This
example
helps compare the cost of investing in the fund with the cost of investing in
other funds.
Let's say, hypothetically, that the annual return for shares
of the fund is 5% and that the fees and the annual operating expenses for shares
of the fund are exactly as described in the fee table. This example illustrates
the effect of fees and expenses, but is not meant to suggest actual or expected
fees and expenses or returns, all of which may vary. For every $10,000 you
invested, here's how much you would pay in total expenses if you sell all of
your shares at the end of each time period indicated:
1
year |
$ |
56 |
3
years |
$ |
176 |
5
years |
$ |
307 |
10
years |
$ |
689 |
Portfolio
Turnover
The
fund pays transaction costs, such as commissions, when it buys and sells
securities (or "turns over" its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
annual operating expenses or in the example, affect the fund's performance. For
the period from January 24, 2023 to August 31, 2023, the fund's portfolio
turnover rate was 46%
(annualized) of the average value of its portfolio.
Principal
Investment Strategies
- Normally
investing at least 80% of assets in debt securities of all types and
repurchase agreements for those securities.
- Allocating
assets across the full spectrum of the debt market, including investment-grade
(those of medium and high quality), high yield and emerging markets debt
securities across different maturities. Investments will normally include U.S.
government securities (including Treasury securities), investment-grade
corporate and other debt, lower-quality debt securities (those of less than
investment-grade quality, also referred to as high yield debt securities or
junk bonds), investment-grade securitized debt securities, floating rate loans
and other floating rate securities, inflation-protected debt securities,
hybrid and preferred securities, contingent convertible securities, and
securities of foreign issuers, including securities of issuers located in
emerging markets. Emerging markets include countries that have an emerging
stock market as defined by MSCI, countries or markets with low- to
middle-income economies as classified by the World Bank, and other countries
or markets that the Adviser identifies as having similar emerging markets
characteristics.
- Investing
in both U.S. dollar-denominated and non-U.S. dollar-denominated securities,
and generally hedging the fund's foreign currency exposures utilizing forward
foreign currency exchange contracts.
- Investing
in collateralized loan obligations.
- Analyzing
the credit quality of the issuer, security-specific features, current and
potential future valuation, and trading opportunities to select
investments.
- Engaging
in transactions that have a leveraging effect on the fund, including
investments in derivatives - such as swaps (interest rate, total return, and
credit default), options, and futures contracts - and forward-settling
securities, to adjust the fund's risk exposure.
Principal
Investment Risks
- Impairment
of Collateral.
A
floating rate loan may not be fully collateralized which may cause the floating
rate loan to decline significantly in value.
- Floating
Rate Loan Liquidity.
Floating
rate loans generally are subject to restrictions on resale. Floating rate loans
sometimes trade infrequently in the secondary market. As a result, valuing a
floating rate loan can be more difficult, and buying and selling a floating rate
loan at an acceptable price can be more difficult or delayed, including extended
trade settlement periods. Difficulty in selling a floating rate loan can result
in a loss.
Interest
rate increases can cause the price of a debt security to decrease.
- Foreign
and Emerging Markets Risk.
Foreign
markets, particularly emerging markets, can be more volatile than the U.S.
market due to increased risks of adverse issuer, political, regulatory, market,
or economic developments and can perform differently from the U.S.
market.
The
extent of economic development; political stability; market depth,
infrastructure, and capitalization; and regulatory oversight can be less than in
more developed markets. Emerging markets typically have less established legal,
accounting and financial reporting systems than those in more developed markets,
which may reduce the scope or quality of financial information available to
investors.
Emerging
markets can be subject to greater social, economic, regulatory, and political
uncertainties and can be extremely volatile.
Foreign
exchange rates also can be extremely volatile.
- Foreign
Currency Transactions.
Although
a forward foreign currency exchange contract is used to reduce or hedge a fund's
exposure to changes in the value of the currency, suitable hedging transactions
may not be available in all circumstances, may not be successful, and may
eliminate any chance for the fund to benefit from favorable fluctuations in
relevant foreign currencies.
The
ability of an issuer of a debt security to repay principal prior to a security's
maturity can cause greater price volatility if interest rates
change.
The
value of an individual security or particular type of security can be more
volatile than, and can perform differently from, the market as a
whole.
A
decline in the credit quality of an issuer or a provider of credit support or a
maturity-shortening structure for a security can cause the price of a security
to decrease.
Lower-quality
debt securities (those of less than investment-grade quality, also referred to
as high yield debt securities or junk bonds) and certain types of other
securities involve greater risk of default or price changes due to changes in
the credit quality of the issuer. The value of lower-quality debt securities and
certain types of other securities can be more volatile due to increased
sensitivity to adverse issuer, political, regulatory, market, or economic
developments and can be difficult to resell.
Investments
in covenant-lite loans carry more risk than traditional loans as they allow
issuers to engage in activities that would otherwise be difficult or impossible
under a traditional loan agreement. In the event of default, covenant-lite
obligations have lower recovery values as the lender may not have the
opportunity to negotiate with the borrower prior to default.
CLO
tranches can experience substantial losses due to actual and anticipated
defaults, as well as aversion to CLO securities as a class.
- Fluctuation
of Net Asset Value and Share Price.
The
net asset value per share (NAV) of the fund will generally fluctuate with
changes in the market value of the fund's holdings. The fund's shares can be
bought and sold in the secondary market at market prices. Disruptions to
creations and redemptions, the existence of extreme market volatility or
potential lack of an active trading market for the fund's shares may result in
the fund's shares trading significantly above (at a premium) or below (at a
discount) to NAV.
Given
the nature of the relevant markets for certain of the fund's securities, shares
may trade at a larger premium or discount to the NAV than shares of other
ETFs.
In
addition, in stressed market conditions or periods of market disruption or
volatility, the market for shares may become less liquid in response to
deteriorating liquidity in the markets for the fund's underlying portfolio
holdings.
- Contingent
Convertible Securities Risk.
Contingent
convertible securities have unique equity conversion or principal write-down
features that involve additional risks, which may include cancellation of
interest payments by the issuer or a regulatory authority; subordination to
other creditors due to either a liquidation or other bankruptcy-related event or
a conversion of the security from debt to equity; and a write-down of the
security's principal amount.
There
can be no assurance that an active trading market will be maintained. Market
makers and Authorized Participants are not obligated to make a market in the
fund's shares or to submit purchase and redemption orders for creation units. In
addition, trading may be halted, for example, due to market
conditions.
Leverage
can increase market exposure, magnify investment risks, and cause losses to be
realized more quickly.
Unlike
certain ETFs, the fund may effect some or all creations and redemptions using
cash, rather than in-kind securities. As a result, an investment in the fund may
be less tax-efficient than an investment in an ETF that distributes portfolio
securities entirely in-kind.
- Inflation-Protected
Debt Exposure.
Increases
in real interest rates can cause the price of inflation-protected debt
securities to decrease. Interest payments on inflation-protected debt securities
can be unpredictable.
An
investment in the fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. You
could lose money by investing in the fund.
Unlike
individual debt securities, which typically pay principal at maturity, the value
of an investment in the fund will fluctuate.
Performance
Performance
history will be available for the fund after the fund has been in operation for
one calendar year.
Investment
Adviser
Fidelity
Management & Research Company LLC (FMR) (the Adviser) is the fund's manager.
Other investment advisers serve as sub-advisers for the fund.
Portfolio
Manager(s)
Benjamin
Harrison (Co-Portfolio Manager) has managed the fund since 2023.
Jeff
Moore (Co-Portfolio Manager) has managed the fund since 2023.
Michael
Plage (Co-Portfolio Manager) has managed the fund since 2023.
Purchase
and Sale of Shares
Shares
of the fund are listed and traded on an exchange, and individual fund shares may
only be bought and sold in the secondary market through a broker or dealer at
market price. These transactions, which do not involve the fund, are made at
market prices that may vary throughout the day, rather than at NAV. Shares of
the fund may trade at a price greater than the fund's NAV (premium) or less than
the fund's NAV (discount). An investor may incur costs attributable to the
difference between the highest price a buyer is willing to pay to purchase
shares (bid) and the lowest price a seller is willing to accept for shares (ask)
when buying or selling fund shares in the secondary market (the "bid-ask
spread"). Recent information, including information regarding the fund's NAV,
market price, premiums and discounts, and bid-ask spread, is available at
www.fidelity.com.
Tax
Information
Distributions
you receive from the fund are subject to federal income tax and generally will
be taxed as ordinary income or capital gains, and may also be subject to state
or local taxes, unless you are investing through a tax-advantaged retirement
account (in which case you may be taxed later, upon withdrawal of your
investment from such account).
Payments
to Broker-Dealers and Other Financial Intermediaries
The
fund, the Adviser, Fidelity Distributors Company LLC (FDC), and/or their
affiliates may pay intermediaries, which may include banks, broker-dealers,
retirement plan sponsors, administrators, or service-providers (who may be
affiliated with the Adviser or FDC), for the sale of fund shares and related
services. These payments may create a conflict of interest by influencing your
intermediary and your investment professional to recommend the fund over another
investment. Ask your investment professional or visit your intermediary's web
site for more information.
Fund
Basics
Investment
Objective
Fidelity®
Tactical Bond ETF seeks a high level of current income. Growth of capital may
also be considered.
Principal
Investment Strategies
The
Adviser normally invests at least 80% of the fund's assets in debt securities of
all types and repurchase agreements for those securities. The Adviser has the
flexibility to allocate the fund's assets across the full spectrum of the debt
market, including investment-grade (those of medium and high quality), high
yield and emerging market debt securities across different maturities. The
fund's investments will normally include U.S. government securities (including
Treasury securities), investment-grade corporate and other debt, lower-quality
debt securities (those of less than investment-grade quality, also referred to
as high yield debt securities or junk bonds), investment-grade securitized debt
securities (those of medium and high quality), floating rate loans and other
floating rate securities, inflation-protected debt securities, hybrid and
preferred securities, contingent convertible securities, and securities of
foreign issuers, including securities of issuers located in emerging markets.
Emerging markets include countries that have an emerging stock market as defined
by MSCI, countries or markets with low- to middle-income economies as classified
by the World Bank, and other countries or markets that the Adviser identifies as
having similar emerging markets characteristics. Emerging markets tend to have
relatively low gross national product per capita compared to the world's major
economies and may have the potential for rapid economic growth.
The
Adviser will tactically adjust the fund's allocation among the different
security types in seeking to achieve the fund's investment objective. For
example, the Adviser may actively shift portfolio allocations from
investment-grade debt securities to high yield debt securities, and vice-versa,
over the short or medium term in order to take advantage of market trends,
economic conditions or perceived mispricing opportunities in the debt markets.
The Adviser will use a variety of investment techniques to manage the fund's
overall risk and interest rate risk, including sector rotation, asset allocation
and security selection, and will combine fundamental analysis to assess market
and economic conditions with a qualitative and quantitative approach to
portfolio construction.
The
Adviser invests the fund's assets in both U.S. dollar-denominated and non-U.S.
dollar-denominated securities. The Adviser will generally hedge the fund's
foreign currency exposures utilizing forward foreign currency exchange
contracts.
The
Adviser may invest in collateralized loan obligations.
The
Adviser considers other factors when selecting the fund's investments, including
the credit quality of the issuer, security-specific features, current valuation
relative to alternatives in the market, short-term trading opportunities
resulting from market inefficiencies, and potential future valuation. In
managing the fund's exposure to various risks, including interest rate risk, the
Adviser considers, among other things, the market's overall risk
characteristics, the market's current pricing of those risks, and internal views
of potential future market conditions. The Adviser's analysis also considers the
credit, currency, and economic risks associated with a security and the country
of its issuer. The Adviser may also consider an issuer's potential for success
in light of its current financial condition, its industry position, and economic
and market conditions.
The
Adviser may engage in transactions that have a leveraging effect on the fund,
including investments in derivatives, regardless of whether the fund may own the
asset, instrument, currency, or components of the index underlying the
derivative, and forward-settling securities. The Adviser may invest a
significant portion of the fund's assets in these types of investments. If the
fund invests a significant portion of its assets in derivatives, its investment
exposure could far exceed the value of its portfolio securities and its
investment performance could be primarily dependent upon securities it does not
own. In addition to forward foreign currency exchange contracts, the fund's
derivative investments may include interest rate swaps, total return swaps,
credit default swaps, options (including options on futures and swaps),
forwards, and futures contracts (both long and short positions) on securities,
other instruments, indexes, or currencies. Depending on the Adviser's outlook
and market conditions, the Adviser may engage in these transactions to increase
or decrease the fund's exposure to changing security prices, interest rates,
credit qualities, foreign exchange rates, or other factors that affect security
values, or to gain or reduce exposure to an asset, instrument, currency, or
index.
If
the Adviser's strategies do not work as intended, the fund may not achieve its
objective.
Shareholders
should be aware that investments made by the fund and results achieved by the
fund at any given time are not expected to be the same as those made by other
funds for which the Adviser or an affiliate acts as manager, including funds
with names, investment objectives, and policies that are similar to the
fund.
Description
of Principal Security Types
Debt
securities
are used by issuers to borrow money. The issuer usually pays a fixed, variable,
or floating rate of interest, and must repay the amount borrowed, usually at the
maturity of the security. Some debt securities, such as zero coupon bonds,
do not pay current interest but are sold at a discount from their face
values. Debt securities include corporate bonds, government securities
(including Treasury securities), repurchase agreements, money market securities,
mortgage and other asset-backed securities (including collateralized loan
obligations), loans and loan participations, and other securities believed to
have debt-like characteristics, including hybrids and synthetic
securities.
Some
of the debt securities in which the fund invests may be "covenant-lite," which
means these obligations lack or contain fewer or contingent financial covenants
or other financial protections for lenders and investors than other
obligations.
Collateralized
loan obligations
(CLO) are a type of asset-backed security. A CLO is typically collateralized by
a pool of loans, which may include domestic and foreign senior secured loans,
senior unsecured loans, and subordinate corporate loans, including loans that
may be rated below investment grade or equivalent unrated loans. CLOs may charge
management fees and other expenses. Cash flows from the CLO are split into two
or more portions, called tranches, which can vary in risk and yield. A CLO's
more senior tranches are partially protected from defaults, typically have
higher ratings and lower yields than their underlying securities and can be
rated investment grade. More junior tranches offer the potential for higher
yield but are more exposed to loss and have lower ratings.
Contingent
convertible securities
are securities typically issued by banking institutions that, under certain
circumstances, may convert into common stock of the issuer or have their
principal written down upon the occurrence of certain "triggers." The triggers
are generally linked to regulatory capital thresholds and regulatory actions
calling into question the issuing banking institution's continued viability as a
going-concern. Certain contingent convertible securities may be debt securities,
as determined by the Adviser, depending on, among other criteria, the security's
position in the insolvency waterfall, regulatory capital classification,
maturity date, and interest payment structure.
A
repurchase agreement is
an agreement to buy a security at one price and a simultaneous agreement to sell
it back at an agreed-upon price.
Derivatives
are investments whose values are tied to an underlying asset, instrument,
currency, or index. Derivatives include futures, options, forwards, and
swaps, such as interest rate swaps (exchanging a floating rate for a fixed
rate), total return swaps (exchanging a floating rate for the total return of an
index, security, or other instrument or investment) and credit default swaps
(buying or selling credit default protection). Currency-related
derivatives, in particular, include foreign exchange (FX) transactions such as
spot FX trades, FX forwards, non-deliverable forwards, and cross-currency FX
trades.
Forward-settling
securities involve
a commitment to purchase or sell specific securities when issued, or at a
predetermined price or yield. Payment and delivery take place after the
customary settlement period.
Principal
Investment Risks
Many
factors affect the fund's performance. Developments that disrupt global
economies and financial markets, such as pandemics and epidemics, may magnify
factors that affect a fund's performance. The fund's share price and yield
change daily based on changes in market conditions and interest rates and in
response to other economic, political, or financial developments. The fund's
reaction to these developments will be affected by the types and maturities of
securities in which the fund invests, the financial condition, industry and
economic sector, and geographic location of an issuer, and the fund's level of
investment in the securities of that issuer. Unlike individual debt securities,
which typically pay principal at maturity, the value of an investment in the
fund will fluctuate. When you sell your shares they may be worth more or less
than what you paid for them, which means that you could lose money by investing
in the fund.
The
following factors can significantly affect the fund's performance:
Interest
Rate Changes. Debt
securities, including money market securities, have varying levels of
sensitivity to changes in interest rates. In general, the price of a debt
security can fall when interest rates rise and can rise when interest rates
fall. Securities with longer maturities and certain types of securities, such as
mortgage securities and the securities of issuers in the financial services
sector, can be more sensitive to interest rate changes, meaning the longer the
maturity of a security, the greater the impact a change in interest rates could
have on the security's price. Short-term and long-term interest rates do not
necessarily move in the same amount or the same direction. Short-term securities
tend to react to changes in short-term interest rates, and long-term securities
tend to react to changes in long-term interest rates. Securities with floating
interest rates can be less sensitive to interest rate changes, but may decline
in value if their interest rates do not rise as much as interest rates in
general. Securities whose payment at maturity is based on the movement of all or
part of an index and inflation-protected debt securities may react differently
from other types of debt securities. Some countries experience low or negative
interest rates from time to time, which may magnify interest rate risk for the
market as a whole and for a fund. In market environments where interest rates
are rising, issuers may be less willing or able to make principal and/or
interest payments on securities when due. Although the transition process away
from certain benchmark rates, including London Interbank Offered Rate (LIBOR)
(an indicative measure of the average interest rate at which major global banks
could borrow from one another), has become increasingly well-defined, any
potential effects of the transition away from LIBOR
and other benchmark rates on financial markets, a fund or the financial
instruments in which a fund invests can be difficult to ascertain and may
adversely impact a fund's performance.
Foreign
and Emerging Markets Risk. Foreign
securities, foreign currencies, and securities issued by U.S. entities with
substantial foreign operations can involve additional risks relating to
political, economic, or regulatory conditions in foreign countries. These risks
include fluctuations in foreign exchange rates; withholding or other taxes;
trading, settlement, custodial, and other operational risks; and the less
stringent investor protection and disclosure standards of some foreign markets.
All of these factors can make foreign investments, especially those in emerging
markets, more volatile and potentially less liquid than U.S. investments. In
addition, foreign markets can perform differently from the U.S.
market.
Investing
in emerging markets can involve risks in addition to and greater than those
generally associated with investing in more developed foreign markets. The
extent of economic development; political stability; market depth,
infrastructure, and capitalization; and regulatory oversight can be less than in
more developed markets. Emerging markets typically have less established legal,
accounting and financial reporting systems than those in more developed markets,
which may reduce the scope or quality of financial information available to
investors. Emerging markets economies can be subject to greater social,
economic, regulatory, and political uncertainties and can be extremely volatile.
All of these factors can make emerging markets securities more volatile and
potentially less liquid than securities issued in more developed
markets.
Global
economies and financial markets are becoming increasingly interconnected, which
increases the possibilities that conditions in one country or region might
adversely impact issuers or providers in, or foreign exchange rates with, a
different country or region.
Foreign
Currency Transactions. A
fund that invests in securities denominated in foreign currencies may enter into
forward foreign currency exchange contracts. A forward foreign currency exchange
contract, which involves an obligation to purchase or sell a specific currency
at a future date at a price set at the time of the contract, reduces a fund's
exposure to changes in the value of the currency it will deliver and increases
its exposure to changes in the value of the currency it will receive for the
duration of the contract. Certain foreign currency transactions may also be
settled in cash rather than the actual delivery of the relevant currency. A
contract to sell a foreign currency would limit any potential gain that might be
realized if the value of the hedged currency increases. Suitable hedging
transactions may not be available in all circumstances, may not be successful,
and may eliminate any chance for the fund to benefit from favorable fluctuations
in relevant foreign currencies.
Prepayment.
Many types of debt securities, including mortgage securities, floating rate
loans, collateralized loan obligations, and inflation-protected debt securities,
are subject to prepayment risk. Prepayment risk occurs when the issuer of a
security can repay principal prior to the security's maturity. Securities
subject to prepayment can offer less potential for gains during a declining
interest rate environment and similar or greater potential for loss in a rising
interest rate environment. In addition, the potential impact of prepayment
features on the price of a debt security can be difficult to predict and result
in greater volatility.
Issuer-Specific
Changes. Changes
in the financial condition of an issuer or counterparty, changes in specific
economic or political conditions that affect a particular type of security or
issuer, and changes in general economic or political conditions can increase the
risk of default by an issuer or counterparty, which can affect a security's or
instrument's credit quality or value. The value of securities of smaller, less
well-known issuers can be more volatile than that of larger issuers. Entities
providing credit support or a maturity-shortening structure also can be affected
by these types of changes, and if the structure of a security fails to function
as intended, the security could decline in value. Lower-quality debt securities
(those of less than investment-grade quality, also referred to as high yield
debt securities or junk bonds) and certain types of other securities tend to be
particularly sensitive to these changes.
Lower-quality
debt securities and certain types of other securities involve greater risk of
default or price changes due to changes in the credit quality of the issuer. The
value of lower-quality debt securities and certain types of other securities
often fluctuates in response to company, political, or economic developments and
can decline significantly over short as well as long periods of time or during
periods of general or regional economic difficulty. Lower-quality debt
securities can be thinly traded or have restrictions on resale, making them
difficult to sell at an acceptable price, and often are considered to be
speculative. The default rate for lower-quality debt securities is likely to be
higher during economic recessions or periods of high interest
rates.
CLO
tranches can experience substantial losses due to actual defaults, increased
sensitivity to defaults due to collateral default and disappearance of
protecting tranches, market anticipation of defaults, as well as aversion to CLO
securities as a class.
Covenant-lite
obligations are obligations that lack or contain fewer or contingent financial
covenants and other financial protections for lenders and investors than other
obligations, and may not include terms that allow the lender to monitor the
performance of the borrower and declare a default if certain criteria are
breached. Covenant-lite obligations carry more risk than traditional loans as
they allow issuers to engage in activities that would otherwise be difficult or
impossible under a traditional loan agreement. In the event of default,
covenant-lite obligations have lower recovery values as the lender may not have
the opportunity to negotiate with the borrower prior to default. A fund may
receive less or less frequent financial information from a borrower under a
covenant-lite obligation than under a traditional loan, which may result in more
limited access to financial information, difficulty evaluating a borrower's
financial performance over time and delays in exercising rights and remedies in
event of the borrower's significant financial decline. As a result, a fund's
investments in or exposure to covenant-lite obligations are generally subject to
more risk than investments that contain traditional financial maintenance
covenants and financial reporting requirements.
Fluctuation
of Net Asset Value and Share Price. The
NAV of the fund's shares will generally fluctuate with changes in the market
value of the fund's holdings. The fund's shares are listed on an exchange and
can be bought and sold in the secondary market at market prices. The market
prices of shares will fluctuate in accordance with changes in NAV and supply and
demand on the listing exchange. Although a share's market price is expected to
approximate its NAV, it is possible that the market price and NAV will vary
significantly. As a result, you may sustain losses if you pay more than the
shares' NAV when you purchase shares, or receive less than the shares' NAV when
you sell shares, in the secondary market. During periods of disruptions to
creations and redemptions, the existence of extreme market volatility, or lack
of an active trading market for the fund's shares, the market price of fund
shares is more likely to differ significantly from the fund's NAV. During such
periods, you may be unable to sell your shares or may incur significant losses
if you sell your shares. There are various methods by which investors can
purchase and sell shares and various orders that may be placed. Investors should
consult their financial intermediary before purchasing or selling shares of a
fund. Disruptions at market makers, Authorized Participants or market
participants may also result in significant differences between the market price
of the fund's shares and the fund's NAV. In addition, in stressed market
conditions
or periods of market disruption or volatility, the market for shares may become
less liquid in response to deteriorating liquidity in the markets for the fund's
underlying portfolio holdings.
The
market price of shares during the trading day, like the price of any
exchange-traded security, includes a bid-ask spread charged by the exchange
specialist, market makers, or other participants that trade the particular
security. In times of severe market disruption or volatility, the bid-ask spread
can increase significantly. At those times, shares are most likely to be traded
at a discount to NAV, and the discount is likely to be greatest when the price
of shares is falling fastest, which may be the time that you most want to sell
your shares. Securities held by a fund may be traded in markets that close at a
different time than the listing exchange. During the time when the listing
exchange is open but after the applicable market closing, fixing or settlement
times, bid-ask spreads and the resulting premium or discount to the fund's NAV
may widen. The Adviser expects that, under normal market conditions, large
discounts or premiums to NAV will not be sustained in the long term because of
arbitrage opportunities.
Trading
Issues.
Although shares are listed on an exchange, there can be no assurance that an
active trading market or requirements to remain listed will be met or
maintained. Only an Authorized Participant may engage in creation or redemption
transactions directly with the fund. The fund has a limited number of
intermediaries that act as Authorized Participants. There are no obligations of
market makers to make a market in the fund's shares or of Authorized
Participants to submit purchase or redemption orders for Creation Units.
Decisions by market makers or Authorized Participants to reduce their role with
respect to market making or creation and redemption activities during times of
market stress, or a decline in the number of Authorized Participants due to
decisions to exit the business, bankruptcy, or other factors, could inhibit the
effectiveness of the arbitrage process in maintaining the relationship between
the underlying value of the fund's portfolio securities and the market price of
fund shares. To the extent no other Authorized Participants are able to step
forward to create or redeem, shares may trade at a discount to NAV and possibly
face delisting. In addition, trading of shares in the secondary market may be
halted, for example, due to activation of marketwide "circuit breakers." If
trading halts or an unanticipated early closing of the listing exchange occurs,
a shareholder may be unable to purchase or sell shares of the fund. FDC, the
distributor of the fund's shares, does not maintain a secondary market in the
shares.
If
the fund's shares are delisted from the listing exchange, the Adviser may seek
to list the fund shares on another market, merge the fund with another
exchange-traded fund or traditional mutual fund, or redeem the fund shares at
NAV.
Shares
of the fund, similar to shares of other issuers listed on a stock exchange, may
be sold short and are therefore subject to the risk of increased volatility and
price decreases associated with being sold short.
Cash
Transactions Risk.
Unlike certain ETFs, the fund may effect some or all creations and redemptions
using cash, rather than in-kind securities. Therefore, it may be required to
sell portfolio securities and recognize gains on such sales that the fund might
not have recognized if it were to distribute portfolio securities in-kind. As a
result, an investment in the fund may be less tax-efficient than an investment
in an ETF that distributes portfolio securities entirely in-kind. The use of
cash creations and redemptions may also cause the fund's shares to trade in the
market at greater bid-ask spreads or greater premiums or discounts to the fund's
NAV. Furthermore, cash creation and redemption transactions may result in
certain brokerage, tax, foreign exchange, execution, price movement and other
costs and expenses related to the execution of trades resulting from such
transactions. To the extent that the maximum additional charge for creation or
redemption transactions is insufficient to cover these costs and expenses, the
fund's performance could be negatively impacted.
Leverage
Risk.
Derivatives and forward-settling securities involve leverage because they can
provide investment exposure in an amount exceeding the initial investment.
Leverage can magnify investment risks and cause losses to be realized more
quickly. A small change in the underlying asset, instrument, or index can lead
to a significant loss. Forward-settling securities also involve the risk that a
security will not be issued, delivered, or paid for when anticipated. Government
legislation or regulation could affect the use of these transactions and could
limit a fund's ability to pursue its investment strategies.
Hybrid
and Preferred Securities Risk.
The risks of investing in hybrid and preferred securities reflect a combination
of the risks of investing in securities, options, futures and currencies. An
investment in a hybrid or preferred security may entail significant risks that
are not associated with a similar investment in a traditional debt or equity
security. The risks of a particular hybrid or preferred security will depend
upon the terms of the instrument, but may include the possibility of significant
changes in the value of any applicable reference instrument. Such risks may
depend upon factors unrelated to the operations or credit quality of the issuer
of the hybrid or preferred security. Hybrid and preferred securities are
potentially more volatile and carry greater market and liquidity risks than
traditional debt or equity securities. Also, the price of the hybrid or
preferred security and any applicable reference instrument may not move in the
same direction or at the same time.
Contingent
Convertible Securities Risk. Contingent
convertible securities have unique equity conversion or principal write-down
features that are tailored to the issuing banking institution and its regulatory
requirements. Contingent convertibles may have fully discretionary coupons. This
means coupons can potentially be cancelled at the banking institution's
discretion or at the request of the relevant regulatory authority in order to
help the bank absorb losses. Contingent convertibles will, in the majority of
circumstances, be issued in the form of subordinated debt instruments in order
to provide the appropriate regulatory capital treatment prior to a conversion.
In the event of liquidation, dissolution or winding-up of an issuer prior to a
conversion, the rights and claims of the holders of the contingent convertibles
against the issuer will generally rank junior to the claims of all holders of
unsubordinated obligations of the issuer. In addition, if the contingent
convertibles are converted into the issuer's underlying equity securities
following a conversion event, each holder will be subordinated due to their
conversion from being the holder of a debt instrument to being the holder of an
equity instrument.
Impairment
of Collateral. The
value of the collateral securing a floating rate loan can decline, be
insufficient to meet the obligations of the borrower, or be difficult to
liquidate. As a result, a floating rate loan may not be fully collateralized and
can decline significantly in value.
Floating
Rate Loan Liquidity. Floating
rate loans generally are subject to legal or contractual restrictions on resale.
The liquidity of floating rate loans, including the volume and frequency of
secondary market trading in such loans, varies significantly over time and among
individual floating rate loans. For example, if the credit quality of a floating
rate loan unexpectedly declines significantly, secondary market trading in that
floating rate loan can also decline for a period of time. During periods of
infrequent trading, valuing a floating rate loan can be more difficult, and
buying and selling a floating rate loan at an acceptable price can be more
difficult and delayed, including extended trade settlement periods. Difficulty
in selling a floating rate loan can result in a loss.
Inflation-Protected
Debt Exposure.
Inflation-protected debt securities tend to react to changes in real interest
rates. Real interest rates represent nominal (stated) interest rates reduced by
the expected impact of inflation. In general, the price of an
inflation-protected debt security can fall when real interest rates rise, and
can rise when real interest rates fall. Interest payments on inflation-protected
debt securities can be unpredictable and will vary as the principal and/or
interest is adjusted for inflation.
In
response to market, economic, political, or other conditions, a fund may
temporarily use a different investment strategy for defensive purposes. If the
fund does so, different factors could affect its performance and the fund may
not achieve its investment objective.
Other
Investment Strategies
To
earn additional income for the fund, the Adviser may use a trading strategy that
involves selling (or buying) mortgage securities and simultaneously agreeing to
purchase (or sell) mortgage securities on a later date at a set price. This
trading strategy may increase interest rate exposure and result in an increased
portfolio turnover rate which increases transaction costs and may increase
taxable gains.
Non-Fundamental
Investment Policies
The
fund's investment objective is non-fundamental and may be changed without
shareholder approval.
Shareholder
Notice
The
following is subject to change only upon 60 days' prior notice to
shareholders:
Fidelity®
Tactical Bond ETF normally
invests at least 80% of its assets in debt securities of all types and
repurchase agreements for those securities.
The
fund is open for business each day that either the listing exchange or the New
York Stock Exchange (NYSE) is open.
The
NAV is the value of a single share. Fidelity normally calculates NAV as of the
close of regular trading hours on the listing exchange or the NYSE, normally
4:00 p.m. Eastern time. The fund's assets normally are valued as of this time
for the purpose of computing NAV. The prices at which creations and redemptions
occur are based on the next calculation of NAV after a creation or redemption
order is received in an acceptable form under the authorized participant
agreement.
NAV
is not calculated and the fund will not process purchase and redemption requests
submitted on days when the fund is not open for business. The time at which
shares are priced and until which purchase and redemption orders are accepted
may be changed as permitted by the Securities and Exchange Commission
(SEC).
Shares
of the fund may be purchased through a broker in the secondary market by
individual investors at market prices which may vary throughout the day and may
differ from NAV.
To
the extent that the fund's assets are traded in other markets on days when the
fund is not open for business, the value of the fund's assets may be affected on
those days. In addition, trading in some of the fund's assets may not occur on
days when the fund is open for business.
Shares
of open-end funds in which the fund may invest (referred to as underlying funds)
are valued at their respective NAVs. NAV is calculated using the values of any
underlying funds in which it invests. Other assets are valued primarily on the
basis of market quotations, official closing prices, or information furnished by
a pricing service. Certain short-term securities are valued on the basis of
amortized cost. If market quotations, official closing prices, or information
furnished by a pricing service are not readily available or, in the Adviser's
opinion, are deemed unreliable for a security, then that security will be fair
valued in good faith by the Adviser in accordance with applicable fair value
pricing policies. For example, if, in the Adviser's opinion, a security's value
has been materially affected by events occurring before a fund's pricing time
but after the close of the exchange or market on which the security is
principally traded, then that security will be fair valued in good faith by the
Adviser in accordance with applicable fair value pricing policies. Fair value
pricing will be used for high yield debt securities when available pricing
information is determined to be stale or for other reasons not to accurately
reflect fair value.
Fair
value pricing is based on subjective judgments and it is possible that the fair
value of a security may differ materially from the value that would be realized
if the security were sold.
Shareholder
Information
Additional
Information about the Purchase and Sale of Shares
As
used in this prospectus, the term "shares" generally refers to the shares
offered through this prospectus.
General
Information
Information
on Fidelity
Fidelity
Investments was established in 1946 to manage one of America's first mutual
funds. Today, Fidelity is one of the world's largest providers of financial
services.
In
addition to its fund business, the company operates one of America's leading
brokerage firms, Fidelity Brokerage Services LLC. Fidelity is also a leader in
providing tax-advantaged retirement plans for individuals investing on their own
or through their employer.
The
Depository Trust Company (DTC) is a limited trust company and securities
depository that facilitates the clearance and settlement of trades for its
participating banks and broker-dealers. DTC has executed an agreement with FDC,
the fund's distributor.
Buying
and Selling Shares in the Secondary Market
Shares
of the fund are listed and traded on an exchange, and individual fund shares may
only be bought and sold in the secondary market through a broker. The fund does
not impose any minimum investment for shares of the fund purchased on an
exchange. These transactions are made at market prices that may vary throughout
the day and may be greater than the fund's NAV (premium) or less than the
fund's NAV (discount). As a result, you may pay more than NAV when you purchase
shares, and receive less than NAV when you sell shares, in the secondary market.
If you buy or sell shares in the secondary market, you will generally incur
customary brokerage commissions and charges. Due to such commissions and
charges, frequent trading may detract significantly from investment
returns.
The
fund is designed to offer investors an investment that can be bought and sold
frequently in the secondary market without impact on the fund, and such trading
activity is critical to ensuring that the market price of fund shares remains at
or close to NAV. Accordingly, the Board of Trustees has not adopted policies and
procedures designed to discourage excessive or short-term trading by these
investors.
Shares
can be purchased and redeemed directly from the fund at NAV only by Authorized
Participants in large increments called "Creation Units." The fund
accommodates frequent purchases and redemptions of Creation Units by Authorized
Participants and does not place a limit on purchases or redemptions of Creation
Units by these investors. The fund reserves the right, but does not have the
obligation, to reject any purchase transaction at any time. In addition, the
fund reserves the right to impose restrictions on disruptive, excessive, or
short-term trading.
Precautionary
Notes
- Note
to Investment Companies. For
purposes of the Investment Company Act of 1940 (1940 Act), shares are issued
by the fund, and the acquisition of shares by investment companies is subject
to the restrictions of Section 12(d)(1) of the 1940 Act. Registered investment
companies are permitted to invest in a fund beyond the limits set forth in
Section 12(d)(1), subject to certain terms and conditions, including that such
investment companies enter into an agreement with the fund.
- Note
to Authorized Participants Regarding Continuous Offering. Certain
legal risks may exist that are unique to Authorized Participants purchasing
Creation Units directly from the fund. Because new Creation Units may be
issued on an ongoing basis, at any point a "distribution," as such term is
used in the Securities Act of 1933 (the Securities Act), could be occurring.
As a broker-dealer, certain activities that you perform may, depending on the
circumstances, result in your being deemed a participant in a distribution, in
a manner which could render you a statutory underwriter and subject you to the
prospectus delivery and liability provisions of the Securities
Act.
For
example, you may be deemed a statutory underwriter if you purchase Creation
Units from the fund, break them down into individual fund shares, and sell such
shares directly to customers, or if you choose to couple the creation of a
supply of new fund shares with an active selling effort involving solicitation
of secondary market demand for fund shares. A determination of whether a person
is an underwriter for purposes of the Securities Act depends upon all of the
facts and circumstances pertaining to that person's activities, and the examples
mentioned here should not be considered a complete description of all the
activities that could lead to a categorization as an underwriter.
Dealers
who are not "underwriters" but are participating in a distribution (as opposed
to engaging in ordinary secondary market transactions), and thus dealing with
shares as part of an "unsold allotment" within the meaning of Section 4(a)(3)(C)
of the Securities Act, will be unable to take advantage of the prospectus
delivery exemption provided by Section 4(a)(3) of the Securities
Act.
This
is because the prospectus delivery exemption in Section 4(a)(3) of the
Securities Act is not available in respect of such transactions as a result of
Section 24(d) of the 1940 Act. As a result, you should note that dealers who are
not underwriters but are participating in a distribution (as opposed to engaging
in ordinary secondary market transactions) and thus dealing with the shares that
are part of an overallotment within the meaning of Section 4(a)(3)(A) of the
Securities Act would be unable to take advantage of the prospectus delivery
exemption provided by Section 4(a)(3) of the Securities Act. Firms that incur a
prospectus-delivery obligation with respect to shares of the fund are reminded
that, under Rule 153 under the Securities Act, a prospectus delivery obligation
under Section 5(b)(2) of the Securities Act owed to an exchange member in
connection with a sale on an exchange is satisfied by the fact that the
prospectus is available at the exchange upon request. The prospectus delivery
mechanism provided in Rule 153 is only available with respect to transactions on
an exchange. Certain affiliates of the fund may purchase and resell fund shares
pursuant to this prospectus.
- Note
to Secondary Market Investors.
DTC, or its nominee, is the registered owner of all outstanding shares of the
fund. The Adviser will not have any record of your ownership. Your ownership
of shares will be shown on the records of DTC and the DTC participant broker
through which you hold the shares. Your broker will provide you with account
statements, confirmations of your purchases and sales, and tax information.
Your broker will also be responsible for distributing income and capital gain
distributions and for sending you shareholder reports and other information as
may be required.
Costs
Associated with Creations and Redemptions
The
fund may impose a creation transaction fee and a redemption transaction fee to
offset transfer and other transaction costs associated with the issuance and
redemption of Creation Units of shares. Information about the procedures
regarding creation and redemption of Creation Units and the applicable
transaction fees is included in the Statement of Additional Information
(SAI).
Dividends
and Capital Gain Distributions
The
fund earns interest, dividends, and other income from its investments, and
distributes this income (less expenses) to shareholders as dividends. The fund
also realizes capital gains from its investments, and distributes these gains
(less any losses) as capital gain distributions. If you purchased your shares in
the secondary market, your broker is responsible for distributing the income and
capital gain distributions to you.
The
fund normally declares dividends and pays capital gain distributions per the
tables below:
Fund
Name |
|
Dividends
Paid |
Fidelity®
Tactical Bond ETF |
|
January,
February, March, April, May, June, July, August, September, October,
November, December |
Fund
Name |
|
Capital
Gains Paid |
Fidelity®
Tactical Bond ETF |
|
December |
As
with any investment, your investment in the fund could have tax consequences for
you (for non-retirement accounts).
Taxes
on Distributions
Distributions
investors receive are subject to federal income tax, and may also be subject to
state or local taxes.
For
federal tax purposes, certain distributions, including dividends and
distributions of short-term capital gains, are taxable to investors as ordinary
income, while certain distributions, including distributions of long-term
capital gains, are taxable to investors generally as capital gains. A percentage
of certain distributions of dividends may qualify for taxation at long-term
capital gains rates (provided certain holding period requirements are met).
Because the fund's income is primarily derived from interest, dividends from the
fund generally will not qualify for the long-term capital gains tax rates
available to individuals.
The
fund may effect creations and redemptions using cash rather than in-kind
securities and may recognize more capital gains and be less tax-efficient than
if in-kind securities were used. When the fund effects its redemptions
with cash rather than with in-kind securities, the fund may be required to sell
portfolio securities in order to obtain the cash needed to distribute redemption
proceeds, which involves transaction costs and may cause the fund to recognize
gains that might not have been otherwise recognized or to recognize such gains
sooner than otherwise. Losses from sales of immediately reacquired securities
are subject to deferral, potentially indefinitely. The fund generally intends to
distribute net annual gains, if any, to shareholders to comply with applicable
tax rules, causing shareholders to be subject to tax on gains they would not
otherwise be subject to or at an earlier date then if the fund effected
redemptions in-kind.
If
investors buy shares when a fund has realized but not yet distributed income or
capital gains, they will be "buying a dividend" by paying the full price for the
shares and then receiving a portion of the price back in the form of a taxable
distribution.
Any
taxable distributions you receive from the fund will normally be taxable to you
when you receive them; however, you will receive certain December distributions
in January, but those distributions will be taxable as if you received them on
December 31.
Taxes
on Transactions
Purchases
and sales of shares, as well as purchases and redemptions of Creation Units, may
result in a capital gain or loss for federal tax purposes.
Fund
Services
Adviser
FMR.
The
Adviser is the fund's manager. The address of the Adviser is 245 Summer Street,
Boston, Massachusetts 02210.
As
of December 31, 2022, the Adviser had approximately $3.1 trillion in
discretionary assets under management, and approximately $3.9 trillion when
combined with all of its affiliates' assets under management.
As
the manager, the Adviser has overall responsibility for directing the fund's
investments and handling its business affairs.
Sub-Adviser(s)
FMR
Investment Management (UK) Limited (FMR UK),
at 1 St. Martin's Le Grand, London, EC1A 4AS, United Kingdom, serves as a
sub-adviser for the fund. As of December 31, 2022, FMR UK had approximately
$14.7 billion in discretionary assets under management. FMR UK is an affiliate
of the Adviser.
FMR
UK may provide investment research and advice on issuers based outside the
United States and may also provide investment advisory services for the
fund.
Fidelity
Management & Research (Hong Kong) Limited (FMR H.K.),
at Floor 19, 41 Connaught Road Central, Hong Kong, serves as a sub-adviser for
the fund. As of December 31, 2022, FMR H.K. had approximately $21.4 billion in
discretionary assets under management. FMR H.K. is an affiliate of the
Adviser.
FMR
H.K. may provide investment research and advice on issuers based outside the
United States and may also provide investment advisory services for the
fund.
Fidelity
Management & Research (Japan) Limited (FMR Japan),
at Kamiyacho Prime Place, 1-17, Toranomon-4-Chome, Minato-ku, Tokyo, Japan,
serves as a sub-adviser for the fund. As of March 31, 2023, FMR Japan had
approximately $2.9 billion in discretionary assets under management. FMR Japan
is an affiliate of the Adviser.
FMR
Japan may provide investment research and advice on issuers based outside the
United States and may also provide investment advisory services for the
fund.
Portfolio
Manager(s)
Benjamin
Harrison is Co-Portfolio Manager of Fidelity®
Tactical Bond ETF, which he has managed since 2023. He also manages other funds.
Since joining Fidelity Investments in 2009, Mr. Harrison has worked as a
managing director of research and business development and portfolio
manager.
Jeff
Moore is Co-Portfolio Manager of Fidelity®
Tactical Bond ETF, which he has managed since 2023. He also manages other funds.
Since joining Fidelity Investments in 1995, Mr. Moore has worked as a research
analyst and portfolio manager.
Michael
Plage is Co-Portfolio Manager of Fidelity®
Tactical Bond ETF, which he has managed since 2023. He also manages other funds.
Since joining Fidelity Investments in 2005, Mr. Plage has worked as a trader and
portfolio manager.
The
SAI provides additional information about the compensation of, any other
accounts managed by, and any fund shares held by the portfolio
manager(s).
From
time to time a manager, analyst, or other Fidelity employee may express views
regarding a particular company, security, industry, or market sector. The views
expressed by any such person are the views of only that individual as of the
time expressed and do not necessarily represent the views of Fidelity or any
other person in the Fidelity organization. Any such views are subject to change
at any time based upon market or other conditions and Fidelity disclaims any
responsibility to update such views. These views may not be relied on as
investment advice and, because investment decisions for a fund are based on
numerous factors, may not be relied on as an indication of trading intent on
behalf of any fund.
Advisory
Fee(s)
The
fund pays a management fee to the Adviser.
The
management fee is calculated and paid to the Adviser every month.
The
Adviser pays all of the other expenses of Fidelity® Tactical Bond ETF with
limited exceptions.
The
annual management fee rate, as a percentage of the fund's average net assets, is
shown in the following table:
Fund |
Management
Fee Rate |
Fidelity®
Tactical Bond ETF |
0.55% |
The
Adviser pays FMR Investment Management (UK) Limited, Fidelity Management &
Research (Hong Kong) Limited, and Fidelity Management & Research (Japan)
Limited for providing sub-advisory services.
The
basis for the Board of Trustees approving the management contract and
sub-advisory agreements for the fund is available in the fund's semi-annual
report for the fiscal period ended February 28, 2023.
From
time to time, the Adviser or its affiliates may agree to reimburse or waive
certain fund expenses while retaining the ability to be repaid if expenses fall
below the specified limit prior to the end of the fiscal year.
Reimbursement
or waiver arrangements can decrease expenses and boost performance.
FDC
distributes the fund's shares.
Intermediaries
may receive from the Adviser, FDC, and/or their affiliates compensation for
providing recordkeeping and administrative services, as well as other retirement
plan expenses, and compensation for services intended to result in the sale of
fund shares.
These
payments are described in more detail in this section and in the
SAI.
Distribution
and Service Plan(s)
While
the fund will not make direct payments for distribution or shareholder support
services, the fund has adopted a Distribution and Service Plan pursuant to
Rule 12b-1 under the 1940 Act with respect to its shares. The Plan
recognizes that the Adviser may use its management fee revenues, as well as its
past profits or its resources from any other source, to pay FDC for
expenses incurred in connection with providing services intended to result in
the sale of shares of the fund and/or shareholder support services. The
Adviser, directly or through FDC, may pay significant amounts to intermediaries
that provide those services. Currently, the Board of Trustees of the fund
has authorized such payments for shares of the fund.
If
payments made by the Adviser to FDC or to intermediaries under the Distribution
and Service Plan were considered to be paid out of the fund's assets on an
ongoing basis, they might increase the cost of your investment and might cost
you more than paying other types of sales charges.
No
dealer, sales representative, or any other person has been authorized to give
any information or to make any representations, other than those contained in
this prospectus and in the related SAI, in connection with the offer contained
in this prospectus. If given or made, such other information or representations
must not be relied upon as having been authorized by the fund or FDC. This
prospectus and the related SAI do not constitute an offer by the fund or by FDC
to sell shares of the fund to, or to buy shares of the fund from, any person to
whom it is unlawful to make such offer.
State
Street Bank and Trust Company serves as the fund's transfer agent and custodian,
and is located at One Heritage Drive, Floor 1, North Quincy, Massachusetts,
02171 and 1 Lincoln Street, Boston, Massachusetts, 02111,
respectively.
Appendix
Financial
Highlights are intended to help you understand the financial history of fund
shares for the past 5 years (or, if shorter, the period of operations). Certain
information reflects financial results for a single share. The total returns in
the table represent the rate that an investor would have earned (or lost) on an
investment in shares (assuming reinvestment of all dividends and distributions).
The annual information has been audited by Deloitte & Touche LLP,
independent registered public accounting firm, whose report, along with
fund financial statements, is included in the annual report. Annual reports are
available for free upon request.
Fidelity®
Tactical Bond ETF |
|
Years
ended August 31, |
|
2023
A |
Selected
Per-Share Data |
|
|
Net
asset value, beginning of period |
$ |
50.00 |
Income
from Investment Operations |
|
|
Net
investment income (loss) B,C |
|
1.373
|
Net
realized and unrealized gain (loss) |
|
(1.782)
|
Total
from investment operations |
|
(.409)
|
Distributions
from net investment income |
|
(1.361)
|
Total
distributions |
|
(1.361)
|
Net
asset value, end of period |
$ |
48.23 |
Total
Return D,E,F |
|
(.82)%
|
Ratios
to Average Net Assets C,G,H |
|
|
Expenses
before reductions |
|
.55%
I |
Expenses
net of fee waivers, if any |
|
.55%
I |
Expenses
net of all reductions |
|
.54%
I |
Net
investment income (loss) |
|
4.64%
I |
Supplemental
Data |
|
|
Net
assets, end of period (000 omitted) |
$ |
14,469 |
Portfolio
turnover rate J |
|
46%
I |
AFor
the period January 24, 2023 (commencement of operations) through August 31,
2023.
BCalculated
based on average shares outstanding during the period.
CNet
investment income (loss) is affected by the timing of the declaration of
dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net
investment income (loss) of any mutual funds or ETFs is not included in the
Fund's net investment income (loss) ratio.
DTotal
returns for periods of less than one year are not annualized.
ETotal
returns would have been lower if certain expenses had not been reduced during
the applicable periods shown.
FBased
on net asset value.
GFees
and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are
not included in the Fund's expense ratio. The Fund indirectly bears its
proportionate share of these expenses. For additional expense information
related to investments in Fidelity Central Funds, please refer to the
"Investments in Fidelity Central Funds" note found in the Notes to Financial
Statements section of the most recent Annual or Semi-Annual
report.
HExpense
ratios reflect operating expenses of the class. Expenses before reductions do
not reflect amounts reimbursed, waived, or reduced through arrangements with the
investment adviser, brokerage services, or other offset arrangements, if
applicable, and do not represent the amount paid by the class during periods
when reimbursements, waivers or reductions occur.
IAnnualized.
JAmount
does not include the portfolio activity of any underlying mutual funds or
exchange-traded funds (ETFs).
Additional
Index Information
Fidelity®
Tactical Bond ETF will compare its performance to the performance of Bloomberg
U.S. Aggregate Bond Index.
Bloomberg
U.S. Aggregate Bond Index
is a broad-based, flagship benchmark that measures the investment grade, US
dollar-denominated, fixed-rate taxable bond market. The index includes
Treasuries, government-related and corporate securities, mortgage-back
securities (agency fixed-rate pass-throughs), asset-backed securities and
collateralised mortgage-backed securities (agency and non-agency).
You
can obtain additional information about the fund. A description of the fund's
policies and procedures for disclosing its holdings is available in its
Statement of Additional Information (SAI) and on Fidelity's web sites. The SAI
also includes more detailed information about the fund and its investments. The
SAI is incorporated herein by reference (legally forms a part of the
prospectus). The fund's annual and semi-annual reports also include additional
information. The fund's annual report includes a discussion of the fund's
holdings and recent market conditions and the fund's investment strategies that
affected performance.
For
a free copy of any of these documents or to request other information or ask
questions about the fund, call Fidelity at 1-800-FIDELITY. In addition, you may
visit Fidelity's web site at www.fidelity.com for a free copy of a prospectus,
SAI, or annual or semi-annual report or to request other
information.
The
SAI, the fund's annual and semi-annual reports and other related materials
are available from the Electronic Data Gathering, Analysis, and Retrieval
(EDGAR) Database on the SEC's web site (http://www.sec.gov). You can
obtain copies of this information, after paying a duplicating fee, by
sending a request by e-mail to [email protected] or by writing the Public
Reference Section of the SEC, Washington, D.C. 20549-1520. You can also
review and copy information about the fund, including the fund's SAI, at
the SEC's Public Reference Room in Washington, D.C. Call 1-202-551-8090
for information on the operation of the SEC's Public Reference
Room. |
Investment
Company Act of 1940, File Number(s), 811-22796 |
Fidelity
Distributors Company LLC (FDC) is a member of the Securities Investor Protection
Corporation (SIPC). You may obtain information about SIPC, including the SIPC
brochure, by visiting www.sipc.org or calling SIPC at 202-371-8300.
Fidelity,
the Fidelity Investments Logo and all other Fidelity trademarks or service marks
used herein are trademarks or service marks of FMR LLC. Any third-party marks
that are used herein are trademarks or service marks of their respective owners.
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