the fiscal year ending July 31, 2023, the exchange-traded fund's net asset value
returned 23.86% and its market price returned 23.83%, versus the 23.98% advance
for the Fidelity MSCI Information Technology Index ETF Capped Linked Index and
the 13.02% advance for the S&P 500® index.
By subindustry, semiconductors gained approximately 54% and contributed most.
Technology hardware, storage & peripherals, which gained about 21%, also
helped, along with systems software, which advanced 23%. The application
software subindustry rose 22%, semiconductor materials & equipment gained
approximately 24%, and communications equipment advanced 13%. Other notable
contributors included the IT consulting & other services (+6%), electronic
manufacturing services (+23%), internet services & infrastructure (+10%),
electronic components (+6%), electronic equipment & instruments (+3%),
technology distributors (+8%), advertising (+36%), electrical components &
equipment (+18%), and data processing & outsourced services (+8%)
subindustries. In contrast, transaction & payment processing services
returned roughly -4% and detracted most. Human resource & employment
services (-12%) and data processing & outsourced services (-10%) also hurt.
Other notable detractors included the hotels, resorts & cruise lines (-50%)
and industrial machinery & supplies & components (-30%) subindustries.
Turning to individual stocks, the top contributor was Nvidia (+153%), from the
semiconductors category. Also in semiconductors, Broadcom (+73%) helped. In
technology hardware, storage & peripherals, Apple gained about 21% and
contributed. Microsoft (+21%), a stock in the systems software category, was
another positive. Lastly, Adobe (+33%), a stock in the application software
group, contributed. Conversely, the biggest individual detractor was Fidelity
National Information Services (-45%), from the transaction & payment
processing services category. Also, in transaction & payment processing
services, PayPal Holdings (-28%) and Block (-21%) hurt. Enphase Energy (-47%),
from the semiconductor materials & equipment category, also hurt. Lastly,
Automatic Data Processing (-12%), a stock in the human resource & employment
services industry, detracted.
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.