UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED
SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07319
Fidelity
Covington Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Cynthia Lo
Bessette, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrants telephone number, including area code:
617-563-7000
Date of fiscal year end: June 30
Date of reporting period: June 30, 2022
Item 1. |
Reports to Stockholders |
Fidelity® Clean Energy
ETF
Fidelity® Cloud Computing
ETF
Fidelity® Crypto Industry and Digital Payments
ETF
Fidelity® Digital Health
ETF
Fidelity® Electric Vehicles and Future Transportation
ETF
Fidelity® Metaverse
ETF
Annual
Report
June 30,
2022
To view a fund’s proxy voting guidelines and
proxy voting record for the period ended June, 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission’s (SEC) web site at http://www.sec.gov. You may also call 1-800-FIDELITY to request a free copy
of the proxy voting guidelines.
Standard &
Poor’s, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the
property of their respective owners.
All other
marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.
© 2022 FMR LLC. All Rights
reserved.
This
report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by
an effective prospectus.
A fund files its
complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC’s web site at http://www.sec.gov. A fund’s Forms N-PORT may be reviewed and
copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund’s portfolio holdings, view
the most recent holdings listing on Fidelity’s web site at http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO
BANK GUARANTEE
Neither the funds nor
Fidelity Distributors Corporation is a bank.
Note to
Shareholders:
Early in 2020, the outbreak and
spread of COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the
COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, including travel and border restrictions, quarantines, and restrictions on large gatherings. In
turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak –
significant market uncertainty and volatility. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses,
and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic
lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the
extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 crisis are
exogenous shocks that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets. Fidelity is
committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates,
commentary, and analysis on the markets and our funds.
The S&P 500® index returned -10.62% for the 12 months ending June 30, 2022, as a multitude of crosscurrents challenged the global economy and financial markets. Persistently high
inflation, exacerbated by energy price shocks from the Russia–Ukraine conflict, spurred the U.S. Federal Reserve to hike interest rates more aggressively than anticipated, and concerns about the outlook for economic growth sent stocks into
bear market territory. Against this backdrop, the index returned -8.72% in April amid clearer signals of the Fed’s intention to tighten monetary policy. In early May, the Fed approved a rare half-percentage-point interest rate increase and
announced plans to shrink its $9 trillion asset portfolio. The S&P 500® gained 0.18% for the month. June began with the Fed allowing up to billions in Treasuries and
mortgage bonds to mature every month without investing the proceeds. Two weeks later, the central bank raised rates by 0.75 percentage points, its largest increase since 1994, and said it was becoming more difficult to achieve a soft landing, in
which the economy slows enough to bring down inflation while avoiding a recession. Partly in reaction, the S&P 500 returned -8.25% in June and -19.96% since the end of 2021 – its worst first-half result to begin a year since 1970. For the
full 12 months, the growth-oriented communication services (-29%) and consumer discretionary (-24%) sectors lagged most. In contrast, energy (+40%) rode a surge in commodity prices and led by a wide margin, followed by defensive sectors, such as
utilities (+14%).
Fidelity® Clean Energy
ETF
Performance (Unaudited)
Average annual total return reflects 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) and assuming a constant rate of performance each year. The
hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total
return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average annual total returns for Fidelity® Clean Energy ETF will be reported once the fund is a year old.
$10,000 Over Life of Fund
Let’s say hypothetically that $10,000 was
invested in Fidelity Clean Energy ETF – NAV on October 5, 2021, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Fidelity Clean Energy Index and MSCI ACWI (All Country World
Index) Index performed over the same period.
Fidelity® Clean Energy
ETF
Management’s Discussion of Fund Performance
Comments
from the Geode Capital Management, LLC, passive equity index team:
From its inception on October 5, 2021, through June
30, 2022, the fund returned -16.12%, trailing the -14.76% result of the MSCI ACWI (All Country World Index) Index. In a challenging market environment, most segments in the index produced a negative return. The electrical components & equipment
sub-industry, for example, returned -39%, while heavy electrical equipment returned roughly -31% and electronic equipment & instruments returned -22%. The largest sub-industry in the index, renewable electricity, returned -9%. In contrast, the
strongest-performing category in the index was independent power producers & energy traders (+13%), while semiconductor equipment also gained in value (+4%).On an individual-stock basis, the portfolio's largest detractor was Vestas Wind Systems
(-42%), a Danish maker of wind turbines. Shares of Plug Power, a developer of hydrogen power systems, returned about -45% and hindered the fund’s result, as well. Further detracting was the stock of Sunrun (-43%), a provider of photovoltaic
solar energy generation systems, while shares of Ballard Power Systems (-52%), which makes proton exchange membrane fuel cell products, also struggled this period. A position in TPI Composites, a maker of wind blades, also pressured performance,
returning roughly -61%. Conversely, the biggest individual contributor was Enphase Energy, a maker of solar-energy products whose shares gained 28%. JinkoSolar Holding (+50%), which produces solar panels, was another key contributor, as was Drax
Group (-18%), a U.K.-based power-generation company. Other notable stocks that bolstered the portfolio’s return included Spain-based solar-energy provider Solaria Energia (+30%) and Boralex, a developer of renewable energy power facilities,
whose shares gained about 19%.
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® Clean Energy
ETF
Investment Summary (Unaudited)
Top Ten Stocks as of June 30, 2022
|
%
of fund's net assets |
Enphase
Energy, Inc. |
4.5
|
Orsted
AS |
4.0
|
Vestas
Wind Systems A/S |
3.7
|
Plug
Power, Inc. |
2.9
|
Northland
Power, Inc. |
2.8
|
Verbund
AG |
2.8
|
First
Solar, Inc. |
2.7
|
Xinyi
Solar Holdings Ltd. |
2.7
|
EDP
Renovaveis S.A. |
2.6
|
China
Longyuan Power Group Corp. Ltd. |
2.6
|
|
31.3
|
Top
Market Sectors as of June 30, 2022
|
%
of fund's net assets |
Utilities
|
52.5
|
Industrials
|
26.4
|
Information
Technology |
20.9
|
Asset Allocation as of June 30, 2022
* Foreign investments –
70.6%
Fidelity® Cloud Computing
ETF
Performance (Unaudited)
Average annual total return reflects 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) and assuming a constant rate of performance each year. The
hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total
return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average annual total returns for Fidelity® Cloud Computing ETF will be reported once the fund is a year old.
$10,000 Over Life of Fund
Let’s say hypothetically that $10,000 was
invested in Fidelity Cloud Computing ETF – NAV on October 5, 2021, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Fidelity Cloud Computing Index and MSCI ACWI (All Country
World Index) Index performed over the same period.
Fidelity® Cloud Computing
ETF
Management’s Discussion of Fund Performance
Comments
from the Geode Capital Management, LLC, passive equity index team:
From its inception on October 5, 2021, through June
30, 2022, the fund returned -36.69%, trailing the -36.15% result of the Fidelity Cloud Computing Index. In a challenging market environment, most segments in the index produced a sharply negative return. The IT consulting & other services
sub-industry, for example, returned -74%, while the internet services & infrastructure category returned -60%. The largest sub-industry in the index, application software, returned -41%, while systems software returned -24%. The
strongest-performing category in the index was communications equipment, which gained 24%. On an individual-stock basis, the portfolio’s largest detractor was Twilio (-73%), a communications-oriented software company. Shares of Salesforce, a
provider of customer relationship management software, returned -40% and hindered the fund’s result. Further pressuring performance was Shopify (-49%), a multinational e-commerce company, as well as videoconferencing company Zoom Video
Communications (-57%). A position in Snowflake, a data warehousing company, also struggled this period, returning -55%. Conversely, the biggest individual contributor was CyrusOne, an operator of data centers whose shares gained about 18%. Datto
Holding (+36%), another data-center stock, further contributed, as did NetScout Systems (+23%), a provider of cybersecurity solutions. Anaplan, a business planning software company whose stock rose 3%, and Verint Systems (+11%) also bolstered
performance.
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® Cloud Computing
ETF
Investment Summary (Unaudited)
Top Ten Stocks as of June 30, 2022
|
%
of fund's net assets |
ServiceNow,
Inc. |
4.7
|
SAP
SE |
4.6
|
Salesforce.com,
Inc. |
4.5
|
Equinix,
Inc. |
4.0
|
Snowflake,
Inc. Class A |
3.4
|
Digital
Realty Trust, Inc. |
3.4
|
Atlassian
Corp. PLC Class A |
3.1
|
Zoom
Video Communications, Inc. Class A |
3.0
|
Datadog,
Inc. Class A |
2.8
|
Workday,
Inc. Class A |
2.8
|
|
36.3
|
Top
Market Sectors as of June 30, 2022
|
%
of fund's net assets |
Information
Technology |
92.5
|
Real
Estate |
7.4
|
Asset Allocation as of June 30, 2022
* Foreign investments –
18.0%
Fidelity® Crypto Industry and
Digital Payments ETF
Investment Summary (Unaudited)
Top Ten Stocks as of June 30, 2022
|
%
of fund's net assets |
Square,
Inc. Class A |
17.2
|
Coinbase
Global, Inc. Class A |
10.7
|
Marathon
Digital Holdings, Inc. |
5.7
|
Riot
Blockchain, Inc. |
5.3
|
Bakkt
Holdings, Inc. |
4.2
|
Cleanspark,
Inc. |
3.3
|
Hut
8 Mining Corp. |
3.1
|
Bit
Digital, Inc. |
2.9
|
Hive
Blockchain Technologies Ltd. |
2.8
|
Bitfarms
Ltd. |
2.7
|
|
57.9
|
Top
Market Sectors as of June 30, 2022
|
%
of fund's net assets |
Information
Technology |
78.9
|
Financials
|
18.9
|
Consumer
Discretionary |
2.1
|
Asset Allocation as of June 30, 2022
* Foreign investments –
26.3%
Fidelity® Digital Health
ETF
Performance (Unaudited)
Average annual total return reflects 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) and assuming a constant rate of performance each year. The
hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total
return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average annual total returns for Fidelity® Digital Health ETF will be reported once the fund is a year old.
$10,000 Over Life of Fund
Let’s say hypothetically that $10,000 was
invested in Fidelity Digital Health ETF – NAV on October 5, 2021, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the MSCI ACWI (All Country World Index) Index and Fidelity Digital
Health Index performed over the same period.
Fidelity® Digital Health
ETF
Management’s Discussion of Fund Performance
Comments
from the Geode Capital Management, LLC, passive equity index team:
From its inception on October 5, 2021, through June
30, 2022, the fund returned -25.99%, trailing the -25.59% return of the Fidelity Digital Health Index. In a challenging market environment, most segments in the index produced a sharply negative return. The drug retail sub-industry, for example,
returned about -67%, while internet & direct marketing retail returned roughly -45%. The two largest categories in the index, health care equipment and health care technology, each returned approximately -26%, respectively, while health care
services returned -10%. Among the strongest-performing sub-industries this period were health care supplies (+4%) and application software (-0%). On an individual-stock basis, the portfolio's largest detractor was Teladoc Health (-74%), a
telemedicine and virtual health care company. Shares of Dexcom, a provider of glucose-monitoring devices for diabetics, returned -47% and hindered the fund's result, as well. Further detracting was the stock of Zur Rose Group (-81%), a Swiss
provider of online pharmacy services, while Intuitive Surgical (-40%), a maker of robotic-surgical products, also struggled this period. A position in Nevro, a medical device company, returned -63%, further pressuring performance. Conversely, the
biggest individual contributor was iRhythm Technologies, a developer of cardiac-monitoring technologies whose shares gained about 72%. Cerner (+33%), a health care technology company, was another key contributor, as was Vocera Communications (+65%),
a provider of communications and workflow solutions for the health care industry. Also adding value was health-fitness solutions provider Tivity Health, whose shares gained 36%, while Allscripts Healthcare Solutions (+9%), which facilitates
practice-management solutions and electronic health records for medical providers, also helped.
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® Digital Health
ETF
Investment Summary (Unaudited)
Top Ten Stocks as of June 30, 2022
|
%
of fund's net assets |
ResMed,
Inc. |
4.5
|
Veeva
Systems, Inc. Class A |
4.5
|
DexCom,
Inc. |
4.3
|
Intuitive
Surgical, Inc. |
4.2
|
Insulet
Corp. |
3.6
|
Sonova
Holding AG |
3.5
|
JD
Health International, Inc. |
3.4
|
Cochlear
Ltd. |
2.7
|
Fisher
& Paykel Healthcare Corp. Ltd. |
2.7
|
Change
Healthcare, Inc. |
2.6
|
|
36.0
|
Top
Market Sectors as of June 30, 2022
|
%
of fund's net assets |
Health
Care |
87.1
|
Consumer
Discretionary |
8.9
|
Consumer
Staples |
2.5
|
Information
Technology |
1.4
|
Asset Allocation as of June 30, 2022
* Foreign investments –
28.4%
Fidelity® Electric Vehicles
and Future Transportation ETF
Performance (Unaudited)
Average annual total return reflects 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) and assuming a constant rate of performance each year. The
hypothetical investment and the average annual total returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund’s total
return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.
Average annual total returns for Fidelity® Electric Vehicles And Future Transportation ETF will be reported once the fund is a year old.
$10,000 Over Life of Fund
Let’s say hypothetically that $10,000 was
invested in Fidelity Electric Vehicles And Future Transportation ETF – NAV on October 5, 2021, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Fidelity Electric Vehicles and
Future Transportation Index and MSCI ACWI (All Country World Index) Index performed over the same period.
Fidelity® Electric Vehicles
and Future Transportation ETF
Management’s Discussion of Fund
Performance
Comments from the Geode Capital Management, LLC, passive equity
index team:
From its inception on October 5,
2021, through June 30, 2022, the fund returned -29.15%, trailing the -28.16% return of the Fidelity Electric Vehicle and Future Transportation Index. In a challenging market environment, nearly all segments in the index produced a sharply negative
return. The trucking sub-industry, for example, returned about -63%, while electrical components & equipment returned roughly -43%. Commodity chemicals returned -35%, while the two of the largest sub-industries in the index, auto parts &
equipment and semiconductors, returned -29% and -25%, respectively. The strongest-performing sub-industry this period was diversified metals & mining, which gained about 3%. On an individual-stock basis, the portfolio's largest detractors were
Uber Technologies (-53%) and Lyft (-75%), the two biggest U.S. ride-sharing companies. Shares of Aptiv, an automotive technology supplier, returned -43% and hindered the fund's result, as well. Further detracting was the stock of NIO (-35%), a
China-based maker of electric vehicles, while shares of semiconductor giant Intel (-29%) also struggled this period. Conversely, the biggest individual contributor was Li Auto, a Chinese developer of electric vehicles whose shares gained 41%. Allkem
(+22%), a lithium exploration and production firm, bolstered the portfolio's return, as did onsemi, a chip maker whose shares rose about 13%. Also adding value was Yadea Group Holdings (+26%), a maker of electric two-wheeled vehicles, and Qualcomm
(+1%), a manufacturer of semiconductors and other products for wireless communications devices.
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® Electric Vehicles
and Future Transportation ETF
Investment Summary (Unaudited)
Top Ten Stocks as of June 30, 2022
|
%
of fund's net assets |
NIO,
Inc. ADR |
4.6
|
Tesla,
Inc. |
4.5
|
QUALCOMM,
Inc. |
4.0
|
NVIDIA
Corp. |
4.0
|
Intel
Corp. |
4.0
|
Li
Auto, Inc. ADR |
3.8
|
Samsung
SDI Co. Ltd. |
3.6
|
XPeng,
Inc. ADR |
3.4
|
Aptiv
PLC |
3.4
|
Garmin
Ltd. |
3.2
|
|
38.5
|
Top
Market Sectors as of June 30, 2022
|
%
of fund's net assets |
Consumer
Discretionary |
36.9
|
Information
Technology |
33.0
|
Industrials
|
16.4
|
Materials
|
13.7
|
Asset Allocation as of June 30, 2022
Percentages shown as 0.0% may reflect
amounts less than 0.05%.
*
Foreign investments – 48.7%
Investment Summary (Unaudited)
Top Ten Stocks as of June 30, 2022
|
%
of fund's net assets |
Tencent
Holdings Ltd. |
5.0
|
Alphabet,
Inc. Class A |
4.7
|
Apple,
Inc. |
4.6
|
Nintendo
Co. Ltd. |
4.5
|
Adobe,
Inc. |
4.2
|
Meta
Platforms, Inc. Class A |
4.2
|
NVIDIA
Corp. |
4.0
|
NetEase,
Inc. ADR |
3.8
|
Electronic
Arts, Inc. |
3.6
|
Dassault
Systemes SE |
3.3
|
|
41.9
|
Top
Market Sectors as of June 30, 2022
|
%
of fund's net assets |
Communication
Services |
64.2
|
Information
Technology |
33.4
|
Industrials
|
1.4
|
Consumer
Discretionary |
0.7
|
Asset Allocation as of June 30, 2022
* Foreign investments –
55.0%
Fidelity® Clean Energy ETF
Schedule of Investments June 30, 2022
Showing Percentage of Net Assets
Common
Stocks – 99.8% |
|
Shares
|
Value
|
INDUSTRIALS
– 26.4% |
Electrical
Equipment – 26.4% |
Array
Technologies, Inc. (a) |
41,390
|
$
455,704 |
Ballard
Power Systems, Inc. (a) |
70,162
|
442,201
|
Bloom
Energy Corp. Class A (a) |
32,379
|
534,253
|
CS
Wind Corp. |
9,805
|
436,483
|
Doosan
Fuel Cell Co. Ltd. (a) |
15,171
|
351,116
|
Nordex
SE (a) |
39,186
|
333,308
|
Plug
Power, Inc. (a) |
49,662
|
822,899
|
PowerCell
Sweden AB (a) |
25,179
|
333,184
|
Shoals
Technologies Group, Inc. (a) |
32,268
|
531,777
|
Siemens
Gamesa Renewable Energy S.A. (a) |
36,230
|
678,371
|
Sunrun,
Inc. (a) |
28,215
|
659,102
|
TPI
Composites, Inc. (a) |
23,918
|
298,975
|
Vestas
Wind Systems A/S |
49,995
|
1,053,547
|
Xinjiang
Goldwind Science & Technology Co. Ltd. |
285,400
|
533,924
|
TOTAL
INDUSTRIALS |
7,464,844
|
INFORMATION
TECHNOLOGY – 20.9% |
Electronic
Equipment, Instruments & Components – 3.4% |
Itron,
Inc. (a) |
10,819
|
534,783
|
Landis+Gyr
Group AG |
7,869
|
411,389
|
|
|
946,172
|
Semiconductors
& Semiconductor Equipment – 17.5% |
Canadian
Solar, Inc. (a) |
14,836
|
461,993
|
Enphase
Energy, Inc. (a) |
6,442
|
1,257,736
|
First
Solar, Inc. (a) |
11,232
|
765,236
|
Flat
Glass Group Co. Ltd. |
124,000
|
436,144
|
JinkoSolar
Holding Co. Ltd. (a) |
9,418
|
651,537
|
Maxeon
Solar Technologies Ltd. (a) |
21,839
|
290,241
|
SMA
Solar Technology AG (a) |
8,510
|
344,661
|
Xinyi
Solar Holdings Ltd. |
486,000
|
750,651
|
|
|
4,958,199
|
TOTAL
INFORMATION TECHNOLOGY |
5,904,371
|
UTILITIES
– 52.5% |
Electric
Utilities – 6.8% |
Orsted
AS (b) |
10,756
|
1,121,817
|
Verbund
AG |
8,096
|
790,111
|
|
|
1,911,928
|
Independent
Power and Renewable Electricity Producers – 45.7% |
Albioma
S.A. |
9,035
|
471,148
|
|
|
Shares
|
Value
|
|
|
Atlantica
Sustainable Infrastructure PLC |
16,234
|
$
523,709 |
Boralex,
Inc. |
19,241
|
639,602
|
Brookfield
Renewable Corp. Class A |
19,590
|
696,307
|
China
Datang Corp. Renewable Power Co. Ltd. |
1,193,000
|
405,930
|
China
Longyuan Power Group Corp. Ltd. |
385,000
|
743,805
|
Clearway
Energy, Inc. Class C |
17,339
|
604,091
|
Corp.
ACCIONA Energias Renovables S.A. |
14,186
|
545,475
|
Drax
Group PLC |
75,444
|
589,136
|
EDP
Renovaveis S.A. |
31,691
|
746,118
|
Encavis
AG |
26,406
|
482,417
|
eRex
Co. Ltd. |
24,600
|
398,185
|
ERG
SpA |
15,414
|
477,636
|
Innergex
Renewable Energy, Inc. |
39,371
|
528,019
|
Meridian
Energy Ltd. |
216,355
|
629,548
|
Neoen
S.A. (b) |
12,939
|
486,434
|
Northland
Power, Inc. |
26,931
|
800,028
|
Ormat
Technologies, Inc. |
8,011
|
627,662
|
RENOVA,
Inc. (a) |
25,500
|
459,490
|
Scatec
ASA (b) |
46,159
|
395,538
|
Solaria
Energia y Medio Ambiente S.A. (a) |
21,898
|
463,588
|
Sunnova
Energy International, Inc. (a) |
25,259
|
465,523
|
TransAlta
Renewables, Inc. |
35,323
|
450,454
|
West
Holdings Corp. |
11,400
|
306,282
|
|
|
12,936,125
|
TOTAL
UTILITIES |
14,848,053
|
TOTAL
COMMON STOCKS (Cost $32,687,958) |
28,217,268
|
TOTAL
INVESTMENT IN SECURITIES – 99.8% (Cost $32,687,958) |
28,217,268
|
NET
OTHER ASSETS (LIABILITIES) – 0.2% |
70,443
|
NET
ASSETS – 100.0% |
$
28,287,711 |
Legend
|
|
(a)
|
Non-income
producing. |
(b)
|
Security
is 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 $2,003,789 or 7.1% of net assets. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's
investments in Fidelity Central Funds, including ownership percentage, is presented below.
Fund
|
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, 1.58% |
$—
|
|
$4,105,856
|
|
$4,105,856
|
|
$58
|
|
$—
|
|
$—
|
|
$—
|
0.0%
|
See accompanying notes which are an integral part of the financial
statements.
Fidelity® Clean Energy ETF
Schedule of Investments–continued
Amounts in the 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.
Investment Valuation
The following is a summary of the inputs used, as of June 30,
2022, 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 in the table 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:
|
|
|
|
|
|
|
|
|
Industrials
|
|
$
7,464,844 |
|
$
7,464,844 |
|
$
— |
|
$
— |
Information
Technology |
|
5,904,371
|
|
5,904,371
|
|
—
|
|
—
|
Utilities
|
|
14,848,053
|
|
14,848,053
|
|
—
|
|
—
|
Total
Investments in Securities: |
|
$
28,217,268 |
|
$
28,217,268 |
|
$
— |
|
$
— |
Other Information
Distribution of investments by country or territory of
incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United
States of America |
29.2%
|
China
|
12.5%
|
Canada
|
11.7%
|
Spain
|
8.6%
|
Denmark
|
7.7%
|
Japan
|
4.1%
|
Germany
|
4.1%
|
United
Kingdom |
3.9%
|
France
|
3.4%
|
Austria
|
2.8%
|
South
Korea |
2.8%
|
New
Zealand |
2.2%
|
Italy
|
1.7%
|
Switzerland
|
1.5%
|
Norway
|
1.4%
|
Sweden
|
1.2%
|
Singapore
|
1.0%
|
|
99.8%
|
See accompanying notes which are an integral part of the financial
statements.
Fidelity® Cloud Computing
ETF
Schedule of Investments June 30, 2022
Showing Percentage of Net Assets
Common
Stocks – 99.9% |
|
Shares
|
Value
|
INFORMATION
TECHNOLOGY – 92.5% |
Communications
Equipment – 1.4% |
Netscout
Systems, Inc. (a) |
7,579
|
$
256,549 |
IT
Services – 9.7% |
Atos
SE (a) |
9,808
|
131,094
|
Kingsoft
Cloud Holdings Ltd. (a) |
31,815
|
141,577
|
MongoDB,
Inc. (a) |
1,818
|
471,771
|
Snowflake,
Inc. Class A (a) |
4,504
|
626,326
|
Twilio,
Inc. Class A (a) |
4,711
|
394,829
|
|
|
1,765,597
|
Software
– 70.2% |
Alteryx,
Inc. Class A (a) |
5,032
|
243,649
|
Atlassian
Corp. PLC Class A (a) |
3,001
|
562,387
|
Avaya
Holdings Corp. (a) |
28,004
|
62,729
|
Box,
Inc. Class A (a) |
11,533
|
289,940
|
C3.ai,
Inc. (a) |
11,922
|
217,696
|
Citrix
Systems, Inc. |
4,479
|
435,224
|
CommVault
Systems, Inc. (a) |
4,265
|
268,269
|
Confluent,
Inc. Class A (a) |
9,562
|
222,221
|
Coupa
Software, Inc. (a) |
4,617
|
263,631
|
Datadog,
Inc. Class A (a) |
5,396
|
513,915
|
Dropbox,
Inc. Class A (a) |
16,538
|
347,133
|
Dynatrace,
Inc. (a) |
9,489
|
374,246
|
Elastic
N.V. (a) |
4,634
|
313,583
|
Five9,
Inc. (a) |
3,608
|
328,833
|
Gitlab,
Inc. (a) |
3,466
|
184,183
|
HubSpot,
Inc. (a) |
1,336
|
401,668
|
Kingdee
International Software Group Co. Ltd. (a) |
176,000
|
412,695
|
MicroStrategy,
Inc. Class A (a) |
1,049
|
172,351
|
New
Relic, Inc. (a) |
5,597
|
280,130
|
Nutanix,
Inc. Class A (a) |
17,926
|
262,257
|
Open
Text Corp. |
10,582
|
399,424
|
Pegasystems,
Inc. |
4,656
|
222,743
|
Qualtrics
International, Inc. (a) |
14,286
|
178,718
|
Salesforce.com,
Inc. (a) |
5,030
|
830,151
|
SAP
SE |
9,283
|
843,648
|
ServiceNow,
Inc. (a) |
1,798
|
854,985
|
|
|
Shares
|
Value
|
|
|
Splunk,
Inc. (a) |
4,641
|
$
410,543 |
Sumo
Logic, Inc. (a) |
21,037
|
157,567
|
Teradata
Corp. (a) |
8,075
|
298,856
|
The
Sage Group PLC |
49,787
|
383,824
|
UiPath,
Inc. (a) |
17,210
|
313,050
|
Verint
Systems, Inc. (a) |
5,596
|
236,991
|
VMware,
Inc. Class A |
4,416
|
503,336
|
Workday,
Inc. Class A (a) |
3,678
|
513,375
|
Zoom
Video Communications, Inc. Class A (a) |
5,041
|
544,277
|
|
|
12,848,228
|
Technology
Hardware, Storage & Peripherals – 11.2% |
Hewlett
Packard Enterprise Co. |
34,973
|
463,742
|
NetApp,
Inc. |
6,765
|
441,349
|
Pure
Storage, Inc. Class A (a) |
13,584
|
349,245
|
Seagate
Technology Holdings PLC |
5,926
|
423,353
|
Western
Digital Corp. (a) |
8,452
|
378,903
|
|
|
2,056,592
|
TOTAL
INFORMATION TECHNOLOGY |
16,926,966
|
REAL
ESTATE – 7.4% |
Equity
Real Estate Investment Trusts (REITs) – 7.4% |
Digital
Realty Trust, Inc. |
4,787
|
621,496
|
Equinix,
Inc. |
1,114
|
731,921
|
TOTAL
REAL ESTATE |
1,353,417
|
TOTAL
COMMON STOCKS (Cost $27,094,233) |
18,280,383
|
TOTAL
INVESTMENT IN SECURITIES – 99.9% (Cost $27,094,233) |
18,280,383
|
NET
OTHER ASSETS (LIABILITIES) – 0.1% |
12,546
|
NET
ASSETS – 100.0% |
$
18,292,929 |
Legend
|
|
(a)
|
Non-income
producing. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's
investments in Fidelity Central Funds, including ownership percentage, is presented below.
Fund
|
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, 1.58% |
$—
|
|
$2,400,009
|
|
$2,400,009
|
|
$47
|
|
$—
|
|
$—
|
|
$—
|
0.0%
|
Amounts in the 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.
See accompanying
notes which are an integral part of the financial statements.
Fidelity® Cloud Computing
ETF
Schedule of Investments–continued
Investment Valuation
The following is a summary of the inputs used, as of June 30,
2022, 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 in the table 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:
|
|
|
|
|
|
|
|
|
Information
Technology |
|
$
16,926,966 |
|
$
16,926,966 |
|
$
— |
|
$
— |
Real
Estate |
|
1,353,417
|
|
1,353,417
|
|
—
|
|
—
|
Total
Investments in Securities: |
|
$
18,280,383 |
|
$
18,280,383 |
|
$
— |
|
$
— |
Other Information
Distribution of investments by country or territory of
incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United
States of America |
81.9%
|
Germany
|
4.6%
|
Australia
|
3.1%
|
Ireland
|
2.3%
|
Cayman
Islands |
2.2%
|
Canada
|
2.2%
|
United
Kingdom |
2.1%
|
Others
(Individually Less Than 1%) |
1.5%
|
|
99.9%
|
See accompanying notes which are an integral part of the financial
statements.
Fidelity® Crypto Industry And
Digital Payments ETF
Schedule of Investments June 30,
2022
Showing Percentage of Net Assets
Common
Stocks – 99.9% |
|
Shares
|
Value
|
CONSUMER
DISCRETIONARY – 2.1% |
Automobiles
– 2.1% |
Mullen
Automotive, Inc. (a) |
260,524
|
$
265,734 |
FINANCIALS
– 18.9% |
Capital
Markets – 17.4% |
Bakkt
Holdings, Inc. (a) |
258,142
|
542,098
|
Coinbase
Global, Inc. Class A (a) |
29,738
|
1,398,281
|
Galaxy
Digital Holdings Ltd. (a) |
77,769
|
291,193
|
Voyager
Digital Ltd. (a) |
85,720
|
37,717
|
|
|
2,269,289
|
Consumer
Finance – 1.5% |
Green
Dot Corp. Class A (a) |
7,682
|
192,895
|
TOTAL
FINANCIALS |
2,462,184
|
INFORMATION
TECHNOLOGY – 78.9% |
IT
Services – 50.6% |
Alliance
Data Systems Corp. |
5,739
|
212,687
|
Dlocal
Ltd. (a) |
10,591
|
278,014
|
Edenred
|
5,403
|
254,016
|
FleetCor
Technologies, Inc. (a) |
1,307
|
274,614
|
Flywire
Corp. (a) |
11,221
|
197,826
|
Global
Payments, Inc. |
2,436
|
269,519
|
GMO
Payment Gateway, Inc. |
3,100
|
217,916
|
Marqeta,
Inc. Class A (a) |
28,921
|
234,549
|
Mastercard,
Inc. Class A |
883
|
278,569
|
Nexi
SpA (a)(b) |
26,482
|
218,827
|
Nuvei
Corp. (a)(b) |
5,151
|
186,312
|
Paysafe
Ltd. (a) |
86,193
|
168,076
|
Shift4
Payments, Inc. (a) |
6,817
|
225,370
|
Shopify,
Inc. (a) |
8,040
|
251,170
|
Square,
Inc. Class A (a) |
36,401
|
2,237,206
|
StoneCo
Ltd. (a) |
30,753
|
236,798
|
Visa,
Inc. Class A |
1,490
|
293,366
|
|
|
Shares
|
Value
|
|
|
WEX, Inc.
(a) |
1,847
|
$
287,319 |
Worldline
S.A. (a)(b) |
7,061
|
261,172
|
|
|
6,583,326
|
Software
– 28.3% |
Argo
Blockchain PLC (a) |
31,880
|
119,869
|
Bit
Digital, Inc. (a) |
283,909
|
371,921
|
Bitfarms
Ltd. (a) |
315,100
|
352,912
|
Cipher
Mining, Inc. (a) |
79,050
|
108,298
|
Cleanspark,
Inc. (a) |
108,231
|
424,266
|
Hive
Blockchain Technologies Ltd. (a) |
122,649
|
366,720
|
Hut
8 Mining Corp. (a) |
302,012
|
401,676
|
Iris
Energy Ltd. (a) |
29,927
|
100,255
|
Marathon
Digital Holdings, Inc. (a) |
139,928
|
747,216
|
Riot
Blockchain, Inc. (a) |
163,303
|
684,240
|
|
|
3,677,373
|
TOTAL
INFORMATION TECHNOLOGY |
10,260,699
|
TOTAL
COMMON STOCKS (Cost $17,898,535) |
12,988,617
|
TOTAL
INVESTMENT IN SECURITIES – 99.9% (Cost $17,898,535) |
12,988,617
|
NET
OTHER ASSETS (LIABILITIES) – 0.1% |
15,947
|
NET
ASSETS – 100.0% |
$
13,004,564 |
Legend
|
|
(a)
|
Non-income
producing. |
(b)
|
Security
is 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 $666,311 or 5.1% of net assets. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's
investments in Fidelity Central Funds, including ownership percentage, is presented below.
Fund
|
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, 1.58% |
$—
|
|
$226,096
|
|
$226,096
|
|
$5
|
|
$—
|
|
$—
|
|
$—
|
0.0%
|
Amounts in the 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.
See accompanying
notes which are an integral part of the financial statements.
Fidelity® Crypto Industry And
Digital Payments ETF
Schedule of Investments–continued
Investment Valuation
The following is a summary of the inputs used, as of June 30,
2022, 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 in the table 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:
|
|
|
|
|
|
|
|
|
Consumer
Discretionary |
|
$
265,734 |
|
$
265,734 |
|
$
— |
|
$
— |
Financials
|
|
2,462,184
|
|
2,462,184
|
|
—
|
|
—
|
Information
Technology |
|
10,260,699
|
|
10,260,699
|
|
—
|
|
—
|
Total
Investments in Securities: |
|
$
12,988,617 |
|
$
12,988,617 |
|
$
— |
|
$
— |
Other Information
Distribution of investments by country or territory of
incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United
States of America |
73.6%
|
Canada
|
12.0%
|
France
|
4.0%
|
United
Kingdom |
2.2%
|
Uruguay
|
2.1%
|
Brazil
|
1.8%
|
Italy
|
1.7%
|
Japan
|
1.7%
|
Others
(Individually Less Than 1%) |
0.8%
|
|
99.9%
|
See accompanying notes which are an integral part of the financial
statements.
Fidelity® Digital Health
ETF
Schedule of Investments June 30, 2022
Showing Percentage of Net Assets
Common
Stocks – 99.9% |
|
Shares
|
Value
|
CONSUMER
DISCRETIONARY – 8.9% |
Household
Durables – 1.1% |
Vuzix
Corp. (a) |
14,664
|
$
104,114 |
Internet
& Direct Marketing Retail – 7.8% |
Alibaba
Health Information Technology Ltd. (a) |
340,000
|
233,976
|
JD
Health International, Inc. (a)(b) |
40,800
|
320,028
|
Ping
An Healthcare and Technology Co. Ltd. (a)(b) |
58,300
|
172,739
|
|
|
726,743
|
TOTAL
CONSUMER DISCRETIONARY |
830,857
|
CONSUMER
STAPLES – 2.5% |
Food
& Staples Retailing – 2.5% |
Shop
Apotheke Europe N.V. (a)(b) |
1,464
|
129,820
|
Zur
Rose Group AG (a) |
1,304
|
97,594
|
TOTAL
CONSUMER STAPLES |
227,414
|
HEALTH
CARE – 87.1% |
Biotechnology
– 1.1% |
Zealand
Pharma A/S (a) |
8,081
|
105,424
|
Health
Care Equipment & Supplies – 40.7% |
Axonics,
Inc. (a) |
3,371
|
191,035
|
Cochlear
Ltd. |
1,865
|
254,826
|
Demant
A/S (a) |
5,071
|
189,841
|
DexCom,
Inc. (a) |
5,386
|
401,419
|
Fisher
& Paykel Healthcare Corp. Ltd. |
19,878
|
246,936
|
Inogen,
Inc. (a) |
4,139
|
100,081
|
Insulet
Corp. (a) |
1,545
|
336,717
|
Integra
LifeSciences Holdings Corp. (a) |
3,600
|
194,508
|
Intuitive
Surgical, Inc. (a) |
1,936
|
388,575
|
iRhythm
Technologies, Inc. (a) |
1,521
|
164,314
|
Natus
Medical, Inc. (a) |
4,261
|
139,633
|
Nevro
Corp. (a) |
3,339
|
146,348
|
ResMed,
Inc. |
2,002
|
419,679
|
Senseonics
Holdings, Inc. (a) |
89,702
|
92,393
|
Sonova
Holding AG |
1,018
|
323,259
|
Tandem
Diabetes Care, Inc. (a) |
3,255
|
192,663
|
|
|
3,782,227
|
Health
Care Providers & Services – 9.7% |
Apollo
Medical Holdings, Inc. (a) |
3,982
|
153,665
|
Cigna
Corp. |
753
|
198,431
|
CorVel
Corp. (a) |
1,006
|
148,154
|
Premier,
Inc. Class A |
5,939
|
211,903
|
R1
RCM, Inc. (a) |
8,773
|
183,882
|
|
|
896,035
|
|
|
Shares
|
Value
|
|
Health
Care Technology – 35.6% |
Allscripts
Healthcare Solutions, Inc. (a) |
10,010
|
$
148,448 |
American
Well Corp. Class A (a) |
31,802
|
137,385
|
Change
Healthcare, Inc. (a) |
10,280
|
237,057
|
CompuGroup
Medical SE & Co. KgaA |
2,771
|
117,732
|
Computer
Programs & Systems, Inc. (a) |
3,206
|
102,496
|
Definitive
Healthcare Corp. (a) |
5,446
|
124,877
|
Doximity,
Inc. Class A (a) |
5,397
|
187,924
|
Evolent
Health, Inc. Class A (a) |
5,974
|
183,462
|
Health
Catalyst, Inc. (a) |
8,170
|
118,383
|
Inspire
Medical Systems, Inc. (a) |
1,249
|
228,155
|
JMDC,
Inc. |
3,400
|
147,908
|
Multiplan
Corp. (a) |
28,262
|
155,158
|
NextGen
Healthcare, Inc. (a) |
7,385
|
128,794
|
OptimizeRx
Corp. (a) |
3,961
|
108,492
|
Phreesia,
Inc. (a) |
7,031
|
175,845
|
Pro
Medicus Ltd. |
5,102
|
148,229
|
Sectra
AB |
11,343
|
152,090
|
Sharecare,
Inc. (a) |
41,261
|
65,192
|
Teladoc
Health, Inc. (a) |
6,709
|
222,806
|
Veeva
Systems, Inc. Class A (a) |
2,094
|
414,696
|
|
|
3,305,129
|
TOTAL
HEALTH CARE |
8,088,815
|
INFORMATION
TECHNOLOGY – 1.4% |
Software
– 1.4% |
Model
N, Inc. (a) |
5,057
|
129,358
|
TOTAL
COMMON STOCKS (Cost $12,400,347) |
9,276,444
|
TOTAL
INVESTMENT IN SECURITIES – 99.9% (Cost $12,400,347) |
9,276,444
|
NET
OTHER ASSETS (LIABILITIES) – 0.1% |
12,244
|
NET
ASSETS – 100.0% |
$
9,288,688 |
Legend
|
|
(a)
|
Non-income
producing. |
(b)
|
Security
is 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 $622,587 or 6.7% of net assets. |
Affiliated Central Funds
Fiscal year to date information regarding the Fund's
investments in Fidelity Central Funds, including ownership percentage, is presented below.
See accompanying notes which are an integral part of the
financial statements.
Fidelity® Digital Health
ETF
Schedule of Investments–continued
Fund
|
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, 1.58% |
$—
|
|
$957,576
|
|
$957,576
|
|
$20
|
|
$—
|
|
$—
|
|
$—
|
0.0%
|
Amounts in the 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.
Investment Valuation
The following is a summary of the inputs used, as of June 30,
2022, 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 in the table 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:
|
|
|
|
|
|
|
|
|
Consumer
Discretionary |
|
$
830,857 |
|
$
830,857 |
|
$
— |
|
$
— |
Consumer
Staples |
|
227,414
|
|
227,414
|
|
—
|
|
—
|
Health
Care |
|
8,088,815
|
|
8,088,815
|
|
—
|
|
—
|
Information
Technology |
|
129,358
|
|
129,358
|
|
—
|
|
—
|
Total
Investments in Securities: |
|
$
9,276,444 |
|
$
9,276,444 |
|
$
— |
|
$
— |
Other Information
Distribution of investments by country or territory of
incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United
States of America |
71.5%
|
China
|
5.3%
|
Switzerland
|
4.5%
|
Australia
|
4.3%
|
Denmark
|
3.2%
|
New
Zealand |
2.7%
|
Bermuda
|
2.5%
|
Sweden
|
1.6%
|
Japan
|
1.6%
|
Netherlands
|
1.4%
|
Germany
|
1.3%
|
|
99.9%
|
See accompanying notes which are an integral part of the financial
statements.
Fidelity® Electric Vehicles
and Future Transportation ETF
Schedule of Investments June 30,
2022
Showing Percentage of Net Assets
Common
Stocks – 100.0% |
|
Shares
|
Value
|
CONSUMER
DISCRETIONARY – 36.9% |
Auto
Components – 14.0% |
Aptiv
PLC (a) |
14,663
|
$
1,306,033 |
Faurecia
SE (a) |
33,228
|
657,073
|
Hella
GmbH & Co. KGaA |
8,441
|
567,866
|
Lear
Corp. |
7,536
|
948,707
|
Luminar
Technologies, Inc. (a) |
68,284
|
404,924
|
Valeo S.A.
|
40,810
|
786,099
|
Visteon
Corp. (a) |
6,758
|
699,994
|
|
|
5,370,696
|
Automobiles
– 19.0% |
Li
Auto, Inc. ADR (a) |
38,308
|
1,467,580
|
Lucid
Group, Inc. (a) |
58,613
|
1,005,799
|
NIO,
Inc. ADR (a) |
81,456
|
1,769,224
|
Tesla,
Inc. (a) |
2,547
|
1,715,201
|
XPeng,
Inc. ADR (a) |
41,665
|
1,322,447
|
|
|
7,280,251
|
Household
Durables – 3.2% |
Garmin
Ltd. |
12,390
|
1,217,318
|
Specialty
Retail – 0.7% |
EVgo,
Inc. (a) |
46,185
|
277,572
|
TOTAL
CONSUMER DISCRETIONARY |
14,145,837
|
INDUSTRIALS
– 16.4% |
Commercial
Services & Supplies – 0.8% |
Aurora
Innovation, Inc. (a) |
155,194
|
296,421
|
Electrical
Equipment – 12.3% |
Ballard
Power Systems, Inc. (a) |
85,576
|
539,349
|
Blink
Charging Co. (a) |
27,276
|
450,872
|
Bloom
Energy Corp. Class A (a) |
39,493
|
651,635
|
ChargePoint
Holdings, Inc. (a) |
50,676
|
693,754
|
Doosan
Fuel Cell Co. Ltd. (a) |
18,503
|
428,231
|
FuelCell
Energy, Inc. (a) |
141,212
|
529,545
|
Plug
Power, Inc. (a) |
60,572
|
1,003,678
|
PowerCell
Sweden AB (a) |
30,710
|
406,374
|
|
|
4,703,438
|
Machinery
– 0.8% |
The
Lion Electric Co. (a) |
76,445
|
321,833
|
Road
& Rail – 2.5% |
Lyft, Inc.
Class A (a) |
50,282
|
667,745
|
TuSimple
Holdings, Inc. (a) |
39,397
|
284,840
|
|
|
952,585
|
TOTAL
INDUSTRIALS |
6,274,277
|
INFORMATION
TECHNOLOGY – 33.0% |
Electronic
Equipment, Instruments & Components – 4.5% |
Aeva
Technologies, Inc. (a) |
111,368
|
348,582
|
Samsung
SDI Co. Ltd. |
3,367
|
1,379,578
|
|
|
1,728,160
|
|
|
Shares
|
Value
|
|
Semiconductors
& Semiconductor Equipment – 28.5% |
Allegro
MicroSystems, Inc. (a) |
14,059
|
$
290,881 |
Ambarella,
Inc. (a) |
5,396
|
353,222
|
CEVA,
Inc. (a) |
8,071
|
270,863
|
indie
Semiconductor, Inc. (a) |
31,824
|
181,397
|
Infineon
Technologies AG |
35,167
|
848,912
|
Intel
Corp. |
40,735
|
1,523,896
|
Lattice
Semiconductor Corp. (a) |
11,572
|
561,242
|
Melexis
N.V. |
4,350
|
311,290
|
NVIDIA
Corp. |
10,074
|
1,527,118
|
NXP
Semiconductors N.V. |
6,310
|
934,069
|
ON
Semiconductor Corp. (a) |
15,263
|
767,881
|
QUALCOMM,
Inc. |
12,073
|
1,542,205
|
SiTime
Corp. (a) |
2,133
|
347,743
|
Skyworks
Solutions, Inc. |
7,638
|
707,584
|
STMicroelectronics
N.V. |
23,759
|
744,793
|
|
|
10,913,096
|
TOTAL
INFORMATION TECHNOLOGY |
12,641,256
|
MATERIALS
– 13.7% |
Chemicals
– 9.1% |
Albemarle
Corp. |
4,441
|
928,080
|
Chunbo
Co. Ltd. |
2,403
|
385,139
|
LG
Chem Ltd. |
2,451
|
974,057
|
Livent
Corp. (a) |
30,066
|
682,198
|
SK
IE Technology Co. Ltd. (a)(b) |
6,805
|
514,149
|
|
|
3,483,623
|
Metals
& Mining – 4.6% |
Allkem
Ltd. (a) |
107,459
|
761,849
|
Ganfeng
Lithium Co. Ltd. (b) |
91,480
|
1,006,671
|
|
|
1,768,520
|
TOTAL
MATERIALS |
5,252,143
|
TOTAL
COMMON STOCKS (Cost $54,470,352) |
38,313,513
|
TOTAL
INVESTMENT IN SECURITIES – 100.0% (Cost $54,470,352) |
38,313,513
|
NET
OTHER ASSETS (LIABILITIES) – 0.0% |
4,290
|
NET
ASSETS – 100.0% |
$
38,317,803 |
Legend
|
|
(a)
|
Non-income
producing. |
(b)
|
Security
is 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 $1,520,820 or 4.0% of net assets. |
See accompanying notes which are an integral part of the
financial statements.
Fidelity® Electric Vehicles
and Future Transportation ETF
Schedule of Investments–continued
Affiliated Central Funds
Fiscal year to date information regarding the Fund's
investments in Fidelity Central Funds, including ownership percentage, is presented below.
Fund
|
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, 1.58% |
$—
|
|
$5,793,539
|
|
$5,793,539
|
|
$82
|
|
$—
|
|
$—
|
|
$—
|
0.0%
|
Amounts in the 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.
Investment Valuation
The following is a summary of the inputs used, as of June 30,
2022, 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 in the table 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:
|
|
|
|
|
|
|
|
|
Consumer
Discretionary |
|
$
14,145,837 |
|
$
14,145,837 |
|
$
— |
|
$
— |
Industrials
|
|
6,274,277
|
|
6,274,277
|
|
—
|
|
—
|
Information
Technology |
|
12,641,256
|
|
12,641,256
|
|
—
|
|
—
|
Materials
|
|
5,252,143
|
|
5,252,143
|
|
—
|
|
—
|
Total
Investments in Securities: |
|
$
38,313,513 |
|
$
38,313,513 |
|
$
— |
|
$
— |
Other Information
Distribution of investments by country or territory of
incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United
States of America |
51.3%
|
Cayman
Islands |
11.9%
|
South
Korea |
9.6%
|
Switzerland
|
5.1%
|
France
|
3.8%
|
Germany
|
3.7%
|
United
Kingdom |
3.4%
|
China
|
2.6%
|
Netherlands
|
2.4%
|
Canada
|
2.3%
|
Australia
|
2.0%
|
Sweden
|
1.1%
|
Others
(Individually Less Than 1%) |
0.8%
|
|
100.0%
|
See accompanying notes which are an integral part of the financial
statements.
Fidelity® Metaverse ETF
Schedule of Investments June 30, 2022
Showing Percentage of Net Assets
Common
Stocks – 99.7% |
|
Shares
|
Value
|
COMMUNICATION
SERVICES – 64.2% |
Entertainment
– 41.0% |
Bilibili,
Inc. ADR (a) |
9,346
|
$
239,258 |
Capcom
Co. Ltd. |
7,700
|
186,754
|
Com2uSCorp
|
1,574
|
86,919
|
Electronic
Arts, Inc. |
3,181
|
386,969
|
Embracer
Group AB (a) |
26,407
|
200,976
|
GungHo
Online Entertainment, Inc. |
6,800
|
119,878
|
iDreamSky
Technology Holdings Ltd. (a) |
149,600
|
110,575
|
Kakao
Games Corp. (a) |
3,412
|
129,159
|
Koei
Tecmo Holdings Co. Ltd. |
4,800
|
154,753
|
Konami
Holdings Corp. |
3,600
|
199,006
|
NCSoft
Corp. |
651
|
175,234
|
Neowiz
(a) |
4,515
|
80,327
|
NetEase,
Inc. ADR |
4,283
|
399,861
|
Netmarble
Corp. |
2,416
|
128,206
|
Nexon
Co. Ltd. |
12,200
|
249,469
|
Nintendo
Co. Ltd. |
1,100
|
475,124
|
Pearl
Abyss Corp. (a) |
3,316
|
130,505
|
Square
Enix Holdings Co. Ltd. |
4,300
|
190,225
|
Take-Two
Interactive Software, Inc. (a) |
2,792
|
342,104
|
Ubisoft
Entertainment S.A. (a) |
4,317
|
189,103
|
Wemade
Co. Ltd. |
2,165
|
96,211
|
XD,
Inc. (a) |
39,600
|
103,202
|
|
|
4,373,818
|
Interactive
Media & Services – 23.2% |
Alphabet,
Inc. Class A (a) |
232
|
505,589
|
Bumble,
Inc. Class A (a) |
5,515
|
155,247
|
Gree,
Inc. |
14,800
|
89,766
|
Meta
Platforms, Inc. Class A (a) |
2,743
|
442,309
|
NAVER
Corp. |
1,844
|
340,850
|
Snap,
Inc. Class A (a) |
22,361
|
293,600
|
Sohu.com
Ltd. ADR (a) |
6,758
|
111,980
|
Tencent
Holdings Ltd. |
11,800
|
532,936
|
|
|
2,472,277
|
TOTAL
COMMUNICATION SERVICES |
6,846,095
|
CONSUMER
DISCRETIONARY – 0.7% |
Leisure
Products – 0.7% |
GOLFZON
Co. Ltd. |
758
|
78,462
|
|
|
Shares
|
Value
|
INDUSTRIALS
– 1.4% |
Aerospace
& Defense – 1.4% |
Maxar
Technologies, Inc. |
5,632
|
$
146,939 |
INFORMATION
TECHNOLOGY – 33.4% |
IT
Services – 3.9% |
GDS
Holdings Ltd. ADR (a) |
6,835
|
228,221
|
NEXTDC
Ltd. (a) |
25,627
|
187,502
|
|
|
415,723
|
Semiconductors
& Semiconductor Equipment – 5.8% |
Cirrus
Logic, Inc. (a) |
2,644
|
191,796
|
NVIDIA
Corp. |
2,784
|
422,026
|
|
|
613,822
|
Software
– 17.9% |
Adobe,
Inc. (a) |
1,236
|
452,450
|
Agora,
Inc. ADR (a) |
15,754
|
103,504
|
AVEVA
Group PLC |
7,159
|
195,708
|
Bentley
Systems, Inc. |
6,917
|
230,336
|
Dassault
Systemes SE |
9,620
|
353,160
|
Matterport,
Inc. (a) |
23,225
|
85,003
|
PTC,
Inc. (a) |
2,563
|
272,549
|
Unity Software,
Inc. (a) |
5,777
|
212,709
|
|
|
1,905,419
|
Technology
Hardware, Storage & Peripherals – 5.8% |
Apple,
Inc. |
3,607
|
493,149
|
Super
Micro Computer, Inc. (a) |
3,208
|
129,443
|
|
|
622,592
|
TOTAL
INFORMATION TECHNOLOGY |
3,557,556
|
TOTAL
COMMON STOCKS (Cost $11,916,420) |
10,629,052
|
TOTAL
INVESTMENT IN SECURITIES – 99.7% (Cost $11,916,420) |
10,629,052
|
NET
OTHER ASSETS (LIABILITIES) – 0.3% |
28,923
|
NET
ASSETS – 100.0% |
$
10,657,975 |
Legend
|
|
(a)
|
Non-income
producing. |
Futures
Contracts |
|
Number
of contracts |
Expiration
Date |
Notional
Amount |
Value
|
Unrealized
Appreciation/ (Depreciation) |
Purchased
|
|
|
|
|
|
Equity
Index Contract |
|
|
|
|
|
CME
E-mini Nasdaq-100 Index Contracts (United States) |
1
|
September
2022 |
$23,059
|
$(323)
|
$(323)
|
The notional amount of
futures purchased as a percentage of Net Assets is 0.2%
See accompanying notes which are an integral part of the financial
statements.
Fidelity® Metaverse ETF
Schedule of Investments–continued
Affiliated Central Funds
Fiscal year to date information regarding the Fund's
investments in Fidelity Central Funds, including ownership percentage, is presented below.
Fund
|
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, 1.58% |
$—
|
|
$887,764
|
|
$887,764
|
|
$17
|
|
$—
|
|
$—
|
|
$—
|
0.0%
|
Amounts in the 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.
Investment Valuation
The following is a summary of the inputs used, as of June 30,
2022, 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 in the table 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 |
|
$
6,846,095 |
|
$
6,846,095 |
|
$
— |
|
$
— |
Consumer
Discretionary |
|
78,462
|
|
78,462
|
|
—
|
|
—
|
Industrials
|
|
146,939
|
|
146,939
|
|
—
|
|
—
|
Information
Technology |
|
3,557,556
|
|
3,557,556
|
|
—
|
|
—
|
Total
Investments in Securities: |
|
$
10,629,052 |
|
$
10,629,052 |
|
$
— |
|
$
— |
Derivative
Instruments: |
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Futures
Contracts |
|
$
(323) |
|
$
(323) |
|
$
— |
|
$
— |
Total
Liabilities |
|
$
(323) |
|
$
(323) |
|
—
|
|
$
— |
Total
Derivative Instruments: |
|
$
(323) |
|
$
(323) |
|
$
— |
|
$
— |
Value of Derivative Instruments
The following table is a summary of the Fund’s value of
derivative instruments by primary risk exposure as of June 30, 2022. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary
Risk/ Derivative Type |
Value
|
|
Asset
|
|
Liabilities
|
Equity
Risk |
|
|
|
Futures
Contracts(a) |
$0
|
|
$(323)
|
Total
Equity Risk |
0
|
|
(323)
|
Total
Value of Derivatives |
$0
|
|
$(323)
|
(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). |
Other Information
Distribution of investments by country or territory of
incorporation, as a percentage of Total Net Assets, is as follows (Unaudited):
United
States of America |
44.9%
|
Japan
|
15.6%
|
South
Korea |
11.7%
|
Cayman
Islands |
9.7%
|
China
|
7.4%
|
France
|
5.1%
|
Sweden
|
1.9%
|
United
Kingdom |
1.8%
|
Australia
|
1.8%
|
|
99.9%
|
See accompanying notes which are an integral part of the financial
statements.
[THIS PAGE INTENTIONALLY LEFT
BLANK]
Statements of Assets and Liabilities
June 30, 2022
|
Fidelity
Clean Energy ETF |
|
Fidelity
Cloud Computing ETF |
|
Fidelity
Crypto Industry And Digital Payments ETF |
|
Fidelity
Digital Health ETF |
Assets
|
|
|
|
|
|
|
|
Investments
in securities, at value – See accompanying schedule: |
$
28,217,268 |
|
$
18,280,383 |
|
$
12,988,617 |
|
$
9,276,444 |
Segregated
cash with brokers for derivative instruments |
—
|
|
—
|
|
—
|
|
—
|
Cash
|
—
|
|
3,422
|
|
8,060
|
|
23,946
|
Foreign
currency held at value (cost $49,283, $4,225, $11,933 and $3,809, respectively) |
49,055
|
|
4,225
|
|
11,774
|
|
3,809
|
Dividends
receivable |
35,901
|
|
11,045
|
|
4
|
|
4,058
|
Total
assets |
28,302,224
|
|
18,299,075
|
|
13,008,455
|
|
9,308,257
|
Liabilities
|
|
|
|
|
|
|
|
Payable
to custodian bank |
5,130
|
|
—
|
|
—
|
|
—
|
Payable
for investments purchased |
—
|
|
—
|
|
—
|
|
16,550
|
Accrued
management fees |
9,383
|
|
6,146
|
|
3,891
|
|
3,019
|
Payable
for daily variation margin on futures contracts |
—
|
|
—
|
|
—
|
|
—
|
Total
liabilities |
14,513
|
|
6,146
|
|
3,891
|
|
19,569
|
Net
Assets |
$28,287,711
|
|
$
18,292,929 |
|
$13,004,564
|
|
$
9,288,688 |
Net
Assets consist of: |
|
|
|
|
|
|
|
Paid
in capital |
$33,771,416
|
|
$
28,492,431 |
|
$18,798,529
|
|
$12,749,375
|
Total
accumulated earnings (loss) |
(5,483,705)
|
|
(10,199,502)
|
|
(5,793,965)
|
|
(3,460,687)
|
Net
Assets |
$28,287,711
|
|
$
18,292,929 |
|
$13,004,564
|
|
$
9,288,688 |
Shares
outstanding |
1,350,000
|
|
1,150,000
|
|
1,050,000
|
|
500,000
|
Net
Asset Value per share |
$
20.95 |
|
$
15.91 |
|
$
12.39 |
|
$
18.58 |
Investments
at cost |
$32,687,958
|
|
$
27,094,233 |
|
$17,898,535
|
|
$12,400,347
|
See accompanying notes which are an integral part of the
financial statements.
Statements of Assets and Liabilities
June 30, 2022
|
Fidelity
Electric Vehicles and Future Transportation ETF |
|
Fidelity
Metaverse ETF |
Assets
|
|
|
|
Investments
in securities, at value – See accompanying schedule: |
$
38,313,513 |
|
$
10,629,052 |
Segregated
cash with brokers for derivative instruments |
—
|
|
1,500
|
Cash
|
4,574
|
|
11,655
|
Foreign
currency held at value (cost $894 and $17,972, respectively) |
891
|
|
17,917
|
Dividends
receivable |
11,759
|
|
1,698
|
Total
assets |
38,330,737
|
|
10,661,822
|
Liabilities
|
|
|
|
Payable
to custodian bank |
—
|
|
—
|
Payable
for investments purchased |
—
|
|
—
|
Accrued
management fees |
12,934
|
|
3,523
|
Payable
for daily variation margin on futures contracts |
—
|
|
324
|
Total
liabilities |
12,934
|
|
3,847
|
Net
Assets |
$
38,317,803 |
|
$10,657,975
|
Net
Assets consist of: |
|
|
|
Paid
in capital |
$
58,749,473 |
|
$12,126,705
|
Total
accumulated earnings (loss) |
(20,431,670)
|
|
(1,468,730)
|
Net
Assets |
$
38,317,803 |
|
$10,657,975
|
Shares
outstanding |
2,150,000
|
|
500,000
|
Net
Asset Value per share |
$
17.82 |
|
$
21.32 |
Investments
at cost |
$
54,470,352 |
|
$11,916,420
|
See accompanying notes which are an integral part of the financial
statements.
Financial Statements – continued
Statements of Operations
For the year ended June 30, 2022
|
Fidelity
Clean Energy ETFA |
|
Fidelity
Cloud Computing ETFA |
|
Fidelity
Crypto Industry And Digital Payments ETFB |
|
Fidelity
Digital Health ETFA |
Investment
Income |
|
|
|
|
|
|
|
Dividends
|
$
232,965 |
|
$
109,553 |
|
$
1,865 |
|
$
25,014 |
Income
from Fidelity Central Funds |
58
|
|
47
|
|
5
|
|
20
|
Income
before foreign taxes withheld |
233,023
|
|
109,600
|
|
1,870
|
|
25,034
|
Less
foreign taxes withheld |
(26,220)
|
|
—
|
|
—
|
|
—
|
Total
income |
206,803
|
|
109,600
|
|
1,870
|
|
25,034
|
Expenses
|
|
|
|
|
|
|
|
Management
fees |
62,493
|
|
53,568
|
|
7,004
|
|
28,338
|
Independent
trustees' fees and expenses |
40
|
|
36
|
|
3
|
|
18
|
Total
expenses |
62,533
|
|
53,604
|
|
7,007
|
|
28,356
|
Net
investment income (loss) |
144,270
|
|
55,996
|
|
(5,137)
|
|
(3,322)
|
Realized
and Unrealized Gain (Loss) |
|
|
|
|
|
|
|
Net
realized gain (loss) on investment securities |
(1,004,586)
|
|
(1,398,624)
|
|
(883,889)
|
|
(367,518)
|
Net
realized gain (loss) on In-kind redemptions |
—
|
|
(134,569)
|
|
—
|
|
(117,080)
|
Net
realized gain (loss) on futures contracts |
—
|
|
1,460
|
|
—
|
|
—
|
Net
realized gain (loss) on foreign currency transactions |
(7,913)
|
|
69
|
|
(328)
|
|
(822)
|
Total
net realized gain (loss) |
(1,012,499)
|
|
(1,531,664)
|
|
(884,217)
|
|
(485,420)
|
Change
in net unrealized appreciation (depreciation) on investment securities |
(4,470,690)
|
|
(8,813,850)
|
|
(4,909,918)
|
|
(3,123,903)
|
Change
in net unrealized appreciation (depreciation) on futures contracts |
—
|
|
—
|
|
—
|
|
—
|
Change
in net unrealized appreciation (depreciation) on assets and liabilities in foreign currencies |
(416)
|
|
(33)
|
|
(159)
|
|
(38)
|
Total
change in net unrealized appreciation (depreciation) |
(4,471,106)
|
|
(8,813,883)
|
|
(4,910,077)
|
|
(3,123,941)
|
Net
gain (loss) |
(5,483,605)
|
|
(10,345,547)
|
|
(5,794,294)
|
|
(3,609,361)
|
Net
increase (decrease) in net assets resulting from operations |
$(5,339,335)
|
|
$(10,289,551)
|
|
$(5,799,431)
|
|
$(3,612,683)
|
A |
For the
period October 5, 2021 (commencement of operations) through June 30, 2022. |
B |
For
the period April 19, 2022 (commencement of operations) through June 30, 2022. |
See accompanying notes which are an integral part of the
financial statements.
Statements of Operations
For the year ended June 30, 2022
|
Fidelity
Electric Vehicles and Future Transportation ETFA |
|
Fidelity
Metaverse ETFB |
Investment
Income |
|
|
|
Dividends
|
$
187,440 |
|
$
7,246 |
Income
from Fidelity Central Funds |
82
|
|
17
|
Income
before foreign taxes withheld |
187,522
|
|
7,263
|
Less
foreign taxes withheld |
(12,648)
|
|
—
|
Total
income |
174,874
|
|
7,263
|
Expenses
|
|
|
|
Management
fees |
107,019
|
|
7,046
|
Independent
trustees' fees and expenses |
71
|
|
3
|
Total
expenses |
107,090
|
|
7,049
|
Net
investment income (loss) |
67,784
|
|
214
|
Realized
and Unrealized Gain (Loss) |
|
|
|
Net
realized gain (loss) on investment securities |
(4,277,874)
|
|
(180,819)
|
Net
realized gain (loss) on In-kind redemptions |
495,282
|
|
57,726
|
Net
realized gain (loss) on futures contracts |
—
|
|
—
|
Net
realized gain (loss) on foreign currency transactions |
(307)
|
|
(387)
|
Total
net realized gain (loss) |
(3,782,899)
|
|
(123,480)
|
Change
in net unrealized appreciation (depreciation) on investment securities |
(16,156,839)
|
|
(1,287,368)
|
Change
in net unrealized appreciation (depreciation) on futures contracts |
—
|
|
(323)
|
Change
in net unrealized appreciation (depreciation) on assets and liabilities in foreign currencies |
(84)
|
|
(47)
|
Total
change in net unrealized appreciation (depreciation) |
(16,156,923)
|
|
(1,287,738)
|
Net
gain (loss) |
(19,939,822)
|
|
(1,411,218)
|
Net
increase (decrease) in net assets resulting from operations |
$(19,872,038)
|
|
$(1,411,004)
|
A |
For the
period October 5, 2021 (commencement of operations) through June 30, 2022. |
B |
For
the period April 19, 2022 (commencement of operations) through June 30, 2022. |
See accompanying notes which are an integral part of the financial
statements.
Financial Statements – continued
Statements of Changes in Net Assets
|
Fidelity
Clean Energy ETF |
|
Fidelity
Cloud Computing ETF |
|
Fidelity
Crypto Industry And Digital Payments ETF |
|
Fidelity
Digital Health ETF |
|
Year
ended June 30, 2022A |
|
Year
ended June 30, 2022A |
|
Year
ended June 30, 2022B |
|
Year
ended June 30, 2022A |
Increase
(Decrease) in Net Assets |
|
|
|
|
|
|
|
Operations
|
|
|
|
|
|
|
|
Net
investment income (loss) |
$
144,270 |
|
$
55,996 |
|
$
(5,137) |
|
$
(3,322) |
Net
realized gain (loss) |
(1,012,499)
|
|
(1,531,664)
|
|
(884,217)
|
|
(485,420)
|
Change
in net unrealized appreciation (depreciation) |
(4,471,106)
|
|
(8,813,883)
|
|
(4,910,077)
|
|
(3,123,941)
|
Net
increase (decrease) in net assets resulting from operations |
(5,339,335)
|
|
(10,289,551)
|
|
(5,799,431)
|
|
(3,612,683)
|
Distributions
to shareholders |
(145,750)
|
|
(57,350)
|
|
—
|
|
—
|
Share
transactions |
|
|
|
|
|
|
|
Proceeds
from sales of shares |
33,772,796
|
|
29,456,208
|
|
18,803,995
|
|
13,779,066
|
Cost
of shares redeemed |
—
|
|
(816,378)
|
|
—
|
|
(877,695)
|
Net
increase (decrease) in net assets resulting from share transactions |
33,772,796
|
|
28,639,830
|
|
18,803,995
|
|
12,901,371
|
Total
increase (decrease) in net assets |
28,287,711
|
|
18,292,929
|
|
13,004,564
|
|
9,288,688
|
Net
Assets |
|
|
|
|
|
|
|
Beginning
of period |
—
|
|
—
|
|
—
|
|
—
|
End
of period |
$28,287,711
|
|
$
18,292,929 |
|
$13,004,564
|
|
$
9,288,688 |
Other
Information |
|
|
|
|
|
|
|
Shares
|
|
|
|
|
|
|
|
Sold
|
1,350,000
|
|
1,200,000
|
|
1,050,000
|
|
550,000
|
Redeemed
|
—
|
|
(50,000)
|
|
—
|
|
(50,000)
|
Net
increase (decrease) |
1,350,000
|
|
1,150,000
|
|
1,050,000
|
|
500,000
|
A |
For the
period October 5, 2021 (commencement of operations) through June 30, 2022. |
B |
For
the period April 19, 2022 (commencement of operations) through June 30, 2022. |
See accompanying notes which are an integral part of the
financial statements.
Statements of Changes in Net Assets
|
Fidelity
Electric Vehicles and Future Transportation ETF |
|
Fidelity
Metaverse ETF |
|
Year
ended June 30, 2022A |
|
Year
ended June 30, 2022B |
Increase
(Decrease) in Net Assets |
|
|
|
Operations
|
|
|
|
Net
investment income (loss) |
$
67,784 |
|
$
214 |
Net
realized gain (loss) |
(3,782,899)
|
|
(123,480)
|
Change
in net unrealized appreciation (depreciation) |
(16,156,923)
|
|
(1,287,738)
|
Net
increase (decrease) in net assets resulting from operations |
(19,872,038)
|
|
(1,411,004)
|
Distributions
to shareholders |
(64,350)
|
|
—
|
Share
transactions |
|
|
|
Proceeds
from sales of shares |
62,232,758
|
|
13,140,454
|
Cost
of shares redeemed |
(3,978,567)
|
|
(1,071,475)
|
Net
increase (decrease) in net assets resulting from share transactions |
58,254,191
|
|
12,068,979
|
Total
increase (decrease) in net assets |
38,317,803
|
|
10,657,975
|
Net
Assets |
|
|
|
Beginning
of period |
—
|
|
—
|
End
of period |
$
38,317,803 |
|
$10,657,975
|
Other
Information |
|
|
|
Shares
|
|
|
|
Sold
|
2,300,000
|
|
550,000
|
Redeemed
|
(150,000)
|
|
(50,000)
|
Net
increase (decrease) |
2,150,000
|
|
500,000
|
A |
For the
period October 5, 2021 (commencement of operations) through June 30, 2022. |
B |
For
the period April 19, 2022 (commencement of operations) through June 30, 2022. |
See accompanying notes which are an integral part of the financial
statements.
Financial Statements – continued
|
Fidelity
Clean Energy ETF |
|
Year
ended June 30, 2022A |
Selected
Per-Share Data |
|
Net
asset value, beginning of period |
$
25.12 |
Income
from Investment Operations |
|
Net
investment income (loss)B |
0.15
|
Net
realized and unrealized gain (loss) |
(4.20)
|
Total
from investment operations |
(4.05)
|
Distributions
from net investment income |
(0.12)
|
Total
distributions |
(0.12)
|
Net
asset value, end of period |
$
20.95 |
Total
ReturnC,D |
(16.12)%
|
Ratios
to Average Net AssetsE,F |
|
Expenses
before reductions |
.39%
|
Expenses
net of fee waivers, if any |
.39%
|
Expenses
net of all reductions |
.39%
|
Net
investment income (loss) |
.90%
|
Supplemental
Data |
|
Net
assets, end of period (000 omitted) |
$28,288
|
Portfolio
turnover rateG,H,I |
30%
|
A |
For the
period October 5, 2021 (commencement of operations) through June 30, 2022. |
B |
Calculated
based on average shares outstanding during the period. |
C |
Based
on net asset value. |
D |
Total
returns for periods of less than one year are not annualized. |
E |
Annualized.
|
F |
Expense
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. |
G |
Amount
does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs). |
H |
Amount
not annualized. |
I |
Portfolio
turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the
financial statements.
|
Fidelity
Cloud Computing ETF |
|
Year
ended June 30, 2022A |
Selected
Per-Share Data |
|
Net
asset value, beginning of period |
$
25.20 |
Income
from Investment Operations |
|
Net
investment income (loss)B |
0.06
|
Net
realized and unrealized gain (loss) |
(9.29)
|
Total
from investment operations |
(9.23)
|
Distributions
from net investment income |
(0.06)
|
Total
distributions |
(0.06)
|
Net
asset value, end of period |
$
15.91 |
Total
ReturnC,D |
(36.69)%
|
Ratios
to Average Net AssetsE,F |
|
Expenses
before reductions |
.39%
|
Expenses
net of fee waivers, if any |
.39%
|
Expenses
net of all reductions |
.39%
|
Net
investment income (loss) |
.41%
|
Supplemental
Data |
|
Net
assets, end of period (000 omitted) |
$18,293
|
Portfolio
turnover rateG,H,I |
31%
|
A |
For the
period October 5, 2021 (commencement of operations) through June 30, 2022. |
B |
Calculated
based on average shares outstanding during the period. |
C |
Based
on net asset value. |
D |
Total
returns for periods of less than one year are not annualized. |
E |
Annualized.
|
F |
Expense
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. |
G |
Amount
does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs). |
H |
Amount
not annualized. |
I |
Portfolio
turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the
financial statements.
Financial Statements – continued
|
Fidelity
Crypto Industry And Digital Payments ETF |
|
Year
ended June 30, 2022A |
Selected
Per-Share Data |
|
Net
asset value, beginning of period |
$
25.76 |
Income
from Investment Operations |
|
Net
investment income (loss)B |
(0.01)
|
Net
realized and unrealized gain (loss) |
(13.36)
|
Total
from investment operations |
(13.37)
|
Net
asset value, end of period |
$
12.39 |
Total
ReturnC,D |
(51.92)%
|
Ratios
to Average Net AssetsE,F |
|
Expenses
before reductions |
.39%
|
Expenses
net of fee waivers, if any |
.39%
|
Expenses
net of all reductions |
.39%
|
Net
investment income (loss) |
(.29)%
|
Supplemental
Data |
|
Net
assets, end of period (000 omitted) |
$13,005
|
Portfolio
turnover rateG,H,I |
28%
|
A |
For the
period April 19, 2022 (commencement of operations) through June 30, 2022. |
B |
Calculated
based on average shares outstanding during the period. |
C |
Based
on net asset value. |
D |
Total
returns for periods of less than one year are not annualized. |
E |
Annualized.
|
F |
Expense
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. |
G |
Amount
does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs). |
H |
Amount
not annualized. |
I |
Portfolio
turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the
financial statements.
|
Fidelity
Digital Health ETF |
|
Year
ended June 30, 2022A |
Selected
Per-Share Data |
|
Net
asset value, beginning of period |
$
25.10 |
Income
from Investment Operations |
|
Net
investment income (loss)B |
(0.01)
|
Net
realized and unrealized gain (loss) |
(6.51)
|
Total
from investment operations |
(6.52)
|
Net
asset value, end of period |
$
18.58 |
Total
ReturnC,D |
(25.99)%
|
Ratios
to Average Net AssetsE,F |
|
Expenses
before reductions |
.39%
|
Expenses
net of fee waivers, if any |
.39%
|
Expenses
net of all reductions |
.39%
|
Net
investment income (loss) |
(.05)%
|
Supplemental
Data |
|
Net
assets, end of period (000 omitted) |
$
9,289 |
Portfolio
turnover rateG,H,I |
48%
|
A |
For the
period October 5, 2021 (commencement of operations) through June 30, 2022. |
B |
Calculated
based on average shares outstanding during the period. |
C |
Based
on net asset value. |
D |
Total
returns for periods of less than one year are not annualized. |
E |
Annualized.
|
F |
Expense
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. |
G |
Amount
does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs). |
H |
Amount
not annualized. |
I |
Portfolio
turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the
financial statements.
Financial Statements – continued
|
Fidelity
Electric Vehicles and Future Transportation ETF |
|
Year
ended June 30, 2022A |
Selected
Per-Share Data |
|
Net
asset value, beginning of period |
$
25.20 |
Income
from Investment Operations |
|
Net
investment income (loss)B |
0.04
|
Net
realized and unrealized gain (loss) |
(7.39)
|
Total
from investment operations |
(7.35)
|
Distributions
from net investment income |
(0.03)
|
Total
distributions |
(0.03)
|
Net
asset value, end of period |
$
17.82 |
Total
ReturnC,D |
(29.15)%
|
Ratios
to Average Net AssetsE,F |
|
Expenses
before reductions |
.39%
|
Expenses
net of fee waivers, if any |
.39%
|
Expenses
net of all reductions |
.39%
|
Net
investment income (loss) |
.25%
|
Supplemental
Data |
|
Net
assets, end of period (000 omitted) |
$38,318
|
Portfolio
turnover rateG,H,I |
31%
|
A |
For the
period October 5, 2021 (commencement of operations) through June 30, 2022. |
B |
Calculated
based on average shares outstanding during the period. |
C |
Based
on net asset value. |
D |
Total
returns for periods of less than one year are not annualized. |
E |
Annualized.
|
F |
Expense
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. |
G |
Amount
does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs). |
H |
Amount
not annualized. |
I |
Portfolio
turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the
financial statements.
|
Fidelity
Metaverse ETF |
|
Year
ended June 30, 2022A |
Selected
Per-Share Data |
|
Net
asset value, beginning of period |
$
25.28 |
Income
from Investment Operations |
|
Net
investment income (loss)B |
—
C |
Net
realized and unrealized gain (loss) |
(3.96)
|
Total
from investment operations |
(3.96)
|
Net
asset value, end of period |
$
21.32 |
Total
ReturnD,E |
(15.67)%
|
Ratios
to Average Net AssetsF,G |
|
Expenses
before reductions |
.39%
|
Expenses
net of fee waivers, if any |
.39%
|
Expenses
net of all reductions |
.39%
|
Net
investment income (loss) |
.01%
|
Supplemental
Data |
|
Net
assets, end of period (000 omitted) |
$10,658
|
Portfolio
turnover rateH,I,J |
8%
|
A |
For the
period April 19, 2022 (commencement of operations) through June 30, 2022. |
B |
Calculated
based on average shares outstanding during the period. |
C |
Amount
represents less than $0.005 per share. |
D |
Based
on net asset value. |
E |
Total
returns for periods of less than one year are not annualized. |
F |
Annualized.
|
G |
Expense
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. |
H |
Amount
does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs). |
I |
Amount
not annualized. |
J |
Portfolio
turnover rate excludes securities received or delivered in-kind. |
See accompanying notes which are an integral part of the financial
statements.
Notes to Financial Statements
For the year ended June 30, 2022
1. Organization.
Fidelity Clean Energy ETF, Fidelity Cloud Computing
ETF, Fidelity Crypto Industry and Digital Payments ETF, Fidelity Digital Health ETF, Fidelity Electric Vehicles and Future Transportation ETF and Fidelity Metaverse ETF (the Funds) are non-diversified 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.
For Fidelity Clean Energy ETF, clean energy
companies are subject to various risks, including fluctuations in commodity prices and/or interest rates, obsolescence of existing technology, short product cycles, changes in governmental and environmental regulations and enforcement policies,
changes in U.S. and foreign government policies, including tax incentives and government subsidies, reduced availability of clean energy sources or other commodities, and extreme weather or other natural disasters.
For Fidelity Cloud Computing ETF, cloud computing
companies are subject to various risks, including those associated with limited operating history, product lines, markets, financial resources or personnel, changes in business cycles, intense competition, potentially rapid product obsolescence,
disruptions in service, changes in regulation, and cybersecurity attacks and other types of theft.
For Fidelity Crypto Industry and Digital Payments
ETF, cryptocurrency and blockchain companies are subject to various risks, including inability to develop digital asset applications or to capitalize on those applications, theft, loss, or destruction of cryptographic keys, the possibility that
digital asset technologies may never be fully implemented, cybersecurity risk, conflicting intellectual property claims, and inconsistent and changing regulations. Digital payments processing companies are subject to various risks, including those
associated with intense competition, changes in regulation, economic conditions, deterioration in credit markets, impairment of intellectual property rights, disruptions in service, and cybersecurity attacks and other types of theft.
For Fidelity Digital Health ETF, digital health
companies are subject to various risks, including competition, potentially rapid product obsolescence, increasing regulatory scrutiny, changes in government regulatory requirements, regulatory approval for new drugs and medical products, changes in
business cycles, vulnerability to cybersecurity breaches, and unexpected events such as pandemics.
For Fidelity Electric Vehicles and Future
Transportation ETF, electric vehicles and future transportation companies are subject to various risks, including those associated with limited product lines, markets, financial resources or personnel, intense competition, production delays, changes
in governmental regulation, and litigation based on product liability claims.
For Fidelity Metaverse ETF, metaverse companies are
subject to various risks, including those associated with limited product lines, markets, financial resources or personnel, intense competition, potentially rapid product obsolescence, impairment of intellectual property rights, disruptions in
service, cybersecurity attacks, and changes in regulation.
Although each Fund’s underlying index uses a
rules-based proprietary index methodology that seeks to identify such companies, there is no guarantee that this methodology will be successful.
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
Ratio(a) |
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 delegated the day to day responsibility for the valuation of
each Fund’s investments to the Fair Value Committee (the Committee) established by each Fund’s investment adviser. In accordance with valuation policies and procedures approved by the Board, each Fund attempts to obtain prices from one
or more third party pricing vendors 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 procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may
be utilized to a significant extent. The Committee oversees each Fund’s valuation policies and procedures and reports to the Board on the Committee’s activities and fair value determinations. The Board monitors the appropriateness of the
procedures used in valuing each Fund’s investments and ratifies the fair value determinations of the Committee.
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 vendor 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, Exchange-Traded Funds (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 June 30, 2022 is included at the end of each 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, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. 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 Nasdaq Stock Market for Fidelity Crypto Industry and Digital Payments ETF and Fidelity Metaverse ETF, and of the Cboe BZX Exchange, Inc.
(CboeBZX) for all other funds; 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. 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
Notes to Financial Statements – continued
3. Significant Accounting
Policies – continued
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 Statements of Operations in dividends or foreign taxes withheld, as applicable. Any receivables for withholding tax reclaims are included in the Statements of Assets and Liabilities in dividends receivable.
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 June 30, 2022, 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.
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, passive foreign investment companies (PFIC), capital loss carryforwards, net operating losses, redemptions in kind, and losses deferred due to wash sales and excise tax regulations.
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
Clean Energy ETF |
$
32,756,540 |
$
642,066 |
$
(5,181,338) |
$
(4,539,272) |
Fidelity
Cloud Computing ETF |
27,472,035
|
83,797
|
(9,275,449)
|
(9,191,652)
|
Fidelity
Crypto Industry and Digital Payments ETF |
17,925,296
|
28,710
|
(4,965,389)
|
(4,936,679)
|
Fidelity
Digital Health ETF |
12,616,168
|
240,369
|
(3,580,093)
|
(3,339,724)
|
Fidelity
Electric Vehicles and Future Transportation ETF |
54,844,213
|
432,167
|
(16,962,867)
|
(16,530,700)
|
Fidelity
Metaverse ETF |
11,930,677
|
86,048
|
(1,387,673)
|
(1,301,625)
|
The tax-based components
of distributable earnings as of period end were as follows for each Fund:
|
Undistributed
ordinary income |
Undistributed
capital gains |
Capital
loss carryforward |
Net
unrealized appreciation (depreciation) |
Fidelity
Clean Energy ETF |
$
— |
$
— |
$
(936,004) |
$
(4,539,688) |
Fidelity
Cloud Computing ETF |
—
|
—
|
(1,007,817)
|
(9,191,685)
|
Fidelity
Crypto Industry and Digital Payments ETF |
—
|
—
|
(857,128)
|
(4,936,837)
|
Fidelity
Digital Health ETF |
—
|
—
|
(118,201)
|
(3,339,762)
|
Fidelity
Electric Vehicles and Future Transportation ETF |
3,598
|
—
|
(3,904,483)
|
(16,530,782)
|
Fidelity
Metaverse ETF |
9,043
|
—
|
(176,101)
|
(1,301,672)
|
3. Significant Accounting
Policies – continued
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
Clean Energy ETF |
$
(936,004) |
$
— |
$
(936,004) |
Fidelity
Cloud Computing ETF |
(1,007,817)
|
—
|
(1,007,817)
|
Fidelity
Crypto Industry and Digital Payments ETF |
(857,128)
|
—
|
(857,128)
|
Fidelity
Digital Health ETF |
(118,201)
|
—
|
(118,201)
|
Fidelity
Electric Vehicles and Future Transportation ETF |
(3,904,483)
|
—
|
(3,904,483)
|
Fidelity
Metaverse ETF |
(175,908)
|
(193)
|
(176,101)
|
Certain of the Funds
intend to elect to defer to the next fiscal year ordinary losses recognized during the period January 1, 2022 to June 30, 2022. Loss deferrals were as follows:
|
Ordinary
Losses |
Fidelity
Clean Energy ETF |
$
(8,013) |
Fidelity
Digital Health ETF |
(2,724)
|
The tax character of
distributions paid was as follows:
June
30, 2022 |
|
|
|
|
|
Ordinary
Income |
Long-Term
Capital Gain |
Tax
Return Of Capital |
Total
|
Fidelity
Clean Energy ETF |
$
145,750 |
$
— |
$
— |
$
145,750 |
Fidelity
Cloud Computing ETF |
57,350
|
—
|
—
|
57,350
|
Fidelity
Crypto Industry and Digital Payments ETF |
—
|
—
|
—
|
—
|
Fidelity
Digital Health ETF |
—
|
—
|
—
|
—
|
Fidelity
Electric Vehicles and Future Transportation ETF |
64,350
|
—
|
—
|
64,350
|
Fidelity
Metaverse ETF |
—
|
—
|
—
|
—
|
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. Investment objectives allow a fund to enter into various types of derivative contracts, 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. Exchange-traded contracts are not covered by the ISDA Master Agreement; however counterparty credit risk related to these contracts may be mitigated by the protection provided by the
exchange on which they trade.
Notes to Financial Statements – continued
4. Derivative Instruments – continued
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 Statements 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 Statements 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 Statements 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
Clean Energy ETF |
11,564,381
|
6,963,112
|
Fidelity
Cloud Computing ETF |
6,653,048
|
6,257,725
|
Fidelity
Crypto Industry and Digital Payments ETF |
5,970,841
|
2,770,474
|
Fidelity
Digital Health ETF |
5,384,527
|
4,895,472
|
Fidelity
Electric Vehicles and Future Transportation ETF |
19,343,163
|
12,074,416
|
Fidelity
Metaverse ETF |
4,676,940
|
786,060
|
Securities received and
delivered in-kind through subscriptions and redemptions are noted in the table below.
|
In-Kind
Subscriptions ($) |
In-Kind
Redemptions ($) |
Fidelity
Clean Energy ETF |
29,099,140
|
—
|
Fidelity
Cloud Computing ETF |
29,067,407
|
800,147
|
Fidelity
Crypto Industry and Digital Payments ETF |
15,582,073
|
—
|
Fidelity
Digital Health ETF |
13,212,928
|
816,644
|
Fidelity
Electric Vehicles and Future Transportation ETF |
55,204,485
|
3,903,794
|
Fidelity
Metaverse ETF |
9,230,014
|
1,081,382
|
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 miscellaneous
expenses such as proxy and shareholder meeting expenses.
|
Fee
Rate |
Fidelity
Clean Energy ETF |
.39%
|
Fidelity
Cloud Computing ETF |
.39%
|
Fidelity
Crypto Industry and Digital Payments ETF |
.39%
|
Fidelity
Digital Health ETF |
.39%
|
Fidelity
Electric Vehicles and Future Transportation ETF |
.39%
|
Fidelity
Metaverse ETF |
.39%
|
Sub-Adviser. Geode Capital Management, LLC (Geode) serves as sub-adviser for the Fund. Geode provides discretionary investment advisory services to the Fund and is paid by the investment adviser for
providing these services.
6. Fees and
Other Transactions with Affiliates – continued
Interfund Trades.
Funds may purchase from or sell securities to other Fidelity Funds 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. 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.
To the extent the Funds permit the contribution of
securities in exchange for the purchase of shares (contribution in-kind), shares may be issued in advance of receipt by the Funds of all or a portion of the applicable deposit securities. In these circumstances, the Authorized Participant provides
collateral to the custodian, on behalf of the Funds, in an amount up to 115% of the daily mark-to-market value of the deposit securities not yet received.
8. 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.
9. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China
during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that
affect the Funds' performance.
Report of Independent Registered
Public Accounting Firm
To the Board of Trustees of Fidelity Covington Trust
and Shareholders of Fidelity Clean Energy ETF, Fidelity Cloud Computing ETF, Fidelity Crypto Industry and Digital Payments ETF, Fidelity Digital Health ETF, Fidelity Electric Vehicles and Future Transportation ETF, and Fidelity Metaverse ETF:
Opinion on the Financial Statements and Financial
Highlights
We have audited the accompanying
statements of assets and liabilities of Fidelity Clean Energy ETF, Fidelity Cloud Computing ETF, Fidelity Crypto Industry and Digital Payments ETF, Fidelity Digital Health ETF, Fidelity Electric Vehicles and Future Transportation ETF, and Fidelity
Metaverse ETF (the “Funds”), each a fund of Fidelity Covington Trust, including the schedules of investments, as of June 30, 2022, the related statements of operations, the statements of changes in net assets and the financial highlights
for the period from October 5, 2021 (commencement of operations) through June 30, 2022, except for the related statements of operations, the statements of changes in net assets, and the financial highlights for the Fidelity Crypto Industry and
Digital Payments ETF and Fidelity Metaverse ETF; which are for the period from April 19, 2022 (commencement of operations) through June 30, 2022; 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 June 30, 2022, and the results of their operations, the changes in their net assets and the financial highlights for the period from October 5, 2021 (commencement of
operations) through June 30, 2022, except for the Fidelity Crypto Industry and Digital Payments ETF and Fidelity Metaverse ETF; which are for the period from April 19, 2022 (commencement of operations) through June 30, 2022, 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 their 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 June 30, 2022, 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
August 12, 2022
We have served as the auditor of one or more of the
Fidelity investment companies since 1999.
Trustees and Officers
(Unaudited)
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. Each of the Trustees oversees 316 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 Qualififications 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
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.
Trustees and Officers (Unaudited) – continued
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
Chairman 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+
Thomas P. Bostick (1956)
Year of Election or Appointment: 2021
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
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
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) and as a member of the Board of HireVue, Inc. (video interview and assessment, 2020-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 and a member of the Board of The Leadership Academy (previously NYC Leadership Academy) (2012-present).
Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018).
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 Advisory Board of Ariel Alternatives, LLC (private equity, 2021-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
Trustees and Officers (Unaudited) – continued
Name, Year of Birth;
Principal Occupations and Other Relevant Experience+
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 currently serves as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-present). He is also a member of the
Rutgers School of Engineering Industry Advisory Board (2011-present) and a member of the UCLA Engineering Dean’s Executive Board (2016-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) and a member of the Advisory Board of Salesforce.com, Inc. (cloud-based software, 2020-present). Previously, Mr. Munoz served as a Member of the Advisory Board of certain Fidelity® funds (2021).
Garnett A. Smith (1947)
Year of Election or Appointment: 2013
Trustee
Mr. Smith also serves as Trustee of other
Fidelity® funds. Prior to his retirement, Mr. Smith served as Chairman and Chief Executive Officer (1990-1997) and President (1986-1990) of Inbrand Corp. (manufacturer of
personal absorbent products). Prior to his employment with Inbrand Corp., he was employed by a retail fabric chain and North Carolina National Bank (now Bank of America). Mr. Smith previously served as a member of the Advisory Board of certain
Fidelity® funds (2012-2013).
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
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
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 Chair of the Audit Committee 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)
Trustee
Year of Election or Appointment: 2013
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 Offifficers:
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.
Officers appear below in alphabetical order.
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).
Craig S. Brown (1977)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Brown also serves as an officer of other funds. Mr.
Brown serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2013-present).
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 serves as Head of Investment Operations for Fidelity Fund and Investment Operations (2018-present) and is an employee of Fidelity Investments (1998-present). Previously Mr. Burke served as head of Asset Management Investment
Operations (2012-2018).
William C. Coffey (1969)
Trustees and Officers (Unaudited) – continued
Name, Year of Birth; Principal
Occupation
Year of Election or
Appointment: 2019
Assistant Secretary
Mr. Coffey also serves as Assistant Secretary of
other funds. He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2010-present), and is an employee of Fidelity Investments. Previously, Mr. Coffey served as Secretary and CLO of certain funds
(2018-2019); CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company and FMR Co., Inc. (investment adviser firms, 2018-2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc.
(investment adviser firms, 2018-2019); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2018-2019); 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 serves as Co-Head of Equity (2018-present), a Director of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present), and is an employee of Fidelity Investments. Previously, Mr. Cohen served as
Executive Vice President of Fidelity SelectCo, LLC (2019), Head of Global Equity Research (2016-2018), Chief Investment Officer - Equity and a Director of Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2013-2015) and as a
Director of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2017).
Jonathan Davis (1968)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Davis also serves as an officer of other
funds. Mr. Davis serves as Assistant Treasurer of FIMM, LLC (2021-present), FMR Capital, Inc. (2017-present), FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), and FD Funds Management LLC (2021-present); and is an employee of
Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
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 serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2017-present). Previously, Ms. Del Prato served as President and Treasurer of The North Carolina Capital Management Trust:
Cash Portfolio and Term Portfolio (2018-2020). Prior to joining Fidelity Investments, Ms. Del Prato served as a Managing Director and Treasurer of the JPMorgan Mutual Funds (2014-2017). Prior to JPMorgan, Ms. Del Prato served as a partner at Cohen
Fund Audit Services (accounting firm, 2012-2013) and KPMG LLP (accounting firm, 2004-2012).
Colm A. Hogan (1973)
Year of Election or Appointment: 2020
Assistant Treasurer
Mr. Hogan also serves as an officer of other
funds. Mr. Hogan serves as Assistant Treasurer of FIMM, LLC (2021-present) and FMR Capital, Inc. (2017-present) and is an employee of Fidelity Investments (2005-present). 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 serves as Co-Head of Equity (2018-present) and is an employee of Fidelity Investments (2013-present). 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).
Cynthia Lo Bessette (1969)
Year of Election or Appointment: 2019
Name, Year of Birth; Principal Occupation
Secretary and Chief Legal Officer (CLO)
Ms. Lo Bessette also serves as an officer of
other funds. Ms. Lo Bessette serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company LLC (investment adviser firm, 2019-present); CLO of Fidelity Management & Research (Hong Kong) Limited, FMR Investment
Management (UK) Limited, and Fidelity Management & Research (Japan) Limited (investment adviser firms, 2019-present); Secretary of FD Funds GP LLC (2021-present), FD Funds Holding LLC (2021-present), and FD Funds Management LLC (2021-present);
and Assistant Secretary of FIMM, LLC (2019-present). She is a Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company, 2019-present), and is an employee of Fidelity Investments. Previously, Ms. Lo Bessette
served as CLO, Secretary, and Senior Vice President of FMR Co., Inc. (investment adviser firm, 2019); Secretary of Fidelity SelectCo, LLC and Fidelity Investments Money Management, Inc. (investment adviser firms, 2019). Prior to joining Fidelity
Investments, Ms. Lo Bessette was Executive Vice President, General Counsel (2016-2019) and Senior Vice President, Deputy General Counsel (2015-2016) of OppenheimerFunds (investment management company) and Deputy Chief Legal Officer (2013-2015) of
Jennison Associates LLC (investment adviser firm).
Chris Maher (1972)
Year of Election or Appointment: 2020
Deputy Treasurer
Mr. Maher also serves as an officer of other
funds. Mr. Maher serves as Assistant Treasurer of FIMM, LLC (2021-present) and FMR Capital, Inc. (2017-present), and is an employee of Fidelity Investments (2008-present). Previously, Mr. Maher served as Assistant Treasurer of certain funds
(2013-2020); Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
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 for Fidelity Investments and is an employee of Fidelity Investments (2006-present). Previously, Mr. Pogorelec served as 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 an AML Officer of
other funds and other related entities. He is Director, Anti-Money Laundering (2007-present) of FMR LLC (diversified financial services company) and is an employee of Fidelity Investments (1996-present).
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 serves as Assistant Treasurer of FIMM, LLC (2021-present) and FMR Capital, Inc. (2017-present), is an employee of Fidelity Investments (2009-present), and has served in other fund officer roles. Prior to joining Fidelity
Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (accounting firm, 1996-2009). Previously, Ms. Smith served as Assistant Treasurer (2013-2019) and Deputy Treasurer (2013-2016) of certain Fidelity® funds.
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as an officer of other
funds. Mr. Wegmann serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2011-present). Previously, Mr. Wegmann served as Assistant Treasurer of certain Fidelity® funds (2019-2021).
Shareholder Expense Example
(Unaudited)
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 actual expense Example is based on an investment
of $1,000 invested at the beginning of the period and held for the entire period (January 1, 2022 to June 30, 2022) for Fidelity Clean Energy ETF, Fidelity Cloud Computing ETF, Fidelity Digital Health ETF and Fidelity Electric Vehicles And Future
Transportation ETF and for the period (April 19, 2022 to June 30, 2022) for Fidelity Crypto Industry and Digital Payments ETF and Fidelity Metaverse ETF. The hypothetical expense Example is based on an investment of $1,000 invested for the one-half
year period (January 1, 2022 to June 30, 2022).
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.
|
Annualized
Expense RatioA |
Beginning
Account Value |
Ending
Account Value June 30, 2022 |
Expenses
Paid During Period |
Fidelity
Clean Energy ETF |
0.39%
|
|
|
|
Actual
|
|
$
1,000.00 |
$
838.80 |
$
1.78B |
Hypothetical
C |
|
$
1,000.00 |
$
1,022.86 |
$
1.96D |
Fidelity
Cloud Computing ETF |
0.39%
|
|
|
|
Actual
|
|
$
1,000.00 |
$
633.10 |
$
1.58B |
Hypothetical
C |
|
$
1,000.00 |
$
1,022.86 |
$
1.96D |
Fidelity
Crypto Industry And Digital Payments ETF |
0.39%
|
|
|
|
Actual
|
|
$
1,000.00 |
$
480.80 |
$
0.57B |
Hypothetical
C |
|
$
1,000.00 |
$
1,022.86 |
$
1.96D |
Fidelity
Digital Health ETF |
0.39%
|
|
|
|
Actual
|
|
$
1,000.00 |
$
740.10 |
$
1.68B |
Hypothetical
C |
|
$
1,000.00 |
$
1,022.86 |
$
1.96D |
Fidelity
Electric Vehicles and Future Transportation ETF |
0.39%
|
|
|
|
Actual
|
|
$
1,000.00 |
$
708.50 |
$
1.65B |
Hypothetical
C |
|
$
1,000.00 |
$
1,022.86 |
$
1.96D |
Fidelity
Metaverse ETF |
0.39%
|
|
|
|
Actual
|
|
$
1,000.00 |
$
843.30 |
$
0.71B |
Hypothetical
C |
|
$
1,000.00 |
$
1,022.86 |
$
1.96D |
A |
Annualized
expense ratio reflects expenses net of applicable fee waivers. |
B |
Actual
expenses are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period) for Fidelity Clean Energy ETF, Fidelity Cloud Computing ETF,
Fidelity Digital Health ETF and Fidelity Electric Vehicles And Future Transportation ETF and multiplied by 72/365 (to reflect the period April 19, 2022 to June 30, 2022) for Fidelity Crypto Industry and Digital Payments ETF and Fidelity Metaverse
ETF. |
C |
5%
return per year before expenses. |
D |
Hypothetical
expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period). |
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 qualifies for the dividend-received deduction for corporate shareholders:
|
December
2021 |
March
2022 |
June
2022 |
Fidelity
Clean Energy ETF |
53%
|
4%
|
4%
|
Fidelity
Cloud Computing ETF |
99%
|
46%
|
46%
|
Fidelity
Crypto Industry and Digital Payments ETF |
—
|
—
|
—
|
Fidelity
Digital Health ETF |
—
|
—
|
—
|
Fidelity
Electric Vehicles and Future Transportation ETF |
100%
|
100%
|
100%
|
Fidelity
Metaverse ETF |
—
|
—
|
—
|
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.
|
December
2021 |
March
2022 |
June
2022 |
Fidelity
Clean Energy ETF |
100%
|
100%
|
100%
|
Fidelity
Cloud Computing ETF |
100%
|
100%
|
100%
|
Fidelity
Crypto Industry and Digital Payments ETF |
—
|
—
|
—
|
Fidelity
Digital Health ETF |
—
|
—
|
—
|
Fidelity
Electric Vehicles and Future Transportation ETF |
100%
|
100%
|
100%
|
Fidelity
Metaverse ETF |
—
|
—
|
—
|
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:
|
Ex-Date
|
Income
|
Taxes
|
Fidelity
Clean Energy ETF |
12/17/2021
|
—
|
—
|
|
3/18/2022
|
$0.0190
|
$0.0030
|
|
6/17/2022
|
$0.1059
|
$0.0169
|
The funds will notify
shareholders in January 2023 of amounts for use in preparing 2022 income tax returns.
Board Approval of Investment
Advisory Contracts and Management Fees
Fidelity Crypto Industry and Digital Payments ETF
Fidelity Metaverse ETF
At its January 2022 meeting, the Board of Trustees,
including the Independent Trustees (together, the Board), voted to approve the management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreement with Geode Capital Management, LLC (Geode) for the funds
(together, the Advisory Contracts). FMR and the sub-adviser are collectively referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees’ counsel, considered a broad range of
information.
Nature, Extent, and Quality of
Services Provided. The Board considered staffing as it relates to the funds, including the backgrounds of investment personnel of Fidelity and Geode, and also considered the funds’ investment objectives,
strategies, and related investment philosophies. 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.
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 noted that Fidelity has continued to increase the resources
devoted to non-U.S. offices, including expansion of Fidelity’s global investment organization. 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. The Board also considered Fidelity’s investments in business continuity planning, and its success in continuously providing services to the
Fidelity funds notwithstanding the severe disruptions caused by the COVID-19 pandemic.
Shareholder
and Administrative Services. The Board considered the nature, extent, quality, and cost of advisory, administrative, and shareholder services to be performed by the Investment Advisers, and their affiliates under the Advisory Contracts and
under separate agreements covering pricing and bookkeeping and securities lending services for each fund. The Board also considered the nature and extent of the supervision of third party service providers, principally transfer agents, custodians,
subcustodians, and pricing vendors.
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, and the expanded availability of Fidelity Investor Centers.
Investment
Performance. Each fund is a new fund and therefore had no historical performance for the Board to review at the time it approved each fund’s Advisory Contracts. The Board considered Geode’s experience in managing certain existing
Fidelity factor-based ETFs and equity index mutual funds.
Based on its review, the Board concluded that the
nature, extent, and quality of services to be provided to each fund under the Advisory Contracts should benefit the shareholders of each fund.
Competitiveness of Management Fee and Total Expense
Ratio. In reviewing the Advisory Contracts, the Board considered each fund’s all-inclusive fee rate. The Board also considered other expenses, such as transfer agent fees, pricing and bookkeeping fees, and
custodial, legal, and audit fees, paid by FMR under the all-inclusive arrangement. The Board noted that each fund’s proposed management fee rate is below the median fee rate of funds with similar Lipper investment objective categories and
comparable investment mandates, regardless of whether their management fee structures are comparable. The Board also considered that the projected total expense ratio of each fund is below the median of those funds and classes used by the Board for
management fee comparisons.
Based on
its review, the Board concluded that each fund’s management fee and projected total expense ratio were reasonable in light of the services that the fund and its shareholders will receive and the other factors considered.
Costs of the Services and Profitability. Each fund is a new fund and therefore no revenue, cost, or profitability data was available for the Board to review in respect of each fund at the time it approved the Advisory Contracts. In connection with its future
renewal of each fund’s Advisory Contracts, the Board will consider 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.
Economies of Scale.
The Board will consider economies of scale when there is operating experience to permit assessment thereof. It noted that, notwithstanding the entrepreneurial risk associated with a new fund, the management fee was at a level normally associated, by
comparison with competitors, with very high fund net assets, and Fidelity asserted to the Board that the level of the fee anticipated economies of scale at lower asset levels even before, if ever, economies of scale are achieved. The Board also
noted that each fund and its shareholders would have access to the very considerable number and variety of services available through Fidelity and its affiliates.
Based on its evaluation of all of the conclusions
noted above, and after considering all factors it believed relevant, the Board concluded that the advisory and sub-advisory fee arrangements are fair and reasonable, and that each fund’s Advisory Contracts should be approved.
Liquidity Risk Management
Program
The Securities and Exchange Commission adopted Rule
22e-4 under the Investment Company Act of 1940 (the Liquidity Rule) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption
obligations and mitigating dilution of the interests of fund shareholders.
The Funds have adopted and implemented a liquidity
risk management program pursuant to the Liquidity Rule (the Program) effective December 1, 2018. The Program is reasonably designed to assess and manage each Fund’s liquidity risk and to comply with the requirements of the Liquidity Rule. Each
Fund’s Board of Trustees (the Board) has designated each Fund’s investment adviser as administrator of the Program. The Fidelity advisers have established a Liquidity Risk Management Committee (the LRM Committee) to manage the Program
for each of the Fidelity Funds. The LRM Committee monitors the adequacy and effectiveness of implementation of the Program and on a periodic basis assesses each Fund’s liquidity risk based on a variety of factors including (1) the Fund’s
investment strategy, (2) portfolio liquidity and cash flow projections during normal and reasonably foreseeable stressed conditions, (3) shareholder redemptions, (4) borrowings and other funding sources and (5) in the case of exchange-traded funds,
certain additional factors including the effect of the Fund’s prices and spreads, market participants, and basket compositions on the overall liquidity of the Fund’s portfolio, as applicable.
In accordance with the Program, each of the
Fund’s portfolio investments is classified into one of four liquidity categories described below based on a determination of a reasonable expectation for how long it would take to convert the investment to cash (or sell or dispose of the
investment) without significantly changing its market value.
Highly liquid
investments – cash or convertible to cash within three business days or less
Moderately
liquid investments – convertible to cash in three to seven calendar days
Less liquid
investments – can be sold or disposed of, but not settled, within seven calendar days
Illiquid
investments – cannot be sold or disposed of within seven calendar days
Liquidity classification determinations take into
account a variety of factors including various market, trading and investment-specific considerations, as well as market depth, and generally utilize analysis from a third-party liquidity metrics service.
The Liquidity Rule places a 15% limit on a
fund’s illiquid investments and requires funds that do not primarily hold assets that are highly liquid investments to determine and maintain a minimum percentage of the fund’s net assets to be invested in highly liquid investments
(highly liquid investment minimum or HLIM). The Program includes provisions reasonably designed to comply with the 15% limit on illiquid investments and for determining, periodically reviewing and complying with the HLIM requirement as
applicable.
At a recent meeting of the
Fund’s Board of Trustees, the LRM Committee provided a written report to the Board pertaining to the operation, adequacy, and effectiveness of implementation of the Program for the annual period from December 1, 2018 through November 30, 2019.
The report concluded that the Program has been implemented and is operating effectively and is reasonably designed to assess and manage the Fund’s liquidity risk.
[THIS PAGE INTENTIONALLY LEFT BLANK]
CEE-ANN-0822
1.9903828.100
As of the end of the period, June 30, 2022, Fidelity Covington Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. |
Audit Committee Financial Expert |
The Board of Trustees of the trust has determined that Donald F. Donahue is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Donahue is independent for purposes of Item 3 of Form N-CSR.
Item 4. |
Principal Accountant Fees and Services |
Fees and Services
The following table presents fees
billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, Deloitte Entities) in each of the last two fiscal years for services rendered to Fidelity Clean Energy
ETF, Fidelity Cloud Computing ETF, Fidelity Crypto Industry and Digital Payments ETF, Fidelity Digital Health ETF, Fidelity Electric Vehicles and Future Transportation ETF, and Fidelity Metaverse ETF (the Funds):
Services Billed by Deloitte Entities
June 30, 2022 FeesA,B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Audit Fees |
|
|
Audit- Related Fees |
|
|
Tax Fees |
|
|
All Other Fees |
|
Fidelity Clean Energy ETF |
|
$ |
11,100 |
|
|
$ |
|
|
|
$ |
5,000 |
|
|
$ |
200 |
|
Fidelity Cloud Computing ETF |
|
$ |
11,100 |
|
|
$ |
|
|
|
$ |
5,000 |
|
|
$ |
200 |
|
Fidelity Crypto Industry and Digital Payments ETF |
|
$ |
8,800 |
|
|
$ |
|
|
|
$ |
3,700 |
|
|
$ |
|
|
Fidelity Digital Health ETF |
|
$ |
11,100 |
|
|
$ |
|
|
|
$ |
5,000 |
|
|
$ |
200 |
|
Fidelity Electric Vehicles and Future Transportation ETF |
|
$ |
11,100 |
|
|
$ |
|
|
|
$ |
5,000 |
|
|
$ |
200 |
|
Fidelity Metaverse ETF |
|
$ |
8,800 |
|
|
$ |
|
|
|
$ |
3,700 |
|
|
$ |
|
|
June 30, 2021 FeesA,B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Audit Fees |
|
|
Audit- Related Fees |
|
|
Tax Fees |
|
|
All Other Fees |
|
Fidelity Clean Energy ETF |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Fidelity Cloud Computing ETF |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Fidelity Crypto Industry and Digital Payments ETF |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Fidelity Digital Health ETF |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Fidelity Electric Vehicles and Future Transportation ETF |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
Fidelity Metaverse ETF |
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
|
$ |
|
|
A |
Amounts may reflect rounding. |
B |
Fidelity Clean Energy ETF, Fidelity Cloud Computing ETF, Fidelity Digital Health ETF and Fidelity Electric
Vehicles and Future Transportation ETF commenced operations on October 5, 2021. Fidelity Crypto Industry and Digital Payments ETF and Fidelity Metaverse ETF commenced operations on April 19, 2022. |
The following table(s) present(s) fees billed by Deloitte Entities that were required to be approved by the Audit Committee for services that relate directly
to the operations and financial reporting of the Fund(s) and that are rendered on behalf of Fidelity Management & Research Company LLC (FMR) and entities controlling, controlled by, or under common control with FMR (not
including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund(s) (Fund Service
Providers):
Services Billed by Deloitte Entities
|
|
|
|
|
|
|
|
|
|
|
June 30, 2022A,B |
|
|
June 30, 2021A,B |
|
Audit-Related Fees |
|
$ |
|
|
|
$ |
|
|
Tax Fees |
|
$ |
|
|
|
$ |
|
|
All Other Fees |
|
$ |
|
|
|
$ |
|
|
A |
Amounts may reflect rounding. |
B |
May include amounts billed prior to the Fidelity Clean Energy ETF, Fidelity Cloud Computing ETF, Fidelity
Crypto Industry and Digital Payments ETF, Fidelity Digital Health ETF, Fidelity Electric Vehicles and Future Transportation ETF, and Fidelity Metaverse ETFs commencement of operations. |
Audit-Related Fees represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or
the review of the funds financial statements and that are not reported under Audit Fees.
Tax Fees represent fees billed for tax
compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
All Other Fees represent
fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported
under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* *
*
The aggregate non-audit fees billed by Deloitte Entities for services rendered to the Fund(s), FMR (not
including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years
of the Fund(s) are as follows:
|
|
|
|
|
|
|
|
|
Billed By |
|
June 30, 2022A,B |
|
|
June 30, 2021A,B |
|
Deloitte Entities |
|
$ |
485,800 |
|
|
$ |
521,600 |
|
A |
Amounts may reflect rounding. |
B |
May include amounts billed prior to the Fidelity Clean Energy ETF, Fidelity Cloud Computing ETF, Fidelity
Crypto Industry and Digital Payments ETF, Fidelity Digital Health ETF, Fidelity Electric Vehicles and Future Transportation ETF, and Fidelity Metaverse ETFs commencement of operations. |
The trusts Audit Committee has considered non-audit services that were not
pre-approved that were provided by Deloitte Entities to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities in its(their) audit of the Fund(s), taking into account
representations from Deloitte Entities, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Fund(s) and its(their) related entities and FMRs review of the appropriateness and permissibility
under applicable law of such non-audit services prior to their provision to the Fund(s) Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trusts Audit Committee must pre-approve all audit and non-audit
services provided by a funds independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a
fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has
adopted policies and procedures to, among other purposes, provide a framework for the Committees consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and
procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service
Provider that relates directly to the operations and financial reporting of a Fidelity fund (Covered Service) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal
resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the
Chairs absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the
operations and financial reporting of a Fidelity fund are reported to the Audit Committee periodically.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and
(ii) of Regulation S-X (De Minimis Exception)
There were no
non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds(s) last two fiscal years relating to services provided to
(i) the Fund(s) or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Fund(s).
Item 5. |
Audit Committee of Listed Registrants |
The Audit Committee is a separately-designated standing audit committee in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of
1934. As of June 30, 2022, the members of the Audit Committee were Donald F. Donahue, Thomas P. Bostick, Thomas Kennedy, Garnett A. Smith, and Susan Tomasky.
(a) Not applicable.
(b) Not applicable.
Item 7. |
Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies |
Not applicable.
Item 8. |
Portfolio Managers of Closed-End Management Investment Companies
|
Not applicable.
Item 9. |
Purchase of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers |
Not applicable.
Item 10. |
Submission of Matters to a Vote of Security Holders |
There were no material changes to the procedures by which shareholders may recommend nominees to the trusts Board of Trustees.
Item 11. |
Controls and Procedures |
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trusts disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls
and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trusts internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially
affect, the trusts internal control over financial reporting.
Item 12. |
Disclosure of Securities Lending Activities for Closed-End
Management Investment Companies |
Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Covington Trust
|
|
|
By: |
|
/s/ Stacie M. Smith |
|
|
Stacie M. Smith |
|
|
President and Treasurer |
|
|
Date: |
|
August 19, 2022 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has
been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
|
|
By: |
|
/s/ Stacie M. Smith |
|
|
Stacie M. Smith |
|
|
President and Treasurer |
|
|
Date: |
|
August 19, 2022 |
|
|
By: |
|
/s/ John J. Burke III |
|
|
John J. Burke III |
|
|
Chief Financial Officer |
|
|
Date: |
|
August 19, 2022 |
EXHIBIT EX-99.CODE ETH
FIDELITY FUNDS CODE OF ETHICS FOR
PRESIDENT, TREASURER AND PRINCIPAL ACCOUNTING OFFICER
I. |
Purposes of the Code/Covered Officers |
This document constitutes the Code of Ethics (Code) adopted by the Fidelity Funds (Funds) pursuant to the provisions of Rule
30b2-1(a) under the Investment Company Act of 1940), which Rule implements Sections 406 of the Sarbanes-Oxley Act of 2002 with respect to registered investment companies. The Code applies to the Fidelity
Funds President and Treasurer, and Chief Financial Officer (Covered Officers). Fidelitys Ethics Office, a part of Corporate Compliance Group within Core Compliance, administers the Code.
The purposes of the Code are to deter wrongdoing and to promote, on the part of the Covered Officers:
|
|
|
honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between
personal and professional relationships; |
|
|
|
full, fair, accurate, timely and understandable disclosure in reports and documents that the Fidelity Funds
submit to the Securities and Exchange Commission (SEC), and in other public communications by a Fidelity Fund; |
|
|
|
compliance with applicable laws and governmental rules and regulations; |
|
|
|
the prompt internal reporting to an appropriate person or persons identified in the Code of violations of the
Code; and |
|
|
|
accountability for adherence to the Code. |
Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as
apparent conflicts of interest.
II. |
Covered Officers Should Handle Ethically |
Actual and Apparent Conflicts of Interest
Overview. A conflict of interest occurs when a Covered Officers private interest interferes with the interests of, or his service to,
the Fidelity Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Fidelity Funds.
Certain conflicts of interest arise out of the relationships between Covered Officers and the Fidelity Funds and already are subject to conflict of interest
provisions in the Investment Company Act of 1940 (Investment Company Act) and the Investment Advisers Act of 1940 (Investment Advisers Act). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or
sale of securities or other property) with a Fidelity Fund because of their status as affiliated persons of the Fund. Separate compliance programs and procedures of the Fidelity Funds, Fidelity Management & Research Company
(FMR) and the other Fidelity companies are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of
the parameters of this Code.
Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a
result of, the contractual relationship between the Fidelity Funds and FMR (or another Fidelity company) of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal
course of their duties (whether formally for the Fidelity Funds, FMR or another Fidelity company), be involved in establishing policies and implementing decisions that have different effects on the Fidelity Funds, FMR and other Fidelity companies.
The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fidelity Funds and FMR (or another Fidelity company), and is consistent with the performance by the Covered Officers of their duties
as officers of the Fidelity Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by
the Funds Board of Trustees (Board) that the Covered Officers also may be officers or employees of one or more other Fidelity Funds covered by this Code.
Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the
Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a
Covered Officer should not be placed improperly before the interest of a Fidelity Fund.
* *
*
Each Covered Officer must:
|
|
|
not use his or her personal influence or personal relationships improperly to influence investment decisions or
financial reporting by any Fidelity Fund whereby the Covered Officer would benefit personally to the detriment of any Fidelity Fund; |
|
|
|
not cause a Fidelity Fund to take action, or fail to take action, for the individual personal benefit of the
Covered Officer rather than the benefit of the Fidelity Fund; |
|
|
|
not engage in any outside business activity, including serving as a director or trustee, that prevents the
Covered Officer from devoting appropriate time and attention to the Covered Officers responsibilities with the Fidelity Funds; |
|
|
|
not have a consulting or employment relationship with any of the Fidelity Funds service providers that are
not affiliated with Fidelity; and |
|
|
|
not retaliate against any employee or Covered Officer for reports of actual or potential misconduct, which are
made in good faith. |
With respect to other fact patterns, if a Covered Officer is in doubt, other potential conflict of interest
situations should be described immediately to the Fidelity Ethics Office for resolution. Similarly, any questions a Covered Officer has generally regarding the application or interpretation of the Code should be directed to the Fidelity Ethics
Office immediately.
III. |
Disclosure and Compliance |
|
|
|
Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the
Fidelity Funds. |
|
|
|
Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about any Fidelity
Fund to others, whether within or outside Fidelity, including to the Board and auditors, and to governmental regulators and self-regulatory organizations; |
|
|
|
Each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other
officers and employees of the Fidelity Funds, FMR and the Fidelity service providers, and with the Boards Compliance Committee, with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents
the Fidelity Funds file with, or submit to, the SEC and in other public communications made by the Fidelity Funds; and |
|
|
|
It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions
imposed by applicable laws, rules and regulations. |
IV. |
Reporting and Accountability |
Each Covered Officer must:
|
|
|
upon receipt of the Code, and annually thereafter, submit to the Fidelity Ethics Office an acknowledgement
stating that he or she has received, read, and understands the Code; and |
|
|
|
notify the Fidelity Ethics Office promptly if he or she knows of any violation of the Code. Failure to do so
is itself a violation of this Code. |
The Fidelity Ethics Office shall take all action it considers appropriate to investigate any
actual or potential violations reported to it. Upon completion of the investigation, if necessary, the matter will be reviewed with senior management or other appropriate parties, and a determination will be made as to whether any action should be
taken as detailed below. The Covered Officer will be informed of any action determined to be appropriate. The Fidelity Ethics Office will inform the Personal Trading Committee of all Code violations and actions taken in response. Without implied
limitation, appropriate remedial, disciplinary or preventive action may include a written warning, a letter of censure, suspension, dismissal or, in the event of criminal or other serious violations of law, notification of the SEC or other
appropriate law enforcement authorities. Additionally, other legal remedies may be pursued.
The policies and procedures described in the Code do not
create any obligations to any person or entity other than the Fidelity Funds. The Code is intended solely for the internal use by the Fidelity Funds and does not constitute a promise, contract or an admission by or on behalf of any Fidelity Fund as
to any fact, circumstance, or legal conclusion. The Fidelity Funds, the Fidelity companies and the Fidelity Chief Ethics Officer retain the discretion to decide whether the Code applies to a specific situation, and how it should be interpreted.
Material violations of this Code will be reported promptly by FMR to the Boards Compliance Committee. In addition, at least once each year, FMR will
provide a written report to the Board, which describes any issues arising under the Code since the last report to the Board, including, but not limited to, information about material violations of the Code and action taken in response to the
material violations.
VI. |
Other Policies and Procedures |
This Code shall be the sole code of ethics adopted by the Fidelity Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms
applicable to registered investment companies thereunder. Other Fidelity policies or procedures that cover the behavior or activities of Covered Officers are separate requirements applying to the Covered Officers (and others), and are not part of
this Code.
Any material amendments or changes to this Code must be approved or ratified by a majority vote of the Board, including a majority of the Trustees who are not
interested persons of the Fidelity Funds.
VIII. |
Records and Confidentiality |
Records of any violation of the Code and of the actions taken as a result of such violations will be kept by the Fidelity Ethics Office. All reports and
records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the
Fidelity Ethics Office, the Personal Trading Committee, the Board, appropriate personnel at the relevant Fidelity company or companies and the legal counsel of any or all of the foregoing.
Exhibit EX-99.CERT
I, Stacie M. Smith, certify that:
1. |
I have reviewed this report on Form N-CSR of Fidelity Covington Trust;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. |
Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report; |
4. |
The registrants other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule
30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared; |
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles; |
|
c. |
Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and |
|
d. |
Disclosed in this report any change in the registrants internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. |
The registrants other certifying officer(s) and I have disclosed to the registrants auditors and
the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
|
b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrants internal control over financial reporting. |
Date: August 19, 2022
|
/s/ Stacie M. Smith |
Stacie M. Smith |
President and Treasurer |
I, John J. Burke III, certify that:
1. |
I have reviewed this report on Form N-CSR of Fidelity Covington Trust;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. |
Based on my knowledge, the financial statements, and other financial information included in this report,
fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the
periods presented in this report; |
4. |
The registrants other certifying officer(s) and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule
30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
|
a. |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be
designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is
being prepared; |
|
b. |
Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles; |
|
c. |
Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this
report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and |
|
d. |
Disclosed in this report any change in the registrants internal control over financial reporting that
occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. |
The registrants other certifying officer(s) and I have disclosed to the registrants auditors and
the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
|
a. |
All significant deficiencies and material weaknesses in the design or operation of internal control over
financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
|
b. |
Any fraud, whether or not material, that involves management or other employees who have a significant role in
the registrants internal control over financial reporting. |
Date: August 19, 2022
|
/s/ John J. Burke III |
John J. Burke III |
Chief Financial Officer |
Exhibit EX-99.906CERT
Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code)
In connection with the attached Report of Fidelity Covington Trust (the Trust) on Form N-CSR to be filed
with the Securities and Exchange Commission (the Report), each of the undersigned officers of the Trust does hereby certify that, to the best of such officers knowledge:
|
1. |
The Report fully complies with the requirements of 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
|
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and
results of operations of the Trust as of, and for, the periods presented in the Report. |
Dated: August 19, 2022
|
/s/ Stacie M. Smith |
Stacie M. Smith |
President and Treasurer |
Dated: August 19, 2022
|
/s/ John J. Burke III |
John J. Burke III |
Chief Financial Officer |
A signed original of this written statement required by Section 906, or other document authenticating,
acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Trust and will be retained by the Trust and furnished to the
Securities and Exchange Commission or its staff upon request.