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 |
$ |
9 |
|
3
years |
$ |
27 |
|
5
years |
$ |
47 |
|
10
years |
$ |
108 |
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 4%
of the average value of its portfolio.
Principal
Investment Strategies
- Investing
at least 80% of assets in securities included in the fund's underlying index.
The fund's underlying index is the MSCI USA IMI Utilities 25/50 Index, which
represents the performance of the utilities sector in the U.S. equity
market.
- Using
a representative sampling indexing strategy to manage the fund.
"Representative sampling" is an indexing strategy that involves investing in a
representative sample of securities that collectively has an investment
profile similar to the index. The securities selected are expected to have, in
the aggregate, investment characteristics (based on factors such as market
capitalization and industry weightings), fundamental characteristics (such as
return variability and yield) and liquidity measures similar to those of the
index. The fund may or may not hold all of the securities in the MSCI USA IMI
Utilities 25/50 Index.
Principal
Investment Risks
Stock
markets and, as a result, stock market indexes, are volatile and can decline
significantly in response to adverse issuer, political, regulatory, market, or
economic developments. Different parts of the market, including different market
sectors, and different types of securities can react differently to these
developments.
- Utilities
Industry Concentration.
The
utilities industries can be significantly affected by government regulation,
interest rate changes, financing difficulties, supply and demand of services or
fuel, intense competition, natural resource conservation, and commodity price
fluctuations.
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.
The
value of securities of smaller, less well-known issuers can be more volatile
than that of larger issuers.
- 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.
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
performance of the fund and its underlying index may vary somewhat due to
factors such as fees and expenses of the fund, transaction costs, sample
selection, regulatory restrictions, and timing differences associated with
additions to and deletions from the index. Errors in the construction or
calculation of the index may occur from time to time and may not be identified
and corrected for some period of time, which may have an adverse impact on the
fund and its shareholders.
The
fund is managed with a passive investment strategy, attempting to track the
performance of an unmanaged index of securities, regardless of the current or
projected performance of the fund's index or of the actual securities included
in the index. This differs from an actively managed fund, which typically seeks
to outperform a benchmark index. As a result, the fund's performance could be
lower than actively managed funds that may shift their portfolio assets to take
advantage of market opportunities or lessen the impact of a market decline or a
decline in the value of one or more issuers.
The
fund may be concentrated to approximately the same extent that the fund's index
concentrates in the securities of issuers in a particular industry or group of
industries.
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.
In
addition, the fund is classified as non-diversified under the Investment Company
Act of 1940 (1940 Act), which means that it has the ability to invest a greater
portion of assets in securities of a smaller number of individual issuers than a
diversified fund. As a result, changes in the market value of a single
investment could cause greater fluctuations in share price than would occur in a
more diversified fund.
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.
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.
Prior
to December 1, 2020, the fund compared its performance to a different benchmark.
The fund's historical performance may not represent its current investment
policies.
Visit
www.fidelity.com for
more recent performance information.
Year-by-Year
Returns
|
|
|
2014 |
2015 |
2016 |
2017 |
2018 |
2019 |
2020 |
2021 |
2022 |
|
|
|
26.83%
|
-4.80%
|
17.42%
|
12.33%
|
4.40%
|
24.92%
|
-0.54%
|
17.38%
|
1.23%
|
|
During
the periods shown in the chart: |
Returns |
Quarter
ended |
|
Highest
Quarter Return |
15.18% |
March
31, 2016 |
|
Lowest
Quarter Return |
-14.12% |
March
31, 2020 |
|
Year-to-Date
Return |
-14.76% |
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®
MSCI Utilities Index ETF |
|
|
|
|
Return
Before Taxes |
1.23%
|
9.04%
|
%
|
|
Return
After Taxes on Distributions |
0.57%
|
8.25%
|
%
|
|
Return
After Taxes on Distributions and Sale of Fund
Shares
|
1.18%
|
7.02%
|
%
|
|
Fidelity
MSCI Utilities Index ETF Capped Linked Index℠
(reflects
no deduction for fees, expenses, or taxes) |
1.28% |
9.15% |
% |
|
S&P
500® Index
(reflects
no deduction for fees, expenses, or taxes) |
-18.11% |
9.42% |
% |
|
|
|
|
|
Investment
Adviser
Fidelity
Management & Research Company LLC (FMR) (the Adviser) is the fund's manager.
BlackRock Fund Advisors serves as a sub-adviser for the fund.
Portfolio
Manager(s)
Jennifer
Hsui (Portfolio Manager) has managed the fund since 2013.
Paul
Whitehead (Portfolio Manager) has managed the fund since 2022.
Peter
Sietsema (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®
MSCI Communication Services Index ETF seeks to provide investment returns that
correspond, before fees and expenses, generally to the performance of the MSCI
USA IMI Communication Services 25/50 Index.
Principal
Investment Strategies
BlackRock
Fund Advisors (BFA) invests at least 80% of the fund's assets in securities
included in the fund's underlying index. The fund's underlying index is the MSCI
USA IMI Communication Services 25/50 Index, which consists of U.S. companies
that are classified in the communication services sector according to the Global
Industry Classification Standard (GICS®).
The GICS®
communication services sector contains companies that provide interactive media
and services including search engines, social media and networking platforms;
companies that produce and sell entertainment and media such as movies, TV,
cable, radio, internet and satellite companies; interactive gaming and home
entertainment products and services; advertising; publishing and public
relations companies; operators of fixed-line telecommunications networks and
companies; providers of cellular or wireless communications services and
equipment; and providers of communications and high-density data transmission
services and equipment.
The
fund may not always hold all of the same securities as the MSCI USA IMI
Communication Services 25/50 Index. BFA uses a representative sampling indexing
strategy to manage the fund. "Representative sampling" is an indexing strategy
that involves investing in a representative sample of securities that
collectively has an investment profile similar to the index. The securities
selected are expected to have, in the aggregate, investment characteristics
(based on factors such as market capitalization and industry weightings),
fundamental characteristics (such as return variability and yield) and liquidity
measures similar to those of the index.
The
fund may not track the MSCI USA IMI Communication Services 25/50 Index because
differences between the index and the fund's portfolio can cause differences in
performance. In addition, expenses, transaction costs, and differences between
how and when the fund and the index are valued can cause differences in
performance.
The
fund may concentrate its investments in a particular industry or group of
related industries to approximately the same extent that the MSCI USA IMI
Communication Services 25/50 Index is concentrated. In addition, the fund may
invest a significant percentage of its assets in relatively few companies. The
fund is classified as non-diversified.
If
BFA's strategies do not work as intended, the fund may not achieve its
objective.
Investment
Objective
Fidelity®
MSCI Consumer Discretionary Index ETF seeks to provide investment returns that
correspond, before fees and expenses, generally to the performance of the MSCI
USA IMI Consumer Discretionary 25/50 Index.
Principal
Investment Strategies
BFA
invests at least 80% of the fund's assets in securities included in the fund's
underlying index. The fund's underlying index is the MSCI USA IMI Consumer
Discretionary 25/50 Index, which consists of securities of U.S. companies that
are classified in the consumer discretionary sector according to the
Global Industry Classification Standard (GICS®). The GICS®
consumer discretionary sector encompasses those industries that tend to be the
most sensitive to economic cycles. Its manufacturing segment includes
automotive, household durable goods, textiles and apparel and leisure equipment.
The services segment includes hotels, restaurants and other leisure facilities,
media production and services, and consumer retailing and services.
The
fund may not always hold all of the same securities as the MSCI USA IMI Consumer
Discretionary 25/50 Index. BFA uses a representative sampling indexing strategy
to manage the fund. "Representative sampling" is an indexing strategy that
involves investing in a representative sample of securities that collectively
has an investment profile similar to the index. The securities selected are
expected to have, in the aggregate, investment characteristics (based on factors
such as market capitalization and industry weightings), fundamental
characteristics (such as return variability and yield) and liquidity measures
similar to those of the index.
The
fund may not track the MSCI USA IMI Consumer Discretionary 25/50 Index because
differences between the index and the fund's portfolio can cause differences in
performance. In addition, expenses, transaction costs, and differences between
how and when the fund and the index are valued can cause differences in
performance.
The
fund may concentrate its investments in a particular industry or group of
related industries to approximately the same extent that the MSCI USA IMI
Consumer Discretionary 25/50 Index is concentrated. In addition, the fund may
invest a significant percentage of its assets in relatively few companies. The
fund is classified as non-diversified.
If
BFA's strategies do not work as intended, the fund may not achieve its
objective.
Investment
Objective
Fidelity®
MSCI Consumer Staples Index ETF seeks to provide investment returns that
correspond, before fees and expenses, generally to the performance of the MSCI
USA IMI Consumer Staples 25/50 Index.
Principal
Investment Strategies
BFA
invests at least 80% of the fund's assets in securities included in the fund's
underlying index. The fund's underlying index is the MSCI USA IMI Consumer
Staples 25/50 Index, which consists of U.S. companies that are classified in the
consumer staples sector according to the GICS®. The GICS® consumer staples
sector comprises companies with businesses that are less sensitive to economic
cycles. It includes manufacturers and distributors of food, beverages and
tobacco and producers of non-durable household goods and personal products. It
also includes food and drug retailing companies as well as hypermarkets and
consumer super centers.
The
fund may not always hold all of the same securities as the MSCI USA IMI Consumer
Staples 25/50 Index. BFA uses a representative sampling indexing strategy to
manage the fund. "Representative sampling" is an indexing strategy that involves
investing in a representative sample of securities that collectively has an
investment profile similar to the index. The securities selected are expected to
have, in the aggregate, investment characteristics (based on factors such as
market capitalization and industry weightings), fundamental characteristics
(such as return variability and yield) and liquidity measures similar to those
of the index.
The
fund may not track the MSCI USA IMI Consumer Staples 25/50 Index because
differences between the index and the fund's portfolio can cause differences in
performance. In addition, expenses, transaction costs, and differences between
how and when the fund and the index are valued can cause differences in
performance.
The
fund may concentrate its investments in a particular industry or group of
related industries to approximately the same extent that the MSCI USA IMI
Consumer Staples 25/50 Index is concentrated. In addition, the fund may invest a
significant percentage of its assets in relatively few companies. The fund is
classified as non-diversified.
If
BFA's strategies do not work as intended, the fund may not achieve its
objective.
Investment
Objective
Fidelity®
MSCI Energy Index ETF seeks to provide investment returns that correspond,
before fees and expenses, generally to the performance of the MSCI USA IMI
Energy 25/50 Index.
Principal
Investment Strategies
BFA
invests at least 80% of the fund's assets in securities included in the fund's
underlying index. The fund's underlying index is the MSCI USA IMI Energy 25/50
Index, which consists of U.S. companies that are classified in the energy sector
according to the GICS®. The GICS® energy sector comprises companies principally
engaged in the construction or provision of oil rigs, drilling equipment and
other energy related service and equipment, including seismic data collection,
and companies engaged in the exploration, production, marketing, refining and/or
transportation of oil and gas products, coal and other consumable
fuels.
The
fund may not always hold all of the same securities as the MSCI USA IMI Energy
25/50 Index. BFA uses a representative sampling indexing strategy to manage the
fund. "Representative sampling" is an indexing strategy that involves investing
in a representative sample of securities that collectively has an investment
profile similar to the index. The securities selected are expected to have, in
the aggregate, investment characteristics (based on factors such as market
capitalization and industry weightings), fundamental characteristics (such as
return variability and yield) and liquidity measures similar to those of the
index.
The
fund may not track the MSCI USA IMI Energy 25/50 Index because differences
between the index and the fund's portfolio can cause differences in performance.
In addition, expenses, transaction costs, and differences between how and when
the fund and the index are valued can cause differences in
performance.
The
fund may concentrate its investments in a particular industry or group of
related industries to approximately the same extent that the MSCI USA IMI Energy
25/50 Index is concentrated. In addition, the fund may invest a significant
percentage of its assets in relatively few companies. The fund is classified as
non-diversified.
If
BFA's strategies do not work as intended, the fund may not achieve its
objective.
Investment
Objective
Fidelity®
MSCI Financials Index ETF seeks to provide investment returns that correspond,
before fees and expenses, generally to the performance of the MSCI USA IMI
Financials 25/50 Index.
Principal
Investment Strategies
BFA
invests at least 80% of the fund's assets in securities included in the fund's
underlying index. The fund's underlying index is the MSCI USA IMI Financials
25/50 Index, which consists of U.S. companies that are classified in the
financial sector according to the GICS®. The GICS® financial sector contains
companies involved in activities such as banking, mortgage finance, including
mortgage REITS, consumer finance, specialized finance, investment banking and
brokerage, asset management and custody, corporate lending, insurance, and
financial investment.
The
fund may not always hold all of the same securities as the MSCI USA IMI
Financials 25/50 Index. BFA uses a representative sampling indexing strategy to
manage the fund. "Representative sampling" is an indexing strategy that involves
investing in a representative sample of securities that collectively has an
investment profile similar to the index. The securities selected are expected to
have, in the aggregate, investment characteristics (based on factors such as
market capitalization and industry weightings), fundamental characteristics
(such as return variability and yield) and liquidity measures similar to those
of the index.
The
fund may not track the MSCI USA IMI Financials 25/50 Index because differences
between the index and the fund's portfolio can cause differences in performance.
In addition, expenses, transaction costs, and differences between how and when
the fund and the index are valued can cause differences in
performance.
The
fund may concentrate its investments in a particular industry or group of
related industries to approximately the same extent that the MSCI USA IMI
Financials 25/50 Index is concentrated. In addition, the fund may invest a
significant percentage of its assets in relatively few companies. The fund is
classified as non-diversified.
If
BFA's strategies do not work as intended, the fund may not achieve its
objective.
Investment
Objective
Fidelity®
MSCI Health Care Index ETF seeks to provide investment returns that correspond,
before fees and expenses, generally to the performance of the MSCI USA IMI
Health Care 25/50 Index.
Principal
Investment Strategies
BFA
invests at least 80% of the fund's assets in securities included in the fund's
underlying index. The fund's underlying index is the MSCI USA IMI Health Care
25/50 Index, which consists of U.S. companies that are classified in the health
care sector according to the GICS®. The GICS® health care sector encompasses two
main industry groups. The first group includes companies that manufacture health
care equipment and supply or provide health care related services, including
distributors of health care products, providers of basic health-care services,
and owners and operators of health care facilities and organizations. The second
group includes companies primarily involved in the research, development,
production and marketing of pharmaceuticals and biotechnology
products.
The
fund may not always hold all of the same securities as the MSCI USA IMI Health
Care 25/50 Index. BFA uses a representative sampling indexing strategy to manage
the fund. "Representative sampling" is an indexing strategy that involves
investing in a representative sample of securities that collectively has an
investment profile similar to the index. The securities selected are expected to
have, in the aggregate, investment characteristics (based on factors such as
market capitalization and industry weightings), fundamental characteristics
(such as return variability and yield) and liquidity measures similar to those
of the index.
The
fund may not track the MSCI USA IMI Health Care 25/50 Index because differences
between the index and the fund's portfolio can cause differences in performance.
In addition, expenses, transaction costs, and differences between how and when
the fund and the index are valued can cause differences in
performance.
The
fund may concentrate its investments in a particular industry or group of
related industries to approximately the same extent that the MSCI USA IMI Health
Care 25/50 Index is concentrated. In addition, the fund may invest a significant
percentage of its assets in relatively few companies. The fund is classified as
non-diversified.
If
BFA's strategies do not work as intended, the fund may not achieve its
objective.
Investment
Objective
Fidelity®
MSCI Industrials Index ETF seeks to provide investment returns that correspond,
before fees and expenses, generally to the performance of the MSCI USA IMI
Industrials 25/25 Index.
Principal
Investment Strategies
BFA
invests at least 80% of the fund's assets in securities included in the fund's
underlying index. The fund's underlying index is the MSCI USA IMI Industrials
25/25 Index, which consists of U.S. companies that are classified in the
industrial sector according to the GICS®. The GICS® industrials sector includes
companies principally engaged in one of the following activities: the
manufacture and distribution of capital goods, including aerospace and defense,
construction, engineering and building products, electrical equipment and
industrial machinery, the provision of commercial services and supplies,
including printing, employment, environmental and office services and the
provision of transportation services, including airlines, couriers, marine, road
and rail and transportation infrastructure.
The
fund may not always hold all of the same securities as the MSCI USA IMI
Industrials 25/25 Index. BFA uses a representative sampling indexing strategy to
manage the fund. "Representative sampling" is an indexing strategy that involves
investing in a representative sample of securities that collectively has an
investment profile similar to the index. The securities selected are expected to
have, in the aggregate, investment characteristics (based on factors such as
market capitalization and industry weightings), fundamental characteristics
(such as return variability and yield) and liquidity measures similar to those
of the index.
The
fund may not track the MSCI USA IMI Industrials 25/25 Index because differences
between the index and the fund's portfolio can cause differences in performance.
In addition, expenses, transaction costs, and differences between how and when
the fund and the index are valued can cause differences in
performance.
The
fund may concentrate its investments in a particular industry or group of
related industries to approximately the same extent that the MSCI USA IMI
Industrials 25/25 Index is concentrated. In addition, the fund may invest a
significant percentage of its assets in relatively few companies.
If
BFA's strategies do not work as intended, the fund may not achieve its
objective.
Investment
Objective
Fidelity®
MSCI Information Technology Index ETF seeks to provide investment returns that
correspond, before fees and expenses, generally to the performance of the MSCI
USA IMI Information Technology 25/50 Index.
Principal
Investment Strategies
BFA
invests at least 80% of the fund's assets in securities included in the fund's
underlying index. The fund's underlying index is the MSCI USA IMI Information
Technology 25/50 Index, which consists of U.S. companies that are classified in
the information technology sector according to the GICS®. The GICS® information
technology sector covers the following general areas: technology software and
services, including companies that primarily develop software in various fields
such as the Internet, applications, systems, databases management and/or home
entertainment, and companies that provide information technology consulting and
services, as well as data processing and outsourced services; technology
hardware and equipment, including manufacturers and distributors of
communications equipment, computers and peripherals, electronic equipment and
related instruments; and semiconductors and semiconductor equipment
manufacturers.
The
fund may not always hold all of the same securities as the MSCI USA IMI
Information Technology 25/50 Index. BFA uses a representative sampling indexing
strategy to manage the fund. "Representative sampling" is an indexing strategy
that involves investing in a representative sample of securities that
collectively has an investment profile similar to the index. The securities
selected are expected to have, in the aggregate, investment characteristics
(based on factors such as market capitalization and industry weightings),
fundamental characteristics (such as return variability and yield) and liquidity
measures similar to those of the index.
The
fund may not track the MSCI USA IMI Information Technology 25/50 Index because
differences between the index and the fund's portfolio can cause differences in
performance. In addition, expenses, transaction costs, and differences between
how and when the fund and the index are valued can cause differences in
performance.
The
fund may concentrate its investments in a particular industry or group of
related industries to approximately the same extent that the MSCI USA IMI
Information Technology 25/50 Index is concentrated. In addition, the fund may
invest a significant percentage of its assets in relatively few companies. The
fund is classified as non-diversified.
If
BFA's strategies do not work as intended, the fund may not achieve its
objective.
Investment
Objective
Fidelity®
MSCI Materials Index ETF seeks to provide investment returns that correspond,
before fees and expenses, generally to the performance of the MSCI USA IMI
Materials 25/50 Index.
Principal
Investment Strategies
BFA
invests at least 80% of the fund's assets in securities included in the fund's
underlying index. The fund's underlying index is the MSCI USA IMI Materials
25/50 Index, which consists of U.S. companies that are classified in the
materials sector according to the GICS®. The GICS® materials sector encompasses
a wide range of commodity-related manufacturing industries. Included in this
sector are companies that manufacture chemicals, construction materials, glass,
paper, forest products and related packaging products, and metals, minerals and
mining companies, including producers of steel.
The
fund may not always hold all of the same securities as the MSCI USA IMI
Materials 25/50 Index. BFA uses a representative sampling indexing strategy to
manage the fund. "Representative sampling" is an indexing strategy that involves
investing in a representative sample of securities that collectively has an
investment profile similar to the index. The securities selected are expected to
have, in the aggregate, investment characteristics (based on factors such as
market capitalization and industry weightings), fundamental characteristics
(such as return variability and yield) and liquidity measures similar to those
of the index.
The
fund may not track the MSCI USA IMI Materials 25/50 Index because differences
between the index and the fund's portfolio can cause differences in performance.
In addition, expenses, transaction costs, and differences between how and when
the fund and the index are valued can cause differences in
performance.
The
fund may concentrate its investments in a particular industry or group of
related industries to approximately the same extent that the MSCI USA IMI
Materials 25/50 Index is concentrated. In addition, the fund may invest a
significant percentage of its assets in relatively few companies. The fund is
classified as non-diversified.
If
BFA's strategies do not work as intended, the fund may not achieve its
objective.
Investment
Objective
Fidelity®
MSCI Real Estate Index ETF seeks to provide investment returns that correspond,
before fees and expenses, generally to the performance of the MSCI USA IMI Real
Estate 25/25 Index.
Principal
Investment Strategies
BFA
invests at least 80% of the fund's assets in securities included in the fund's
underlying index. The fund's underlying index is the MSCI USA IM Real Estate
25/25 Index, which consists of securities of U.S. companies from the parent MSCI
USA IMI Index that are classified in the real estate sector according to the
GICS®. The GICS® real estate sector encompasses companies that own, operate and
develop real estate properties, including offices, hotels, malls, shopping
centers, data centers, industrial properties, apartment buildings, hospitals,
senior living facilities, self-storage facilities, and other real estate
properties.
The
fund may not always hold all of the same securities as the MSCI USA IMI Real
Estate 25/25 Index. BFA uses a representative sampling indexing strategy to
manage the fund. "Representative sampling" is an indexing strategy that involves
investing in a representative sample of securities that collectively has an
investment profile similar to the index. The securities selected are expected to
have, in the aggregate, investment characteristics (based on factors such as
market capitalization and industry weightings), fundamental characteristics
(such as return variability and yield) and liquidity measures similar to those
of the index.
The
fund may not track the MSCI USA IMI Real Estate 25/25 Index because differences
between the index and the fund's portfolio can cause differences in performance.
In addition, expenses, transaction costs, and differences between how and when
the fund and the index are valued can cause differences in
performance.
The
fund may concentrate its investments in a particular industry or group of
related industries to approximately the same extent that the MSCI USA IMI Real
Estate 25/25 Index is concentrated.
If
BFA's strategies do not work as intended, the fund may not achieve its
objective.
Investment
Objective
Fidelity®
MSCI Utilities Index ETF seeks to provide investment returns that correspond,
before fees and expenses, generally to the performance of the MSCI USA IMI
Utilities 25/50 Index.
Principal
Investment Strategies
BFA
invests at least 80% of the fund's assets in securities included in the fund's
underlying index. The fund's underlying index is the MSCI USA IMI Utilities
25/50 Index, which consists of U.S. companies that are classified in the
utilities sector according to the GICS®. The GICS® utilities sector encompasses
companies considered to be electric, gas or water utilities, or companies that
operate as independent producers and/or distributors of power.
The
fund may not always hold all of the same securities as the MSCI USA IMI
Utilities 25/50 Index. BFA uses a representative sampling indexing strategy to
manage the fund. "Representative sampling" is an indexing strategy that involves
investing in a representative sample of securities that collectively has an
investment profile similar to the index. The securities selected are expected to
have, in the aggregate, investment characteristics (based on factors such as
market capitalization and industry weightings), fundamental characteristics
(such as return variability and yield) and liquidity measures similar to those
of the index.
The
fund may not track the MSCI USA IMI Utilities 25/50 Index because differences
between the index and the fund's portfolio can cause differences in performance.
In addition, expenses, transaction costs, and differences between how and when
the fund and the index are valued can cause differences in
performance.
The
fund may concentrate its investments in a particular industry or group of
related industries to approximately the same extent that the MSCI USA IMI
Utilities 25/50 Index is concentrated. In addition, the fund may invest a
significant percentage of its assets in relatively few companies. The fund is
classified as non-diversified.
If
BFA's strategies do not work as intended, the fund may not achieve its
objective.
Description
of Principal Security Types
Equity
securities
represent an ownership interest, or the right to acquire an ownership interest,
in an issuer. Different types of equity securities provide different voting and
dividend rights and priority in the event of the bankruptcy of the
issuer. Equity securities include common stocks, preferred stocks,
convertible securities, and warrants.
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 NAV changes 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 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. Because each fund's investments may be concentrated in a particular
industry or group of related industries to approximately the same extent that
the underlying index is concentrated, the fund's performance could depend
heavily on the performance of that industry or group of industries and could be
more volatile than the performance of less concentrated funds. In addition,
because Fidelity®
MSCI Communication Services Index ETF, Fidelity® MSCI
Consumer Discretionary Index ETF, Fidelity®
MSCI Consumer Staples Index ETF, Fidelity®
MSCI Energy Index ETF, Fidelity®
MSCI Financials Index ETF, Fidelity®
MSCI Health Care Index ETF, Fidelity®
MSCI Information Technology Index ETF, Fidelity®
MSCI Materials Index ETF, and Fidelity®
MSCI Utilities Index ETF may invest a significant percentage of assets in a
single issuer, the fund's performance could be closely tied to that one issuer
and could be more volatile than the performance of more diversified funds. 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:
Stock
Market Volatility.
The value of equity securities fluctuates in response to issuer, political,
market, and economic developments. Fluctuations, especially in foreign markets,
can be dramatic over the short as well as long term, and different parts of the
market, including different market sectors, and different types of equity
securities can react differently to these developments. For example, stocks of
companies in one sector can react differently from those in another, large cap
stocks can react differently from small cap stocks, and "growth" stocks can
react differently from "value" stocks. Issuer, political, or economic
developments can affect a single issuer, issuers within an industry or economic
sector or geographic region, or the market as a whole. Changes in the financial
condition of a single issuer can impact the market as a whole. Terrorism and
related geo-political risks have led, and may in the future lead, to increased
short-term market volatility and may have adverse long-term effects on world
economies and markets generally.
Industry
Concentration.
Market conditions, interest rates, and economic, regulatory, or financial
developments could significantly affect a single industry or group of related
industries, and the securities of companies in that industry or group of
industries could react similarly to these or other developments. In addition,
from time to time, a small number of companies may represent a large portion of
a single industry or group of related industries as a whole, and these companies
can be sensitive to adverse economic, regulatory, or financial
developments.
The
communication
services
industries can be significantly affected by federal and state government
regulation, intense competition, and obsolescence of existing technology. Many
communication services companies compete for market share and can be impacted by
competition from new market entrants, consumer and business confidence and
spending, changes in consumer and business preferences, and general economic
conditions. Certain communication services companies may be more susceptible
than other companies to hacking and potential theft of proprietary or consumer
information or disruptions in service, which could adversely affect their
businesses.
The
consumer
discretionary
industries can be significantly affected by the performance of the overall
economy, interest rates, competition, and consumer confidence. Success can
depend heavily on disposable household income and consumer spending. Changes in
demographics and consumer tastes can also affect the demand for, and success of,
consumer discretionary products.
The
consumer
staples
industries can be significantly affected by demographic and product trends,
competitive pricing, food fads, marketing campaigns, and environmental factors,
as well as the performance of the overall economy, interest rates, consumer
confidence, and the cost of commodities. Regulations and policies of various
domestic and foreign governments affect agricultural products as well as other
consumer staples.
The
energy
industries can be significantly affected by fluctuations in energy prices and
supply and demand of energy fuels caused by geopolitical events, energy
conservation, the success of exploration projects, weather or meteorological
events, and tax and other government regulations.
The
financials
industries are subject to extensive government regulation which can limit both
the amounts and types of loans and other financial commitments they can make,
and the interest rates and fees they can charge. Profitability can be largely
dependent on the availability and cost of capital and the rate of corporate and
consumer debt defaults, and can fluctuate significantly when interest rates
change. Financial difficulties of borrowers can negatively affect the financial
services industries. Insurance companies can be subject to severe price
competition. The financial services industries can be subject to relatively
rapid change as distinctions between financial service segments become
increasingly blurred.
The
health
care
industries are subject to government regulation and reimbursement rates, as well
as government approval of products and services, which could have a significant
effect on price and availability. Furthermore, the types of products or services
produced or provided by health care companies quickly can become obsolete. In
addition, pharmaceutical companies and other companies in the health care
industries can be significantly affected by patent expirations as well as
product liability claims.
The
industrials
industries can be significantly affected by general economic trends, including
employment, economic growth, and interest rates, changes in consumer sentiment
and spending, commodity prices, legislation, government regulation and spending,
import controls, and worldwide competition. Companies in these industries also
can be adversely affected by liability for environmental damage, depletion of
resources, and mandated expenditures for safety and pollution
control.
The
information
technology
industries can be significantly affected by obsolescence of existing technology,
short product cycles, falling prices and profits, competition from new market
entrants, and general economic conditions. In addition, information technology
industries can be affected by the loss or impairment of intellectual property
rights.
The
materials
industries
can be significantly affected by the level and volatility of commodity prices,
the exchange value of the dollar, import and export controls, and worldwide
competition. At times, worldwide production of materials has exceeded demand as
a result of over-building or economic downturns, which has led to commodity
price declines and unit price reductions. Companies in these industries also can
be adversely affected by liability for environmental damage, depletion of
resources, and mandated expenditures for safety and pollution
control.
The real
estate industry
is particularly sensitive to economic downturns. The value of securities of
issuers in the real estate industry, including real estate investment trusts
(REITs), can be affected by changes in real estate values and rental income,
property taxes, interest rates, tax and regulatory requirements, and the
management skill and creditworthiness of the issuer. In addition, the value of
REITs can depend on the structure of and cash flow generated by the REIT, and
REITs may not have diversified holdings. Because REITs are pooled investment
vehicles that have expenses of their own, the fund will indirectly bear its
proportionate share of those expenses.
The
utilities
industries can be significantly affected by government regulation, interest rate
changes, financing difficulties, supply and demand of services or fuel, changes
in taxation, natural resource conservation, intense competition, and commodity
price fluctuations.
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 value. The value of securities of smaller, less
well-known issuers can be more volatile than that of larger issuers. Smaller
issuers can have more limited product lines, markets, or financial
resources.
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. 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.
Correlation
to Index.
The performance of a fund and its underlying index may vary somewhat due to
factors such as fees and expenses of the fund, transaction costs, imperfect
correlation between the fund's securities and those in the index, timing
differences associated with additions to and deletions from the index, and
changes in the shares outstanding of the component securities. A fund may not be
fully invested at times as a result of cash flows into the fund. The use of
sampling techniques or futures or other derivative positions may affect a fund's
ability to achieve close correlation with the index. In addition, the fund may
not be able to invest in certain securities included in the index or invest in
them in the exact proportions in which they are represented in the index due to
regulatory restrictions. Errors in the construction or calculation of the index
may occur from time to time and may not be identified and corrected for some
period of time, which may have an adverse impact on the fund and its
shareholders.
Passive
Management Risk.
An index fund is managed with a passive investment strategy, attempting to track
the performance of an unmanaged index of securities, regardless of the current
or projected performance of the fund's index or of the actual securities
included in the index. This differs from an actively managed fund, which
typically seeks to outperform a benchmark index. As a result, an index fund's
performance could be lower than actively managed funds that may shift their
portfolio assets to take advantage of market opportunities or lessen the impact
of a market decline or a decline in the value of one or more issuers. The
structure and composition of an index fund's index will affect the performance,
volatility, and risk of the index and, consequently, the performance,
volatility, and risk of the fund. The fund may be concentrated to approximately
the same extent that the fund's index concentrates in the securities of issuers
in a particular industry or group of industries.
Ownership
Limitation Risk.
Fidelity®
MSCI Real Estate Index ETF may be unable to purchase (or otherwise obtain
economic exposure to) the desired amount of certain securities included in its
underlying index because of limitations on ownership of these securities. These
ownership limitations may result in increased tracking error for the fund. For
example, REITs and certain other issuers may impose limits for tax or other
reasons on the percentage of their outstanding securities that any one investor
may own. These limits may also be based on ownership of securities by multiple
funds and accounts managed by the same investment adviser.
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
an index is discontinued or the Adviser's license with the sponsor of the index
is terminated, the fund may substitute a different index or, alternatively, may
liquidate the fund if the Board of Trustees deems it to be in the best interest
of shareholders.
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.
Other
Investment Strategies
In
addition to the principal investment strategies discussed above, BFA may lend a
fund's securities to broker-dealers or other institutions to earn income for the
fund.
BFA
may also use various techniques, such as buying and selling futures contracts,
options, and swaps, and exchange traded funds, to increase or decrease a fund's
exposure to changing security prices or other factors that affect security
values.
Non-Fundamental
Investment Policies
Each
fund's investment objective is non-fundamental and may be changed without
shareholder approval.
Shareholder
Notice
The
following is subject to change only upon 60 days' prior notice to
shareholders:
Each
fund has a policy of normally investing at least 80% of its assets in securities
included in the fund's underlying index. This policy is subject to change only
upon 60 days' prior notice to shareholders.
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 equity 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 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 pays dividends and capital gain distributions per the tables
below:
|
Fund
Name |
|
Dividends
Paid |
|
Fidelity®
MSCI Communication Services Index ETF |
|
March,
June, September, December |
|
Fidelity®
MSCI Consumer Discretionary Index ETF |
|
March,
June, September, December |
|
Fidelity®
MSCI Consumer Staples Index ETF |
|
March,
June, September, December |
|
Fidelity®
MSCI Energy Index ETF |
|
March,
June, September, December |
|
Fidelity®
MSCI Financials Index ETF |
|
March,
June, September, December |
|
Fidelity®
MSCI Health Care Index ETF |
|
March,
June, September, December |
|
Fidelity®
MSCI Industrials Index ETF |
|
March,
June, September, December |
|
Fidelity®
MSCI Information Technology Index ETF |
|
March,
June, September, December |
|
Fidelity®
MSCI Materials Index ETF |
|
March,
June, September, December |
|
Fidelity®
MSCI Real Estate Index ETF |
|
March,
June, September, December |
|
Fidelity®
MSCI Utilities Index ETF |
|
March,
June, September, December |
|
Fund
Name |
|
Capital
Gains Paid |
|
Fidelity®
MSCI Communication Services Index ETF |
|
December |
|
Fidelity®
MSCI Consumer Discretionary Index ETF |
|
December |
|
Fidelity®
MSCI Consumer Staples Index ETF |
|
December |
|
Fidelity®
MSCI Energy Index ETF |
|
December |
|
Fidelity®
MSCI Financials Index ETF |
|
December |
|
Fidelity®
MSCI Health Care Index ETF |
|
December |
|
Fidelity®
MSCI Industrials Index ETF |
|
December |
|
Fidelity®
MSCI Information Technology Index ETF |
|
December |
|
Fidelity®
MSCI Materials Index ETF |
|
December |
|
Fidelity®
MSCI Real Estate Index ETF |
|
December |
|
Fidelity®
MSCI Utilities Index 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).
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 investors receive will normally be taxable to them when
they receive them.
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 is responsible for handling each fund's business
affairs.
Sub-Adviser(s)
The
Adviser and the funds may seek an exemptive order from the SEC that will permit
the Adviser, subject to the approval of the Board of Trustees, to enter into new
or amended sub-advisory agreements with one or more unaffiliated and affiliated
sub-advisers without obtaining shareholder approval of such agreements. The
funds' initial sole shareholder has approved the funds' use of this exemptive
order once issued by the SEC and the funds and the Adviser intend to rely on the
exemptive order when issued without seeking additional shareholder approval.
Subject to oversight by the Board of Trustees, the Adviser has the ultimate
responsibility to oversee the funds' sub-advisers and recommend their hiring,
termination, and replacement. In the event the Board of Trustees approves a
sub-advisory agreement with a new sub-adviser, shareholders will be provided
with information about the new sub-adviser and sub-advisory
agreement.
BlackRock
Fund Advisors (BFA),
at 400 Howard Street, San Francisco, CA 94105, serves as a sub-adviser for each
fund. BFA is an indirect wholly-owned subsidiary of BlackRock, Inc. BFA chooses
each fund's investments and places orders to buy and sell each fund's
investments. As of September 30, 2023, BFA and its affiliates provided
investment advisory services for assets in excess of $9.10
trillion.
Portfolio
Manager(s)
Jennifer
Hsui, Peter Sietsema, and Paul Whitehead are primarily responsible for the
day-to-day management of each fund. Each portfolio manager is responsible for
various functions related to portfolio management, including, but not limited
to, investing cash inflows, coordinating with members of his or her portfolio
management team to focus on certain asset classes, implementing investment
strategy, researching and reviewing investment strategy and overseeing members
of his or her portfolio management team that have more limited
responsibilities.
Jennifer
Hsui has been employed by BFA as a senior portfolio manager since 2007. Prior to
that, Ms. Hsui was a portfolio manager from 2006 to 2007 for BGFA. Ms. Hsui has
been a Portfolio Manager of each fund, except Fidelity® MSCI
Real Estate Index ETF, since 2013 and since 2015 for Fidelity® MSCI
Real Estate Index ETF.
Peter
Sietsema has been with BFA since 2007, including his years with BGI, which
merged with BFA in 2009. Mr. Sietsema has been employed by BFA or its affiliates
as a Director since 2011 and a Vice President from 2009 to 2010. Mr. Sietsema
has been a Portfolio Manager of each fund since 2023.
Paul
Whitehead has been with BFA since 1996, including his years with BGI, which
merged with BFA in 2009. Mr. Whitehead has been employed by BFA or its
affiliates as a Managing Director since 2010 and a Director from 2009 to 2010.
Mr. Whitehead has been a Portfolio Manager of each fund since 2022.
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® MSCI Communication Services
Index ETF, Fidelity® MSCI Consumer Discretionary Index ETF, Fidelity® MSCI
Consumer Staples Index ETF, Fidelity® MSCI Energy Index ETF, Fidelity® MSCI
Financials Index ETF, Fidelity® MSCI Health Care Index ETF, Fidelity® MSCI
Industrials Index ETF, Fidelity® MSCI Information Technology Index ETF,
Fidelity® MSCI Materials Index ETF, Fidelity® MSCI Real Estate Index ETF, and
Fidelity® MSCI Utilities Index ETF with limited exceptions.
The
annual management fee rate, as a percentage of each fund's average net assets,
is shown in the following table:
|
Fund |
Management
Fee Rate |
|
Fidelity®
MSCI Communication Services Index ETF |
0.084% |
|
Fidelity®
MSCI Consumer Discretionary Index ETF |
0.084% |
|
Fidelity®
MSCI Consumer Staples Index ETF |
0.084% |
|
Fidelity®
MSCI Energy Index ETF |
|
