC Investment Corp. (a) | 100,861 | 1,296,064 | ||||||
|
| |||||||
2,753,889 | ||||||||
|
| |||||||
TOTAL FINANCIALS |
| 23,242,417 | ||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 40 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE – 13.0% | ||||||||
Biotechnology – 4.8% | ||||||||
AbbVie, Inc. | 25,204 | $ | 1,679,090 | |||||
Amgen, Inc. | 10,784 | 2,012,079 | ||||||
Biogen, Inc. (a) | 5,123 | 1,218,352 | ||||||
Gilead Sciences, Inc. | 26,399 | 1,729,663 | ||||||
Regeneron Pharmaceuticals, Inc. (a) | 3,537 | 1,077,936 | ||||||
|
| |||||||
7,717,120 | ||||||||
|
| |||||||
Health Care Equipment & Supplies – 1.2% |
| |||||||
IDEXX Laboratories, Inc. (a) | 6,727 | 1,897,350 | ||||||
|
| |||||||
Life Sciences Tools & Services – 1.0% |
| |||||||
Mettler-Toledo International, Inc. (a) | 2,228 | 1,686,039 | ||||||
|
| |||||||
Pharmaceuticals – 6.0% | ||||||||
Eli Lilly & Co. | 16,541 | 1,802,142 | ||||||
Johnson & Johnson | 25,573 | 3,330,116 | ||||||
Pfizer, Inc. | 64,996 | 2,524,445 | ||||||
Zoetis, Inc. | 18,192 | 2,090,079 | ||||||
|
| |||||||
9,746,782 | ||||||||
|
| |||||||
TOTAL HEALTH CARE |
| 21,047,291 | ||||||
|
| |||||||
INDUSTRIALS – 8.9% |
| |||||||
Aerospace & Defense – 2.0% | ||||||||
Lockheed Martin Corp. | 4,127 | 1,494,675 | ||||||
The Boeing Co. | 5,071 | 1,730,124 | ||||||
|
| |||||||
3,224,799 | ||||||||
|
| |||||||
Commercial Services & Supplies – 0.5% |
| |||||||
Rollins, Inc. | 21,721 | 728,305 | ||||||
|
| |||||||
Electrical Equipment – 0.5% | ||||||||
Rockwell Automation, Inc. | 5,276 | 848,275 | ||||||
|
| |||||||
Industrial Conglomerates – 1.8% | ||||||||
3M Co. | 7,214 | 1,260,430 | ||||||
Honeywell International, Inc. | 9,755 | 1,682,347 | ||||||
|
| |||||||
2,942,777 | ||||||||
|
| |||||||
Machinery – 1.7% | ||||||||
Allison Transmission Holdings, Inc. | 16,657 | 765,389 | ||||||
Graco, Inc. | 18,887 | 908,087 | ||||||
Illinois Tool Works, Inc. | 7,380 | 1,138,218 | ||||||
|
| |||||||
2,811,694 | ||||||||
|
| |||||||
Professional Services – 0.7% | ||||||||
Verisk Analytics, Inc. | 7,577 | 1,149,583 | ||||||
|
| |||||||
Road & Rail – 1.7% | ||||||||
CSX Corp. | 16,483 | 1,160,403 | ||||||
Union Pacific Corp. | 9,144 | 1,645,463 | ||||||
|
| |||||||
2,805,866 | ||||||||
|
| |||||||
TOTAL INDUSTRIALS |
| 14,511,299 | ||||||
|
| |||||||
INFORMATION TECHNOLOGY – 23.0% |
| |||||||
Communications Equipment – 1.5% | ||||||||
Cisco Systems, Inc. | 42,228 | 2,339,431 | ||||||
|
|
Shares | Value | |||||||
IT Services – 5.6% | ||||||||
Accenture PLC Class A | 8,719 | $ | 1,679,105 | |||||
Mastercard, Inc. Class A | 8,950 | 2,436,816 | ||||||
Paychex, Inc. | 12,758 | 1,059,552 | ||||||
VeriSign, Inc. (a) | 5,173 | 1,091,969 | ||||||
Visa, Inc. Class A | 16,217 | 2,886,626 | ||||||
|
| |||||||
9,154,068 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 4.9% |
| |||||||
Broadcom, Inc. | 5,255 | 1,523,897 | ||||||
Intel Corp. | 43,549 | 2,201,402 | ||||||
KLA Corp. | 8,121 | 1,107,055 | ||||||
NVIDIA Corp. | 8,900 | 1,501,608 | ||||||
Texas Instruments, Inc. | 13,263 | 1,658,008 | ||||||
|
| |||||||
7,991,970 | ||||||||
|
| |||||||
Software – 7.0% | ||||||||
Adobe, Inc. (a) | 5,917 | 1,768,354 | ||||||
Check Point Software Technologies Ltd. (a) | 7,621 | 853,171 | ||||||
Microsoft Corp. | 51,259 | 6,985,064 | ||||||
Oracle Corp. | 30,197 | 1,700,091 | ||||||
|
| |||||||
11,306,680 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 4.0% |
| |||||||
Apple, Inc. | 30,641 | 6,527,759 | ||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY |
| 37,319,908 | ||||||
|
| |||||||
MATERIALS – 2.8% |
| |||||||
Chemicals – 2.0% | ||||||||
Air Products & Chemicals, Inc. | 2,891 | 659,928 | ||||||
Celanese Corp. | 3,607 | 404,597 | ||||||
Ecolab, Inc. | 3,151 | 635,651 | ||||||
Linde PLC | 4,856 | 928,856 | ||||||
LyondellBasell Industries N.V. Class A | 4,911 | 411,002 | ||||||
Valvoline, Inc. | 13,136 | 265,216 | ||||||
|
| |||||||
3,305,250 | ||||||||
|
| |||||||
Containers & Packaging – 0.2% | ||||||||
International Paper Co. | 7,886 | 346,274 | ||||||
|
| |||||||
Metals & Mining – 0.6% | ||||||||
Freeport-McMoRan, Inc. | 31,092 | 343,878 | ||||||
Nucor Corp. | 6,153 | 334,600 | ||||||
Steel Dynamics, Inc. | 8,613 | 271,396 | ||||||
|
| |||||||
949,874 | ||||||||
|
| |||||||
TOTAL MATERIALS |
| 4,601,398 | ||||||
|
| |||||||
REAL ESTATE – 3.7% |
| |||||||
Equity Real Estate Investment Trusts (REITs) – 3.7% |
| |||||||
American Tower Corp. | 3,636 | 769,450 | ||||||
AvalonBay Communities, Inc. | 1,801 | 376,031 | ||||||
Digital Realty Trust, Inc. | 2,998 | 342,851 | ||||||
EPR Properties | 3,106 | 231,180 | ||||||
Equity Residential | 4,811 | 379,540 |
See accompanying notes which are an integral part of the financial statements.
41 | Annual Report |
Table of Contents
Fidelity® Quality Factor ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE – continued | ||||||||
Equity Real Estate Investment Trusts (REITs) – continued |
| |||||||
Essex Property Trust, Inc. | 1,129 | $ | 341,206 | |||||
Extra Space Storage, Inc. | 2,710 | 304,577 | ||||||
Federal Realty Investment Trust | 1,962 | 259,004 | ||||||
Gaming and Leisure Properties, Inc. | 6,405 | 241,532 | ||||||
National Retail Properties, Inc. | 4,636 | 242,185 | ||||||
Omega Healthcare Investors, Inc. | 6,001 | 217,836 | ||||||
Prologis, Inc. | 6,477 | 522,111 | ||||||
Public Storage | 1,774 | 430,656 | ||||||
Realty Income Corp. | 4,540 | 314,213 | ||||||
Simon Property Group, Inc. | 2,830 | 459,026 | ||||||
STORE Capital Corp. | 7,146 | 244,465 | ||||||
UDR, Inc. | 6,061 | 279,170 | ||||||
|
| |||||||
TOTAL REAL ESTATE | 5,955,033 | |||||||
|
| |||||||
UTILITIES – 3.0% | ||||||||
Electric Utilities – 1.6% | ||||||||
Exelon Corp. | 13,645 | 614,844 | ||||||
IDACORP, Inc. | 4,261 | 434,878 | ||||||
NextEra Energy, Inc. | 4,898 | 1,014,718 | ||||||
OGE Energy Corp. | 10,603 | 455,399 | ||||||
|
| |||||||
2,519,839 | ||||||||
|
| |||||||
Gas Utilities – 0.2% |
| |||||||
UGI Corp. | 7,795 | 398,246 | ||||||
|
| |||||||
Independent Power and Renewable Electricity Producers – 0.5% |
| |||||||
AES Corp. | 27,472 | 461,255 | ||||||
NRG Energy, Inc. | 11,111 | 379,329 | ||||||
|
| |||||||
840,584 | ||||||||
|
|
Shares | Value | |||||||
CenterPoint Energy, Inc. | 15,406 | $ | 446,928 | |||||
WEC Energy Group, Inc. | 7,112 | 607,792 | ||||||
|
| |||||||
1,054,720 | ||||||||
|
| |||||||
TOTAL UTILITIES | 4,813,389 | |||||||
|
| |||||||
TOTAL COMMON STOCKS | 161,981,268 | |||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
Fidelity Cash Central Fund, 2.43% (b) | 152,894 | 152,925 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 99.9% |
| 162,134,193 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 147,337 | ||||||
|
| |||||||
NET ASSETS – 100.0% | $ | 162,281,530 | ||||||
|
|
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 annualizedseven-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. |
Futures Contracts
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||
Purchased | ||||||||||||||||||||
Equity Index Contract | ||||||||||||||||||||
CMEE-mini S&P 500 Index Future Contracts | 1 | September 2019 | $149,115 | $(287) | $ | (287 | ) | |||||||||||||
|
|
The notional amount of futures purchased as a percentage of Net Assets is 0.1%
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 | $ | 3,044 | ||
Fidelity Securities Lending Cash Central Fund | 11,405 | |||
|
| |||
Total | $ | 14,449 | ||
|
|
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received from lending certain types of securities.
See accompanying notes which are an integral part of the financial statements.
Annual Report | 42 |
Table of Contents
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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: | ||||||||||||||||
Communication Services | $ | 16,175,670 | $ | 16,175,670 | $ | — | $ | — | ||||||||
Consumer Discretionary | 16,207,053 | 16,207,053 | — | — | ||||||||||||
Consumer Staples | 10,761,264 | 10,761,264 | — | — | ||||||||||||
Energy | 7,346,546 | 7,346,546 | — | — | ||||||||||||
Financials | 23,242,417 | 23,242,417 | — | — | ||||||||||||
Health Care | 21,047,291 | 21,047,291 | — | — | ||||||||||||
Industrials | 14,511,299 | 14,511,299 | — | — | ||||||||||||
Information Technology | 37,319,908 | 37,319,908 | — | — | ||||||||||||
Materials | 4,601,398 | 4,601,398 | — | — | ||||||||||||
Real Estate | 5,955,033 | 5,955,033 | — | — | ||||||||||||
Utilities | 4,813,389 | 4,813,389 | — | — | ||||||||||||
Money Market Funds | 152,925 | 152,925 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 162,134,193 | $ | 162,134,193 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Instruments: | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (287 | ) | $ | (287 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | $ | (287 | ) | $ | (287 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Derivative Instruments: | $ | (287 | ) | $ | (287 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
|
Value of Derivative Instruments
The following table is a summary of the Fund’s value of derivative instruments by primary risk exposure as of July 31, 2019. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Value | ||||||||
Primary Risk/ Derivative Type | Asset | Liabilities | ||||||
Equity Risk | ||||||||
Futures Contracts(a) | $ | 0 | $ | (287 | ) | |||
|
| �� |
| |||||
Total Equity Risk | 0 | (287 | ) | |||||
|
|
|
| |||||
Total Value of Derivatives | $ | 0 | $ | (287 | ) | |||
|
|
|
|
(a) | Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in distributable earnings. |
See accompanying notes which are an integral part of the financial statements.
43 | Annual Report |
Table of Contents
Fidelity®Small-Mid Factor ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
COMMUNICATION SERVICES – 4.0% | ||||||||
Diversified Telecommunication Services – 0.6% |
| |||||||
ATN International, Inc. | 114 | $ | 6,415 | |||||
Bandwidth, Inc. Class A (a) | 162 | 12,069 | ||||||
Cogent Communications Holdings, Inc. | 217 | 13,673 | ||||||
Vonage Holdings Corp. (a) | 1,160 | 14,384 | ||||||
|
| |||||||
46,541 | ||||||||
|
| |||||||
Entertainment – 0.6% | ||||||||
Cinemark Holdings, Inc. | 357 | 14,251 | ||||||
Live Nation Entertainment, Inc. (a) | 377 | 27,167 | ||||||
The Marcus Corp. | 191 | 6,683 | ||||||
|
| |||||||
48,101 | ||||||||
|
| |||||||
Interactive Media & Services – 0.4% | ||||||||
Match Group, Inc. | 224 | 16,865 | ||||||
TripAdvisor, Inc. (a) | 305 | 13,466 | ||||||
|
| |||||||
30,331 | ||||||||
|
| |||||||
Media – 2.0% | ||||||||
AMC Networks, Inc. Class A (a) | 190 | 10,142 | ||||||
Cable One, Inc. | 17 | 20,685 | ||||||
DISH Network Corp. Class A (a) | 636 | 21,535 | ||||||
Gannett Co., Inc. | 835 | 8,559 | ||||||
MSG Networks, Inc. Class A (a) | 415 | 7,881 | ||||||
National CineMedia, Inc. | 1,137 | 8,095 | ||||||
Nexstar Media Group, Inc. Class A | 165 | 16,792 | ||||||
Scholastic Corp. | 216 | 7,381 | ||||||
Sinclair Broadcast Group, Inc. Class A | 353 | 17,738 | ||||||
Sirius XM Holdings, Inc. | 3,491 | 21,854 | ||||||
TEGNA, Inc. | 972 | 14,765 | ||||||
|
| |||||||
155,427 | ||||||||
|
| |||||||
Wireless Telecommunication Services – 0.4% |
| |||||||
Shenandoah Telecommunications Co. | 228 | 8,974 | ||||||
Telephone & Data Systems, Inc. | 360 | 11,642 | ||||||
United States Cellular Corp. (a) | 147 | 7,040 | ||||||
|
| |||||||
27,656 | ||||||||
|
| |||||||
TOTAL COMMUNICATION SERVICES | 308,056 | |||||||
|
| |||||||
CONSUMER DISCRETIONARY – 12.6% | ||||||||
Auto Components – 0.6% | ||||||||
Dorman Products, Inc. (a) | 127 | 9,129 | ||||||
Fox Factory Holding Corp. (a) | 177 | 14,174 | ||||||
Gentex Corp. | 776 | 21,278 | ||||||
|
| |||||||
44,581 | ||||||||
|
| |||||||
Automobiles – 0.2% | ||||||||
Harley-Davidson, Inc. | 467 | 16,709 | ||||||
|
| |||||||
Distributors – 0.3% | ||||||||
Pool Corp. | 116 | 21,967 | ||||||
|
| |||||||
Diversified Consumer Services – 1.6% |
| |||||||
Adtalem Global Education, Inc. (a) | 237 | 11,227 | ||||||
American Public Education, Inc. (a) | 250 | 8,255 | ||||||
Bright Horizons Family Solutions, Inc. (a) | 161 | 24,483 |
Shares | Value | |||||||
Graham Holdings Co. Class B | 18 | $ | 13,369 | |||||
Grand Canyon Education, Inc. (a) | 156 | 16,968 | ||||||
H&R Block, Inc. | 641 | 17,749 | ||||||
K12, Inc. (a) | 275 | 8,209 | ||||||
Service Corp. International | 473 | 21,824 | ||||||
|
| |||||||
122,084 | ||||||||
|
| |||||||
Hotels, Restaurants & Leisure – 3.7% | ||||||||
BJ’s Restaurants, Inc. | 170 | 6,749 | ||||||
Bloomin’ Brands, Inc. | 516 | 8,787 | ||||||
Brinker International, Inc. | 229 | 9,126 | ||||||
Choice Hotels International, Inc. | 144 | 12,357 | ||||||
Churchill Downs, Inc. | 135 | 16,153 | ||||||
Cracker Barrel Old Country Store, Inc. | 82 | 14,244 | ||||||
Dave & Buster’s Entertainment, Inc. | 197 | 8,008 | ||||||
Denny’s Corp. (a) | 478 | 10,798 | ||||||
Dine Brands Global, Inc. | 117 | 9,605 | ||||||
Dunkin’ Brands Group, Inc. | 243 | 19,479 | ||||||
Extended Stay America, Inc. | 719 | 12,022 | ||||||
Hyatt Hotels Corp. Class A | 168 | 12,995 | ||||||
Jack in the Box, Inc. | 127 | 9,122 | ||||||
Planet Fitness, Inc., Class A (a) | 270 | 21,238 | ||||||
Ruth’s Hospitality Group, Inc. | 337 | 7,505 | ||||||
Six Flags Entertainment Corp. | 234 | 12,362 | ||||||
Texas Roadhouse, Inc. Class A | 226 | 12,482 | ||||||
The Cheesecake Factory, Inc. | 219 | 9,434 | ||||||
Vail Resorts, Inc. | 107 | 26,378 | ||||||
Wendy’s Co. | 708 | 12,878 | ||||||
Wingstop, Inc. | 151 | 14,434 | ||||||
Wyndham Destinations, Inc. | 329 | 15,483 | ||||||
|
| |||||||
281,639 | ||||||||
|
| |||||||
Household Durables – 1.3% | ||||||||
Garmin Ltd. | 309 | 24,284 | ||||||
Helen of Troy Ltd. (a) | 103 | 15,273 | ||||||
La-Z-Boy, Inc. | 302 | 9,963 | ||||||
Leggett & Platt, Inc. | 393 | 15,708 | ||||||
PulteGroup, Inc. | 695 | 21,900 | ||||||
Toll Brothers, Inc. | 420 | 15,107 | ||||||
|
| |||||||
102,235 | ||||||||
|
| |||||||
Internet & Direct Marketing Retail – 0.1% |
| |||||||
Stamps.com, Inc. (a) | 66 | 3,152 | ||||||
|
| |||||||
Leisure Products – 0.2% | ||||||||
American Outdoor Brands Corp. (a) | 641 | 6,179 | ||||||
Sturm, Ruger & Co., Inc. | 150 | 8,475 | ||||||
|
| |||||||
14,654 | ||||||||
|
| |||||||
Multiline Retail – 0.5% | ||||||||
Dillard’s, Inc. Class A | 131 | 9,534 | ||||||
Macy’s, Inc. | 792 | 18,002 | ||||||
Nordstrom, Inc. | 340 | 11,258 | ||||||
|
| |||||||
38,794 | ||||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 44 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
CONSUMER DISCRETIONARY – continued |
| |||||||
Specialty Retail – 2.8% | ||||||||
Aarons, Inc. Class A | 252 | $ | 15,889 | |||||
Abercrombie & Fitch Co. Class A | 423 | 8,007 | ||||||
American Eagle Outfitters, Inc. | 612 | 10,826 | ||||||
Bed Bath & Beyond, Inc. | 673 | 6,535 | ||||||
Caleres, Inc. | 298 | 5,596 | ||||||
Designer Brands, Inc. Class A | 363 | 6,672 | ||||||
Dick’s Sporting Goods, Inc. | 315 | 11,709 | ||||||
Five Below, Inc. (a) | 152 | 17,854 | ||||||
Foot Locker, Inc. | 322 | 13,221 | ||||||
GameStop Corp. Class A | 750 | 3,015 | ||||||
Gap, Inc. | 633 | 12,344 | ||||||
Monro, Inc. | 150 | 12,631 | ||||||
Murphy USA, Inc. (a) | 142 | 12,547 | ||||||
Rent-A-Center, Inc. (a) | 454 | 12,272 | ||||||
Sally Beauty Holdings, Inc. (a) | 594 | 8,162 | ||||||
Shoe Carnival, Inc. | 195 | 4,949 | ||||||
The Buckle, Inc. | 426 | 8,669 | ||||||
The Cato Corp. Class A | 480 | 6,898 | ||||||
The Children’s Place Retail Stores, Inc. | 96 | 9,376 | ||||||
Urban Outfitters, Inc. (a) | 340 | 8,095 | ||||||
Williams-Sonoma, Inc. | 263 | 17,537 | ||||||
|
| |||||||
212,804 | ||||||||
|
| |||||||
Textiles, Apparel & Luxury Goods – 1.3% |
| |||||||
Capri Holdings Ltd. (a) | 422 | 15,019 | ||||||
Columbia Sportswear Co. | 125 | 13,248 | ||||||
Crocs, Inc. (a) | 345 | 7,883 | ||||||
Deckers Outdoor Corp. (a) | 103 | 16,097 | ||||||
Fossil Group, Inc. (a) | 465 | 5,134 | ||||||
Movado Group, Inc. | 237 | 6,240 | ||||||
Ralph Lauren Corp. | 154 | 16,051 | ||||||
Steven Madden Ltd. | 343 | 11,837 | ||||||
Wolverine World Wide, Inc. | 359 | 9,747 | ||||||
|
| |||||||
101,256 | ||||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY | 959,875 | |||||||
|
| |||||||
CONSUMER STAPLES – 3.1% | ||||||||
Beverages – 0.5% | ||||||||
Brown-Forman Corp. Class B | 418 | 22,911 | ||||||
The Boston Beer Co., Inc. Class A (a) | 39 | 15,300 | ||||||
|
| |||||||
38,211 | ||||||||
|
| |||||||
Food & Staples Retailing – 0.3% | ||||||||
US Foods Holding Corp. (a) | 562 | 19,878 | ||||||
Weis Markets, Inc. | 147 | 5,358 | ||||||
|
| |||||||
25,236 | ||||||||
|
| |||||||
Food Products – 1.5% | ||||||||
Cal-Maine Foods, Inc. | 193 | 7,675 | ||||||
Campbell Soup Co. | 508 | 21,001 | ||||||
Flowers Foods, Inc. | 621 | 14,718 |
Shares | Value | |||||||
Ingredion, Inc. | 185 | $ | 14,299 | |||||
J&J Snack Foods Corp. | 65 | 12,079 | ||||||
Lancaster Colony Corp. | 72 | 11,219 | ||||||
Post Holdings, Inc. (a) | 182 | 19,514 | ||||||
The Simply Good Foods Co. (a) | 387 | 10,538 | ||||||
|
| |||||||
111,043 | ||||||||
|
| |||||||
Household Products – 0.3% | ||||||||
Energizer Holdings, Inc. | 235 | 9,889 | ||||||
WD-40 Co. | 57 | 10,349 | ||||||
|
| |||||||
20,238 | ||||||||
|
| |||||||
Personal Products – 0.4% | ||||||||
Herbalife Nutrition Ltd. (a) | 285 | 11,691 | ||||||
Medifast, Inc. | 67 | 7,481 | ||||||
Natural Health Trends Corp. | 373 | 2,801 | ||||||
Nu Skin Enterprises, Inc. Class A | 186 | 7,436 | ||||||
USANA Health Sciences, Inc. (a) | 75 | 5,104 | ||||||
|
| |||||||
34,513 | ||||||||
|
| |||||||
Tobacco – 0.1% | ||||||||
Universal Corp. | 145 | 8,627 | ||||||
|
| |||||||
TOTAL CONSUMER STAPLES | 237,868 | |||||||
|
| |||||||
ENERGY – 3.0% | ||||||||
Energy Equipment & Services – 0.6% | ||||||||
Cactus, Inc. Class A (a) | 326 | 9,575 | ||||||
Core Laboratories N.V. | 206 | 10,335 | ||||||
FTS International, Inc. (a) | 1,102 | 4,375 | ||||||
Helmerich & Payne, Inc. | 345 | 17,139 | ||||||
Matrix Service Co. (a) | 445 | 8,175 | ||||||
|
| |||||||
49,599 | ||||||||
|
| |||||||
Oil, Gas & Consumable Fuels – 2.4% | ||||||||
Arch Coal, Inc. Class A | 129 | 11,502 | ||||||
CNX Resources Corp. (a) | 1,069 | 8,787 | ||||||
CONSOL Energy, Inc. (a) | 286 | 6,146 | ||||||
Continental Resources, Inc. (a) | 337 | 12,526 | ||||||
CVR Energy, Inc. | 264 | 14,010 | ||||||
Delek US Holdings, Inc. | 396 | 17,060 | ||||||
Equitrans Midstream Corp. | 771 | 12,791 | ||||||
Evolution Petroleum Corp. | 1,197 | 7,302 | ||||||
Magnolia Oil & Gas Corp. Class A (a) | 858 | 9,592 | ||||||
Murphy Oil Corp. | 595 | 14,304 | ||||||
Overseas Shipholding Group, Inc. | ||||||||
Class A (a) | 4,767 | 9,296 | ||||||
PBF Energy, Inc. Class A | 446 | 12,457 | ||||||
Peabody Energy Corp. | 375 | 7,897 | ||||||
Renewable Energy Group, Inc. (a) | 359 | 4,879 | ||||||
REX American Resources Corp. (a) | 126 | 9,400 | ||||||
Southwestern Energy Co. (a) | 2,950 | 6,490 | ||||||
World Fuel Services Corp. | 461 | 17,997 | ||||||
|
| |||||||
182,436 | ||||||||
|
| |||||||
TOTAL ENERGY | 232,035 | |||||||
|
|
See accompanying notes which are an integral part of the financial statements.
45 | Annual Report |
Table of Contents
Fidelity®Small-Mid Factor ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
FINANCIALS – 16.2% | ||||||||
Banks – 4.8% | ||||||||
Associated Banc-Corp | 631 | $ | 13,674 | |||||
Bank of Hawaii Corp. | 167 | 14,237 | ||||||
Bank of Marin Bancorp | 197 | 8,613 | ||||||
Banner Corp. | 190 | 11,259 | ||||||
Cadence BanCorp | 611 | 10,472 | ||||||
Cathay General Bancorp | 337 | 12,543 | ||||||
City Holding Co. | 132 | 10,223 | ||||||
Commerce Bancshares, Inc. | 298 | 18,127 | ||||||
Community Trust Bancorp, Inc. | 213 | 9,008 | ||||||
East West Bancorp, Inc. | 404 | 19,396 | ||||||
First BanCorp | 1,064 | 11,449 | ||||||
First Citizens BancShares, Inc. Class A | 34 | 15,879 | ||||||
First Financial Bankshares, Inc. | 478 | 15,654 | ||||||
First Financial Corp. | 198 | 8,595 | ||||||
First Midwest Bancorp, Inc. | 527 | 11,399 | ||||||
Fulton Financial Corp. | 766 | 13,022 | ||||||
Glacier Bancorp, Inc. | 321 | 13,453 | ||||||
Great Southern Bancorp, Inc. | 163 | 9,773 | ||||||
Independent Bank Corp./MI | 371 | 8,066 | ||||||
NBT Bancorp, Inc. | 281 | 10,875 | ||||||
OFG Bancorp | 452 | 10,229 | ||||||
Old National Bancorp | 726 | 12,785 | ||||||
Popular, Inc. | 312 | 17,959 | ||||||
S&T Bancorp, Inc. | 252 | 9,594 | ||||||
Simmons First National Corp. Class A | 462 | 11,896 | ||||||
Synovus Financial Corp. | 501 | 19,123 | ||||||
Webster Financial Corp. | 298 | 15,198 | ||||||
WesBanco, Inc. | 276 | 10,096 | ||||||
Wintrust Financial Corp. | 203 | 14,523 | ||||||
|
| |||||||
367,120 | ||||||||
|
| |||||||
Capital Markets – 1.8% | ||||||||
FactSet Research Systems, Inc. | 101 | 28,007 | ||||||
Federated Investors, Inc. Class B | 450 | 15,637 | ||||||
Hamilton Lane, Inc. Class A | 233 | 13,677 | ||||||
Interactive Brokers Group, Inc. Class A | 279 | 14,302 | ||||||
MarketAxess Holdings, Inc. | 101 | 34,041 | ||||||
Morningstar, Inc. | 91 | 13,830 | ||||||
Virtu Financial, Inc. Class A | 400 | 8,672 | ||||||
Waddell & Reed Financial, Inc. Class A | 567 | 9,923 | ||||||
|
| |||||||
138,089 | ||||||||
|
| |||||||
Consumer Finance – 0.4% | ||||||||
Credit Acceptance Corp. (a) | 40 | 19,121 | ||||||
Green Dot Corp. Class A (a) | 182 | 9,226 | ||||||
|
| |||||||
28,347 | ||||||||
|
| |||||||
Diversified Financial Services – 0.1% | ||||||||
FGL Holdings | 1,236 | 10,073 | ||||||
|
|
Shares | Value | |||||||
Insurance – 6.1% | ||||||||
American Equity Investment Life Holding Co. | 392 | $ | 10,114 | |||||
American Financial Group, Inc. | 201 | 20,578 | ||||||
American National Insurance Co. | 68 | 8,229 | ||||||
AMERISAFE, Inc. | 158 | 10,280 | ||||||
Argo Group International Holdings Ltd. | 171 | 11,703 | ||||||
Assurant, Inc. | 168 | 19,045 | ||||||
Assured Guaranty Ltd. | 366 | 15,991 | ||||||
Athene Holding Ltd. Class A (a) | 397 | 16,221 | ||||||
Axis Capital Holdings Ltd. | 286 | 18,210 | ||||||
Brown & Brown, Inc. | 685 | 24,612 | ||||||
Employers Holdings, Inc. | 230 | 10,097 | ||||||
Erie Indemnity Co. Class A | 85 | 18,935 | ||||||
FBL Financial Group, Inc. Class A | 121 | 7,587 | ||||||
First American Financial Corp. | 344 | 19,890 | ||||||
Genworth Financial, Inc. Class A (a) | 2,405 | 9,596 | ||||||
HCI Group, Inc. | 168 | 6,735 | ||||||
James River Group Holdings Ltd. | 242 | 11,575 | ||||||
Kemper Corp. | 206 | 18,132 | ||||||
Kinsale Capital Group, Inc. | 161 | 14,467 | ||||||
Mercury General Corp. | 189 | 10,718 | ||||||
National General Holdings Corp. | 414 | 10,238 | ||||||
National Western Life Group, Inc. Class A | 28 | 7,532 | ||||||
Old Republic International Corp. | 866 | 19,753 | ||||||
Primerica, Inc. | 141 | 17,299 | ||||||
RenaissanceRe Holdings Ltd. | 125 | 22,644 | ||||||
RLI Corp. | 180 | 16,223 | ||||||
Safety Insurance Group, Inc. | 114 | 11,247 | ||||||
Selective Insurance Group, Inc. | 225 | 16,920 | ||||||
The Hanover Insurance Group, Inc. | 139 | 18,030 | ||||||
United Fire Group, Inc. | 177 | 9,252 | ||||||
Universal Insurance Holdings, Inc. | 250 | 6,203 | ||||||
WR Berkley Corp. | 400 | 27,756 | ||||||
|
| |||||||
465,812 | ||||||||
|
| |||||||
Mortgage Real Estate Investment Trusts (REITs) – 2.3% |
| |||||||
AG Mortgage Investment Trust, Inc. | 474 | 7,755 | ||||||
Anworth Mortgage Asset Corp. | 1,764 | 6,791 | ||||||
Apollo Commercial Real Estate Finance, Inc. | 600 | 11,292 | ||||||
Arbor Realty Trust, Inc. | 733 | 8,935 | ||||||
Ares Commercial Real Estate Corp. | 556 | 8,435 | ||||||
Blackstone Mortgage Trust, Inc. Class A | 429 | 15,238 | ||||||
Cherry Hill Mortgage Investment Corp. | 411 | 6,366 | ||||||
Chimera Investment Corp. | 710 | 13,689 | ||||||
Granite Point Mortgage Trust, Inc. | 452 | 8,633 | ||||||
KKR Real Estate Finance Trust, Inc. | 407 | 8,152 | ||||||
Ladder Capital Corp. | 585 | 9,846 | ||||||
MFA Financial, Inc. | 1,827 | 13,118 | ||||||
New York Mortgage Trust, Inc. | 1,469 | 8,976 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 46 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
FINANCIALS – continued |
| |||||||
Mortgage Real Estate Investment Trusts (REITs) – continued |
| |||||||
Starwood Property Trust, Inc. | 825 | $ | 19,165 | |||||
TPG RE Finance Trust, Inc. | 432 | 8,532 | ||||||
Two Harbors Investment Corp. | 941 | 12,666 | ||||||
Western Asset Mortgage Capital Corp. | 853 | 8,666 | ||||||
|
| |||||||
176,255 | ||||||||
|
| |||||||
Thrifts & Mortgage Finance – 0.7% | ||||||||
Essent Group Ltd. (a) | 356 | 16,433 | ||||||
Northwest Bancshares, Inc. | 606 | 10,393 | ||||||
OceanFirst Financial Corp. | 391 | 9,541 | ||||||
Oritani Financial Corp. | 502 | 9,086 | ||||||
United Financial Bancorp, Inc. | 586 | 8,403 | ||||||
|
| |||||||
53,856 | ||||||||
|
| |||||||
TOTAL FINANCIALS | 1,239,552 | |||||||
|
| |||||||
HEALTH CARE – 12.2% |
| |||||||
Biotechnology – 1.2% |
| |||||||
BioSpecifics Technologies Corp. (a) | 117 | 6,798 | ||||||
Emergent BioSolutions, Inc. (a) | 192 | 8,475 | ||||||
Genomic Health, Inc. (a) | 129 | 9,413 | ||||||
Ligand Pharmaceuticals, Inc. (a) | 97 | 8,876 | ||||||
Myriad Genetics, Inc. (a) | 382 | 11,131 | ||||||
PDL BioPharma, Inc. (a) | 2,467 | 7,105 | ||||||
REGENXBIO, Inc. (a) | 214 | 9,504 | ||||||
Repligen Corp. (a) | 192 | 18,123 | ||||||
United Therapeutics Corp. (a) | 138 | 10,935 | ||||||
Vanda Pharmaceuticals, Inc. (a) | 353 | 4,395 | ||||||
|
| |||||||
94,755 | ||||||||
|
| |||||||
Health Care Equipment & Supplies – 3.6% |
| |||||||
AngioDynamics, Inc. (a) | 400 | 8,152 | ||||||
AtriCure, Inc. (a) | 292 | 9,367 | ||||||
Atrion Corp. | 12 | 9,234 | ||||||
CONMED Corp. | 147 | 12,840 | ||||||
CryoLife, Inc. (a) | 313 | 9,021 | ||||||
Globus Medical, Inc. Class A (a) | 289 | 13,173 | ||||||
Haemonetics Corp. (a) | 163 | 19,899 | ||||||
Hill-Rom Holdings, Inc. | 189 | 20,155 | ||||||
ICU Medical, Inc. (a) | 58 | 14,758 | ||||||
Integer Holdings Corp. (a) | 139 | 12,167 | ||||||
Integra LifeSciences Holdings Corp. (a) | 274 | 17,369 | ||||||
LivaNova PLC (a) | 163 | 12,559 | ||||||
Masimo Corp. (a) | 143 | 22,573 | ||||||
Meridian Bioscience, Inc. | 505 | 6,035 | ||||||
Merit Medical Systems, Inc. (a) | 220 | 8,681 | ||||||
Mesa Laboratories, Inc. | 33 | 8,305 | ||||||
Natus Medical, Inc. (a) | 269 | 8,358 | ||||||
Neogen Corp. (a) | 207 | 14,780 | ||||||
NuVasive, Inc. (a) | 232 | 15,451 | ||||||
Surmodics, Inc. (a) | 145 | 6,046 |
Shares | Value | |||||||
West Pharmaceutical Services, Inc. | 196 | $ | 26,905 | |||||
|
| |||||||
275,828 | ||||||||
|
| |||||||
Health Care Providers & Services – 3.3% |
| |||||||
Acadia Healthcare Co., Inc. (a) | 412 | 13,159 | ||||||
Addus HomeCare Corp. (a) | 134 | 10,799 | ||||||
Amedisys, Inc. (a) | 105 | 14,478 | ||||||
AMN Healthcare Services, Inc. (a) | 190 | 10,142 | ||||||
BioTelemetry, Inc. (a) | 157 | 7,371 | ||||||
Chemed Corp. | 52 | 21,080 | ||||||
CorVel Corp. (a) | 128 | 10,906 | ||||||
DaVita, Inc. (a) | 350 | 20,948 | ||||||
Encompass Health Corp. | 282 | 18,003 | ||||||
HealthEquity, Inc. (a) | 210 | 17,216 | ||||||
LHC Group, Inc. (a) | 119 | 15,063 | ||||||
MEDNAX, Inc. (a) | 357 | 8,771 | ||||||
Molina Healthcare, Inc. (a) | 164 | 21,776 | ||||||
National HealthCare Corp. | 105 | 9,198 | ||||||
Patterson Cos., Inc. | 459 | 9,088 | ||||||
Premier, Inc. Class A (a) | 272 | 10,540 | ||||||
The Ensign Group, Inc. | 249 | 15,005 | ||||||
Tivity Health, Inc. (a) | 390 | 6,806 | ||||||
US Physical Therapy, Inc. | 89 | 11,488 | ||||||
|
| |||||||
251,837 | ||||||||
|
| |||||||
Health Care Technology – 0.9% |
| |||||||
HealthStream, Inc. (a) | 322 | 9,093 | ||||||
HMS Holdings Corp. (a) | 381 | 13,297 | ||||||
Medidata Solutions, Inc. (a) | 207 | 18,914 | ||||||
NextGen Healthcare, Inc. (a) | 484 | 7,918 | ||||||
Omnicell, Inc. (a) | 178 | 13,387 | ||||||
Vocera Communications, Inc. (a) | 228 | 5,853 | �� | |||||
|
| |||||||
68,462 | ||||||||
|
| |||||||
Life Sciences Tools & Services – 1.8% |
| |||||||
Bio-Rad Laboratories, Inc. Class A (a) | 64 | 20,154 | ||||||
Bio-Techne Corp. | 107 | 22,486 | ||||||
Bruker Corp. | 380 | 18,183 | ||||||
Charles River Laboratories International, Inc. (a) | 143 | 19,239 | ||||||
Codexis, Inc. (a) | 460 | 8,450 | ||||||
Luminex Corp. | 328 | 7,127 | ||||||
Medpace Holdings, Inc. (a) | 156 | 12,287 | ||||||
NeoGenomics, Inc. (a) | 588 | 14,330 | ||||||
PRA Health Sciences, Inc. (a) | 171 | 17,085 | ||||||
|
| |||||||
139,341 | ||||||||
|
| |||||||
Pharmaceuticals – 1.4% |
| |||||||
Catalent, Inc. (a) | 449 | 25,364 | ||||||
Horizon Therapeutics PLC (a) | 626 | 15,581 | ||||||
Jazz Pharmaceuticals PLC (a) | 163 | 22,719 | ||||||
Pacira BioSciences, Inc. (a) | 244 | 10,709 | ||||||
Phibro Animal Health Corp. Class A | 261 | 8,125 | ||||||
Prestige Consumer Healthcare, Inc. (a) | 343 | 11,868 |
See accompanying notes which are an integral part of the financial statements.
47 | Annual Report |
Table of Contents
Fidelity®Small-Mid Factor ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
HEALTH CARE – continued |
| |||||||
Pharmaceuticals – continued |
| |||||||
Supernus Pharmaceuticals, Inc. (a) | 276 | $ | 9,210 | |||||
|
| |||||||
103,576 | ||||||||
|
| |||||||
TOTAL HEALTH CARE | 933,799 | |||||||
|
| |||||||
INDUSTRIALS – 16.2% |
| |||||||
Aerospace & Defense – 1.5% |
| |||||||
Axon Enterprise, Inc. (a) | 221 | 15,519 | ||||||
Curtiss-Wright Corp. | 131 | 16,625 | ||||||
HEICO Corp. Class A | 301 | 31,722 | ||||||
Hexcel Corp. | 240 | 19,622 | ||||||
National Presto Industries, Inc. | 58 | 5,334 | ||||||
Teledyne Technologies, Inc. (a) | 91 | 26,507 | ||||||
|
| |||||||
115,329 | ||||||||
|
| |||||||
Air Freight & Logistics – 0.1% |
| |||||||
Forward Air Corp. | 153 | 9,639 | ||||||
|
| |||||||
Airlines – 0.7% |
| |||||||
Alaska Air Group, Inc. | 313 | 19,832 | ||||||
Hawaiian Holdings, Inc. | 273 | 7,095 | ||||||
JetBlue Airways Corp. (a) | 868 | 16,692 | ||||||
Spirit Airlines, Inc. (a) | 224 | 9,504 | ||||||
|
| |||||||
53,123 | ||||||||
|
| |||||||
Building Products – 2.1% |
| |||||||
AAON, Inc. | 232 | 11,786 | ||||||
Advanced Drainage Systems, Inc. | 307 | 10,109 | ||||||
Allegion PLC | 238 | 24,642 | ||||||
AO Smith Corp. | 381 | 17,316 | ||||||
Apogee Enterprises, Inc. | 223 | 9,045 | ||||||
Armstrong World Industries, Inc. | 177 | 17,295 | ||||||
Continental Building Products, Inc. (a) | 293 | 7,202 | ||||||
CSW Industrials, Inc. | 142 | 10,027 | ||||||
Lennox International, Inc. | 91 | 23,340 | ||||||
Simpson Manufacturing Co., Inc. | 171 | 10,561 | ||||||
Trex Co., Inc. (a) | 191 | 15,614 | ||||||
|
| |||||||
156,937 | ||||||||
|
| |||||||
Commercial Services & Supplies – 2.0% |
| |||||||
Brady Corp. Class A | 220 | 11,381 | ||||||
Deluxe Corp. | 211 | 9,415 | ||||||
Ennis, Inc. | 347 | 7,054 | ||||||
Herman Miller, Inc. | 280 | 12,695 | ||||||
IAA, Inc. (a) | 355 | 16,596 | ||||||
KAR Auction Services, Inc. | 351 | 9,386 | ||||||
McGrath RentCorp | 162 | 11,034 | ||||||
MSA Safety, Inc. | 121 | 12,747 | ||||||
Rollins, Inc. | 424 | 14,217 | ||||||
Steelcase, Inc. Class A | 516 | 8,726 | ||||||
Tetra Tech, Inc. | 207 | 16,394 | ||||||
UniFirst Corp. | 71 | 13,978 |
Shares | Value | |||||||
US Ecology, Inc. | 132 | $ | 8,399 | |||||
|
| |||||||
152,022 | ||||||||
|
| |||||||
Construction & Engineering – 1.0% |
| |||||||
Arcosa, Inc. | 290 | 10,875 | ||||||
Comfort Systems USA, Inc. | 191 | 8,022 | ||||||
EMCOR Group, Inc. | 193 | 16,287 | ||||||
Great Lakes Dredge & Dock Corp. (a) | 958 | 10,280 | ||||||
Jacobs Engineering Group, Inc. | 306 | 25,248 | ||||||
MYR Group, Inc. (a) | 225 | 8,127 | ||||||
|
| |||||||
78,839 | ||||||||
|
| |||||||
Electrical Equipment – 1.4% |
| |||||||
Acuity Brands, Inc. | 120 | 16,106 | ||||||
EnerSys | 146 | 9,944 | ||||||
Generac Holdings, Inc. (a) | 222 | 16,051 | ||||||
Hubbell, Inc. | 151 | 19,612 | ||||||
nVent Electric PLC | 532 | 13,188 | ||||||
Regal-Beloit Corp. | 153 | 12,182 | ||||||
Sensata Technologies Holding PLC (a) | 418 | 19,826 | ||||||
|
| |||||||
106,909 | ||||||||
|
| |||||||
Industrial Conglomerates – 0.4% |
| |||||||
Carlisle Cos., Inc. | 161 | 23,218 | ||||||
Raven Industries, Inc. | 226 | 8,190 | ||||||
|
| |||||||
31,408 | ||||||||
|
| |||||||
Machinery – 3.9% |
| |||||||
Allison Transmission Holdings, Inc. | 333 | 15,301 | ||||||
Barnes Group, Inc. | 184 | 9,575 | ||||||
Crane Co. | 163 | 13,643 | ||||||
Donaldson Co., Inc. | 351 | 17,532 | ||||||
ESCO Technologies, Inc. | 138 | 11,531 | ||||||
Federal Signal Corp. | 376 | 11,712 | ||||||
Graco, Inc. | 432 | 20,771 | ||||||
Hillenbrand, Inc. | 252 | 8,490 | ||||||
ITT, Inc. | 271 | 16,916 | ||||||
Lincoln Electric Holdings, Inc. | 185 | 15,636 | ||||||
Lindsay Corp. | 89 | 8,119 | ||||||
Nordson Corp. | 139 | 19,691 | ||||||
Pentair PLC | 431 | 16,727 | ||||||
RBC Bearings, Inc. (a) | 87 | 14,154 | ||||||
The Gorman-Rupp Co. | 207 | 6,877 | ||||||
The Greenbrier Cos., Inc. | 198 | 5,724 | ||||||
The Toro Co. | 288 | 20,972 | ||||||
Trimas Corp. (a) | 285 | 8,547 | ||||||
WABCO Holdings, Inc. (a) | 145 | 19,200 | ||||||
Wabtec Corp. | 240 | 18,643 | ||||||
Woodward, Inc. | 165 | 18,487 | ||||||
|
| |||||||
298,248 | ||||||||
|
| |||||||
Professional Services – 2.0% |
| |||||||
Barrett Business Services, Inc. | 108 | 9,450 | ||||||
BG Staffing, Inc. | 249 | 4,138 | ||||||
CBIZ, Inc. (a) | 404 | 9,441 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 48 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
INDUSTRIALS – continued |
| |||||||
Professional Services – continued |
| |||||||
Exponent, Inc. | 213 | $ | 14,654 | |||||
Forrester Research, Inc. | 150 | 7,100 | ||||||
FTI Consulting, Inc. (a) | 156 | 16,294 | ||||||
Heidrick & Struggles International, Inc. | 213 | 6,326 | ||||||
Huron Consulting Group, Inc. (a) | 162 | 9,877 | ||||||
ICF International, Inc. | 124 | 10,564 | ||||||
Insperity, Inc. | 123 | 13,081 | ||||||
Kforce, Inc. | 223 | 7,602 | ||||||
Korn Ferry | 231 | 9,074 | ||||||
ManpowerGroup, Inc. | 186 | 16,991 | ||||||
Robert Half International, Inc. | 309 | 18,667 | ||||||
|
| |||||||
153,259 | ||||||||
|
| |||||||
Road & Rail – 0.2% |
| |||||||
Landstar System, Inc. | 131 | 14,577 | ||||||
|
| |||||||
Trading Companies & Distributors – 0.9% |
| |||||||
Applied Industrial Technologies, Inc. | 169 | 10,282 | ||||||
HD Supply Holdings, Inc. (a) | 468 | 18,959 | ||||||
Kaman Corp. | 151 | 9,573 | ||||||
MSC Industrial Direct Co., Inc. Class A | 151 | 10,728 | ||||||
Watsco, Inc. | 98 | 15,937 | ||||||
|
| |||||||
65,479 | ||||||||
|
| |||||||
TOTAL INDUSTRIALS | 1,235,769 | |||||||
|
| |||||||
INFORMATION TECHNOLOGY – 15.3% |
| |||||||
Communications Equipment – 0.6% |
| |||||||
Casa Systems, Inc. (a) | 579 | 3,816 | ||||||
Ciena Corp. (a) | 414 | 18,721 | ||||||
InterDigital, Inc. | 145 | 9,342 | ||||||
Ubiquiti Networks, Inc. | 90 | 11,586 | ||||||
|
| |||||||
43,465 | ||||||||
|
| |||||||
Electronic Equipment, Instruments & Components – 2.6% |
| |||||||
Arrow Electronics, Inc. (a) | 234 | 16,991 | ||||||
Avnet, Inc. | 348 | 15,806 | ||||||
AVX Corp. | 425 | 6,473 | ||||||
Badger Meter, Inc. | 166 | 8,879 | ||||||
Dolby Laboratories, Inc. Class A | 208 | 14,165 | ||||||
Fabrinet (a) | 172 | 9,233 | ||||||
FLIR Systems, Inc. | 372 | 18,473 | ||||||
Insight Enterprises, Inc. (a) | 197 | 10,839 | ||||||
Jabil, Inc. | 481 | 14,853 | ||||||
Littelfuse, Inc. | 79 | 13,348 | ||||||
National Instruments Corp. | 340 | 14,198 | ||||||
PC Connection, Inc. | 207 | 6,771 | ||||||
Plexus Corp. (a) | 166 | 9,912 | ||||||
Sanmina Corp. (a) | 318 | 10,096 | ||||||
ScanSource, Inc. (a) | 205 | 6,960 | ||||||
Tech Data Corp. (a) | 131 | 13,276 |
Shares | Value | |||||||
Vishay Intertechnology, Inc. | 551 | $ | 9,367 | |||||
|
| |||||||
199,640 | ||||||||
|
| |||||||
IT Services – 5.1% |
| |||||||
Alliance Data Systems Corp. | 117 | 18,360 | ||||||
Amdocs Ltd. | 361 | 23,100 | ||||||
Black Knight, Inc. (a) | 377 | 23,872 | ||||||
Booz Allen Hamilton Holding Corp. | 376 | 25,850 | ||||||
CACI International, Inc. Class A (a) | 81 | 17,427 | ||||||
Cardtronics PLC Class A (a) | 292 | 8,316 | ||||||
Cass Information Systems, Inc. | 145 | 7,382 | ||||||
CoreLogic, Inc. (a) | 313 | 14,263 | ||||||
EPAM Systems, Inc. (a) | 134 | 25,968 | ||||||
Euronet Worldwide, Inc. (a) | 145 | 22,607 | ||||||
EVERTEC, Inc. | 330 | 10,567 | ||||||
ExlService Holdings, Inc. (a) | 168 | 11,557 | ||||||
Genpact Ltd. | 454 | 18,015 | ||||||
GreenSky, Inc. Class A (a) | 624 | 7,132 | ||||||
ManTech International Corp. Class A | 156 | 10,730 | ||||||
MAXIMUS, Inc. | 202 | 14,849 | ||||||
NIC, Inc. | 489 | 8,870 | ||||||
Perficient, Inc. (a) | 301 | 10,285 | ||||||
Perspecta, Inc. | 558 | 13,018 | ||||||
Sabre Corp. | 757 | 17,797 | ||||||
Science Applications International Corp. | 182 | 15,537 | ||||||
Sykes Enterprises, Inc. (a) | 295 | 8,346 | ||||||
The Hackett Group, Inc. | 389 | 6,387 | ||||||
The Western Union Co. | 1,124 | 23,604 | ||||||
WEX, Inc. (a) | 114 | 24,860 | ||||||
|
| |||||||
388,699 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 1.3% |
| |||||||
Cabot Microelectronics Corp. | 111 | 13,503 | ||||||
Cirrus Logic, Inc. (a) | 270 | 13,243 | ||||||
Diodes, Inc. (a) | 252 | 10,735 | ||||||
Kulicke & Soffa Industries, Inc. | 395 | 8,939 | ||||||
Monolithic Power Systems, Inc. | 117 | 17,335 | ||||||
NVE Corp. | 72 | 4,840 | ||||||
Photronics, Inc. (a) | 689 | 6,635 | ||||||
Semtech Corp. (a) | 244 | 12,900 | ||||||
SolarEdge Technologies, Inc. (a) | 216 | 14,090 | ||||||
|
| |||||||
102,220 | ||||||||
|
| |||||||
Software – 5.2% |
| |||||||
ACI Worldwide, Inc. (a) | 410 | 13,760 | ||||||
Alarm.com Holdings, Inc. (a) | 158 | 7,886 | ||||||
Alteryx, Inc. Class A (a) | 139 | 16,338 | ||||||
Aspen Technology, Inc. (a) | 190 | 25,055 | ||||||
Blackbaud, Inc. | 172 | 15,652 | ||||||
Bottomline Technologies de, Inc. (a) | 183 | 7,703 | ||||||
CDK Global, Inc. | 354 | 18,362 | ||||||
Cision Ltd. (a) | 610 | 6,338 | ||||||
Cornerstone OnDemand, Inc. (a) | 201 | 11,899 | ||||||
Fair Isaac Corp. (a) | 79 | 27,446 |
See accompanying notes which are an integral part of the financial statements.
49 | Annual Report |
Table of Contents
Fidelity® Small-Mid Factor ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
INFORMATION TECHNOLOGY – continued |
| |||||||
Software – continued | ||||||||
Five9, Inc. (a) | 225 | $ | 11,108 | |||||
Guidewire Software, Inc. (a) | 215 | 21,947 | ||||||
j2 Global, Inc. | 165 | 14,700 | ||||||
Manhattan Associates, Inc. (a) | 242 | 20,568 | ||||||
MicroStrategy, Inc. Class A (a) | 65 | 8,888 | ||||||
New Relic, Inc. (a) | 141 | 13,137 | ||||||
Nuance Communications, Inc. (a) | 889 | 14,793 | ||||||
Paycom Software, Inc. (a) | 127 | 30,575 | ||||||
Progress Software Corp. | 246 | 10,649 | ||||||
Qualys, Inc. (a) | 130 | 11,253 | ||||||
RingCentral, Inc. Class A (a) | 188 | 26,692 | ||||||
SPS Commerce, Inc. (a) | 100 | 11,183 | ||||||
TiVo Corp. | 773 | 5,859 | ||||||
Tyler Technologies, Inc. (a) | 102 | 23,802 | ||||||
Verint Systems, Inc. (a) | 241 | 13,947 | ||||||
Zix Corp. (a) | 949 | 8,645 | ||||||
|
| |||||||
398,185 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 0.5% |
| |||||||
Dell Technologies, Inc. Class C (a) | 391 | 22,576 | ||||||
Xerox Corp. | 584 | 18,747 | ||||||
|
| |||||||
41,323 | ||||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY | 1,173,532 | |||||||
|
| |||||||
MATERIALS – 5.1% | ||||||||
Chemicals – 2.3% | ||||||||
Balchem Corp. | 129 | 13,240 | ||||||
Chase Corp. | 72 | 7,458 | ||||||
FutureFuel Corp. | 377 | 4,392 | ||||||
Hawkins, Inc. | 164 | 7,162 | ||||||
Huntsman Corp. | 660 | 13,563 | ||||||
Ingevity Corp. (a) | 139 | 13,697 | ||||||
Innospec, Inc. | 130 | 12,139 | ||||||
NewMarket Corp. | 31 | 13,070 | ||||||
Quaker Chemical Corp. | 53 | 9,932 | ||||||
RPM International, Inc. | 340 | 23,062 | ||||||
Sensient Technologies Corp. | 171 | 11,657 | ||||||
Stepan Co. | 104 | 10,312 | ||||||
Valvoline, Inc. | 609 | 12,296 | ||||||
Westlake Chemical Corp. | 147 | 9,933 | ||||||
WR Grace & Co. | 203 | 13,765 | ||||||
|
| |||||||
175,678 | ||||||||
|
| |||||||
Construction Materials – 0.2% | ||||||||
Eagle Materials, Inc. | 169 | 13,990 | ||||||
|
| |||||||
Containers & Packaging – 0.9% | ||||||||
Amcor PLC (a) | 1,446 | 15,328 | ||||||
Aptargroup, Inc. | 173 | 20,936 | ||||||
Berry Plastics Group, Inc. (a) | 356 | 16,038 |
Shares | Value | |||||||
Sonoco Products Co. | 283 | $ | 16,988 | |||||
|
| |||||||
69,290 | ||||||||
|
| |||||||
Metals & Mining – 1.3% | ||||||||
Alcoa Corp. (a) | 532 | 11,964 | ||||||
Cleveland-Cliffs, Inc. | 1,095 | 11,673 | ||||||
Reliance Steel & Aluminum Co. | 198 | 19,790 | ||||||
Royal Gold, Inc. | 186 | 21,288 | ||||||
Steel Dynamics, Inc. | 574 | 18,087 | ||||||
Warrior Met Coal, Inc. | 289 | 7,150 | ||||||
Worthington Industries, Inc. | 233 | 9,371 | ||||||
|
| |||||||
99,323 | ||||||||
|
| |||||||
Paper & Forest Products – 0.4% | ||||||||
Louisiana-Pacific Corp. | 500 | 13,070 | ||||||
Mercer International, Inc. | 482 | 6,280 | ||||||
Resolute Forest Products, Inc. | 945 | 5,765 | ||||||
Verso Corp. Class A (a) | 306 | 4,951 | ||||||
|
| |||||||
30,066 | ||||||||
|
| |||||||
TOTAL MATERIALS | 388,347 | |||||||
|
| |||||||
REAL ESTATE – 9.4% | ||||||||
Equity Real Estate Investment Trusts (REITs) – 9.3% |
| |||||||
Acadia Realty Trust | 329 | 9,235 | ||||||
Agree Realty Corp. | 139 | 9,292 | ||||||
American Assets Trust, Inc. | 187 | 8,677 | ||||||
American Campus Communities, Inc. | 355 | 16,596 | ||||||
American Homes 4 Rent Class A | 689 | 16,681 | ||||||
Apartment Investment & Management Co. Class A | 368 | 18,231 | ||||||
Apple Hospitality REIT, Inc. | 702 | 11,028 | ||||||
Brixmor Property Group, Inc. | 831 | 15,772 | ||||||
CareTrust REIT, Inc. | 382 | 8,874 | ||||||
Chesapeake Lodging Trust | 292 | 8,021 | ||||||
CoreCivic, Inc. | 471 | 7,993 | ||||||
CoreSite Realty Corp. | 119 | 12,472 | ||||||
CubeSmart | 502 | 17,043 | ||||||
Douglas Emmett, Inc. | 425 | 17,348 | ||||||
EastGroup Properties, Inc. | 114 | 13,735 | ||||||
EPR Properties | 204 | 15,184 | ||||||
Equity Commonwealth | 375 | 12,593 | ||||||
First Industrial Realty Trust, Inc. | 382 | 14,589 | ||||||
Four Corners Property Trust, Inc. | 302 | 8,136 | ||||||
Gaming and Leisure Properties, Inc. | 497 | 18,742 | ||||||
Getty Realty Corp. | 224 | 6,716 | ||||||
Healthcare Realty Trust, Inc. | 384 | 12,280 | ||||||
Healthcare Trust of America, Inc. Class A | 553 | 14,892 | ||||||
Highwoods Properties, Inc. | 304 | 13,780 | ||||||
Hospitality Properties Trust | 483 | 11,935 | ||||||
Industrial Logistics Properties Trust | 359 | 7,675 | ||||||
Kilroy Realty Corp. | 253 | 20,103 | ||||||
Kimco Realty Corp. | 1,057 | 20,305 |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 50 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
REAL ESTATE – continued | ||||||||
Equity Real Estate Investment Trusts (REITs) – continued |
| |||||||
Lamar Advertising Co. Class A | 222 | $ | 17,964 | |||||
Liberty Property Trust | 373 | 19,508 | ||||||
Life Storage, Inc. | 135 | 13,161 | ||||||
LTC Properties, Inc. | 179 | 8,250 | ||||||
Medical Properties Trust, Inc. | 939 | 16,433 | ||||||
National Health Investors, Inc. | 138 | 10,954 | ||||||
National Retail Properties, Inc. | 384 | 20,060 | ||||||
National Storage Affiliates Trust | 281 | 8,511 | ||||||
Omega Healthcare Investors, Inc. | 487 | 17,678 | ||||||
Park Hotels & Resorts, Inc. | 533 | 14,077 | ||||||
Physicians Realty Trust | 615 | 10,584 | ||||||
Preferred Apartment Communities, Inc. Class A | 404 | 5,854 | ||||||
PS Business Parks, Inc. | 71 | 12,425 | ||||||
Retail Opportunity Investments Corp. | 504 | 9,143 | ||||||
Retail Properties of America, Inc. Class A | 796 | 9,679 | ||||||
Rexford Industrial Realty, Inc. | 320 | 13,248 | ||||||
RLJ Lodging Trust | 588 | 10,161 | ||||||
RPT Realty | 547 | 6,701 | ||||||
Sabra Health Care REIT, Inc. | 570 | 11,765 | ||||||
Senior Housing Properties Trust | 798 | 6,544 | ||||||
Spirit Realty Capital, Inc. | 284 | 12,530 | ||||||
STORE Capital Corp. | 499 | 17,071 | ||||||
Sunstone Hotel Investors, Inc. | 770 | 10,172 | ||||||
Tanger Factory Outlet Centers, Inc. | 397 | 6,304 | ||||||
Terreno Realty Corp. | 232 | 11,336 | ||||||
VEREIT, Inc. | 2,352 | 21,450 | ||||||
Weingarten Realty Investors | 397 | 11,080 | ||||||
Xenia Hotels & Resorts, Inc. | 476 | 10,201 | ||||||
|
| |||||||
710,772 | ||||||||
|
| |||||||
Real Estate Management & Development – 0.1% |
| |||||||
The RMR Group, Inc. Class A | 90 | 4,431 | ||||||
|
| |||||||
TOTAL REAL ESTATE | 715,203 | |||||||
|
| |||||||
UTILITIES – 2.8% | ||||||||
Electric Utilities – 1.7% | ||||||||
ALLETE, Inc. | 165 | 14,347 |
Shares | Value | |||||||
El Paso Electric Co. | 180 | $ | 11,927 | |||||
Hawaiian Electric Industries, Inc. | 344 | 15,411 | ||||||
IDACORP, Inc. | 146 | 14,901 | ||||||
MGE Energy, Inc. | 149 | 11,048 | ||||||
OGE Energy Corp. | 492 | 21,132 | ||||||
Otter Tail Corp. | 187 | 9,982 | ||||||
PNM Resources, Inc. | 275 | 13,659 | ||||||
Portland General Electric Co. | 273 | 14,974 | ||||||
|
| |||||||
127,381 | ||||||||
|
| |||||||
Gas Utilities – 0.5% | ||||||||
New Jersey Resources Corp. | 273 | 13,614 | ||||||
ONE Gas, Inc. | 162 | 14,771 | ||||||
Spire, Inc. | 160 | 13,186 | ||||||
|
| |||||||
41,571 | ||||||||
|
| |||||||
Independent Power and Renewable Electricity Producers – 0.1% |
| |||||||
Clearway Energy, Inc. Class C | 558 | 10,055 | ||||||
|
| |||||||
Multi-Utilities – 0.3% | ||||||||
Black Hills Corp. | 178 | 14,089 | ||||||
NorthWestern Corp. | 177 | 12,376 | ||||||
|
| |||||||
26,465 | ||||||||
|
| |||||||
Water Utilities – 0.2% | ||||||||
American States Water Co. | 149 | 11,543 | ||||||
|
| |||||||
TOTAL UTILITIES | 217,015 | |||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 7,641,051 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 99.9%(Cost $7,454,356) |
| 7,641,051 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.1% |
| 9,179 | ||||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 7,650,230 | |||||
|
|
Legend
(a) | Non-income producing. |
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 | $ | 13 | ||
|
|
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable.
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.
51 | Annual Report |
Table of Contents
Fidelity® Value Factor ETF
Schedule of Investments July 31, 2019
Showing Percentage of Net Assets
Common Stocks – 99.9% | ||||||||
Shares | Value | |||||||
COMMUNICATION SERVICES – 10.3% | ||||||||
Diversified Telecommunication Services – 2.4% |
| |||||||
AT&T, Inc. | 49,364 | $ | 1,680,844 | |||||
Verizon Communications, Inc. | 27,624 | 1,526,779 | ||||||
|
| |||||||
3,207,623 | ||||||||
|
| |||||||
Entertainment – 1.5% | ||||||||
The Walt Disney Co. | 10,953 | 1,566,388 | ||||||
Viacom, Inc. Class B | 15,279 | 463,718 | ||||||
|
| |||||||
2,030,106 | ||||||||
|
| |||||||
Interactive Media & Services – 5.0% | ||||||||
Alphabet, Inc. Class A (a) | 3,339 | 4,067,570 | ||||||
Facebook, Inc. Class A (a) | 14,257 | 2,769,137 | ||||||
|
| |||||||
6,836,707 | ||||||||
|
| |||||||
Media – 1.4% | ||||||||
Comcast Corp. Class A | 33,591 | 1,450,123 | ||||||
Discovery, Inc. Class A (a) | 16,441 | 498,327 | ||||||
|
| |||||||
1,948,450 | ||||||||
|
| |||||||
TOTAL COMMUNICATION SERVICES | 14,022,886 | |||||||
|
| |||||||
CONSUMER DISCRETIONARY – 10.2% | ||||||||
Automobiles – 0.9% | ||||||||
Ford Motor Co. | 129,633 | 1,235,403 | ||||||
|
| |||||||
Diversified Consumer Services – 0.9% |
| |||||||
H&R Block, Inc. | 42,215 | 1,168,933 | ||||||
|
| |||||||
Hotels, Restaurants & Leisure – 2.9% | ||||||||
Norwegian Cruise Line Holdings Ltd. (a) | 19,937 | 985,685 | ||||||
Royal Caribbean Cruises Ltd. | 8,913 | 1,036,939 | ||||||
Starbucks Corp. | 20,444 | 1,935,842 | ||||||
|
| |||||||
3,958,466 | ||||||||
|
| |||||||
Household Durables – 1.6% | ||||||||
Lennar Corp. Class A | 21,946 | 1,043,971 | ||||||
PulteGroup, Inc. | 36,221 | 1,141,324 | ||||||
|
| |||||||
2,185,295 | ||||||||
|
| |||||||
Multiline Retail – 2.2% | ||||||||
Kohl’s Corp. | 14,906 | 802,837 | ||||||
Macy’s, Inc. | 38,342 | 871,514 | ||||||
Target Corp. | 15,839 | 1,368,489 | ||||||
|
| |||||||
3,042,840 | ||||||||
|
| |||||||
Specialty Retail – 1.7% | ||||||||
The Home Depot, Inc. | 10,935 | 2,336,700 | ||||||
|
| |||||||
TOTAL CONSUMER DISCRETIONARY | 13,927,637 | |||||||
|
| |||||||
CONSUMER STAPLES – 6.3% | ||||||||
Food & Staples Retailing – 2.1% | ||||||||
The Kroger Co. | 27,263 | 576,885 | ||||||
Walgreens Boots Alliance, Inc. | 13,120 | 714,909 | ||||||
Walmart, Inc. | 13,850 | 1,528,763 | ||||||
|
| |||||||
2,820,557 | ||||||||
|
|
Shares | Value | |||||||
Food Products – 1.6% | ||||||||
Archer-Daniels-Midland Co. | 17,511 | $ | 719,352 | |||||
Ingredion, Inc. | 7,030 | 543,348 | ||||||
Tyson Foods, Inc. Class A | 12,144 | 965,448 | ||||||
|
| |||||||
2,228,148 | ||||||||
|
| |||||||
Household Products – 0.8% | ||||||||
Kimberly-Clark Corp. | 7,662 | 1,039,350 | ||||||
|
| |||||||
Tobacco – 1.8% | ||||||||
Altria Group, Inc. | 22,795 | 1,072,961 | ||||||
Philip Morris International, Inc. | 16,287 | 1,361,756 | ||||||
|
| |||||||
2,434,717 | ||||||||
|
| |||||||
TOTAL CONSUMER STAPLES | 8,522,772 | |||||||
|
| |||||||
ENERGY – 4.7% | ||||||||
Oil, Gas & Consumable Fuels – 4.7% | ||||||||
Chevron Corp. | 12,887 | 1,586,519 | ||||||
ConocoPhillips | 10,963 | 647,694 | ||||||
Exxon Mobil Corp. | 26,607 | 1,978,497 | ||||||
HollyFrontier Corp. | 6,964 | 346,598 | ||||||
Marathon Petroleum Corp. | 8,647 | 487,604 | ||||||
PBF Energy, Inc. Class A | 10,095 | 281,953 | ||||||
Phillips 66 | 5,777 | 592,489 | ||||||
Valero Energy Corp. | 6,021 | 513,290 | ||||||
|
| |||||||
TOTAL ENERGY | 6,434,644 | |||||||
|
| |||||||
FINANCIALS – 14.0% | ||||||||
Banks – 6.4% | ||||||||
Bank of America Corp. | 67,447 | 2,069,274 | ||||||
Citigroup, Inc. | 21,814 | 1,552,284 | ||||||
Citizens Financial Group, Inc. | 20,942 | 780,299 | ||||||
JPMorgan Chase & Co. | 22,749 | 2,638,884 | ||||||
Wells Fargo & Co. | 33,977 | 1,644,827 | ||||||
|
| |||||||
8,685,568 | ||||||||
|
| |||||||
Capital Markets – 0.7% | ||||||||
Morgan Stanley | 21,422 | 954,564 | ||||||
|
| |||||||
Consumer Finance – 2.0% | ||||||||
Capital One Financial Corp. | 10,244 | 946,751 | ||||||
Discover Financial Services | 11,039 | 990,640 | ||||||
Synchrony Financial | 24,247 | 869,982 | ||||||
|
| |||||||
2,807,373 | ||||||||
|
| |||||||
Diversified Financial Services – 2.5% | ||||||||
Berkshire Hathaway, Inc. Class B (a) | 12,945 | 2,659,291 | ||||||
Voya Financial, Inc. | 14,371 | 807,219 | ||||||
|
| |||||||
3,466,510 | ||||||||
|
| |||||||
Insurance – 1.8% | ||||||||
Athene Holding Ltd. Class A (a) | 15,352 | 627,283 | ||||||
MetLife, Inc. | 18,700 | 924,154 | ||||||
Prudential Financial, Inc. | 8,917 | 903,381 | ||||||
|
| |||||||
2,454,818 | ||||||||
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 52 |
Table of Contents
Common Stocks – continued | ||||||||
Shares | Value | |||||||
FINANCIALS – continued |
| |||||||
Thrifts & Mortgage Finance – 0.6% |
| |||||||
Radian Group, Inc. | 33,860 | $ | 772,008 | |||||
|
| |||||||
TOTAL FINANCIALS |
| 19,140,841 | ||||||
|
| |||||||
HEALTH CARE – 12.4% |
| |||||||
Biotechnology – 5.8% | ||||||||
AbbVie, Inc. | 21,630 | 1,440,991 | ||||||
Amgen, Inc. | 9,233 | 1,722,693 | ||||||
Biogen, Inc. (a) | 4,380 | 1,041,652 | ||||||
Celgene Corp. (a) | 16,346 | 1,501,543 | ||||||
Gilead Sciences, Inc. | 22,635 | 1,483,045 | ||||||
United Therapeutics Corp. (a) | 10,024 | 794,302 | ||||||
|
| |||||||
7,984,226 | ||||||||
|
| |||||||
Health Care Providers & Services – 2.9% |
| |||||||
Cigna Corp. | 7,497 | 1,273,890 | ||||||
CVS Health Corp. | 23,710 | 1,324,678 | ||||||
McKesson Corp. | 9,809 | 1,362,960 | ||||||
|
| |||||||
3,961,528 | ||||||||
|
| |||||||
Pharmaceuticals – 3.7% |
| |||||||
Johnson & Johnson | 21,954 | 2,858,850 | ||||||
Pfizer, Inc. | 55,732 | 2,164,631 | ||||||
|
| |||||||
5,023,481 | ||||||||
|
| |||||||
TOTAL HEALTH CARE |
| 16,969,235 | ||||||
|
| |||||||
INDUSTRIALS – 10.0% |
| |||||||
Aerospace & Defense – 1.1% | ||||||||
United Technologies Corp. | 11,179 | 1,493,514 | ||||||
|
| |||||||
Airlines – 3.0% | ||||||||
Delta Air Lines, Inc. | 20,130 | 1,228,735 | ||||||
JetBlue Airways Corp. (a) | 48,073 | 924,444 | ||||||
Southwest Airlines Co. | 17,288 | 890,851 | ||||||
United Airlines Holdings, Inc. (a) | 10,772 | 990,054 | ||||||
|
| |||||||
4,034,084 | ||||||||
|
| |||||||
Building Products – 0.7% | ||||||||
Owens Corning | 16,619 | 963,902 | ||||||
|
| |||||||
Machinery – 3.1% | ||||||||
Caterpillar, Inc. | 9,201 | 1,211,496 | ||||||
Cummins, Inc. | 6,426 | 1,053,864 | ||||||
Oshkosh Corp. | 11,519 | 962,643 | ||||||
PACCAR, Inc. | 14,507 | 1,017,521 | ||||||
|
| |||||||
4,245,524 | ||||||||
|
| |||||||
Professional Services – 0.7% | ||||||||
ManpowerGroup, Inc. | 10,940 | 999,369 | ||||||
|
| |||||||
Trading Companies & Distributors – 1.4% |
| |||||||
AerCap Holdings N.V. (a) | 18,332 | 999,644 | ||||||
United Rentals, Inc. (a) | 7,122 | 901,289 | ||||||
|
| |||||||
1,900,933 | ||||||||
|
| |||||||
TOTAL INDUSTRIALS |
| 13,637,326 | ||||||
|
|
Shares | Value | |||||||
INFORMATION TECHNOLOGY – 23.1% |
| |||||||
Communications Equipment – 1.5% | ||||||||
Cisco Systems, Inc. | 37,778 | $ | 2,092,901 | |||||
|
| |||||||
Electronic Equipment, Instruments & Components – 0.6% |
| |||||||
Tech Data Corp. (a) | 7,785 | 788,932 | ||||||
|
| |||||||
IT Services – 7.4% | ||||||||
Accenture PLC Class A | 7,956 | 1,532,167 | ||||||
Alliance Data Systems Corp. | 4,331 | 679,621 | ||||||
Cognizant Technology Solutions Corp. Class A | 13,323 | 867,860 | ||||||
DXC Technology Co. | 12,745 | 710,789 | ||||||
International Business Machines Corp. | 9,927 | 1,471,578 | ||||||
Mastercard, Inc. Class A | 8,023 | 2,184,422 | ||||||
Visa, Inc. Class A | 14,459 | 2,573,702 | ||||||
|
| |||||||
10,020,139 | ||||||||
|
| |||||||
Semiconductors & Semiconductor Equipment – 3.1% |
| |||||||
Applied Materials, Inc. | 23,592 | 1,164,737 | ||||||
Intel Corp. | 38,930 | 1,967,912 | ||||||
Micron Technology, Inc. (a) | 24,860 | 1,115,965 | ||||||
|
| |||||||
4,248,614 | ||||||||
|
| |||||||
Software – 5.6% |
| |||||||
Microsoft Corp. | 44,805 | 6,105,577 | ||||||
Oracle Corp. | 27,337 | 1,539,073 | ||||||
|
| |||||||
7,644,650 | ||||||||
|
| |||||||
Technology Hardware, Storage & Peripherals – 4.9% |
| |||||||
Apple, Inc. | 26,812 | 5,712,029 | ||||||
Western Digital Corp. | 17,709 | 954,338 | ||||||
|
| |||||||
6,666,367 | ||||||||
|
| |||||||
TOTAL INFORMATION TECHNOLOGY |
| 31,461,603 | ||||||
|
| |||||||
MATERIALS – 2.3% |
| |||||||
Chemicals – 1.1% | ||||||||
Corteva, Inc. | 5,303 | 156,439 | ||||||
Dow, Inc. | 5,303 | 256,877 | ||||||
DuPont de Nemours, Inc. | 5,311 | 383,242 | ||||||
Huntsman Corp. | 12,388 | 254,573 | ||||||
LyondellBasell Industries N.V. Class A | 4,450 | 372,421 | ||||||
The Chemours Co. | 7,803 | 148,803 | ||||||
|
| |||||||
1,572,355 | ||||||||
|
| |||||||
Containers & Packaging – 0.4% | ||||||||
International Paper Co. | 7,265 | 319,006 | ||||||
Westrock Co. | 7,292 | 262,877 | ||||||
|
| |||||||
581,883 | ||||||||
|
| |||||||
Metals & Mining – 0.8% | ||||||||
Freeport-McMoRan, Inc. | 28,388 | 313,971 | ||||||
Nucor Corp. | 5,618 | 305,507 | ||||||
Steel Dynamics, Inc. | 7,943 | 250,284 |
See accompanying notes which are an integral part of the financial statements.
53 | Annual Report |
Table of Contents
Fidelity® Value Factor ETF
Schedule of Investments – continued
Common Stocks – continued | ||||||||
Shares | Value | |||||||
MATERIALS – continued | ||||||||
Metals & Mining – continued | ||||||||
United States Steel Corp. | 11,868 | $ | 178,376 | |||||
|
| |||||||
1,048,138 | ||||||||
|
| |||||||
TOTAL MATERIALS |
| 3,202,376 | ||||||
|
| |||||||
REAL ESTATE – 3.5% |
| |||||||
Equity Real Estate Investment Trusts (REITs) – 3.1% |
| |||||||
Apple Hospitality REIT, Inc. | 14,245 | 223,789 | ||||||
Brixmor Property Group, Inc. | 14,154 | 268,643 | ||||||
Hospitality Properties Trust | 9,100 | 224,861 | ||||||
Host Hotels & Resorts, Inc. | 15,621 | 271,649 | ||||||
Kimco Realty Corp. | 14,838 | 285,038 | ||||||
Medical Properties Trust, Inc. | 13,654 | 238,945 | ||||||
Park Hotels & Resorts, Inc. | 8,185 | 216,166 | ||||||
Prologis, Inc. | 6,266 | 505,102 | ||||||
RLJ Lodging Trust | 12,531 | 216,536 | ||||||
Sabra Health Care REIT, Inc. | 11,416 | 235,626 | ||||||
Senior Housing Properties Trust | 16,873 | 138,358 | ||||||
Simon Property Group, Inc. | 2,699 | 437,778 | ||||||
Ventas, Inc. | 5,096 | 342,910 | ||||||
VICI Properties, Inc. | 11,808 | 251,983 | ||||||
Weyerhaeuser Co. | 12,035 | 305,809 | ||||||
|
| |||||||
4,163,193 | ||||||||
|
| |||||||
Real Estate Management & Development – 0.4% |
| |||||||
CBRE Group, Inc. Class A (a) | 6,308 | 334,387 | ||||||
Jones Lang LaSalle, Inc. | 1,736 | 252,918 | ||||||
|
| |||||||
587,305 | ||||||||
|
| |||||||
TOTAL REAL ESTATE |
| 4,750,498 | ||||||
|
| |||||||
UTILITIES – 3.1% |
| |||||||
Electric Utilities – 2.0% |
| |||||||
Duke Energy Corp. | 7,096 | 615,365 | ||||||
Edison International | 7,073 | 527,222 |
Shares | Value | |||||||
Exelon Corp. | 11,276 | $ | 508,097 | |||||
PPL Corp. | 13,507 | 400,212 | ||||||
The Southern Co. | 11,512 | 646,974 | ||||||
|
| |||||||
2,697,870 | ||||||||
|
| |||||||
Independent Power and Renewable Electricity Producers – 0.7% |
| |||||||
AES Corp. | 22,320 | 374,753 | ||||||
NRG Energy, Inc. | 9,037 | 308,523 | ||||||
Vistra Energy Corp. | 14,336 | 307,651 | ||||||
|
| |||||||
990,927 | ||||||||
|
| |||||||
Multi-Utilities – 0.4% | ||||||||
Consolidated Edison, Inc. | 5,597 | 475,521 | ||||||
|
| |||||||
TOTAL UTILITIES |
| 4,164,318 | ||||||
|
| |||||||
TOTAL COMMON STOCKS |
| 136,234,136 | ||||||
|
| |||||||
Money Market Funds – 0.1% | ||||||||
Fidelity Cash Central Fund, 2.43% (b) | 134,167 | 134,194 | ||||||
|
| |||||||
TOTAL INVESTMENT IN SECURITIES – 100.0% |
| 136,368,330 | ||||||
NET OTHER ASSETS (LIABILITIES) – 0.00% |
| 34,886 | ||||||
|
| |||||||
NET ASSETS – 100.0% |
| $ | 136,403,216 | |||||
|
|
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 annualizedseven-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. |
Futures Contracts
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/ (Depreciation) | ||||||||||||||||
Purchased | ||||||||||||||||||||
Equity Index Contract | ||||||||||||||||||||
CMEE-mini S&P 500 Index Future Contracts | 1 | September 2019 | $149,115 | $(287) | $ | (287 | ) | |||||||||||||
|
|
The notional amount of futures purchased as a percentage of Net Assets is 0.1%
See accompanying notes which are an integral part of the financial statements.
Annual Report | 54 |
Table of Contents
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 | $ | 2,735 | ||
Fidelity Securities Lending Cash Central Fund | 192 | |||
|
| |||
Total | $ | 2,927 | ||
|
|
Amounts in the income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line-item in the Statement of Operations, if applicable. Amount for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received from lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of July 31, 2019, 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: | ||||||||||||||||
Communication Services | $ | 14,022,886 | $ | 14,022,886 | $ | — | $ | — | ||||||||
Consumer Discretionary | 13,927,637 | 13,927,637 | — | — | ||||||||||||
Consumer Staples | 8,522,772 | 8,522,772 | — | — | ||||||||||||
Energy | 6,434,644 | 6,434,644 | — | — | ||||||||||||
Financials | 19,140,841 | 19,140,841 | — | — | ||||||||||||
Health Care | 16,969,235 | 16,969,235 | — | — | ||||||||||||
Industrials | 13,637,326 | 13,637,326 | — | — | ||||||||||||
Information Technology | 31,461,603 | 31,461,603 | — | — | ||||||||||||
Materials | 3,202,376 | 3,202,376 | — | — | ||||||||||||
Real Estate | 4,750,498 | 4,750,498 | — | — | ||||||||||||
Utilities | 4,164,318 | 4,164,318 | — | — | ||||||||||||
Money Market Funds | 134,194 | 134,194 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities: | $ | 136,368,330 | $ | 136,368,330 | $ | — | $ | — | ||||||||
|
|
|
|
|
|
|
| |||||||||
Derivative Instruments: | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (287 | ) | $ | (287 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Liabilities | $ | (287 | ) | $ | (287 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
| |||||||||
Total Derivative Instruments: | $ | (287 | ) | $ | (287 | ) | $ | — | $ | — | ||||||
|
|
|
|
|
|
|
|
Value of Derivative Instruments
The following table is a summary of the Fund’s value of derivative instruments by primary risk exposure as of July 31, 2019. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Value | ||||||||
Primary Risk/ Derivative Type | Asset | Liabilities | ||||||
Equity Risk | ||||||||
Futures Contracts(a) | $ | 0 | $ | (287 | ) | |||
|
|
|
| |||||
Total Equity Risk | 0 | (287 | ) | |||||
|
|
|
| |||||
Total Value of Derivatives | $ | 0 | $ | (287 | ) | |||
|
|
|
|
(a) | Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in distributable earnings. |
See accompanying notes which are an integral part of the financial statements.
55 | Annual Report |
Table of Contents
Statements of Assets and Liabilities | ||||||||||||||||
July 31, 2019 | ||||||||||||||||
Fidelity Dividend ETF For Rising Rates | Fidelity High Dividend ETF | Fidelity Low Volatility Factor ETF | Fidelity Momentum Factor ETF | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at value (including securities loaned of $—, $—, $1,240,805 and $573,636, respectively) – See accompanying schedule: | ||||||||||||||||
Unaffiliated issuers | $ | 359,055,808 | $ | 361,277,298 | $ | 244,980,948 | $ | 121,520,734 | ||||||||
Fidelity Central Funds | 553,773 | 856,430 | 1,643,401 | 752,181 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total Investments in Securities | $ | 359,609,581 | $ | 362,133,728 | $ | 246,624,349 | $ | 122,272,915 | ||||||||
Segregated cash with brokers for derivative instruments | 50,400 | 69,300 | 12,600 | 6,300 | ||||||||||||
Cash | — | — | — | 16,405 | ||||||||||||
Foreign currency held at value (cost $22,413, $43,687, $— and $—, respectively) | 22,047 | 43,368 | — | — | ||||||||||||
Receivable for investments sold | — | — | — | — | ||||||||||||
Receivable for fund shares sold | — | — | 1,818,528 | — | ||||||||||||
Dividends receivable | 654,759 | 821,412 | 192,820 | 66,907 | ||||||||||||
Distributions receivable from Fidelity Central Funds | — | — | 119 | 55 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total assets | 360,336,787 | 363,067,808 | 248,648,416 | 122,362,582 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Liabilities | ||||||||||||||||
Payable for investments purchased | — | — | 1,804,945 | — | ||||||||||||
Accrued management fees | 88,745 | 86,183 | 58,601 | 28,671 | ||||||||||||
Payable for daily variation margin on futures contracts | 18,595 | 29,690 | 3,000 | 1,500 | ||||||||||||
Collateral on securities loaned, at value | — | — | 1,279,550 | 596,100 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total liabilities | 107,340 | 115,873 | 3,146,096 | 626,271 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 360,229,447 | $ | 362,951,935 | $ | 245,502,320 | $ | 121,736,311 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets consist of: | ||||||||||||||||
Paid in capital | 358,391,062 | 364,522,079 | 224,802,038 | 116,686,471 | ||||||||||||
Total distributable earnings (loss) | 1,838,385 | (1,570,144 | ) | 20,700,282 | 5,049,840 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Assets | $ | 360,229,447 | $ | 362,951,935 | $ | 245,502,320 | $ | 121,736,311 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Shares outstanding | 11,150,000 | 12,050,000 | 6,750,000 | 3,400,000 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net Asset Value, offering price and redemption price per share | $ | 32.31 | $ | 30.12 | $ | 36.37 | $ | 35.80 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Investments at cost – Unaffiliated issuers | $ | 345,427,303 | $ | 352,005,653 | $ | 222,198,498 | $ | 109,572,090 | ||||||||
Investments at cost – Fidelity Central Funds | 553,773 | 856,430 | 1,643,405 | 752,184 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Investments at cost | $ | 345,981,076 | $ | 352,862,083 | $ | 223,841,903 | $ | 110,324,274 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 56 |
Table of Contents
Statements of Assets and Liabilities | ||||||||||||
July 31, 2019 | ||||||||||||
Fidelity Quality Factor ETF | Fidelity Small-Mid Factor ETF | Fidelity Value Factor ETF | ||||||||||
Assets | ||||||||||||
Investments in securities, at value (including securities loaned of $—, $— and $—, respectively) – See accompanying schedule: | ||||||||||||
Unaffiliated issuers | $ | 161,981,268 | $ | 7,641,051 | $ | 136,234,136 | ||||||
Fidelity Central Funds | 152,925 | — | 134,194 | |||||||||
|
|
|
|
|
| |||||||
Total Investments in Securities | $ | 162,134,193 | $ | 7,641,051 | $ | 136,368,330 | ||||||
Segregated cash with brokers for derivative instruments | 6,300 | — | 6,300 | |||||||||
Cash | 25,758 | 8,630 | — | |||||||||
Foreign currency held at value (cost $—, $— and $—, respectively) | — | — | — | |||||||||
Receivable for investments sold | — | 13,491 | — | |||||||||
Receivable for fund shares sold | — | — | — | |||||||||
Dividends receivable | 156,212 | 3,798 | 156,332 | |||||||||
Distributions receivable from Fidelity Central Funds | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total assets | 162,322,463 | 7,666,970 | 136,530,962 | |||||||||
|
|
|
|
|
| |||||||
Liabilities | ||||||||||||
Payable for investments purchased | — | 14,898 | 92,903 | |||||||||
Accrued management fees | 39,433 | 1,842 | 33,343 | |||||||||
Payable for daily variation margin on futures contracts | 1,500 | — | 1,500 | |||||||||
Collateral on securities loaned, at value | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total liabilities | 40,933 | 16,740 | 127,746 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 162,281,530 | $ | 7,650,230 | $ | 136,403,216 | ||||||
|
|
|
|
|
| |||||||
Net Assets consist of: | ||||||||||||
Paid in capital | 155,652,556 | 7,460,230 | 133,454,741 | |||||||||
Total distributable earnings (loss) | 6,628,974 | 190,000 | 2,948,475 | |||||||||
|
|
|
|
|
| |||||||
Net Assets | $ | 162,281,530 | $ | 7,650,230 | $ | 136,403,216 | ||||||
|
|
|
|
|
| |||||||
Shares outstanding | 4,600,000 | 300,000 | 3,950,000 | |||||||||
|
|
|
|
|
| |||||||
Net Asset Value, offering price and redemption price per share | $ | 35.28 | $ | 25.50 | $ | 34.53 | ||||||
|
|
|
|
|
| |||||||
Investments at cost – Unaffiliated issuers | $ | 152,897,880 | $ | 7,454,356 | $ | 129,956,012 | ||||||
Investments at cost – Fidelity Central Funds | 152,925 | — | 134,194 | |||||||||
|
|
|
|
|
| |||||||
Investments at cost | $ | 153,050,805 | $ | 7,454,356 | $ | 130,090,206 | ||||||
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
57 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Operations | ||||||||||||||||
For the year ended July 31, 2019 | ||||||||||||||||
Fidelity Dividend ETF For Rising Rates | Fidelity High Dividend ETF | Fidelity Low Volatility Factor ETF | Fidelity Momentum Factor ETF | |||||||||||||
Investment Income | ||||||||||||||||
Dividends | $ | 13,803,712 | $ | 12,017,280 | $ | 2,814,960 | $ | 1,548,364 | ||||||||
Income from Fidelity Central Funds (including $26,251, $5,749, $3,724 and $770, from security lending, respectively) | 36,791 | 15,403 | 8,279 | 3,310 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total income | 13,840,503 | 12,032,683 | 2,823,239 | 1,551,674 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Expenses | ||||||||||||||||
Management fees | 1,079,229 | 784,292 | 385,791 | 306,237 | ||||||||||||
Independent trustees’ compensation | 2,009 | 1,317 | 595 | 559 | ||||||||||||
Interest expense | — | 2,216 | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses before reductions | 1,081,238 | 787,825 | 386,386 | 306,796 | ||||||||||||
Expense reductions | (119 | ) | (142 | ) | (453 | ) | (281 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Total expenses | 1,081,119 | 787,683 | 385,933 | 306,515 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net investment income (loss) | 12,759,384 | 11,245,000 | 2,437,306 | 1,245,159 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Realized and Unrealized Gain (Loss) | ||||||||||||||||
Net realized gain (loss) on investment securities | (6,630,503 | ) | (8,169,577 | ) | (1,767,881 | ) | (4,559,808 | ) | ||||||||
Net realized gain (loss) onIn-kind redemptions | 18,090,818 | 9,425,666 | 6,885,030 | 8,306,626 | ||||||||||||
Net realized gain (loss) on futures contracts | (10 | ) | (12 | ) | (3 | ) | (2 | ) | ||||||||
Net realized gain (loss) on foreign currency transactions | (20,629 | ) | 26,775 | — | — | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total net realized gain (loss) | 11,439,676 | 1,282,852 | 5,117,146 | 3,746,816 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Change in net unrealized appreciation (depreciation) on investment securities | (5,719,144 | ) | 1,530,624 | 17,615,374 | 4,074,148 | |||||||||||
Change in net unrealized appreciation (depreciation) on Fidelity Central Funds | 67 | 18 | (4 | ) | (3 | ) | ||||||||||
Change in net unrealized appreciation (depreciation) on futures contracts | (5,408 | ) | (9,392 | ) | (570 | ) | (285 | ) | ||||||||
Change in net unrealized appreciation (depreciation) on assets and liabilities in foreign currencies | (3,731 | ) | (10,707 | ) | — | — | ||||||||||
|
|
|
|
|
|
|
| |||||||||
Total change in net unrealized appreciation (depreciation) | (5,728,216 | ) | 1,510,543 | 17,614,800 | 4,073,860 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net gain (loss) | 5,711,460 | 2,793,395 | 22,731,946 | 7,820,676 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 18,470,844 | $ | 14,038,395 | $ | 25,169,252 | $ | 9,065,835 | ||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 58 |
Table of Contents
Statements of Operations | ||||||||||||
For the year ended July 31, 2019 | ||||||||||||
Fidelity Quality Factor ETF | Fidelity Small-Mid Factor ETFA | Fidelity Value Factor ETF | ||||||||||
Investment Income | ||||||||||||
Dividends | $ | 2,552,300 | $ | 56,170 | $ | 2,719,627 | ||||||
Income from Fidelity Central Funds (including $11,405, $— and $192, from security lending, respectively) | 14,449 | 13 | 2,927 | |||||||||
|
|
|
|
|
| |||||||
Total income | 2,566,749 | 56,183 | 2,722,554 | |||||||||
|
|
|
|
|
| |||||||
Expenses | ||||||||||||
Management fees | 370,523 | 8,194 | 330,650 | |||||||||
Independent trustees’ compensation | 624 | 11 | 580 | |||||||||
Interest expense | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total expenses before reductions | 371,147 | 8,205 | 331,230 | |||||||||
Expense reductions | (209 | ) | — | (266 | ) | |||||||
|
|
|
|
|
| |||||||
Total expenses | 370,938 | 8,205 | 330,964 | |||||||||
|
|
|
|
|
| |||||||
Net investment income (loss) | 2,195,811 | 47,978 | 2,391,590 | |||||||||
|
|
|
|
|
| |||||||
Realized and Unrealized Gain (Loss) | ||||||||||||
Net realized gain (loss) on investment securities | (1,909,870 | ) | 527 | (2,221,002 | ) | |||||||
Net realized gain (loss) onIn-kind redemptions | 4,543,076 | — | 6,270,329 | |||||||||
Net realized gain (loss) on futures contracts | — | — | — | |||||||||
Net realized gain (loss) on foreign currency transactions | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total net realized gain (loss) | 2,633,206 | 527 | 4,049,327 | |||||||||
|
|
|
|
|
| |||||||
Change in net unrealized appreciation (depreciation) on investment securities | 3,995,499 | 186,695 | 585,216 | |||||||||
Change in net unrealized appreciation (depreciation) on Fidelity Central Funds | 2 | — | 1 | |||||||||
Change in net unrealized appreciation (depreciation) on futures contracts | (287 | ) | — | (287 | ) | |||||||
Change in net unrealized appreciation (depreciation) on assets and liabilities in foreign currencies | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total change in net unrealized appreciation (depreciation) | 3,995,214 | 186,695 | 584,930 | |||||||||
|
|
|
|
|
| |||||||
Net gain (loss) | 6,628,420 | 187,222 | 4,634,257 | |||||||||
|
|
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | $ | 8,824,231 | $ | 235,200 | $ | 7,025,847 | ||||||
|
|
|
|
|
|
A | For the period February 26, 2019 (commencement of operations) to July 31, 2019. |
See accompanying notes which are an integral part of the financial statements.
59 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity Dividend ETF For Rising Rates | Fidelity High Dividend ETF | |||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 12,759,384 | $ | 7,604,966 | $ | 11,245,000 | $ | 3,902,545 | ||||||||
Net realized gain (loss) | 11,439,676 | 5,757,039 | 1,282,852 | 4,576,051 | ||||||||||||
Change in net unrealized appreciation (depreciation) | (5,728,216 | ) | 17,013,699 | 1,510,543 | 6,938,649 | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 18,470,844 | 30,375,704 | 14,038,395 | 15,417,245 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders | (12,908,350 | ) | — | (11,425,400 | ) | — | ||||||||||
Distributions to shareholders from net investment income | — | (7,614,450 | ) | — | (4,045,250 | ) | ||||||||||
Distributions to shareholders from net realized gain | — | — | — | (29,500 | ) | |||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (12,908,350 | ) | (7,614,450 | ) | (11,425,400 | ) | (4,074,750 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 161,232,208 | 237,265,494 | 270,497,158 | 133,442,348 | ||||||||||||
Cost of shares redeemed | (153,460,832 | ) | (65,623,350 | ) | (81,992,873 | ) | (32,300,411 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 7,771,376 | 171,642,144 | 188,504,285 | 101,141,937 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 13,333,870 | 194,403,398 | 191,117,280 | 112,484,432 | ||||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 346,895,577 | 152,492,179 | 171,834,655 | 59,350,223 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 360,229,447 | $ | 346,895,577 | $ | 362,951,935 | $ | 171,834,655 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income end of period | $ | 122,792 | $ | — | ||||||||||||
|
|
|
| |||||||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 5,150,000 | 7,750,000 | 9,100,000 | 4,600,000 | ||||||||||||
Redeemed | (5,000,000 | ) | (2,100,000 | ) | (2,750,000 | ) | (1,100,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 150,000 | 5,650,000 | 6,350,000 | 3,500,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
Annual Report | 60 |
Table of Contents
Statements of Changes in Net Assets | ||||||||||||||||
Fidelity Low Volatility Factor ETF | Fidelity Momentum Factor ETF | |||||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019 | Year ended July 31, 2018 | |||||||||||||
Increase (Decrease) in Net Assets | ||||||||||||||||
Operations | ||||||||||||||||
Net investment income (loss) | $ | 2,437,306 | $ | 800,213 | $ | 1,245,159 | $ | 717,946 | ||||||||
Net realized gain (loss) | 5,117,146 | 1,649,908 | 3,746,816 | 2,180,008 | ||||||||||||
Change in net unrealized appreciation (depreciation) | 17,614,800 | 4,025,357 | 4,073,860 | 6,072,794 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from operations | 25,169,252 | 6,475,478 | 9,065,835 | 8,970,748 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Distributions to shareholders | (2,299,750 | ) | — | (1,240,750 | ) | — | ||||||||||
Distributions to shareholders from net investment income | — | (793,800 | ) | — | (688,250 | ) | ||||||||||
Distributions to shareholders from net realized gain | — | — | — | — | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total distributions | (2,299,750 | ) | (793,800 | ) | (1,240,750 | ) | (688,250 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Share transactions | ||||||||||||||||
Proceeds from sales of shares | 204,495,786 | 46,091,368 | 79,088,780 | 90,704,534 | ||||||||||||
Cost of shares redeemed | (48,283,271 | ) | (19,185,949 | ) | (60,879,132 | ) | (39,030,201 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) in net assets resulting from share transactions | 156,212,515 | 26,905,419 | 18,209,648 | 51,674,333 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
Total increase (decrease) in net assets | 179,082,017 | 32,587,097 | 26,034,733 | 59,956,831 | ||||||||||||
Net Assets | ||||||||||||||||
Beginning of year | 66,420,303 | 33,833,206 | 95,701,578 | 35,744,747 | ||||||||||||
|
|
|
|
|
|
|
| |||||||||
End of year | $ | 245,502,320 | $ | 66,420,303 | $ | 121,736,311 | $ | 95,701,578 | ||||||||
|
|
|
|
|
|
|
| |||||||||
Undistributed net investment income end of period | $ | 28,045 | $ | 49,177 | ||||||||||||
|
|
|
| |||||||||||||
Other Information | ||||||||||||||||
Shares | ||||||||||||||||
Sold | 6,150,000 | 1,500,000 | 2,350,000 | 2,850,000 | ||||||||||||
Redeemed | (1,450,000 | ) | (650,000 | ) | (1,800,000 | ) | (1,250,000 | ) | ||||||||
|
|
|
|
|
|
|
| |||||||||
Net increase (decrease) | 4,700,000 | 850,000 | 550,000 | 1,600,000 | ||||||||||||
|
|
|
|
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
61 | Annual Report |
Table of Contents
Financial Statements – continued
Statements of Changes in Net Assets | ||||||||||||
Fidelity Quality Factor ETF | Fidelity Small-Mid Factor ETF | |||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2019A | ||||||||||
Increase (Decrease) in Net Assets | ||||||||||||
Operations | ||||||||||||
Net investment income (loss) | $ | 2,195,811 | $ | 859,509 | $ | 47,978 | ||||||
Net realized gain (loss) | 2,633,206 | 1,969,453 | 527 | |||||||||
Change in net unrealized appreciation (depreciation) | 3,995,214 | 4,345,070 | 186,695 | |||||||||
|
|
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | 8,824,231 | 7,174,032 | 235,200 | |||||||||
|
|
|
|
|
| |||||||
Distributions to shareholders | (2,135,800 | ) | — | (45,200 | ) | |||||||
Distributions to shareholders from net investment income | — | (891,500 | ) | — | ||||||||
Distributions to shareholders from net realized gain | — | — | — | |||||||||
|
|
|
|
|
| |||||||
Total distributions | (2,135,800 | ) | (891,500 | ) | (45,200 | ) | ||||||
|
|
|
|
|
| |||||||
Share transactions | ||||||||||||
Proceeds from sales of shares | 130,468,237 | 44,304,370 | 7,460,230 | |||||||||
Cost of shares redeemed | (40,134,110 | ) | (15,896,471 | ) | — | |||||||
|
|
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from share transactions | 90,334,127 | 28,407,899 | 7,460,230 | |||||||||
|
|
|
|
|
| |||||||
Total increase (decrease) in net assets | 97,022,558 | 34,690,431 | 7,650,230 | |||||||||
Net Assets | ||||||||||||
Beginning of year | 65,258,972 | 30,568,541 | — | |||||||||
|
|
|
|
|
| |||||||
End of year | $ | 162,281,530 | $ | 65,258,972 | $ | 7,650,230 | ||||||
|
|
|
|
|
| |||||||
Undistributed net investment income end of period | $ | 22,608 | ||||||||||
|
| |||||||||||
Other Information | ||||||||||||
Shares | ||||||||||||
Sold | 3,900,000 | 1,400,000 | 300,000 | |||||||||
Redeemed | (1,250,000 | ) | (500,000 | ) | — | |||||||
|
|
|
|
|
| |||||||
Net increase (decrease) | 2,650,000 | 900,000 | 300,000 | |||||||||
|
|
|
|
|
|
A | For the period February 26, 2019 (commencement of operations) to July 31, 2019. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 62 |
Table of Contents
Statements of Changes in Net Assets | ||||||||
Fidelity Value Factor ETF | ||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 2,391,590 | $ | 1,145,379 | ||||
Net realized gain (loss) | 4,049,327 | 2,387,424 | ||||||
Change in net unrealized appreciation (depreciation) | 584,930 | 4,698,706 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 7,025,847 | 8,231,509 | ||||||
|
|
|
| |||||
Distributions to shareholders | (2,294,300 | ) | — | |||||
Distributions to shareholders from net investment income | — | (1,129,450 | ) | |||||
Distributions to shareholders from net realized gain | — | — | ||||||
|
|
|
| |||||
Total distributions | (2,294,300 | ) | (1,129,450 | ) | ||||
|
|
|
| |||||
Share transactions | ||||||||
Proceeds from sales of shares | 85,584,698 | 62,950,948 | ||||||
Cost of shares redeemed | (40,363,131 | ) | (22,241,630 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from share transactions | 45,221,567 | 40,709,318 | ||||||
|
|
|
| |||||
Total increase (decrease) in net assets | 49,953,114 | 47,811,377 | ||||||
Net Assets | ||||||||
Beginning of year | 86,450,102 | 38,638,725 | ||||||
|
|
|
| |||||
End of year | $ | 136,403,216 | $ | 86,450,102 | ||||
|
|
|
| |||||
Undistributed net investment income end of period | $ | 46,922 | ||||||
|
| |||||||
Other Information | ||||||||
Shares | ||||||||
Sold | 2,600,000 | 1,950,000 | ||||||
Redeemed | (1,200,000 | ) | (700,000 | ) | ||||
|
|
|
| |||||
Net increase (decrease) | 1,400,000 | 1,250,000 | ||||||
|
|
|
|
See accompanying notes which are an integral part of the financial statements.
63 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||
Fidelity Dividend ETF For Rising Rates | ||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017A | ||||||||||
SelectedPer-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 31.54 | $ | 28.50 | $ | 25.34 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 1.07 | 0.93 | 0.76 | |||||||||
Net realized and unrealized gain (loss) | 0.79 | 3.03 | 2.98 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 1.86 | 3.96 | 3.74 | |||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (1.09 | ) | (0.92 | ) | (0.58 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (1.09 | ) | (0.92 | ) | (0.58 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 32.31 | $ | 31.54 | $ | 28.50 | ||||||
|
|
|
|
|
| |||||||
Total ReturnC,D | 6.09 | % | 14.04 | % | 14.85 | % | ||||||
Ratios to Average Net AssetsE,F | ||||||||||||
Expense before reductions | .29 | % | .30 | % | .29 | %G | ||||||
Expenses net of fee waivers, if any | .29 | % | .30 | % | .29 | %G | ||||||
Expenses net of all reductions | .29 | % | .30 | % | .29 | %G | ||||||
Net investment income (loss) | 3.42 | % | 3.08 | % | 3.09 | %G | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 360,229 | $ | 346,896 | $ | 152,492 | ||||||
Portfolio turnover rateH,I | 35 | % | 38 | % | 52 | %J |
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 | Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. |
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 | Fees and expenses of any underlying Fidelity Central Funds are not included in the Funds’ expense ratio. Each Fund indirectly bears its proportionate share of expenses of any underlying Fidelity Central Funds. |
G | Annualized. |
H | Amount does not include the portfolio activity of any underlying funds. |
I | Portfolio turnover rate excludes securities received or deliveredin-kind. |
J | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 64 |
Table of Contents
Financial Highlights | ||||||||||||
Fidelity High Dividend ETF | ||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017A | ||||||||||
SelectedPer-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 30.15 | $ | 26.98 | $ | 25.32 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 1.23 | 1.09 | 0.85 | |||||||||
Net realized and unrealized gain (loss) | (0.03 | )C | 3.21 | 1.57 | ||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 1.20 | 4.30 | 2.42 | |||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (1.23 | ) | (1.12 | ) | (0.76 | ) | ||||||
Distributions from net realized gain | — | (0.01 | ) | — | ||||||||
|
|
|
|
|
| |||||||
Total distributions | (1.23 | ) | (1.13 | ) | (0.76 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 30.12 | $ | 30.15 | $ | 26.98 | ||||||
|
|
|
|
|
| |||||||
Total ReturnD,E | 4.16 | % | 16.23 | % | 9.61 | % | ||||||
Ratios to Average Net AssetsF,G | ||||||||||||
Expense before reductions | .29 | % | .30 | % | .29 | %H | ||||||
Expenses net of fee waivers, if any | .29 | % | .30 | % | .29 | %H | ||||||
Expenses net of all reductions | .29 | % | .30 | % | .29 | %H | ||||||
Net investment income (loss) | 4.15 | % | 3.80 | % | 3.61 | %H | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 362,952 | $ | 171,835 | $ | 59,350 | ||||||
Portfolio turnover rateI,J | 50 | % | 53 | % | 57 | %K |
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 | 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 | Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. |
F | 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. |
G | Fees and expenses of any underlying Fidelity Central Funds are not included in the Funds’ expense ratio. Each Fund indirectly bears its proportionate share of expenses of any underlying Fidelity Central Funds. |
H | Annualized. |
I | Amount does not include the portfolio activity of any underlying funds. |
J | Portfolio turnover rate excludes securities received or deliveredin-kind. |
K | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
65 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||
Fidelity Low Volatility Factor ETF | ||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017A | ||||||||||
SelectedPer-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 32.40 | $ | 28.19 | $ | 25.31 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.62 | 0.53 | 0.45 | |||||||||
Net realized and unrealized gain (loss) | 3.92 | 4.20 | 2.81 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 4.54 | 4.73 | 3.26 | |||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.57 | ) | (0.52 | ) | (0.38 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.57 | ) | (0.52 | ) | (0.38 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 36.37 | $ | 32.40 | $ | 28.19 | ||||||
|
|
|
|
|
| |||||||
Total ReturnC,D | 14.20 | % | 16.89 | % | 12.94 | % | ||||||
Ratios to Average Net AssetsE,F | ||||||||||||
Expense before reductions | .29 | % | .30 | % | .29 | %G | ||||||
Expenses net of fee waivers, if any | .29 | % | .30 | % | .29 | %G | ||||||
Expenses net of all reductions | .29 | % | .30 | % | .29 | %G | ||||||
Net investment income (loss) | 1.83 | % | 1.73 | % | 1.87 | %G | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 245,502 | $ | 66,420 | $ | 33,833 | ||||||
Portfolio turnover rateH,I | 36 | % | 31 | % | 33 | %J |
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 | Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. |
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 | Fees and expenses of any underlying Fidelity Central Funds are not included in the Funds’ expense ratio. Each Fund indirectly bears its proportionate share of expenses of any underlying Fidelity Central Funds. |
G | Annualized. |
H | Amount does not include the portfolio activity of any underlying funds. |
I | Portfolio turnover rate excludes securities received or deliveredin-kind. |
J | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 66 |
Table of Contents
Financial Highlights | ||||||||||||
Fidelity Momentum Factor ETF | ||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017A | ||||||||||
SelectedPer-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 33.58 | $ | 28.60 | $ | 25.34 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.40 | 0.36 | 0.36 | |||||||||
Net realized and unrealized gain (loss) | 2.22 | 4.97 | 3.19 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 2.62 | 5.33 | 3.55 | |||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.40 | ) | (0.35 | ) | (0.29 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.40 | ) | (0.35 | ) | (0.29 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 35.80 | $ | 33.58 | $ | 28.60 | ||||||
|
|
|
|
|
| |||||||
Total ReturnC,D | 7.91 | % | 18.72 | % | 14.11 | % | ||||||
Ratios to Average Net AssetsE,F | ||||||||||||
Expense before reductions | .29 | % | .30 | % | .29 | %G | ||||||
Expenses net of fee waivers, if any | .29 | % | .30 | % | .29 | %G | ||||||
Expenses net of all reductions | .29 | % | .30 | % | .29 | %G | ||||||
Net investment income (loss) | 1.18 | % | 1.14 | % | 1.50 | %G | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 121,736 | $ | 95,702 | $ | 35,745 | ||||||
Portfolio turnover rateH,I | 133 | % | 125 | % | 106 | %J |
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 | Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. |
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 | Fees and expenses of any underlying Fidelity Central Funds are not included in the Funds’ expense ratio. Each Fund indirectly bears its proportionate share of expenses of any underlying Fidelity Central Funds. |
G | Annualized. |
H | Amount does not include the portfolio activity of any underlying funds. |
I | Portfolio turnover rate excludes securities received or deliveredin-kind. |
J | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
67 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||
Fidelity Quality Factor ETF | ||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017A | ||||||||||
SelectedPer-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 33.47 | $ | 29.11 | $ | 25.37 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.58 | 0.53 | 0.45 | |||||||||
Net realized and unrealized gain (loss) | 1.77 | 4.38 | 3.62 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 2.35 | 4.91 | 4.07 | |||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.54 | ) | (0.55 | ) | (0.33 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.54 | ) | (0.55 | ) | (0.33 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 35.28 | $ | 33.47 | $ | 29.11 | ||||||
|
|
|
|
|
| |||||||
Total ReturnC,D | 7.14 | % | 16.95 | % | 16.10 | % | ||||||
Ratios to Average Net AssetsE,F | ||||||||||||
Expense before reductions | .29 | % | .30 | % | .29 | %G | ||||||
Expenses net of fee waivers, if any | .29 | % | .30 | % | .29 | %G | ||||||
Expenses net of all reductions | .29 | % | .30 | % | .29 | %G | ||||||
Net investment income (loss) | 1.72 | % | 1.66 | % | 1.84 | %G | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 162,282 | $ | 65,259 | $ | 30,569 | ||||||
Portfolio turnover rateH,I | 29 | % | 30 | % | 35 | %J |
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 | Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. |
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 | Fees and expenses of any underlying Fidelity Central Funds are not included in the Funds’ expense ratio. Each Fund indirectly bears its proportionate share of expenses of any underlying Fidelity Central Funds. |
G | Annualized. |
H | Amount does not include the portfolio activity of any underlying funds. |
I | Portfolio turnover rate excludes securities received or deliveredin-kind. |
J | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 68 |
Table of Contents
Financial Highlights | ||||
Fidelity Small-Mid Factor ETF | ||||
Year ended July 31, 2019A | ||||
SelectedPer-Share Data | ||||
Net asset value, beginning of period | $ | 24.85 | ||
|
| |||
Income from Investment Operations | ||||
Net investment income (loss)B | 0.18 | |||
Net realized and unrealized gain (loss) | 0.64 | |||
|
| |||
Total from investment operations | 0.82 | |||
|
| |||
Distributions from net investment income | (0.17 | ) | ||
|
| |||
Total distributions | (0.17 | ) | ||
|
| |||
Net asset value, end of period | $ | 25.50 | ||
|
| |||
Total ReturnC | 3.35 | % | ||
Ratios to Average Net AssetsD,E,F | ||||
Expense before reductions | .29 | % | ||
Expenses net of fee waivers, if any | .29 | % | ||
Expenses net of all reductions | .29 | % | ||
Net investment income (loss) | 1.70 | % | ||
Supplemental Data | ||||
Net assets, end of period (000 omitted) | $ | 7,650 | ||
Portfolio turnover rateG,H,I | 2 | % |
A | For the period February 26, 2019 (commencement of operations) to July 31, 2019. |
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 | Fees and expenses of any underlying Fidelity Central Funds are not included in the Funds’ expense ratio. Each Fund indirectly bears its proportionate share of expenses of any underlying Fidelity Central Funds. |
G | Amount does not include the portfolio activity of any underlying funds. |
H | Amount not annualized. |
I | Portfolio turnover rate excludes securities received or deliveredin-kind. |
See accompanying notes which are an integral part of the financial statements.
69 | Annual Report |
Table of Contents
Financial Statements – continued
Financial Highlights | ||||||||||||
Fidelity Value Factor ETF | ||||||||||||
Year ended July 31, 2019 | Year ended July 31, 2018 | Year ended July 31, 2017A | ||||||||||
SelectedPer-Share Data | ||||||||||||
Net asset value, beginning of period | $ | 33.90 | $ | 29.72 | $ | 25.37 | ||||||
|
|
|
|
|
| |||||||
Income from Investment Operations | ||||||||||||
Net investment income (loss)B | 0.70 | 0.58 | 0.49 | |||||||||
Net realized and unrealized gain (loss) | 0.59 | 4.18 | 4.23 | |||||||||
|
|
|
|
|
| |||||||
Total from investment operations | 1.29 | 4.76 | 4.72 | |||||||||
|
|
|
|
|
| |||||||
Distributions from net investment income | (0.66 | ) | (0.58 | ) | (0.37 | ) | ||||||
|
|
|
|
|
| |||||||
Total distributions | (0.66 | ) | (0.58 | ) | (0.37 | ) | ||||||
|
|
|
|
|
| |||||||
Net asset value, end of period | $ | 34.53 | $ | 33.90 | $ | 29.72 | ||||||
|
|
|
|
|
| |||||||
Total ReturnC,D | 3.95 | % | 16.11 | % | 18.65 | % | ||||||
Ratios to Average Net AssetsE,F | ||||||||||||
Expense before reductions | .29 | % | .30 | % | .29 | %G | ||||||
Expenses net of fee waivers, if any | .29 | % | .30 | % | .29 | %G | ||||||
Expenses net of all reductions | .29 | % | .30 | % | .29 | %G | ||||||
Net investment income (loss) | 2.09 | % | 1.79 | % | 1.92 | %G | ||||||
Supplemental Data | ||||||||||||
Net assets, end of period (000 omitted) | $ | 136,403 | $ | 86,450 | $ | 38,639 | ||||||
Portfolio turnover rateH,I | 31 | % | 38 | % | 42 | %J |
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 | Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown. |
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 | Fees and expenses of any underlying Fidelity Central Funds are not included in the Funds’ expense ratio. Each Fund indirectly bears its proportionate share of expenses of any underlying Fidelity Central Funds. |
G | Annualized. |
H | Amount does not include the portfolio activity of any underlying funds. |
I | Portfolio turnover rate excludes securities received or deliveredin-kind. |
J | Amount not annualized. |
See accompanying notes which are an integral part of the financial statements.
Annual Report | 70 |
Table of Contents
For the year ended July 31, 2019
1. Organization.
Fidelity Dividend ETF for Rising Rates, Fidelity High Dividend ETF, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF, FidelitySmall-Mid 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 anopen-end management investment company organized as a Massachusetts business trust.
2. Investments in Fidelity Central Funds.
The Funds invest in Fidelity Central Funds, which areopen-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Funds’ Schedules of Investments list each of the Fidelity Central Funds held as of year end, if any, as an investment of the Fund, but do 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 the investment adviser. Annualized expenses of the Money Market Central Funds as of their most recent shareholder report date ranged from less than .005% to .01%.
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 each Fund’s investments to the Fair Value Committee (the Committee) established by each 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. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments inopen-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
71 | Annual Report |
Table of Contents
Notes to Financial Statements – continued
3. Significant Accounting Policies – continued
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, 2019, 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 transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, 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 theex-dividend date, except for certain dividends from foreign securities where theex-dividend date may have passed, which are recorded as soon as the Funds are informed of theex-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 theex-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 theex-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. 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, 2019 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. A 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 fromin-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 theex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanentbook-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporarybook-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to redemptions in kind, partnerships, foreign currency transactions, capital loss carryforwards, losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows for each Fund:
Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) on securities and other investments | |||||||||||||
Fidelity Dividend ETF for Rising Rates | $ | 346,621,935 | $ | 33,360,327 | $ | (20,372,681 | ) | $ | 12,987,646 | |||||||
Fidelity High Dividend ETF | 353,532,317 | 24,220,032 | (15,618,621 | ) | 8,601,411 | |||||||||||
Fidelity Low Volatility Factor ETF | 223,961,704 | 24,093,249 | (1,430,604 | ) | 22,662,645 |
Annual Report | 72 |
Table of Contents
3. Significant Accounting Policies – continued
Tax cost | Gross unrealized appreciation | Gross unrealized depreciation | Net unrealized appreciation (depreciation) on securities and other investments | |||||||||||||
Fidelity Momentum Factor ETF | $ | 110,328,836 | $ | 13,236,097 | $ | (1,292,018 | ) | $ | 11,944,079 | |||||||
Fidelity Quality Factor ETF | 153,180,039 | 15,666,018 | (6,711,864 | ) | 8,954,154 | |||||||||||
FidelitySmall-Mid Factor ETF | 7,454,794 | 559,265 | (373,008 | ) | 186,257 | |||||||||||
Fidelity Value Factor ETF | 130,264,992 | 11,938,211 | (5,834,873 | ) | 6,103,338 |
Thetax-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 Dividend ETF for Rising Rates | $ | — | $ | (11,125,264 | ) | $ | 12,982,841 | |||||
Fidelity High Dividend ETF | — | (10,160,796 | ) | 8,590,651 | ||||||||
Fidelity Low Volatility Factor ETF | 165,601 | (2,127,965 | ) | 22,662,646 | ||||||||
Fidelity Momentum Factor ETF | 53,586 | (6,947,825 | ) | 11,944,079 | ||||||||
Fidelity Quality Factor ETF | 82,619 | (2,407,799 | ) | 8,954,154 | ||||||||
FidelitySmall-Mid Factor ETF | 3,743 | — | 186,257 | |||||||||
Fidelity Value Factor ETF | 144,212 | (3,299,075 | ) | 6,103,338 |
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 | $ | (10,147,107 | ) | $ | (978,157 | ) | $ | (11,125,264 | ) | |||
Fidelity High Dividend ETF | (8,400,022 | ) | (1,760,774 | ) | (10,160,796 | ) | ||||||
Fidelity Low Volatility Factor ETF | (1,861,196 | ) | (266,769 | ) | (2,127,965 | ) | ||||||
Fidelity Momentum Factor ETF | (6,947,825 | ) | — | (6,947,825 | ) | |||||||
Fidelity Quality Factor ETF | (1,964,586 | ) | (443,213 | ) | (2,407,799 | ) | ||||||
FidelitySmall-Mid Factor ETF | — | — | — | |||||||||
Fidelity Value Factor ETF | (2,755,459 | ) | (543,616 | ) | (3,299,075 | ) |
Certain of the Funds intend to elect to defer to the next fiscal year specified ordinary losses recognized during the period November 1, 2018 to July 31, 2019. Loss deferrals were as follows:
Ordinary Losses | ||||
Fidelity Dividend ETF for Rising Rates | $ | (19,193 | ) |
The tax character of distributions paid was as follows:
July 31, 2019 | ||||||||||||||||
Ordinary Income | Long-Term Capital Gain | Tax Return Of Capital | Total | |||||||||||||
Fidelity Dividend ETF for Rising Rates | $ | 12,908,350 | $ | — | $ | — | $ | 12,908,350 | ||||||||
Fidelity High Dividend ETF | 11,425,400 | — | — | 11,425,400 | ||||||||||||
Fidelity Low Volatility Factor ETF | 2,299,750 | — | — | 2,299,750 | ||||||||||||
Fidelity Momentum Factor ETF | 1,240,750 | — | — | 1,240,750 | ||||||||||||
Fidelity Quality Factor ETF | 2,135,800 | — | — | 2,135,800 | ||||||||||||
FidelitySmall-Mid Factor ETFA | 45,200 | — | — | 45,200 | ||||||||||||
Fidelity Value Factor ETF | 2,294,300 | — | — | 2,294,300 |
A | For the period February 26, 2019 (commencement of operations) to July 31, 2019. |
73 | Annual Report |
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Notes to Financial Statements – continued
3. Significant Accounting Policies – continued
July 31, 2018 | ||||||||||||||||
Ordinary Income | Long-Term Capital Gain | Tax Return Of Capital | Total | |||||||||||||
Fidelity Dividend ETF For Rising Rates | $ | 7,614,450 | $ | — | $ | — | $ | 7,614,450 | ||||||||
Fidelity High Dividend ETF | 4,072,329 | 2,421 | — | 4,074,750 | ||||||||||||
Fidelity Low Volatility Factor ETF | 793,800 | — | — | 793,800 | ||||||||||||
Fidelity Momentum Factor ETF | 688,250 | — | — | 688,250 | ||||||||||||
Fidelity Quality Factor ETF | 891,500 | — | — | 891,500 | ||||||||||||
FidelitySmall-Mid Factor ETF | — | — | — | — | ||||||||||||
Fidelity Value Factor ETF | 1,129,450 | — | — | 1,129,450 |
New Rule Issuance.During August 2018, the U.S. Securities and Exchange Commission issued Final Rule ReleaseNo. 33-10532, Disclosure Update and Simplification. This Final Rule includes amendments specific to registered investment companies that are intended to eliminate overlap in disclosure requirements between RegulationS-X and GAAP. In accordance with these amendments, certain line-items in the Fund’s financial statements have been combined or removed for the current period as outlined in the table below.
Financial Statement | Current Line-Item Presentation | Prior Line-Item Presentation | ||
Statement of Assets and Liabilities | Total distributable earnings (loss) | Undistributed/Distributions in excess of/ Accumulated net investment income (loss) Accumulated/Undistributed net realized gain (loss) Net unrealized appreciation (depreciation) | ||
Statement of Changes in Net Assets | N/A – removed | Undistributed/Distributions in excess of/ Accumulated net investment income (loss) end of period | ||
Statement of Changes in Net Assets | Distributions to shareholders | Distributions to shareholders from net investment income Distributions to shareholders from net realized gain |
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Funds’ investment objective allows the Funds to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange orover-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Funds used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Funds may not achieve their objectives.
The Funds’ use of derivatives increased or decreased its exposure to the following risk:
Equity risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Funds are also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Funds will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Funds. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statements of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Annual Report | 74 |
Table of Contents
4. Derivative Instruments – continued
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Funds used futures contracts to manage their exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts aremarked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statements of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statements of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption “Futures Contracts”. The notional amount at value reflects each contract’s exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Cash deposited to meet initial margin requirements is presented as segregated cash with brokers for derivative instruments in the Statements of Assets and Liabilities.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities andin-kind transactions, were as follows:
Purchases | Sales | |||||||
Fidelity Dividend ETF for Rising Rates | $ | 129,152,879 | $ | 128,401,046 | ||||
Fidelity High Dividend ETF | 139,067,148 | 133,756,483 | ||||||
Fidelity Low Volatility Factor ETF | 51,250,697 | 48,659,247 | ||||||
Fidelity Momentum Factor ETF | 141,300,142 | 140,507,557 | ||||||
Fidelity Quality Factor ETF | 37,310,576 | 36,671,200 | ||||||
FidelitySmall-Mid Factor ETF | 205,671 | 129,538 | ||||||
Fidelity Value Factor ETF | 36,195,207 | 35,167,603 |
Securities received or deliveredin-kind through subscriptions and redemptions were as follows:
In-kind Subscriptions | In-kind Redemptions | |||||||
Fidelity Dividend ETF for Rising Rates | $ | 159,024,109 | $ | 150,275,852 | ||||
Fidelity High Dividend ETF | 263,895,233 | 80,419,990 | ||||||
Fidelity Low Volatility Factor ETF | 201,638,225 | 46,408,709 | ||||||
Fidelity Momentum Factor ETF | 76,797,662 | 58,541,761 | ||||||
Fidelity Quality Factor ETF | 129,520,527 | 39,868,096 | ||||||
FidelitySmall-Mid Factor ETF | 7,385,041 | — | ||||||
Fidelity Value Factor ETF | 85,125,929 | 40,045,774 |
6. Fees and Other Transactions with Affiliates.
Management Fee. FMR Co., Inc. (FMRC) (the investment adviser) an affiliate of Fidelity Management & Research Company (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 miscellaneous expenses such as proxy and shareholder meeting expenses. For each Fund, with the exception of FidelitySmall-Mid Factor ETF, the management fee paid to FMRC is reduced by an amount equal to the fees and expenses paid by the fund to the independent Trustees.
Sub-Adviser. Geode Capital Management, LLC (Geode), serves assub-adviser for the Funds. Geode provides discretionary investment advisory services to the Funds and is paid by the investment 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. Prior to April 1, 2019, FSC had a separate agreement with certain Fund’s for administration of the security lending program, based on the number and duration of lending transactions.
75 | Annual Report |
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Notes to Financial Statements – continued
6. Fees and Other Transactions with Affiliates – continued
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the Funds, along with other registered investment companies having management contracts with FMR or other affiliated entities of FMR, may participate in an interfund lending program, This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, Fidelity High Dividend ETF has no interfund loans outstanding. Each applicable fund’s activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender | Average Loan Balance | Weighted Average Interest Rate | Interest Expense | |||||||||||||
Fidelity High Dividend ETF | Borrower | $ | 6,051,000 | 2.64 | % | $ | 2,216 |
Interfund Trades.The Funds may purchase from or sell securities to other funds affiliated with thesub-adviser under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule17a-7 of the 1940 Act. Interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note.
7. Security Lending.
Certain Funds lend portfolio securities from time to time in order to earn additional income. For equity securities, lending agents are used, including National Financial Services (NFS), an affiliate of the Funds. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of daily lending revenue, for its services as lending agent. The Funds may lend securities to certain qualified borrowers. 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. 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.
8. 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 year, these credits reduced management fees by the following amounts:
Amount | ||||
Fidelity Dividend ETF for Rising Rates | $ | 119 | ||
Fidelity High Dividend ETF | 142 | |||
Fidelity Low Volatility Factor ETF | 453 | |||
Fidelity Momentum Factor ETF | 281 | |||
Fidelity Quality Factor ETF | 209 | |||
Fidelity Value Factor ETF | 266 |
9. 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.
To the extent the Funds permit the contribution of securities in exchange for the purchase of shares (contributionin-kind), shares may be issued in advance of receipt by the Funds of all or a portion of the applicable deposit securities. In these circumstances, the Authorized Participant provides collateral to the custodian, on behalf of the Funds, in an amount up to 115% of the dailymark-to-market value of the deposit securities not yet received.
Annual Report | 76 |
Table of Contents
10. 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.
77 | Annual Report |
Table of Contents
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Covington Trust and Shareholders of Fidelity Dividend ETF for Rising Rates, Fidelity High Dividend ETF, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF, FidelitySmall-Mid Factor ETF and Fidelity Value Factor ETF:
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Fidelity High Dividend ETF, Fidelity Dividend ETF for Rising Rates, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF, FidelitySmall-Mid Factor ETF and Fidelity Value Factor ETF (seven of the funds constituting Fidelity Covington Trust, hereafter collectively referred to as the “Funds”) as of July 31, 2019, the related statements of operations for the periods listed in the table below, the statements of changes in net assets for each of the periods listed in the table below, including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of July 31, 2019, the results of each of their operations for the periods listed in the table below, the changes in each of their net assets for each of the periods listed in the table below and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Fund Name | Statement of operation | Statement of changes in net assets | ||
Fidelity High Dividend ETF | Year ended July 31, 2019 | Each of the two years in the period | ||
ended July 31, 2019 | ||||
Fidelity Dividend ETF for Rising Rates | Year ended July 31, 2019 | Each of the two years in the period ended ended July 31, 2019 | ||
Fidelity Low Volatility Factor ETF | Year ended July 31, 2019 | Each of the two years in the period | ||
ended ended July 31, 2019 | ||||
Fidelity Momentum Factor ETF | Year ended July 31, 2019 | Each of the two years in the period | ||
ended ended July 31, 2019 | ||||
Fidelity Quality Factor ETF | Year ended July 31, 2019 | Each of the two years in the period | ||
ended ended July 31, 2019 | ||||
FidelitySmall-Mid Factor ETF | Period February 26, 2019 (commencement | Period February 26, 2019 (commencement | ||
of operations) to July 31, 2019 | of operations) to July 31, 2019 | |||
Fidelity Value Factor ETF | Year ended July 31, 2019 | Each of the two years in the period | ||
ended ended July 31, 2019 |
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of July 31, 2019 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provides a reasonable basis for our opinions.
PricewaterhouseCoopers LLP
Boston, Massachusetts
September 17, 2019
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Annual Report | 78 |
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 Dividend ETF For Rising Rates
Period Ended July 31, 2019 | ||||||||||||
From commencement of operations* to July 31, 2019 | 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 | 191 | 26.42 | % | 499 | 69.01 | % | ||||||
25 – <50 | 1 | 0.14 | % | 30 | 4.15 | % | ||||||
50 – <75 | 0 | — | 1 | 0.14 | % | |||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 1 | 0.14 | % | |||||||
Total | 192 | 26.56 | % | 531 | 73.44 | % |
* | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
Fidelity High Dividend ETF
Period Ended July 31, 2019 | ||||||||||||
From commencement of operations* to July 31, 2019 | 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 | 103 | 14.24 | % | 543 | 75.10 | % | ||||||
25 – <50 | 2 | 0.28 | % | 72 | 9.96 | % | ||||||
50 – <75 | 0 | — | 1 | 0.14 | % | |||||||
75 – <100 | 0 | — | 2 | 0.28 | % | |||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 105 | 14.52 | % | 618 | 85.48 | % |
* | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
Fidelity Low Volatility Factor ETF
Period Ended July 31, 2019 | ||||||||||||
From commencement of operations* to July 31, 2019 | Closing Price Below NAV | Closing Price Above or Equal to NAV | ||||||||||
Basis Point Differential | Number of Days | % of Total Days | Number of Days | % of Total Days | ||||||||
0 – <25 | 228 | 31.53 | % | 483 | 66.81 | % | ||||||
25 – <50 | 7 | 0.97 | % | 5 | 0.69 | % | ||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 235 | 32.50 | % | 488 | 67.50 | % |
* | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
79 | Annual Report |
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Premium/Discount Analysis (Unaudited) – continued
Fidelity Momentum Factor ETF
Period Ended July 31, 2019 | ||||||||||||
From commencement of operations* to July 31, 2019 | 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 | 248 | 34.30 | % | 460 | 63.63 | % | ||||||
25 – <50 | 5 | 0.69 | % | 10 | 1.38 | % | ||||||
50 – <75 | 0 | — | 0 | — | ||||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 253 | 34.99 | % | 470 | 65.01 | % |
* | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
Fidelity Quality Factor ETF
Period Ended July 31, 2019 | ||||||||||||
From commencement of operations* to July 31, 2019 | 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 | 263 | 36.37 | % | 441 | 61.00 | % | ||||||
25 – <50 | 7 | 0.97 | % | 10 | 1.38 | % | ||||||
50 – <75 | 0 | — | 2 | 0.28 | % | |||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 0 | — | ||||||||
Total | 270 | 37.34 | % | 453 | 62.66 | % |
* | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
FidelitySmall-Mid Factor ETF
Period Ended July 31, 2019 | ||||||||||||
From commencement of operations* to July 31, 2019 | 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 | 53 | 49.53 | % | 48 | 44.87 | % | ||||||
25 – <50 | 2 | 1.87 | % | 2 | 1.87 | % | ||||||
50 – <75 | 0 | — | 1 | 0.93 | % | |||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100 or above | 0 | — | 1 | 0.93 | % | |||||||
Total | 55 | 51.40 | % | 52 | 48.60 | % |
* | From February 28, 2019, date initially listed on the NYSE ARCA exchange. |
Annual Report | 80 |
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Fidelity Value Factor ETF
Period Ended July 31, 2019 | ||||||||||||
From commencement of operations* to July 31, 2019 | 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 | 232 | 32.09 | % | 469 | 64.86 | % | ||||||
25 – <50 | 6 | 0.83 | % | 13 | 1.80 | % | ||||||
50 – <75 | 2 | 0.28 | % | 1 | 0.14 | % | ||||||
75 – <100 | 0 | — | 0 | — | ||||||||
100��or above | 0 | — | 0 | — | ||||||||
Total | 240 | 33.20 | % | 483 | 66.80 | % |
* | From September 15, 2016, date initially listed on the NYSE ARCA exchange. |
81 | 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. Except for Michael E. Wiley, each of the Trustees oversees 298 funds. Mr. Wiley oversees 197 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 leasttwo-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 atwo-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 funds’ Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at1-800-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. James C. Curvey 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. Ned C. Lautenbach 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 high income and certain equity funds, and other Boards oversee Fidelity’s investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the funds’ Board. 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.
Annual Report | 82 |
Table of Contents
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds’ activities and associated risks. The Board, acting through its committees, has charged SelectCo and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds’ business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because theday-to-day operations and activities of the funds are carried out by or through SelectCo, its affiliates, and other service providers, the funds’ exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board’s committees has responsibility for overseeing different aspects of the funds’ activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the funds’ Chief Compliance Officer (CCO), SelectCo’s internal auditor, the independent accountants, the funds’ Treasurer and portfolio management personnel, make periodic reports to the Board’s committees, as appropriate, including an annual review of Fidelity’s risk management program for the Fidelity® funds. 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+ |
James C. Curvey (1935) |
Year of Election or Appointment: 2018 |
Trustee |
Chairman of the Board of Trustees |
Mr. Curvey also serves as Trustee of other Fidelity® funds. Mr. Curvey is Vice Chairman (2007-present) and Director of FMR LLC (diversified financial services company). In addition, Mr. Curvey is an Overseer Emeritus for the Boston Symphony Orchestra, a Director of Artis-Naples, and a Trustee of Brewster Academy in Wolfeboro, New Hampshire. Previously, Mr. Curvey served as a Director of Fidelity Research & Analysis Co. (investment adviser firm, 2009-2018), Director of Fidelity Investments Money Management, Inc. (investment adviser firm, 2009-2014) and a Director of FMR and FMR Co., Inc. (investment adviser firms,2007-2014). |
* | Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with SelectCo. |
+ | The information includes the Trustee’s principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee’s qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund. |
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
Dennis J. Dirks (1948) |
Year of Election or Appointment: 2018 |
Trustee |
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College(2005-2008), as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008), as a member of the Independent Directors Council (IDC) Governing Council (2010-2015), and as a member of the Board of Directors for The Brookville Center for Children’s Services, Inc. (2009-2017). Mr. Dirks is a member of the Finance Committee(2016-present) and Board of Directors (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre. |
Donald F. Donahue (1950) |
83 | Annual Report |
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Trustees and Officers (Unaudited) – continued
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
Year of Election or Appointment: 2018 |
Trustee |
Mr. Donahue also serves as a Trustee 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). Previously, Mr. Donahue served as a Member of the Advisory Board of certain Fidelity® funds (2015-2018) and 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 (2007-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). |
Alan J. Lacy (1953) |
Year of Election or Appointment: 2018 |
Trustee |
Mr. Lacy also serves as Trustee of other Fidelity® funds. Mr. Lacy serves as a Director of Bristol-Myers Squibb Company (global pharmaceuticals, 2008-present). He is a Trustee of the California Chapter of The Nature Conservancy (2015-present) and a Director of the Center for Advanced Study in the Behavioral Sciences at Stanford University (2015-present). In addition, Mr. Lacy served as Senior Adviser (2007-2014) of Oak Hill Capital Partners, L.P. (private equity) and also served as Chief Executive Officer (2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation (retail) and Chief Executive Officer and Chairman of the Board of Sears, Roebuck and Co. (retail, 2000-2005). Previously, Mr. Lacy served as Chairman (2014-2017) and a member (2010-2017) of the Board of Directors of Dave & Buster’s Entertainment, Inc. (restaurant and entertainment complexes), as Chairman (2008-2011) and a member (2006-2015) of the Board of Trustees of the National Parks Conservation Association, and as a member of the Board of Directors for The Hillman Companies, Inc. (hardware wholesalers, 2010-2014), Earth Fare, Inc. (retail grocery, 2010-2014), and The Western Union Company (global money transfer, 2006-2011). |
Ned C. Lautenbach (1944) |
Year of Election or Appointment: 2018 |
Trustee |
Chairman of the Independent Trustees |
Mr. Lautenbach also serves as Trustee of other Fidelity® funds. Mr. Lautenbach currently serves as Chair (2018-present) and Member (2013-present) of the Board of Governors, State University System of Florida and is a member of the Council on Foreign Relations (1994-present). He is also a member and has most recently served as Chairman of the Board of Directors of Artis-Naples(2012-present). Previously, Mr. Lautenbach served as a member and then Lead Director of the Board of Directors of Eaton Corporation (diversified industrial, 1997-2016). He was also a Partner and Advisory Partner at Clayton, Dubilier & Rice, LLC (private equity investment, 1998-2010), as well as a Director of Sony Corporation (2006-2007). In addition, Mr. Lautenbach also had a 30-year career with IBM (technology company) during which time he served as Senior Vice President and a member of the Corporate Executive Committee (1968-1998). |
Joseph Mauriello (1944) |
Year of Election or Appointment: 2018 |
Trustee |
Mr. Mauriello also serves as Trustee of other Fidelity® funds. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Independent Directors Council (IDC) Governing Council (2015-present). Previously, Mr. Mauriello served as a member of the Board of Directors of XL Group plc. (global insurance and re-insurance, 2006-2018). |
Cornelia M. Small (1944) |
Year of Election or Appointment: 2018 |
Annual Report | 84 |
Table of Contents
Name, Year of Birth; Principal Occupations and Other Relevant Experience+ |
Trustee |
Ms. Small also serves as Trustee of other Fidelity® funds. Ms. Small is a member of the Board of Directors (2009-present) and Chair of the Investment Committee (2010-present) of the Teagle Foundation. Ms. Small also serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson (2002-2008) and a member of the Investment Committee and Chairperson (2008-2012) and a member of the Board of Trustees of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments. |
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). |
David M. Thomas (1949) |
Year of Election or Appointment: 2018 |
Trustee |
Mr. Thomas also serves as Trustee of other Fidelity® funds. Mr. Thomas serves as Non-Executive Chairman of the Board of Directors of Fortune Brands Home and Security (home and security products, 2011-present) and as a member of the Board of Directors (2004-present) and Presiding Director (2013-present) of Interpublic Group of Companies, Inc. (marketing communication). Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions), a Director of Fortune Brands, Inc. (consumer products,2000-2011), and a member of the Board of Trustees of the University of Florida (2013-2018). |
Michael E. Wiley (1950) |
Year of Election or Appointment: 2013 |
Trustee |
Mr. Wiley also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Wiley serves as a Director of High Point Resources (exploration and production, 2005-present). Previously, Mr. Wiley served as a Director of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a Director of Andeavor Logistics LP (natural resources logistics, 2015-2018), a Director of Post Oak Bank (privately-held bank, 2004-2018), a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-2013), a member of the Board of Trustees of the University of Tulsa (2000-2006;2007-2010), a Senior Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), an Advisory Director of Riverstone Holdings (private investment), a Director of Spinnaker Exploration Company (exploration and production, 2001-2005) and Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). |
+ | 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. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation |
Vicki L. Fuller (1957) |
Year of Election or Appointment: 2018 |
85 | Annual Report |
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Trustees and Officers (Unaudited) – continued
Name, Year of Birth; Principal Occupation |
Member of the Advisory Board |
Ms. Fuller also serves as Member of the Advisory Board of other Fidelity® funds. Ms. Fuller serves as a member of the Board of Directors, Audit Committee, and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-present). Previously, Ms. Fuller served as the Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager(2001-2006). |
Peter S. Lynch (1944) |
Year of Election or Appointment: 2018 |
Member of the Advisory Board |
Mr. Lynch also serves as Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of FMR (investment adviser firm) and FMR Co., Inc. (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006). |
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. |
Craig S. Brown (1977) |
Year of Election or Appointment: 2019 |
Assistant Treasurer |
Mr. Brown also serves as Assistant Treasurer of other funds. Mr. Brown is an employee of Fidelity Investments(2013-present). |
John J. Burke III (1964) |
Year of Election or Appointment: 2018 |
Chief Financial Officer |
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018). |
William C. Coffey (1969) |
Year of Election or Appointment: 2018 |
Secretary and Chief Legal Officer (CLO) |
Mr. Coffey also serves as Secretary and CLO of other funds. Mr. Coffey serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-present); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms,2018-present); and CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-present). 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 Assistant Secretary of certain funds (2009-2018) and as Vice President and Associate General Counsel of FMR LLC (2005-2009). |
Timothy M. Cohen (1969) |
Year of Election or Appointment: 2018 |
Vice President |
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen serves as Executive Vice President of Fidelity SelectCo, LLC(2019-present), Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as Head of Global Equity Research(2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017). |
Jonathan Davis (1968) |
Annual Report | 86 |
Table of Contents
Name, Year of Birth; Principal Occupation |
Year of Election or Appointment: 2010 |
Assistant Treasurer |
Mr. Davis also serves as Assistant Treasurer of other funds. Mr. Davis serves as Assistant Treasurer of FMR Capital, Inc.(2017-present) 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: 2018 |
Assistant Treasurer |
Mr. Deberghes also serves as an officer of other funds. He serves as Assistant Treasurer of FMR Capital, Inc.(2017-present), Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm,2016-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as President and Treasurer of certain Fidelity® funds (2013-2018). 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. |
Laura M. Del Prato (1964) |
Year of Election or Appointment: 2018 |
Assistant Treasurer |
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is an employee of Fidelity Investments (2017-present). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds(2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012). |
Colm A. Hogan (1973) |
Year of Election or Appointment: 2018 |
Deputy Treasurer |
Mr. Hogan also serves as an officer of other funds. Mr. Hogan serves as Assistant Treasurer of FMR Capital, Inc.(2017-present) and is an employee of Fidelity Investments (2005-present). Previously, Mr. Hogan served as Assistant Treasurer of certain Fidelity® funds (2016-2018). |
Pamela R. Holding (1964) |
Year of Election or Appointment: 2018 |
Vice President |
Ms. Holding also serves as Vice President of other funds. Ms. Holding serves as Executive Vice President of Fidelity SelectCo, LLC (2019-present), Co-Head of Equity (2018-present) and is an employee of Fidelity Investments(2013-present). Previously, Ms. Holding served as Chief Investment Officer of Fidelity Institutional Asset Management(2013-2018). |
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, serves as Assistant Treasurer of FMR Capital, Inc. (2017-present), 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). |
Kenneth B. Robins (1969) |
Year of Election or Appointment: 2018 |
Chief Compliance Officer |
Mr. Robins also serves as an officer of other funds. Mr. Robins serves as Compliance Officer of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2016-present) and is an employee of Fidelity Investments (2004-present). Previously, Mr. Robins served as Executive Vice President of Fidelity Investments Money Management, Inc. (investment adviser firm, 2013-2016) and served in other fund officer roles. |
Stacie M. Smith (1974) |
Year of Election or Appointment: 2018 |
87 | Annual Report |
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Trustees and Officers (Unaudited) – continued
Name, Year of Birth; Principal Occupation |
President and Treasurer |
Ms. Smith also serves as an officer of other funds. Ms. Smith serves as Assistant Treasurer of FMR Capital, Inc.(2017-present), 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 Assistant Treasurer (2013-2018) and Deputy Treasurer (2013-2016) of certain Fidelity® funds. |
Marc L. Spector (1972) |
Year of Election or Appointment: 2017 |
Assistant Treasurer |
Mr. Spector also serves as an officer of other funds. Mr. Spector serves as Assistant Treasurer of FMR Capital, Inc.(2017-present) and 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). |
Jim Wegmann (1979) |
Year of Election or Appointment: 2019 |
Assistant Treasurer |
Mr. Wegmann also serves as Assistant Treasurer of other funds. Mr. Wegmann is an employee of Fidelity Investments(2011-present). |
Annual Report | 88 |
Table of Contents
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 actual expense Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (February 1, 2019 to July 31, 2019) for Fidelity Dividend ETF for Rising Rates, Fidelity High Dividend ETF, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF and Fidelity Value Factor ETF and for the period (February 26, 2019 to July 31, 2019) for FidelitySmall-Mid Factor ETF. The hypothetical expense Example is based on an investment of $1,000 invested for theone-half year period (February 1, 2019 to July 31, 2019).
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 itspro-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 itspro-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 | Ending Account Value July 31, 2019 | Expenses Paid During Period | |||||||||||||
Fidelity Dividend ETF For Rising Rates | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,076.80 | $ | 1.49 | B | |||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,023.36 | $ | 1.45 | D | |||||||||
Fidelity High Dividend ETF | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,049.70 | $ | 1.47 | B | |||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,023.36 | $ | 1.45 | D | |||||||||
Fidelity Low Volatility Factor ETF | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,141.30 | $ | 1.54 | B | |||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,023.36 | $ | 1.45 | D | |||||||||
Fidelity Momentum Factor ETF | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,118.70 | $ | 1.52 | B | |||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,023.36 | $ | 1.45 | D | |||||||||
Fidelity Quality Factor ETF | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,101.70 | $ | 1.51 | B | |||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,023.36 | $ | 1.45 | D | |||||||||
FidelitySmall-Mid Factor ETF | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,033.50 | $ | 1.26 | B | |||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,020.13 | $ | 1.25 | D |
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Shareholder Expense Example (Unaudited) – continued
Annualized Expense RatioA | Beginning Account Value | Ending Account Value July 31, 2019 | Expenses Paid During Period | |||||||||||||
Fidelity Value Factor ETF | 0.29% | |||||||||||||||
Actual | $ | 1,000.00 | $ | 1,074.80 | $ | 1.49 | B | |||||||||
HypotheticalC | $ | 1,000.00 | $ | 1,023.36 | $ | 1.45 | D |
A | Annualized expense ratio reflects expenses net of applicable fee waivers. |
B | Actual expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period) for Fidelity Dividend ETF for Rising Rates, Fidelity High Dividend ETF, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF and Fidelity Value Factor ETF and multiplied by 156/365 (to reflect the period February 26, 2019 to July 31, 2019) for FidelitySmall-Mid Factor ETF. |
C | 5% return per year before expenses. |
D | Hypothetical expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect theone-half year period). |
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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 2018 | December 2018 | March 2019 | June 2019 | |||||||||||||
Fidelity Dividend ETF for Rising Rates | 75 | % | 75 | % | 100 | % | 100 | % | ||||||||
Fidelity High Dividend ETF | 56 | % | 56 | % | 92 | % | 92 | % | ||||||||
Fidelity Low Volatility Factor ETF | 91 | % | 91 | % | 100 | % | 100 | % | ||||||||
Fidelity Momentum Factor ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity Quality Factor ETF | 97 | % | 97 | % | 100 | % | 100 | % | ||||||||
FidelitySmall-Mid Factor ETF | — | — | 76 | % | 76 | % | ||||||||||
Fidelity Value Factor 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 2018 | December 2018 | March 2019 | June 2019 | |||||||||||||
Fidelity Dividend ETF for Rising Rates | 84 | % | 84 | % | 100 | % | 100 | % | ||||||||
Fidelity High Dividend ETF | 59 | % | 59 | % | 100 | % | 100 | % | ||||||||
Fidelity Low Volatility Factor ETF | 99 | % | 99 | % | 100 | % | 100 | % | ||||||||
Fidelity Momentum Factor ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Fidelity Quality Factor ETF | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
FidelitySmall-Mid Factor ETF | — | — | 81 | % | 81 | % | ||||||||||
Fidelity Value Factor ETF | 100 | % | 100 | % | 100 | % | 100 | % |
The funds will notify shareholders in January 2020 of amounts for use in preparing 2019 income tax returns.
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Board Approval of Investment Advisory Contracts and Management Fees
FidelitySmall-Mid Factor ETF
On November 14, 2018, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve the management contract with FMR Co., Inc. (FMRC) and thesub-advisory agreement with Geode Capital Management, LLC (Geode) (together, the Advisory Contracts) for the fund. FMRC and Geode are collectively referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees’ counsel, considered a broad range of information.
At the March 2019 meeting, the Board ratified an amended and restatedsub-advisory agreement with Geode for the fund that lowered thesub-advisory fee rate that FMRC pays to Geode, on behalf of the fund, by 0.5 basis points (effective November 14, 2018).
Nature, Extent, and Quality of Services Provided. The Board considered staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity and Geode, and also considered the fund’s investment objectives, strategies, and related investment philosophies.
Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity’s and Geode’s investment staffs, including their size, education, experience, and resources, as well as Fidelity’s approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity has continued to increase the resources devoted tonon-U.S. offices, including expansion of Fidelity’s global investment organization. Additionally, in its deliberations, the Board considered Fidelity’s and Geode’s trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered the nature, extent, quality, and cost of advisory, administrative, and shareholder services to be performed by the Investment Advisers, and their affiliates and a third party service provider under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund. The Board also considered the nature and extent of the supervision of third party service providers.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include24-hour access to account information and market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the expanded availability of Fidelity Investor Centers.
Investment Performance. The fund is a new fund and therefore had no historical performance for the Board to review at the time it approved the fund’s Advisory Contracts. The Board considered Geode’s experience in managing certain existing Fidelity factor-based ETFs, equity index and enhanced index mutual funds.
Based on its review, the Board concluded that the nature, extent, and quality of services to be provided to the fund under the Advisory Contracts should benefit the shareholders of the fund.
Competitiveness of Management Fee and Total Expense Ratio.The Board considered the fund’s proposed management fee and projected total expense ratio in reviewing the Advisory contracts, and the fact that the management contract provides that FMRC will be responsible for paying all operating expenses of the fund with the exception of fees and expenses of the Independent Trustees, interest, taxes, proxy and shareholder meeting expenses, andnon-recurring expenses. The Board noted that the fund’s proposed management fee rate is lower than the median fee rate of funds with similar Lipper investment objective categories and comparable investment mandates, regardless of whether their management fee structures are comparable. The Board also considered that the projected total expense ratio of the fund is below the median of those funds and classes used by the Board for management fee comparisons.
In its review of the proposedsub-advisory fee rate under the amended and restatedsub-advisory agreement with Geode on behalf of the fund, the Board noted that FMRC, not the fund, pays Geode’ssub-advisory fee out of its management fee. The Board considered that the amended and restatedsub-advisory agreements will not result in any changes to the current management fee rate under the fund’s management contract with FMRC or total expenses paid by the shareholders of the fund. The Board noted that the fund’s management fee rate and total expense ratio will continue to rank below the median of its competitor funds based on competitive mapped group data provided to the Board in connection with the approval of the management contract with FMRC andsub-advisory agreement with Geode at its November 2018 meeting.
Based on its review, the Board concluded that the fund’s management fee and projected total expense ratio were reasonable in light of the services that the fund and its shareholders will receive and the other factors considered.
Costs of the Services and Profitability.The fund is a new fund and therefore no revenue, cost, or profitability data was available for the Board to review in respect of each fund at the time it approved the Advisory Contracts. In connection with its future renewal of the fund’s Advisory Contracts, the Board will consider the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and servicing the fund’s shareholders.
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Economies of Scale. The Board will consider economies of scale when there is operating experience to permit assessment thereof. It noted that, notwithstanding the entrepreneurial risk associated with a new fund, the management fee was at a level normally associated, by comparison with competitors, with very high fund net assets, and Fidelity asserted to the Board that the level of the fee anticipated economies of scale at lower asset levels even before, if ever, economies of scale are achieved. The Board also noted that the fund and its shareholders would have access to the very considerable number and variety of services available through Fidelity and its affiliates.
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board concluded that the advisory andsub-advisory fee structures are fair and reasonable, and that the fund’s Advisory Contracts should be approved.
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CPF-ANN-0919 1.9881294.102 | 899572.1.0
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Item 2. | Code of Ethics |
As of the end of the period, July 31, 2019, Fidelity Covington Trust (the trust) has adopted a code of ethics, as defined in Item 2 of FormN-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 FormN-CSR.
Item 3. | Audit Committee Financial Expert |
The Board of Trustees of the trust has determined that Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of FormN-CSR. Mr. Mauriello is independent for purposes of Item 3 of FormN-CSR.
Item 4. | Principal Accountant Fees and Services |
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity MSCI Communication Services Index ETF, 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 and Fidelity MSCI Utilities Index ETF:
Services Billed by Deloitte Entities
July 31, 2019 FeesA
Audit Fees | Audit- Related Fees | Tax Fees | All Other Fees | |||||||||||||
Fidelity MSCI Communication Services Index ETF | $ | 15,000 | $ | — | $ | 2,500 | $ | 200 | ||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 15,000 | $ | — | $ | 2,500 | $ | 200 | ||||||||
Fidelity MSCI Consumer Staples Index ETF | $ | 15,000 | $ | — | $ | 2,500 | $ | 200 | ||||||||
Fidelity MSCI Energy Index ETF | $ | 15,000 | $ | — | $ | 2,500 | $ | 200 | ||||||||
Fidelity MSCI Financials Index ETF | $ | 15,000 | $ | — | $ | 2,500 | $ | 200 | ||||||||
Fidelity MSCI Health Care Index ETF | $ | 15,000 | $ | — | $ | 2,500 | $ | 200 | ||||||||
Fidelity MSCI Industrials Index ETF | $ | 15,000 | $ | — | $ | 2,500 | $ | 200 | ||||||||
Fidelity MSCI Information Technology Index ETF | $ | 15,000 | $ | — | $ | 2,500 | $ | 200 | ||||||||
Fidelity MSCI Materials Index ETF | $ | 15,000 | $ | — | $ | 2,500 | $ | 200 | ||||||||
Fidelity MSCI Real Estate Index ETF | $ | 15,000 | $ | — | $ | 2,500 | $ | 200 | ||||||||
Fidelity MSCI Utilities Index ETF | $ | 15,000 | $ | — | $ | 2,500 | $ | 200 |
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July 31, 2018 FeesA
Audit Fees | Audit- Related Fees | Tax Fees | All Other Fees | |||||||||||||
Fidelity MSCI Communication Services Index ETF | $ | 14,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Consumer Discretionary Index ETF | $ | 14,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Consumer Staples Index ETF | $ | 14,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Energy Index ETF | $ | 14,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Financials Index ETF | $ | 14,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Health Care Index ETF | $ | 14,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Industrials Index ETF | $ | 14,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Information Technology Index ETF | $ | 14,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Materials Index ETF | $ | 14,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Real Estate Index ETF | $ | 14,000 | $ | — | $ | 2,500 | $ | — | ||||||||
Fidelity MSCI Utilities Index ETF | $ | 14,000 | $ | — | $ | 2,500 | $ | — |
A | Amounts may reflect rounding. |
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The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to Fidelity Dividend ETF for Rising Rates, Fidelity High Dividend ETF, Fidelity Low Volatility Factor ETF, Fidelity Momentum Factor ETF, Fidelity Quality Factor ETF, FidelitySmall-Mid Factor ETF and Fidelity Value Factor ETF (together with the funds in the previous table, the “Funds”):
Services Billed by PwC
July 31, 2019 FeesA,B
Audit Fees | Audit- Related Fees | Tax Fees | All Other Fees | |||||||||||||
Fidelity Dividend ETF for Rising Rates | $ | 16,000 | $ | — | $ | 2,000 | $ | 600 | ||||||||
Fidelity High Dividend ETF | $ | 16,000 | $ | — | $ | 2,000 | $ | 600 | ||||||||
Fidelity Low Volatility Factor ETF | $ | 16,000 | $ | — | $ | 1,800 | $ | 600 | ||||||||
Fidelity Momentum Factor ETF | $ | 16,000 | $ | — | $ | 1,800 | $ | 600 | ||||||||
Fidelity Quality Factor ETF | $ | 16,000 | $ | — | $ | 1,800 | $ | 600 | ||||||||
FidelitySmall-Mid Factor ETF | $ | 11,000 | $ | — | $ | 2,300 | $ | 200 | ||||||||
Fidelity Value Factor ETF | $ | 16,000 | $ | — | $ | 1,800 | $ | 600 |
July 31, 2018 FeesA,B
Audit Fees | Audit- Related Fees | Tax Fees | All Other Fees | |||||||||||||
Fidelity Dividend ETF for Rising Rates | $ | 15,000 | $ | — | $ | 2,000 | $ | 600 | ||||||||
Fidelity High Dividend ETF | $ | 15,000 | $ | — | $ | 2,000 | $ | 600 | ||||||||
Fidelity Low Volatility Factor ETF | $ | 15,000 | $ | — | $ | 1,800 | $ | 600 | ||||||||
Fidelity Momentum Factor ETF | $ | 15,000 | $ | — | $ | 1,800 | $ | 600 | ||||||||
Fidelity Quality Factor ETF | $ | 15,000 | $ | — | $ | 1,800 | $ | 600 | ||||||||
FidelitySmall-Mid Factor ETF | $ | — | $ | — | $ | — | $ | — | ||||||||
Fidelity Value Factor ETF | $ | 15,000 | $ | — | $ | 1,800 | $ | 600 |
A | Amounts may reflect rounding. |
B | FidelitySmall-Mid Factor ETF commenced operations on February 26, 2019. |
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The following table presents 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 Management & Research Company (“FMR”) and entities controlling, controlled by, or under common control with FMR (not including anysub-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, 2019A | July 31, 2018A | |||||||
Audit-Related Fees | $ | 290,000 | $ | 5,000 | ||||
Tax Fees | $ | — | $ | 5,000 | ||||
All Other Fees | $ | — | $ | — |
A | Amounts may reflect rounding. |
Services Billed by PwC
July 31, 2019A,B | July 31, 2018A,B | |||||||
Audit-Related Fees | $ | 7,775,000 | $ | 7,745,000 | ||||
Tax Fees | $ | 10,000 | $ | 20,000 | ||||
All Other Fees | $ | — | $ | — |
A | Amounts may reflect rounding. |
B | May include amounts billed prior to the FidelitySmall-Mid Factor ETF’s commencement of operations. |
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund’s financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
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The aggregatenon-audit fees billed by Deloitte Entities and PwC for services rendered to the Funds, FMR (not including anysub-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, 2019A,B | July 31, 2018A,B | ||||||
Deloitte Entities | $ | 730,000 | $ | 380,000 | ||||
PwC | $ | 12,270,000 | $ | 10,915,000 |
A | Amounts may reflect rounding. |
B | May include amounts billed prior to the FidelitySmall-Mid Factor ETF’s commencement of operations. |
The trust’s audit committee (the “Audit Committee”) has considerednon-audit services that were notpre-approved that were provided by Deloitte Entities and PwC to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities and PwC in their audits of the Funds, taking into account representations from Deloitte Entities and PwC, in accordance with Public Company Accounting Oversight Board rules, regarding their independence from the Funds and their related entities and FMR’s review of the appropriateness and permissibility under applicable law of suchnon-audit services prior to their provision to the Fund Service Providers.
Audit CommitteePre-Approval Policies and Procedures
The Audit Committee mustpre-approve all audit andnon-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 ornon-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 ofnon-audit services by the audit firms that audit the Funds. The policies and procedures require that anynon-audit service provided by a fund audit firm to a Fund and anynon-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.
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All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fund are reported to the Audit Committee periodically.
Non-Audit Services Approved Pursuant to Rule2-01(c)(7)(i)(C) and (ii) of RegulationS-X (“De Minimis Exception”)
There were nonon-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, 2019, the members of the Audit Committee were Joseph Mauriello, Don Donahue, Alan Lacy and Michael Wiley.
Item 6. | Investments |
(a) | Not applicable. |
(b) | Not applicable |
Item 7. | Disclosure of Proxy Voting Policies and Procedures forClosed-End Management Investment Companies |
Not applicable.
Item 8. | Portfolio Managers ofClosed-End Management Investment Companies |
Not applicable.
Item 9. | Purchase of Equity Securities byClosed-End Management Investment Company and Affiliated Purchasers |
Not applicable.
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Item 10. | Submission of Matters to a Vote of Security Holders |
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 11. | Controls and Procedures |
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the 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. | Disclosure of Securities Lending Activities forClosed-End ManagementInvestment Companies |
Not applicable.
Item 13. | Exhibits |
(a) | (1) | Code of Ethics pursuant to Item 2 of FormN-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/ Stacie M. Smith | |
Stacie M. Smith | ||
President and Treasurer | ||
Date: | September 24, 2019 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ Stacie M. Smith | |
Stacie M. Smith | ||
President and Treasurer | ||
Date: | September 24, 2019 | |
By: | /s/ John J. Burke III | |
John J. Burke III | ||
Chief Financial Officer | ||
Date: | September 24, 2019 |