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 |
$ |
37 |
|
3
years |
$ |
116 |
|
5
years |
$ |
202 |
|
10
years |
$ |
456 |
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.
During the most recent fiscal year, the fund's portfolio turnover rate
was 233%
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.
- Using
the Bloomberg U.S. Universal Bond Index as a guide in allocating assets across
the investment-grade, high yield, and emerging markets asset classes. 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
up to 20% of assets in lower-quality debt securities (those of less than
investment-grade quality, also referred to as high yield debt securities or
junk bonds).
- Managing
the fund to have similar overall interest rate risk to the index.
- Investing
in domestic and foreign issuers.
- Allocating
assets across different asset classes, market sectors, and maturities.
- Analyzing
the credit quality of the issuer, the issuer's potential for success, the
credit, currency, and economic risks of the security and its 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
Interest
rate increases can cause the price of a debt security to decrease.
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.
Foreign
exchange rates also can be extremely volatile.
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.
- 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.
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.
High
portfolio turnover (more than 100%) may result in increased transaction costs
and potentially higher capital gains or losses. The effects of higher than
normal portfolio turnover may adversely affect the fund's
performance.
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
The
following information is intended to help you understand the risks of investing
in the fund.
The
information illustrates the changes in the performance of the fund's shares from
year to year and compares the performance of the fund's shares to the
performance of a securities market index and an additional index over various
periods of time.
The indexes have characteristics relevant to the fund's investment strategies.
Index descriptions appear in the "Additional Index Information" section of the
prospectus.
Past performance (before and after taxes) is not an indication of future
performance.
Visit
www.fidelity.com for
more recent performance information.
Year-by-Year
Returns
|
|
|
|
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
|
|
|
|
-1.44%
|
6.65%
|
4.07%
|
-0.67%
|
9.90%
|
9.51%
|
-0.35%
|
-12.73%
|
|
During
the periods shown in the chart: |
Returns |
Quarter
ended |
|
Highest
Quarter Return |
5.62% |
June
30, 2020 |
|
Lowest
Quarter Return |
-5.97% |
June
30, 2022 |
|
Year-to-Date
Return |
-0.01% |
September
30, 2023 |
Average
Annual Returns
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates, but do not reflect the impact of state or local
taxes.
Actual after-tax returns may differ depending on your individual
circumstances.
The after-tax returns shown are not relevant if you hold your shares in a
retirement account or in another tax-deferred arrangement, such as an employee
benefit plan (profit sharing, 401(k), or 403(b)
plan).
Return After Taxes on Distributions and Sale of Fund Shares may be higher than
other returns for the same period due to a tax benefit of realizing a capital
loss upon the sale of fund shares.
|
For
the periods ended December 31, 2022 |
Past
1
year |
Past
5
years |
Life
of
fund A |
|
Fidelity®
Total Bond ETF |
|
|
|
|
Return
Before Taxes |
-12.73%
|
0.78%
|
%
|
|
Return
After Taxes on Distributions |
-13.78%
|
-0.40%
|
%
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
-7.52%
|
0.15%
|
%
|
|
Bloomberg
U.S. Aggregate Bond Index
(reflects
no deduction for fees, expenses, or taxes) |
-13.01% |
0.02% |
% |
|
Bloomberg
U.S. Universal Bond Index
(reflects
no deduction for fees, expenses, or taxes) |
-12.99% |
0.18% |
% |
|
|
|
|
|
Investment
Adviser
Fidelity
Management & Research Company LLC (FMR) (the Adviser) is the fund's manager.
FMR Investment Management (UK) Limited and other investment advisers serve as
sub-advisers for the fund.
Portfolio
Manager(s)
Michael
Foggin (Co-Portfolio Manager) has managed the fund since 2014.
Ford
O'Neil (Co-Portfolio Manager) has managed the fund since 2014.
Michael
Plage (Co-Portfolio Manager) has managed the fund since 2015.
Celso
Munoz (Co-Portfolio Manager) has managed the fund since 2016.
Franco
Castagliuolo (Co-Portfolio Manager) has managed the fund since
2022.
Benjamin
Harrison (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®
Corporate Bond ETF seeks a high level of current income.
Principal
Investment Strategies
The
Adviser normally invests at least 80% of the fund's assets in corporate bonds
and other corporate debt securities and repurchase agreements for those
securities.
The
Adviser normally invests the fund's assets primarily in investment-grade
corporate debt securities and repurchase agreements for those
securities.
The
Adviser uses the Bloomberg U.S. Credit Bond Index as a guide in structuring the
fund and selecting its investments. The Adviser manages the fund to have similar
overall interest rate risk to the index.
The
Adviser may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
The
Adviser may invest the fund's assets in lower-quality debt
securities.
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, 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. The fund's derivative
investments may include interest rate swaps, total return swaps, credit default
swaps, options (including options on futures and swaps), and futures contracts
(both long and short positions) on securities, other instruments, and indexes.
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, or other factors that affect
security values, or to gain or reduce exposure to an asset, instrument, or
index.
In
buying and selling securities for the fund, the Adviser analyzes 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.
In
selecting foreign securities, the Adviser's analysis also considers the credit,
currency, and economic risks associated with the 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.
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.
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.
Investment
Objective
Fidelity®
Investment Grade Bond ETF seeks a high level of current income.
Principal
Investment Strategies
The
Adviser normally invests at least 80% of the fund's assets in investment-grade
debt securities (those of medium and high quality) of all types and repurchase
agreements for those securities.
The
Adviser uses the Bloomberg U.S. Aggregate Bond Index as a guide in structuring
the fund and selecting its investments. The Adviser manages the fund to have
similar overall interest rate risk to the index.
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 allocates the fund's assets among different market sectors (for example,
corporate, asset-backed, or government securities) and different maturities
based on its view of the relative value of each sector or maturity.
The
Adviser may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
The
Adviser may invest up to 10% of the fund's assets in lower-quality debt
securities (those of less than investment-grade quality, also referred to as
high yield debt securities or junk bonds).
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, 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. The fund's derivative
investments may include interest rate swaps, total return swaps, credit default
swaps, options (including options on futures and swaps), and futures contracts
(both long and short positions) on securities, other instruments, and indexes.
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, or other factors that affect
security values, or to gain or reduce exposure to an asset, instrument, or
index.
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.
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.
Investment
Objective
Fidelity®
Investment Grade Securitized ETF seeks a high level of current
income.
Principal
Investment Strategies
The
Adviser normally invests at least 80% of the fund's assets in investment-grade
securitized debt securities (those of medium and high quality) and repurchase
agreements for those securities. Securitized debt securities include
mortgage-backed securities, commercial mortgage-backed securities, and other
asset-backed securities that are issued by the U.S. Government, its agencies or
instrumentalities, foreign governments, and corporations. Certain issuers of
U.S. Government securities are sponsored or chartered by Congress but their
securities are neither issued nor guaranteed by the U.S. Treasury.
The
Adviser uses the Bloomberg U.S. Securitized Index as a guide in structuring the
fund and selecting its investments. The Adviser manages the fund to have similar
overall interest rate risk to the index.
The
Adviser may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
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 allocates the fund's assets among different market sectors (for example,
fixed-rate or adjustable rate mortgages) and different maturities based on its
view of the relative value of each sector or maturity.
The
Adviser may invest the fund's assets in lower-quality debt securities (those of
less than investment-grade quality, also referred to as high yield debt
securities or junk bonds).
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, 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. The fund's derivative
investments may include interest rate swaps, total return swaps, credit default
swaps, options (including options on futures and swaps), and futures contracts
(both long and short positions) on securities, other instruments, and indexes.
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, or other factors that affect
security values, or to gain or reduce exposure to an asset, instrument, or
index.
To
earn additional income for the fund, the Adviser may use a trading strategy that
involves selling (or buying) securitized debt securities and simultaneously
agreeing to purchase (or sell) securitized debt 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.
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.
Investment
Objective
Fidelity®
Limited Term Bond ETF seeks to provide a high rate of income.
Principal
Investment Strategies
The
Adviser normally invests at least 80% of the fund's assets in investment-grade
debt securities (those of medium and high quality) of all types and repurchase
agreements for those securities.
The
Adviser uses the Fidelity Limited Term Composite Index℠ as a guide in
structuring the fund and selecting its investments. The Adviser manages the fund
to have similar overall interest rate risk to the index.
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.
In
addition, the fund normally maintains a dollar-weighted average maturity between
two and five years. As of August 31, 2023, the fund's dollar-weighted average
maturity was approximately 2.7 years and the index's dollar-weighted average
maturity was approximately 2.8 years. In determining a security's maturity for
purposes of calculating the fund's average maturity, an estimate of the average
time for its principal to be paid may be used. This can be substantially shorter
than its stated maturity.
The
Adviser allocates the fund's assets among different market sectors (for example,
corporate, asset-backed, or government securities) and different maturities
based on its view of the relative value of each sector or maturity.
The
Adviser may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
The
Adviser may also invest the fund's assets in lower-quality debt
securities.
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, 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. The fund's derivative
investments may include interest rate swaps, total return swaps, credit default
swaps, options (including options on futures and swaps), and futures contracts
(both long and short positions) on securities, other instruments, and indexes.
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, or other factors that affect
security values, or to gain or reduce exposure to an asset, instrument, or
index.
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.
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.
Investment
Objective
Fidelity®
Total Bond ETF seeks a high level of current income.
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 allocates
the fund's assets across investment-grade, high yield, and emerging markets debt
securities. The Adviser may invest up to 20% of the fund's assets in
lower-quality debt securities. 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 uses the Bloomberg U.S. Universal Bond Index as a guide in structuring
the fund and selecting its investments. The Adviser uses the index as a guide in
allocating the fund's assets across the investment-grade, high yield, and
emerging markets asset classes. The Adviser manages the fund to have similar
overall interest rate risk to the index.
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 may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
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. 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.
The
Adviser allocates the fund's assets among different asset classes using the
composition of the index as a guide, and among different market sectors (for
example, corporate, asset-backed, or government securities) and different
maturities based on its view of the relative value of each sector or
maturity.
In
selecting foreign securities, the Adviser's analysis also considers the credit,
currency, and economic risks associated with the 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.
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.
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.
U.S.
Government securities
are high-quality securities issued or guaranteed by the U.S. Treasury or by an
agency or instrumentality of the U.S. Government. U.S. Government securities may
be backed by the full faith and credit of the U.S. Treasury, the right to borrow
from the U.S. Treasury, or the agency or instrumentality issuing or guaranteeing
the security.
Certain
issuers of U.S. Government securities, including Fannie Mae, Freddie Mac, and
the Federal Home Loan Banks, are sponsored or chartered by Congress but their
securities are neither issued nor guaranteed by the U.S. Treasury.
Securitized
debt securities
are interests in pools of mortgages, loans, receivables, or other assets.
Payment of principal or interest generally depends on the cash flows generated
by the underlying assets and may be supported by letters of credit, surety
bonds, or other credit enhancements. Securitized debt securities have securities
that FMR believes have securitized debt-like characteristics, including hybrids
and synthetic securities. Securitized debt securities may be U.S. Government
securities or issued by a foreign government or a bank or other financial
institution.
Commercial
mortgage-backed securities
are interests in pools of mortgages. The commercial properties underlying the
mortgages are typically retail, office, industrial, multi-family housing or
hotels. Payment of principal or interest generally depends on the cash flow
generated by the underlying mortgages.
Corporate
debt securities
are bonds and other debt securities issued by corporations and other business
structures. Corporate debt securities include repurchase agreements with
corporate counterparties and other securities believed to have corporate
debt-like characteristics, including hybrids and synthetic
securities.
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. When a fund does not already own or have the
right to obtain securities equivalent in kind and amount, a commitment to sell
securities is equivalent to a short sale. Payment and delivery take place after
the customary settlement period.
Principal
Investment Risks
Many
factors affect each 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. A 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. A 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 a 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 a fund.
The
following factors can significantly affect a 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. 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
Exposure.
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.
Securitized
Debt Securities Exposure.
Securitized debt securities, which include commercial mortgage-backed
securities, are dependent on the cash flows generated by the underlying loans,
receivables, or other assets, and can be significantly affected by changes in
interest rates, the availability of information concerning the underlying assets
and their structure, and the creditworthiness of the originators of the loans or
other receivables or the entities providing credit support.
Prepayment.
Many
types of debt securities, including mortgage 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.
Fluctuation
of Net Asset Value and Share Price. The
NAV of each fund's shares will generally fluctuate with changes in the market
value of each fund's holdings. Each 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 a 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 a 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 a fund. A fund has a limited number of intermediaries
that act as Authorized Participants. There are no obligations of market makers
to make a market in a 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 a 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 a fund. FDC, the distributor of each fund's shares, does not
maintain a secondary market in the shares.
If
a 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 a 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.
Leverage
Risk.
Derivatives, forward-settling securities, and short sale transactions 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 and short sale
transactions also involve the risk that a security will not be issued,
delivered, available for purchase, or paid for when anticipated. An increase in
the market price of securities sold short will result in a loss. Government
legislation or regulation could affect the use of these transactions and could
limit a fund's ability to pursue its investment strategies.
Cash
Transactions Risk.
Unlike certain ETFs, each 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.
High
Portfolio Turnover. A
fund may engage in active and frequent trading of its portfolio securities. High
portfolio turnover (more than 100%) may result in increased transaction costs to
a fund, including brokerage commissions, dealer mark-ups, and other transaction
costs on the sale of securities or reinvestment in other securities. The sale of
a fund's securities may result in the realization and/or distribution to
shareholders of higher capital gains or losses as compared to a fund with less
active trading policies. These effects of higher than normal portfolio turnover
may adversely affect a fund's performance.
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
In
addition to the principal investment strategies discussed above, the Adviser may
invest Fidelity®
Limited Term Bond ETF, Fidelity®
Investment Grade Bond ETF, Fidelity®
Investment Grade Securitized ETF, and Fidelity®
Total Bond ETF in collateralized loan obligations.
Fundamental
Investment Policies
The
following is fundamental, that is, subject to change only by shareholder
approval:
Fidelity®
Corporate Bond ETF seeks a high level of current income.
Fidelity®
Limited Term Bond ETF seeks to provide a high rate of income.
Fidelity®
Total Bond ETF seeks a high level of current income.
Non-Fundamental
Investment Policies
Each
of Fidelity® Investment Grade Bond ETF's and Fidelity® Investment Grade
Securitized ETF'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®
Corporate Bond ETF normally invests at least 80% of its assets in corporate
bonds and other corporate debt securities and repurchase agreements for those
securities.
Fidelity®
Investment Grade Bond ETF normally
invests at least 80% of its assets in investment-grade debt securities (those of
medium and high quality) of all types and repurchase agreements for those
securities.
Fidelity®
Investment Grade Securitized ETF normally
invests at least 80% of its assets in investment-grade securitized debt
securities (those of medium and high quality) and repurchase agreements for
those securities.
Fidelity®
Limited Term Bond ETF normally
invests at least 80% of its assets in investment-grade debt securities of all
types and repurchase agreements for those securities.
Fidelity®
Total Bond ETF normally
invests at least 80% of its assets in debt securities of all types and
repurchase agreements for those securities.
Each
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. Each 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 a 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 each 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 a 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 a fund's assets may not occur on
days when the fund is open for business.
Shares
of open-end funds in which each 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,
each fund's distributor.
Buying
and Selling Shares in the Secondary Market
Shares
of each 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. Each fund
does not impose any minimum investment for shares of a fund purchased on an
exchange. These transactions are made at market prices that may vary throughout
the day and may be greater than a fund's NAV (premium) or less than a
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.
Each
fund is designed to offer investors an investment that can be bought and sold
frequently in the secondary market without impact on a 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 each fund at NAV only by Authorized
Participants in large increments called "Creation Units." Each 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. Each fund reserves the right, but does not have the
obligation, to reject any purchase transaction at any time. In addition, each
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 a 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 a 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 a 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 a 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 each 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 a
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
funds 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
Each
fund earns interest, dividends, and other income from its investments, and
distributes this income (less expenses) to shareholders as dividends. Each 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.
Each
fund normally declares dividends and pays capital gain distributions per the
tables below:
|
Fund
Name |
|
Dividends
Paid |
|
Fidelity®
Corporate Bond ETF |
|
January,
February, March, April, May, June, July, August, September, October,
November, December |
|
Fidelity®
Investment Grade Bond ETF |
|
January,
February, March, April, May, June, July, August, September, October,
November, December |
|
Fidelity®
Investment Grade Securitized ETF |
|
January,
February, March, April, May, June, July, August, September, October,
November, December |
|
Fidelity®
Limited Term Bond ETF |
|
January,
February, March, April, May, June, July, August, September, October,
November, December |
|
Fidelity®
Total Bond ETF |
|
January,
February, March, April, May, June, July, August, September, October,
November, December |
|
Fund
Name |
|
Capital
Gains Paid |
|
Fidelity®
Corporate Bond ETF |
|
December |
|
Fidelity®
Investment Grade Bond ETF |
|
December |
|
Fidelity®
Investment Grade Securitized ETF |
|
December |
|
Fidelity®
Limited Term Bond ETF |
|
December |
|
Fidelity®
Total Bond ETF |
|
December |
As
with any investment, your investment in a 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 each fund's income is primarily derived from interest, dividends from
each fund generally will not qualify for the long-term capital gains tax rates
available to individuals.
Each
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 a 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. Each 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 a 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 each 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 each 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 each 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.
Currently,
FMR UK has day-to-day responsibility for choosing certain types of investments
for Fidelity®
Total Bond ETF.
FMR
UK may provide investment research and advice on issuers based outside the
United States and may also provide investment advisory services for Fidelity®
Corporate Bond ETF, Fidelity® Investment Grade Bond ETF, Fidelity® Investment
Grade Securitized ETF, and Fidelity® Limited Term Bond ETF.
Fidelity
Management & Research (Hong Kong) Limited (FMR H.K.),
at Floor 19, 41 Connaught Road Central, Hong Kong, serves as a sub-adviser for
each 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 Fidelity®
Corporate Bond ETF, Fidelity® Investment Grade Bond ETF, Fidelity® Investment
Grade Securitized ETF, Fidelity® Limited Term Bond ETF, and Fidelity® Total Bond
ETF.
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 each 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 Fidelity®
Corporate Bond ETF, Fidelity® Investment Grade Bond ETF, Fidelity® Investment
Grade Securitized ETF, Fidelity® Limited Term Bond ETF, and Fidelity® Total Bond
ETF.
Portfolio
Manager(s)
Matthew
Bartlett is Co-Portfolio Manager of Fidelity®
Corporate Bond ETF, which he has managed since 2016. He also manages other
funds. Since joining Fidelity Investments in 2005, Mr. Bartlett has worked as a
managing director of research, research analyst, and portfolio
manager.
Jay
Small is Co-Portfolio Manager of Fidelity®
Corporate Bond ETF, which he has managed since 2020. He also manages other
funds. Since joining Fidelity Investments in 2010, Mr. Small has worked as a
corporate bond trader and portfolio manager.
Dr.
Ben Tarlow is Co-Portfolio Manager of Fidelity®
Corporate Bond ETF, which he has managed since 2019. He also manages other
funds. Since joining Fidelity Investments in 2010, Dr. Tarlow has worked as a
quantitative analyst and portfolio manager.
Jeff
Moore is Co-Portfolio Manager of Fidelity®
Investment Grade Bond ETF, which he has managed since 2021. 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®
Investment Grade Bond ETF, which he has managed since 2021, and Co-Portfolio
Manager of Fidelity®
Total Bond ETF, which he has managed since 2015. He also manages other funds.
Since joining Fidelity Investments in 2005, Mr. Plage has worked as a trader and
portfolio manager.
Franco
Castagliuolo is Co-Portfolio Manager of Fidelity®
Investment Grade Securitized ETF, which he has managed since 2021, and
Co-Portfolio Manager of Fidelity®
Total Bond ETF, which he has managed since 2022. He also manages other funds.
Since joining Fidelity Investments in 1996, Mr. Castagliuolo has worked as a
research associate and portfolio manager.
Sean
Corcoran is Co-Portfolio Manager of Fidelity®
Investment Grade Securitized ETF, which he has managed since 2021. He also
manages other funds. Since joining Fidelity Investments in 2001, Mr. Corcoran
has worked as a research analyst and portfolio manager.
David
DeBiase is Co-Portfolio Manager of Fidelity®
Limited Term Bond ETF, which he has managed since 2018. He also manages other
funds. Since joining Fidelity Investments in 2006, Mr. DeBiase has worked as a
trader and portfolio manager.
Rob
Galusza is Co-Portfolio Manager of Fidelity®
Limited Term Bond ETF, which he has managed since 2014. He also manages other
funds. Since joining Fidelity Investments in 1987, Mr. Galusza has worked as a
research analyst and portfolio manager.
Julian
Potenza is Co-Portfolio Manager of Fidelity®
Limited Term Bond ETF, which he has managed since 2020. He also manages other
funds. Since joining Fidelity Investments in 2007, Mr. Potenza has worked as a
research analyst and portfolio manager.
Michael
Foggin is Co-Portfolio Manager of Fidelity®
Total Bond ETF, which he has managed since 2014. He also manages other funds.
Since joining Fidelity Investments in 2012, Mr. Foggin has worked as a portfolio
manager.
Benjamin
Harrison is Co-Portfolio Manager of Fidelity®
Total 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.
Celso
Munoz is Co-Portfolio Manager of Fidelity®
Total Bond ETF, which he has managed since 2016. He also manages other funds.
Since joining Fidelity Investments in 2005, Mr. Munoz has worked as a research
analyst and portfolio manager.
Ford
O'Neil is Co-Portfolio Manager of Fidelity®
Total Bond ETF, which he has managed since 2014. He also manages other funds.
Since joining Fidelity Investments in 1989, Mr. O'Neil has worked as a research
analyst 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)
Each
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® Corporate Bond ETF,
Fidelity® Investment Grade Bond ETF, Fidelity® Investment Grade Securitized ETF,
Fidelity® Limited Term Bond ETF, and Fidelity® Total Bond ETF with limited
exceptions.
For
Fidelity®
Limited Term Bond ETF, the total management fee for the fiscal year ended
August
31, 2023,
was 0.32% of the fund's average net assets. On April 1, 2023, Fidelity® Limited
Term Bond ETF's annual management fee rate has been reduced to 0.25% of its
average net assets.
The
annual management fee rate for Fidelity®
Corporate Bond ETF, Fidelity®
Investment Grade Bond ETF, Fidelity®
Investment Grade Securitized ETF, and Fidelity®
Total Bond ETF, as a percentage of each fund's average net assets, is shown in
the following table:
|
Fund |
Management
Fee Rate |
|
Fidelity®
Corporate Bond ETF |
0.36% |
|
Fidelity®
Investment Grade Bond ETF |
0.36% |
|
Fidelity®
Investment Grade Securitized ETF |
0.36% |
|
Fidelity®
Total Bond ETF |
0.36% |
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 each fund is available in each fund's semi-annual
report for the fiscal period ended February 28, 2023 and Fidelity®
Limited Term Bond ETF's annual report for the fiscal period ended August 31,
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.
FMR
has contractually agreed to reimburse Fidelity®
Investment Grade Bond ETF to the extent proxy and shareholder meeting expenses
exceed 0.003% of the fund's average net assets. This arrangement will remain in
effect through December 31, 2024. FMR may not terminate this arrangement before
the expiration date without the approval of the Board of Trustees and may extend
it in its discretion after that date.
FDC
distributes each 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
each fund will not make direct payments for distribution or shareholder support
services, each fund has adopted a Distribution and Service Plan pursuant to
Rule 12b-1 under the 1940 Act with respect to its shares. Each 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 each 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 each fund
has authorized such payments for shares of each fund.
If
payments made by the Adviser to FDC or to intermediaries under a Distribution
and Service Plan were considered to be paid out of a 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 funds or FDC. This
prospectus and the related SAI do not constitute an offer by the funds or by FDC
to sell shares of the funds to, or to buy shares of the funds from, any person
to whom it is unlawful to make such offer.
State
Street Bank and Trust Company serves as each 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 PricewaterhouseCoopers 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®
Corporate Bond ETF |
|
|
|
Years
ended August 31, |
|
2023
|
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
Selected
Per-Share Data |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, beginning of period |
$ |
46.23 |
$ |
56.09 |
$ |
55.93 |
$ |
53.26 |
$ |
48.64 |
|
Income
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss) A,B |
|
1.663
|
|
1.339
|
|
1.321
|
|
1.546
|
|
1.732
|
|
Net
realized and unrealized gain (loss) |
|
(1.142)
|
|
(9.824)
|
|
.387
|
|
2.655
|
|
4.610
|
|
Total
from investment operations |
|
.521
|
|
(8.485)
|
|
1.708
|
|
4.201
|
|
6.342
|
|
Distributions
from net investment income |
|
(1.661)
|
|
(1.375)
|
|
(1.308)
|
|
(1.531)
|
|
(1.722)
|
|
Distributions
from net realized gain |
|
-
|
|
-
|
|
(.244)
|
|
-
|
|
-
|
|
Total
distributions |
|
(1.661)
|
|
(1.375)
|
|
(1.552)
|
|
(1.531)
|
|
(1.722)
|
|
Net
asset value, end of period |
$ |
45.09 |
$ |
46.23 |
$ |
56.09 |
$ |
55.93 |
$ |
53.26 |
|
Total
Return C,D |
|
1.19%
|
|
(15.30)%
|
|
3.11%
|
|
8.06%
|
|
13.39%
|
|
Ratios
to Average Net Assets B,E,F |
|
|
|
|
|
|
|
|
|
|
|
Expenses
before reductions |
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
Expenses
net of fee waivers, if any |
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
Expenses
net of all reductions |
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
Net
investment income (loss) |
|
3.68%
|
|
2.60%
|
|
2.38%
|
|
2.88%
|
|
3.45%
|
|
Supplemental
Data |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
$ |
171,347 |
$ |
159,490 |
$ |
294,461 |
$ |
206,932 |
$ |
127,822 |
|
Portfolio
turnover rate G |
|
28%
H |
|
32%
H |
|
26%
H |
|
31%
H |
|
40%
|
ACalculated
based on average shares outstanding during the period.
BNet
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.
CTotal
returns would have been lower if certain expenses had not been reduced during
the applicable periods shown.
DBased
on net asset value.
EFees
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.
FExpense
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.
GAmount
does not include the portfolio activity of any underlying mutual funds or
exchange-traded funds (ETFs).
HPortfolio
turnover rate excludes securities received or delivered
in-kind.
|
Fidelity®
Investment Grade Bond ETF |
|
|
|
Years
ended August 31, |
|
2023
|
|
2022 |
|
2021 A
|
|
Selected
Per-Share Data |
|
|
|
|
|
|
|
Net
asset value, beginning of period |
$ |
44.05 |
$ |
50.76 |
$ |
50.00 |
|
Income
from Investment Operations |
|
|
|
|
|
|
|
Net
investment income (loss) B,C |
|
1.615
|
|
.788
|
|
.287
|
|
Net
realized and unrealized gain (loss) |
|
(1.987)
|
|
(6.657)
|
|
.790
|
|
Total
from investment operations |
|
(.372)
|
|
(5.869)
|
|
1.077
|
|
Distributions
from net investment income |
|
(1.488)
|
|
(.841)
|
|
(.317)
|
|
Total
distributions |
|
(1.488)
|
|
(.841)
|
|
(.317)
|
|
Net
asset value, end of period |
$ |
42.19 |
$ |
44.05 |
$ |
50.76 |
|
Total
Return D,E,F |
|
(.83)%
|
|
(11.65)%
|
|
2.16%
|
|
Ratios
to Average Net Assets C,G,H |
|
|
|
|
|
|
|
Expenses
before reductions |
|
.36%
|
|
.36%
|
|
.36%
I |
|
Expenses
net of fee waivers, if any |
|
.36%
|
|
.36%
|
|
.36%
I |
|
Expenses
net of all reductions |
|
.36%
|
|
.36%
|
|
.36%
I |
|
Net
investment income (loss) |
|
3.80%
|
|
1.65%
|
|
1.14%
I |
|
Supplemental
Data |
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
$ |
29,531 |
$ |
6,607 |
$ |
10,151 |
|
Portfolio
turnover rate J |
|
190%
|
|
37%
K |
|
19%
L |
AFor
the period March 2, 2021 (commencement of operations) through August 31,
2021.
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.
DBased
on net asset value.
ETotal
returns for periods of less than one year are not annualized.
FTotal
returns would have been lower if certain expenses had not been reduced during
the applicable periods shown.
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.
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).
KPortfolio
turnover rate excludes securities received or delivered
in-kind.
LAmount
not annualized.
|
Fidelity®
Investment Grade Securitized ETF |
|
|
|
Years
ended August 31, |
|
2023
|
|
2022 |
|
2021 A
|
|
Selected
Per-Share Data |
|
|
|
|
|
|
|
Net
asset value, beginning of period |
$ |
43.99 |
$ |
49.93 |
$ |
50.00 |
|
Income
from Investment Operations |
|
|
|
|
|
|
|
Net
investment income (loss) B,C |
|
1.365
|
|
.301
|
|
.023
|
|
Net
realized and unrealized gain (loss) |
|
(2.294)
|
|
(5.501)
|
|
.160
|
|
Total
from investment operations |
|
(.929)
|
|
(5.200)
|
|
.183
|
|
Distributions
from net investment income |
|
(1.381)
|
|
(.300)
|
|
(.078)
D |
|
Distributions
from net realized gain |
|
-
|
|
-
|
|
(.027)
D |
|
Tax
return of capital |
|
- |
|
(.440) |
|
(.145) |
|
Total
distributions |
|
(1.381)
|
|
(.740)
|
|
(.250)
|
|
Net
asset value, end of period |
$ |
41.68 |
$ |
43.99 |
$ |
49.93 |
|
Total
Return E,F,G |
|
(2.10)%
|
|
(10.49)%
|
|
.36%
|
|
Ratios
to Average Net Assets C,H,I |
|
|
|
|
|
|
|
Expenses
before reductions |
|
.37%
|
|
.36%
|
|
.36%
J |
|
Expenses
net of fee waivers, if any |
|
.36%
|
|
.36%
|
|
.36%
J |
|
Expenses
net of all reductions |
|
.36%
|
|
.36%
|
|
.36%
J |
|
Net
investment income (loss) |
|
3.22%
|
|
.63%
|
|
.09%
J |
|
Supplemental
Data |
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
$ |
3,126 |
$ |
3,299 |
$ |
9,986 |
|
Portfolio
turnover rate K |
|
865%
|
|
141%
|
|
65%
L |
AFor
the period March 2, 2021 (commencement of operations) through August 31,
2021.
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.
DThe
amount shown reflects reclassifications related to book to tax differences that
were made in the year shown.
EBased
on net asset value.
FTotal
returns for periods of less than one year are not annualized.
GTotal
returns would have been lower if certain expenses had not been reduced during
the applicable periods shown.
HFees
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.
IExpense
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.
JAnnualized.
KAmount
does not include the portfolio activity of any underlying mutual funds or
exchange-traded funds (ETFs).
LAmount
not annualized.
|
Fidelity®
Limited Term Bond ETF |
|
|
|
Years
ended August 31, |
|
2023
|
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
Selected
Per-Share Data |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, beginning of period |
$ |
48.55 |
$ |
52.44 |
$ |
52.52 |
$ |
51.07 |
$ |
49.42 |
|
Income
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss) A,B |
|
1.315
|
|
.539
|
|
.470
|
|
1.039
|
|
1.344
|
|
Net
realized and unrealized gain (loss) |
|
(.351)
|
|
(3.868)
|
|
(.044)
|
|
1.495
|
|
1.687
|
|
Total
from investment operations |
|
.964
|
|
(3.329)
|
|
.426
|
|
2.534
|
|
3.031
|
|
Distributions
from net investment income |
|
(1.364)
|
|
(.561)
|
|
(.486)
C |
|
(1.084)
|
|
(1.381)
|
|
Distributions
from net realized gain |
|
-
|
|
-
|
|
(.020)
C |
|
-
|
|
-
|
|
Total
distributions |
|
(1.364)
|
|
(.561)
|
|
(.506)
|
|
(1.084)
|
|
(1.381)
|
|
Net
asset value, end of period |
$ |
48.15 |
$ |
48.55 |
$ |
52.44 |
$ |
52.52 |
$ |
51.07 |
|
Total
Return D,E |
|
2.02%
|
|
(6.38)%
|
|
.83%
|
|
5.04%
|
|
6.22%
|
|
Ratios
to Average Net Assets B,F,G |
|
|
|
|
|
|
|
|
|
|
|
Expenses
before reductions |
|
.32%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
Expenses
net of fee waivers, if any |
|
.32%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
Expenses
net of all reductions |
|
.32%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
Net
investment income (loss) |
|
2.73%
|
|
1.07%
|
|
.90%
|
|
2.02%
|
|
2.69%
|
|
Supplemental
Data |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
$ |
175,732 |
$ |
240,324 |
$ |
283,197 |
$ |
181,184 |
$ |
127,663 |
|
Portfolio
turnover rate H,I |
|
59%
|
|
38%
|
|
75%
|
|
102%
|
|
32%
|
ACalculated
based on average shares outstanding during the period.
BNet
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.
CThe
amount shown reflects reclassifications related to book to tax differences that
were made in the year shown.
DTotal
returns would have been lower if certain expenses had not been reduced during
the applicable periods shown.
EBased
on net asset value.
FFees
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.
GExpense
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.
HAmount
does not include the portfolio activity of any underlying mutual funds or
exchange-traded funds (ETFs).
IPortfolio
turnover rate excludes securities received or delivered
in-kind.
|
Years
ended August 31, |
|
2023
|
|
2022 |
|
2021 |
|
2020 |
|
2019 |
|
Selected
Per-Share Data |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, beginning of period |
$ |
46.49 |
$ |
53.63 |
$ |
54.71 |
$ |
51.95 |
$ |
48.80 |
|
Income
from Investment Operations |
|
|
|
|
|
|
|
|
|
|
|
Net
investment income (loss) A,B |
|
1.935
|
|
1.120
|
|
.988
|
|
1.323
|
|
1.502
|
|
Net
realized and unrealized gain (loss) |
|
(1.858)
|
|
(7.137)
|
|
.023
|
|
2.812
|
|
3.147
|
|
Total
from investment operations |
|
.077
|
|
(6.017)
|
|
1.011
|
|
4.135
|
|
4.649
|
|
Distributions
from net investment income |
|
(1.847)
|
|
(1.123)
|
|
(.951)
C |
|
(1.375)
|
|
(1.499)
|
|
Distributions
from net realized gain |
|
-
|
|
-
|
|
(1.143)
C |
|
-
|
|
-
|
|
Total
distributions |
|
(1.847)
|
|
(1.123)
|
|
(2.094)
|
|
(1.375)
|
|
(1.499)
|
|
Net
asset value, end of period |
$ |
44.72 |
$ |
46.49 |
$ |
53.63 |
$ |
54.71 |
$ |
51.95 |
|
Total
Return D,E |
|
.20%
|
|
(11.32)%
|
|
1.90%
|
|
8.10%
|
|
9.73%
|
|
Ratios
to Average Net Assets B,F,G |
|
|
|
|
|
|
|
|
|
|
|
Expenses
before reductions |
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
Expenses
net of fee waivers, if any |
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
Expenses
net of all reductions |
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
.36%
|
|
Net
investment income (loss) |
|
4.29%
|
|
2.24%
|
|
1.84%
|
|
2.51%
|
|
3.01%
|
|
Supplemental
Data |
|
|
|
|
|
|
|
|
|
|
|
Net
assets, end of period (000 omitted) |
$ |
4,731,167 |
$ |
2,289,659 |
$ |
2,048,646 |
$ |
1,365,222 |
$ |
761,195 |
|
Portfolio
turnover rate H,I |
|
233%
|
|
48%
|
|
117%
|
|
112%
|
|
150%
|
ACalculated
based on average shares outstanding during the period.
BNet
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.
CThe
amount shown reflects reclassifications related to book to tax differences that
were made in the year shown.
DBased
on net asset value.
ETotal
returns would have been lower if certain expenses had not been reduced during
the applicable periods shown.
FFees
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.
GExpense
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.
HPortfolio
turnover rate excludes securities received or delivered
in-kind.
IAmount
does not include the portfolio activity of any underlying mutual funds or
exchange-traded funds (ETFs).
Additional
Index Information
Bloomberg
U.S. 1-5 Year Government/Credit Bond Index is
a market value-weighted index of fixed-rate investment-grade debt securities
with maturities from one to five years from the U.S. Treasury, U.S.
Government-Related, and U.S. Corporate Indexes.
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).
Bloomberg
U.S. Credit Bond Index
is a market value-weighted index of investment-grade corporate fixed-rate debt
issues with maturities of one year or more.
Bloomberg
U.S. Securitized Index is
a market value-weighted index of agency mortgage-backed pass-through securities
with a weighted average maturity of at least one year.
Bloomberg
U.S. Universal Bond Index
represents the union of the Bloomberg U.S. Aggregate Bond Index, the Bloomberg
U.S. Corporate High Yield Bond Index, the Bloomberg 144A Bond Index, the
Bloomberg Eurodollar Bond Index, the Bloomberg Emerging Markets Aggregate USD
Bond Index, and the non-ERISA portion of the Bloomberg U.S. CMBS Index.
Municipal debt, private placements, and non-dollar-denominated issues are
excluded from the index. The only constituent of the index that includes
floating-rate debt is the Bloomberg Emerging Markets Aggregate USD Bond
Index.
Fidelity
Limited Term Composite IndexSM
is a customized blend of unmanaged indexes, weighted as follows: Bloomberg U.S.
1-5 Year Credit Bond Index - 80%; and Bloomberg U.S. 1-5 Year Government Bond
Index - 20%.
You
can obtain additional information about the funds. A description of each fund's
policies and procedures for disclosing its holdings is available in its
Statement of Additional Information (SAI) and on Fidelity's web sites. Each
fund's SAI also includes more detailed information about the fund and its
investments. The SAIs are incorporated
herein by reference (legally form a part of the prospectus). Each fund's annual
and semi-annual reports also include additional information. Each 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 a 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
SAIs, the funds' 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 funds, including the funds' SAIs, 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.
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the Fidelity Investments Logo and all other Fidelity trademarks or service marks
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that are used herein are trademarks or service marks of their respective owners.
© 2023 FMR LLC. All rights reserved.
|
1.9870493.107 |
FIXETF-PRO-1223 |
