Fidelity® Emerging Markets Multifactor ETF
Fidelity® International High Dividend ETF
Fidelity® International Multifactor ETF
Fidelity® International Value Factor ETF
 
 
Annual Report
October 31, 2023

Contents

Fidelity® Emerging Markets Multifactor ETF

Performance

Management's Discussion of Fund Performance

Investment Summary

Schedule of Investments

Financial Statements

Fidelity® International High Dividend ETF

Performance

Management's Discussion of Fund Performance

Investment Summary

Schedule of Investments

Financial Statements

Fidelity® International Multifactor ETF

Performance

Management's Discussion of Fund Performance

Investment Summary

Schedule of Investments

Financial Statements

Fidelity® International Value Factor ETF

Performance

Management's Discussion of Fund Performance

Investment Summary

Schedule of Investments

Financial Statements

Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

Trustees and Officers

Shareholder Expense Example

Distributions

Board Approval of Investment Advisory Contracts

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NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Funds nor Fidelity Distributors Corporation is a bank.
Fidelity® Emerging Markets Multifactor ETF
Performance: The Bottom Line
NAV and closing market price average annual returns reflect the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) at NAV and Market Price, respectively, and assumes a constant rate of performance each year. The hypothetical investment and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
 
 
 
 
Periods ended October 31, 2023
 
Past 1
year
Life of
Fund
Fidelity® Emerging Markets Multifactor ETF - NAV A
14.76%
-0.08%
Fidelity® Emerging Markets Multifactor ETF - Market Price B
15.48%
0.15%
Fidelity Emerging Markets Multifactor Index℠ A
16.37%
0.65%
MSCI Emerging Markets Index A
10.84%
-0.70%
 
A   From February 26, 2019
 
B  From February 28, 2019, date initially listed on the CboeBZX exchange.
 $10,000 Over Life of Fund
 
Let's say hypothetically that $10,000 was invested in Fidelity® Emerging Markets Multifactor ETF - NAV, on February 26, 2019, when the fund started.
 
The chart shows how the value of your investment would have changed, and also shows how the Fidelity Emerging Markets Multifactor Index℠ and the MSCI  Emerging Markets Index performed over the same period.
 
Fidelity® Emerging Markets Multifactor ETF
Management's Discussion of Fund Performance
Market Recap:
International (non-U.S.) equities gained 12.27% for the 12 months ending October 31, 2023, according to the MSCI ACWI (All Country World Index) ex USA Index, as global economic expansion and a slowing in the pace of inflation in some markets provided a favorable backdrop for risk assets. After returning -15.86% in 2022, the index's upturn has been largely driven by a narrow set of companies in the information technology and communication services sectors, in part due to excitement for generative artificial intelligence applications. The index gained 14.07% year to date through July, including strong gains in both June (+4.50%) and July (+4.07%). The rally for international equities sputtered for the next three months (-11.33%) amid a stalling pattern in disinflationary trends, heightened global recession and geopolitical risks, soaring yields on longer-term U.S. government bonds and particularly weak economic conditions in the eurozone and China. The three-month decline left non-U.S. stocks up 1.15% year to date through October. For the full 12 months, nearly all regions advanced, with Europe ex U.K. (+18%) and Japan (+17%) leading, whereas Canada (-0.38%) lagged by the widest margin. Each of the 11 sectors advanced, with information technology (+21%) and consumer discretionary (+19%) leading the way. Energy and industrials each rose about 14%. Conversely, four defensive-oriented sectors lagged by the widest margin: real estate (+4%), health care (+6%), consumer staples (+7%) and utilities (+8%).
Comments from the Geode Capital Management, LLC, passive equity index team:
For the fiscal year, the exchange-traded fund's net asset value gained 14.76%, versus 16.37% for the Fidelity Emerging Markets Multifactor Index. (The ETF's relative performance was affected by differing methodologies (fund versus index) for valuing certain foreign stocks and for incorporating foreign exchange rates, as well as by required local capital gains tax.) The ETF's market price gained 15.48% the past 12 months, while the MSCI Emerging Markets (Net MA) Index gained 10.84%. From a regional standpoint, emerging markets gained 15% and contributed most versus the multifactor index, followed by Asia Pacific ex Japan (+28%). By sector, information technology gained 28% and contributed most, driven by the technology hardware & equipment industry (+29%). Financials, which gained 17%, also helped, benefiting from the banks industry (+12%), as did consumer discretionary, which advanced 22%, lifted by the consumer discretionary distribution & retail industry (+40%). The utilities sector rose 22%, health care gained roughly 15% and consumer staples advanced about 12%. Other notable contributors included the real estate (+17%), energy (+6%), materials (+11%) and industrials (+8%) sectors. Conversely, from a sector standpoint, communication services returned approximately 2% and detracted most. Turning to individual stocks, the biggest contributor was Longfor (+150%), from the real estate management & development category. Samsung Electronics (+19%) and Gigabyte Technology (+139%), within the technology hardware & equipment industry, also contributed. Lastly, in utilities, Beijing Enterprises (+43%) and Gail India (+33%) lifted the fund. Conversely, the biggest individual detractor was C&D International Investment Group (-27%), from the real estate management & development group. Tencent Holdings (-11%) and MultiChoice Group (-33%), within the media & entertainment industry, also hurt the fund's performance. In energy, Adaro Energy Indonesia returned -27% and detracted. Lastly, in equity real estate investment trusts (REITs), Terrafina returned approximately -15% and detracted.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or Geode Capital Management, LLC, (the ETF's subadviser) or any other person in the Geode organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and Geode disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
 
 
Fidelity® Emerging Markets Multifactor ETF
Investment Summary October 31, 2023 (Unaudited)
Top Holdings (% of Fund's net assets)
 
Tencent Holdings Ltd.  (China, Interactive Media & Services)
3.7
  
Samsung Electronics Co. Ltd.  (Korea (South), Technology Hardware, Storage & Peripherals)
3.4
  
Alibaba Group Holding Ltd.  (China, Broadline Retail)
1.8
  
Emaar Properties PJSC  (United Arab Emirates, Real Estate Management & Development)
1.7
  
C&D International Investment Group Ltd.  (China, Real Estate Management & Development)
1.6
  
Terrafina  (Mexico, Equity Real Estate Investment Trusts (REITs))
1.5
  
Turkiye Petrol Rafinerileri A/S  (Turkey, Oil, Gas & Consumable Fuels)
1.4
  
HDFC Bank Ltd.  (India, Banks)
1.4
  
Ruentex Development Co. Ltd.  (Taiwan, Real Estate Management & Development)
1.4
  
Coal India Ltd.  (India, Oil, Gas & Consumable Fuels)
1.3
  
 
19.2
  
 
Market Sectors (% of Fund's net assets)
 
Financials
20.3
  
Information Technology
15.5
  
Communication Services
13.5
  
Energy
11.0
  
Consumer Staples
9.8
  
Consumer Discretionary
9.5
  
Utilities
7.5
  
Real Estate
6.2
  
Materials
3.7
  
Industrials
2.8
  
 
Asset Allocation (% of Fund's net assets)
Futures - 0.2%
Geographic Diversification (% of Fund's net assets)
 
*    Includes Short-Term investments and Net Other Assets (Liabilities). 
Percentages are adjusted for the effect of derivatives, if applicable.
 
 
Fidelity® Emerging Markets Multifactor ETF
Schedule of Investments October 31, 2023
Showing Percentage of Net Assets     
Common Stocks - 98.2%
 
 
Shares
Value ($)
 
Brazil - 2.7%
 
 
 
Banco do Brasil SA
 
12,900
123,679
BB Seguridade Participacoes SA
 
14,900
90,883
CPFL Energia SA (a)
  
35,200
233,410
Itausa-Investimentos Itau SA
 
1,011
1,720
TIM SA
 
35,200
105,886
Vale SA
 
9,200
125,877
TOTAL BRAZIL
  
 
681,455
Chile - 0.4%
 
 
 
Banco de Chile
 
906,616
92,843
China - 25.3%
 
 
 
Agricultural Bank of China Ltd. (H Shares)
 
299,000
110,435
Alibaba Group Holding Ltd. (a)
  
45,700
467,536
Anta Sports Products Ltd.
 
7,600
85,814
Autohome, Inc. ADR Class A
 
3,278
87,687
Baidu, Inc. Class A (a)
  
13,850
181,785
Bank of China Ltd. (H Shares)
 
417,000
146,024
Bank of Communications Co. Ltd. (H Shares)
 
169,000
100,001
Beijing Enterprises Holdings Ltd.
 
78,000
259,681
Bosideng International Holdings Ltd.
 
110,000
43,440
Brilliance China Automotive Holdings Ltd.
 
98,000
44,963
C&D International Investment Group Ltd.
 
179,175
402,105
China CITIC Bank Corp. Ltd. (H Shares)
 
140,000
62,444
China Construction Bank Corp. (H Shares)
 
407,000
230,949
China Pacific Insurance (Group) Co. Ltd. (H Shares)
 
29,400
72,442
China Railway Group Ltd. (H Shares)
 
81,000
38,199
China Shenhua Energy Co. Ltd. (H Shares)
 
96,000
294,456
China Tower Corp. Ltd. (H Shares) (b)
  
1,022,000
95,348
CITIC Pacific Ltd.
 
53,000
45,044
Daqo New Energy Corp. ADR (a)
  
3,052
77,704
Fuyao Glass Industries Group Co. Ltd. (H Shares) (b)
  
12,800
58,319
Haier Smart Home Co. Ltd.
 
22,400
64,126
Hello Group, Inc. ADR
 
9,502
67,274
Hengan International Group Co. Ltd.
 
64,000
214,298
Industrial & Commercial Bank of China Ltd. (H Shares)
 
369,000
177,318
Inner Mongolia Yitai Coal Co. Ltd. (B Shares) (a)
  
163,437
224,236
Jiangxi Copper Co. Ltd. (H Shares)
 
45,000
63,722
Jiumaojiu International Holdings Ltd. (b)
  
28,000
30,417
Kingboard Chemical Holdings Ltd.
 
34,000
82,647
Lenovo Group Ltd.
 
102,000
118,626
MINISO Group Holding Ltd. ADR
 
1,895
47,962
NetEase, Inc.
 
11,400
245,204
PDD Holdings, Inc. ADR (a)
  
1,832
185,801
People's Insurance Co. of China Group Ltd. (H Shares)
 
170,000
56,054
PetroChina Co. Ltd. (H Shares)
 
428,000
278,966
PICC Property & Casualty Co. Ltd. (H Shares)
 
68,000
77,693
Pop Mart International Group Ltd. (b)
  
19,200
52,879
Shenzhou International Group Holdings Ltd.
 
6,800
66,700
Tencent Holdings Ltd.
 
25,400
938,791
Tencent Music Entertainment Group ADR (a)
  
16,970
123,202
Tongcheng Travel Holdings Ltd. (a)
  
22,800
43,533
Topsports International Holdings Ltd. (b)
  
58,000
48,774
TravelSky Technology Ltd. (H Shares)
 
27,000
42,581
Trip.com Group Ltd. (a)
  
2,600
89,318
Vipshop Holdings Ltd. ADR (a)
  
2,750
39,215
Yadea Group Holdings Ltd. (b)
  
24,000
43,862
Yangzijiang Shipbuilding Holdings Ltd.
 
33,600
35,561
Yum China Holdings, Inc.
 
1,699
89,299
Zhongsheng Group Holdings Ltd. Class H
 
16,500
38,042
TOTAL CHINA
  
 
6,490,477
Czech Republic - 1.2%
 
 
 
CEZ A/S
 
7,159
305,860
Egypt - 0.5%
 
 
 
Commercial International Bank SAE
 
67,584
131,890
Greece - 0.8%
 
 
 
Jumbo SA
 
3,477
91,365
OPAP SA
 
6,027
101,929
TOTAL GREECE
  
 
193,294
Hong Kong - 1.1%
 
 
 
WH Group Ltd. (b)
  
490,500
292,748
Hungary - 1.1%
 
 
 
MOL Hungarian Oil and Gas PLC Series A (For. Reg.)
 
34,763
275,991
India - 15.2%
 
 
 
Apollo Tyres Ltd.
 
16,721
76,577
Bajaj Auto Ltd.
 
1,614
103,015
Bank of Baroda
 
32,715
77,093
Bharat Electronics Ltd.
 
48,481
77,591
Canara Bank Ltd.
 
18,557
85,665
Coal India Ltd.
 
90,755
342,544
Eicher Motors Ltd.
 
2,427
96,066
Federal Bank Ltd.
 
48,654
82,192
GAIL India Ltd.
 
199,250
285,980
HCL Technologies Ltd.
 
4,732
72,521
HDFC Asset Management Co. Ltd. (b)
  
2,693
88,431
HDFC Bank Ltd.
 
20,376
361,345
Hindustan Aeronautics Ltd.
 
3,050
66,783
Hindustan Unilever Ltd.
 
10,248
305,746
Infosys Ltd.
 
12,180
200,185
ITC Ltd.
 
49,534
254,873
NHPC Ltd.
 
451,987
272,521
NMDC Ltd.
 
44,473
82,367
Oil & Natural Gas Corp. Ltd.
 
126,120
281,979
Pidilite Industries Ltd.
 
2,088
61,643
Power Finance Corp. Ltd.
 
31,626
93,672
REC Ltd.
 
32,316
111,629
State Bank of India
 
15,222
103,398
Steel Authority of India Ltd.
 
54,101
54,485
Tata Consultancy Services Ltd.
 
3,581
144,892
Union Bank of India Ltd.
 
68,165
83,181
Wipro Ltd.
 
8,735
40,056
TOTAL INDIA
  
 
3,906,430
Indonesia - 4.4%
 
 
 
Indofood Sukses Makmur Tbk PT
 
469,400
196,507
PT Adaro Energy Indonesia Tbk
 
1,530,800
246,701
PT Astra International Tbk
 
104,500
37,991
PT Bank Central Asia Tbk
 
272,900
150,323
PT Bank Mandiri (Persero) Tbk
 
300,400
107,319
PT Indah Kiat Pulp & Paper Tbk
 
76,000
45,930
PT Telkom Indonesia Persero Tbk
 
566,500
124,462
PT United Tractors Tbk
 
134,300
212,420
TOTAL INDONESIA
  
 
1,121,653
Korea (South) - 10.0%
 
 
 
Cosmo AM&T Co. Ltd. (a)
  
81
8,361
Cosmo AM&T Co. Ltd. rights 11/7/23 (a)
  
4
49
DB HiTek Co. Ltd.
 
185
6,630
Db Insurance Co. Ltd.
 
1,446
94,112
Doosan Bobcat, Inc.
 
1,236
35,463
EO Technics Co. Ltd.
 
49
5,054
GS Holdings Corp.
 
1,785
52,074
Hankook Tire Co. Ltd.
 
3,308
93,566
Hanmi Semiconductor Co. Ltd.
 
213
8,280
Hanwha Corp.
 
2,256
37,084
Hyundai Marine & Fire Insurance Co. Ltd.
 
3,581
83,523
Hyundai Steel Co.
 
1,566
37,975
Isupetasys Co. Ltd.
 
221
3,543
Kangwon Land, Inc.
 
8,250
89,613
KT&G Corp.
 
3,628
229,143
Kumho Petro Chemical Co. Ltd.
 
448
42,029
LG Corp.
 
958
54,761
LG Innotek Co. Ltd.
 
56
9,247
LG Uplus Corp.
 
13,001
97,323
NCSOFT Corp.
 
513
88,314
Orion Corp./Republic of Korea
 
2,389
211,915
POSCO
 
223
67,946
POSCO ICT Co. Ltd.
 
229
8,317
Samsung Electro-Mechanics Co. Ltd.
 
193
17,763
Samsung Electronics Co. Ltd.
 
17,646
874,101
Samsung SDI Co. Ltd.
 
176
55,450
Samsung SDS Co. Ltd.
 
148
15,145
SK Hynix, Inc.
 
1,685
145,101
Woori Financial Group, Inc.
 
10,358
91,267
TOTAL KOREA (SOUTH)
  
 
2,563,149
Malaysia - 1.3%
 
 
 
CelcomDigi Bhd
 
108,900
96,683
Maxis Bhd
 
117,700
97,826
Petronas Chemicals Group Bhd
 
35,500
54,690
TIME dotCom Bhd
 
83,900
93,682
TOTAL MALAYSIA
  
 
342,881
Mexico - 4.6%
 
 
 
Arca Continental S.A.B. de CV
 
28,900
258,808
Banco del Bajio SA (b)
  
31,000
94,753
El Puerto de Liverpool S.A.B. Dcv Series C
 
5,600
28,433
Grupo Aeroportuario del Sureste S.A.B. de CV Series B
 
2,035
43,799
Grupo Aeroportuario Norte S.A.B. de CV
 
4,800
36,594
Grupo Financiero Inbursa S.A.B. de CV Series O (a)
  
42,200
86,911
Kimberly-Clark de Mexico SA de CV Series A
 
121,300
222,066
Promotora y Operadora de Infraestructura S.A.B. de CV
 
5,035
41,160
Terrafina
 
234,700
380,398
TOTAL MEXICO
  
 
1,192,922
Philippines - 0.3%
 
 
 
BDO Unibank, Inc.
 
29,560
66,424
Qatar - 1.2%
 
 
 
Mesaieed Petrochemical Holding Co. (a)
  
102,980
44,971
Qatar Electricity & Water Co. (a)
  
59,334
269,537
TOTAL QATAR
  
 
314,508
Russia - 0.3%
 
 
 
Gazprom OAO (c)
  
14,450
1,504
Inter Rao Ues JSC (c)
  
7,348,600
40,287
MMC Norilsk Nickel PJSC (a)(c)
  
188
1,243
Mobile TeleSystems OJSC sponsored ADR (a)(c)
  
15,647
15,584
Sberbank of Russia (c)
  
38,410
235
Surgutneftegas OJSC (c)
  
56,600
689
TCS Group Holding PLC GDR (a)(c)
  
789
9,152
VTB Bank OJSC (a)(c)
  
91,900,000
3,491
TOTAL RUSSIA
  
 
72,185
Saudi Arabia - 2.6%
 
 
 
Al Rajhi Bank
 
8,597
153,763
Luberef
 
1,250
42,982
Sabic Agriculture-Nutrients Co.
 
1,679
59,881
Saudi Telecom Co.
 
21,913
224,293
The Co. for Cooperative Insurance
 
1,752
56,414
The Saudi National Bank
 
13,856
123,912
TOTAL SAUDI ARABIA
  
 
661,245
South Africa - 2.5%
 
 
 
Exxaro Resources Ltd.
 
32,429
323,410
Kumba Iron Ore Ltd.
 
2,200
57,951
Momentum Metropolitan Holdings
 
110,246
123,320
Standard Bank Group Ltd.
 
14,934
145,692
TOTAL SOUTH AFRICA
  
 
650,373
Taiwan - 13.6%
 
 
 
ASE Technology Holding Co. Ltd.
 
38,000
132,974
ASPEED Tech, Inc.
 
1,000
79,235
Catcher Technology Co. Ltd.
 
19,000
106,320
Chicony Electronics Co. Ltd.
 
32,000
122,830
Chipbond Technology Corp.
 
48,000
100,632
Chunghwa Telecom Co. Ltd.
 
41,000
146,632
Compal Electronics, Inc.
 
116,000
100,318
eMemory Technology, Inc.
 
2,000
124,249
Far Eastern International Bank
 
258,000
91,475
Far Eastern New Century Corp.
 
82,000
74,580
Far EasTone Telecommunications Co. Ltd.
 
49,000
114,663
Formosa Plastics Corp.
 
25,000
59,349
Foxconn Technology Co. Ltd.
 
59,000
95,317
Gigabyte Technology Co. Ltd.
 
11,000
73,763
Global Unichip Corp.
 
2,000
88,485
International Games Systems Co. Ltd.
 
5,000
96,038
Largan Precision Co. Ltd.
 
2,000
127,640
Lite-On Technology Corp.
 
29,000
89,410
Lotes Co. Ltd.
 
4,077
103,449
Micro-Star International Co. Ltd.
 
19,000
96,655
Novatek Microelectronics Corp.
 
9,000
126,114
Pegatron Corp.
 
47,000
109,259
Pou Chen Corp.
 
94,000
83,610
Radiant Opto-Electronics Corp.
 
28,000
107,045
Ruentex Development Co. Ltd.
 
359,100
358,713
Simplo Technology Co. Ltd.
 
10,000
102,821
SINBON Electronics Co. Ltd.
 
10,000
85,402
Taichung Commercial Bank Co. Ltd.
 
204,305
92,594
Taishin Financial Holdings Co. Ltd.
 
197,000
104,771
Taiwan Business Bank
 
225,280
88,556
Taiwan Cooperative Financial Holding Co. Ltd.
 
137,550
106,656
Wiwynn Corp.
 
2,000
93,726
TOTAL TAIWAN
  
 
3,483,281
Thailand - 1.5%
 
 
 
Advanced Information Service PCL NVDR
 
19,200
117,521
Bangkok Bank PCL NVDR
 
13,800
60,472
Home Product Center PCL NVDR
 
147,100
48,703
Intouch Holdings PCL NVDR
 
49,000
96,793
Krung Thai Bank PCL NVDR
 
118,800
62,139
TOTAL THAILAND
  
 
385,628
Turkey - 5.5%
 
 
 
Akbank TAS
 
107,714
112,158
Bim Birlesik Magazalar A/S JSC
 
34,320
329,945
Enka Insaat ve Sanayi A/S
 
38,095
40,959
Haci Omer Sabanci Holding A/S
 
52,054
98,431
Koc Holding A/S
 
10,990
53,138
Turkcell Iletisim Hizmet A/S
 
92,715
157,295
Turkiye Is Bankasi A/S Series C
 
185,007
137,189
Turkiye Petrol Rafinerileri A/S
 
72,395
363,091
Yapi ve Kredi Bankasi A/S
 
198,446
120,922
TOTAL TURKEY
  
 
1,413,128
United Arab Emirates - 2.1%
 
 
 
Abu Dhabi Islamic Bank (a)
  
37,488
105,126
Emaar Properties PJSC
 
237,778
433,089
TOTAL UNITED ARAB EMIRATES
  
 
538,215
 
TOTAL COMMON STOCKS
 (Cost $25,857,122)
  
 
 
25,176,580
 
 
 
 
Nonconvertible Preferred Stocks - 1.6%
 
 
Shares
Value ($)
 
Brazil - 1.6%
 
 
 
Bradespar SA (PN)
 
7,700
34,110
Companhia Energetica de Minas Gerais (CEMIG) (PN)
 
104,900
244,205
Itausa-Investimentos Itau SA (PN)
 
56,731
97,195
Metalurgica Gerdau SA (PN)
 
13,700
28,063
TOTAL BRAZIL
  
 
403,573
Russia - 0.0%
 
 
 
AK Transneft OAO (c)
  
12
3,462
 
TOTAL NONCONVERTIBLE PREFERRED STOCKS
 (Cost $406,874)
  
 
 
407,035
 
 
 
 
 
TOTAL INVESTMENT IN SECURITIES - 99.8%
 (Cost $26,263,996)
 
  
 
25,583,615
NET OTHER ASSETS (LIABILITIES) - 0.2%  
59,115
NET ASSETS - 100.0%
25,642,730
 
 
 
Futures Contracts 
 
Number
of contracts
Expiration
Date
Notional
Amount ($)
 
Value ($)
 
Unrealized
Appreciation/
(Depreciation) ($)
 
Purchased
  
 
 
 
 
 
 
 
 
 
 
Equity Index Contracts
  
 
 
 
 
ICE MSCI Emerging Markets Index Contracts (United States)
1
Dec 2023
45,960
(762)
(762)
 
 
 
 
 
 
The notional amount of futures purchased as a percentage of Net Assets is 0.2%
 
 
 
Legend
 
(a)
Non-income producing
 
(b)
Security exempt from registration under Rule 144A of the Securities Act of 1933.  These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $805,531 or 3.1% of net assets.
 
(c)
Level 3 security
 
 
 
 
Affiliated Central Funds
 
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
 
 
Affiliate
Value,
beginning
of period ($)
Purchases ($)
Sales
Proceeds ($)
Dividend
Income ($)
Realized
Gain (loss) ($)
Change in
Unrealized
appreciation
(depreciation) ($)
Value,
end
of period ($)
% ownership,
end
of period
Fidelity Cash Central Fund 5.40%
-
3,310,856
3,310,856
2,035
-
-
-
0.0%
Total
-
3,310,856
3,310,856
2,035
-
-
-
  
 
 
 
 
 
 
 
 
 
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
 
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
 
Investment Valuation
 
The following is a summary of the inputs used, as of October 31, 2023, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
 
Valuation Inputs at Reporting Date:
Description
Total ($)
Level 1 ($)
Level 2 ($)
Level 3 ($)
 Investments in Securities:
  
 
 
 
 Equities:
  
 
 
 
Communication Services
3,412,286
3,396,702
-
15,584
Consumer Discretionary
2,395,458
2,395,458
-
-
Consumer Staples
2,516,049
2,516,049
-
-
Energy
2,849,449
2,843,794
-
5,655
Financials
5,229,276
5,216,398
-
12,878
Industrials
770,781
770,781
-
-
Information Technology
3,959,316
3,959,267
49
-
Materials
965,214
963,971
-
1,243
Real Estate
1,574,305
1,574,305
-
-
Utilities
1,911,481
1,871,194
-
40,287
 
 
 
 
 
 Total Investments in Securities:
25,583,615
25,507,919
49
75,647
 Derivative Instruments:
 Liabilities
  
 
 
 
Futures Contracts
(762)
(762)
-
-
  Total Liabilities
(762)
(762)
-
-
 Total Derivative Instruments:
(762)
(762)
-
-
 
Value of Derivative Instruments
 
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2023. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
 
Primary Risk Exposure / Derivative Type                                                                                                                                                                                   
 
Value
Asset ($)
Liability ($)
Equity Risk
  
 
Futures Contracts (a) 
0
(762)
Total Equity Risk
0
(762)
Total Value of Derivatives
0
(762)
 
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
 
 
 
Fidelity® Emerging Markets Multifactor ETF
Financial Statements
Statement of Assets and Liabilities
 
 
 
October 31, 2023
 
 
 
 
 
Assets
 
 
 
 
Investment in securities, at value - See accompanying schedule
 
Unaffiliated issuers (cost $26,263,996):
 
 
 
$
25,583,615
Segregated cash with brokers for derivative instruments
  
 
4,242
Cash
  
 
40,904
Foreign currency held at value (cost $181,876)
  
 
169,667
Dividends receivable
  
 
43,867
Other receivables
  
 
465
  Total assets
  
 
25,842,760
Liabilities
  
 
 
 
Payable for investments purchased
$
97,849
  
 
Accrued management fee
9,823
  
 
Payable for daily variation margin on futures contracts
674
  
 
Deferred taxes
91,591
  
 
Other payables and accrued expenses
93
  
 
  Total Liabilities
  
 
 
200,030
Net Assets  
  
 
$
25,642,730
Net Assets consist of:
  
 
 
 
Paid in capital
  
 
$
30,085,189
Total accumulated earnings (loss)
  
 
 
(4,442,459)
Net Assets
  
 
$
25,642,730
Net Asset Value, offering price and redemption price per share ($25,642,730 ÷ 1,200,000 shares)
  
 
$
21.37
 
Statement of Operations
 
 
 
Year ended
October 31, 2023
Investment Income
  
 
 
 
Dividends
 
 
$
1,300,532
Income from Fidelity Central Funds  
  
 
2,035
 Income before foreign taxes withheld
  
 
$
1,302,567
Less foreign taxes withheld
  
 
(160,653)
 Total Income
  
 
 
1,141,914
Expenses
  
 
 
 
Management fee
$
108,260
  
 
Independent trustees' fees and expenses
130
  
 
 Total expenses before reductions
  
108,390
  
 
 Expense reductions
  
(418)
  
 
 Total expenses after reductions
  
 
 
107,972
Net Investment income (loss)
  
 
 
1,033,942
Realized and Unrealized Gain (Loss)
  
 
 
 
Net realized gain (loss) on:
  
 
 
 
 Investment Securities:
  
 
 
 
   Unaffiliated issuers  (net of foreign taxes of $33,802)
  
(1,225,311)
  
 
 Foreign currency transactions
  
(17,409)
  
 
 Futures contracts
  
6,183
  
 
Total net realized gain (loss)
  
 
 
(1,236,537)
Change in net unrealized appreciation (depreciation) on:
  
 
 
 
 Investment Securities:
  
 
 
 
   Unaffiliated issuers(net of increase in deferred foreign taxes of $47,832)  
  
3,117,128
  
 
 Assets and liabilities in foreign currencies
  
(12,852)
  
 
 Futures contracts
  
(1,385)
  
 
Total change in net unrealized appreciation (depreciation)
  
 
 
3,102,891
Net gain (loss)
  
 
 
1,866,354
Net increase (decrease) in net assets resulting from operations
  
 
$
2,900,296
Statement of Changes in Net Assets
 
 
Year ended
October 31, 2023
  
Year ended
October 31, 2022
Increase (Decrease) in Net Assets
  
 
 
 
Operations
  
 
 
Net investment income (loss)
$
1,033,942
$
823,731
Net realized gain (loss)
  
(1,236,537)
 
 
(1,875,585)
 
Change in net unrealized appreciation (depreciation)
  
3,102,891
  
(3,937,671)
 
Net increase (decrease) in net assets resulting from operations
  
2,900,296
 
 
(4,989,525)
 
Distributions to shareholders
  
(1,198,769)
 
 
(826,772)
 
Distributions to shareholders from tax return of capital
  
(11,231)
 
 
(29,228)
 
 
 
 
 
 
 Total Distributions
  
(1,210,000)
 
 
(856,000)
 
Share transactions
  
 
 
 
Proceeds from sales of shares
  
4,445,155
  
4,649,878
 
 
 
 
 
  Net increase (decrease) in net assets resulting from share transactions
  
4,445,155
 
 
4,649,878
 
Total increase (decrease) in net assets
  
6,135,451
 
 
(1,195,647)
 
 
 
 
 
 
Net Assets
  
 
 
 
Beginning of period
  
19,507,279
  
20,702,926
 
End of period
$
25,642,730
$
19,507,279
 
 
 
 
 
Other Information
  
 
 
 
Shares
  
 
 
 
Sold
  
200,000
  
200,000
Net increase (decrease)
  
200,000
  
200,000
 
 
 
 
 
 
Financial Highlights
Fidelity® Emerging Markets Multifactor ETF
 
Years ended October 31,
  
2023  
  
2022 
  
2021  
  
2020 
  
2019 A
  Selected Per-Share Data 
  
 
 
 
 
 
 
 
 
 
  Net asset value, beginning of period
$
19.51
$
25.88
$
23.12
$
24.68
$
25.00
  Income from Investment Operations
 
 
 
 
 
 
 
 
 
 
     Net investment income (loss) B,C
  
.95
 
.89
 
.72
 
.55
 
.50
     Net realized and unrealized gain (loss)
 
1.96
 
(6.37)
 
2.67
 
(1.57)
 
(.34)
  Total from investment operations
 
2.91  
  
(5.48)  
  
3.39  
  
(1.02)  
  
.16
  Distributions from net investment income
 
(1.04)
 
(.86)
 
(.63)
 
(.54)
 
(.48)
  Tax return of capital
 
(.01)
  
(.03)
  
-
  
-
  
-
     Total distributions
 
(1.05)
 
(.89)
 
(.63)
 
(.54)
 
(.48)
  Net asset value, end of period
$
21.37
$
19.51
$
25.88
$
23.12
$
24.68
 Total Return D,E,F
  
14.76%
 
(21.56)%
 
14.55%
 
(4.03)%
 
.66%
 Ratios to Average Net Assets C,G,H
  
 
 
 
 
 
 
 
 
 
    Expenses before reductions
 
.45%
 
.45%
 
.45%
 
.45%
 
.45% I
    Expenses net of fee waivers, if any
 
.45%
 
.45%
 
.45%
 
.45%
 
.45% I
    Expenses net of all reductions
 
.45%
 
.45%
 
.45%
 
.45%
 
.45% I
    Net investment income (loss)
 
4.29%
 
3.84%
 
2.64%
 
2.39%
 
3.05% I
 Supplemental Data
  
 
 
 
 
 
 
 
 
 
    Net assets, end of period (000 omitted)
$
25,643
$
19,507
$
20,703
$
9,249
$
9,872
    Portfolio turnover rate J
  
82% K
  
91% K
  
65% K
  
66%
 
34% K,L
 
AFor the period February 26, 2019 (commencement of operations) through October 31, 2019.
 
BCalculated based on average shares outstanding during the period.
 
CNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
 
DTotal returns for periods of less than one year are not annualized.
 
ETotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
 
FBased on net asset value.
 
GFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
 
HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
 
IAnnualized.
 
JAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
 
KPortfolio turnover rate excludes securities received or delivered in-kind.
 
LAmount not annualized.
 
Fidelity® International High Dividend ETF
Performance: The Bottom Line
NAV and closing market price average annual returns reflect the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) at NAV and Market Price, respectively, and assumes a constant rate of performance each year. The hypothetical investment and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
 
 
 
 
Periods ended October 31, 2023
 
Past 1
year
Past 5
years
Life of
Fund
Fidelity® International High Dividend ETF - NAV A
11.57%
1.73%
-1.40%
Fidelity® International High Dividend ETF - Market Price B
12.57%
1.87%
-1.51%
Fidelity International High Dividend Index℠ A
12.10%
2.21%
-0.94%
MSCI World ex USA Index A
12.82%
4.49%
1.41%
 
A   From January 16, 2018
 
B  From January 18, 2018, date initially listed on the NYSE ARCA exchange.
 $10,000 Over Life of Fund
 
Let's say hypothetically that $10,000 was invested in Fidelity® International High Dividend ETF - NAV, on January 16, 2018, when the fund started.
 
The chart shows how the value of your investment would have changed, and also shows how the Fidelity International High Dividend Index℠ and the MSCI  World ex USA Index performed over the same period.
 
Fidelity® International High Dividend ETF
Management's Discussion of Fund Performance
Market Recap:
International (non-U.S.) equities gained 12.27% for the 12 months ending October 31, 2023, according to the MSCI ACWI (All Country World Index) ex USA Index, as global economic expansion and a slowing in the pace of inflation in some markets provided a favorable backdrop for risk assets. After returning -15.86% in 2022, the index's upturn has been largely driven by a narrow set of companies in the information technology and communication services sectors, in part due to excitement for generative artificial intelligence applications. The index gained 14.07% year to date through July, including strong gains in both June (+4.50%) and July (+4.07%). The rally for international equities sputtered for the next three months (-11.33%) amid a stalling pattern in disinflationary trends, heightened global recession and geopolitical risks, soaring yields on longer-term U.S. government bonds and particularly weak economic conditions in the eurozone and China. The three-month decline left non-U.S. stocks up 1.15% year to date through October. For the full 12 months, nearly all regions advanced, with Europe ex U.K. (+18%) and Japan (+17%) leading, whereas Canada (-0.38%) lagged by the widest margin. Each of the 11 sectors advanced, with information technology (+21%) and consumer discretionary (+19%) leading the way. Energy and industrials each rose about 14%. Conversely, four defensive-oriented sectors lagged by the widest margin: real estate (+4%), health care (+6%), consumer staples (+7%) and utilities (+8%).
Comments from the Geode Capital Management, LLC, passive equity index team:
For the fiscal year, the exchange-traded fund's net asset value gained 11.57%, versus 12.10% for the Fidelity International High Dividend Index. (The ETF's relative performance was affected by differing methodologies (fund versus index) for valuing certain foreign stocks and for incorporating foreign exchange rates, as well as by required local capital gains tax.) The ETF's market price gained 12.57% the past 12 months, while the MSCI World ex US Net MA Index gained 12.82%. From a regional standpoint, Europe ex the U.K. gained about 16% and contributed most versus the high dividend index, followed by Japan (+35%). By sector, industrials gained 34% and contributed most, driven by the capital goods industry (+40%). Financials, which gained 10%, also helped, benefiting from the financial services industry (+39%), as did materials, which advanced 17%. The energy sector rose 12%, utilities gained approximately 13% and consumer discretionary advanced about 19%. Other notable contributors included the communication services (+5%), consumer staples (+8%), information technology (+11%) and health care (+2%) sectors. Conversely, Canada returned -11% and detracted most, followed by the U.K. (0%). From a sector standpoint, real estate returned roughly -9% and detracted most. This group was hampered by the real estate management & development industry (-9%). Turning to individual stocks, the top contributor was Enel (+49%), from the utilities group. BP (+24%), from the energy group, also boosted the fund. In real estate management & development, Daiwa House Industry gained 22% and boosted the fund. Mizuho Financial, within the banks industry, gained about 47% and contributed. Lastly, Fortescue Metals, within the materials industry, gained about 61% and helped. Conversely, the biggest individual detractor was Algonquin Power & Utilities (-33%), from the utilities category. New World Development (-35%), from the real estate management & development category, also hurt. Anglo American (-31%), a stock in the materials industry, detracted. Vodafone (-22%), from the telecommunication services group, also hurt. Lastly, in banks, KBC returned -24% and hurt.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or Geode Capital Management, LLC, (the ETF's subadviser) or any other person in the Geode organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and Geode disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
 
 
Fidelity® International High Dividend ETF
Investment Summary October 31, 2023 (Unaudited)
Top Holdings (% of Fund's net assets)
 
Enel SpA  (Italy, Electric Utilities)
3.9
  
Daiwa House Industry Co. Ltd.  (Japan, Real Estate Management & Development)
3.5
  
Terna - Rete Elettrica Nazionale  (Italy, Electric Utilities)
3.2
  
Telefonica SA  (Spain, Diversified Telecommunication Services)
2.9
  
Nintendo Co. Ltd.  (Japan, Entertainment)
2.6
  
SoftBank Corp.  (Japan, Wireless Telecommunication Services)
2.5
  
JFE Holdings, Inc.  (Japan, Metals & Mining)
2.4
  
Power Assets Holdings Ltd.  (Hong Kong, Electric Utilities)
2.4
  
Vodafone Group PLC  (United Kingdom, Wireless Telecommunication Services)
2.3
  
Vonovia SE  (Germany, Real Estate Management & Development)
2.2
  
 
27.9
  
 
Market Sectors (% of Fund's net assets)
 
Financials
28.2
  
Materials
13.7
  
Communication Services
12.3
  
Utilities
11.3
  
Industrials
11.2
  
Real Estate
9.3
  
Consumer Discretionary
4.5
  
Health Care
4.4
  
Consumer Staples
2.5
  
Information Technology
1.8
  
 
Asset Allocation (% of Fund's net assets)
Futures - 0.7%
Geographic Diversification (% of Fund's net assets)
 
*    Includes Short-Term investments and Net Other Assets (Liabilities). 
Percentages are adjusted for the effect of derivatives, if applicable.
 
 
Fidelity® International High Dividend ETF
Schedule of Investments October 31, 2023
Showing Percentage of Net Assets     
Common Stocks - 99.2%
 
 
Shares
Value ($)
 
Australia - 9.4%
 
 
 
ANZ Group Holdings Ltd.
 
77,863
1,218,177
BHP Group Ltd.
 
61,614
1,735,985
Coles Group Ltd.
 
16,208
156,702
Rio Tinto Ltd.
 
16,016
1,192,324
Rio Tinto PLC
 
27,714
1,767,233
Sonic Healthcare Ltd.
 
12,984
236,349
Wesfarmers Ltd.
 
6,116
195,631
Westpac Banking Corp.
 
84,858
1,106,794
TOTAL AUSTRALIA
  
 
7,609,195
Belgium - 1.0%
 
 
 
KBC Group NV
 
14,870
815,743
Canada - 11.6%
 
 
 
Algonquin Power & Utilities Corp. (a)
  
287,047
1,443,247
Bank of Montreal
 
12,645
954,489
Bank of Nova Scotia
 
22,575
913,082
Barrick Gold Corp. (Canada)
 
108,091
1,724,629
BCE, Inc.
 
42,645
1,581,390
Canadian Imperial Bank of Commerce (a)
  
24,378
858,871
Canadian National Railway Co.
 
4,290
453,428
Canadian Tire Ltd. Class A (non-vtg.)
 
1,164
112,153
Finning International, Inc.
 
10,968
293,586
Manulife Financial Corp.
 
55,976
973,355
TOTAL CANADA
  
 
9,308,230
Denmark - 0.4%
 
 
 
A.P. Moller - Maersk A/S Series B
 
194
322,127
Finland - 1.6%
 
 
 
Kesko Oyj
 
5,951
100,423
Nokia Corp.
 
22,080
73,283
Nordea Bank Abp
 
100,172
1,051,691
TietoEVRY Oyj
 
2,681
56,053
TOTAL FINLAND
  
 
1,281,450
France - 6.4%
 
 
 
BNP Paribas SA
 
20,438
1,172,825
Bouygues SA
 
16,613
583,166
Compagnie Generale des Etablissements Michelin SCA Series B
 
5,871
173,882
Credit Agricole SA
 
88,202
1,060,765
Danone SA
 
3,189
189,269
LVMH Moet Hennessy Louis Vuitton SE
 
676
481,952
Societe Generale Series A
 
37,047
828,010
VINCI SA
 
6,300
695,743
TOTAL FRANCE
  
 
5,185,612
Germany - 8.4%
 
 
 
Allianz SE
 
6,142
1,434,104
BASF AG
 
32,965
1,516,934
Bayer AG
 
6,341
272,521
Bayerische Motoren Werke AG (BMW)
 
3,298
305,477
DHL Group
 
15,994
621,452
Fresenius SE & Co. KGaA
 
10,027
256,909
Mercedes-Benz Group AG (Germany)
 
5,001
293,006
SAP SE
 
1,757
235,375
Vonovia SE
 
78,226
1,794,262
TOTAL GERMANY
  
 
6,730,040
Hong Kong - 4.4%
 
 
 
Jardine Matheson Holdings Ltd.
 
6,882
278,377
New World Development Co. Ltd.
 
721,000
1,321,363
Power Assets Holdings Ltd.
 
402,500
1,923,868
TOTAL HONG KONG
  
 
3,523,608
Italy - 8.6%
 
 
 
Enel SpA
 
496,727
3,143,942
Intesa Sanpaolo SpA
 
456,011
1,184,042
Terna - Rete Elettrica Nazionale
 
337,426
2,577,220
TOTAL ITALY
  
 
6,905,204
Japan - 22.4%
 
 
 
Astellas Pharma, Inc.
 
21,000
263,462
Bridgestone Corp.
 
6,700
250,711
Canon, Inc.
 
6,900
161,787
Daiwa House Industry Co. Ltd.
 
102,300
2,787,759
Daiwa Securities Group, Inc.
 
299,800
1,710,371
Honda Motor Co. Ltd.
 
34,800
346,173
Isuzu Motors Ltd.
 
17,900
196,262
Japan Tobacco, Inc.
 
16,900
392,914
JFE Holdings, Inc.
 
140,800
1,937,981
Kawasaki Kisen Kaisha Ltd.
 
22,100
750,505
Kyocera Corp.
 
2,900
141,204
Mitsubishi Corp.
 
18,200
835,822
Mitsui OSK Lines Ltd.
 
19,300
494,846
Nintendo Co. Ltd.
 
50,100
2,057,989
Nippon Yusen KK
 
20,300
492,873
SBI Holdings, Inc. Japan
 
66,600
1,419,117
SoftBank Corp.
 
181,400
2,042,240
Sumitomo Corp.
 
30,000
582,093
Takeda Pharmaceutical Co. Ltd.
 
11,200
300,476
Tokyo Electron Ltd.
 
1,500
195,665
Toyota Motor Corp.
 
38,535
659,022
TOTAL JAPAN
  
 
18,019,272
Netherlands - 2.9%
 
 
 
ASML Holding NV (Netherlands)
 
524
313,102
ING Groep NV (Certificaten Van Aandelen)
 
90,439
1,149,805
Koninklijke Ahold Delhaize NV
 
5,713
169,082
Koninklijke Philips Electronics NV
 
16,783
317,504
Stellantis NV (Italy)
 
20,740
385,830
TOTAL NETHERLANDS
  
 
2,335,323
Singapore - 4.8%
 
 
 
CapitaMall Trust
 
1,278,700
1,642,650
Oversea-Chinese Banking Corp. Ltd.
 
120,900
1,118,946
United Overseas Bank Ltd.
 
51,400
1,013,706
Venture Corp. Ltd.
 
12,100
103,332
TOTAL SINGAPORE
  
 
3,878,634
South Africa - 1.5%
 
 
 
Anglo American PLC (United Kingdom)
 
46,820
1,191,100
Spain - 3.5%
 
 
 
ACS Actividades de Construccion y Servicios SA
 
13,879
501,277
Telefonica SA
 
603,972
2,327,601
TOTAL SPAIN
  
 
2,828,878
Sweden - 0.9%
 
 
 
Ericsson (B Shares)
 
16,531
73,995
Volvo AB (B Shares)
 
33,712
666,537
TOTAL SWEDEN
  
 
740,532
Switzerland - 1.3%
 
 
 
Adecco SA (Reg.)
 
11,992
451,191
Galenica AG (b)
  
1,149
86,549
Novartis AG
 
5,653
525,141
Sandoz Group AG
 
1,128
29,314
TOTAL SWITZERLAND
  
 
1,092,195
United Kingdom - 7.8%
 
 
 
BAE Systems PLC
 
44,329
593,853
Barclays PLC
 
517,852
826,958
British American Tobacco PLC (United Kingdom)
 
5,635
167,799
DCC PLC (United Kingdom)
 
6,459
357,790
Imperial Brands PLC
 
5,362
113,929
Legal & General Group PLC
 
350,873
900,071
M&G PLC
 
411,180
988,912
Persimmon PLC
 
17,077
210,536
Unilever PLC
 
5,529
260,919
Vodafone Group PLC
 
2,045,079
1,878,572
TOTAL UNITED KINGDOM
  
 
6,299,339
United States of America - 2.3%
 
 
 
GSK PLC
 
23,492
415,452
Nestle SA (Reg. S)
 
4,743
511,069
Roche Holding AG (participation certificate)
 
1,707
438,637
Sanofi SA
 
5,147
466,240
TOTAL UNITED STATES OF AMERICA
  
 
1,831,398
 
TOTAL COMMON STOCKS
 (Cost $92,823,050)
  
 
 
79,897,880
 
 
 
 
Money Market Funds - 2.6%
 
 
Shares
Value ($)
 
Fidelity Cash Central Fund 5.40% (c)
  
30,629
30,635
Fidelity Securities Lending Cash Central Fund 5.40% (c)(d)
  
2,024,658
2,024,860
 
TOTAL MONEY MARKET FUNDS
 (Cost $2,055,495)
  
 
2,055,495
 
 
 
 
 
TOTAL INVESTMENT IN SECURITIES - 101.8%
 (Cost $94,878,545)
 
  
 
81,953,375
NET OTHER ASSETS (LIABILITIES) - (1.8)%  
(1,440,295)
NET ASSETS - 100.0%
80,513,080
 
 
 
Futures Contracts 
 
Number
of contracts
Expiration
Date
Notional
Amount ($)
 
Value ($)
 
Unrealized
Appreciation/
(Depreciation) ($)
 
Purchased
  
 
 
 
 
 
 
 
 
 
 
Equity Index Contracts
  
 
 
 
 
ICE MSCI EAFE Index Contracts (United States)
6
Dec 2023
592,230
(31,700)
(31,700)
 
 
 
 
 
 
The notional amount of futures purchased as a percentage of Net Assets is 0.7%
 
 
 
Legend
 
(a)
Security or a portion of the security is on loan at period end.
 
(b)
Security exempt from registration under Rule 144A of the Securities Act of 1933.  These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $86,549 or 0.1% of net assets.
 
(c)
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
 
(d)
Investment made with cash collateral received from securities on loan.
 
 
 
 
Affiliated Central Funds
 
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
 
 
Affiliate
Value,
beginning
of period ($)
Purchases ($)
Sales
Proceeds ($)
Dividend
Income ($)
Realized
Gain (loss) ($)
Change in
Unrealized
appreciation
(depreciation) ($)
Value,
end
of period ($)
% ownership,
end
of period
Fidelity Cash Central Fund 5.40%
48,989
5,998,297
6,016,651
5,863
-
-
30,635
0.0%
Fidelity Securities Lending Cash Central Fund 5.40%
-
10,383,160
8,358,300
20,496
-
-
2,024,860
0.0%
Total
48,989
16,381,457
14,374,951
26,359
-
-
2,055,495
  
 
 
 
 
 
 
 
 
 
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
 
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
 
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
 
Investment Valuation
 
The following is a summary of the inputs used, as of October 31, 2023, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
 
Valuation Inputs at Reporting Date:
Description
Total ($)
Level 1 ($)
Level 2 ($)
Level 3 ($)
 Investments in Securities:
  
 
 
 
 Equities:
  
 
 
 
Communication Services
9,887,792
9,887,792
-
-
Consumer Discretionary
3,610,635
3,610,635
-
-
Consumer Staples
2,062,106
2,062,106
-
-
Financials
22,699,834
22,699,834
-
-
Health Care
3,608,554
3,608,554
-
-
Industrials
8,974,666
8,974,666
-
-
Information Technology
1,353,796
1,353,796
-
-
Materials
11,066,186
11,066,186
-
-
Real Estate
7,546,034
7,546,034
-
-
Utilities
9,088,277
9,088,277
-
-
  Money Market Funds
2,055,495
2,055,495
-
-
 Total Investments in Securities:
81,953,375
81,953,375
-
-
 Derivative Instruments:
 Liabilities
  
 
 
 
Futures Contracts
(31,700)
(31,700)
-
-
  Total Liabilities
(31,700)
(31,700)
-
-
 Total Derivative Instruments:
(31,700)
(31,700)
-
-
 
Value of Derivative Instruments
 
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2023. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
 
Primary Risk Exposure / Derivative Type                                                                                                                                                                                   
 
Value
Asset ($)
Liability ($)
Equity Risk
  
 
Futures Contracts (a) 
0
(31,700)
Total Equity Risk
0
(31,700)
Total Value of Derivatives
0
(31,700)
 
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
 
 
 
Fidelity® International High Dividend ETF
Financial Statements
Statement of Assets and Liabilities
 
 
 
October 31, 2023
 
 
 
 
 
Assets
 
 
 
 
Investment in securities, at value  (including  securities loaned of $1,882,962) - See accompanying schedule:
  
 
 
 
Unaffiliated issuers (cost $92,823,050)
$
79,897,880
  
 
Fidelity Central Funds (cost $2,055,495)
2,055,495
  
 
 
 
 
 
 
 
 
 
 
 
Total Investment in Securities (cost $94,878,545)
  
 
$
81,953,375
Segregated cash with brokers for derivative instruments
  
 
27,333
Cash
  
 
28,559
Foreign currency held at value (cost $27,434)
  
 
27,366
Dividends receivable
  
 
351,431
Reclaims receivable
  
 
173,217
Distributions receivable from Fidelity Central Funds
  
 
1,401
Receivable for daily variation margin on futures contracts
  
 
1,770
  Total assets
  
 
82,564,452
Liabilities
  
 
 
 
Accrued management fee
$
26,512
  
 
Collateral on securities loaned
2,024,860
  
 
  Total Liabilities
  
 
 
2,051,372
Net Assets  
  
 
$
80,513,080
Net Assets consist of:
  
 
 
 
Paid in capital
  
 
$
102,771,006
Total accumulated earnings (loss)
  
 
 
(22,257,926)
Net Assets
  
 
$
80,513,080
Net Asset Value, offering price and redemption price per share ($80,513,080 ÷ 4,500,000 shares)
  
 
$
17.89
 
Statement of Operations
 
 
 
Year ended
October 31, 2023
Investment Income
  
 
 
 
Dividends
 
 
$
4,894,308
Income from Fidelity Central Funds (including $20,496 from security lending)
 
 
26,359
 Income before foreign taxes withheld
  
 
$
4,920,667
Less foreign taxes withheld
  
 
(499,911)
 Total Income
  
 
 
4,420,756
Expenses
  
 
 
 
Management fee
$
340,336
  
 
Independent trustees' fees and expenses
497
  
 
 Total expenses before reductions
  
340,833
  
 
 Expense reductions
  
(232)
  
 
 Total expenses after reductions
  
 
 
340,601
Net Investment income (loss)
  
 
 
4,080,155
Realized and Unrealized Gain (Loss)
  
 
 
 
Net realized gain (loss) on:
  
 
 
 
 Investment Securities:
  
 
 
 
   Unaffiliated issuers  
  
(1,655,744)
  
 
   Redemptions in-kind
  
(197,460)
  
 
 Foreign currency transactions
  
(112,310)
  
 
 Futures contracts
  
83,203
  
 
Total net realized gain (loss)
  
 
 
(1,882,311)
Change in net unrealized appreciation (depreciation) on:
  
 
 
 
 Investment Securities:
  
 
 
 
   Unaffiliated issuers  
  
7,138,307
  
 
 Assets and liabilities in foreign currencies
  
152,380
  
 
 Futures contracts
  
(30,694)
  
 
Total change in net unrealized appreciation (depreciation)
  
 
 
7,259,993
Net gain (loss)
  
 
 
5,377,682
Net increase (decrease) in net assets resulting from operations
  
 
$
9,457,837
Statement of Changes in Net Assets
 
 
Year ended
October 31, 2023
  
Year ended
October 31, 2022
Increase (Decrease) in Net Assets
  
 
 
 
Operations
  
 
 
Net investment income (loss)
$
4,080,155
$
4,486,859
Net realized gain (loss)
  
(1,882,311)
 
 
5,237,224
 
Change in net unrealized appreciation (depreciation)
  
7,259,993
  
(26,568,820)
 
Net increase (decrease) in net assets resulting from operations
  
9,457,837
 
 
(16,844,737)
 
Distributions to shareholders
  
(4,144,700)
 
 
(4,783,300)
 
 
 
 
 
 
Share transactions
  
 
 
 
Proceeds from sales of shares
  
-
  
55,975,704
Cost of shares redeemed
  
(5,529,770)
  
(35,815,029)
 
 
 
 
 
  Net increase (decrease) in net assets resulting from share transactions
  
(5,529,770)
 
 
20,160,675
 
Total increase (decrease) in net assets
  
(216,633)
 
 
(1,467,362)
 
 
 
 
 
 
Net Assets
  
 
 
 
Beginning of period
  
80,729,713
  
82,197,075
 
End of period
$
80,513,080
$
80,729,713
 
 
 
 
 
Other Information
  
 
 
 
Shares
  
 
 
 
Sold
  
-
  
2,600,000
Redeemed
  
(300,000)
  
(1,700,000)
Net increase (decrease)
  
(300,000)
  
900,000
 
 
 
 
 
 
Financial Highlights
Fidelity® International High Dividend ETF
 
Years ended October 31,
  
2023  
  
2022 
  
2021  
  
2020 
  
2019 
  Selected Per-Share Data 
  
 
 
 
 
 
 
 
 
 
  Net asset value, beginning of period
$
16.82
$
21.08
$
15.10
$
20.96
$
20.56
  Income from Investment Operations
 
 
 
 
 
 
 
 
 
 
     Net investment income (loss) A,B
  
.89
 
.97
 
.77
 
.60
 
1.04
     Net realized and unrealized gain (loss)
 
1.08
 
(4.22)
 
5.95
 
(5.81)
 
.31
  Total from investment operations
 
1.97  
  
(3.25)  
  
6.72  
  
(5.21)  
  
1.35
  Distributions from net investment income
 
(.90)
 
(1.01)
 
(.74)
 
(.65)
 
(.95)
     Total distributions
 
(.90)
 
(1.01)
 
(.74)
 
(.65)
 
(.95)
  Net asset value, end of period
$
17.89
$
16.82
$
21.08
$
15.10
$
20.96
 Total Return C,D,E
  
11.57%
 
(15.83)%
 
44.78%
 
(24.98)%
 
6.84%
 Ratios to Average Net Assets B,F,G
  
 
 
 
 
 
 
 
 
 
    Expenses before reductions
 
.39%
 
.39%
 
.39%
 
.39%
 
.39%
    Expenses net of fee waivers, if any
 
.39%
 
.39%
 
.39%
 
.39%
 
.39%
    Expenses net of all reductions
 
.39%
 
.39%
 
.39%
 
.39%
 
.39%
    Net investment income (loss)
 
4.68%
 
4.96%
 
3.82%
 
3.38%
 
5.07%
 Supplemental Data
  
 
 
 
 
 
 
 
 
 
    Net assets, end of period (000 omitted)
$
80,513
$
80,730
$
82,197
$
45,290
$
44,022
    Portfolio turnover rate H,I
  
67%
 
71%
 
67%
 
82%
 
47%
 
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.
 
ETotal returns for periods of less than one year are not annualized.
 
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.
 
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).
 
Fidelity® International Multifactor ETF
Performance: The Bottom Line
NAV and closing market price average annual returns reflect the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) at NAV and Market Price, respectively, and assumes a constant rate of performance each year. The hypothetical investment and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
 
 
 
 
Periods ended October 31, 2023
 
Past 1
year
Life of
Fund
Fidelity® International Multifactor ETF - NAV A
10.58%
1.66%
Fidelity® International Multifactor ETF - Market Price B
11.43%
1.98%
Fidelity International Multifactor Index℠ A
11.02%
2.21%
MSCI World ex USA Index A
12.82%
3.84%
 
A   From February 26, 2019
 
B  From February 28, 2019, date initially listed on the CboeBZX exchange.
 $10,000 Over Life of Fund
 
Let's say hypothetically that $10,000 was invested in Fidelity® International Multifactor ETF - NAV, on February 26, 2019, when the fund started.
 
The chart shows how the value of your investment would have changed, and also shows how the Fidelity International Multifactor Index℠ and the MSCI  World ex USA Index performed over the same period.
 
Fidelity® International Multifactor ETF
Management's Discussion of Fund Performance
Market Recap:
International (non-U.S.) equities gained 12.27% for the 12 months ending October 31, 2023, according to the MSCI ACWI (All Country World Index) ex USA Index, as global economic expansion and a slowing in the pace of inflation in some markets provided a favorable backdrop for risk assets. After returning -15.86% in 2022, the index's upturn has been largely driven by a narrow set of companies in the information technology and communication services sectors, in part due to excitement for generative artificial intelligence applications. The index gained 14.07% year to date through July, including strong gains in both June (+4.50%) and July (+4.07%). The rally for international equities sputtered for the next three months (-11.33%) amid a stalling pattern in disinflationary trends, heightened global recession and geopolitical risks, soaring yields on longer-term U.S. government bonds and particularly weak economic conditions in the eurozone and China. The three-month decline left non-U.S. stocks up 1.15% year to date through October. For the full 12 months, nearly all regions advanced, with Europe ex U.K. (+18%) and Japan (+17%) leading, whereas Canada (-0.38%) lagged by the widest margin. Each of the 11 sectors advanced, with information technology (+21%) and consumer discretionary (+19%) leading the way. Energy and industrials each rose about 14%. Conversely, four defensive-oriented sectors lagged by the widest margin: real estate (+4%), health care (+6%), consumer staples (+7%) and utilities (+8%).
Comments from the Geode Capital Management, LLC, passive equity index team:
For the fiscal year, the exchange-traded fund's net asset value gained 10.58%, versus 11.02% for the Fidelity International Multifactor Index. (The ETF's relative performance was affected by differing methodologies (fund versus index) for valuing certain foreign stocks and for incorporating foreign exchange rates, as well as by required local capital gains tax.) The ETF's market price gained 11.43% the past 12 months, while the MSCI World ex US Net MA Index gained 12.82%. From a regional standpoint, Europe ex the U.K. gained roughly 16% and contributed most versus the multifactor index, followed by Japan (+16%). By sector, industrials gained 21% and contributed most, driven by the capital goods industry (+29%). Financials, which gained approximately 12%, also helped, as did communication services, which advanced roughly 16%. The consumer discretionary sector rose approximately 23%, boosted by the consumer durables & apparel industry (+25%). Health care gained 7% and consumer staples advanced 7%. Other notable contributors included the real estate (+6%), information technology (+12%), energy (+15%), materials (+5%) and utilities (+2%) sectors. Conversely, Asia Pacific ex Japan (0%), especially Australia (+6%), notably detracted, as did Canada (-2%). Turning to individual stocks, the biggest contributor was Novo-Nordisk (+78%), from the pharmaceuticals, biotechnology & life sciences category. Also in pharmaceuticals, biotechnology & life sciences, Novartis (+26%) helped. Publicis (+41%), a stock in the media & entertainment group, helped. In food, beverage & tobacco, Japan Tobacco gained roughly 50% and boosted the fund. Lastly, Mitsubishi (+75%), a stock in the capital goods category, boosted the fund. In contrast, the biggest individual detractor was Roche (-20%), from the pharmaceuticals, biotechnology & life sciences group. Also in pharmaceuticals, biotechnology & life sciences, Ono Pharmaceutical (-25%) hurt. Northland Power (-22%), a stock in the utilities category, detracted. Lastly, in food, beverage & tobacco, British American Tobacco (-18%) and Carlsberg (-19%) detracted.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or Geode Capital Management, LLC, (the ETF's subadviser) or any other person in the Geode organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and Geode disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
 
 
Fidelity® International Multifactor ETF
Investment Summary October 31, 2023 (Unaudited)
Top Holdings (% of Fund's net assets)
 
Novo Nordisk A/S Series B  (Denmark, Pharmaceuticals)
2.2
  
Novartis AG  (Switzerland, Pharmaceuticals)
1.6
  
PSP Swiss Property AG  (Switzerland, Real Estate Management & Development)
1.6
  
AstraZeneca PLC (United Kingdom) (United Kingdom, Pharmaceuticals)
1.4
  
Tokyo Gas Co. Ltd.  (Japan, Gas Utilities)
1.4
  
Roche Holding AG (participation certificate)  (United States of America, Pharmaceuticals)
1.4
  
E.ON SE  (Germany, Multi-Utilities)
1.3
  
Daito Trust Construction Co. Ltd.  (Japan, Real Estate Management & Development)
1.3
  
L'Oreal SA  (France, Personal Care Products)
1.2
  
KDDI Corp.  (Japan, Wireless Telecommunication Services)
1.2
  
 
14.6
  
 
Market Sectors (% of Fund's net assets)
 
Financials
16.5
  
Health Care
16.3
  
Consumer Staples
14.1
  
Industrials
12.7
  
Communication Services
8.9
  
Utilities
8.1
  
Consumer Discretionary
7.0
  
Real Estate
6.7
  
Information Technology
3.5
  
Materials
3.7
  
Energy
1.8
  
 
Asset Allocation (% of Fund's net assets)
Futures - 0.6%
Geographic Diversification (% of Fund's net assets)
 
*    Includes Short-Term investments and Net Other Assets (Liabilities). 
Percentages are adjusted for the effect of derivatives, if applicable.
 
 
Fidelity® International Multifactor ETF
Schedule of Investments October 31, 2023
Showing Percentage of Net Assets     
Common Stocks - 99.3%
 
 
Shares
Value ($)
 
Australia - 5.0%
 
 
 
BHP Group Ltd.
 
5,426
152,879
Flutter Entertainment PLC (Ireland) (a)
  
545
85,229
Glencore PLC
 
18,053
95,326
Insurance Australia Group Ltd.
 
34,439
123,635
JB Hi-Fi Ltd.
 
1,361
38,924
Medibank Private Ltd.
 
57,370
124,591
QBE Insurance Group Ltd.
 
13,846
136,759
Rio Tinto Ltd.
 
753
56,058
Rio Tinto PLC
 
1,777
113,314
Sonic Healthcare Ltd.
 
5,067
92,235
South32 Ltd.
 
16,777
35,266
Telstra Group Ltd.
 
121,831
293,893
Washington H. Soul Pattinson & Co. Ltd.
 
6,036
127,721
Wesfarmers Ltd.
 
2,436
77,920
TOTAL AUSTRALIA
  
 
1,553,750
Austria - 0.0%
 
 
 
OMV AG
 
293
12,809
Belgium - 0.3%
 
 
 
UCB SA
 
1,476
107,743
Brazil - 0.2%
 
 
 
Yara International ASA
 
1,529
49,955
Canada - 8.8%
 
 
 
B2Gold Corp.
 
27,028
86,443
Boyd Group Services, Inc.
 
376
64,036
Brookfield Asset Management Ltd. Class A
 
3,926
112,414
Canadian Apartment Properties (REIT) unit
 
7,909
232,556
Canadian National Railway Co.
 
1,332
140,785
Canadian Natural Resources Ltd.
 
1,037
65,779
Canadian Pacific Kansas City Ltd.
 
2,019
143,195
CGI, Inc. Class A (sub. vtg.) (a)
  
725
69,918
Constellation Software, Inc.
 
44
88,111
Constellation Software, Inc. warrants 8/22/28 (a)(b)
  
40
0
Dollarama, Inc.
 
1,339
91,340
Fairfax Financial Holdings Ltd. (sub. vtg.)
 
168
139,656
Great-West Lifeco, Inc.
 
4,075
112,776
iA Financial Corp., Inc.
 
1,796
104,390
Imperial Oil Ltd.
 
671
38,199
Intact Financial Corp.
 
1,024
143,718
Loblaw Companies Ltd.
 
2,558
208,989
Manulife Financial Corp.
 
8,389
145,875
Metro, Inc.
 
4,230
214,631
Northland Power, Inc.
 
19,079
267,855
PrairieSky Royalty Ltd.
 
1,658
29,081
Teck Resources Ltd. Class B (sub. vtg.)
 
2,363
83,405
TMX Group Ltd.
 
5,441
113,190
Whitecap Resources, Inc./Alberta
 
4,079
31,468
TOTAL CANADA
  
 
2,727,810
Denmark - 3.9%
 
 
 
A.P. Moller - Maersk A/S Series B
 
63
104,608
Carlsberg A/S Series B
 
1,547
184,027
Coloplast A/S Series B
 
1,126
117,203
Novo Nordisk A/S Series B
 
7,193
689,619
Ringkjoebing Landbobank A/S
 
706
96,032
TOTAL DENMARK
  
 
1,191,489
Finland - 0.8%
 
 
 
Kone OYJ (B Shares)
 
2,599
112,331
Orion Oyj (B Shares)
 
3,078
122,134
TOTAL FINLAND
  
 
234,465
France - 7.1%
 
 
 
Compagnie de St.-Gobain
 
2,037
110,670
Dassault Aviation SA
 
494
97,905
Edenred SA
 
2,499
132,706
Eiffage SA
 
993
89,951
Hermes International SCA
 
53
98,575
Ipsen SA
 
936
110,313
L'Oreal SA
 
907
379,789
La Francaise des Jeux SAEM (c)
  
853
27,427
LVMH Moet Hennessy Louis Vuitton SE
 
332
236,698
Publicis Groupe SA
 
3,934
298,229
SCOR SE
 
4,780
142,227
Sodexo SA
 
357
37,690
Sopra Steria Group
 
145
25,948
Thales SA
 
752
110,605
TotalEnergies SE
 
1,291
86,242
Verallia SA (c)
  
1,317
42,792
VINCI SA
 
1,528
168,745
TOTAL FRANCE
  
 
2,196,512
Germany - 6.7%
 
 
 
Allianz SE
 
996
232,557
Bayerische Motoren Werke AG (BMW)
 
1,043
96,608
Beiersdorf AG
 
1,728
226,577
Deutsche Borse AG
 
795
130,417
DHL Group
 
2,126
82,606
E.ON SE
 
34,472
408,822
Fresenius Medical Care AG & Co. KGaA
 
2,453
81,207
Fresenius SE & Co. KGaA
 
4,220
108,123
Gerresheimer AG
 
1,001
93,003
Hannover Reuck SE
 
548
120,655
Knorr-Bremse AG
 
634
35,209
Merck KGaA
 
836
125,788
SAP SE
 
1,147
153,657
Siemens AG
 
1,256
165,896
TOTAL GERMANY
  
 
2,061,125
Hong Kong - 1.2%
 
 
 
Jardine Matheson Holdings Ltd.
 
1,977
79,970
Sino Land Ltd.
 
299,322
298,763
TOTAL HONG KONG
  
 
378,733
Ireland - 0.7%
 
 
 
Glanbia PLC
 
13,418
211,040
Israel - 1.4%
 
 
 
Bank Hapoalim BM (Reg.)
 
12,589
89,838
Bank Leumi le-Israel BM
 
14,391
92,453
Icl Group Ltd.
 
9,564
46,336
Israel Discount Bank Ltd. (Class A)
 
20,843
91,449
Mizrahi Tefahot Bank Ltd.
 
2,906
89,790
NICE Ltd. (a)
  
189
29,180
TOTAL ISRAEL
  
 
439,046
Italy - 2.9%
 
 
 
Assicurazioni Generali SpA
 
6,461
128,015
BPER Banca
 
32,196
104,442
Eni SpA
 
1,868
30,462
Ferrari NV (Italy)
 
365
110,147
Moncler SpA
 
1,241
64,196
Recordati SpA
 
2,401
110,651
Snam SpA
 
76,928
352,085
TOTAL ITALY
  
 
899,998
Japan - 23.1%
 
 
 
Advance Residence Investment Corp.
 
161
349,226
Astellas Pharma, Inc.
 
16,600
208,260
Canon, Inc.
 
3,500
82,066
Dai Nippon Printing Co. Ltd.
 
3,500
90,340
Daito Trust Construction Co. Ltd.
 
3,700
394,566
Fast Retailing Co. Ltd.
 
600
130,820
GOLDWIN, Inc.
 
1,100
68,668
INPEX Corp.
 
3,800
54,762
Itochu Corp.
 
4,300
152,556
Japan Tobacco, Inc.
 
12,100
281,317
Kajima Corp.
 
6,300
103,125
KDDI Corp.
 
12,700
376,275
McDonald's Holdings Co. (Japan) Ltd.
 
2,300
89,452
Mitsubishi Corp.
 
3,700
169,920
Mitsubishi UFJ Lease & Finance Co. Ltd.
 
13,600
88,805
Mitsui & Co. Ltd.
 
4,400
157,383
Mizuho Financial Group, Inc.
 
8,500
142,869
NEC Corp.
 
1,500
71,363
Nexon Co. Ltd.
 
16,700
302,749
Nippon Telegraph & Telephone Corp.
 
309,200
360,966
NOF Corp.
 
1,500
58,764
Obayashi Corp.
 
10,600
90,150
OBIC Co. Ltd.
 
500
73,443
Ono Pharmaceutical Co. Ltd.
 
11,000
188,956
Otsuka Corp.
 
1,700
67,609
Otsuka Holdings Co. Ltd.
 
6,100
203,407
Sanrio Co. Ltd.
 
1,700
71,841
Secom Co. Ltd.
 
1,600
110,403
Sega Sammy Holdings, Inc.
 
4,300
66,610
Sekisui House Ltd.
 
5,200
100,913
SHIMANO, Inc.
 
700
99,630
Shin-Etsu Chemical Co. Ltd.
 
3,600
106,209
Shionogi & Co. Ltd.
 
5,000
230,678
Sojitz Corp.
 
4,400
90,240
Sompo Holdings, Inc.
 
2,500
107,415
Sumitomo Corp.
 
5,900
114,478
Sumitomo Forestry Co. Ltd.
 
4,000
93,341
Sumitomo Mitsui Financial Group, Inc.
 
3,700
176,394
Suntory Beverage & Food Ltd.
 
6,500
192,195
Taisei Corp.
 
2,600
87,539
TIS, Inc.
 
2,900
61,372
Tokio Marine Holdings, Inc.
 
6,700
147,896
Tokyo Gas Co. Ltd.
 
19,300
430,616
Toppan Holdings, Inc.
 
4,300
98,013
Toyo Suisan Kaisha Ltd.
 
5,400
248,169
Trend Micro, Inc.
 
1,600
59,607
USS Co. Ltd.
 
5,400
93,652
TOTAL JAPAN
  
 
7,145,028
Jordan - 0.3%
 
 
 
Hikma Pharmaceuticals PLC
 
4,448
102,632
Luxembourg - 0.2%
 
 
 
ArcelorMittal SA (Netherlands)
 
2,480
54,734
Netherlands - 4.1%
 
 
 
ASML Holding NV (Netherlands)
 
386
230,644
BE Semiconductor Industries NV
 
311
31,985
Heineken Holding NV
 
2,693
204,379
Koninklijke Ahold Delhaize NV
 
7,843
232,121
Koninklijke KPN NV
 
86,352
289,795
Shell PLC (London)
 
3,751
120,459
Wolters Kluwer NV
 
1,184
151,555
TOTAL NETHERLANDS
  
 
1,260,938
Norway - 0.7%
 
 
 
Equinor ASA
 
834
27,954
Orkla ASA
 
27,623
190,241
TOTAL NORWAY
  
 
218,195
Portugal - 0.7%
 
 
 
Galp Energia SGPS SA Class B
 
977
14,675
Jeronimo Martins SGPS SA
 
8,198
188,730
TOTAL PORTUGAL
  
 
203,405
Singapore - 2.4%
 
 
 
CapitaMall Trust
 
244,700
314,348
Oversea-Chinese Banking Corp. Ltd.
 
16,981
157,161
Singapore Exchange Ltd.
 
16,500
114,051
United Overseas Bank Ltd.
 
7,100
140,026
TOTAL SINGAPORE
  
 
725,586
Spain - 3.1%
 
 
 
CaixaBank SA
 
29,495
119,561
Endesa SA
 
18,473
346,879
Industria de Diseno Textil SA
 
3,175
109,237
Redeia Corp. SA
 
23,433
364,223
Repsol SA
 
1,305
19,070
TOTAL SPAIN
  
 
958,970
Sweden - 2.5%
 
 
 
Atlas Copco AB (A Shares)
 
10,302
132,963
Epiroc AB (A Shares)
 
4,862
79,854
Ericsson (B Shares)
 
8,407
37,631
Essity AB (B Shares)
 
9,679
220,303
Evolution AB (c)
  
807
71,645
Industrivarden AB (A Shares)
 
4,091
105,528
Securitas AB (B Shares)
 
8,777
70,121
SSAB AB (B Shares)
 
10,314
59,746
TOTAL SWEDEN
  
 
777,791
Switzerland - 7.7%
 
 
 
Baloise Holdings AG
 
701
100,291
BKW AG
 
2,115
354,650
Bucher Industries AG
 
240
85,288
Galenica AG (c)
  
1,450
109,222
Kuehne & Nagel International AG
 
404
108,541
Novartis AG
 
5,396
501,267
PSP Swiss Property AG
 
4,015
492,803
Sandoz Group AG
 
1,077
27,989
Swatch Group AG (Bearer)
 
267
68,125
Swisscom AG
 
513
306,656
UBS Group AG
 
9,771
227,834
TOTAL SWITZERLAND
  
 
2,382,666
United Kingdom - 10.5%
 
 
 
AstraZeneca PLC (United Kingdom)
 
3,575
444,654
Auto Trader Group PLC (c)
  
37,047
279,258
BAE Systems PLC
 
10,013
134,139
Barclays PLC
 
82,187
131,244
Beazley PLC
 
19,068
119,045
British American Tobacco PLC (United Kingdom)
 
8,953
266,603
CK Hutchison Holdings Ltd.
 
16,500
83,400
Compass Group PLC
 
4,479
112,668
IG Group Holdings PLC
 
13,898
107,596
Imperial Brands PLC
 
8,683
184,492
InterContinental Hotel Group PLC
 
1,083
76,353
J Sainsbury PLC
 
50,009
156,138
Man Group PLC
 
44,162
117,626
RELX PLC (London Stock Exchange)
 
4,979
173,278
Rightmove PLC
 
40,933
234,940
Sage Group PLC
 
3,346
39,408
Smith & Nephew PLC
 
9,178
102,550
Standard Chartered PLC (United Kingdom)
 
15,809
120,856
Unilever PLC
 
7,818
368,940
TOTAL UNITED KINGDOM
  
 
3,253,188
United States of America - 5.0%
 
 
 
CSL Ltd.
 
1,414
208,017
Experian PLC
 
3,364
101,684
GSK PLC
 
13,544
239,523
Haleon PLC
 
48,212
192,767
Holcim AG
 
1,286
79,247
Roche Holding AG (participation certificate)
 
1,672
429,644
Sanofi SA
 
3,143
284,708
TOTAL UNITED STATES OF AMERICA
  
 
1,535,590
 
TOTAL COMMON STOCKS
 (Cost $31,707,656)
  
 
 
30,683,198
 
 
 
 
Money Market Funds - 0.7%
 
 
Shares
Value ($)
 
Fidelity Cash Central Fund 5.40% (d)
 
 (Cost $208,816)
 
 
208,775
208,816
 
 
 
 
 
TOTAL INVESTMENT IN SECURITIES - 100.0%
 (Cost $31,916,472)
 
  
 
30,892,014
NET OTHER ASSETS (LIABILITIES) - 0.0%  
(5,812)
NET ASSETS - 100.0%
30,886,202
 
 
 
Futures Contracts 
 
Number
of contracts
Expiration
Date
Notional
Amount ($)
 
Value ($)
 
Unrealized
Appreciation/
(Depreciation) ($)
 
Purchased
  
 
 
 
 
 
 
 
 
 
 
Equity Index Contracts
  
 
 
 
 
ICE MSCI EAFE Index Contracts (United States)
2
Dec 2023
197,410
(4,498)
(4,498)
 
 
 
 
 
 
The notional amount of futures purchased as a percentage of Net Assets is 0.6%
 
 
 
Legend
 
(a)
Non-income producing
 
(b)
Level 3 security
 
(c)
Security exempt from registration under Rule 144A of the Securities Act of 1933.  These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $530,344 or 1.7% of net assets.
 
(d)
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
 
 
 
 
Affiliated Central Funds
 
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
 
 
Affiliate
Value,
beginning
of period ($)
Purchases ($)
Sales
Proceeds ($)
Dividend
Income ($)
Realized
Gain (loss) ($)
Change in
Unrealized
appreciation
(depreciation) ($)
Value,
end
of period ($)
% ownership,
end
of period
Fidelity Cash Central Fund 5.40%
-
1,882,741
1,673,925
3,031
-
-
208,816
0.0%
Total
-
1,882,741
1,673,925
3,031
-
-
208,816
  
 
 
 
 
 
 
 
 
 
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
 
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
 
Investment Valuation
 
The following is a summary of the inputs used, as of October 31, 2023, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
 
Valuation Inputs at Reporting Date:
Description
Total ($)
Level 1 ($)
Level 2 ($)
Level 3 ($)
 Investments in Securities:
  
 
 
 
 Equities:
  
 
 
 
Communication Services
2,742,761
2,742,761
-
-
Consumer Discretionary
2,217,709
2,217,709
-
-
Consumer Staples
4,351,448
4,351,448
-
-
Energy
530,960
530,960
-
-
Financials
5,059,504
5,059,504
-
-
Health Care
5,039,526
5,039,526
-
-
Industrials
3,891,482
3,891,482
-
-
Information Technology
1,121,942
1,121,942
-
-
Materials
1,120,474
1,120,474
-
-
Real Estate
2,082,262
2,082,262
-
-
Utilities
2,525,130
2,525,130
-
-
  Money Market Funds
208,816
208,816
-
-
 Total Investments in Securities:
30,892,014
30,892,014
-
-
 Derivative Instruments:
 Liabilities
  
 
 
 
Futures Contracts
(4,498)
(4,498)
-
-
  Total Liabilities
(4,498)
(4,498)
-
-
 Total Derivative Instruments:
(4,498)
(4,498)
-
-
 
Value of Derivative Instruments
 
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2023. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
 
Primary Risk Exposure / Derivative Type                                                                                                                                                                                   
 
Value
Asset ($)
Liability ($)
Equity Risk
  
 
Futures Contracts (a) 
0
(4,498)
Total Equity Risk
0
(4,498)
Total Value of Derivatives
0
(4,498)
 
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
 
 
 
Fidelity® International Multifactor ETF
Financial Statements
Statement of Assets and Liabilities
 
 
 
October 31, 2023
 
 
 
 
 
Assets
 
 
 
 
Investment in securities, at value  - See accompanying schedule:
  
 
 
 
Unaffiliated issuers (cost $31,707,656)
$
30,683,198
  
 
Fidelity Central Funds (cost $208,816)
208,816
  
 
 
 
 
 
 
 
 
 
 
 
Total Investment in Securities (cost $31,916,472)
  
 
$
30,892,014
Segregated cash with brokers for derivative instruments
  
 
8,994
Foreign currency held at value (cost $7,792)
  
 
7,767
Dividends receivable
  
 
85,613
Reclaims receivable
  
 
45,446
Distributions receivable from Fidelity Central Funds
  
 
262
Receivable for daily variation margin on futures contracts
  
 
590
  Total assets
  
 
31,040,686
Liabilities
  
 
 
 
Payable for investments purchased
$
145,016
  
 
Accrued management fee
9,468
  
 
  Total Liabilities
  
 
 
154,484
Net Assets  
  
 
$
30,886,202
Net Assets consist of:
  
 
 
 
Paid in capital
  
 
$
34,104,710
Total accumulated earnings (loss)
  
 
 
(3,218,508)
Net Assets
  
 
$
30,886,202
Net Asset Value, offering price and redemption price per share ($30,886,202 ÷ 1,300,000 shares)
  
 
$
23.76
 
Statement of Operations
 
 
 
Year ended
October 31, 2023
Investment Income
  
 
 
 
Dividends
 
 
$
793,612
Income from Fidelity Central Funds  
  
 
3,031
 Income before foreign taxes withheld
  
 
$
796,643
Less foreign taxes withheld
  
 
(80,548)
 Total Income
  
 
 
716,095
Expenses
  
 
 
 
Management fee
$
87,727
  
 
Independent trustees' fees and expenses
113
  
 
 Total expenses before reductions
  
87,840
  
 
 Expense reductions
  
(367)
  
 
 Total expenses after reductions
  
 
 
87,473
Net Investment income (loss)
  
 
 
628,622
Realized and Unrealized Gain (Loss)
  
 
 
 
Net realized gain (loss) on:
  
 
 
 
 Investment Securities:
  
 
 
 
   Unaffiliated issuers  
  
(558,946)
  
 
 Foreign currency transactions
  
(606)
  
 
 Futures contracts
  
10,021
  
 
Total net realized gain (loss)
  
 
 
(549,531)
Change in net unrealized appreciation (depreciation) on:
  
 
 
 
 Investment Securities:
  
 
 
 
   Unaffiliated issuers  
  
530,593
  
 
 Assets and liabilities in foreign currencies
  
29,656
  
 
 Futures contracts
  
230
  
 
Total change in net unrealized appreciation (depreciation)
  
 
 
560,479
Net gain (loss)
  
 
 
10,948
Net increase (decrease) in net assets resulting from operations
  
 
$
639,570
Statement of Changes in Net Assets
 
 
Year ended
October 31, 2023
  
Year ended
October 31, 2022
Increase (Decrease) in Net Assets
  
 
 
 
Operations
  
 
 
Net investment income (loss)
$
628,622
$
389,711
Net realized gain (loss)
  
(549,531)
 
 
(1,163,840)
 
Change in net unrealized appreciation (depreciation)
  
560,479
  
(3,143,159)
 
Net increase (decrease) in net assets resulting from operations
  
639,570
 
 
(3,917,288)
 
Distributions to shareholders
  
(626,600)
 
 
(524,400)
 
 
 
 
 
 
Share transactions
  
 
 
 
Proceeds from sales of shares
  
17,630,620
  
2,824,049
Cost of shares redeemed
  
-
  
(2,787,735)
 
 
 
 
 
  Net increase (decrease) in net assets resulting from share transactions
  
17,630,620
 
 
36,314
 
Total increase (decrease) in net assets
  
17,643,590
 
 
(4,405,374)
 
 
 
 
 
 
Net Assets
  
 
 
 
Beginning of period
  
13,242,612
  
17,647,986
 
End of period
$
30,886,202
$
13,242,612
 
 
 
 
 
Other Information
  
 
 
 
Shares
  
 
 
 
Sold
  
700,000
  
100,000
Redeemed
  
-
  
(100,000)
Net increase (decrease)
  
700,000
  
-
 
 
 
 
 
 
Financial Highlights
Fidelity® International Multifactor ETF
 
Years ended October 31,
  
2023  
  
2022 
  
2021  
  
2020 
  
2019 A
  Selected Per-Share Data 
  
 
 
 
 
 
 
 
 
 
  Net asset value, beginning of period
$
22.07
$
29.41
$
24.01
$
26.18
$
25.05
  Income from Investment Operations
 
 
 
 
 
 
 
 
 
 
     Net investment income (loss) B,C
  
.70
 
.65
 
.65
 
.57
 
.55
     Net realized and unrealized gain (loss)
 
1.67
 
(7.12)
 
5.34
 
(2.07)
 
1.12
  Total from investment operations
 
2.37  
  
(6.47)  
  
5.99  
  
(1.50)  
  
1.67
  Distributions from net investment income
 
(.68)
 
(.87)
 
(.59)
 
(.67)
 
(.54)
     Total distributions
 
(.68)
 
(.87)
 
(.59)
 
(.67)
 
(.54)
  Net asset value, end of period
$
23.76
$
22.07
$
29.41
$
24.01
$
26.18
 Total Return D,E
  
10.58%
 
(22.36)%
 
25.08%
 
(5.73)%
 
6.72%
 Ratios to Average Net Assets C,F,G
  
 
 
 
 
 
 
 
 
 
    Expenses before reductions
 
.39%
 
.39%
 
.39%
 
.39%
 
.39% H
    Expenses net of fee waivers, if any
 
.39%
 
.39%
 
.39%
 
.39%
 
.39% H
    Expenses net of all reductions
 
.39%
 
.39%
 
.39%
 
.39%
 
.39% H
    Net investment income (loss)
 
2.78%
 
2.51%
 
2.28%
 
2.29%
 
3.18% H
 Supplemental Data
  
 
 
 
 
 
 
 
 
 
    Net assets, end of period (000 omitted)
$
30,886
$
13,243
$
17,648
$
7,202
$
10,473
    Portfolio turnover rate I,J
  
60%
 
61%
 
74%
 
69%
 
35% K
 
AFor the period February 26, 2019 (commencement of operations) through October 31, 2019.
 
BCalculated based on average shares outstanding during the period.
 
CNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
 
DTotal returns 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.
 
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.
 
HAnnualized.
 
IPortfolio turnover rate excludes securities received or delivered in-kind.
 
JAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
 
KAmount not annualized.
 
Fidelity® International Value Factor ETF
Performance: The Bottom Line
NAV and closing market price average annual returns reflect the change in the value of an investment, assuming reinvestment of distributions from dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) at NAV and Market Price, respectively, and assumes a constant rate of performance each year. The hypothetical investment and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption or selling of fund shares. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average Annual Total Returns
 
 
 
 
Periods ended October 31, 2023
 
Past 1
year
Past 5
years
Life of
Fund
Fidelity® International Value Factor ETF - NAV A
18.72%
4.45%
1.06%
Fidelity® International Value Factor ETF - Market Price B
20.20%
4.63%
1.01%
Fidelity International Value Factor Index℠ A
19.32%
5.03%
1.62%
MSCI World ex USA Index A
12.82%
4.49%
1.41%
 
A   From January 16, 2018
 
B  From January 18, 2019, date initially listed on the NYSE Arca exchange.
 $10,000 Over Life of Fund
 
Let's say hypothetically that $10,000 was invested in Fidelity® International Value Factor ETF - NAV, on January 16, 2018, when the fund started.
 
The chart shows how the value of your investment would have changed, and also shows how the Fidelity International Value Factor Index℠ and the MSCI  World ex USA Index performed over the same period.
 
Fidelity® International Value Factor ETF
Management's Discussion of Fund Performance
Market Recap:
International (non-U.S.) equities gained 12.27% for the 12 months ending October 31, 2023, according to the MSCI ACWI (All Country World Index) ex USA Index, as global economic expansion and a slowing in the pace of inflation in some markets provided a favorable backdrop for risk assets. After returning -15.86% in 2022, the index's upturn has been largely driven by a narrow set of companies in the information technology and communication services sectors, in part due to excitement for generative artificial intelligence applications. The index gained 14.07% year to date through July, including strong gains in both June (+4.50%) and July (+4.07%). The rally for international equities sputtered for the next three months (-11.33%) amid a stalling pattern in disinflationary trends, heightened global recession and geopolitical risks, soaring yields on longer-term U.S. government bonds and particularly weak economic conditions in the eurozone and China. The three-month decline left non-U.S. stocks up 1.15% year to date through October. For the full 12 months, nearly all regions advanced, with Europe ex U.K. (+18%) and Japan (+17%) leading, whereas Canada (-0.38%) lagged by the widest margin. Each of the 11 sectors advanced, with information technology (+21%) and consumer discretionary (+19%) leading the way. Energy and industrials each rose about 14%. Conversely, four defensive-oriented sectors lagged by the widest margin: real estate (+4%), health care (+6%), consumer staples (+7%) and utilities (+8%).
Comments from the Geode Capital Management, LLC, passive equity index team:
For the fiscal year, the exchange-traded fund's net asset value gained 18.72%, versus 19.32% for the Fidelity International Value Factor Index. (The ETF's relative performance can be affected by Fidelity's methodologies for valuing certain foreign stocks and for incorporating foreign exchange rates, which differ from those used by the index, as well as by local tax laws or regulations, which vary by country.) The ETF's market price gained 20.20% the past 12 months, while the MSCI World ex US Net MA Index gained 12.82%. From a regional standpoint, Europe ex the U.K. gained approximately 20% and contributed most versus the value factor index, followed by Japan (+38%). By sector, financials gained 27% and contributed most. Industrials, which gained roughly 28%, also helped, benefiting from the capital goods industry (+38%), as did consumer discretionary, which advanced 15%, lifted by the automobiles & components industry (+23%). The information technology sector rose about 19%, boosted by the software & services industry (+32%), energy gained roughly 21% and materials advanced approximately 17%. Other notable contributors included the health care (+10%), consumer staples (+10%), utilities (+25%), real estate (+13%) and communication services (+4%) sectors. Turning to individual stocks, the top contributor was UniCredit (+79%), from the banks group. In capital goods, Mitsubishi (+75%) and Mitsui (+67%) helped. Nippon Steel (+64%), from the materials category, also contributed. Lastly, Japan Tobacco (+49%), a stock in the food, beverage & tobacco industry, contributed. Conversely, the biggest individual detractor was Roche (-20%), from the pharmaceuticals, biotechnology & life sciences group. Also in pharmaceuticals, biotechnology & life sciences, Merck (-22%) hurt. LVMH Moet Hennessy Louis Vuitton (-16%) and Panasonic Holdings (-20%), within the consumer durables & apparel category, also hindered the fund's performance. Lastly, Bank of Nova Scotia, within the banks category, returned -22% and hurt the fund.
The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization, or Geode Capital Management, LLC, (the ETF's subadviser) or any other person in the Geode organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity and Geode disclaim any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
 
 
Fidelity® International Value Factor ETF
Investment Summary October 31, 2023 (Unaudited)
Top Holdings (% of Fund's net assets)
 
Nestle SA (Reg. S)  (United States of America, Food Products)
2.2
  
Shell PLC (London)  (Netherlands, Oil, Gas & Consumable Fuels)
1.8
  
Novartis AG  (Switzerland, Pharmaceuticals)
1.7
  
SAP SE  (Germany, Software)
1.6
  
Mitsubishi UFJ Financial Group, Inc.  (Japan, Banks)
1.6
  
Japan Tobacco, Inc.  (Japan, Tobacco)
1.6
  
KDDI Corp.  (Japan, Wireless Telecommunication Services)
1.6
  
AstraZeneca PLC (United Kingdom) (United Kingdom, Pharmaceuticals)
1.5
  
Roche Holding AG (participation certificate)  (United States of America, Pharmaceuticals)
1.5
  
LVMH Moet Hennessy Louis Vuitton SE  (France, Textiles, Apparel & Luxury Goods)
1.4
  
 
16.5
  
 
Market Sectors (% of Fund's net assets)
 
Financials
20.8
  
Industrials
15.9
  
Health Care
11.1
  
Consumer Discretionary
10.7
  
Consumer Staples
9.0
  
Information Technology
8.2
  
Materials
7.6
  
Energy
6.7
  
Communication Services
4.2
  
Utilities
3.3
  
Real Estate
2.0
  
 
Asset Allocation (% of Fund's net assets)
Futures - 0.4%
Geographic Diversification (% of Fund's net assets)
 
*    Includes Short-Term investments and Net Other Assets (Liabilities). 
Percentages are adjusted for the effect of derivatives, if applicable.
 
 
Fidelity® International Value Factor ETF
Schedule of Investments October 31, 2023
Showing Percentage of Net Assets     
Common Stocks - 99.5%
 
 
Shares
Value ($)
 
Australia - 5.5%
 
 
 
BHP Group Ltd.
 
31,196
878,953
Glencore PLC
 
161,072
850,513
Macquarie Group Ltd.
 
7,639
778,601
QBE Insurance Group Ltd.
 
73,045
721,476
Rio Tinto Ltd.
 
5,278
392,925
Sonic Healthcare Ltd.
 
23,915
435,326
TOTAL AUSTRALIA
  
 
4,057,794
Canada - 9.9%
 
 
 
Bank of Nova Scotia
 
17,181
694,913
Canadian Apartment Properties (REIT) unit
 
1,509
44,371
Canadian National Railway Co.
 
5,147
544,008
Canadian Natural Resources Ltd.
 
13,251
840,542
Canadian Pacific Kansas City Ltd.
 
7,750
549,660
Canadian Tire Ltd. Class A (non-vtg.)
 
2,395
230,762
CGI, Inc. Class A (sub. vtg.) (a)
  
8,139
784,909
Fairfax Financial Holdings Ltd. (sub. vtg.)
 
809
672,509
iA Financial Corp., Inc.
 
9,071
527,239
Manulife Financial Corp.
 
37,996
660,705
Northland Power, Inc.
 
15,203
213,439
Nutrien Ltd.
 
14,639
785,386
Suncor Energy, Inc.
 
22,461
726,615
TOTAL CANADA
  
 
7,275,058
China - 1.5%
 
 
 
BOC Hong Kong (Holdings) Ltd.
 
198,000
523,810
Wilmar International Ltd.
 
224,400
583,091
TOTAL CHINA
  
 
1,106,901
Denmark - 0.7%
 
 
 
A.P. Moller - Maersk A/S Series B
 
330
547,948
Finland - 0.8%
 
 
 
Nokia Corp.
 
171,996
570,851
France - 9.7%
 
 
 
Capgemini SA
 
3,907
687,595
Carrefour SA
 
25,358
444,400
Compagnie de St.-Gobain
 
15,439
838,798
Engie SA
 
54,888
870,481
Kering SA
 
841
340,641
Klepierre SA
 
17,545
424,682
LVMH Moet Hennessy Louis Vuitton SE
 
1,464
1,043,754
Societe Generale Series A
 
33,665
752,422
Teleperformance
 
6,508
743,959
TotalEnergies SE
 
15,256
1,019,137
TOTAL FRANCE
  
 
7,165,869
Germany - 11.6%
 
 
 
Allianz SE
 
4,209
982,765
Bayer AG
 
9,872
424,275
Bayerische Motoren Werke AG (BMW)
 
7,631
706,821
Commerzbank AG
 
51,996
557,842
Deutsche Bank AG
 
61,082
668,621
Deutsche Telekom AG
 
40,584
878,322
Fresenius Medical Care AG & Co. KGaA
 
6,989
231,373
Fresenius SE & Co. KGaA
 
11,973
306,768
K+S AG
 
36,734
616,198
Mercedes-Benz Group AG (Germany)
 
12,073
707,351
Merck KGaA
 
2,324
349,678
SAP SE
 
9,099
1,218,940
Siemens AG
 
6,915
913,352
TOTAL GERMANY
  
 
8,562,306
Hong Kong - 2.1%
 
 
 
CK Asset Holdings Ltd.
 
77,500
387,272
Hong Kong Exchanges and Clearing Ltd.
 
18,300
643,164
Jardine Matheson Holdings Ltd.
 
12,700
513,715
TOTAL HONG KONG
  
 
1,544,151
Italy - 3.9%
 
 
 
Assicurazioni Generali SpA
 
33,049
654,815
Enel SpA
 
145,867
923,238
Eni SpA
 
31,044
506,247
UniCredit SpA
 
31,792
793,898
TOTAL ITALY
  
 
2,878,198
Japan - 23.5%
 
 
 
Dai-ichi Mutual Life Insurance Co.
 
41,900
878,698
Daiwa House Industry Co. Ltd.
 
20,700
564,092
Fujitsu Ltd.
 
6,200
794,830
Honda Motor Co. Ltd.
 
93,300
928,102
INPEX Corp.
 
34,500
497,185
Japan Tobacco, Inc.
 
50,800
1,181,068
KDDI Corp.
 
38,800
1,149,563
Marubeni Corp.
 
47,300
680,243
Mitsubishi Corp.
 
19,900
913,893
Mitsubishi UFJ Financial Group, Inc.
 
143,600
1,191,886
Mitsui & Co. Ltd.
 
24,500
876,335
NEC Corp.
 
15,300
727,898
Nippon Steel & Sumitomo Metal Corp.
 
39,500
842,973
Nippon Yusen KK
 
28,400
689,536
Ono Pharmaceutical Co. Ltd.
 
38,500
661,347
Panasonic Holdings Corp.
 
72,400
625,782
Shionogi & Co. Ltd.
 
17,200
793,532
Subaru Corp.
 
42,100
711,512
Sumco Corp.
 
50,800
649,067
Sumitomo Corp.
 
38,200
741,198
Sumitomo Forestry Co. Ltd.
 
32,200
751,394
Tokyo Gas Co. Ltd.
 
21,500
479,702
TOTAL JAPAN
  
 
17,329,836
Luxembourg - 0.8%
 
 
 
ArcelorMittal SA (Netherlands)
 
27,352
603,663
Netherlands - 4.3%
 
 
 
Koninklijke Ahold Delhaize NV
 
17,789
526,483
Randstad NV
 
10,594
546,903
Shell PLC (London)
 
41,007
1,316,897
Stellantis NV (Italy)
 
43,930
817,239
TOTAL NETHERLANDS
  
 
3,207,522
Singapore - 1.0%
 
 
 
Genting Singapore Ltd.
 
646,200
405,629
Singapore Telecommunications Ltd.
 
209,500
363,936
TOTAL SINGAPORE
  
 
769,565
Spain - 1.1%
 
 
 
Banco Santander SA (Spain)
 
217,978
798,576
Sweden - 3.7%
 
 
 
Ericsson (B Shares)
 
130,512
584,186
Essity AB (B Shares)
 
21,763
495,346
SSAB AB (B Shares)
 
123,101
713,089
Volvo AB (B Shares)
 
46,036
910,201
TOTAL SWEDEN
  
 
2,702,822
Switzerland - 4.0%
 
 
 
ABB Ltd. (Reg.)
 
18,612
622,547
Novartis AG
 
13,538
1,257,626
Sandoz Group AG
 
2,707
70,348
UBS Group AG
 
42,361
987,748
TOTAL SWITZERLAND
  
 
2,938,269
United Kingdom - 9.8%
 
 
 
3i Group PLC
 
19,317
453,451
Ashtead Group PLC
 
8,899
507,961
AstraZeneca PLC (United Kingdom)
 
9,010
1,120,651
BAE Systems PLC
 
52,872
708,299
Barclays PLC
 
255,048
407,286
British American Tobacco PLC (United Kingdom)
 
20,027
596,365
HSBC Holdings PLC (United Kingdom)
 
132,641
953,326
Imperial Brands PLC
 
18,749
398,370
Kingfisher PLC
 
233,268
593,858
Unilever PLC
 
17,864
843,021
Vodafone Group PLC
 
689,749
633,591
TOTAL UNITED KINGDOM
  
 
7,216,179
United States of America - 5.6%
 
 
 
GSK PLC
 
35,912
635,097
Nestle SA (Reg. S)
 
15,363
1,655,399
Roche Holding AG (participation certificate)
 
4,208
1,081,304
Sanofi SA
 
8,121
735,640
TOTAL UNITED STATES OF AMERICA
  
 
4,107,440
 
TOTAL COMMON STOCKS
 (Cost $76,456,870)
  
 
 
73,382,948
 
 
 
 
Money Market Funds - 0.1%
 
 
Shares
Value ($)
 
Fidelity Cash Central Fund 5.40% (b)
 
 (Cost $74,181)
 
 
74,166
74,181
 
 
 
 
 
TOTAL INVESTMENT IN SECURITIES - 99.6%
 (Cost $76,531,051)
 
  
 
73,457,129
NET OTHER ASSETS (LIABILITIES) - 0.4%  
310,469
NET ASSETS - 100.0%
73,767,598
 
 
 
Futures Contracts 
 
Number
of contracts
Expiration
Date
Notional
Amount ($)
 
Value ($)
 
Unrealized
Appreciation/
(Depreciation) ($)
 
Purchased
  
 
 
 
 
 
 
 
 
 
 
Equity Index Contracts
  
 
 
 
 
ICE MSCI EAFE Index Contracts (United States)
3
Dec 2023
296,115
(11,139)
(11,139)
 
 
 
 
 
 
The notional amount of futures purchased as a percentage of Net Assets is 0.4%
 
 
 
Legend
 
(a)
Non-income producing
 
(b)
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
 
 
 
 
Affiliated Central Funds
 
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
 
 
Affiliate
Value,
beginning
of period ($)
Purchases ($)
Sales
Proceeds ($)
Dividend
Income ($)
Realized
Gain (loss) ($)
Change in
Unrealized
appreciation
(depreciation) ($)
Value,
end
of period ($)
% ownership,
end
of period
Fidelity Cash Central Fund 5.40%
34,107
3,180,127
3,140,053
4,120
-
-
74,181
0.0%
Fidelity Securities Lending Cash Central Fund 5.40%
-
1,360,459
1,360,459
4,117
-
-
-
0.0%
Total
34,107
4,540,586
4,500,512
8,237
-
-
74,181
  
 
 
 
 
 
 
 
 
 
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
 
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
 
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
 
Investment Valuation
 
The following is a summary of the inputs used, as of October 31, 2023, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
 
Valuation Inputs at Reporting Date:
Description
Total ($)
Level 1 ($)
Level 2 ($)
Level 3 ($)
 Investments in Securities:
  
 
 
 
 Equities:
  
 
 
 
Communication Services
3,025,412
3,025,412
-
-
Consumer Discretionary
7,862,845
7,862,845
-
-
Consumer Staples
6,723,543
6,723,543
-
-
Energy
4,906,623
4,906,623
-
-
Financials
15,303,751
15,303,751
-
-
Health Care
8,102,965
8,102,965
-
-
Industrials
11,848,556
11,848,556
-
-
Information Technology
6,018,276
6,018,276
-
-
Materials
5,683,700
5,683,700
-
-
Real Estate
1,420,417
1,420,417
-
-
Utilities
2,486,860
2,486,860
-
-
  Money Market Funds
74,181
74,181
-
-
 Total Investments in Securities:
73,457,129
73,457,129
-
-
 Derivative Instruments:
 Liabilities
  
 
 
 
Futures Contracts
(11,139)
(11,139)
-
-
  Total Liabilities
(11,139)
(11,139)
-
-
 Total Derivative Instruments:
(11,139)
(11,139)
-
-
 
Value of Derivative Instruments
 
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of October 31, 2023. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
 
Primary Risk Exposure / Derivative Type                                                                                                                                                                                   
 
Value
Asset ($)
Liability ($)
Equity Risk
  
 
Futures Contracts (a) 
0
(11,139)
Total Equity Risk
0
(11,139)
Total Value of Derivatives
0
(11,139)
 
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
 
 
 
Fidelity® International Value Factor ETF
Financial Statements
Statement of Assets and Liabilities
 
 
 
October 31, 2023
 
 
 
 
 
Assets
 
 
 
 
Investment in securities, at value  - See accompanying schedule:
  
 
 
 
Unaffiliated issuers (cost $76,456,870)
$
73,382,948
  
 
Fidelity Central Funds (cost $74,181)
74,181
  
 
 
 
 
 
 
 
 
 
 
 
Total Investment in Securities (cost $76,531,051)
  
 
$
73,457,129
Segregated cash with brokers for derivative instruments
  
 
19,311
Cash
  
 
3,825
Foreign currency held at value (cost $8,155)
  
 
8,119
Dividends receivable
  
 
214,911
Reclaims receivable
  
 
85,560
Distributions receivable from Fidelity Central Funds
  
 
1,101
Receivable for daily variation margin on futures contracts
  
 
885
  Total assets
  
 
73,790,841
Liabilities
  
 
 
 
Accrued management fee
$
23,243
  
 
  Total Liabilities
  
 
 
23,243
Net Assets  
  
 
$
73,767,598
Net Assets consist of:
  
 
 
 
Paid in capital
  
 
$
83,486,109
Total accumulated earnings (loss)
  
 
 
(9,718,511)
Net Assets
  
 
$
73,767,598
Net Asset Value, offering price and redemption price per share ($73,767,598 ÷ 3,400,000 shares)
  
 
$
21.70
 
Statement of Operations
 
 
 
Year ended
October 31, 2023
Investment Income
  
 
 
 
Dividends
 
 
$
2,121,664
Income from Fidelity Central Funds (including $4,117 from security lending)
 
 
8,237
 Income before foreign taxes withheld
  
 
$
2,129,901
Less foreign taxes withheld
  
 
(199,850)
 Total Income
  
 
 
1,930,051
Expenses
  
 
 
 
Management fee
$
191,928
  
 
Independent trustees' fees and expenses
253
  
 
 Total expenses before reductions
  
192,181
  
 
 Expense reductions
  
(350)
  
 
 Total expenses after reductions
  
 
 
191,831
Net Investment income (loss)
  
 
 
1,738,220
Realized and Unrealized Gain (Loss)
  
 
 
 
Net realized gain (loss) on:
  
 
 
 
 Investment Securities:
  
 
 
 
   Unaffiliated issuers  
  
(1,205,445)
  
 
   Redemptions in-kind
  
1,707,252
  
 
 Foreign currency transactions
  
(37,906)
  
 
 Futures contracts
  
38,331
  
 
Total net realized gain (loss)
  
 
 
502,232
Change in net unrealized appreciation (depreciation) on:
  
 
 
 
 Investment Securities:
  
 
 
 
   Unaffiliated issuers  
  
2,926,649
  
 
 Assets and liabilities in foreign currencies
  
67,988
  
 
 Futures contracts
  
(24,315)
  
 
Total change in net unrealized appreciation (depreciation)
  
 
 
2,970,322
Net gain (loss)
  
 
 
3,472,554
Net increase (decrease) in net assets resulting from operations
  
 
$
5,210,774
Statement of Changes in Net Assets
 
 
Year ended
October 31, 2023
  
Year ended
October 31, 2022
Increase (Decrease) in Net Assets
  
 
 
 
Operations
  
 
 
Net investment income (loss)
$
1,738,220
$
1,515,077
Net realized gain (loss)
  
502,232
 
 
(1,837,712)
 
Change in net unrealized appreciation (depreciation)
  
2,970,322
  
(8,191,270)
 
Net increase (decrease) in net assets resulting from operations
  
5,210,774
 
 
(8,513,905)
 
Distributions to shareholders
  
(1,727,100)
 
 
(1,749,900)
 
 
 
 
 
 
Share transactions
  
 
 
 
Proceeds from sales of shares
  
41,390,748
  
18,476,821
Cost of shares redeemed
  
(8,989,408)
  
(11,779,865)
 
 
 
 
 
  Net increase (decrease) in net assets resulting from share transactions
  
32,401,340
 
 
6,696,956
 
Total increase (decrease) in net assets
  
35,885,014
 
 
(3,566,849)
 
 
 
 
 
 
Net Assets
  
 
 
 
Beginning of period
  
37,882,584
  
41,449,433
 
End of period
$
73,767,598
$
37,882,584
 
 
 
 
 
Other Information
  
 
 
 
Shares
  
 
 
 
Sold
  
1,800,000
  
800,000
Redeemed
  
(400,000)
  
(500,000)
Net increase (decrease)
  
1,400,000
  
300,000
 
 
 
 
 
 
Financial Highlights
Fidelity® International Value Factor ETF
 
Years ended October 31,
  
2023  
  
2022 
  
2021  
  
2020 
  
2019 
  Selected Per-Share Data 
  
 
 
 
 
 
 
 
 
 
  Net asset value, beginning of period
$
18.94
$
24.38
$
17.82
$
21.89
$
20.89
  Income from Investment Operations
 
 
 
 
 
 
 
 
 
 
     Net investment income (loss) A,B
  
.79
 
.83
 
.79
 
.51
 
.80
     Net realized and unrealized gain (loss)
 
2.78
 
(5.32)
 
6.54
 
(4.09)
 
1.05
  Total from investment operations
 
3.57  
  
(4.49)  
  
7.33  
  
(3.58)  
  
1.85
  Distributions from net investment income
 
(.81)
 
(.95)
 
(.77)
 
(.49)
 
(.85)
     Total distributions
 
(.81)
 
(.95)
 
(.77)
 
(.49)
 
(.85)
  Net asset value, end of period
$
21.70
$
18.94
$
24.38
$
17.82
$
21.89
 Total Return C,D
  
18.72%
 
(18.82)%
 
41.36%
 
(16.32)%
 
9.04%
 Ratios to Average Net Assets B,E,F
  
 
 
 
 
 
 
 
 
 
    Expenses before reductions
 
.39%
 
.39%
 
.39%
 
.39%
 
.39%
    Expenses net of fee waivers, if any
 
.39%
 
.39%
 
.39%
 
.39%
 
.39%
    Expenses net of all reductions
 
.39%
 
.39%
 
.39%
 
.39%
 
.39%
    Net investment income (loss)
 
3.52%
 
3.79%
 
3.32%
 
2.60%
 
3.74%
 Supplemental Data
  
 
 
 
 
 
 
 
 
 
    Net assets, end of period (000 omitted)
$
73,768
$
37,883
$
41,449
$
14,254
$
13,135
    Portfolio turnover rate G
  
81% H
  
69% H
  
101% H
  
76% H
  
56%
 
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. 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.
 
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.
 
Notes to Financial Statements
For the period ended October 31, 2023
 
1. Organization.
Fidelity Emerging Markets Multifactor ETF, Fidelity International High Dividend ETF, Fidelity International Multifactor ETF and Fidelity International Value Factor ETF (the Funds) are exchange-traded funds of Fidelity Covington Trust (the Trust) and are authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Certain Funds' investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
2. Investments in Fidelity Central Funds.
Funds may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
 
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
 
 
Fidelity Central Fund
Investment Manager
Investment Objective
Investment Practices
Expense RatioA
Fidelity Money Market Central Funds
Fidelity Management & Research Company LLC (FMR)
Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity.
Short-term Investments
Less than .005%
 
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
 
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Significant Accounting Policies.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. Each Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of each Fund:
 
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has designated each Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, each Fund attempts to obtain prices from one or more third party pricing services or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages each Fund's fair valuation practices and maintains the fair valuation policies and procedures. Each Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
 
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
 
Level 1 - unadjusted quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
 
Valuation techniques used to value each Fund's investments by major category are as follows:
 
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, ETFs and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
 
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
 
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of October 31, 2023 is included at the end of the Fund's Schedule of Investments.
 
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
 
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received, and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
 
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
 
Investment Transactions and Income. For financial reporting purposes and for processing shareholder transactions, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period and prior business day, respectively. The NAV per share for processing shareholder transactions is calculated as of the close of business (normally 4:00 p.m. Eastern time) of the Cboe BZX Exchange, Inc. (CboeBZX) for Fidelity Emerging Markets Multifactor ETF and Fidelity International Multifactor ETF, and of the New York Stock Exchange, Archipelago Exchange (NYSE Arca) for all other funds; normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and for certain Funds include proceeds received from litigation. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in foreign taxes withheld. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable or reclaims receivable, as applicable. Fidelity Emerging Markets Multifactor ETF did not recognize dividend income during the period on certain Russian securities due to restrictions imposed by the Russian government on these dividend payments. There is uncertainty regarding the timeline for these restrictions to be lifted and the collectability of these and future dividend payments on Russian securities.
 
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
 
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of October 31, 2023, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests. Fidelity Emerging Markets Multifactor ETF is subject to a tax imposed on capital gains by certain countries in which it invests. An estimated deferred tax liability for net unrealized appreciation on the applicable securities is included in Other payables and accrued expenses on each applicable Fund's Statement of Assets & Liabilities.
 
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
 
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
 
Book-tax differences are primarily due to futures contracts, foreign currency transactions, certain foreign taxes, tax return of capital distribution, passive foreign investment companies (PFIC), redemptions in-kind, capital loss carryforwards and losses deferred due to wash sales.
 
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows for each Fund:
 
 
Tax cost
Gross unrealized appreciation
Gross unrealized depreciation
Net unrealized appreciation (depreciation)
Fidelity Emerging Markets Multifactor ETF 
$26,481,304
$2,025,494
$(2,923,183)
$(897,689)
Fidelity International High Dividend ETF 
95,376,206
2,475,567
(15,898,398)
(13,422,831)
Fidelity International Multifactor ETF 
32,056,211
1,439,270
(2,603,467)
(1,164,197)
Fidelity International Value Factor ETF
76,826,790
2,835,084
(6,204,745)
(3,369,661)
 
The tax-based components of distributable earnings as of period end were as follows for each Fund:
 
 
Undistributed ordinary income
Capital loss carryforward
Net unrealized appreciation (depreciation) on securities and other investments
Fidelity Emerging Markets Multifactor ETF 
$-
$(3,440,732)
$(910,136)
Fidelity International High Dividend ETF 
177,123
(9,135,767)
(13,299,282)
Fidelity International Multifactor ETF 
103,008
(2,185,323)
(1,136,193)
Fidelity International Value Factor ETF
350,812
(6,754,672)
(3,314,651)
 
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
 
 
Short-term
Long-term
Total capital loss carryforward
Fidelity Emerging Markets Multifactor ETF 
$ (1,719,663)
$ (1,721,069)
$(3,440,732)
Fidelity International High Dividend ETF 
(4,953,437)
(4,182,330)
(9,135,767)
Fidelity International Multifactor ETF 
(1,527,752)
(657,571)
(2,185,323)
Fidelity International Value Factor ETF
(2,954,147)
(3,800,525)
(6,754,672)
 
 
 
 
For the applicable period ended October 31, 2023, Fidelity Emerging Markets Multifactor ETF's distributions exceeded the aggregate amount of taxable income and net realized gains resulting in a return of capital for tax purposes. This was due to reductions in taxable income available for distribution after certain distributions had been made.
 
The tax character of distributions paid was as follows:
 
October 31, 2023
 
 
 
 
Ordinary Income
Tax Return of Capital
Total
Fidelity Emerging Markets Multifactor ETF 
$1,198,769
$11,231
$1,210,000
Fidelity International High Dividend ETF 
4,144,700
-
4,144,700
Fidelity International Multifactor ETF 
626,600
-
626,600
Fidelity International Value Factor ETF
1,727,100
-
1,727,100
 
October 31, 2022
 
 
 
 
Ordinary Income
Tax Return of Capital
Total
Fidelity Emerging Markets Multifactor ETF 
$826,772
$29,228
$856,000
Fidelity International High Dividend ETF 
4,783,300
-
4,783,300
Fidelity International Multifactor ETF 
524,400
-
524,400
Fidelity International Value Factor ETF
1,749,900
-
1,749,900
 
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
4. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. Each Fund's investment objectives allow for various types of derivative instruments, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
 
Derivatives were used to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the objectives may not be achieved.
 
Derivatives were used to increase or decrease exposure to the following risk(s):
 
 
Equity Risk
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.
 
Funds are also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that a fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to a fund. Counterparty credit risk related to exchange-traded contracts may be mitigated by the protection provided by the exchange on which they trade.
 
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
 
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. Futures contracts were used to manage exposure to the stock market.
 
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
 
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end, and is representative of volume of activity during the period unless an average notional amount is presented. Any securities deposited to meet initial margin requirements are identified in the Schedule of Investments. Any cash deposited to meet initial margin requirements is presented as segregated cash with brokers for derivative instruments in the Statement of Assets and Liabilities.
5. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
 
 
Purchases ($)
Sales ($)
Fidelity Emerging Markets Multifactor ETF
22,505,230
19,543,108
Fidelity International High Dividend ETF
57,412,199
57,648,736
Fidelity International Multifactor ETF
13,483,922
12,575,707
Fidelity International Value Factor ETF
38,672,081
37,200,813
 
 
 
Securities received and delivered in-kind through subscriptions and redemptions are noted in the table below.
 
 
In-Kind Subscriptions ($)
In-Kind Redemptions ($)
Fidelity Emerging Markets Multifactor ETF
1,184,413
-
Fidelity International High Dividend ETF
-
5,344,937
Fidelity International Multifactor ETF
16,632,017
-
Fidelity International Value Factor ETF
39,670,907
8,817,309
6. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) provides the Funds with investment management related services for which the Funds pay a monthly management fee that is based on an annual rate of each Fund's average net assets as noted in the table below. Under the management contract, the investment adviser pays all other expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense.
 
 
Fee Rate
Fidelity Emerging Markets Multifactor ETF
.45%
Fidelity International High Dividend ETF
.39%
Fidelity International Multifactor ETF
.39%
Fidelity International Value Factor ETF
.39%
 
During July 2023, the Board approved changes to each Fund's management fee effective November 1, 2023. Each Fund will pay a monthly management fee as presented in the table below. Under the management contract, the investment adviser will pay all other expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense.
 
 
Fee Rate
Fidelity Emerging Markets Multifactor ETF
.25%
Fidelity International High Dividend ETF
.18%
Fidelity International Multifactor ETF
.18%
Fidelity International Value Factor ETF
.18%
 
Sub-Adviser. Geode Capital Management, LLC (Geode), serves as sub-adviser for the Funds. Geode provides discretionary investment advisory services to the Funds and is paid by the investment adviser for providing these services.
 
Interfund Trades. Funds may purchase from or sell securities to other funds affiliated with each sub-adviser under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. During the period, there were no interfund trades.
7. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
 
 
Total Security Lending Fees Paid to NFS
Security Lending Income From Securities Loaned to NFS
Value of Securities Loaned to NFS at Period End
Fidelity International High Dividend ETF
$2,224
$-
$-
Fidelity International Value Factor ETF
$447
$-
$-
8. Expense Reductions.
Through arrangements with each applicable Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
 
 
Custodian credits
Fidelity Emerging Markets Multifactor ETF 
$418
Fidelity International High Dividend ETF 
232
Fidelity International Multifactor ETF 
367
Fidelity International Value Factor ETF 
350
9. Share Transactions.
Funds issue and redeem shares at NAV only with certain authorized participants in large increments known as Creation Units. Purchases of Creation Units are made by tendering a basket of designated securities to a fund and redemption proceeds are paid with a basket of securities from a fund's portfolio with a balancing cash component to equate the market value of the basket of securities delivered or redeemed to the NAV per Creation Unit on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery. A fund's shares are available in smaller increments to investors in the secondary market at market prices and may be subject to commissions. Authorized participants pay a transaction fee to the shareholder servicing agent when purchasing and redeeming Creation Units of a fund. The transaction fee is used to offset the costs associated with the issuance and redemption of Creation Units.
10. Other.
A fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
11. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer. Significant concentrations in security types, issuers, industries, sectors, and geographic locations may magnify the factors that affect a fund's performance.
 
 
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Covington Trust and the Shareholders of Fidelity Emerging Markets Multifactor ETF, Fidelity International High Dividend ETF, Fidelity International Multifactor ETF, and Fidelity International Value Factor ETF:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statements of assets and liabilities of Fidelity Emerging Markets Multifactor ETF, Fidelity International High Dividend ETF, Fidelity International Multifactor ETF, and Fidelity International Value Factor ETF (the "Funds"), each a fund of Fidelity Covington Trust, including the schedules of investments, as of October 31, 2023, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, except for the financial highlights for Fidelity Emerging Markets Multifactor ETF and Fidelity International Multifactor ETF, which are for each of the four years in the period then ended and for the period from February 26, 2019 (commencement of operations) through October 31, 2019, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of each of the Funds as of October 31, 2023, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended (or for the periods mentioned above), in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds' internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of October 31, 2023, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
December 18, 2023
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Trustees and Officers
TRUSTEES AND OFFICERS
The Trustees, Members of the Advisory Board (if any), and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Except for Vijay Advani, each of the Trustees oversees 322 funds. Mr. Advani oversees 215 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-FIDELITY.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Chair. The Trustees have determined that an interested Chair is appropriate and benefits shareholders because an interested Chair has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chair, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chair and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. David M. Thomas serves as Lead Independent Trustee and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's alternative investment, investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the funds' Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Bettina Doulton (1964)
Year of Election or Appointment: 2020
Trustee
Ms. Doulton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2014-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Chair of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Trustee and Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* Determined to be an "Interested Trustee" by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Vijay C. Advani (1960)
Year of Election or Appointment: 2023
Trustee
Mr. Advani also serves as Trustee or Member of the Advisory Board of other funds. Previously, Mr. Advani served as Executive Chairman (2020-2022), Chief Executive Officer (2017-2020) and Chief Operating Officer (2016-2017) of Nuveen (global investment manager). He also served in various capacities at Franklin Resources (global investment manager), including Co-President (2015-2016), Executive Vice President, Global Advisory Services (2008-2015), Head of Global Retail Distribution (2005-2008), Executive Managing Director, International Retail Development (2002-2005), Managing Director, Product Developments, Sales & Marketing, Asia, Eastern Europe and Africa (2000-2002) and President, Templeton Asset Management India (1995-2000). Mr. Advani also served as Senior Investment Officer of International Finance Corporation (private equity and venture capital arm of The World Bank, 1984-1995). Mr. Advani is Chairman Emeritus of the U.S. India Business Council (2018-present), a Director of The Global Impact Investing Network (2019-present), a Director of LOK Capital (Mauritius) (2022-present), a member of the Advisory Council of LOK Capital (2022-present), a Senior Advisor of Neuberger Berman (2021-present), a Senior Advisor of Seviora Holdings Pte. Ltd (Temasek-Singapore) (2021-present), a Director of Seviora Capital (Singapore) (2021-present) and an Advisor of EQUIAM (2021-present). Mr. Advani formerly served as a member of the Board of BowX Acquisition Corp. (special purpose acquisition company, 2020-2021), a member of the Board of Intellecap (advisory arm of The Aavishkaar Group, 2018-2020), a member of the Board of Nuveen Investments, Inc. (2017-2020) and a member of the Board of Docusign (software, 2016-2019).
Thomas P. Bostick (1956)
Year of Election or Appointment: 2021
Trustee
Lieutenant General Bostick also serves as Trustee of other Fidelity® funds. Prior to his retirement, General Bostick (United States Army, Retired) held a variety of positions within the U.S. Army, including Commanding General and Chief of Engineers, U.S. Army Corps of Engineers (2012-2016) and Deputy Chief of Staff and Director of Human Resources, U.S. Army (2009-2012). General Bostick currently serves as a member of the Board and Finance and Governance & Sustainability Committees of CSX Corporation (transportation, 2020-present) and a member of the Board and Corporate Governance and Nominating Committee of Perma-Fix Environmental Services, Inc. (nuclear waste management, 2020-present). General Bostick serves as Chief Executive Officer of Bostick Global Strategies, LLC (consulting, 2016-present), as a member of the Board of HireVue, Inc. (video interview and assessment, 2020-present), as a member of the Board of Allonnia (biotechnology and engineering solutions, 2022-present) and on the Advisory Board of Solugen, Inc. (specialty bio-based chemicals manufacturer, 2022-present). Previously, General Bostick served as a Member of the Advisory Board of certain Fidelity® funds (2021), President, Intrexon Bioengineering (2018-2020) and Chief Operating Officer (2017-2020) and Senior Vice President of the Environment Sector (2016-2017) of Intrexon Corporation (biopharmaceutical company).     
Dennis J. Dirks (1948)
Year of Election or Appointment: 2018
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2018
Trustee
Mr. Donahue also serves as Trustee of other Fidelity® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York. Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018) and as a member of the Board of The Leadership Academy (previously NYC Leadership Academy) (2012-2022).     
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present), as a member of the Board of Treliant, LLC (consulting, 2019-present), as a member of the Board of Ariel Alternatives, LLC (private equity, 2022-present) and as a member of the Board and Chair of the Audit Committee of Gusto, Inc. (software, 2021-present). In addition, Ms. Fuller currently serves as a member of the Board of Roosevelt University (2019-present) and as a member of the Executive Board of New York University's Stern School of Business. Ms. Fuller previously served as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-2021).       
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Finance Committee and Governance, Compensation and Nominating Committee of Xcel Energy Inc. (utilities company, 2020-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee and Chair of the Executive Development and Compensation Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board, Compensation Committee and Executive Committee and Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-2021), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).         
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2021
Trustee
Mr. Kennedy also serves as Trustee of other Fidelity® funds. Previously, Mr. Kennedy served as a Member of the Advisory Board of certain Fidelity® funds (2020) and held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy served as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-2021). Mr. Kennedy serves as a Director of the Board of Directors of Textron Inc. (aerospace and defense, 2023-present).
Oscar Munoz (1959)
Year of Election or Appointment: 2021
Trustee
Mr. Munoz also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Munoz served as Executive Chairman (2020-2021), Chief Executive Officer (2015-2020), President (2015-2016) and a member of the Board (2010-2021) of United Airlines Holdings, Inc. Mr. Munoz currently serves as a member of the Board of CBRE Group, Inc. (commercial real estate, 2020-present), a member of the Board of Univision Communications, Inc. (Hispanic media, 2020-present), a member of the Board of Archer Aviation Inc. (2021-present), a member of the Defense Business Board of the United States Department of Defense (2021-present) and a member of the Board of Salesforce.com, Inc. (cloud-based software, 2022-present). Previously, Mr. Munoz served as a Member of the Advisory Board of certain Fidelity® funds (2021).
David M. Thomas (1949)
Year of Election or Appointment: 2018
Trustee
Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as a member of the Board of Fortune Brands Home and Security (home and security products, 2004-present) and as Director (2013-present) and Non-Executive Chairman of the Board (2022-present) of Interpublic Group of Companies, Inc. (marketing communication).     
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Executive Committee, Corporate Governance Committee and Organization and Compensation Committee and as Lead Director of the Board of Public Service Enterprise Group, Inc. (utilities company, 2012-present) and as a member of the Board of its subsidiary company, Public Service Electric and Gas Co. (2021-present). In addition, Ms. Tomasky currently serves as a member (2009-present) and President (2020-present) of the Board of the Royal Shakespeare Company - America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board and Kenyon in the World Committee of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity® funds (2020), as a member of the Board of the Columbus Regional Airport Authority (2007-2020), as a member of the Board (2011-2018) and Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2013
Trustee
Mr. Wiley also serves as Trustee of other Fidelity® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupation
Peter S. Lynch (1944)
Year of Election or Appointment: 2018
Member of the Advisory Board
Mr. Lynch also serves as a Member of the Advisory Board of other Fidelity® funds. Mr. Lynch is Vice Chairman and a Director of Fidelity Management & Research Company LLC (investment adviser firm). In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served as Vice Chairman and a Director of FMR Co., Inc. (investment adviser firm) and on the Special Olympics International Board of Directors (1997-2006).     
Karen B. Peetz (1955)
Year of Election or Appointment: 2023
Member of the Advisory Board
Ms. Peetz also serves as a Member of the Advisory Board of other funds. Previously, Ms. Peetz served as Chief Administration Officer (2020-2023) of Citigroup Inc. (a diversified financial service company). She also served in various capacities at Bank of New York Mellon Corporation, including President (2013-2016), Vice Chairman, Senior Executive Vice President and Chief Executive Officer of Financial Markets & Treasury Services (2010-2013), Senior Executive Vice President and Chief Executive Officer of Global Corporate Trust (2003-2008), Senior Vice President and Division Manager of Global Payments & Trade Services (2002-2003) and Senior Vice President and Division Manager of Domestic Corporate Trust (1998-2002). Ms. Peetz also served in various capacities at Chase Manhattan Corporation (1982-1998), including Senior Vice President and Manager of Corporate Trust International Business (1996-1998), Managing Director and Manager of Corporate Trust Services (1994-1996) and Managing Director and Group Manager of Financial Institution Sales (1990-1993). Ms. Peetz currently serves as Chair of Amherst Holdings Advisory Council (2018-present), Trustee of Johns Hopkins University (2016-present), Chair of the Carey Business School Advisory Council, Member of the Johns Hopkins Medicine Board and Finance Committee and Chair of the Lyme and Tick Related Disease Institute Advisory Council. Ms. Peetz previously served as a member of the Board of Guardian Life Insurance Company of America (2019-2023), a member of the Board of Trane Technologies (2018-2022), a member of the Board of Wells Fargo Corp. (2017-2019), a member of the Board of SunCoke Energy Inc. (2012-2016), a member of the Board of Private Export Funding Corporation (2010-2016) and as a Trustee of Penn State University (2010-2014) and the United Way of New York City (2008-2010).     
Heather Bonner (1977)
Year of Election or Appointment: 2023
Assistant Treasurer
Ms. Bonner also serves as an officer of other funds. Ms. Bonner is a Senior Vice President (2022-present) and is an employee of Fidelity Investments (2022-present). Ms. Bonner serves as Vice President, Treasurer, or Assistant Treasurer of certain Fidelity entities. Prior to joining Fidelity, Ms. Bonner served as Managing Director at AQR Capital Management (2013-2022) and was the Treasurer and Principal Financial Officer of the AQR Funds (2013-2022).
Craig S. Brown (1977)
Year of Election or Appointment: 2022
Deputy Treasurer
Mr. Brown also serves as an officer of other funds. Mr. Brown is a Vice President (2015-present) and is an employee of Fidelity Investments. Mr. Brown serves as Assistant Treasurer of FIMM, LLC (2021-present). Previously, Mr. Brown served as Assistant Treasurer of certain Fidelity® funds (2019-2022).     
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke is Head of Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments. Mr. Burke serves as President, Executive Vice President, or Director of certain Fidelity entities. Previously Mr. Burke served as head of Asset Management Investment Operations (2012-2018).
Margaret Carey (1973)
Year of Election or Appointment: 2023
Secretary and Chief Legal Officer (CLO)
Ms. Carey also serves as an officer of other funds and as CLO of certain Fidelity entities. Ms. Carey is a Senior Vice President, Deputy General Counsel (2019-present) and is an employee of Fidelity Investments.        
William C. Coffey (1969)
Year of Election or Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of other funds. Mr. Coffey is a Senior Vice President, Deputy General Counsel (2010-present) and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds (2018-2019); CLO, Secretary, or Senior Vice President of certain Fidelity entities and Assistant Secretary of certain funds (2009-2018).     
Timothy M. Cohen (1969)
Year of Election or Appointment: 2018
Vice President
Mr. Cohen also serves as Vice President of other funds. Mr. Cohen is Co-Head of Equity (2018-present) and is an employee of Fidelity Investments. Mr. Cohen serves a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). Previously, Mr. Cohen served as Executive Vice President of Fidelity SelectCo, LLC (2019) and Head of Global Equity Research (2016-2018).      
Jonathan Davis (1968)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Davis also serves as an officer of other funds. Mr. Davis is a Vice President (2006-present) and is an employee of Fidelity Investments. Mr. Davis serves as Assistant Treasurer of certain Fidelity entities.        
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato is a Senior Vice President (2017-present) and is an employee of Fidelity Investments. Ms. Del Prato serves as Vice President or Assistant Treasurer of certain Fidelity entities. Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust: Cash Portfolio and Term Portfolio (2018-2020).     
Colm A. Hogan (1973)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is a Vice President (2016-present) and is an employee of Fidelity Investments. Mr. Hogan serves as Assistant Treasurer of certain Fidelity entities. Previously, Mr. Hogan served as Deputy Treasurer of certain Fidelity® funds (2016-2020) and Assistant Treasurer of certain Fidelity® funds (2016-2018). 
Pamela R. Holding (1964)
Year of Election or Appointment: 2018
Vice President
Ms. Holding also serves as Vice President of other funds. Ms. Holding is Co-Head of Equity (2018-present) and is an employee of Fidelity Investments. Previously, Ms. Holding served as Executive Vice President of Fidelity SelectCo, LLC (2019) and as Chief Investment Officer of Fidelity Institutional Asset Management (2013-2018). 
Chris Maher (1972)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other funds. Mr. Maher is a Vice President (2008-present) and is an employee of Fidelity Investments. Mr. Maher serves as Assistant Treasurer of certain Fidelity entities. Previously, Mr. Maher served as Assistant Treasurer of certain funds (2013-2020).     
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2020
Chief Compliance Officer
Mr. Pogorelec also serves as Chief Compliance Officer of other funds. Mr. Pogorelec is a Senior Vice President of Asset Management Compliance (2020-present) and is an employee of Fidelity Investments. Mr. Pogorelec serves as Compliance Officer of Fidelity Management & Research Company LLC (investment adviser firm, 2023-present) and Ballyrock Investment Advisors LLC (2023-present). Previously, Mr. Pogorelec served as a Vice President, Associate General Counsel for Fidelity Investments (2010-2020) and Assistant Secretary of certain Fidelity® funds (2015-2020).          
Brett Segaloff (1972)
Year of Election or Appointment: 2021
Anti-Money Laundering (AML) Officer
Mr. Segaloff also serves as AML Officer of other funds. Mr. Segaloff is a Vice President (2022-present) and is an employee of Fidelity Investments. Mr. Segaloff serves as Anti Money Laundering Compliance Officer or Anti Money Laundering/Bank Secrecy Act Compliance Officer of certain Fidelity entities.          
Stacie M. Smith (1974)
Year of Election or Appointment: 2018
President and Treasurer
Ms. Smith also serves as an officer of other funds. Ms. Smith is a Senior Vice President (2016-present) and is an employee of Fidelity Investments. Ms. Smith serves as Assistant Treasurer of certain Fidelity entities and has served in other fund officer roles.
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as an officer of other funds. Mr. Wegmann is a Vice President (2016-present) and is an employee of Fidelity Investments. Mr. Wegmann serves as Assistant Treasurer of FIMM, LLC (2021-present). Previously, Mr. Wegmann served as Assistant Treasurer of certain Fidelity® funds (2019-2021).          
Shareholder Expense Example  
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
 
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (May 1, 2023 to October 31, 2023).
 
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
 
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
 
 
 
 
 
Annualized Expense Ratio- A
  
Beginning Account Value May 1, 2023
 
Ending Account Value October 31, 2023
  
Expenses Paid During Period- C May 1, 2023 to October 31, 2023
 
 
 
 
 
 
 
 
 
 
Fidelity® Emerging Markets Multifactor ETF **
  
 
 
.45%
  
 
 
 
 
 
Actual
  
 
 
 
 
$ 1,000
  
$ 987.00
  
$ 2.25
Hypothetical-B
  
 
 
 
 
$ 1,000
  
$ 1,022.94
  
$ 2.29
 
 
 
 
 
 
 
 
 
 
Fidelity® International High Dividend ETF **
  
 
 
.39%
  
 
 
 
 
 
Actual
  
 
 
 
 
$ 1,000
  
$ 936.30
  
$ 1.90
Hypothetical-B
  
 
 
 
 
$ 1,000
  
$ 1,023.24
  
$ 1.99
 
 
 
 
 
 
 
 
 
 
Fidelity® International Multifactor ETF **
  
 
 
.39%
  
 
 
 
 
 
Actual
  
 
 
 
 
$ 1,000
  
$ 916.00
  
$ 1.88
Hypothetical-B
  
 
 
 
 
$ 1,000
  
$ 1,023.24
  
$ 1.99
 
 
 
 
 
 
 
 
 
 
Fidelity® International Value Factor ETF **
  
 
 
.39%
  
 
 
 
 
 
Actual
  
 
 
 
 
$ 1,000
  
$ 953.60
  
$ 1.92
Hypothetical-B
  
 
 
 
 
$ 1,000
  
$ 1,023.24
  
$ 1.99
 
A   Annualized expense ratio reflects expenses net of applicable fee waivers.
 
B   5% return per year before expenses
 
C   Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
 
** If fees and changes to the expense contract and/or expense cap, effective November 1, 2023, had been in effect during the current period, the restated annualized expense ratio and the expenses paid in the actual and hypothetical examples above would have been as shown in table below:
 
 
 
 
Annualized Expense Ratio- A
  
Expenses Paid
 
 
 
 
 
 
Fidelity® Emerging Markets Multifactor ETF
  
 
 
.25%
  
 
Actual
  
 
 
 
 
$ 1.25
Hypothetical- B
  
 
 
 
 
$ 1.28
 
 
 
 
 
 
Fidelity® International High Dividend ETF
  
 
 
.18%
  
 
Actual
  
 
 
 
 
$ 0.88
Hypothetical- B
  
 
 
 
 
$ 0.92
 
 
 
 
 
 
Fidelity® International Multifactor ETF
  
 
 
.18%
  
 
Actual
  
 
 
 
 
$ 0.87
Hypothetical- B
  
 
 
 
 
$ 0.92
 
 
 
 
 
 
Fidelity® International Value Factor ETF
  
 
 
.18%
  
 
Actual
  
 
 
 
 
$ 0.89
Hypothetical- B
  
 
 
 
 
$ 0.92
 
 
 
 
 
 
 
A   Annualized expense ratio reflects expenses net of applicable fee waivers.
  
 
 
 
 
 
B   5% return per year before expenses
  
 
 
 
 
 
 
 
 
 
 
 
 
Distributions (Unaudited)
The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
 
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
Fidelity Emerging Markets Multifactor ETF
 
December 2022
59.71%
March 2023
60.04%
June 2023
60.04%
September 2023
60.04%
Fidelity International High Dividend ETF
 
December 2022
90.37%
March 2023
97.51%
June 2023
97.51%
September 2023
97.51%
Fidelity International Multifactor ETF
 
December 2022
100%
March 2023
100%
June 2023
100%
September 2023
100%
Fidelity International Value Factor ETF
 
December 2022
86.19%
March 2023
100%
June 2023
100%
September 2023
100%
 
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are as follows:
 
Pay Date
Income
Taxes
Fidelity Emerging Markets Multifactor ETF
 
 
 
 
03/23/22
$0.1105
$0.0126
 
06/23/22
$0.4052
$0.0463
 
09/21/22
$0.2687
$0.0307
 
12/21/22
$0.1400
$0.0160
Fidelity International High Dividend ETF
 
 
 
 
03/23/22
$0.2644
$0.0204
 
06/23/22
$0.3967
$0.0307
 
09/21/22
$0.2514
$0.0194
 
12/21/22
$0.1170
$0.0090
Fidelity International Multifactor ETF
 
 
 
 
03/23/22
$0.2191
$0.0191
 
06/23/22
$0.2180
$0.0190
 
09/21/22
$0.2048
$0.0178
 
12/21/22
$0.0613
$0.0053
Fidelity International Value Factor ETF
 
 
 
 
03/23/22
$0.2337
$0.0167
 
06/23/22
$0.2984
$0.0214
 
09/21/22
$0.2025
$0.0145
 
12/21/22
$0.0883
$0.0063
 
 
 
 
The funds will notify shareholders in January 2024 of amounts for use in preparing 2023 income tax returns.
 
 
Board Approval of Investment Advisory Contracts
 
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International High Dividend ETF
Fidelity International Value Factor ETF
Fidelity Emerging Markets Multifactor ETF
Fidelity International Multifactor ETF
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), considers the renewal of each fund's management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreement (Sub-Advisory Agreement) for each fund with Geode Capital Management, LLC (Geode) (together, the Advisory Contracts). FMR and Geode are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
 
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board, acting directly and through its Committees (each of which is composed of and chaired by Independent Trustees), requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
Approval of Stub Period Continuation. At its May 2023 meeting, the Board of Trustees voted to continue each fund's management contract with FMR and the sub-advisory agreement with Geode, without modification, for two months from June 1, 2023 through July 31, 2023. The Board considered that the approval of each fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of each fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under each fund's Advisory Contracts; or (iv) the day-to-day management of each fund or the persons primarily responsible for such management. The Board also considered that since its last approval of each fund's Advisory Contracts, FMR had provided additional information on each fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board concluded that each fund's Advisory Contracts are fair and reasonable, and that each fund's Advisory Contracts should be renewed, without modification, through July 31, 2023, with the understanding that the Board would consider the annual renewal for a full one year period in July 2023.
At its July 2023 meeting, the Board unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness relative to peer funds of each fund's management fee and total expense ratio; (iii) the total costs of the services provided by and the profits realized by FMR and its affiliates (Fidelity) and Geode from their respective relationships with each fund; and (iv) the extent to which, if any, economies of scale exist and are realized as each fund grows, and whether any economies of scale are appropriately shared with fund shareholders. The Board also considered the broad range of investment choices available to shareholders from FMR's competitors and that each fund's shareholders have chosen to invest in the fund, which is part of the Fidelity family of funds. The Board's decision to renew the Advisory Contracts was not based on any single factor.
The Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable in light of all of the surrounding circumstances.
Nature, Extent, and Quality of Services Provided. The Board considered staffing as it relates to the funds, including the backgrounds and experience of investment personnel of the Investment Advisers, and also considered the Investment Advisers' implementation of each fund's investment program. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups and with senior management of Geode. The Board considered the structure of the investment personnel compensation programs and whether the structures provide appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
The Trustees also discussed with representatives of Fidelity, at meetings throughout the year, Fidelity's role in, among other things, overseeing compliance with federal securities laws and other applicable requirements by Geode with respect to the funds and monitoring and overseeing the performance and investment capabilities of Geode. The Trustees considered that the Board had received from Fidelity periodic reports about its oversight and due diligence processes, as well as periodic reports regarding the performance of Geode.
The Board also considered the nature, extent and quality of services provided by Geode. The Trustees noted that under the Sub-Advisory Agreement, subject to oversight by Fidelity, Geode is responsible for, among other things, identifying investments and arranging for execution of portfolio transactions to implement each fund's investment strategy. In addition, the Trustees noted that Geode is responsible for providing such reporting as may be requested by Fidelity to fulfill its oversight responsibilities discussed above.
Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's and Geode's investment staffs, including their size, education, experience, and resources, as well as Fidelity's and Geode's approach to recruiting, training, managing, and compensating investment personnel. The Board considered that Fidelity's and Geode's investment professionals have extensive resources, tools and capabilities so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously. Additionally, in its deliberations, the Board considered Fidelity's and Geode's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative services provided by the Investment Advisers and their affiliates under the Advisory Contracts and by FMR's affiliates under separate agreements covering pricing and bookkeeping and securities lending services for each fund; (ii) the nature and extent of Fidelity's supervision of third party service providers, principally State Street Bank and Trust Company, each fund's transfer agent and custodian; and (iii) the resources devoted by Fidelity to, and the record of compliance with, each fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers. The Board also considered each fund's securities lending activities and any payments made to Fidelity relating to securities lending.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, investor education materials, and asset allocation tools. The Board also considered that it reviews customer service metrics such as telephone response times, continuity of services on the website and metrics addressing services at Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds and/or the Fidelity funds in general.
Investment Performance. The Board took into account discussions that occur with representatives of the Investment Advisers, and reports that it receives, at Board meetings throughout the year relating to fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considered annualized return information for each fund for different time periods, measured against the securities market index the fund seeks to track. The Board also periodically considers each fund's tracking error versus its benchmark index. In its ongoing evaluation of fund investment performance, the Board gives particular attention to information indicating changes in performance of the funds over different time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance. The Board also considered information on each fund's bid-ask spread and premium/discount.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. In general, the Independent Trustees believe that an index fund's performance should be evaluated based on net performance (after fees and expenses) of the fund compared to a fund's benchmark index, over appropriate time periods taking into account relevant factors including the following: general market conditions; the characteristics of the fund's benchmark index; the extent to which statistical sampling is employed; any securities lending revenues; and fund cash flows and other factors.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should continue to benefit the shareholders of each fund.
Competitiveness of Management Fee and Total Expense Ratio. The Board was provided with information regarding industry trends in management fees and expenses. In its review of each fund's management fee and total expense ratio, the Board considered each fund's all-inclusive fee rate and also considered other expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees, paid by FMR under each fund's all-inclusive arrangement. The Board noted that Fidelity may agree to waive fees or reimburse expenses from time to time, and the extent to which, if any, it has done so for each fund.
Comparisons of Management Fees and Total Expense Ratios. Among other things, the Board reviewed data for selected groups of competitive funds and classes (referred to as "mapped groups") that were compiled by Fidelity based on combining similar investment objective categories (as classified by Lipper) that have comparable investment mandates. The data reviewed by the Board included (i) gross management fee comparisons (before taking into account expense reimbursements or caps) relative to the total universe of funds within the mapped group; (ii) gross management fee comparisons relative to a subset of non-Fidelity funds in the mapped group that are similar in size and management fee structure to each fund (referred to as the "asset size peer group"); (iii) total expense comparisons of each fund relative to funds and classes in the mapped group that have a similar load structure to each fund (referred to as the "similar load structure group"); and (iv) total expense comparisons of each fund relative to funds and classes in the similar load structure group that are similar in size and management fee structure to the fund (referred to as the "total expense asset size peer group"). The total expense asset size peer group comparison excludes performance adjustments and fund-paid 12b-1 fees to eliminate variability in fee structures.
The information provided to the Board indicated that each fund's management fee rate ranked below the competitive median of the mapped group for the 12-month period ended September 30, 2022 and below the competitive median of the asset size peer group for the 12-month period ended September 30, 2022. Further, the information provided to the Board indicated that the total expense ratio of each fund ranked below the competitive median of the similar sales load structure group for the 12-month period ended September 30, 2022 and below the competitive median of the total expense asset size peer group for the 12-month period ended September 30, 2022.
Further, the Board considered that, effective November 1, 2023, the management fee rate for each of Fidelity International High Dividend ETF, Fidelity International Multifactor ETF and Fidelity International Value Factor ETF would be reduced from 0.39% to 0.18% and the management fee rate for Fidelity Emerging Markets Multifactor ETF would be reduced from 0.45% to 0.25%.
 
Fees Charged to Other Clients. The Board also considered fee structures applicable to clients of Fidelity and Geode, such as other funds advised or subadvised by Fidelity or Geode, pension plan clients, and other institutional clients with similar mandates. The Board noted that a joint ad hoc committee created by it and the boards of other Fidelity funds periodically reviews and compares Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds and also noted the most recent findings of the committee. The Board noted that the committee's review included a consideration of the differences in services provided, fees charged, and costs incurred, as well as competition in the markets serving the different categories of clients.
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered. Further based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that each fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and servicing each fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationships with each fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies and the full Board approves such changes.
A public accounting firm has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. The engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of certain fund profitability information and its conformity to established allocation methodologies. After considering the reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's and Geode's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's fund business (i.e., fall-out benefits) as well as cases where Fidelity's and Geode's affiliates may benefit from the funds' business. The Board considered areas where potential indirect benefits to the Fidelity funds from their relationships with Fidelity may exist. The Board's consideration of these matters was informed by the findings of a joint ad hoc committee created by it and the boards of other Fidelity funds to evaluate potential fall-out benefits.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and was satisfied that the profitability was not excessive.
The Board also considered information regarding the profitability of Geode's relationship with each fund.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board recognized that, due to each fund's current contractual arrangements, its expense ratio will not decline if the fund's operating costs decrease as assets grow, or rise as assets decrease. The Board also noted that a committee (the Economies of Scale Committee) created by it and the boards of other Fidelity funds periodically analyzes whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including: (i) fund flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds, including any consideration of fund liquidations or mergers; (ii) the operation of performance fees and competitor use of performance fees; (iii) Fidelity's pricing philosophy compared to competitors; (iv) fund profitability methodology and data; (v) evaluation of competitive fund data and peer group classifications and fee and expense comparisons; (vi) the management fee and expense structures for different funds and classes and information about the differences between various fee and expense structures; (vii) group fee breakpoints and related voluntary fee waivers; and (viii) information regarding other accounts managed by Fidelity and the funds' sub-advisory arrangements.
 
Conclusion. Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board, including the Independent Trustees, concluded that the advisory and sub-advisory fee arrangements are fair and reasonable in light of all of the surrounding circumstances and that each fund's Advisory Contracts should be renewed through July 31, 2024.
 
1.9885304.105
IHD-IVE-ANN-1223