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 811-21990
Fidelity Commonwealth Trust II
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Margaret Carey, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
| Date of fiscal year end: | August 31 |
| | |
| Date of reporting period: | August 31, 2023 |
Item 1.
Reports to Stockholders
Fidelity® Large Cap Growth Enhanced Index Fund
Fidelity® Large Cap Value Enhanced Index Fund
Fidelity® Large Cap Core Enhanced Index Fund
Fidelity® Mid Cap Enhanced Index Fund
Fidelity® International Enhanced Index Fund
Annual Report
August 31, 2023
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month 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 1-800-544-8544 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. © 2023 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, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.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.
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
|
|||
Periods ended August 31, 2023
|
Past 1
year
|
Past 5
years
|
Past 10
years
|
Fidelity® Large Cap Growth Enhanced Index Fund
|
19.85%
|
13.09%
|
14.78%
|
$10,000 Over 10 Years
|
Let's say hypothetically that $10,000 was invested in Fidelity® Large Cap Growth Enhanced Index Fund on August 31, 2013.
The chart shows how the value of your investment would have changed, and also shows how the Russell 1000 Growth Index performed over the same period.
|
|
Fidelity® Large Cap Growth Enhanced Index Fund
Market Recap:
U.S. equities gained 15.94% for the 12 months ending August 31, 2023, according to the S&P 500® index, as continued global economic expansion, falling commodity prices and a slowing in the pace of inflation provided a favorable backdrop for higher-risk assets. Large-cap stocks spearheaded the rally, which was driven by the shares of a narrow set of mega-cap companies in the information technology and communication services sectors, largely due to exuberance related to generative artificial intelligence. Aggressive monetary tightening by the U.S. Federal Reserve continued amid consistent pressure on core inflation, a measure that excludes food and energy. Since March 2022, the Fed has hiked its benchmark interest rate 11 times. The latest bump came in late July, a fourth consecutive raise of a stepped down 25 basis points. The S&P 500® gained 3.21% in July but snapped a five-month rally in August (-1.59%), held back by softness in manufacturing and jobs. Still, U.S. stocks ended August up 18.73% year to date. For the full 12 months, value (+17%) topped growth (+13%) within the index. By sector, information technology (+35%) led by a wide margin, followed by communication services (+26%). In contrast, the defensive utilities sector (-13%) lagged most, as climbing yields offered investors better returns elsewhere. Real estate returned about -7%, hampered by high borrowing costs and low home inventory.
Comments from Senior Portfolio Manager Maximilian Kaufmann of the Fidelity Systematic Equity Strategies portfolio management team:
For the fiscal year ending August 31, 2023, the fund gained 19.85%, versus 21.94% for the benchmark Russell 1000 Growth Index. Relative to the benchmark, security selection was the primary detractor, especially within the health care sector. The biggest detractor from performance versus the benchmark was stock selection in consumer discretionary. Stock picking in industrials also hampered the fund's result. Also detracting from our result was stock selection and an underweight in financials. The largest individual relative detractor was an overweight in Etsy (-46%). A second notable relative detractor was an underweight in Netflix (+94%). An underweight in TJX Companies (+51%) also detracted. We established all three of these investments this past reporting period. In contrast, the biggest contributor to performance versus the benchmark was an underweight in consumer staples. Security selection and an underweight in communication services and picks and an overweight in energy also boosted the fund's relative performance. Lastly, the fund's position in cash was a notable contributor. The top individual relative contributor was an overweight in Broadcom (+90%). Broadcom was among our biggest holdings. The second-largest relative contributor was an underweight in Dollar General (-41%). Dollar General was not held at period end. An overweight in Nvidia (+225%) also contributed. Nvidia was one of our largest holdings. Notable changes in positioning include increased exposure to the communication services sector and a lower allocation to consumer staples.
Note to shareholders:
In June 2023, the Board of Trustees approved the conversion of Fidelity's Enhanced Index Funds into exchange-traded funds, a move deemed in the best interest of shareholders. Each new ETF and its former corresponding fund will have identical investment objectives and fundamental investment policies and have substantially similar investment strategies. Fidelity believes that the conversion will provide multiple benefits for investors of the Funds, including lower net expenses, additional trading flexibility, increased portfolio holdings transparency and the potential for enhanced tax efficiency. The Fund conversions are expected to be conducted in November 2023. For more information, please refer to the Funds' prospectus supplements or visit us online.
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. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a 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® Large Cap Growth Enhanced Index Fund
Top Holdings (% of Fund's net assets)
|
||
Apple, Inc.
|
13.1
|
|
Microsoft Corp.
|
10.5
|
|
NVIDIA Corp.
|
5.4
|
|
Amazon.com, Inc.
|
5.3
|
|
Tesla, Inc.
|
3.8
|
|
Alphabet, Inc. Class C
|
3.7
|
|
Alphabet, Inc. Class A
|
3.7
|
|
Meta Platforms, Inc. Class A
|
3.4
|
|
Eli Lilly & Co.
|
2.5
|
|
Broadcom, Inc.
|
2.2
|
|
53.6
|
||
Market Sectors (% of Fund's net assets)
|
||
Information Technology
|
44.5
|
|
Consumer Discretionary
|
14.4
|
|
Communication Services
|
12.7
|
|
Health Care
|
11.3
|
|
Industrials
|
6.3
|
|
Financials
|
5.4
|
|
Consumer Staples
|
2.4
|
|
Energy
|
1.4
|
|
Materials
|
0.9
|
|
Real Estate
|
0.6
|
|
Asset Allocation (% of Fund's net assets)
|
|
Futures - 0.1%
|
Fidelity® Large Cap Growth Enhanced Index Fund
Showing Percentage of Net Assets
Common Stocks - 99.9%
|
|||
Shares
|
Value ($)
|
||
COMMUNICATION SERVICES - 12.7%
|
|||
Entertainment - 1.9%
|
|||
Electronic Arts, Inc.
|
96,234
|
11,546,155
|
|
Netflix, Inc. (a)
|
74,101
|
32,136,122
|
|
43,682,277
|
|||
Interactive Media & Services - 10.8%
|
|||
Alphabet, Inc.:
|
|||
Class A (a)
|
634,845
|
86,446,844
|
|
Class C (a)
|
645,403
|
88,646,102
|
|
Meta Platforms, Inc. Class A (a)
|
275,371
|
81,479,525
|
|
256,572,471
|
|||
TOTAL COMMUNICATION SERVICES
|
300,254,748
|
||
CONSUMER DISCRETIONARY - 14.4%
|
|||
Automobiles - 3.8%
|
|||
Tesla, Inc. (a)
|
344,570
|
88,926,626
|
|
Broadline Retail - 5.6%
|
|||
Amazon.com, Inc. (a)
|
910,506
|
125,658,933
|
|
Etsy, Inc. (a)
|
83,439
|
6,138,607
|
|
131,797,540
|
|||
Diversified Consumer Services - 0.2%
|
|||
Duolingo, Inc. (a)
|
26,858
|
3,952,423
|
|
H&R Block, Inc.
|
23,740
|
949,125
|
|
4,901,548
|
|||
Hotels, Restaurants & Leisure - 1.8%
|
|||
Airbnb, Inc. Class A (a)
|
134,369
|
17,676,242
|
|
Booking Holdings, Inc. (a)
|
7,935
|
24,638,413
|
|
Starbucks Corp.
|
1,680
|
163,699
|
|
42,478,354
|
|||
Household Durables - 0.1%
|
|||
NVR, Inc. (a)
|
563
|
3,590,437
|
|
Specialty Retail - 2.9%
|
|||
AutoZone, Inc. (a)
|
577
|
1,460,577
|
|
O'Reilly Automotive, Inc. (a)
|
8,555
|
8,039,134
|
|
The Home Depot, Inc.
|
143,686
|
47,459,486
|
|
TJX Companies, Inc.
|
11,478
|
1,061,485
|
|
Ulta Beauty, Inc. (a)
|
26,868
|
11,151,026
|
|
69,171,708
|
|||
TOTAL CONSUMER DISCRETIONARY
|
340,866,213
|
||
CONSUMER STAPLES - 2.4%
|
|||
Beverages - 1.3%
|
|||
PepsiCo, Inc.
|
36,218
|
6,443,907
|
|
The Coca-Cola Co.
|
400,156
|
23,941,333
|
|
30,385,240
|
|||
Consumer Staples Distribution & Retail - 0.6%
|
|||
Costco Wholesale Corp.
|
25,065
|
13,767,703
|
|
Household Products - 0.5%
|
|||
Kimberly-Clark Corp.
|
87,463
|
11,267,858
|
|
Personal Care Products - 0.0%
|
|||
elf Beauty, Inc. (a)
|
2,801
|
388,527
|
|
TOTAL CONSUMER STAPLES
|
55,809,328
|
||
ENERGY - 1.4%
|
|||
Oil, Gas & Consumable Fuels - 1.4%
|
|||
Cheniere Energy, Inc.
|
98,873
|
16,136,074
|
|
EOG Resources, Inc.
|
95,271
|
12,253,756
|
|
Texas Pacific Land Corp. (b)
|
3,201
|
6,033,085
|
|
34,422,915
|
|||
FINANCIALS - 5.4%
|
|||
Capital Markets - 1.2%
|
|||
Charles Schwab Corp.
|
203,921
|
12,061,927
|
|
LPL Financial
|
15,712
|
3,623,030
|
|
NASDAQ, Inc.
|
235,136
|
12,339,937
|
|
28,024,894
|
|||
Financial Services - 4.0%
|
|||
Apollo Global Management, Inc.
|
193,813
|
16,927,627
|
|
MasterCard, Inc. Class A
|
118,928
|
49,074,450
|
|
Visa, Inc. Class A
|
121,792
|
29,921,859
|
|
95,923,936
|
|||
Insurance - 0.2%
|
|||
Brown & Brown, Inc.
|
26,961
|
1,997,810
|
|
Kinsale Capital Group, Inc.
|
4,859
|
1,936,943
|
|
3,934,753
|
|||
TOTAL FINANCIALS
|
127,883,583
|
||
HEALTH CARE - 11.3%
|
|||
Biotechnology - 2.5%
|
|||
AbbVie, Inc.
|
140,646
|
20,669,336
|
|
Amgen, Inc.
|
7,749
|
1,986,379
|
|
Exelixis, Inc. (a)
|
24,891
|
557,309
|
|
Gilead Sciences, Inc.
|
150,829
|
11,535,402
|
|
Incyte Corp. (a)
|
205,886
|
13,285,824
|
|
Sarepta Therapeutics, Inc. (a)
|
5,644
|
682,980
|
|
Seagen, Inc. (a)
|
2,022
|
416,674
|
|
United Therapeutics Corp. (a)
|
46,605
|
10,456,298
|
|
59,590,202
|
|||
Health Care Equipment & Supplies - 1.3%
|
|||
Align Technology, Inc. (a)
|
22,594
|
8,362,943
|
|
Inspire Medical Systems, Inc. (a)
|
33,486
|
7,597,304
|
|
Insulet Corp. (a)
|
15,610
|
2,992,593
|
|
Intuitive Surgical, Inc. (a)
|
751
|
234,823
|
|
Lantheus Holdings, Inc. (a)
|
176,060
|
12,049,546
|
|
31,237,209
|
|||
Health Care Providers & Services - 3.9%
|
|||
Elevance Health, Inc.
|
30,283
|
13,385,389
|
|
HCA Holdings, Inc.
|
43,233
|
11,988,511
|
|
Humana, Inc.
|
31,084
|
14,349,307
|
|
UnitedHealth Group, Inc.
|
108,137
|
51,535,931
|
|
91,259,138
|
|||
Life Sciences Tools & Services - 0.2%
|
|||
Medpace Holdings, Inc. (a)
|
15,879
|
4,291,617
|
|
Thermo Fisher Scientific, Inc.
|
2,750
|
1,532,025
|
|
5,823,642
|
|||
Pharmaceuticals - 3.4%
|
|||
Eli Lilly & Co.
|
104,399
|
57,857,926
|
|
Merck & Co., Inc.
|
114,166
|
12,441,811
|
|
Pfizer, Inc.
|
253,230
|
8,959,277
|
|
79,259,014
|
|||
TOTAL HEALTH CARE
|
267,169,205
|
||
INDUSTRIALS - 6.3%
|
|||
Aerospace & Defense - 1.2%
|
|||
Axon Enterprise, Inc. (a)
|
67,114
|
14,289,242
|
|
Lockheed Martin Corp.
|
29,709
|
13,320,030
|
|
27,609,272
|
|||
Building Products - 0.1%
|
|||
Allegion PLC
|
15,440
|
1,757,226
|
|
Commercial Services & Supplies - 1.1%
|
|||
Cintas Corp.
|
31,775
|
16,020,002
|
|
Republic Services, Inc.
|
75,726
|
10,914,388
|
|
26,934,390
|
|||
Construction & Engineering - 0.5%
|
|||
Valmont Industries, Inc.
|
47,956
|
12,156,846
|
|
Ground Transportation - 2.2%
|
|||
CSX Corp.
|
382,838
|
11,561,708
|
|
Uber Technologies, Inc. (a)
|
465,431
|
21,982,306
|
|
Union Pacific Corp.
|
78,996
|
17,424,148
|
|
50,968,162
|
|||
Machinery - 1.1%
|
|||
Caterpillar, Inc.
|
85,614
|
24,068,664
|
|
Deere & Co.
|
4,006
|
1,646,226
|
|
Illinois Tool Works, Inc.
|
5,393
|
1,333,959
|
|
27,048,849
|
|||
Passenger Airlines - 0.1%
|
|||
American Airlines Group, Inc. (a)
|
151,790
|
2,235,867
|
|
Trading Companies & Distributors - 0.0%
|
|||
Applied Industrial Technologies, Inc.
|
1,715
|
264,745
|
|
TOTAL INDUSTRIALS
|
148,975,357
|
||
INFORMATION TECHNOLOGY - 44.5%
|
|||
Communications Equipment - 0.1%
|
|||
Extreme Networks, Inc. (a)
|
51,805
|
1,422,047
|
|
IT Services - 1.7%
|
|||
Accenture PLC Class A
|
28,364
|
9,183,412
|
|
Gartner, Inc. (a)
|
42,477
|
14,853,357
|
|
GoDaddy, Inc. (a)
|
127,069
|
9,213,773
|
|
MongoDB, Inc. Class A (a)
|
17,128
|
6,530,906
|
|
39,781,448
|
|||
Semiconductors & Semiconductor Equipment - 11.0%
|
|||
Applied Materials, Inc.
|
86,829
|
13,263,998
|
|
Broadcom, Inc.
|
57,925
|
53,458,403
|
|
Enphase Energy, Inc. (a)
|
78,256
|
9,901,732
|
|
KLA Corp.
|
38,941
|
19,543,320
|
|
Lattice Semiconductor Corp. (a)
|
142,025
|
13,813,352
|
|
NVIDIA Corp.
|
259,248
|
127,951,850
|
|
Qualcomm, Inc.
|
206,965
|
23,703,701
|
|
261,636,356
|
|||
Software - 18.4%
|
|||
Adobe, Inc. (a)
|
70,750
|
39,573,305
|
|
Autodesk, Inc. (a)
|
77,322
|
17,160,845
|
|
Cadence Design Systems, Inc. (a)
|
77,939
|
18,739,653
|
|
Fortinet, Inc. (a)
|
120,374
|
7,247,719
|
|
HubSpot, Inc. (a)
|
28,472
|
15,560,517
|
|
Intuit, Inc.
|
5,072
|
2,748,060
|
|
Manhattan Associates, Inc. (a)
|
68,004
|
13,778,970
|
|
Microsoft Corp.
|
760,875
|
249,384,390
|
|
Palo Alto Networks, Inc. (a)
|
81,235
|
19,764,476
|
|
Salesforce, Inc. (a)
|
85,268
|
18,883,451
|
|
ServiceNow, Inc. (a)
|
458
|
269,684
|
|
Synopsys, Inc. (a)
|
42,125
|
19,330,741
|
|
Teradata Corp. (a)
|
239,125
|
11,064,314
|
|
VMware, Inc. Class A (a)
|
6,872
|
1,159,856
|
|
434,665,981
|
|||
Technology Hardware, Storage & Peripherals - 13.3%
|
|||
Apple, Inc.
|
1,655,880
|
311,090,177
|
|
Pure Storage, Inc. Class A (a)
|
126,429
|
4,626,037
|
|
315,716,214
|
|||
TOTAL INFORMATION TECHNOLOGY
|
1,053,222,046
|
||
MATERIALS - 0.9%
|
|||
Chemicals - 0.4%
|
|||
CF Industries Holdings, Inc.
|
77,088
|
5,941,172
|
|
Linde PLC
|
10,896
|
4,217,188
|
|
10,158,360
|
|||
Metals & Mining - 0.5%
|
|||
Nucor Corp.
|
70,964
|
12,212,904
|
|
TOTAL MATERIALS
|
22,371,264
|
||
REAL ESTATE - 0.6%
|
|||
Equity Real Estate Investment Trusts (REITs) - 0.6%
|
|||
Public Storage
|
50,947
|
14,080,732
|
|
Ryman Hospitality Properties, Inc.
|
7,318
|
622,250
|
|
14,702,982
|
|||
|
TOTAL COMMON STOCKS
(Cost $1,467,566,491)
|
2,365,677,641
|
||
Money Market Funds - 0.2%
|
|||
Shares
|
Value ($)
|
||
Fidelity Cash Central Fund 5.43% (c)
|
80,122
|
80,138
|
|
Fidelity Securities Lending Cash Central Fund 5.44% (c)(d)
|
6,142,036
|
6,142,650
|
|
|
TOTAL MONEY MARKET FUNDS
(Cost $6,222,788)
|
6,222,788
|
||
|
TOTAL INVESTMENT IN SECURITIES - 100.1%
(Cost $1,473,789,279)
|
2,371,900,429
|
NET OTHER ASSETS (LIABILITIES) - (0.1)%
|
(3,455,878)
|
NET ASSETS - 100.0%
|
2,368,444,551
|
Futures Contracts
|
|||||
Number
of contracts
|
Expiration
Date
|
Notional
Amount ($)
|
Value ($)
|
Unrealized
Appreciation/
(Depreciation) ($)
|
|
Purchased
|
|||||
Equity Index Contracts
|
|||||
CME E-mini S&P 500 Index Contracts (United States)
|
8
|
Sep 2023
|
1,806,400
|
210
|
210
|
The notional amount of futures purchased as a percentage of Net Assets is 0.1%
|
|||||
Legend
(a)
|
Non-income producing
|
(b)
|
Security or a portion of the security is on loan at period end.
|
(c)
|
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
|
(d)
|
Investment made with cash collateral received from securities on loan.
|
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate
|
Value,
beginning
of period ($)
|
Purchases ($)
|
Sales
Proceeds ($)
|
Dividend
Income ($)
|
Realized
Gain (loss) ($)
|
Change in
Unrealized
appreciation
(depreciation) ($)
|
Value,
end
of period ($)
|
% ownership,
end
of period
|
Fidelity Cash Central Fund 5.43%
|
33,751,495
|
788,905,048
|
822,576,405
|
2,052,081
|
-
|
-
|
80,138
|
0.0%
|
Fidelity Securities Lending Cash Central Fund 5.44%
|
831,850
|
88,755,290
|
83,444,490
|
2,853
|
-
|
-
|
6,142,650
|
0.0%
|
Total
|
34,583,345
|
877,660,338
|
906,020,895
|
2,054,934
|
-
|
-
|
6,222,788
|
|
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2023, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date:
|
||||
Description
|
Total ($)
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Investments in Securities:
|
||||
Equities:
|
||||
Communication Services
|
300,254,748
|
300,254,748
|
-
|
-
|
Consumer Discretionary
|
340,866,213
|
340,866,213
|
-
|
-
|
Consumer Staples
|
55,809,328
|
55,809,328
|
-
|
-
|
Energy
|
34,422,915
|
34,422,915
|
-
|
-
|
Financials
|
127,883,583
|
127,883,583
|
-
|
-
|
Health Care
|
267,169,205
|
267,169,205
|
-
|
-
|
Industrials
|
148,975,357
|
148,975,357
|
-
|
-
|
Information Technology
|
1,053,222,046
|
1,053,222,046
|
-
|
-
|
Materials
|
22,371,264
|
22,371,264
|
-
|
-
|
Real Estate
|
14,702,982
|
14,702,982
|
-
|
-
|
Money Market Funds
|
6,222,788
|
6,222,788
|
-
|
-
|
Total Investments in Securities:
|
2,371,900,429
|
2,371,900,429
|
-
|
-
|
Derivative Instruments:
|
||||
Assets
|
||||
Futures Contracts
|
210
|
210
|
-
|
-
|
Total Assets
|
210
|
210
|
-
|
-
|
Total Derivative Instruments:
|
210
|
210
|
-
|
-
|
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of August 31, 2023. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type
|
Value
|
|
Asset ($)
|
Liability ($)
|
|
Equity Risk
|
||
Futures Contracts (a)
|
210
|
0
|
Total Equity Risk
|
210
|
0
|
Total Value of Derivatives
|
210
|
0
|
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
Fidelity® Large Cap Growth Enhanced Index Fund
Statement of Assets and Liabilities
|
||||
August 31, 2023
|
||||
Assets
|
||||
Investment in securities, at value (including securities loaned of $5,842,725) - See accompanying schedule:
|
||||
Unaffiliated issuers (cost $1,467,566,491)
|
$
|
2,365,677,641
|
||
Fidelity Central Funds (cost $6,222,788)
|
6,222,788
|
|||
Total Investment in Securities (cost $1,473,789,279)
|
$
|
2,371,900,429
|
||
Receivable for investments sold
|
57,100,454
|
|||
Receivable for fund shares sold
|
3,029,404
|
|||
Dividends receivable
|
1,834,696
|
|||
Distributions receivable from Fidelity Central Funds
|
70,437
|
|||
Receivable for daily variation margin on futures contracts
|
210
|
|||
Other receivables
|
10,899
|
|||
Total assets
|
2,433,946,529
|
|||
Liabilities
|
||||
Payable for investments purchased
|
$
|
33,477,191
|
||
Payable for fund shares redeemed
|
8,205,019
|
|||
Accrued management fee
|
829,229
|
|||
Notes payable to affiliates
|
16,816,000
|
|||
Other payables and accrued expenses
|
31,889
|
|||
Collateral on securities loaned
|
6,142,650
|
|||
Total Liabilities
|
65,501,978
|
|||
Net Assets
|
$
|
2,368,444,551
|
||
Net Assets consist of:
|
||||
Paid in capital
|
$
|
1,470,381,057
|
||
Total accumulated earnings (loss)
|
898,063,494
|
|||
Net Assets
|
$
|
2,368,444,551
|
||
Net Asset Value, offering price and redemption price per share ($2,368,444,551 ÷ 80,081,427 shares)
|
$
|
29.58
|
||
Statement of Operations
|
||||
Year ended
August 31, 2023
|
||||
Investment Income
|
||||
Dividends
|
$
|
20,177,977
|
||
Interest
|
93,311
|
|||
Income from Fidelity Central Funds (including $2,853 from security lending)
|
2,054,934
|
|||
Total Income
|
22,326,222
|
|||
Expenses
|
||||
Management fee
|
$
|
7,896,319
|
||
Independent trustees' fees and expenses
|
10,270
|
|||
Interest
|
41,394
|
|||
Miscellaneous
|
35,374
|
|||
Total expenses before reductions
|
7,983,357
|
|||
Expense reductions
|
(2,918)
|
|||
Total expenses after reductions
|
7,980,439
|
|||
Net Investment income (loss)
|
14,345,783
|
|||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
29,491,248
|
|||
Redemptions in-kind
|
14,287,867
|
|||
Futures contracts
|
2,639,291
|
|||
Total net realized gain (loss)
|
46,418,406
|
|||
Change in net unrealized appreciation (depreciation) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
358,359,152
|
|||
Futures contracts
|
380,401
|
|||
Total change in net unrealized appreciation (depreciation)
|
358,739,553
|
|||
Net gain (loss)
|
405,157,959
|
|||
Net increase (decrease) in net assets resulting from operations
|
$
|
419,503,742
|
||
Statement of Changes in Net Assets
|
||||
Year ended
August 31, 2023
|
Year ended
August 31, 2022
|
|||
Increase (Decrease) in Net Assets
|
||||
Operations
|
||||
Net investment income (loss)
|
$
|
14,345,783
|
$
|
8,691,799
|
Net realized gain (loss)
|
46,418,406
|
(8,165,601)
|
||
Change in net unrealized appreciation (depreciation)
|
358,739,553
|
(299,422,252)
|
||
Net increase (decrease) in net assets resulting from operations
|
419,503,742
|
(298,896,054)
|
||
Distributions to shareholders
|
(10,050,462)
|
(234,756,175)
|
||
Share transactions
|
||||
Proceeds from sales of shares
|
1,206,466,982
|
431,325,162
|
||
Reinvestment of distributions
|
8,894,596
|
220,826,073
|
||
Cost of shares redeemed
|
(882,002,420)
|
(277,612,906)
|
||
Net increase (decrease) in net assets resulting from share transactions
|
333,359,158
|
374,538,329
|
||
Total increase (decrease) in net assets
|
742,812,438
|
(159,113,900)
|
||
Net Assets
|
||||
Beginning of period
|
1,625,632,113
|
1,784,746,013
|
||
End of period
|
$
|
2,368,444,551
|
$
|
1,625,632,113
|
Other Information
|
||||
Shares
|
||||
Sold
|
46,876,724
|
15,823,152
|
||
Issued in reinvestment of distributions
|
388,750
|
7,278,381
|
||
Redeemed
|
(32,666,545)
|
(9,733,327)
|
||
Net increase (decrease)
|
14,598,929
|
13,368,206
|
||
Financial Highlights
Fidelity® Large Cap Growth Enhanced Index Fund
|
Years ended August 31,
|
2023
|
2022
|
2021
|
2020
|
2019
|
|||||
Selected Per-Share Data
|
||||||||||
Net asset value, beginning of period
|
$
|
24.83
|
$
|
34.25
|
$
|
27.80
|
$
|
20.24
|
$
|
21.58
|
Income from Investment Operations
|
||||||||||
Net investment income (loss) A,B
|
.18
|
.15
|
.14
|
.16
|
.21
|
|||||
Net realized and unrealized gain (loss)
|
4.71
|
(5.05)
|
7.63
|
8.08
|
(.15)
|
|||||
Total from investment operations
|
4.89
|
(4.90)
|
7.77
|
8.24
|
.06
|
|||||
Distributions from net investment income
|
(.14)
|
(.14)
|
(.16)
|
(.18)
|
(.24) C
|
|||||
Distributions from net realized gain
|
-
|
(4.38)
|
(1.16)
|
(.51)
|
(1.16) C
|
|||||
Total distributions
|
(.14)
|
(4.52)
|
(1.32)
|
(.68) D
|
(1.40)
|
|||||
Net asset value, end of period
|
$
|
29.58
|
$
|
24.83
|
$
|
34.25
|
$
|
27.80
|
$
|
20.24
|
Total Return E
|
19.85%
|
(16.70)%
|
29.08%
|
41.73%
|
1.28%
|
|||||
Ratios to Average Net Assets B,F,G
|
||||||||||
Expenses before reductions
|
.39%
|
.39%
|
.39%
|
.39%
|
.39%
|
|||||
Expenses net of fee waivers, if any
|
.39%
|
.39%
|
.39%
|
.39%
|
.39%
|
|||||
Expenses net of all reductions
|
.39%
|
.39%
|
.39%
|
.39%
|
.39%
|
|||||
Net investment income (loss)
|
.71%
|
.52%
|
.47%
|
.74%
|
1.07%
|
|||||
Supplemental Data
|
||||||||||
Net assets, end of period (000 omitted)
|
$
|
2,368,445
|
$
|
1,625,632
|
$
|
1,784,746
|
$
|
1,417,537
|
$
|
1,106,497
|
Portfolio turnover rate H
|
108% I
|
101%
|
84%
|
69%
|
85%
|
ACalculated based on average shares outstanding during the period.
BNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
CThe amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
DTotal distributions per share do not sum due to rounding.
ETotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
FFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
HAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
IPortfolio turnover rate excludes securities received or delivered in-kind.
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
|
|||
Periods ended August 31, 2023
|
Past 1
year
|
Past 5
years
|
Past 10
years
|
Fidelity® Large Cap Value Enhanced Index Fund
|
8.30%
|
7.64%
|
9.87%
|
$10,000 Over 10 Years
|
Let's say hypothetically that $10,000 was invested in Fidelity® Large Cap Value Enhanced Index Fund on August 31, 2013.
The chart shows how the value of your investment would have changed, and also shows how the Russell 1000® Value Index performed over the same period.
|
|
Fidelity® Large Cap Value Enhanced Index Fund
Market Recap:
U.S. equities gained 15.94% for the 12 months ending August 31, 2023, according to the S&P 500® index, as continued global economic expansion, falling commodity prices and a slowing in the pace of inflation provided a favorable backdrop for higher-risk assets. Large-cap stocks spearheaded the rally, which was driven by the shares of a narrow set of mega-cap companies in the information technology and communication services sectors, largely due to exuberance related to generative artificial intelligence. Aggressive monetary tightening by the U.S. Federal Reserve continued amid consistent pressure on core inflation, a measure that excludes food and energy. Since March 2022, the Fed has hiked its benchmark interest rate 11 times. The latest bump came in late July, a fourth consecutive raise of a stepped down 25 basis points. The S&P 500® gained 3.21% in July but snapped a five-month rally in August (-1.59%), held back by softness in manufacturing and jobs. Still, U.S. stocks ended August up 18.73% year to date. For the full 12 months, value (+17%) topped growth (+13%) within the index. By sector, information technology (+35%) led by a wide margin, followed by communication services (+26%). In contrast, the defensive utilities sector (-13%) lagged most, as climbing yields offered investors better returns elsewhere. Real estate returned about -7%, hampered by high borrowing costs and low home inventory.
Comments from Senior Portfolio Manager Maximilian Kaufmann of the Fidelity Systematic Equity Strategies portfolio management team:
For the fiscal year ending August 31, 2023, the fund gained 8.30%, versus 8.59% for the benchmark Russell 1000 Value Index. Relative to the benchmark, security selection was the primary detractor, especially within the industrials sector. The biggest detractor from performance versus the benchmark was stock picking in consumer staples. An underweight in communication services also hampered the fund's result. Also detracting from our result was stock selection in health care. The largest individual relative detractor was an overweight in Hawaiian Electric Industries (-57%). We decreased our position in this stock this period. The second-largest relative detractor was an underweight in Netflix (+90%), another stock in which we decreased our investment this period. An underweight in General Electric (+101%) also hurt. In contrast, the biggest contributor to performance versus the benchmark was stock picking and an overweight in information technology. Picks in communication services also boosted relative performance. Also helping our relative result was an underweight in real estate. The fund's non-benchmark stake in Broadcom gained approximately 87% and was the top individual relative contributor. This period we increased our stake in Broadcom. A non-benchmark stake in Adobe gained 53% and was a second notable relative contributor. This period we increased our investment in Adobe. An underweight in Dominion Energy (-37%) also helped. Dominion Energy was not held at period end. Notable changes in positioning include lower allocations to the utilities and communication services sectors.
Note to shareholders:
In June 2023, the Board of Trustees approved the conversion of Fidelity's Enhanced Index Funds into exchange-traded funds, a move deemed in the best interest of shareholders. Each new ETF and its former corresponding fund will have identical investment objectives and fundamental investment policies and have substantially similar investment strategies. Fidelity believes that the conversion will provide multiple benefits for investors of the Funds, including lower net expenses, additional trading flexibility, increased portfolio holdings transparency and the potential for enhanced tax efficiency. The Fund conversions are expected to be conducted in November 2023. For more information, please refer to the Funds' prospectus supplements or visit us online.
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. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a 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® Large Cap Value Enhanced Index Fund
Top Holdings (% of Fund's net assets)
|
||
Berkshire Hathaway, Inc. Class B
|
3.9
|
|
JPMorgan Chase & Co.
|
2.6
|
|
Exxon Mobil Corp.
|
2.4
|
|
Johnson & Johnson
|
2.1
|
|
Chevron Corp.
|
1.8
|
|
Cisco Systems, Inc.
|
1.5
|
|
Comcast Corp. Class A
|
1.5
|
|
Pfizer, Inc.
|
1.4
|
|
Bank of America Corp.
|
1.4
|
|
Walmart, Inc.
|
1.4
|
|
20.0
|
||
Market Sectors (% of Fund's net assets)
|
||
Financials
|
20.6
|
|
Health Care
|
16.0
|
|
Industrials
|
15.0
|
|
Information Technology
|
9.9
|
|
Energy
|
7.9
|
|
Consumer Staples
|
7.5
|
|
Consumer Discretionary
|
6.6
|
|
Real Estate
|
4.8
|
|
Materials
|
4.5
|
|
Communication Services
|
4.1
|
|
Utilities
|
2.6
|
|
Asset Allocation (% of Fund's net assets)
|
|
Futures - 0.3%
|
Fidelity® Large Cap Value Enhanced Index Fund
Showing Percentage of Net Assets
Common Stocks - 99.5%
|
|||
Shares
|
Value ($)
|
||
COMMUNICATION SERVICES - 4.1%
|
|||
Diversified Telecommunication Services - 0.7%
|
|||
AT&T, Inc.
|
1,641,680
|
24,280,447
|
|
Lumen Technologies, Inc. (a)
|
465,449
|
740,064
|
|
Verizon Communications, Inc.
|
308,626
|
10,795,737
|
|
35,816,248
|
|||
Entertainment - 1.4%
|
|||
Activision Blizzard, Inc.
|
153,264
|
14,098,755
|
|
Electronic Arts, Inc.
|
299,687
|
35,956,446
|
|
Liberty Media Corp. Liberty Formula One Class A
|
23,593
|
1,430,915
|
|
Liberty Media Corp. Liberty Live Class A
|
28,594
|
952,466
|
|
Netflix, Inc. (b)
|
13,462
|
5,838,200
|
|
Playtika Holding Corp. (b)
|
26,164
|
255,361
|
|
Spotify Technology SA (b)
|
26,585
|
4,093,292
|
|
The Walt Disney Co. (b)
|
200,311
|
16,762,024
|
|
79,387,459
|
|||
Interactive Media & Services - 0.4%
|
|||
Alphabet, Inc.:
|
|||
Class A (b)
|
2,241
|
305,157
|
|
Class C (b)
|
145,770
|
20,021,510
|
|
20,326,667
|
|||
Media - 1.6%
|
|||
Comcast Corp. Class A
|
1,726,638
|
80,737,593
|
|
Liberty Media Corp. Liberty SiriusXM
|
347,223
|
8,486,130
|
|
Liberty Media Corp. Liberty SiriusXM Class A
|
47,081
|
1,131,356
|
|
TEGNA, Inc.
|
31,996
|
528,894
|
|
90,883,973
|
|||
TOTAL COMMUNICATION SERVICES
|
226,414,347
|
||
CONSUMER DISCRETIONARY - 6.6%
|
|||
Automobiles - 1.0%
|
|||
Ford Motor Co.
|
3,206,252
|
38,891,837
|
|
General Motors Co.
|
439,809
|
14,738,000
|
|
53,629,837
|
|||
Broadline Retail - 0.9%
|
|||
Amazon.com, Inc. (b)
|
112,009
|
15,458,362
|
|
eBay, Inc.
|
616,453
|
27,604,765
|
|
Macy's, Inc. (a)
|
632,711
|
7,738,056
|
|
50,801,183
|
|||
Distributors - 0.7%
|
|||
Genuine Parts Co.
|
212,313
|
32,638,877
|
|
LKQ Corp.
|
78,451
|
4,121,031
|
|
36,759,908
|
|||
Diversified Consumer Services - 0.0%
|
|||
ADT, Inc.
|
133,845
|
859,285
|
|
H&R Block, Inc.
|
23,740
|
949,125
|
|
1,808,410
|
|||
Hotels, Restaurants & Leisure - 1.6%
|
|||
Airbnb, Inc. Class A (b)
|
120,387
|
15,836,910
|
|
Caesars Entertainment, Inc. (b)
|
46,492
|
2,569,148
|
|
Draftkings Holdings, Inc. (b)
|
62,600
|
1,856,090
|
|
Expedia, Inc. (b)
|
9,648
|
1,045,747
|
|
Hilton Grand Vacations, Inc. (b)
|
45,120
|
1,972,646
|
|
International Game Technology PLC
|
25,136
|
804,855
|
|
Marriott Vacations Worldwide Corp.
|
19,842
|
2,156,627
|
|
McDonald's Corp.
|
165,512
|
46,533,699
|
|
MGM Resorts International
|
288,609
|
12,693,024
|
|
Wendy's Co.
|
93,249
|
1,845,398
|
|
Wynn Resorts Ltd.
|
20,039
|
2,031,554
|
|
89,345,698
|
|||
Household Durables - 1.4%
|
|||
D.R. Horton, Inc.
|
109,627
|
13,047,806
|
|
Lennar Corp. Class A
|
53,092
|
6,322,726
|
|
NVR, Inc. (b)
|
1,313
|
8,373,434
|
|
Toll Brothers, Inc.
|
327,651
|
26,844,446
|
|
TopBuild Corp. (b)
|
69,546
|
20,173,904
|
|
74,762,316
|
|||
Leisure Products - 0.1%
|
|||
Peloton Interactive, Inc. Class A (a)(b)
|
454,655
|
2,900,699
|
|
Polaris, Inc.
|
7,624
|
854,574
|
|
3,755,273
|
|||
Specialty Retail - 0.9%
|
|||
AutoNation, Inc. (b)
|
68,762
|
10,801,823
|
|
AutoZone, Inc. (b)
|
4,125
|
10,441,736
|
|
Murphy U.S.A., Inc.
|
10,863
|
3,450,523
|
|
Petco Health & Wellness Co., Inc. (b)
|
104,363
|
531,208
|
|
The Home Depot, Inc.
|
36,558
|
12,075,107
|
|
TJX Companies, Inc.
|
101,556
|
9,391,899
|
|
Ulta Beauty, Inc. (b)
|
5,399
|
2,240,747
|
|
Victoria's Secret & Co. (b)
|
55,778
|
1,069,822
|
|
50,002,865
|
|||
Textiles, Apparel & Luxury Goods - 0.0%
|
|||
Crocs, Inc. (b)
|
27,358
|
2,663,028
|
|
TOTAL CONSUMER DISCRETIONARY
|
363,528,518
|
||
CONSUMER STAPLES - 7.5%
|
|||
Beverages - 1.2%
|
|||
Coca-Cola Bottling Co. Consolidated
|
706
|
493,423
|
|
Keurig Dr. Pepper, Inc.
|
133,625
|
4,496,481
|
|
Molson Coors Beverage Co. Class B
|
47,330
|
3,004,982
|
|
PepsiCo, Inc.
|
13,753
|
2,446,934
|
|
The Coca-Cola Co.
|
960,473
|
57,465,100
|
|
67,906,920
|
|||
Consumer Staples Distribution & Retail - 1.6%
|
|||
Casey's General Stores, Inc.
|
22,877
|
5,591,368
|
|
Grocery Outlet Holding Corp. (b)
|
16,651
|
513,683
|
|
Kroger Co.
|
135,227
|
6,273,181
|
|
Walmart, Inc.
|
482,312
|
78,428,754
|
|
90,806,986
|
|||
Food Products - 2.3%
|
|||
Archer Daniels Midland Co.
|
390,057
|
30,931,520
|
|
Cal-Maine Foods, Inc.
|
32,196
|
1,538,647
|
|
Flowers Foods, Inc.
|
41,416
|
975,761
|
|
Lamb Weston Holdings, Inc.
|
22,127
|
2,155,391
|
|
Mondelez International, Inc.
|
761,652
|
54,275,322
|
|
Post Holdings, Inc. (b)
|
29,146
|
2,614,688
|
|
The J.M. Smucker Co.
|
781
|
113,206
|
|
The Kraft Heinz Co.
|
1,033,358
|
34,193,816
|
|
126,798,351
|
|||
Household Products - 1.7%
|
|||
Colgate-Palmolive Co.
|
78,681
|
5,780,693
|
|
Kimberly-Clark Corp.
|
109,273
|
14,077,641
|
|
Procter & Gamble Co.
|
473,192
|
73,032,453
|
|
92,890,787
|
|||
Tobacco - 0.7%
|
|||
Philip Morris International, Inc.
|
409,460
|
39,332,728
|
|
TOTAL CONSUMER STAPLES
|
417,735,772
|
||
ENERGY - 7.9%
|
|||
Energy Equipment & Services - 0.7%
|
|||
Baker Hughes Co. Class A
|
339,155
|
12,274,019
|
|
Schlumberger Ltd.
|
413,236
|
24,364,395
|
|
Weatherford International PLC (b)
|
59,646
|
5,279,864
|
|
41,918,278
|
|||
Oil, Gas & Consumable Fuels - 7.2%
|
|||
Chevron Corp.
|
616,913
|
99,384,684
|
|
Civitas Resources, Inc.
|
34,336
|
2,823,106
|
|
ConocoPhillips Co.
|
423,838
|
50,449,437
|
|
Devon Energy Corp.
|
201,627
|
10,301,123
|
|
Diamondback Energy, Inc.
|
47,620
|
7,227,764
|
|
EOG Resources, Inc.
|
272,717
|
35,076,861
|
|
Exxon Mobil Corp.
|
1,175,777
|
130,734,645
|
|
Marathon Oil Corp.
|
400,746
|
10,559,657
|
|
Marathon Petroleum Corp.
|
89,977
|
12,846,016
|
|
Murphy Oil Corp.
|
215,650
|
9,790,510
|
|
ONEOK, Inc.
|
8,757
|
570,956
|
|
Phillips 66 Co.
|
144,735
|
16,522,948
|
|
Pioneer Natural Resources Co.
|
18,567
|
4,417,646
|
|
Texas Pacific Land Corp.
|
500
|
942,375
|
|
Valero Energy Corp.
|
38,856
|
5,047,394
|
|
Vitesse Energy, Inc. (a)
|
32,656
|
758,925
|
|
397,454,047
|
|||
TOTAL ENERGY
|
439,372,325
|
||
FINANCIALS - 20.6%
|
|||
Banks - 6.1%
|
|||
Bank of America Corp.
|
2,752,231
|
78,906,463
|
|
Citigroup, Inc.
|
504,394
|
20,826,428
|
|
Citizens Financial Group, Inc.
|
34,882
|
981,231
|
|
Columbia Banking Systems, Inc.
|
343,171
|
7,028,142
|
|
East West Bancorp, Inc.
|
216,062
|
11,956,871
|
|
Eastern Bankshares, Inc.
|
146,664
|
1,974,097
|
|
Fifth Third Bancorp
|
296,290
|
7,866,500
|
|
JPMorgan Chase & Co.
|
971,847
|
142,210,372
|
|
KeyCorp
|
442,085
|
5,008,823
|
|
Signature Bank
|
47,175
|
2,595
|
|
U.S. Bancorp
|
293,066
|
10,705,701
|
|
Wells Fargo & Co.
|
1,255,662
|
51,846,284
|
|
339,313,507
|
|||
Capital Markets - 4.7%
|
|||
Affiliated Managers Group, Inc.
|
5,794
|
776,454
|
|
Bank of New York Mellon Corp.
|
818,593
|
36,730,268
|
|
BlackRock, Inc. Class A
|
1,830
|
1,281,988
|
|
Cboe Global Markets, Inc.
|
48,659
|
7,284,739
|
|
Charles Schwab Corp.
|
746,329
|
44,145,360
|
|
CME Group, Inc.
|
140,199
|
28,415,533
|
|
Federated Hermes, Inc.
|
370,356
|
12,873,575
|
|
Goldman Sachs Group, Inc.
|
127,118
|
41,657,840
|
|
Intercontinental Exchange, Inc.
|
51,893
|
6,122,855
|
|
Morgan Stanley
|
139,053
|
11,840,363
|
|
NASDAQ, Inc.
|
655,725
|
34,412,448
|
|
Robinhood Markets, Inc. (b)
|
394,757
|
4,298,904
|
|
S&P Global, Inc.
|
47,908
|
18,725,321
|
|
SEI Investments Co.
|
9,610
|
596,397
|
|
State Street Corp.
|
4,640
|
318,954
|
|
Stifel Financial Corp.
|
160,577
|
10,440,717
|
|
Virtu Financial, Inc. Class A
|
34,634
|
649,041
|
|
260,570,757
|
|||
Consumer Finance - 0.6%
|
|||
Discover Financial Services
|
88,354
|
7,958,045
|
|
Synchrony Financial
|
814,040
|
26,277,211
|
|
34,235,256
|
|||
Financial Services - 5.7%
|
|||
Berkshire Hathaway, Inc. Class B (b)
|
600,480
|
216,292,888
|
|
Corebridge Financial, Inc.
|
80,156
|
1,429,181
|
|
Essent Group Ltd.
|
58,007
|
2,913,112
|
|
Fidelity National Information Services, Inc.
|
660,302
|
36,884,470
|
|
MasterCard, Inc. Class A
|
43,101
|
17,785,197
|
|
MGIC Investment Corp.
|
689,998
|
12,130,165
|
|
PayPal Holdings, Inc. (b)
|
395,546
|
24,725,580
|
|
The Western Union Co.
|
32,407
|
400,226
|
|
312,560,819
|
|||
Insurance - 3.5%
|
|||
American Financial Group, Inc.
|
19,942
|
2,311,677
|
|
American International Group, Inc.
|
241,581
|
14,137,320
|
|
Axis Capital Holdings Ltd.
|
36,410
|
1,997,453
|
|
Brown & Brown, Inc.
|
395,013
|
29,270,463
|
|
Chubb Ltd.
|
102,854
|
20,660,283
|
|
Cincinnati Financial Corp.
|
33,963
|
3,592,946
|
|
F&G Annuities & Life, Inc. (a)
|
22,751
|
644,081
|
|
Globe Life, Inc.
|
41,019
|
4,576,490
|
|
Hartford Financial Services Group, Inc.
|
236,523
|
16,987,082
|
|
Loews Corp.
|
193,897
|
12,039,065
|
|
MetLife, Inc.
|
468,336
|
29,664,402
|
|
Prudential Financial, Inc.
|
167,150
|
15,824,091
|
|
Reinsurance Group of America, Inc.
|
50,831
|
7,046,193
|
|
The Travelers Companies, Inc.
|
93,709
|
15,108,702
|
|
Unum Group
|
257,884
|
12,685,314
|
|
W.R. Berkley Corp.
|
120,460
|
7,451,656
|
|
193,997,218
|
|||
TOTAL FINANCIALS
|
1,140,677,557
|
||
HEALTH CARE - 16.0%
|
|||
Biotechnology - 2.4%
|
|||
Alkermes PLC (b)
|
56,027
|
1,635,428
|
|
Amgen, Inc.
|
51,407
|
13,177,670
|
|
Biogen, Inc. (b)
|
48,610
|
12,996,370
|
|
Exelixis, Inc. (b)
|
567,210
|
12,699,832
|
|
Gilead Sciences, Inc.
|
701,604
|
53,658,674
|
|
Incyte Corp. (b)
|
295,839
|
19,090,491
|
|
PTC Therapeutics, Inc. (b)
|
134,767
|
5,323,297
|
|
United Therapeutics Corp. (b)
|
40,267
|
9,034,304
|
|
Vir Biotechnology, Inc. (b)
|
207,130
|
2,622,266
|
|
130,238,332
|
|||
Health Care Equipment & Supplies - 3.4%
|
|||
Abbott Laboratories
|
539,867
|
55,552,314
|
|
Align Technology, Inc. (b)
|
8,696
|
3,218,737
|
|
Becton, Dickinson & Co.
|
90,389
|
25,259,206
|
|
Boston Scientific Corp. (b)
|
409,817
|
22,105,529
|
|
GE Healthcare Holding LLC
|
73,743
|
5,195,194
|
|
Integra LifeSciences Holdings Corp. (b)
|
163,200
|
6,942,528
|
|
Lantheus Holdings, Inc. (b)
|
47,055
|
3,220,444
|
|
Medtronic PLC
|
317,744
|
25,896,136
|
|
The Cooper Companies, Inc.
|
10,163
|
3,760,208
|
|
Zimmer Biomet Holdings, Inc.
|
295,663
|
35,219,377
|
|
186,369,673
|
|||
Health Care Providers & Services - 3.4%
|
|||
Centene Corp. (b)
|
385,920
|
23,791,968
|
|
Cigna Group
|
94,724
|
26,168,452
|
|
CVS Health Corp.
|
590,171
|
38,461,444
|
|
Elevance Health, Inc.
|
69,973
|
30,928,766
|
|
Humana, Inc.
|
53,480
|
24,687,972
|
|
McKesson Corp.
|
43,167
|
17,798,617
|
|
UnitedHealth Group, Inc.
|
52,192
|
24,873,663
|
|
186,710,882
|
|||
Health Care Technology - 0.0%
|
|||
Teladoc Health, Inc. (b)
|
63,395
|
1,435,263
|
|
Life Sciences Tools & Services - 1.4%
|
|||
Bio-Rad Laboratories, Inc. Class A (b)
|
53,114
|
21,256,223
|
|
Danaher Corp.
|
96,706
|
25,627,090
|
|
Syneos Health, Inc. (b)
|
695,527
|
29,719,869
|
|
76,603,182
|
|||
Pharmaceuticals - 5.4%
|
|||
Bristol-Myers Squibb Co.
|
379,210
|
23,378,297
|
|
Elanco Animal Health, Inc. (b)
|
267,414
|
3,262,451
|
|
Johnson & Johnson
|
723,567
|
116,986,313
|
|
Merck & Co., Inc.
|
596,818
|
65,041,226
|
|
Organon & Co.
|
256,292
|
5,628,172
|
|
Pfizer, Inc.
|
2,261,301
|
80,004,829
|
|
Royalty Pharma PLC
|
76,111
|
2,269,630
|
|
Viatris, Inc.
|
417,673
|
4,489,985
|
|
301,060,903
|
|||
TOTAL HEALTH CARE
|
882,418,235
|
||
INDUSTRIALS - 15.0%
|
|||
Aerospace & Defense - 2.8%
|
|||
General Dynamics Corp.
|
60,691
|
13,755,008
|
|
Hexcel Corp.
|
5,647
|
413,925
|
|
L3Harris Technologies, Inc.
|
128,833
|
22,943,869
|
|
Lockheed Martin Corp.
|
39,734
|
17,814,739
|
|
Moog, Inc. Class A
|
78,131
|
9,075,697
|
|
Northrop Grumman Corp.
|
17,863
|
7,736,287
|
|
Parsons Corp. (b)
|
245,565
|
14,002,116
|
|
RTX Corp.
|
221,994
|
19,100,364
|
|
Textron, Inc.
|
437,907
|
34,029,753
|
|
The Boeing Co. (b)
|
49,013
|
10,980,382
|
|
Woodward, Inc.
|
30,739
|
3,976,704
|
|
153,828,844
|
|||
Air Freight & Logistics - 0.6%
|
|||
FedEx Corp.
|
130,367
|
34,028,394
|
|
Building Products - 1.0%
|
|||
A.O. Smith Corp.
|
8,653
|
627,343
|
|
Allegion PLC
|
70,694
|
8,045,684
|
|
Johnson Controls International PLC
|
636,181
|
37,572,850
|
|
Owens Corning
|
2,887
|
415,468
|
|
Simpson Manufacturing Co. Ltd.
|
460
|
73,490
|
|
Trane Technologies PLC
|
41,613
|
8,541,484
|
|
55,276,319
|
|||
Commercial Services & Supplies - 1.2%
|
|||
Cintas Corp.
|
59,835
|
30,167,012
|
|
Republic Services, Inc.
|
252,630
|
36,411,562
|
|
Tetra Tech, Inc.
|
6,078
|
956,373
|
|
67,534,947
|
|||
Construction & Engineering - 0.4%
|
|||
Arcosa, Inc.
|
51,498
|
4,028,174
|
|
EMCOR Group, Inc.
|
32,191
|
7,218,832
|
|
Valmont Industries, Inc.
|
44,265
|
11,221,178
|
|
22,468,184
|
|||
Electrical Equipment - 2.0%
|
|||
Acuity Brands, Inc.
|
16,094
|
2,595,640
|
|
AMETEK, Inc.
|
152,050
|
24,253,496
|
|
Atkore, Inc. (b)
|
7,610
|
1,171,712
|
|
Eaton Corp. PLC
|
91,891
|
21,168,930
|
|
Emerson Electric Co.
|
470,150
|
46,192,238
|
|
EnerSys
|
33,110
|
3,475,888
|
|
nVent Electric PLC
|
235,806
|
13,332,471
|
|
112,190,375
|
|||
Ground Transportation - 1.6%
|
|||
CSX Corp.
|
996,857
|
30,105,081
|
|
Norfolk Southern Corp.
|
46,408
|
9,514,104
|
|
RXO, Inc.
|
25,603
|
462,902
|
|
Uber Technologies, Inc. (b)
|
80,961
|
3,823,788
|
|
Union Pacific Corp.
|
200,985
|
44,331,261
|
|
88,237,136
|
|||
Industrial Conglomerates - 1.4%
|
|||
3M Co.
|
423,642
|
45,189,892
|
|
General Electric Co.
|
220,167
|
25,200,315
|
|
Honeywell International, Inc.
|
37,580
|
7,062,785
|
|
77,452,992
|
|||
Machinery - 2.7%
|
|||
AGCO Corp.
|
209,240
|
27,102,857
|
|
Allison Transmission Holdings, Inc.
|
206,995
|
12,512,848
|
|
Caterpillar, Inc.
|
82,247
|
23,122,099
|
|
CNH Industrial NV
|
656,219
|
9,042,698
|
|
Cummins, Inc.
|
40,963
|
9,423,129
|
|
Deere & Co.
|
42,798
|
17,587,410
|
|
Fortive Corp.
|
167,955
|
13,243,252
|
|
Gates Industrial Corp. PLC (b)
|
135,217
|
1,660,465
|
|
Oshkosh Corp.
|
167,579
|
17,399,728
|
|
PACCAR, Inc.
|
192,818
|
15,866,993
|
|
SPX Technologies, Inc. (b)
|
23,041
|
1,820,700
|
|
Westinghouse Air Brake Tech Co.
|
15,306
|
1,722,231
|
|
150,504,410
|
|||
Marine Transportation - 0.0%
|
|||
Kirby Corp. (b)
|
11,108
|
920,076
|
|
Passenger Airlines - 0.7%
|
|||
American Airlines Group, Inc. (b)
|
635,848
|
9,366,041
|
|
United Airlines Holdings, Inc. (b)
|
575,425
|
28,661,919
|
|
38,027,960
|
|||
Professional Services - 0.3%
|
|||
Korn Ferry
|
50,426
|
2,570,717
|
|
Leidos Holdings, Inc.
|
137,129
|
13,371,449
|
|
15,942,166
|
|||
Trading Companies & Distributors - 0.3%
|
|||
Applied Industrial Technologies, Inc.
|
4,451
|
687,101
|
|
Beacon Roofing Supply, Inc. (b)
|
101,837
|
8,131,684
|
|
Boise Cascade Co.
|
13,770
|
1,506,025
|
|
Core & Main, Inc. (b)
|
33,685
|
1,106,215
|
|
MSC Industrial Direct Co., Inc. Class A (a)
|
22,128
|
2,258,384
|
|
13,689,409
|
|||
TOTAL INDUSTRIALS
|
830,101,212
|
||
INFORMATION TECHNOLOGY - 9.9%
|
|||
Communications Equipment - 1.7%
|
|||
Cisco Systems, Inc.
|
1,422,216
|
81,564,088
|
|
Juniper Networks, Inc.
|
397,108
|
11,563,785
|
|
93,127,873
|
|||
Electronic Equipment, Instruments & Components - 0.3%
|
|||
Avnet, Inc.
|
19,865
|
1,008,149
|
|
Belden, Inc.
|
47,921
|
4,499,782
|
|
Coherent Corp. (b)
|
68,048
|
2,560,646
|
|
Keysight Technologies, Inc. (b)
|
51,615
|
6,880,280
|
|
Vontier Corp.
|
128,232
|
4,027,767
|
|
18,976,624
|
|||
IT Services - 1.5%
|
|||
Akamai Technologies, Inc. (b)
|
8,778
|
922,480
|
|
Amdocs Ltd.
|
90,858
|
8,104,534
|
|
Gartner, Inc. (b)
|
30,382
|
10,623,978
|
|
GoDaddy, Inc. (b)
|
149,805
|
10,862,361
|
|
IBM Corp.
|
48,545
|
7,127,862
|
|
Kyndryl Holdings, Inc. (b)
|
76,197
|
1,286,205
|
|
Twilio, Inc. Class A (b)
|
322,274
|
20,532,077
|
|
Wix.com Ltd. (b)
|
233,938
|
23,106,056
|
|
82,565,553
|
|||
Semiconductors & Semiconductor Equipment - 3.6%
|
|||
Advanced Micro Devices, Inc. (b)
|
293,882
|
31,069,205
|
|
Broadcom, Inc.
|
28,458
|
26,263,604
|
|
Cirrus Logic, Inc. (b)
|
34,372
|
2,819,879
|
|
Intel Corp.
|
2,016,194
|
70,849,057
|
|
NVIDIA Corp.
|
7,504
|
3,703,599
|
|
NXP Semiconductors NV
|
4,284
|
881,304
|
|
Qorvo, Inc. (b)
|
288,458
|
30,977,505
|
|
Qualcomm, Inc.
|
258,637
|
29,621,696
|
|
196,185,849
|
|||
Software - 2.4%
|
|||
Adobe, Inc. (b)
|
20,413
|
11,417,807
|
|
Blackbaud, Inc. (b)
|
2,955
|
224,905
|
|
Box, Inc. Class A (b)
|
100,968
|
2,673,633
|
|
DocuSign, Inc. (b)
|
56,767
|
2,855,380
|
|
Dropbox, Inc. Class A (b)
|
468,621
|
13,022,978
|
|
NCR Corp. (b)
|
13,867
|
426,549
|
|
Oracle Corp.
|
5,998
|
722,099
|
|
Salesforce, Inc. (b)
|
197,919
|
43,831,142
|
|
SolarWinds, Inc. (b)
|
82,880
|
882,672
|
|
Synopsys, Inc. (b)
|
35,090
|
16,102,450
|
|
Teradata Corp. (b)
|
541,936
|
25,075,379
|
|
Unity Software, Inc. (b)
|
48,853
|
1,810,981
|
|
Workday, Inc. Class A (b)
|
18,735
|
4,580,708
|
|
Zoom Video Communications, Inc. Class A (b)
|
139,842
|
9,932,977
|
|
133,559,660
|
|||
Technology Hardware, Storage & Peripherals - 0.4%
|
|||
NetApp, Inc.
|
240,940
|
18,480,098
|
|
Pure Storage, Inc. Class A (b)
|
117,993
|
4,317,364
|
|
22,797,462
|
|||
TOTAL INFORMATION TECHNOLOGY
|
547,213,021
|
||
MATERIALS - 4.5%
|
|||
Chemicals - 2.1%
|
|||
Air Products & Chemicals, Inc.
|
59,265
|
17,512,215
|
|
Avient Corp.
|
24,154
|
968,817
|
|
CF Industries Holdings, Inc.
|
131,420
|
10,128,539
|
|
Corteva, Inc.
|
307,574
|
15,535,563
|
|
Eastman Chemical Co.
|
214,920
|
18,270,349
|
|
Ecolab, Inc.
|
69,725
|
12,816,152
|
|
Ginkgo Bioworks Holdings, Inc. Class A (a)(b)
|
758,826
|
1,775,653
|
|
Linde PLC
|
72,884
|
28,209,023
|
|
PPG Industries, Inc.
|
35,663
|
5,055,587
|
|
Sherwin-Williams Co.
|
22,947
|
6,235,159
|
|
The Chemours Co. LLC
|
53,733
|
1,827,997
|
|
118,335,054
|
|||
Construction Materials - 0.7%
|
|||
Eagle Materials, Inc.
|
24,985
|
4,730,160
|
|
Martin Marietta Materials, Inc.
|
25,052
|
11,183,463
|
|
Vulcan Materials Co.
|
89,920
|
19,625,040
|
|
35,538,663
|
|||
Containers & Packaging - 0.7%
|
|||
Graphic Packaging Holding Co.
|
133,310
|
2,964,814
|
|
Sealed Air Corp.
|
199,207
|
7,382,611
|
|
WestRock Co.
|
798,830
|
26,129,729
|
|
36,477,154
|
|||
Metals & Mining - 1.0%
|
|||
Commercial Metals Co.
|
59,344
|
3,340,474
|
|
Newmont Corp.
|
108,296
|
4,269,028
|
|
Nucor Corp.
|
247,159
|
42,536,064
|
|
Steel Dynamics, Inc.
|
36,859
|
3,928,801
|
|
Worthington Industries, Inc.
|
31,758
|
2,390,425
|
|
56,464,792
|
|||
TOTAL MATERIALS
|
246,815,663
|
||
REAL ESTATE - 4.8%
|
|||
Equity Real Estate Investment Trusts (REITs) - 4.5%
|
|||
American Homes 4 Rent Class A
|
366,710
|
13,216,228
|
|
American Tower Corp.
|
82,683
|
14,992,082
|
|
Apartment Income (REIT) Corp.
|
225,095
|
7,666,736
|
|
AvalonBay Communities, Inc.
|
15,815
|
2,907,113
|
|
Crown Castle International Corp.
|
317,043
|
31,862,822
|
|
EastGroup Properties, Inc.
|
2,650
|
476,020
|
|
EPR Properties
|
34,114
|
1,527,625
|
|
Equity Residential (SBI)
|
85,917
|
5,569,999
|
|
Extra Space Storage, Inc.
|
5,217
|
671,324
|
|
Federal Realty Investment Trust (SBI)
|
67,214
|
6,582,939
|
|
Gaming & Leisure Properties
|
63,028
|
2,987,527
|
|
Healthpeak Properties, Inc.
|
266,978
|
5,494,407
|
|
Highwoods Properties, Inc. (SBI)
|
308,491
|
7,351,341
|
|
Invitation Homes, Inc.
|
975,778
|
33,264,272
|
|
Kilroy Realty Corp.
|
29,803
|
1,101,221
|
|
Mid-America Apartment Communities, Inc.
|
75,408
|
10,951,504
|
|
NNN (REIT), Inc.
|
237,692
|
9,362,688
|
|
Park Hotels & Resorts, Inc.
|
559,577
|
7,179,373
|
|
Prologis (REIT), Inc.
|
33,866
|
4,206,157
|
|
Public Storage
|
92,132
|
25,463,442
|
|
Rexford Industrial Realty, Inc.
|
91,945
|
4,916,299
|
|
SBA Communications Corp. Class A
|
61,481
|
13,804,329
|
|
Simon Property Group, Inc.
|
130,973
|
14,864,126
|
|
Spirit Realty Capital, Inc.
|
84,672
|
3,269,186
|
|
Terreno Realty Corp.
|
145,502
|
8,859,617
|
|
UDR, Inc.
|
112,288
|
4,480,291
|
|
VICI Properties, Inc.
|
132,636
|
4,090,494
|
|
Weyerhaeuser Co.
|
79,005
|
2,587,414
|
|
249,706,576
|
|||
Real Estate Management & Development - 0.3%
|
|||
Zillow Group, Inc.:
|
|||
Class A (b)
|
73,238
|
3,729,279
|
|
Class C (b)
|
218,106
|
11,376,409
|
|
15,105,688
|
|||
TOTAL REAL ESTATE
|
264,812,264
|
||
UTILITIES - 2.6%
|
|||
Electric Utilities - 1.5%
|
|||
Allete, Inc.
|
54,586
|
2,996,771
|
|
Duke Energy Corp.
|
124,245
|
11,032,956
|
|
Entergy Corp.
|
29,107
|
2,772,442
|
|
Evergy, Inc.
|
22,115
|
1,215,662
|
|
Hawaiian Electric Industries, Inc.
|
42,785
|
599,846
|
|
NextEra Energy, Inc.
|
580,504
|
38,777,667
|
|
OGE Energy Corp.
|
104,576
|
3,560,813
|
|
Pinnacle West Capital Corp.
|
14,337
|
1,107,820
|
|
Xcel Energy, Inc.
|
391,431
|
22,362,453
|
|
84,426,430
|
|||
Gas Utilities - 0.2%
|
|||
National Fuel Gas Co.
|
75,023
|
4,031,736
|
|
UGI Corp.
|
118,269
|
2,978,013
|
|
7,009,749
|
|||
Independent Power and Renewable Electricity Producers - 0.2%
|
|||
Brookfield Renewable Corp.
|
53,386
|
1,492,139
|
|
Clearway Energy, Inc.:
|
|||
Class A
|
46,164
|
1,082,084
|
|
Class C
|
152,172
|
3,769,300
|
|
Vistra Corp.
|
192,513
|
6,048,758
|
|
12,392,281
|
|||
Multi-Utilities - 0.7%
|
|||
Black Hills Corp.
|
67,890
|
3,733,950
|
|
Consolidated Edison, Inc.
|
98,222
|
8,737,829
|
|
NiSource, Inc.
|
425,254
|
11,379,797
|
|
Public Service Enterprise Group, Inc.
|
235,570
|
14,388,616
|
|
38,240,192
|
|||
TOTAL UTILITIES
|
142,068,652
|
||
|
TOTAL COMMON STOCKS
(Cost $4,777,819,942)
|
5,501,157,566
|
||
Money Market Funds - 3.0%
|
|||
Shares
|
Value ($)
|
||
Fidelity Cash Central Fund 5.43% (c)
|
155,185,077
|
155,216,114
|
|
Fidelity Securities Lending Cash Central Fund 5.44% (c)(d)
|
13,095,079
|
13,096,389
|
|
|
TOTAL MONEY MARKET FUNDS
(Cost $168,312,503)
|
168,312,503
|
||
|
TOTAL INVESTMENT IN SECURITIES - 102.5%
(Cost $4,946,132,445)
|
5,669,470,069
|
NET OTHER ASSETS (LIABILITIES) - (2.5)%
|
(137,705,741)
|
NET ASSETS - 100.0%
|
5,531,764,328
|
Futures Contracts
|
|||||
Number
of contracts
|
Expiration
Date
|
Notional
Amount ($)
|
Value ($)
|
Unrealized
Appreciation/
(Depreciation) ($)
|
|
Purchased
|
|||||
Equity Index Contracts
|
|||||
CME E-mini S&P 500 Index Contracts (United States)
|
65
|
Sep 2023
|
14,677,000
|
540,701
|
540,701
|
The notional amount of futures purchased as a percentage of Net Assets is 0.3%
|
|||||
Legend
(a)
|
Security or a portion of the security is on loan at period end.
|
(b)
|
Non-income producing
|
(c)
|
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
|
(d)
|
Investment made with cash collateral received from securities on loan.
|
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate
|
Value,
beginning
of period ($)
|
Purchases ($)
|
Sales
Proceeds ($)
|
Dividend
Income ($)
|
Realized
Gain (loss) ($)
|
Change in
Unrealized
appreciation
(depreciation) ($)
|
Value,
end
of period ($)
|
% ownership,
end
of period
|
Fidelity Cash Central Fund 5.43%
|
8,770,543
|
839,840,159
|
693,394,588
|
1,677,853
|
-
|
-
|
155,216,114
|
0.4%
|
Fidelity Securities Lending Cash Central Fund 5.44%
|
51,168,351
|
615,567,234
|
653,639,196
|
193,813
|
-
|
-
|
13,096,389
|
0.0%
|
Total
|
59,938,894
|
1,455,407,393
|
1,347,033,784
|
1,871,666
|
-
|
-
|
168,312,503
|
|
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2023, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date:
|
||||
Description
|
Total ($)
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Investments in Securities:
|
||||
Equities:
|
||||
Communication Services
|
226,414,347
|
226,414,347
|
-
|
-
|
Consumer Discretionary
|
363,528,518
|
363,528,518
|
-
|
-
|
Consumer Staples
|
417,735,772
|
417,735,772
|
-
|
-
|
Energy
|
439,372,325
|
439,372,325
|
-
|
-
|
Financials
|
1,140,677,557
|
1,140,677,557
|
-
|
-
|
Health Care
|
882,418,235
|
882,418,235
|
-
|
-
|
Industrials
|
830,101,212
|
830,101,212
|
-
|
-
|
Information Technology
|
547,213,021
|
547,213,021
|
-
|
-
|
Materials
|
246,815,663
|
246,815,663
|
-
|
-
|
Real Estate
|
264,812,264
|
264,812,264
|
-
|
-
|
Utilities
|
142,068,652
|
142,068,652
|
-
|
-
|
Money Market Funds
|
168,312,503
|
168,312,503
|
-
|
-
|
Total Investments in Securities:
|
5,669,470,069
|
5,669,470,069
|
-
|
-
|
Derivative Instruments:
|
||||
Assets
|
||||
Futures Contracts
|
540,701
|
540,701
|
-
|
-
|
Total Assets
|
540,701
|
540,701
|
-
|
-
|
Total Derivative Instruments:
|
540,701
|
540,701
|
-
|
-
|
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of August 31, 2023. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type
|
Value
|
|
Asset ($)
|
Liability ($)
|
|
Equity Risk
|
||
Futures Contracts (a)
|
540,701
|
0
|
Total Equity Risk
|
540,701
|
0
|
Total Value of Derivatives
|
540,701
|
0
|
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
Fidelity® Large Cap Value Enhanced Index Fund
Statement of Assets and Liabilities
|
||||
August 31, 2023
|
||||
Assets
|
||||
Investment in securities, at value (including securities loaned of $12,549,124) - See accompanying schedule:
|
||||
Unaffiliated issuers (cost $4,777,819,942)
|
$
|
5,501,157,566
|
||
Fidelity Central Funds (cost $168,312,503)
|
168,312,503
|
|||
Total Investment in Securities (cost $4,946,132,445)
|
$
|
5,669,470,069
|
||
Segregated cash with brokers for derivative instruments
|
7,705,600
|
|||
Receivable for investments sold
|
163,221,367
|
|||
Receivable for fund shares sold
|
2,261,245
|
|||
Dividends receivable
|
12,520,764
|
|||
Distributions receivable from Fidelity Central Funds
|
177,877
|
|||
Receivable for daily variation margin on futures contracts
|
63,335
|
|||
Other receivables
|
67,580
|
|||
Total assets
|
5,855,487,837
|
|||
Liabilities
|
||||
Payable for investments purchased
|
$
|
170,401,828
|
||
Payable for fund shares redeemed
|
138,424,457
|
|||
Accrued management fee
|
1,803,836
|
|||
Collateral on securities loaned
|
13,093,388
|
|||
Total Liabilities
|
323,723,509
|
|||
Net Assets
|
$
|
5,531,764,328
|
||
Net Assets consist of:
|
||||
Paid in capital
|
$
|
4,690,660,336
|
||
Total accumulated earnings (loss)
|
841,103,992
|
|||
Net Assets
|
$
|
5,531,764,328
|
||
Net Asset Value, offering price and redemption price per share ($5,531,764,328 ÷ 367,307,367 shares)
|
$
|
15.06
|
||
Statement of Operations
|
||||
Year ended
August 31, 2023
|
||||
Investment Income
|
||||
Dividends
|
$
|
123,931,441
|
||
Interest
|
78,834
|
|||
Income from Fidelity Central Funds (including $193,813 from security lending)
|
1,871,666
|
|||
Total Income
|
125,881,941
|
|||
Expenses
|
||||
Management fee
|
$
|
21,604,951
|
||
Independent trustees' fees and expenses
|
30,662
|
|||
Interest
|
29,724
|
|||
Total expenses before reductions
|
21,665,337
|
|||
Expense reductions
|
(1,773)
|
|||
Total expenses after reductions
|
21,663,564
|
|||
Net Investment income (loss)
|
104,218,377
|
|||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
87,781,805
|
|||
Redemptions in-kind
|
117,706,408
|
|||
Futures contracts
|
3,530,011
|
|||
Total net realized gain (loss)
|
209,018,224
|
|||
Change in net unrealized appreciation (depreciation) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
129,900,340
|
|||
Futures contracts
|
513,598
|
|||
Total change in net unrealized appreciation (depreciation)
|
130,413,938
|
|||
Net gain (loss)
|
339,432,162
|
|||
Net increase (decrease) in net assets resulting from operations
|
$
|
443,650,539
|
||
Statement of Changes in Net Assets
|
||||
Year ended
August 31, 2023
|
Year ended
August 31, 2022
|
|||
Increase (Decrease) in Net Assets
|
||||
Operations
|
||||
Net investment income (loss)
|
$
|
104,218,377
|
$
|
109,310,484
|
Net realized gain (loss)
|
209,018,224
|
269,166,406
|
||
Change in net unrealized appreciation (depreciation)
|
130,413,938
|
(702,930,899)
|
||
Net increase (decrease) in net assets resulting from operations
|
443,650,539
|
(324,454,009)
|
||
Distributions to shareholders
|
(257,200,574)
|
(697,082,541)
|
||
Share transactions
|
||||
Proceeds from sales of shares
|
817,757,697
|
1,055,115,905
|
||
Reinvestment of distributions
|
243,302,994
|
669,849,842
|
||
Cost of shares redeemed
|
(1,407,138,550)
|
(1,199,545,360)
|
||
Net increase (decrease) in net assets resulting from share transactions
|
(346,077,859)
|
525,420,387
|
||
Total increase (decrease) in net assets
|
(159,627,894)
|
(496,116,163)
|
||
Net Assets
|
||||
Beginning of period
|
5,691,392,222
|
6,187,508,385
|
||
End of period
|
$
|
5,531,764,328
|
$
|
5,691,392,222
|
Other Information
|
||||
Shares
|
||||
Sold
|
56,058,366
|
67,688,693
|
||
Issued in reinvestment of distributions
|
16,907,783
|
42,939,093
|
||
Redeemed
|
(96,852,853)
|
(77,436,714)
|
||
Net increase (decrease)
|
(23,886,704)
|
33,191,072
|
||
Financial Highlights
Fidelity® Large Cap Value Enhanced Index Fund
|
Years ended August 31,
|
2023
|
2022
|
2021
|
2020
|
2019
|
|||||
Selected Per-Share Data
|
||||||||||
Net asset value, beginning of period
|
$
|
14.55
|
$
|
17.28
|
$
|
12.63
|
$
|
12.81
|
$
|
13.81
|
Income from Investment Operations
|
||||||||||
Net investment income (loss) A,B
|
.27
|
.28
|
.25
|
.28
|
.30
|
|||||
Net realized and unrealized gain (loss)
|
.91
|
(1.04)
|
4.63
|
- C
|
(.46)
|
|||||
Total from investment operations
|
1.18
|
(.76)
|
4.88
|
.28
|
(.16)
|
|||||
Distributions from net investment income
|
(.22)
|
(.33) D
|
(.23)
|
(.29)
|
(.31)
|
|||||
Distributions from net realized gain
|
(.45)
|
(1.64) D
|
-
|
(.17)
|
(.54)
|
|||||
Total distributions
|
(.67)
|
(1.97)
|
(.23)
|
(.46)
|
(.84) E
|
|||||
Net asset value, end of period
|
$
|
15.06
|
$
|
14.55
|
$
|
17.28
|
$
|
12.63
|
$
|
12.81
|
Total Return F
|
8.30%
|
(5.18)%
|
39.12%
|
1.95%
|
(.77)%
|
|||||
Ratios to Average Net Assets B,G,H
|
||||||||||
Expenses before reductions
|
.39%
|
.39%
|
.39%
|
.39%
|
.39%
|
|||||
Expenses net of fee waivers, if any
|
.39%
|
.39%
|
.39%
|
.39%
|
.39%
|
|||||
Expenses net of all reductions
|
.39%
|
.39%
|
.39%
|
.39%
|
.39%
|
|||||
Net investment income (loss)
|
1.88%
|
1.76%
|
1.65%
|
2.21%
|
2.37%
|
|||||
Supplemental Data
|
||||||||||
Net assets, end of period (000 omitted)
|
$
|
5,531,764
|
$
|
5,691,392
|
$
|
6,187,508
|
$
|
3,887,139
|
$
|
3,757,353
|
Portfolio turnover rate I
|
88% J
|
112%
|
75%
|
81%
|
94%
|
ACalculated based on average shares outstanding during the period.
BNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
CAmount represents less than $.005 per share.
DThe amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
ETotal distributions per share do not sum due to rounding.
FTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
GFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
IAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
JPortfolio turnover rate excludes securities received or delivered in-kind.
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
|
|||
Periods ended August 31, 2023
|
Past 1
year
|
Past 5
years
|
Past 10
years
|
Fidelity® Large Cap Core Enhanced Index Fund
|
15.01%
|
11.07%
|
12.62%
|
$10,000 Over 10 Years
|
Let's say hypothetically that $10,000 was invested in Fidelity® Large Cap Core Enhanced Index Fund on August 31, 2013.
The chart shows how the value of your investment would have changed, and also shows how the S&P 500® Index performed over the same period.
|
|
Fidelity® Large Cap Core Enhanced Index Fund
Market Recap:
U.S. equities gained 15.94% for the 12 months ending August 31, 2023, according to the S&P 500® index, as continued global economic expansion, falling commodity prices and a slowing in the pace of inflation provided a favorable backdrop for higher-risk assets. Large-cap stocks spearheaded the rally, which was driven by the shares of a narrow set of mega-cap companies in the information technology and communication services sectors, largely due to exuberance related to generative artificial intelligence. Aggressive monetary tightening by the U.S. Federal Reserve continued amid consistent pressure on core inflation, a measure that excludes food and energy. Since March 2022, the Fed has hiked its benchmark interest rate 11 times. The latest bump came in late July, a fourth consecutive raise of a stepped down 25 basis points. The S&P 500® gained 3.21% in July but snapped a five-month rally in August (-1.59%), held back by softness in manufacturing and jobs. Still, U.S. stocks ended August up 18.73% year to date. For the full 12 months, value (+17%) topped growth (+13%) within the index. By sector, information technology (+35%) led by a wide margin, followed by communication services (+26%). In contrast, the defensive utilities sector (-13%) lagged most, as climbing yields offered investors better returns elsewhere. Real estate returned about -7%, hampered by high borrowing costs and low home inventory.
Comments from Senior Portfolio Manager Maximilian Kaufmann of the Fidelity Systematic Equity Strategies portfolio management team:
For the fiscal year ending August 31, 2023, the fund gained 15.01%, versus 15.94% for the benchmark S&P 500® index. Relative to the benchmark, security selection was the primary detractor, especially within the health care sector. The biggest detractor from performance versus the benchmark was stock picking in industrials. Also hurting our result was stock selection in consumer discretionary and materials. The biggest individual relative detractor was an underweight in Nvidia (+227%). Owing to the stock's large allocation in the benchmark, Nvidia was one of the fund's largest holdings on August 31. The second-largest relative detractor was our non-benchmark stake in Hawaiian Electric Industries (-57%), a stock we no longer held at period end. An overweight in CVS Health (-31%) also detracted. In contrast, the biggest contributor to performance versus the benchmark was security selection in communication services. An underweight in utilities also boosted relative performance. Also lifting the fund's relative result were picks and an underweight in information technology. The top individual relative contributor was an overweight in Broadcom (+90%). A second notable relative contributor was an overweight in Meta Platforms (+79%). Meta Platforms was among our biggest holdings. Another notable relative contributor was our stake in Palo Alto Networks (+30%). This period we increased our stake in Palo Alto Networks. Notable changes in positioning include lower allocations to the utilities and consumer staples sectors.
Note to shareholders:
In June 2023, the Board of Trustees approved the conversion of Fidelity's Enhanced Index Funds into exchange-traded funds, a move deemed in the best interest of shareholders. Each new ETF and its former corresponding fund will have identical investment objectives and fundamental investment policies and have substantially similar investment strategies. Fidelity believes that the conversion will provide multiple benefits for investors of the Funds, including lower net expenses, additional trading flexibility, increased portfolio holdings transparency and the potential for enhanced tax efficiency. The Fund conversions are expected to be conducted in November 2023. For more information, please refer to the Funds' prospectus supplements or visit us online.
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. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a 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® Large Cap Core Enhanced Index Fund
Top Holdings (% of Fund's net assets)
|
||
Apple, Inc.
|
7.5
|
|
Microsoft Corp.
|
6.1
|
|
NVIDIA Corp.
|
3.3
|
|
Amazon.com, Inc.
|
2.8
|
|
Alphabet, Inc. Class C
|
2.4
|
|
Tesla, Inc.
|
2.4
|
|
Berkshire Hathaway, Inc. Class B
|
2.2
|
|
Alphabet, Inc. Class A
|
2.1
|
|
Meta Platforms, Inc. Class A
|
1.9
|
|
UnitedHealth Group, Inc.
|
1.7
|
|
32.4
|
||
Market Sectors (% of Fund's net assets)
|
||
Information Technology
|
28.1
|
|
Health Care
|
14.1
|
|
Financials
|
12.4
|
|
Consumer Discretionary
|
11.2
|
|
Industrials
|
10.1
|
|
Communication Services
|
9.3
|
|
Consumer Staples
|
5.2
|
|
Energy
|
4.2
|
|
Materials
|
1.8
|
|
Real Estate
|
1.7
|
|
Utilities
|
0.2
|
|
Asset Allocation (% of Fund's net assets)
|
|
Futures - 1.3%
|
Fidelity® Large Cap Core Enhanced Index Fund
Showing Percentage of Net Assets
Common Stocks - 98.3%
|
|||
Shares
|
Value ($)
|
||
COMMUNICATION SERVICES - 9.3%
|
|||
Diversified Telecommunication Services - 0.1%
|
|||
AT&T, Inc.
|
178,286
|
2,636,850
|
|
Entertainment - 1.4%
|
|||
Activision Blizzard, Inc.
|
12,777
|
1,175,356
|
|
Electronic Arts, Inc.
|
96,692
|
11,601,106
|
|
Netflix, Inc. (a)
|
33,754
|
14,638,435
|
|
Spotify Technology SA (a)
|
11,500
|
1,770,655
|
|
29,185,552
|
|||
Interactive Media & Services - 6.4%
|
|||
Alphabet, Inc.:
|
|||
Class A (a)
|
318,804
|
43,411,541
|
|
Class C (a)
|
355,679
|
48,852,511
|
|
Meta Platforms, Inc. Class A (a)
|
128,009
|
37,876,583
|
|
130,140,635
|
|||
Media - 1.4%
|
|||
Charter Communications, Inc. Class A (a)
|
15,513
|
6,796,556
|
|
Comcast Corp. Class A
|
451,482
|
21,111,298
|
|
TEGNA, Inc.
|
68,607
|
1,134,074
|
|
29,041,928
|
|||
TOTAL COMMUNICATION SERVICES
|
191,004,965
|
||
CONSUMER DISCRETIONARY - 11.2%
|
|||
Automobiles - 3.2%
|
|||
Ford Motor Co.
|
1,044,739
|
12,672,684
|
|
General Motors Co.
|
147,345
|
4,937,531
|
|
Tesla, Inc. (a)
|
186,294
|
48,078,756
|
|
65,688,971
|
|||
Broadline Retail - 2.9%
|
|||
Amazon.com, Inc. (a)
|
418,109
|
57,703,223
|
|
Etsy, Inc. (a)
|
27,194
|
2,000,663
|
|
59,703,886
|
|||
Distributors - 0.1%
|
|||
Genuine Parts Co.
|
12,202
|
1,875,813
|
|
Diversified Consumer Services - 0.0%
|
|||
H&R Block, Inc.
|
23,740
|
949,125
|
|
Hotels, Restaurants & Leisure - 1.7%
|
|||
Airbnb, Inc. Class A (a)
|
71,194
|
9,365,571
|
|
Booking Holdings, Inc. (a)
|
1,993
|
6,188,325
|
|
Chipotle Mexican Grill, Inc. (a)
|
1,208
|
2,327,381
|
|
McDonald's Corp.
|
43,010
|
12,092,262
|
|
Starbucks Corp.
|
44,230
|
4,309,771
|
|
34,283,310
|
|||
Household Durables - 0.8%
|
|||
D.R. Horton, Inc.
|
3,323
|
395,503
|
|
NVR, Inc. (a)
|
800
|
5,101,864
|
|
Toll Brothers, Inc.
|
16,619
|
1,361,595
|
|
TopBuild Corp. (a)
|
29,534
|
8,567,223
|
|
15,426,185
|
|||
Specialty Retail - 2.4%
|
|||
Murphy U.S.A., Inc.
|
4,684
|
1,487,826
|
|
O'Reilly Automotive, Inc. (a)
|
6,026
|
5,662,632
|
|
The Home Depot, Inc.
|
84,723
|
27,984,007
|
|
TJX Companies, Inc.
|
50,780
|
4,696,134
|
|
Ulta Beauty, Inc. (a)
|
21,422
|
8,890,773
|
|
48,721,372
|
|||
Textiles, Apparel & Luxury Goods - 0.1%
|
|||
Crocs, Inc. (a)
|
25,792
|
2,510,593
|
|
TOTAL CONSUMER DISCRETIONARY
|
229,159,255
|
||
CONSUMER STAPLES - 5.2%
|
|||
Beverages - 1.3%
|
|||
PepsiCo, Inc.
|
24,577
|
4,372,740
|
|
The Coca-Cola Co.
|
381,541
|
22,827,598
|
|
27,200,338
|
|||
Consumer Staples Distribution & Retail - 1.0%
|
|||
Costco Wholesale Corp.
|
7,577
|
4,161,895
|
|
Walmart, Inc.
|
99,913
|
16,246,853
|
|
20,408,748
|
|||
Food Products - 1.5%
|
|||
Archer Daniels Midland Co.
|
44,946
|
3,564,218
|
|
Mondelez International, Inc.
|
216,618
|
15,436,199
|
|
The Kraft Heinz Co.
|
340,521
|
11,267,840
|
|
30,268,257
|
|||
Household Products - 1.4%
|
|||
Colgate-Palmolive Co.
|
97,903
|
7,192,933
|
|
Kimberly-Clark Corp.
|
65,252
|
8,406,415
|
|
Procter & Gamble Co.
|
86,473
|
13,346,243
|
|
28,945,591
|
|||
TOTAL CONSUMER STAPLES
|
106,822,934
|
||
ENERGY - 4.2%
|
|||
Energy Equipment & Services - 0.0%
|
|||
Weatherford International PLC (a)
|
1,568
|
138,799
|
|
Oil, Gas & Consumable Fuels - 4.2%
|
|||
Chevron Corp.
|
158,120
|
25,473,132
|
|
ConocoPhillips Co.
|
103,528
|
12,322,938
|
|
EOG Resources, Inc.
|
108,399
|
13,942,279
|
|
Exxon Mobil Corp.
|
269,844
|
30,003,954
|
|
Occidental Petroleum Corp. warrants 8/3/27 (a)
|
9,120
|
372,552
|
|
ONEOK, Inc.
|
16,146
|
1,052,719
|
|
Pioneer Natural Resources Co.
|
2,681
|
637,890
|
|
Texas Pacific Land Corp. (b)
|
1,000
|
1,884,750
|
|
85,690,214
|
|||
TOTAL ENERGY
|
85,829,013
|
||
FINANCIALS - 12.4%
|
|||
Banks - 2.9%
|
|||
Bank of America Corp.
|
693,889
|
19,893,798
|
|
East West Bancorp, Inc.
|
31,771
|
1,758,207
|
|
JPMorgan Chase & Co.
|
225,755
|
33,034,729
|
|
U.S. Bancorp
|
24,716
|
902,875
|
|
Wells Fargo & Co.
|
118,849
|
4,907,275
|
|
60,496,884
|
|||
Capital Markets - 2.1%
|
|||
Bank of New York Mellon Corp.
|
34,764
|
1,559,861
|
|
Charles Schwab Corp.
|
253,308
|
14,983,168
|
|
Goldman Sachs Group, Inc.
|
21,892
|
7,174,227
|
|
LPL Financial
|
13,149
|
3,032,028
|
|
NASDAQ, Inc.
|
224,612
|
11,787,638
|
|
SEI Investments Co.
|
56,949
|
3,534,255
|
|
Stifel Financial Corp.
|
19,073
|
1,240,126
|
|
43,311,303
|
|||
Consumer Finance - 0.2%
|
|||
Synchrony Financial
|
148,526
|
4,794,419
|
|
Financial Services - 5.4%
|
|||
Berkshire Hathaway, Inc. Class B (a)
|
125,620
|
45,248,324
|
|
Essent Group Ltd.
|
5,500
|
276,210
|
|
Fidelity National Information Services, Inc.
|
150,883
|
8,428,324
|
|
MasterCard, Inc. Class A
|
71,246
|
29,398,949
|
|
MGIC Investment Corp.
|
188,916
|
3,321,143
|
|
PayPal Holdings, Inc. (a)
|
198,492
|
12,407,735
|
|
Visa, Inc. Class A
|
43,160
|
10,603,549
|
|
109,684,234
|
|||
Insurance - 1.8%
|
|||
Brown & Brown, Inc.
|
135,631
|
10,050,257
|
|
Hartford Financial Services Group, Inc.
|
82,671
|
5,937,431
|
|
MetLife, Inc.
|
157,169
|
9,955,084
|
|
Progressive Corp.
|
10,246
|
1,367,534
|
|
The Travelers Companies, Inc.
|
57,189
|
9,220,582
|
|
36,530,888
|
|||
TOTAL FINANCIALS
|
254,817,728
|
||
HEALTH CARE - 14.1%
|
|||
Biotechnology - 2.4%
|
|||
AbbVie, Inc.
|
32,062
|
4,711,832
|
|
Amgen, Inc.
|
33,345
|
8,547,657
|
|
Exelixis, Inc. (a)
|
364,124
|
8,152,736
|
|
Gilead Sciences, Inc.
|
200,512
|
15,335,158
|
|
Incyte Corp. (a)
|
162,110
|
10,460,958
|
|
United Therapeutics Corp. (a)
|
5,902
|
1,324,173
|
|
48,532,514
|
|||
Health Care Equipment & Supplies - 1.9%
|
|||
Abbott Laboratories
|
192,093
|
19,766,370
|
|
Align Technology, Inc. (a)
|
7,858
|
2,908,560
|
|
Hologic, Inc. (a)
|
25,756
|
1,925,003
|
|
Lantheus Holdings, Inc. (a)
|
38,965
|
2,666,765
|
|
Zimmer Biomet Holdings, Inc.
|
95,918
|
11,425,752
|
|
Zimvie, Inc. (a)
|
18,157
|
214,253
|
|
38,906,703
|
|||
Health Care Providers & Services - 4.7%
|
|||
Centene Corp. (a)
|
188,035
|
11,592,358
|
|
Cigna Group
|
20,227
|
5,587,911
|
|
CVS Health Corp.
|
180,582
|
11,768,529
|
|
Elevance Health, Inc.
|
34,556
|
15,274,098
|
|
HCA Holdings, Inc.
|
18,843
|
5,225,164
|
|
Humana, Inc.
|
28,762
|
13,277,402
|
|
McKesson Corp.
|
2,093
|
862,986
|
|
UnitedHealth Group, Inc.
|
71,475
|
34,063,556
|
|
97,652,004
|
|||
Life Sciences Tools & Services - 0.3%
|
|||
Danaher Corp.
|
10,493
|
2,780,645
|
|
Syneos Health, Inc. (a)
|
62,895
|
2,687,503
|
|
Thermo Fisher Scientific, Inc.
|
1,395
|
777,155
|
|
6,245,303
|
|||
Pharmaceuticals - 4.8%
|
|||
Bristol-Myers Squibb Co.
|
101,462
|
6,255,132
|
|
Eli Lilly & Co.
|
28,681
|
15,895,010
|
|
Johnson & Johnson
|
186,705
|
30,186,464
|
|
Merck & Co., Inc.
|
228,711
|
24,924,925
|
|
Pfizer, Inc.
|
580,266
|
20,529,811
|
|
97,791,342
|
|||
TOTAL HEALTH CARE
|
289,127,866
|
||
INDUSTRIALS - 10.1%
|
|||
Aerospace & Defense - 1.7%
|
|||
General Dynamics Corp.
|
33,891
|
7,681,056
|
|
L3Harris Technologies, Inc.
|
23,106
|
4,114,948
|
|
Lockheed Martin Corp.
|
25,428
|
11,400,644
|
|
Textron, Inc.
|
109,069
|
8,475,752
|
|
The Boeing Co. (a)
|
14,228
|
3,187,499
|
|
34,859,899
|
|||
Building Products - 0.1%
|
|||
Johnson Controls International PLC
|
22,574
|
1,333,220
|
|
Trane Technologies PLC
|
3,668
|
752,894
|
|
2,086,114
|
|||
Commercial Services & Supplies - 1.2%
|
|||
Cintas Corp.
|
25,338
|
12,774,659
|
|
Republic Services, Inc.
|
80,895
|
11,659,396
|
|
24,434,055
|
|||
Construction & Engineering - 0.3%
|
|||
Valmont Industries, Inc.
|
24,878
|
6,306,573
|
|
Electrical Equipment - 1.3%
|
|||
AMETEK, Inc.
|
76,977
|
12,278,601
|
|
Emerson Electric Co.
|
143,445
|
14,093,471
|
|
EnerSys
|
14,654
|
1,538,377
|
|
27,910,449
|
|||
Ground Transportation - 2.2%
|
|||
CSX Corp.
|
429,024
|
12,956,525
|
|
Norfolk Southern Corp.
|
25,536
|
5,235,135
|
|
Uber Technologies, Inc. (a)
|
179,412
|
8,473,629
|
|
Union Pacific Corp.
|
80,907
|
17,845,657
|
|
44,510,946
|
|||
Industrial Conglomerates - 0.5%
|
|||
3M Co.
|
90,770
|
9,682,436
|
|
Machinery - 1.9%
|
|||
AGCO Corp.
|
19,937
|
2,582,440
|
|
Allison Transmission Holdings, Inc.
|
58,127
|
3,513,777
|
|
Caterpillar, Inc.
|
63,677
|
17,901,515
|
|
Deere & Co.
|
16,741
|
6,879,547
|
|
PACCAR, Inc.
|
98,683
|
8,120,624
|
|
38,997,903
|
|||
Passenger Airlines - 0.7%
|
|||
American Airlines Group, Inc. (a)
|
466,162
|
6,866,566
|
|
United Airlines Holdings, Inc. (a)
|
157,557
|
7,847,914
|
|
14,714,480
|
|||
Professional Services - 0.1%
|
|||
Leidos Holdings, Inc.
|
21,855
|
2,131,081
|
|
Trading Companies & Distributors - 0.1%
|
|||
W.W. Grainger, Inc.
|
2,098
|
1,498,266
|
|
TOTAL INDUSTRIALS
|
207,132,202
|
||
INFORMATION TECHNOLOGY - 28.1%
|
|||
Communications Equipment - 1.3%
|
|||
Cisco Systems, Inc.
|
413,840
|
23,733,724
|
|
Juniper Networks, Inc.
|
80,785
|
2,352,459
|
|
26,086,183
|
|||
Electronic Equipment, Instruments & Components - 0.1%
|
|||
Belden, Inc.
|
2,900
|
272,310
|
|
Keysight Technologies, Inc. (a)
|
17,534
|
2,337,282
|
|
2,609,592
|
|||
IT Services - 1.3%
|
|||
Accenture PLC Class A
|
360
|
116,557
|
|
Gartner, Inc. (a)
|
18,755
|
6,558,248
|
|
GoDaddy, Inc. (a)
|
143,234
|
10,385,897
|
|
Wix.com Ltd. (a)
|
98,865
|
9,764,896
|
|
26,825,598
|
|||
Semiconductors & Semiconductor Equipment - 7.4%
|
|||
Applied Materials, Inc.
|
65,599
|
10,020,903
|
|
Broadcom, Inc.
|
34,695
|
32,019,669
|
|
Enphase Energy, Inc. (a)
|
3,081
|
389,839
|
|
Intel Corp.
|
534,486
|
18,781,838
|
|
KLA Corp.
|
3,421
|
1,716,897
|
|
Lam Research Corp.
|
2,704
|
1,899,290
|
|
Lattice Semiconductor Corp. (a)
|
12,885
|
1,253,195
|
|
NVIDIA Corp.
|
138,541
|
68,376,911
|
|
Qualcomm, Inc.
|
149,251
|
17,093,717
|
|
151,552,259
|
|||
Software - 10.1%
|
|||
Adobe, Inc. (a)
|
45,139
|
25,248,048
|
|
Autodesk, Inc. (a)
|
50,905
|
11,297,856
|
|
Microsoft Corp.
|
378,197
|
123,957,849
|
|
Palo Alto Networks, Inc. (a)
|
3,191
|
776,370
|
|
RingCentral, Inc. (a)
|
92,581
|
2,863,530
|
|
Salesforce, Inc. (a)
|
93,892
|
20,793,322
|
|
Synopsys, Inc. (a)
|
31,400
|
14,409,146
|
|
Teradata Corp. (a)
|
130,207
|
6,024,678
|
|
Zoom Video Communications, Inc. Class A (a)
|
11,779
|
836,662
|
|
206,207,461
|
|||
Technology Hardware, Storage & Peripherals - 7.9%
|
|||
Apple, Inc.
|
812,246
|
152,596,659
|
|
NetApp, Inc.
|
58,102
|
4,456,423
|
|
Pure Storage, Inc. Class A (a)
|
126,000
|
4,610,340
|
|
161,663,422
|
|||
TOTAL INFORMATION TECHNOLOGY
|
574,944,515
|
||
MATERIALS - 1.8%
|
|||
Chemicals - 0.8%
|
|||
CF Industries Holdings, Inc.
|
67,619
|
5,211,396
|
|
Ecolab, Inc.
|
29,374
|
5,399,235
|
|
Linde PLC
|
16,034
|
6,205,799
|
|
16,816,430
|
|||
Construction Materials - 0.1%
|
|||
Vulcan Materials Co.
|
13,002
|
2,837,687
|
|
Containers & Packaging - 0.2%
|
|||
Sealed Air Corp.
|
77,861
|
2,885,529
|
|
WestRock Co.
|
7,682
|
251,278
|
|
3,136,807
|
|||
Metals & Mining - 0.7%
|
|||
Nucor Corp.
|
77,601
|
13,355,132
|
|
Worthington Industries, Inc.
|
4,965
|
373,716
|
|
13,728,848
|
|||
TOTAL MATERIALS
|
36,519,772
|
||
REAL ESTATE - 1.7%
|
|||
Equity Real Estate Investment Trusts (REITs) - 1.7%
|
|||
American Tower Corp.
|
16,925
|
3,068,841
|
|
Invitation Homes, Inc.
|
176,493
|
6,016,646
|
|
Public Storage
|
36,680
|
10,137,618
|
|
Ryman Hospitality Properties, Inc.
|
91,947
|
7,818,253
|
|
SBA Communications Corp. Class A
|
13,030
|
2,925,626
|
|
Simon Property Group, Inc.
|
33,994
|
3,857,979
|
|
33,824,963
|
|||
UTILITIES - 0.2%
|
|||
Electric Utilities - 0.2%
|
|||
NextEra Energy, Inc.
|
21,881
|
1,461,651
|
|
Xcel Energy, Inc.
|
43,416
|
2,480,356
|
|
3,942,007
|
|||
Independent Power and Renewable Electricity Producers - 0.0%
|
|||
Brookfield Renewable Corp.
|
10,080
|
281,736
|
|
TOTAL UTILITIES
|
4,223,743
|
||
|
TOTAL COMMON STOCKS
(Cost $1,491,304,661)
|
2,013,406,956
|
||
Money Market Funds - 3.5%
|
|||
Shares
|
Value ($)
|
||
Fidelity Cash Central Fund 5.43% (c)
|
70,512,957
|
70,527,060
|
|
Fidelity Securities Lending Cash Central Fund 5.44% (c)(d)
|
1,386,911
|
1,387,050
|
|
|
TOTAL MONEY MARKET FUNDS
(Cost $71,914,110)
|
71,914,110
|
||
|
TOTAL INVESTMENT IN SECURITIES - 101.8%
(Cost $1,563,218,771)
|
2,085,321,066
|
NET OTHER ASSETS (LIABILITIES) - (1.8)%
|
(37,006,198)
|
NET ASSETS - 100.0%
|
2,048,314,868
|
Futures Contracts
|
|||||
Number
of contracts
|
Expiration
Date
|
Notional
Amount ($)
|
Value ($)
|
Unrealized
Appreciation/
(Depreciation) ($)
|
|
Purchased
|
|||||
Equity Index Contracts
|
|||||
CME E-mini S&P 500 Index Contracts (United States)
|
119
|
Sep 2023
|
26,870,200
|
510,449
|
510,449
|
The notional amount of futures purchased as a percentage of Net Assets is 1.3%
|
|||||
Legend
(a)
|
Non-income producing
|
(b)
|
Security or a portion of the security is on loan at period end.
|
(c)
|
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
|
(d)
|
Investment made with cash collateral received from securities on loan.
|
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate
|
Value,
beginning
of period ($)
|
Purchases ($)
|
Sales
Proceeds ($)
|
Dividend
Income ($)
|
Realized
Gain (loss) ($)
|
Change in
Unrealized
appreciation
(depreciation) ($)
|
Value,
end
of period ($)
|
% ownership,
end
of period
|
Fidelity Cash Central Fund 5.43%
|
91,438,262
|
398,663,485
|
419,574,687
|
1,185,153
|
35
|
(35)
|
70,527,060
|
0.2%
|
Fidelity Securities Lending Cash Central Fund 5.44%
|
-
|
74,944,767
|
73,557,717
|
43,997
|
-
|
-
|
1,387,050
|
0.0%
|
Total
|
91,438,262
|
473,608,252
|
493,132,404
|
1,229,150
|
35
|
(35)
|
71,914,110
|
|
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2023, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date:
|
||||
Description
|
Total ($)
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Investments in Securities:
|
||||
Equities:
|
||||
Communication Services
|
191,004,965
|
191,004,965
|
-
|
-
|
Consumer Discretionary
|
229,159,255
|
229,159,255
|
-
|
-
|
Consumer Staples
|
106,822,934
|
106,822,934
|
-
|
-
|
Energy
|
85,829,013
|
85,829,013
|
-
|
-
|
Financials
|
254,817,728
|
254,817,728
|
-
|
-
|
Health Care
|
289,127,866
|
289,127,866
|
-
|
-
|
Industrials
|
207,132,202
|
207,132,202
|
-
|
-
|
Information Technology
|
574,944,515
|
574,944,515
|
-
|
-
|
Materials
|
36,519,772
|
36,519,772
|
-
|
-
|
Real Estate
|
33,824,963
|
33,824,963
|
-
|
-
|
Utilities
|
4,223,743
|
4,223,743
|
-
|
-
|
Money Market Funds
|
71,914,110
|
71,914,110
|
-
|
-
|
Total Investments in Securities:
|
2,085,321,066
|
2,085,321,066
|
-
|
-
|
Derivative Instruments:
|
||||
Assets
|
||||
Futures Contracts
|
510,449
|
510,449
|
-
|
-
|
Total Assets
|
510,449
|
510,449
|
-
|
-
|
Total Derivative Instruments:
|
510,449
|
510,449
|
-
|
-
|
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of August 31, 2023. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type
|
Value
|
|
Asset ($)
|
Liability ($)
|
|
Equity Risk
|
||
Futures Contracts (a)
|
510,449
|
0
|
Total Equity Risk
|
510,449
|
0
|
Total Value of Derivatives
|
510,449
|
0
|
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
Fidelity® Large Cap Core Enhanced Index Fund
Statement of Assets and Liabilities
|
||||
August 31, 2023
|
||||
Assets
|
||||
Investment in securities, at value (including securities loaned of $1,319,325) - See accompanying schedule:
|
||||
Unaffiliated issuers (cost $1,491,304,661)
|
$
|
2,013,406,956
|
||
Fidelity Central Funds (cost $71,914,110)
|
71,914,110
|
|||
Total Investment in Securities (cost $1,563,218,771)
|
$
|
2,085,321,066
|
||
Segregated cash with brokers for derivative instruments
|
3,483,200
|
|||
Receivable for investments sold
|
59,240,198
|
|||
Receivable for fund shares sold
|
1,248,507
|
|||
Dividends receivable
|
2,787,561
|
|||
Distributions receivable from Fidelity Central Funds
|
120,993
|
|||
Other receivables
|
19,663
|
|||
Total assets
|
2,152,221,188
|
|||
Liabilities
|
||||
Payable for investments purchased
|
$
|
58,436,495
|
||
Payable for fund shares redeemed
|
43,413,766
|
|||
Accrued management fee
|
658,421
|
|||
Payable for daily variation margin on futures contracts
|
10,588
|
|||
Collateral on securities loaned
|
1,387,050
|
|||
Total Liabilities
|
103,906,320
|
|||
Net Assets
|
$
|
2,048,314,868
|
||
Net Assets consist of:
|
||||
Paid in capital
|
$
|
1,561,358,411
|
||
Total accumulated earnings (loss)
|
486,956,457
|
|||
Net Assets
|
$
|
2,048,314,868
|
||
Net Asset Value, offering price and redemption price per share ($2,048,314,868 ÷ 97,590,726 shares)
|
$
|
20.99
|
||
Statement of Operations
|
||||
Year ended
August 31, 2023
|
||||
Investment Income
|
||||
Dividends
|
$
|
31,203,225
|
||
Interest
|
62,568
|
|||
Income from Fidelity Central Funds (including $43,997 from security lending)
|
1,229,150
|
|||
Total Income
|
32,494,943
|
|||
Expenses
|
||||
Management fee
|
$
|
7,651,709
|
||
Independent trustees' fees and expenses
|
10,392
|
|||
Interest
|
27,922
|
|||
Total expenses before reductions
|
7,690,023
|
|||
Expense reductions
|
(2,087)
|
|||
Total expenses after reductions
|
7,687,936
|
|||
Net Investment income (loss)
|
24,807,007
|
|||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
(34,334,099)
|
|||
Redemptions in-kind
|
23,998,066
|
|||
Fidelity Central Funds
|
35
|
|||
Futures contracts
|
6,711,576
|
|||
Total net realized gain (loss)
|
(3,624,422)
|
|||
Change in net unrealized appreciation (depreciation) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
223,701,589
|
|||
Fidelity Central Funds
|
(35)
|
|||
Futures contracts
|
(443,168)
|
|||
Total change in net unrealized appreciation (depreciation)
|
223,258,386
|
|||
Net gain (loss)
|
219,633,964
|
|||
Net increase (decrease) in net assets resulting from operations
|
$
|
244,440,971
|
||
Statement of Changes in Net Assets
|
||||
Year ended
August 31, 2023
|
Year ended
August 31, 2022
|
|||
Increase (Decrease) in Net Assets
|
||||
Operations
|
||||
Net investment income (loss)
|
$
|
24,807,007
|
$
|
19,467,302
|
Net realized gain (loss)
|
(3,624,422)
|
12,825,524
|
||
Change in net unrealized appreciation (depreciation)
|
223,258,386
|
(204,549,067)
|
||
Net increase (decrease) in net assets resulting from operations
|
244,440,971
|
(172,256,241)
|
||
Distributions to shareholders
|
(22,292,999)
|
(204,215,644)
|
||
Share transactions
|
||||
Proceeds from sales of shares
|
629,039,473
|
1,542,789,506
|
||
Reinvestment of distributions
|
18,530,259
|
176,281,500
|
||
Cost of shares redeemed
|
(1,283,514,169)
|
(389,268,600)
|
||
Net increase (decrease) in net assets resulting from share transactions
|
(635,944,437)
|
1,329,802,406
|
||
Total increase (decrease) in net assets
|
(413,796,465)
|
953,330,521
|
||
Net Assets
|
||||
Beginning of period
|
2,462,111,333
|
1,508,780,812
|
||
End of period
|
$
|
2,048,314,868
|
$
|
2,462,111,333
|
Other Information
|
||||
Shares
|
||||
Sold
|
33,210,795
|
79,739,464
|
||
Issued in reinvestment of distributions
|
1,043,371
|
8,430,488
|
||
Redeemed
|
(69,893,397)
|
(19,431,162)
|
||
Net increase (decrease)
|
(35,639,231)
|
68,738,790
|
||
Financial Highlights
Fidelity® Large Cap Core Enhanced Index Fund
|
Years ended August 31,
|
2023
|
2022
|
2021
|
2020
|
2019
|
|||||
Selected Per-Share Data
|
||||||||||
Net asset value, beginning of period
|
$
|
18.48
|
$
|
23.40
|
$
|
18.12
|
$
|
15.21
|
$
|
16.22
|
Income from Investment Operations
|
||||||||||
Net investment income (loss) A,B
|
.24
|
.24
|
.22
|
.24
|
.27
|
|||||
Net realized and unrealized gain (loss)
|
2.49
|
(2.08)
|
5.50
|
3.06
|
(.27)
|
|||||
Total from investment operations
|
2.73
|
(1.84)
|
5.72
|
3.30
|
-
|
|||||
Distributions from net investment income
|
(.15)
|
(.36) C
|
(.22)
|
(.26)
|
(.24)
|
|||||
Distributions from net realized gain
|
(.08)
|
(2.72) C
|
(.22)
|
(.13)
|
(.78)
|
|||||
Total distributions
|
(.22) D
|
(3.08)
|
(.44)
|
(.39)
|
(1.01) D
|
|||||
Net asset value, end of period
|
$
|
20.99
|
$
|
18.48
|
$
|
23.40
|
$
|
18.12
|
$
|
15.21
|
Total Return E
|
15.01%
|
(9.41)%
|
32.14%
|
21.97%
|
.65%
|
|||||
Ratios to Average Net Assets B,F,G
|
||||||||||
Expenses before reductions
|
.39%
|
.39%
|
.39%
|
.39%
|
.39%
|
|||||
Expenses net of fee waivers, if any
|
.39%
|
.39%
|
.39%
|
.39%
|
.39%
|
|||||
Expenses net of all reductions
|
.39%
|
.39%
|
.39%
|
.39%
|
.39%
|
|||||
Net investment income (loss)
|
1.26%
|
1.18%
|
1.09%
|
1.49%
|
1.81%
|
|||||
Supplemental Data
|
||||||||||
Net assets, end of period (000 omitted)
|
$
|
2,048,315
|
$
|
2,462,111
|
$
|
1,508,781
|
$
|
1,087,245
|
$
|
834,635
|
Portfolio turnover rate H
|
105% I
|
104%
|
83%
|
63%
|
77%
|
ACalculated based on average shares outstanding during the period.
BNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
CThe amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
DTotal distributions per share do not sum due to rounding.
ETotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
FFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
HAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
IPortfolio turnover rate excludes securities received or delivered in-kind.
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
|
|||
Periods ended August 31, 2023
|
Past 1
year
|
Past 5
years
|
Past 10
years
|
Fidelity® Mid Cap Enhanced Index Fund
|
8.19%
|
7.25%
|
9.86%
|
$10,000 Over 10 Years
|
Let's say hypothetically that $10,000 was invested in Fidelity® Mid Cap Enhanced Index Fund on August 31, 2013.
The chart shows how the value of your investment would have changed, and also shows how the Russell Midcap® Index performed over the same period.
|
|
Fidelity® Mid Cap Enhanced Index Fund
Market Recap:
U.S. equities gained 15.94% for the 12 months ending August 31, 2023, according to the S&P 500® index, as continued global economic expansion, falling commodity prices and a slowing in the pace of inflation provided a favorable backdrop for higher-risk assets. Large-cap stocks spearheaded the rally, which was driven by the shares of a narrow set of mega-cap companies in the information technology and communication services sectors, largely due to exuberance related to generative artificial intelligence. Aggressive monetary tightening by the U.S. Federal Reserve continued amid consistent pressure on core inflation, a measure that excludes food and energy. Since March 2022, the Fed has hiked its benchmark interest rate 11 times. The latest bump came in late July, a fourth consecutive raise of a stepped down 25 basis points. The S&P 500® gained 3.21% in July but snapped a five-month rally in August (-1.59%), held back by softness in manufacturing and jobs. Still, U.S. stocks ended August up 18.73% year to date. For the full 12 months, value (+17%) topped growth (+13%) within the index. By sector, information technology (+35%) led by a wide margin, followed by communication services (+26%). In contrast, the defensive utilities sector (-13%) lagged most, as climbing yields offered investors better returns elsewhere. Real estate returned about -7%, hampered by high borrowing costs and low home inventory.
Comments from Senior Portfolio Manager Maximilian Kaufmann of the Fidelity Systematic Equity Strategies portfolio management team:
For the fiscal year ending August 31, 2023, the fund gained 8.19%, versus 8.38% for the benchmark Russell MidCap Index. Relative to the benchmark, market selection was the primary contributor, especially an underweight in the utilities sector. Also contributing to performance versus the benchmark was stock selection in industrials. Picks in health care also boosted relative performance. Further contributing to our result were stock picking and an underweight in communication services. The top individual relative contributor was an overweight in XPO (+124%). A second notable relative contributor was an overweight in Toll Brothers (+90%). An overweight in Topbuild (+71%) also contributed. This was a position we established this period. In contrast, the biggest detractor from performance versus the benchmark was security selection in consumer discretionary. Stock selection and an overweight in energy also hampered the fund's result. Also detracting from our result was stock picking in consumer staples. The largest individual relative detractor was an overweight in Hawaiian Electric Industries (-58%). This period we decreased our investment in this stock. The second-largest relative detractor was an overweight in Enphase Energy (-53%). This was a stake we established the past year. An overweight in East West Bancorp (-23%) also detracted. This period we increased our position in East West Bancorp. Notable changes in positioning include increased exposure to the industrials sector and a lower allocation to energy.
Note to shareholders:
In June 2023, the Board of Trustees approved the conversion of Fidelity's Enhanced Index Funds into exchange-traded funds, a move deemed in the best interest of shareholders. Each new ETF and its former corresponding fund will have identical investment objectives and fundamental investment policies and have substantially similar investment strategies. Fidelity believes that the conversion will provide multiple benefits for investors of the Funds, including lower net expenses, additional trading flexibility, increased portfolio holdings transparency and the potential for enhanced tax efficiency. The Fund conversions are expected to be conducted in November 2023. For more information, please refer to the Funds' prospectus supplements or visit us online.
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. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a 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® Mid Cap Enhanced Index Fund
Top Holdings (% of Fund's net assets)
|
||
Trane Technologies PLC
|
1.0
|
|
Apollo Global Management, Inc.
|
1.0
|
|
Nucor Corp.
|
1.0
|
|
Cintas Corp.
|
1.0
|
|
PACCAR, Inc.
|
0.9
|
|
AMETEK, Inc.
|
0.9
|
|
D.R. Horton, Inc.
|
0.9
|
|
Simon Property Group, Inc.
|
0.9
|
|
Bank of New York Mellon Corp.
|
0.9
|
|
Align Technology, Inc.
|
0.8
|
|
9.3
|
||
Market Sectors (% of Fund's net assets)
|
||
Industrials
|
20.2
|
|
Information Technology
|
15.0
|
|
Financials
|
14.1
|
|
Health Care
|
12.3
|
|
Consumer Discretionary
|
11.9
|
|
Real Estate
|
6.8
|
|
Materials
|
6.3
|
|
Utilities
|
4.0
|
|
Energy
|
3.6
|
|
Communication Services
|
2.9
|
|
Consumer Staples
|
1.9
|
|
Asset Allocation (% of Fund's net assets)
|
|
Futures - 0.9%
|
Fidelity® Mid Cap Enhanced Index Fund
Showing Percentage of Net Assets
Common Stocks - 99.0%
|
|||
Shares
|
Value ($)
|
||
COMMUNICATION SERVICES - 2.9%
|
|||
Entertainment - 1.8%
|
|||
Electronic Arts, Inc.
|
104,029
|
12,481,399
|
|
Playtika Holding Corp. (a)
|
374,728
|
3,657,345
|
|
Spotify Technology SA (a)
|
79,430
|
12,229,837
|
|
28,368,581
|
|||
Interactive Media & Services - 0.1%
|
|||
Pinterest, Inc. Class A (a)
|
8,054
|
221,404
|
|
Vimeo, Inc. (a)
|
382,509
|
1,522,386
|
|
1,743,790
|
|||
Media - 1.0%
|
|||
Liberty Media Corp. Liberty SiriusXM
|
55,002
|
1,344,249
|
|
Liberty Media Corp. Liberty SiriusXM Class A
|
71,839
|
1,726,291
|
|
News Corp.:
|
|||
Class A
|
109,779
|
2,359,151
|
|
Class B
|
118,384
|
2,604,448
|
|
The New York Times Co. Class A
|
30,827
|
1,364,711
|
|
The Trade Desk, Inc. (a)
|
86,629
|
6,932,919
|
|
16,331,769
|
|||
TOTAL COMMUNICATION SERVICES
|
46,444,140
|
||
CONSUMER DISCRETIONARY - 11.9%
|
|||
Automobile Components - 0.2%
|
|||
Aptiv PLC (a)
|
36,789
|
3,732,244
|
|
Automobiles - 0.5%
|
|||
Ford Motor Co.
|
596,780
|
7,238,941
|
|
Broadline Retail - 0.9%
|
|||
eBay, Inc.
|
228,181
|
10,217,945
|
|
Etsy, Inc. (a)
|
68,465
|
5,036,970
|
|
15,254,915
|
|||
Distributors - 0.8%
|
|||
Genuine Parts Co.
|
76,043
|
11,690,090
|
|
LKQ Corp.
|
18,753
|
985,095
|
|
12,675,185
|
|||
Diversified Consumer Services - 0.2%
|
|||
ADT, Inc.
|
124,854
|
801,563
|
|
H&R Block, Inc.
|
69,335
|
2,772,013
|
|
3,573,576
|
|||
Hotels, Restaurants & Leisure - 2.8%
|
|||
Airbnb, Inc. Class A (a)
|
14,374
|
1,890,900
|
|
Booking Holdings, Inc. (a)
|
2,785
|
8,647,509
|
|
Caesars Entertainment, Inc. (a)
|
191,948
|
10,607,046
|
|
Chipotle Mexican Grill, Inc. (a)
|
4,240
|
8,168,954
|
|
Draftkings Holdings, Inc. (a)
|
50,350
|
1,492,878
|
|
MGM Resorts International
|
217,895
|
9,583,022
|
|
Norwegian Cruise Line Holdings Ltd. (a)
|
159,787
|
2,647,671
|
|
Yum! Brands, Inc.
|
20,259
|
2,621,109
|
|
45,659,089
|
|||
Household Durables - 3.3%
|
|||
D.R. Horton, Inc.
|
121,062
|
14,408,799
|
|
Lennar Corp. Class A
|
36,026
|
4,290,336
|
|
NVR, Inc. (a)
|
1,891
|
12,059,531
|
|
PulteGroup, Inc.
|
29,847
|
2,449,245
|
|
Toll Brothers, Inc.
|
128,043
|
10,490,563
|
|
TopBuild Corp. (a)
|
34,854
|
10,110,448
|
|
Whirlpool Corp.
|
5,861
|
820,306
|
|
54,629,228
|
|||
Leisure Products - 0.1%
|
|||
Peloton Interactive, Inc. Class A (a)
|
300,386
|
1,916,463
|
|
Specialty Retail - 2.2%
|
|||
AutoNation, Inc. (a)
|
6,162
|
967,989
|
|
AutoZone, Inc. (a)
|
2,829
|
7,161,133
|
|
GameStop Corp. Class A (a)(b)
|
24,356
|
451,804
|
|
O'Reilly Automotive, Inc. (a)
|
7,237
|
6,800,609
|
|
Petco Health & Wellness Co., Inc. (a)(b)
|
189,702
|
965,583
|
|
Ross Stores, Inc.
|
43,499
|
5,298,613
|
|
Ulta Beauty, Inc. (a)
|
21,051
|
8,736,797
|
|
Williams-Sonoma, Inc. (b)
|
42,181
|
5,955,957
|
|
36,338,485
|
|||
Textiles, Apparel & Luxury Goods - 0.9%
|
|||
Crocs, Inc. (a)
|
38,976
|
3,793,924
|
|
Tapestry, Inc.
|
238,352
|
7,941,889
|
|
Under Armour, Inc.:
|
|||
Class A (sub. vtg.) (a)
|
169,791
|
1,297,203
|
|
Class C (non-vtg.) (a)
|
106,887
|
736,451
|
|
13,769,467
|
|||
TOTAL CONSUMER DISCRETIONARY
|
194,787,593
|
||
CONSUMER STAPLES - 1.9%
|
|||
Consumer Staples Distribution & Retail - 0.3%
|
|||
Casey's General Stores, Inc.
|
15,565
|
3,804,242
|
|
Grocery Outlet Holding Corp. (a)
|
66,060
|
2,037,951
|
|
5,842,193
|
|||
Food Products - 0.7%
|
|||
Lamb Weston Holdings, Inc.
|
94,157
|
9,171,833
|
|
McCormick & Co., Inc. (non-vtg.)
|
25,181
|
2,066,856
|
|
11,238,689
|
|||
Household Products - 0.5%
|
|||
Church & Dwight Co., Inc.
|
11,717
|
1,133,854
|
|
Kimberly-Clark Corp.
|
41,513
|
5,348,120
|
|
The Clorox Co.
|
8,084
|
1,264,742
|
|
7,746,716
|
|||
Personal Care Products - 0.4%
|
|||
Coty, Inc. Class A (a)
|
569,926
|
6,588,345
|
|
TOTAL CONSUMER STAPLES
|
31,415,943
|
||
ENERGY - 3.6%
|
|||
Energy Equipment & Services - 0.8%
|
|||
Baker Hughes Co. Class A
|
66,841
|
2,418,976
|
|
Halliburton Co.
|
280,443
|
10,830,709
|
|
13,249,685
|
|||
Oil, Gas & Consumable Fuels - 2.8%
|
|||
Cheniere Energy, Inc.
|
80,315
|
13,107,408
|
|
Chesapeake Energy Corp.
|
1,099
|
96,943
|
|
Coterra Energy, Inc.
|
113,280
|
3,193,363
|
|
Devon Energy Corp.
|
169,008
|
8,634,619
|
|
Diamondback Energy, Inc.
|
29,455
|
4,470,680
|
|
Marathon Oil Corp.
|
302,938
|
7,982,416
|
|
ONEOK, Inc.
|
103,720
|
6,762,544
|
|
Phillips 66 Co.
|
3,176
|
362,572
|
|
The Williams Companies, Inc.
|
27,466
|
948,401
|
|
45,558,946
|
|||
TOTAL ENERGY
|
58,808,631
|
||
FINANCIALS - 14.1%
|
|||
Banks - 1.5%
|
|||
BOK Financial Corp.
|
16,369
|
1,360,428
|
|
Citizens Financial Group, Inc.
|
198,467
|
5,582,877
|
|
Columbia Banking Systems, Inc.
|
158,295
|
3,241,882
|
|
East West Bancorp, Inc.
|
96,175
|
5,322,325
|
|
Fifth Third Bancorp
|
293,420
|
7,790,301
|
|
First Hawaiian, Inc.
|
33,875
|
640,576
|
|
23,938,389
|
|||
Capital Markets - 5.8%
|
|||
Ameriprise Financial, Inc.
|
14,652
|
4,946,222
|
|
Bank of New York Mellon Corp.
|
315,834
|
14,171,472
|
|
Cboe Global Markets, Inc.
|
29,145
|
4,363,298
|
|
Interactive Brokers Group, Inc.
|
94,568
|
8,613,253
|
|
Janus Henderson Group PLC
|
27,887
|
766,056
|
|
LPL Financial
|
41,684
|
9,611,914
|
|
MSCI, Inc.
|
2,826
|
1,536,270
|
|
NASDAQ, Inc.
|
219,667
|
11,528,124
|
|
Raymond James Financial, Inc.
|
87,888
|
9,192,206
|
|
Robinhood Markets, Inc. (a)
|
741,315
|
8,072,920
|
|
SEI Investments Co.
|
18,203
|
1,129,678
|
|
State Street Corp.
|
107,672
|
7,401,373
|
|
Stifel Financial Corp.
|
145,440
|
9,456,509
|
|
Tradeweb Markets, Inc. Class A
|
37,271
|
3,221,333
|
|
Virtu Financial, Inc. Class A
|
42,940
|
804,696
|
|
94,815,324
|
|||
Consumer Finance - 0.6%
|
|||
Synchrony Financial
|
303,723
|
9,804,178
|
|
Financial Services - 2.7%
|
|||
Apollo Global Management, Inc.
|
184,154
|
16,084,010
|
|
Corebridge Financial, Inc.
|
105,209
|
1,875,876
|
|
Essent Group Ltd.
|
15,181
|
762,390
|
|
Fidelity National Information Services, Inc.
|
132,704
|
7,412,845
|
|
FleetCor Technologies, Inc. (a)
|
9,940
|
2,700,996
|
|
MGIC Investment Corp.
|
50,694
|
891,201
|
|
The Western Union Co.
|
666,464
|
8,230,830
|
|
WEX, Inc. (a)
|
32,846
|
6,443,728
|
|
44,401,876
|
|||
Insurance - 3.5%
|
|||
Arch Capital Group Ltd. (a)
|
41,514
|
3,190,766
|
|
Axis Capital Holdings Ltd.
|
28,104
|
1,541,785
|
|
Brown & Brown, Inc.
|
157,738
|
11,688,386
|
|
Everest Re Group Ltd.
|
29,816
|
10,754,035
|
|
Hartford Financial Services Group, Inc.
|
46,996
|
3,375,253
|
|
Kinsale Capital Group, Inc.
|
1,116
|
444,871
|
|
Prudential Financial, Inc.
|
107,060
|
10,135,370
|
|
Reinsurance Group of America, Inc.
|
43,209
|
5,989,632
|
|
Unum Group
|
209,652
|
10,312,782
|
|
57,432,880
|
|||
Mortgage Real Estate Investment Trusts - 0.0%
|
|||
Rithm Capital Corp.
|
25,959
|
267,637
|
|
TOTAL FINANCIALS
|
230,660,284
|
||
HEALTH CARE - 12.3%
|
|||
Biotechnology - 3.7%
|
|||
Biogen, Inc. (a)
|
50,342
|
13,459,437
|
|
Exact Sciences Corp. (a)
|
112,709
|
9,430,362
|
|
Exelixis, Inc. (a)
|
437,568
|
9,797,148
|
|
Gilead Sciences, Inc.
|
40,773
|
3,118,319
|
|
Horizon Therapeutics PLC (a)
|
19,367
|
2,183,436
|
|
Incyte Corp. (a)
|
154,156
|
9,947,687
|
|
Sarepta Therapeutics, Inc. (a)
|
45,922
|
5,557,021
|
|
Seagen, Inc. (a)
|
9,425
|
1,942,210
|
|
United Therapeutics Corp. (a)
|
24,913
|
5,589,481
|
|
61,025,101
|
|||
Health Care Equipment & Supplies - 3.5%
|
|||
Abiomed, Inc. (c)
|
3,289
|
9,176
|
|
Align Technology, Inc. (a)
|
36,499
|
13,509,740
|
|
Dentsply Sirona, Inc.
|
109,447
|
4,059,389
|
|
DexCom, Inc. (a)
|
831
|
83,914
|
|
Hologic, Inc. (a)
|
77,369
|
5,782,559
|
|
IDEXX Laboratories, Inc. (a)
|
17,077
|
8,733,349
|
|
Insulet Corp. (a)
|
38,603
|
7,400,581
|
|
The Cooper Companies, Inc.
|
12,852
|
4,755,111
|
|
Zimmer Biomet Holdings, Inc.
|
101,530
|
12,094,254
|
|
Zimvie, Inc. (a)
|
17,678
|
208,600
|
|
56,636,673
|
|||
Health Care Providers & Services - 1.9%
|
|||
Cardinal Health, Inc.
|
18,772
|
1,639,359
|
|
Cencora, Inc.
|
54,395
|
9,572,432
|
|
Cigna Group
|
6,474
|
1,788,507
|
|
Elevance Health, Inc.
|
14,090
|
6,227,921
|
|
Molina Healthcare, Inc. (a)
|
36,021
|
11,170,833
|
|
Premier, Inc.
|
35,006
|
753,679
|
|
31,152,731
|
|||
Health Care Technology - 0.5%
|
|||
Teladoc Health, Inc. (a)
|
132,407
|
2,997,694
|
|
Veeva Systems, Inc. Class A (a)
|
24,803
|
5,176,386
|
|
8,174,080
|
|||
Life Sciences Tools & Services - 1.6%
|
|||
10X Genomics, Inc. (a)
|
138,696
|
7,191,388
|
|
Mettler-Toledo International, Inc. (a)
|
8,356
|
10,139,839
|
|
Syneos Health, Inc. (a)
|
215,347
|
9,201,777
|
|
26,533,004
|
|||
Pharmaceuticals - 1.1%
|
|||
Elanco Animal Health, Inc. (a)
|
2,164
|
26,401
|
|
Jazz Pharmaceuticals PLC (a)
|
41,470
|
5,945,139
|
|
Royalty Pharma PLC
|
160,721
|
4,792,700
|
|
Viatris, Inc.
|
618,367
|
6,647,445
|
|
17,411,685
|
|||
TOTAL HEALTH CARE
|
200,933,274
|
||
INDUSTRIALS - 20.2%
|
|||
Aerospace & Defense - 2.8%
|
|||
Axon Enterprise, Inc. (a)
|
54,825
|
11,672,791
|
|
General Dynamics Corp.
|
13,612
|
3,085,024
|
|
Howmet Aerospace, Inc.
|
156,380
|
7,736,119
|
|
Parsons Corp. (a)
|
125,077
|
7,131,891
|
|
Textron, Inc.
|
147,309
|
11,447,382
|
|
Woodward, Inc.
|
36,068
|
4,666,117
|
|
45,739,324
|
|||
Building Products - 2.9%
|
|||
Allegion PLC
|
56,120
|
6,387,017
|
|
Builders FirstSource, Inc. (a)
|
59,258
|
8,594,780
|
|
Carrier Global Corp.
|
198,022
|
11,376,364
|
|
Fortune Brands Home & Security, Inc.
|
22,579
|
1,558,403
|
|
Owens Corning
|
21,510
|
3,095,504
|
|
Trane Technologies PLC
|
79,653
|
16,349,563
|
|
47,361,631
|
|||
Commercial Services & Supplies - 1.9%
|
|||
Cintas Corp.
|
31,489
|
15,875,809
|
|
MSA Safety, Inc.
|
1,564
|
285,712
|
|
Republic Services, Inc.
|
91,291
|
13,157,772
|
|
Tetra Tech, Inc.
|
6,385
|
1,004,680
|
|
30,323,973
|
|||
Construction & Engineering - 0.4%
|
|||
AECOM
|
44,455
|
3,900,926
|
|
EMCOR Group, Inc.
|
4,776
|
1,071,018
|
|
Valmont Industries, Inc.
|
7,609
|
1,928,882
|
|
6,900,826
|
|||
Electrical Equipment - 2.6%
|
|||
Acuity Brands, Inc.
|
14,942
|
2,409,846
|
|
AMETEK, Inc.
|
91,616
|
14,613,668
|
|
Hubbell, Inc. Class B
|
16,852
|
5,494,595
|
|
nVent Electric PLC
|
188,766
|
10,672,830
|
|
Rockwell Automation, Inc.
|
25,819
|
8,057,594
|
|
Vertiv Holdings Co.
|
50,684
|
1,996,443
|
|
43,244,976
|
|||
Ground Transportation - 0.9%
|
|||
Hertz Global Holdings, Inc. (a)(b)
|
88,827
|
1,505,618
|
|
Old Dominion Freight Lines, Inc.
|
3,981
|
1,701,360
|
|
Uber Technologies, Inc. (a)
|
25,568
|
1,207,577
|
|
XPO, Inc. (a)
|
140,904
|
10,515,666
|
|
14,930,221
|
|||
Machinery - 5.1%
|
|||
AGCO Corp.
|
76,043
|
9,849,850
|
|
Allison Transmission Holdings, Inc.
|
162,253
|
9,808,194
|
|
CNH Industrial NV
|
21,340
|
294,065
|
|
Cummins, Inc.
|
57,665
|
13,265,257
|
|
Donaldson Co., Inc.
|
26,289
|
1,679,078
|
|
Fortive Corp.
|
156,608
|
12,348,541
|
|
Gates Industrial Corp. PLC (a)
|
27,862
|
342,145
|
|
Graco, Inc.
|
65,754
|
5,190,621
|
|
ITT, Inc.
|
8,402
|
859,357
|
|
Oshkosh Corp.
|
21,555
|
2,238,056
|
|
Otis Worldwide Corp.
|
16,385
|
1,401,737
|
|
PACCAR, Inc.
|
185,316
|
15,249,654
|
|
Parker Hannifin Corp.
|
16,948
|
7,065,621
|
|
Westinghouse Air Brake Tech Co.
|
17,548
|
1,974,501
|
|
Xylem, Inc.
|
23,904
|
2,475,020
|
|
84,041,697
|
|||
Marine Transportation - 0.1%
|
|||
Kirby Corp. (a)
|
28,508
|
2,361,318
|
|
Passenger Airlines - 1.6%
|
|||
American Airlines Group, Inc. (a)
|
203,022
|
2,990,514
|
|
Delta Air Lines, Inc.
|
289,522
|
12,414,703
|
|
United Airlines Holdings, Inc. (a)
|
214,593
|
10,688,877
|
|
26,094,094
|
|||
Professional Services - 0.9%
|
|||
Booz Allen Hamilton Holding Corp. Class A
|
85,683
|
9,708,741
|
|
Leidos Holdings, Inc.
|
42,767
|
4,170,210
|
|
13,878,951
|
|||
Trading Companies & Distributors - 1.0%
|
|||
MSC Industrial Direct Co., Inc. Class A
|
10,134
|
1,034,276
|
|
United Rentals, Inc.
|
3,305
|
1,574,965
|
|
W.W. Grainger, Inc.
|
18,735
|
13,379,413
|
|
15,988,654
|
|||
TOTAL INDUSTRIALS
|
330,865,665
|
||
INFORMATION TECHNOLOGY - 15.0%
|
|||
Communications Equipment - 0.7%
|
|||
Juniper Networks, Inc.
|
280,879
|
8,179,196
|
|
Motorola Solutions, Inc.
|
6,157
|
1,745,940
|
|
ViaSat, Inc. (a)
|
46,823
|
1,298,870
|
|
11,224,006
|
|||
Electronic Equipment, Instruments & Components - 1.0%
|
|||
Amphenol Corp. Class A
|
57,173
|
5,052,950
|
|
Keysight Technologies, Inc. (a)
|
79,205
|
10,558,027
|
|
Vontier Corp.
|
10,200
|
320,382
|
|
15,931,359
|
|||
IT Services - 3.5%
|
|||
Amdocs Ltd.
|
69,510
|
6,200,292
|
|
Gartner, Inc. (a)
|
36,635
|
12,810,527
|
|
GoDaddy, Inc. (a)
|
104,535
|
7,579,833
|
|
Kyndryl Holdings, Inc. (a)
|
71,553
|
1,207,815
|
|
MongoDB, Inc. Class A (a)
|
31,073
|
11,848,135
|
|
Twilio, Inc. Class A (a)
|
162,651
|
10,362,495
|
|
Wix.com Ltd. (a)
|
83,133
|
8,211,046
|
|
58,220,143
|
|||
Semiconductors & Semiconductor Equipment - 2.6%
|
|||
Allegro MicroSystems LLC (a)
|
70,502
|
2,696,702
|
|
Cirrus Logic, Inc. (a)
|
40,272
|
3,303,915
|
|
Enphase Energy, Inc. (a)
|
41,991
|
5,313,121
|
|
KLA Corp.
|
5,960
|
2,991,145
|
|
Lattice Semiconductor Corp. (a)
|
112,763
|
10,967,329
|
|
Monolithic Power Systems, Inc.
|
14,657
|
7,639,375
|
|
ON Semiconductor Corp. (a)
|
32,880
|
3,237,365
|
|
Qorvo, Inc. (a)
|
65,830
|
7,069,484
|
|
43,218,436
|
|||
Software - 6.8%
|
|||
AppLovin Corp. (a)(b)
|
118,786
|
5,133,931
|
|
Autodesk, Inc. (a)
|
8,425
|
1,869,845
|
|
Black Knight, Inc. (a)
|
2,756
|
208,795
|
|
Cadence Design Systems, Inc. (a)
|
32,239
|
7,751,545
|
|
DocuSign, Inc. (a)
|
196,877
|
9,902,913
|
|
Dropbox, Inc. Class A (a)
|
358,974
|
9,975,887
|
|
HubSpot, Inc. (a)
|
24,228
|
13,241,087
|
|
Manhattan Associates, Inc. (a)
|
8,917
|
1,806,763
|
|
Nutanix, Inc. Class A (a)
|
108,285
|
3,367,664
|
|
Palo Alto Networks, Inc. (a)
|
34,802
|
8,467,327
|
|
RingCentral, Inc. (a)
|
215,289
|
6,658,889
|
|
Splunk, Inc. (a)
|
100,651
|
12,204,940
|
|
Synopsys, Inc. (a)
|
19,741
|
9,058,947
|
|
Teradata Corp. (a)
|
197,009
|
9,115,606
|
|
Unity Software, Inc. (a)(b)
|
23,380
|
866,697
|
|
Workday, Inc. Class A (a)
|
15,541
|
3,799,775
|
|
Zoom Video Communications, Inc. Class A (a)
|
103,623
|
7,360,342
|
|
110,790,953
|
|||
Technology Hardware, Storage & Peripherals - 0.4%
|
|||
Pure Storage, Inc. Class A (a)
|
183,356
|
6,708,996
|
|
TOTAL INFORMATION TECHNOLOGY
|
246,093,893
|
||
MATERIALS - 6.3%
|
|||
Chemicals - 2.5%
|
|||
CF Industries Holdings, Inc.
|
41,690
|
3,213,048
|
|
Corteva, Inc.
|
187,027
|
9,446,734
|
|
Eastman Chemical Co.
|
23,573
|
2,003,941
|
|
Element Solutions, Inc.
|
418,840
|
8,636,481
|
|
Ginkgo Bioworks Holdings, Inc. Class A (a)(b)
|
1,145,816
|
2,681,209
|
|
The Chemours Co. LLC
|
208,954
|
7,108,615
|
|
Westlake Corp.
|
59,315
|
7,769,079
|
|
40,859,107
|
|||
Construction Materials - 1.6%
|
|||
Martin Marietta Materials, Inc.
|
29,522
|
13,178,916
|
|
Vulcan Materials Co.
|
61,369
|
13,393,784
|
|
26,572,700
|
|||
Containers & Packaging - 0.3%
|
|||
Berry Global Group, Inc.
|
27,678
|
1,808,481
|
|
Graphic Packaging Holding Co.
|
78,286
|
1,741,081
|
|
WestRock Co.
|
18,923
|
618,971
|
|
4,168,533
|
|||
Metals & Mining - 1.9%
|
|||
Nucor Corp.
|
92,817
|
15,973,806
|
|
Reliance Steel & Aluminum Co.
|
10,511
|
2,995,215
|
|
Steel Dynamics, Inc.
|
106,087
|
11,307,813
|
|
30,276,834
|
|||
Paper & Forest Products - 0.0%
|
|||
Louisiana-Pacific Corp.
|
3,356
|
209,683
|
|
TOTAL MATERIALS
|
102,086,857
|
||
REAL ESTATE - 6.8%
|
|||
Equity Real Estate Investment Trusts (REITs) - 6.1%
|
|||
American Homes 4 Rent Class A
|
99,835
|
3,598,053
|
|
Apartment Income (REIT) Corp.
|
48,265
|
1,643,906
|
|
EastGroup Properties, Inc.
|
6,236
|
1,120,173
|
|
EPR Properties
|
37,400
|
1,674,772
|
|
Federal Realty Investment Trust (SBI)
|
62,036
|
6,075,806
|
|
First Industrial Realty Trust, Inc.
|
18,487
|
960,215
|
|
Gaming & Leisure Properties
|
159,860
|
7,577,364
|
|
Highwoods Properties, Inc. (SBI)
|
156,066
|
3,719,053
|
|
Invitation Homes, Inc.
|
156,784
|
5,344,767
|
|
Kilroy Realty Corp.
|
54,362
|
2,008,676
|
|
National Storage Affiliates Trust
|
202,655
|
6,809,208
|
|
NNN (REIT), Inc.
|
219,185
|
8,633,697
|
|
Park Hotels & Resorts, Inc.
|
366,722
|
4,705,043
|
|
Public Storage
|
18,221
|
5,035,920
|
|
Regency Centers Corp.
|
119,102
|
7,408,144
|
|
Ryman Hospitality Properties, Inc.
|
19,089
|
1,623,138
|
|
SBA Communications Corp. Class A
|
23,897
|
5,365,593
|
|
Simon Property Group, Inc.
|
126,559
|
14,363,181
|
|
Spirit Realty Capital, Inc.
|
119,120
|
4,599,223
|
|
Terreno Realty Corp.
|
12,410
|
755,645
|
|
VICI Properties, Inc.
|
230,463
|
7,107,479
|
|
100,129,056
|
|||
Real Estate Management & Development - 0.7%
|
|||
CoStar Group, Inc. (a)
|
31,838
|
2,610,398
|
|
Zillow Group, Inc.:
|
|||
Class A (a)
|
78,985
|
4,021,916
|
|
Class C (a)
|
92,735
|
4,837,058
|
|
11,469,372
|
|||
TOTAL REAL ESTATE
|
111,598,428
|
||
UTILITIES - 4.0%
|
|||
Electric Utilities - 0.7%
|
|||
Entergy Corp.
|
9,636
|
917,829
|
|
FirstEnergy Corp.
|
166,055
|
5,989,604
|
|
Hawaiian Electric Industries, Inc.
|
33,591
|
470,946
|
|
OGE Energy Corp.
|
5,798
|
197,422
|
|
Xcel Energy, Inc.
|
59,258
|
3,385,410
|
|
10,961,211
|
|||
Gas Utilities - 0.5%
|
|||
National Fuel Gas Co.
|
144,134
|
7,745,761
|
|
UGI Corp.
|
46,934
|
1,181,798
|
|
8,927,559
|
|||
Independent Power and Renewable Electricity Producers - 1.1%
|
|||
Brookfield Renewable Corp.
|
104,692
|
2,926,141
|
|
Clearway Energy, Inc.:
|
|||
Class A
|
35,290
|
827,198
|
|
Class C
|
66,822
|
1,655,181
|
|
The AES Corp.
|
117,976
|
2,115,310
|
|
Vistra Corp.
|
326,042
|
10,244,240
|
|
17,768,070
|
|||
Multi-Utilities - 1.7%
|
|||
Consolidated Edison, Inc.
|
112,816
|
10,036,111
|
|
DTE Energy Co.
|
4,914
|
508,009
|
|
NiSource, Inc.
|
248,397
|
6,647,104
|
|
WEC Energy Group, Inc.
|
133,168
|
11,202,092
|
|
28,393,316
|
|||
TOTAL UTILITIES
|
66,050,156
|
||
|
TOTAL COMMON STOCKS
(Cost $1,444,514,740)
|
1,619,744,864
|
||
Money Market Funds - 3.8%
|
|||
Shares
|
Value ($)
|
||
Fidelity Cash Central Fund 5.43% (d)
|
49,711,612
|
49,721,554
|
|
Fidelity Securities Lending Cash Central Fund 5.44% (d)(e)
|
13,169,428
|
13,170,745
|
|
|
TOTAL MONEY MARKET FUNDS
(Cost $62,892,299)
|
62,892,299
|
||
|
TOTAL INVESTMENT IN SECURITIES - 102.8%
(Cost $1,507,407,039)
|
1,682,637,163
|
NET OTHER ASSETS (LIABILITIES) - (2.8)%
|
(46,121,487)
|
NET ASSETS - 100.0%
|
1,636,515,676
|
Futures Contracts
|
|||||
Number
of contracts
|
Expiration
Date
|
Notional
Amount ($)
|
Value ($)
|
Unrealized
Appreciation/
(Depreciation) ($)
|
|
Purchased
|
|||||
Equity Index Contracts
|
|||||
CME E-mini S&P MidCap 400 Index Contracts (United States)
|
55
|
Sep 2023
|
14,567,850
|
351,793
|
351,793
|
The notional amount of futures purchased as a percentage of Net Assets is 0.9%
|
|||||
Legend
(a)
|
Non-income producing
|
(b)
|
Security or a portion of the security is on loan at period end.
|
(c)
|
Level 3 security
|
(d)
|
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
|
(e)
|
Investment made with cash collateral received from securities on loan.
|
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate
|
Value,
beginning
of period ($)
|
Purchases ($)
|
Sales
Proceeds ($)
|
Dividend
Income ($)
|
Realized
Gain (loss) ($)
|
Change in
Unrealized
appreciation
(depreciation) ($)
|
Value,
end
of period ($)
|
% ownership,
end
of period
|
Fidelity Cash Central Fund 5.43%
|
21,467,918
|
449,495,105
|
421,241,469
|
886,716
|
-
|
-
|
49,721,554
|
0.1%
|
Fidelity Securities Lending Cash Central Fund 5.44%
|
41,395,337
|
203,207,243
|
231,431,835
|
126,747
|
-
|
-
|
13,170,745
|
0.0%
|
Total
|
62,863,255
|
652,702,348
|
652,673,304
|
1,013,463
|
-
|
-
|
62,892,299
|
|
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2023, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date:
|
||||
Description
|
Total ($)
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Investments in Securities:
|
||||
Equities:
|
||||
Communication Services
|
46,444,140
|
46,444,140
|
-
|
-
|
Consumer Discretionary
|
194,787,593
|
194,787,593
|
-
|
-
|
Consumer Staples
|
31,415,943
|
31,415,943
|
-
|
-
|
Energy
|
58,808,631
|
58,808,631
|
-
|
-
|
Financials
|
230,660,284
|
230,660,284
|
-
|
-
|
Health Care
|
200,933,274
|
200,924,098
|
-
|
9,176
|
Industrials
|
330,865,665
|
330,865,665
|
-
|
-
|
Information Technology
|
246,093,893
|
246,093,893
|
-
|
-
|
Materials
|
102,086,857
|
102,086,857
|
-
|
-
|
Real Estate
|
111,598,428
|
111,598,428
|
-
|
-
|
Utilities
|
66,050,156
|
66,050,156
|
-
|
-
|
Money Market Funds
|
62,892,299
|
62,892,299
|
-
|
-
|
Total Investments in Securities:
|
1,682,637,163
|
1,682,627,987
|
-
|
9,176
|
Derivative Instruments:
|
||||
Assets
|
||||
Futures Contracts
|
351,793
|
351,793
|
-
|
-
|
Total Assets
|
351,793
|
351,793
|
-
|
-
|
Total Derivative Instruments:
|
351,793
|
351,793
|
-
|
-
|
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of August 31, 2023. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type
|
Value
|
|
Asset ($)
|
Liability ($)
|
|
Equity Risk
|
||
Futures Contracts (a)
|
351,793
|
0
|
Total Equity Risk
|
351,793
|
0
|
Total Value of Derivatives
|
351,793
|
0
|
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
Fidelity® Mid Cap Enhanced Index Fund
Statement of Assets and Liabilities
|
||||
August 31, 2023
|
||||
Assets
|
||||
Investment in securities, at value (including securities loaned of $12,727,027) - See accompanying schedule:
|
||||
Unaffiliated issuers (cost $1,444,514,740)
|
$
|
1,619,744,864
|
||
Fidelity Central Funds (cost $62,892,299)
|
62,892,299
|
|||
Total Investment in Securities (cost $1,507,407,039)
|
$
|
1,682,637,163
|
||
Segregated cash with brokers for derivative instruments
|
820,800
|
|||
Receivable for investments sold
|
20,673,244
|
|||
Receivable for fund shares sold
|
296,876
|
|||
Dividends receivable
|
1,859,342
|
|||
Distributions receivable from Fidelity Central Funds
|
94,824
|
|||
Other receivables
|
28,848
|
|||
Total assets
|
1,706,411,097
|
|||
Liabilities
|
||||
Payable for investments purchased
|
$
|
55,106,796
|
||
Payable for fund shares redeemed
|
1,000,364
|
|||
Accrued management fee
|
613,995
|
|||
Payable for daily variation margin on futures contracts
|
2,434
|
|||
Collateral on securities loaned
|
13,171,832
|
|||
Total Liabilities
|
69,895,421
|
|||
Net Assets
|
$
|
1,636,515,676
|
||
Net Assets consist of:
|
||||
Paid in capital
|
$
|
1,521,342,289
|
||
Total accumulated earnings (loss)
|
115,173,387
|
|||
Net Assets
|
$
|
1,636,515,676
|
||
Net Asset Value, offering price and redemption price per share ($1,636,515,676 ÷ 98,249,094 shares)
|
$
|
16.66
|
||
Statement of Operations
|
||||
Year ended
August 31, 2023
|
||||
Investment Income
|
||||
Dividends
|
$
|
26,198,952
|
||
Interest
|
43,267
|
|||
Income from Fidelity Central Funds (including $126,747 from security lending)
|
1,013,463
|
|||
Total Income
|
27,255,682
|
|||
Expenses
|
||||
Management fee
|
$
|
7,794,857
|
||
Independent trustees' fees and expenses
|
9,500
|
|||
Interest
|
2,322
|
|||
Total expenses before reductions
|
7,806,679
|
|||
Expense reductions
|
(1,764)
|
|||
Total expenses after reductions
|
7,804,915
|
|||
Net Investment income (loss)
|
19,450,767
|
|||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
(62,536,880)
|
|||
Redemptions in-kind
|
69,766,859
|
|||
Futures contracts
|
1,494,441
|
|||
Total net realized gain (loss)
|
8,724,420
|
|||
Change in net unrealized appreciation (depreciation) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
112,237,090
|
|||
Futures contracts
|
(773,128)
|
|||
Total change in net unrealized appreciation (depreciation)
|
111,463,962
|
|||
Net gain (loss)
|
120,188,382
|
|||
Net increase (decrease) in net assets resulting from operations
|
$
|
139,639,149
|
||
Statement of Changes in Net Assets
|
||||
Year ended
August 31, 2023
|
Year ended
August 31, 2022
|
|||
Increase (Decrease) in Net Assets
|
||||
Operations
|
||||
Net investment income (loss)
|
$
|
19,450,767
|
$
|
19,011,742
|
Net realized gain (loss)
|
8,724,420
|
101,845,182
|
||
Change in net unrealized appreciation (depreciation)
|
111,463,962
|
(369,508,755)
|
||
Net increase (decrease) in net assets resulting from operations
|
139,639,149
|
(248,651,831)
|
||
Distributions to shareholders
|
(57,460,804)
|
(258,245,278)
|
||
Share transactions
|
||||
Proceeds from sales of shares
|
531,911,323
|
330,859,667
|
||
Reinvestment of distributions
|
54,197,269
|
243,001,334
|
||
Cost of shares redeemed
|
(686,633,472)
|
(454,449,105)
|
||
Net increase (decrease) in net assets resulting from share transactions
|
(100,524,880)
|
119,411,896
|
||
Total increase (decrease) in net assets
|
(18,346,535)
|
(387,485,213)
|
||
Net Assets
|
||||
Beginning of period
|
1,654,862,211
|
2,042,347,424
|
||
End of period
|
$
|
1,636,515,676
|
$
|
1,654,862,211
|
Other Information
|
||||
Shares
|
||||
Sold
|
32,689,184
|
17,822,532
|
||
Issued in reinvestment of distributions
|
3,496,598
|
13,560,343
|
||
Redeemed
|
(41,895,245)
|
(25,723,746)
|
||
Net increase (decrease)
|
(5,709,463)
|
5,659,129
|
||
Financial Highlights
Fidelity® Mid Cap Enhanced Index Fund
|
Years ended August 31,
|
2023
|
2022
|
2021
|
2020
|
2019
|
|||||
Selected Per-Share Data
|
||||||||||
Net asset value, beginning of period
|
$
|
15.92
|
$
|
20.78
|
$
|
15.16
|
$
|
14.59
|
$
|
16.42
|
Income from Investment Operations
|
||||||||||
Net investment income (loss) A,B
|
.18
|
.18
|
.14
|
.19
|
.21
|
|||||
Net realized and unrealized gain (loss)
|
1.09
|
(2.46)
|
6.07
|
.97
|
(.71)
|
|||||
Total from investment operations
|
1.27
|
(2.28)
|
6.21
|
1.16
|
(.50)
|
|||||
Distributions from net investment income
|
(.15)
|
(.15) C
|
(.16)
|
(.22)
|
(.25)
|
|||||
Distributions from net realized gain
|
(.37)
|
(2.43) C
|
(.43)
|
(.38)
|
(1.09)
|
|||||
Total distributions
|
(.53) D
|
(2.58)
|
(.59)
|
(.59) D
|
(1.33) D
|
|||||
Net asset value, end of period
|
$
|
16.66
|
$
|
15.92
|
$
|
20.78
|
$
|
15.16
|
$
|
14.59
|
Total Return E
|
8.19%
|
(12.36)%
|
41.82%
|
7.91%
|
(2.19)%
|
|||||
Ratios to Average Net Assets B,F,G
|
||||||||||
Expenses before reductions
|
.45%
|
.51%
|
.59%
|
.59%
|
.59%
|
|||||
Expenses net of fee waivers, if any
|
.45%
|
.51%
|
.59%
|
.59%
|
.59%
|
|||||
Expenses net of all reductions
|
.45%
|
.51%
|
.59%
|
.59%
|
.59%
|
|||||
Net investment income (loss)
|
1.12%
|
1.00%
|
.77%
|
1.33%
|
1.46%
|
|||||
Supplemental Data
|
||||||||||
Net assets, end of period (000 omitted)
|
$
|
1,636,516
|
$
|
1,654,862
|
$
|
2,042,347
|
$
|
1,182,253
|
$
|
1,263,319
|
Portfolio turnover rate H
|
104% I
|
116%
|
70%
|
73%
|
90%
|
ACalculated based on average shares outstanding during the period.
BNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
CThe amount shown reflects reclassifications related to book to tax differences that were made in the year shown.
DTotal distributions per share do not sum due to rounding.
ETotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
FFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
HAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
IPortfolio turnover rate excludes securities received or delivered in-kind.
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
|
|||
Periods ended August 31, 2023
|
Past 1
year
|
Past 5
years
|
Past 10
years
|
Fidelity® International Enhanced Index Fund
|
19.29%
|
3.68%
|
5.37%
|
$10,000 Over 10 Years
|
Let's say hypothetically that $10,000 was invested in Fidelity® International Enhanced Index Fund on August 31, 2013.
The chart shows how the value of your investment would have changed, and also shows how the MSCI EAFE Index performed over the same period.
|
|
Fidelity® International Enhanced Index Fund
Market Recap:
Text International (non-U.S.) equities gained 12.09% for the 12 months ending August 31, 2023, according to the MSCI ACWI (All Country World Index) ex USA Index, as continued global economic expansion, falling commodity prices and a slowing in the pace of inflation provided a favorable backdrop for risk assets. Non-U.S. stocks broadly rallied for the first eight months of 2023 after posting a -15.68% return in 2022 - a challenging year for global assets. Persistently high inflation spurred the U.S. Federal Reserve and other central banks to hike interest rates aggressively in 2022, sending non-U.S. stocks into bear market territory. As the calendar year turned, non-U.S. stocks gained throughout 2023, rising 8.93% year to date through August, despite some turbulence amid the failure of three regional U.S. banks earlier in the year and uncertainty related to the U.S. debt ceiling in May. Following strong gains in June (+4.50%) and July (+4.07%), the index declined in August (-4.51%), due to sticky inflation, still-elevated interest rates and weak economic conditions in the eurozone and China. A stronger U.S. dollar also was a headwind for global economies. For the full 12 months, all regions advanced, with Europe ex U.K. (+26%) leading. Japan (+16%) and the U.K. (+15%) also outperformed, whereas emerging markets and Asia Pacific ex Japan (+2% each) lagged by the widest margin. By sector, industrials (+20%) and information technology (+18%) were the top performers. Financials (+14%) also outpaced the broader index, whereas real estate (-4%) fared worst.
Comments from Senior Portfolio Manager Maximilian Kaufmann of the Fidelity Systematic Equity Strategies portfolio management team:
For the fiscal year ending August 31, 2023, the fund gained 19.29%, versus 18.18% for the benchmark MSCI EAFE Index (Net MA). (The fund's relative performance can be affected by Fidelity's methodologies for valuing certain foreign stocks and for incorporating foreign exchange rates, which differ from those used by the index, as well as by local tax laws or regulations, which vary by country.) From a regional standpoint, stock selection in Japan and stock picks and an underweight in the U.K. contributed to the fund's relative result. Relative to the benchmark, security selection was the primary contributor, led by the information technology sector. By sector, the biggest contributors to performance versus the benchmark were stock selection and an overweight in industrials. Security selection in materials and health care also boosted the fund's relative performance. The top individual relative contributor was an overweight in Renesas Electronics (+75%). A second notable relative contributor was an overweight in Rolls-Royce Holdings (+127%). An overweight in Inditex (+82%) also helped. In contrast, from a regional standpoint, stock selection and an underweight in Asia Pacific ex Japan, primarily in Hong Kong, and an overweight in Europe ex U.K., primarily in Italy, detracted from the fund's relative result. By sector, the biggest detractors from performance versus the benchmark were picks and an underweight in financials. An overweight in materials also hampered the fund's result. Also detracting from our result was stock picking in communication services. The largest individual relative detractor was an overweight in Olympus (-37%). The second-largest relative detractor was an underweight in UniCredit (+162%). This was a stake we established the past year. An overweight in Bank of China Hong Kong (-16%) also detracted. This period we increased our investment in this stock. Notable changes in positioning include decreased exposure to Australia and a higher allocation to Sweden. By sector, meaningful changes in positioning include decreased exposure to the communication services sector and a higher allocation to materials.
Note to shareholders:
In June 2023, the Board of Trustees approved the conversion of Fidelity's Enhanced Index Funds into exchange-traded funds, a move deemed in the best interest of shareholders. Each new ETF and its former corresponding fund will have identical investment objectives and fundamental investment policies and have substantially similar investment strategies. Fidelity believes that the conversion will provide multiple benefits for investors of the Funds, including lower net expenses, additional trading flexibility, increased portfolio holdings transparency and the potential for enhanced tax efficiency. The Fund conversions are expected to be conducted in November 2023. For more information, please refer to the Funds' prospectus supplements or visit us online.
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. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund.
Fidelity® International Enhanced Index Fund
Top Holdings (% of Fund's net assets)
|
||
Novo Nordisk A/S Series B (Denmark, Pharmaceuticals)
|
2.5
|
|
ASML Holding NV (Netherlands) (Netherlands, Semiconductors & Semiconductor Equipment)
|
2.2
|
|
LVMH Moet Hennessy Louis Vuitton SE (France, Textiles, Apparel & Luxury Goods)
|
2.0
|
|
Shell PLC (London) (Netherlands, Oil, Gas & Consumable Fuels)
|
1.9
|
|
Novartis AG (Switzerland, Pharmaceuticals)
|
1.9
|
|
Nestle SA (Reg. S) (United States of America, Food Products)
|
1.6
|
|
HSBC Holdings PLC (United Kingdom, Banks)
|
1.4
|
|
TotalEnergies SE (France, Oil, Gas & Consumable Fuels)
|
1.3
|
|
Unilever PLC (United Kingdom, Personal Care Products)
|
1.3
|
|
BP PLC (United Kingdom, Oil, Gas & Consumable Fuels)
|
1.2
|
|
17.3
|
||
Market Sectors (% of Fund's net assets)
|
||
Industrials
|
17.5
|
|
Financials
|
16.0
|
|
Consumer Discretionary
|
14.5
|
|
Health Care
|
12.5
|
|
Consumer Staples
|
8.9
|
|
Information Technology
|
8.5
|
|
Materials
|
8.0
|
|
Energy
|
4.9
|
|
Utilities
|
4.0
|
|
Communication Services
|
2.8
|
|
Real Estate
|
0.8
|
|
Asset Allocation (% of Fund's net assets)
|
|
Futures - 1.2%
|
Geographic Diversification (% of Fund's net assets)
|
|
* Includes Short-Term investments and Net Other Assets (Liabilities).
Percentages are adjusted for the effect of derivatives, if applicable.
|
Fidelity® International Enhanced Index Fund
Showing Percentage of Net Assets
Common Stocks - 97.3%
|
|||
Shares
|
Value ($)
|
||
Australia - 6.4%
|
|||
ANZ Group Holdings Ltd.
|
330,247
|
5,391,980
|
|
APA Group unit
|
428,602
|
2,496,637
|
|
Aristocrat Leisure Ltd.
|
205,555
|
5,447,445
|
|
BHP Group Ltd.
|
248,164
|
7,211,784
|
|
Brambles Ltd.
|
472,091
|
4,579,194
|
|
Commonwealth Bank of Australia
|
50,741
|
3,359,436
|
|
Computershare Ltd.
|
87,768
|
1,431,968
|
|
Fortescue Metals Group Ltd.
|
740,264
|
10,278,986
|
|
Glencore PLC
|
599,020
|
3,198,125
|
|
Macquarie Group Ltd.
|
69,289
|
7,970,353
|
|
Medibank Private Ltd.
|
1,272,136
|
3,016,867
|
|
National Australia Bank Ltd.
|
94,559
|
1,762,247
|
|
Pilbara Minerals Ltd.
|
2,310,120
|
6,990,253
|
|
Qantas Airways Ltd. (a)
|
1,203,743
|
4,609,595
|
|
Rio Tinto Ltd.
|
52,641
|
3,850,876
|
|
Scentre Group unit
|
2,060,126
|
3,670,861
|
|
Sonic Healthcare Ltd.
|
109,740
|
2,286,770
|
|
South32 Ltd.
|
472,179
|
1,029,585
|
|
Suncorp Group Ltd.
|
382,439
|
3,377,532
|
|
Telstra Group Ltd.
|
3,181,565
|
8,266,595
|
|
Wesfarmers Ltd.
|
182,116
|
6,356,771
|
|
Woodside Energy Group Ltd.
|
65,734
|
1,576,769
|
|
Woolworths Group Ltd.
|
56,501
|
1,395,933
|
|
TOTAL AUSTRALIA
|
99,556,562
|
||
Austria - 0.1%
|
|||
Verbund AG
|
18,883
|
1,547,969
|
|
Belgium - 0.9%
|
|||
Ageas
|
164,858
|
6,557,055
|
|
Solvay SA Class A
|
63,264
|
7,333,374
|
|
TOTAL BELGIUM
|
13,890,429
|
||
China - 0.7%
|
|||
BOC Hong Kong (Holdings) Ltd.
|
3,176,000
|
8,828,578
|
|
Budweiser Brewing Co. APAC Ltd. (b)
|
443,700
|
961,816
|
|
SITC International Holdings Co. Ltd.
|
164,000
|
305,735
|
|
Wilmar International Ltd.
|
472,700
|
1,322,140
|
|
TOTAL CHINA
|
11,418,269
|
||
Denmark - 3.4%
|
|||
A.P. Moller - Maersk A/S Series A
|
801
|
1,435,789
|
|
Carlsberg A/S Series B
|
5,851
|
847,885
|
|
DSV A/S
|
4,326
|
822,954
|
|
Genmab A/S (a)
|
26,650
|
10,210,559
|
|
Novo Nordisk A/S:
|
|||
Series B
|
187,803
|
34,640,963
|
|
Series B sponsored ADR
|
22,821
|
4,236,034
|
|
Pandora A/S
|
9,316
|
967,505
|
|
TOTAL DENMARK
|
53,161,689
|
||
Finland - 1.8%
|
|||
Elisa Corp. (A Shares)
|
73,178
|
3,592,200
|
|
Kesko Oyj
|
209,319
|
4,090,091
|
|
Kone OYJ (B Shares)
|
194,331
|
8,850,358
|
|
Nordea Bank Abp
|
1,021,494
|
11,212,782
|
|
TOTAL FINLAND
|
27,745,431
|
||
France - 11.6%
|
|||
Aeroports de Paris SA
|
17,043
|
2,247,238
|
|
Air Liquide SA
|
92,937
|
16,791,503
|
|
Airbus Group NV
|
937
|
137,090
|
|
bioMerieux SA
|
3,381
|
350,488
|
|
BNP Paribas SA
|
32,941
|
2,130,217
|
|
Capgemini SA
|
6,072
|
1,133,164
|
|
Carrefour SA
|
54,877
|
1,048,904
|
|
Compagnie de St.-Gobain
|
177,156
|
11,556,682
|
|
Dassault Aviation SA
|
293
|
57,697
|
|
Edenred SA
|
99,659
|
6,358,559
|
|
Eiffage SA
|
67,974
|
6,730,979
|
|
Engie SA
|
472,819
|
7,614,389
|
|
Eurazeo SA
|
5,181
|
305,901
|
|
Hermes International SCA
|
6,906
|
14,234,181
|
|
L'Oreal SA
|
40,986
|
18,035,038
|
|
La Francaise des Jeux SAEM (b)
|
84,813
|
3,071,697
|
|
Legrand SA
|
71,944
|
7,106,937
|
|
LVMH Moet Hennessy Louis Vuitton SE
|
36,072
|
30,504,562
|
|
Orange SA ADR
|
55,037
|
615,314
|
|
Pernod Ricard SA
|
3,555
|
698,501
|
|
Publicis Groupe SA
|
26,340
|
2,055,257
|
|
Safran SA
|
59,294
|
9,502,765
|
|
Societe Generale Series A
|
34,834
|
986,887
|
|
TotalEnergies SE
|
320,768
|
20,121,420
|
|
Ubisoft Entertainment SA (a)
|
151,145
|
4,582,479
|
|
Valeo SA
|
55,667
|
1,086,525
|
|
VINCI SA
|
100,034
|
11,142,596
|
|
Wendel SA
|
6,516
|
596,692
|
|
TOTAL FRANCE
|
180,803,662
|
||
Germany - 6.1%
|
|||
Allianz SE
|
6,361
|
1,546,226
|
|
Bayerische Motoren Werke AG (BMW)
|
23,710
|
2,498,235
|
|
Beiersdorf AG
|
4,651
|
608,980
|
|
Continental AG
|
19,558
|
1,450,778
|
|
Deutsche Bank AG
|
441,567
|
4,813,030
|
|
Deutsche Borse AG
|
61,794
|
10,969,916
|
|
Deutsche Lufthansa AG (a)
|
586,545
|
5,245,258
|
|
Evonik Industries AG
|
20,167
|
387,174
|
|
Fresenius Medical Care AG & Co. KGaA
|
23,886
|
1,150,050
|
|
Fresenius SE & Co. KGaA
|
97,398
|
3,127,216
|
|
GEA Group AG
|
18,860
|
744,411
|
|
Infineon Technologies AG
|
130,669
|
4,669,544
|
|
Knorr-Bremse AG
|
39,490
|
2,702,004
|
|
Mercedes-Benz Group AG:
|
|||
ADR
|
50,266
|
917,857
|
|
(Germany)
|
923
|
67,540
|
|
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen
|
16,589
|
6,443,403
|
|
Rational AG
|
1,024
|
781,148
|
|
RWE AG
|
243,640
|
10,055,111
|
|
SAP SE
|
125,332
|
17,484,368
|
|
Scout24 AG (b)
|
4,047
|
279,188
|
|
Siemens AG
|
96,565
|
14,507,040
|
|
Siemens AG sponsored ADR
|
43,439
|
3,264,006
|
|
Telefonica Deutschland Holding AG
|
951,319
|
1,809,361
|
|
TOTAL GERMANY
|
95,521,844
|
||
Hong Kong - 1.6%
|
|||
AIA Group Ltd.
|
374,632
|
3,389,768
|
|
ASMPT Ltd.
|
108,800
|
1,089,755
|
|
Hang Seng Bank Ltd.
|
42,800
|
545,755
|
|
Henderson Land Development Co. Ltd.
|
3,000
|
8,238
|
|
Hong Kong & China Gas Co. Ltd.
|
367,000
|
270,020
|
|
Hong Kong Exchanges and Clearing Ltd.
|
121,300
|
4,702,060
|
|
Hongkong Land Holdings Ltd.
|
81,900
|
290,745
|
|
Jardine Matheson Holdings Ltd.
|
119,400
|
5,678,664
|
|
New World Development Co. Ltd.
|
1,557,000
|
3,307,634
|
|
Sino Land Ltd.
|
708,000
|
811,609
|
|
Swire Pacific Ltd. (A Shares)
|
46,500
|
383,629
|
|
WH Group Ltd. (b)
|
7,588,955
|
3,908,276
|
|
Xinyi Glass Holdings Ltd.
|
268,000
|
395,728
|
|
TOTAL HONG KONG
|
24,781,881
|
||
Ireland - 0.7%
|
|||
CRH PLC
|
58,300
|
3,354,213
|
|
CRH PLC sponsored ADR
|
142,934
|
8,228,710
|
|
TOTAL IRELAND
|
11,582,923
|
||
Israel - 0.6%
|
|||
Bank Hapoalim BM (Reg.)
|
37,648
|
312,228
|
|
Wix.com Ltd. (a)
|
91,672
|
9,054,443
|
|
TOTAL ISRAEL
|
9,366,671
|
||
Italy - 1.8%
|
|||
Assicurazioni Generali SpA
|
462,523
|
9,594,399
|
|
Coca-Cola HBC AG
|
102,185
|
2,948,824
|
|
Eni SpA
|
186,320
|
2,880,880
|
|
Intesa Sanpaolo SpA
|
2,951,016
|
7,880,396
|
|
Terna - Rete Elettrica Nazionale
|
53,820
|
444,701
|
|
UniCredit SpA
|
177,885
|
4,333,833
|
|
TOTAL ITALY
|
28,083,033
|
||
Japan - 23.1%
|
|||
Ajinomoto Co., Inc.
|
255,800
|
10,852,974
|
|
ASAHI INTECC Co. Ltd.
|
38,000
|
774,913
|
|
Astellas Pharma, Inc.
|
169,200
|
2,560,058
|
|
BayCurrent Consulting, Inc.
|
11,800
|
406,567
|
|
Bridgestone Corp.
|
248,800
|
9,680,448
|
|
Canon, Inc.
|
270,700
|
6,663,028
|
|
Central Japan Railway Co.
|
16,600
|
2,132,403
|
|
Chubu Electric Power Co., Inc.
|
685,000
|
9,157,188
|
|
Dai Nippon Printing Co. Ltd.
|
42,500
|
1,163,459
|
|
Daiichi Sankyo Kabushiki Kaisha
|
44,800
|
1,319,524
|
|
Daiwa Securities Group, Inc.
|
309,800
|
1,765,175
|
|
DENSO Corp.
|
95,100
|
6,509,508
|
|
Disco Corp.
|
45,000
|
8,893,999
|
|
FANUC Corp.
|
6,700
|
190,557
|
|
Fast Retailing Co. Ltd.
|
49,700
|
11,436,517
|
|
FUJIFILM Holdings Corp.
|
62,000
|
3,670,697
|
|
Hamamatsu Photonics K.K.
|
48,400
|
2,244,107
|
|
Hirose Electric Co. Ltd.
|
19,800
|
2,402,619
|
|
Hitachi Construction Machinery Co. Ltd.
|
34,700
|
1,083,011
|
|
Hitachi Ltd.
|
222,600
|
14,831,330
|
|
Honda Motor Co. Ltd.
|
410,700
|
13,272,343
|
|
Hoya Corp.
|
84,184
|
9,347,349
|
|
Itochu Corp.
|
160,300
|
6,028,809
|
|
Japan Post Bank Co. Ltd.
|
803,400
|
6,452,269
|
|
JFE Holdings, Inc.
|
296,700
|
4,697,402
|
|
Kansai Electric Power Co., Inc.
|
218,200
|
3,110,394
|
|
Keisei Electric Railway Co.
|
800
|
30,670
|
|
Keyence Corp.
|
2,400
|
998,302
|
|
Kikkoman Corp.
|
10,300
|
596,500
|
|
Kintetsu Group Holdings Co. Ltd.
|
58,200
|
1,843,663
|
|
Kirin Holdings Co. Ltd.
|
124,300
|
1,747,949
|
|
Komatsu Ltd.
|
149,800
|
4,263,039
|
|
Lawson, Inc. (c)
|
57,900
|
2,766,163
|
|
Marubeni Corp.
|
123,550
|
2,024,846
|
|
Mazda Motor Corp.
|
449,500
|
4,683,303
|
|
Mitsubishi Chemical Holdings Corp.
|
884,300
|
5,289,572
|
|
Mitsubishi Corp.
|
290,500
|
14,367,765
|
|
Mitsubishi Electric Corp.
|
160,258
|
2,091,687
|
|
Mitsubishi UFJ Financial Group, Inc.
|
162,200
|
1,293,980
|
|
Mitsubishi UFJ Lease & Finance Co. Ltd.
|
171,300
|
1,114,842
|
|
Mitsui & Co. Ltd.
|
198,500
|
7,410,921
|
|
Nidec Corp.
|
102,400
|
5,328,328
|
|
Nintendo Co. Ltd.
|
55,100
|
2,362,517
|
|
Nippon Express Holdings, Inc.
|
40,100
|
2,086,098
|
|
Nippon Paint Holdings Co. Ltd.
|
276,000
|
2,135,991
|
|
Nissan Chemical Corp.
|
7,900
|
339,250
|
|
Nissan Motor Co. Ltd.
|
1,896,400
|
8,063,906
|
|
Nissan Motor Co. Ltd. sponsored ADR (c)
|
87,636
|
747,535
|
|
Nisshin Seifun Group, Inc.
|
40,600
|
535,911
|
|
Nitto Denko Corp.
|
119,300
|
8,157,777
|
|
OBIC Co. Ltd.
|
21,000
|
3,656,002
|
|
Olympus Corp.
|
651,400
|
8,822,184
|
|
Ono Pharmaceutical Co. Ltd.
|
245,500
|
4,637,970
|
|
Open House Group Co. Ltd.
|
15,600
|
528,167
|
|
Otsuka Holdings Co. Ltd.
|
110,000
|
4,192,996
|
|
Panasonic Holdings Corp.
|
923,400
|
10,628,387
|
|
Recruit Holdings Co. Ltd.
|
146,000
|
5,200,885
|
|
Renesas Electronics Corp. (a)
|
562,500
|
9,371,064
|
|
Ricoh Co. Ltd.
|
268,300
|
2,190,731
|
|
Shin-Etsu Chemical Co. Ltd.
|
420,100
|
13,390,169
|
|
Shin-Etsu Chemical Co. Ltd. ADR (c)
|
30,225
|
480,880
|
|
Shiseido Co. Ltd.
|
24,300
|
988,067
|
|
SoftBank Corp.
|
991,700
|
11,373,520
|
|
Sompo Holdings, Inc.
|
86,300
|
3,764,707
|
|
Sony Group Corp.
|
34,500
|
2,870,142
|
|
Subaru Corp.
|
237,800
|
4,591,904
|
|
Sumitomo Chemical Co. Ltd.
|
15,100
|
41,866
|
|
Sumitomo Corp.
|
223,100
|
4,598,625
|
|
Suntory Beverage & Food Ltd.
|
16,200
|
524,876
|
|
Tokio Marine Holdings, Inc.
|
396,200
|
8,743,541
|
|
Tokyo Electric Power Co., Inc. (a)
|
668,000
|
2,938,383
|
|
Tokyo Electron Ltd.
|
27,700
|
4,114,161
|
|
Tokyo Gas Co. Ltd.
|
45,000
|
1,044,469
|
|
Toppan, Inc.
|
108,000
|
2,613,616
|
|
Toyota Motor Corp.
|
592,095
|
10,201,272
|
|
Toyota Tsusho Corp.
|
166,800
|
9,968,219
|
|
USS Co. Ltd.
|
36,700
|
641,831
|
|
Yokogawa Electric Corp.
|
89,200
|
1,770,880
|
|
Z Holdings Corp.
|
539,800
|
1,624,279
|
|
ZOZO, Inc.
|
273,300
|
5,465,249
|
|
TOTAL JAPAN
|
361,906,205
|
||
Luxembourg - 0.2%
|
|||
ArcelorMittal SA (Netherlands)
|
113,703
|
3,024,398
|
|
Eurofins Scientific SA
|
11,448
|
705,591
|
|
TOTAL LUXEMBOURG
|
3,729,989
|
||
Netherlands - 6.1%
|
|||
ASML Holding NV:
|
|||
(depository receipt)
|
5,791
|
3,825,129
|
|
(Netherlands)
|
46,492
|
30,569,799
|
|
ING Groep NV (Certificaten Van Aandelen)
|
433,534
|
6,158,344
|
|
Koninklijke Ahold Delhaize NV
|
185,938
|
6,082,031
|
|
Koninklijke Philips Electronics NV
|
460,326
|
10,344,255
|
|
NN Group NV
|
27,142
|
1,046,582
|
|
NN Group NV rights (a)(d)
|
27,142
|
32,963
|
|
Shell PLC:
|
|||
(London)
|
957,815
|
29,285,458
|
|
rights (a)(d)
|
957,815
|
317,037
|
|
Wolters Kluwer NV
|
57,209
|
6,898,245
|
|
Wolters Kluwer NV rights (a)(d)
|
57,209
|
44,665
|
|
TOTAL NETHERLANDS
|
94,604,508
|
||
New Zealand - 0.2%
|
|||
Meridian Energy Ltd.
|
630,970
|
2,018,567
|
|
Xero Ltd. (a)
|
10,758
|
872,028
|
|
TOTAL NEW ZEALAND
|
2,890,595
|
||
Norway - 0.6%
|
|||
DNB Bank ASA
|
355,638
|
7,029,739
|
|
Gjensidige Forsikring ASA
|
192,374
|
2,994,620
|
|
TOTAL NORWAY
|
10,024,359
|
||
Singapore - 1.9%
|
|||
Oversea-Chinese Banking Corp. Ltd.
|
865,200
|
8,034,526
|
|
STMicroelectronics NV (France)
|
240,579
|
11,354,060
|
|
United Overseas Bank Ltd.
|
483,255
|
10,169,649
|
|
TOTAL SINGAPORE
|
29,558,235
|
||
Spain - 3.2%
|
|||
ACS Actividades de Construccion y Servicios SA
|
121,081
|
4,252,619
|
|
Aena SME SA (b)
|
25,407
|
3,994,762
|
|
Banco Bilbao Vizcaya Argentaria SA
|
606,184
|
4,782,723
|
|
Banco Santander SA (Spain)
|
921,266
|
3,596,263
|
|
Iberdrola SA
|
1,219,110
|
14,461,977
|
|
Industria de Diseno Textil SA
|
335,325
|
12,846,754
|
|
Naturgy Energy Group SA
|
17,587
|
509,944
|
|
Redeia Corp. SA
|
182,648
|
2,971,806
|
|
Telefonica SA
|
761,230
|
3,154,287
|
|
TOTAL SPAIN
|
50,571,135
|
||
Sweden - 3.3%
|
|||
ASSA ABLOY AB (B Shares)
|
159,102
|
3,580,740
|
|
Atlas Copco AB:
|
|||
(A Shares)
|
202,645
|
2,679,214
|
|
(B Shares)
|
131,256
|
1,514,746
|
|
Epiroc AB (A Shares)
|
148,412
|
2,847,342
|
|
Essity AB (B Shares)
|
125,514
|
2,931,354
|
|
Evolution AB (b)
|
42,378
|
4,591,385
|
|
Fastighets AB Balder (a)
|
878,696
|
4,213,503
|
|
Industrivarden AB (A Shares)
|
81,720
|
2,132,475
|
|
Kinnevik AB (B Shares) (a)
|
64,062
|
754,514
|
|
Securitas AB (B Shares)
|
61,458
|
501,050
|
|
Skandinaviska Enskilda Banken AB (A Shares)
|
365,643
|
4,246,381
|
|
Svenska Handelsbanken AB (A Shares)
|
741,575
|
6,187,745
|
|
Swedbank AB (A Shares)
|
79,632
|
1,412,116
|
|
Swedish Orphan Biovitrum AB (a)
|
175,358
|
3,389,117
|
|
Swedish Orphan Biovitrum AB rights 9/14/23 (a)(c)
|
175,358
|
158,404
|
|
Volvo AB (B Shares)
|
548,444
|
11,080,588
|
|
TOTAL SWEDEN
|
52,220,674
|
||
Switzerland - 5.2%
|
|||
ABB Ltd.:
|
|||
(Reg.)
|
278,749
|
10,600,334
|
|
sponsored ADR
|
82,416
|
3,124,391
|
|
Alcon, Inc. (Switzerland)
|
35,848
|
2,999,812
|
|
Baloise Holdings AG
|
9,006
|
1,408,988
|
|
Compagnie Financiere Richemont SA
|
8,645
|
1,230,474
|
|
Compagnie Financiere Richemont SA Series A
|
93,167
|
13,214,957
|
|
Givaudan SA
|
2,436
|
8,129,652
|
|
Kuehne & Nagel International AG
|
5,826
|
1,753,703
|
|
Novartis AG
|
288,260
|
29,010,996
|
|
Schindler Holding AG (participation certificate)
|
3,854
|
860,153
|
|
Swiss Life Holding AG
|
11,187
|
7,023,615
|
|
Zurich Insurance Group Ltd.
|
2,580
|
1,212,090
|
|
TOTAL SWITZERLAND
|
80,569,165
|
||
United Kingdom - 12.0%
|
|||
3i Group PLC
|
159,401
|
4,025,458
|
|
AstraZeneca PLC (United Kingdom)
|
96,556
|
12,969,666
|
|
Aviva PLC
|
705,160
|
3,351,649
|
|
BAE Systems PLC
|
885,223
|
11,266,916
|
|
Barclays PLC
|
1,388,514
|
2,586,329
|
|
Barclays PLC sponsored ADR
|
61,806
|
464,163
|
|
BP PLC
|
2,011,159
|
12,427,530
|
|
BP PLC sponsored ADR
|
169,657
|
6,307,847
|
|
British American Tobacco PLC (United Kingdom)
|
86,376
|
2,861,152
|
|
BT Group PLC
|
431,540
|
631,956
|
|
Bunzl PLC
|
5,175
|
185,526
|
|
Burberry Group PLC
|
190,055
|
5,258,235
|
|
Centrica PLC
|
2,715,168
|
5,219,555
|
|
CK Hutchison Holdings Ltd.
|
907,000
|
4,943,146
|
|
CNH Industrial NV
|
3,733
|
51,732
|
|
Coca-Cola European Partners PLC
|
42,150
|
2,702,237
|
|
Diageo PLC
|
42,697
|
1,748,571
|
|
Hargreaves Lansdown PLC
|
227,339
|
2,192,203
|
|
HSBC Holdings PLC:
|
|||
(United Kingdom)
|
1,985,785
|
14,649,568
|
|
sponsored ADR (c)
|
203,948
|
7,611,339
|
|
Imperial Brands PLC
|
186,001
|
4,211,359
|
|
InterContinental Hotel Group PLC
|
73,442
|
5,539,383
|
|
InterContinental Hotel Group PLC ADR
|
53,632
|
4,074,423
|
|
Legal & General Group PLC
|
1,110,637
|
3,077,010
|
|
Lloyds Banking Group PLC
|
4,825,139
|
2,577,895
|
|
Pearson PLC
|
78,764
|
834,798
|
|
Phoenix Group Holdings PLC
|
45,785
|
302,182
|
|
Reckitt Benckiser Group PLC
|
119,763
|
8,642,786
|
|
Reckitt Benckiser Group PLC ADR
|
13,198
|
190,183
|
|
Rolls-Royce Holdings PLC (a)
|
4,062,722
|
11,397,253
|
|
Sage Group PLC
|
518,510
|
6,377,999
|
|
Schroders PLC
|
793,672
|
4,140,335
|
|
Standard Chartered PLC (United Kingdom)
|
42,679
|
384,732
|
|
Tesco PLC
|
2,204,505
|
7,416,582
|
|
Unilever PLC
|
390,704
|
19,952,967
|
|
Vodafone Group PLC
|
6,337,778
|
5,875,463
|
|
Wise PLC (a)
|
173,764
|
1,409,235
|
|
TOTAL UNITED KINGDOM
|
187,859,363
|
||
United States of America - 5.8%
|
|||
CSL Ltd.
|
4,049
|
715,049
|
|
GSK PLC
|
395,124
|
6,920,971
|
|
GSK PLC sponsored ADR
|
144,115
|
5,062,760
|
|
Holcim AG
|
172,696
|
11,448,551
|
|
Monday.com Ltd. (a)
|
3,728
|
661,496
|
|
Nestle SA (Reg. S)
|
209,510
|
25,191,361
|
|
QIAGEN NV (Germany) (a)
|
143,146
|
6,548,747
|
|
Roche Holding AG:
|
|||
(Bearer)
|
3,652
|
1,141,883
|
|
(participation certificate)
|
46,315
|
13,592,916
|
|
Sanofi SA
|
114,899
|
12,237,200
|
|
Schneider Electric SA
|
22,455
|
3,848,975
|
|
Tenaris SA sponsored ADR
|
106,000
|
3,384,580
|
|
TOTAL UNITED STATES OF AMERICA
|
90,754,489
|
||
|
TOTAL COMMON STOCKS
(Cost $1,305,694,931)
|
1,522,149,080
|
||
Nonconvertible Preferred Stocks - 1.1%
|
|||
Shares
|
Value ($)
|
||
Germany - 1.1%
|
|||
Dr. Ing. h.c. F. Porsche AG Series F (b)
|
61,157
|
6,754,243
|
|
Volkswagen AG
|
82,993
|
10,156,881
|
|
|
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $18,785,051)
|
16,911,124
|
||
Money Market Funds - 1.9%
|
|||
Shares
|
Value ($)
|
||
Fidelity Cash Central Fund 5.43% (e)
|
19,921,998
|
19,925,982
|
|
Fidelity Securities Lending Cash Central Fund 5.44% (e)(f)
|
10,180,920
|
10,181,938
|
|
|
TOTAL MONEY MARKET FUNDS
(Cost $30,107,920)
|
30,107,920
|
||
|
TOTAL INVESTMENT IN SECURITIES - 100.3%
(Cost $1,354,587,902)
|
1,569,168,124
|
NET OTHER ASSETS (LIABILITIES) - (0.3)%
|
(4,055,580)
|
NET ASSETS - 100.0%
|
1,565,112,544
|
Futures Contracts
|
|||||
Number
of contracts
|
Expiration
Date
|
Notional
Amount ($)
|
Value ($)
|
Unrealized
Appreciation/
(Depreciation) ($)
|
|
Purchased
|
|||||
Equity Index Contracts
|
|||||
ICE MSCI EAFE Index Contracts (United States)
|
179
|
Sep 2023
|
18,878,235
|
(13,230)
|
(13,230)
|
The notional amount of futures purchased as a percentage of Net Assets is 1.2%
|
|||||
Legend
(a)
|
Non-income producing
|
(b)
|
Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $23,561,367 or 1.5% of net assets.
|
(c)
|
Security or a portion of the security is on loan at period end.
|
(d)
|
Security or a portion of the security purchased on a delayed delivery or when-issued basis.
|
(e)
|
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
|
(f)
|
Investment made with cash collateral received from securities on loan.
|
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate
|
Value,
beginning
of period ($)
|
Purchases ($)
|
Sales
Proceeds ($)
|
Dividend
Income ($)
|
Realized
Gain (loss) ($)
|
Change in
Unrealized
appreciation
(depreciation) ($)
|
Value,
end
of period ($)
|
% ownership,
end
of period
|
Fidelity Cash Central Fund 5.43%
|
18,255,010
|
376,399,359
|
374,728,387
|
864,826
|
-
|
-
|
19,925,982
|
0.1%
|
Fidelity Securities Lending Cash Central Fund 5.44%
|
5,934,742
|
212,621,667
|
208,374,471
|
307,137
|
-
|
-
|
10,181,938
|
0.0%
|
Total
|
24,189,752
|
589,021,026
|
583,102,858
|
1,171,963
|
-
|
-
|
30,107,920
|
|
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2023, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date:
|
||||
Description
|
Total ($)
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Investments in Securities:
|
||||
Equities:
|
||||
Communication Services
|
46,222,416
|
21,401,372
|
24,821,044
|
-
|
Consumer Discretionary
|
220,425,141
|
101,629,518
|
118,795,623
|
-
|
Consumer Staples
|
135,809,411
|
54,136,442
|
81,672,969
|
-
|
Energy
|
76,301,521
|
11,269,196
|
65,032,325
|
-
|
Financials
|
254,516,045
|
164,643,829
|
89,872,216
|
-
|
Health Care
|
193,454,441
|
53,144,264
|
140,310,177
|
-
|
Industrials
|
276,926,434
|
175,445,549
|
101,480,885
|
-
|
Information Technology
|
133,067,375
|
38,814,188
|
94,253,187
|
-
|
Materials
|
125,790,091
|
91,224,621
|
34,565,470
|
-
|
Real Estate
|
12,686,219
|
12,677,981
|
8,238
|
-
|
Utilities
|
63,861,110
|
41,784,744
|
22,076,366
|
-
|
Money Market Funds
|
30,107,920
|
30,107,920
|
-
|
-
|
Total Investments in Securities:
|
1,569,168,124
|
796,279,624
|
772,888,500
|
-
|
Derivative Instruments:
|
||||
Liabilities
|
||||
Futures Contracts
|
(13,230)
|
(13,230)
|
-
|
-
|
Total Liabilities
|
(13,230)
|
(13,230)
|
-
|
-
|
Total Derivative Instruments:
|
(13,230)
|
(13,230)
|
-
|
-
|
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of August 31, 2023. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type
|
Value
|
|
Asset ($)
|
Liability ($)
|
|
Equity Risk
|
||
Futures Contracts (a)
|
0
|
(13,230)
|
Total Equity Risk
|
0
|
(13,230)
|
Total Value of Derivatives
|
0
|
(13,230)
|
(a)Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
Fidelity® International Enhanced Index Fund
Statement of Assets and Liabilities
|
||||
August 31, 2023
|
||||
Assets
|
||||
Investment in securities, at value (including securities loaned of $9,804,200) - See accompanying schedule:
|
||||
Unaffiliated issuers (cost $1,324,479,982)
|
$
|
1,539,060,204
|
||
Fidelity Central Funds (cost $30,107,920)
|
30,107,920
|
|||
Total Investment in Securities (cost $1,354,587,902)
|
$
|
1,569,168,124
|
||
Segregated cash with brokers for derivative instruments
|
622,599
|
|||
Cash
|
14,257
|
|||
Foreign currency held at value (cost $461,070)
|
461,451
|
|||
Receivable for fund shares sold
|
304,102
|
|||
Dividends receivable
|
3,317,973
|
|||
Reclaims receivable
|
3,361,308
|
|||
Interest receivable
|
631
|
|||
Distributions receivable from Fidelity Central Funds
|
56,763
|
|||
Other receivables
|
66,163
|
|||
Total assets
|
1,577,373,371
|
|||
Liabilities
|
||||
Payable for investments purchased on a delayed delivery basis
|
$
|
394,665
|
||
Payable for fund shares redeemed
|
869,557
|
|||
Accrued management fee
|
712,707
|
|||
Payable for daily variation margin on futures contracts
|
98,513
|
|||
Other payables and accrued expenses
|
3,360
|
|||
Collateral on securities loaned
|
10,182,025
|
|||
Total Liabilities
|
12,260,827
|
|||
Net Assets
|
$
|
1,565,112,544
|
||
Net Assets consist of:
|
||||
Paid in capital
|
$
|
1,516,313,074
|
||
Total accumulated earnings (loss)
|
48,799,470
|
|||
Net Assets
|
$
|
1,565,112,544
|
||
Net Asset Value, offering price and redemption price per share ($1,565,112,544 ÷ 149,918,343 shares)
|
$
|
10.44
|
||
Statement of Operations
|
||||
Year ended
August 31, 2023
|
||||
Investment Income
|
||||
Dividends
|
$
|
52,511,526
|
||
Interest
|
45,321
|
|||
Income from Fidelity Central Funds (including $307,137 from security lending)
|
1,171,963
|
|||
Income before foreign taxes withheld
|
$
|
53,728,810
|
||
Less foreign taxes withheld
|
(4,648,683)
|
|||
Total Income
|
49,080,127
|
|||
Expenses
|
||||
Management fee
|
$
|
8,333,434
|
||
Independent trustees' fees and expenses
|
8,052
|
|||
Interest
|
16,731
|
|||
Total expenses before reductions
|
8,358,217
|
|||
Expense reductions
|
(441)
|
|||
Total expenses after reductions
|
8,357,776
|
|||
Net Investment income (loss)
|
40,722,351
|
|||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
(34,624,969)
|
|||
Foreign currency transactions
|
(599,124)
|
|||
Futures contracts
|
3,144,313
|
|||
Total net realized gain (loss)
|
(32,079,780)
|
|||
Change in net unrealized appreciation (depreciation) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
261,104,444
|
|||
Assets and liabilities in foreign currencies
|
281,786
|
|||
Futures contracts
|
(176,537)
|
|||
Total change in net unrealized appreciation (depreciation)
|
261,209,693
|
|||
Net gain (loss)
|
229,129,913
|
|||
Net increase (decrease) in net assets resulting from operations
|
$
|
269,852,264
|
||
Statement of Changes in Net Assets
|
||||
Year ended
August 31, 2023
|
Year ended
August 31, 2022
|
|||
Increase (Decrease) in Net Assets
|
||||
Operations
|
||||
Net investment income (loss)
|
$
|
40,722,351
|
$
|
44,150,052
|
Net realized gain (loss)
|
(32,079,780)
|
(40,880,584)
|
||
Change in net unrealized appreciation (depreciation)
|
261,209,693
|
(317,751,294)
|
||
Net increase (decrease) in net assets resulting from operations
|
269,852,264
|
(314,481,826)
|
||
Distributions to shareholders
|
(33,763,256)
|
(40,640,601)
|
||
Share transactions
|
||||
Proceeds from sales of shares
|
600,539,896
|
742,204,628
|
||
Reinvestment of distributions
|
24,033,209
|
33,150,295
|
||
Cost of shares redeemed
|
(600,353,896)
|
(794,518,975)
|
||
Net increase (decrease) in net assets resulting from share transactions
|
24,219,209
|
(19,164,052)
|
||
Total increase (decrease) in net assets
|
260,308,217
|
(374,286,479)
|
||
Net Assets
|
||||
Beginning of period
|
1,304,804,327
|
1,679,090,806
|
||
End of period
|
$
|
1,565,112,544
|
$
|
1,304,804,327
|
Other Information
|
||||
Shares
|
||||
Sold
|
64,929,566
|
72,917,785
|
||
Issued in reinvestment of distributions
|
2,529,811
|
3,024,662
|
||
Redeemed
|
(63,195,426)
|
(75,511,518)
|
||
Net increase (decrease)
|
4,263,951
|
430,929
|
||
Financial Highlights
Fidelity® International Enhanced Index Fund
|
Years ended August 31,
|
2023
|
2022
|
2021
|
2020
|
2019
|
|||||
Selected Per-Share Data
|
||||||||||
Net asset value, beginning of period
|
$
|
8.96
|
$
|
11.56
|
$
|
9.20
|
$
|
8.98
|
$
|
9.83
|
Income from Investment Operations
|
||||||||||
Net investment income (loss) A,B
|
.26
|
.31
|
.25
|
.19
|
.30
|
|||||
Net realized and unrealized gain (loss)
|
1.45
|
(2.61)
|
2.28
|
.32
|
(.95)
|
|||||
Total from investment operations
|
1.71
|
(2.30)
|
2.53
|
.51
|
(.65)
|
|||||
Distributions from net investment income
|
(.23)
|
(.30)
|
(.17)
|
(.29)
|
(.20)
|
|||||
Total distributions
|
(.23)
|
(.30)
|
(.17)
|
(.29)
|
(.20)
|
|||||
Net asset value, end of period
|
$
|
10.44
|
$
|
8.96
|
$
|
11.56
|
$
|
9.20
|
$
|
8.98
|
Total Return C
|
19.29%
|
(20.35)%
|
27.77%
|
5.55%
|
(6.51)%
|
|||||
Ratios to Average Net Assets B,D,E
|
||||||||||
Expenses before reductions
|
.55%
|
.57%
|
.59%
|
.59%
|
.59%
|
|||||
Expenses net of fee waivers, if any
|
.55%
|
.57%
|
.59%
|
.59%
|
.59%
|
|||||
Expenses net of all reductions
|
.55%
|
.57%
|
.59%
|
.59%
|
.59%
|
|||||
Net investment income (loss)
|
2.69%
|
2.99%
|
2.32%
|
2.13%
|
3.27%
|
|||||
Supplemental Data
|
||||||||||
Net assets, end of period (000 omitted)
|
$
|
1,565,113
|
$
|
1,304,804
|
$
|
1,679,091
|
$
|
1,182,923
|
$
|
1,505,889
|
Portfolio turnover rate F
|
105%
|
114%
|
82%
|
75%
|
103%
|
ACalculated based on average shares outstanding during the period.
BNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
CTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
DFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
EExpense 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.
FAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
For the period ended August 31, 2023
1. Organization.
Fidelity Large Cap Growth Enhanced Index Fund, Fidelity Large Cap Value Enhanced Index Fund, Fidelity Large Cap Core Enhanced Index Fund, Fidelity Mid Cap Enhanced Index Fund and Fidelity International Enhanced Index Fund (the Funds) are funds of Fidelity Commonwealth Trust II (the Trust) and are authorized to issue an unlimited number of shares. Fidelity Large Cap Growth Enhanced Index Fund is a non-diversified fund. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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 Delaware statutory trust.
Effective September 18, 2023, the Funds were closed to new accounts with certain exceptions.
2. Significant Accounting Policies.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. Each Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds (ETFs) but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of each Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has designated each Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, each Fund attempts to obtain prices from one or more third party pricing services or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages each Fund's fair valuation practices and maintains the fair valuation policies and procedures. Each Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - unadjusted quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, ETFs and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 in the hierarchy. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of August 31, 2023 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 of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and for certain Funds include proceeds received from litigation. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Funds represent a return of capital or capital gain. The Funds determine the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends or foreign taxes withheld, as applicable. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable or reclaims receivable, as applicable.
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 August 31, 2023, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
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. In addition, the Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
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), redemptions in-kind, capital loss carryforwards 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 Large Cap Growth Enhanced Index Fund
|
$1,484,081,191
|
$924,087,127
|
(36,267,889)
|
$887,819,238
|
Fidelity Large Cap Value Enhanced Index Fund
|
4,968,089,772
|
900,399,523
|
(199,019,226)
|
701,380,297
|
Fidelity Large Cap Core Enhanced Index Fund
|
1,573,456,548
|
559,776,679
|
(47,912,161)
|
511,864,518
|
Fidelity Mid Cap Enhanced Index Fund
|
1,514,019,808
|
240,629,125
|
(72,011,770)
|
168,617,355
|
Fidelity International Enhanced Index Fund
|
1,364,093,111
|
244,125,749
|
(39,050,736)
|
205,075,013
|
The tax-based components of distributable earnings as of period end were as follows for each Fund:
Undistributed ordinary income
|
Undistributed long-term capital gain
|
Capital loss carryforward
|
Net unrealized appreciation (depreciation) on securities and other investments
|
|
Fidelity Large Cap Growth Enhanced Index Fund
|
$9,738,781
|
$505,476
|
$-
|
$887,819,238
|
Fidelity Large Cap Value Enhanced Index Fund
|
66,952,451
|
72,771,244
|
-
|
701,380,297
|
Fidelity Large Cap Core Enhanced Index Fund
|
13,332,534
|
-
|
(38,240,595)
|
511,864,518
|
Fidelity Mid Cap Enhanced Index Fund
|
9,469,584
|
-
|
(62,913,553)
|
168,617,355
|
Fidelity International Enhanced Index Fund
|
35,960,056
|
-
|
(192,178,322)
|
205,017,734
|
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 Large Cap Core Enhanced Index Fund
|
(38,240,595)
|
-
|
(38,240,595)
|
Fidelity Mid Cap Enhanced Index Fund
|
(58,232,433)
|
(4,681,120)
|
(62,913,553)
|
Fidelity International Enhanced Index Fund
|
(174,393,866)
|
(17,784,456)
|
(192,178,322)
|
The tax character of distributions paid was as follows:
August 31, 2023
|
|||
Ordinary Income
|
Long-term Capital Gains
|
Total
|
|
Fidelity Large Cap Growth Enhanced Index Fund
|
$10,050,462
|
$-
|
$10,050,462
|
Fidelity Large Cap Value Enhanced Index Fund
|
84,574,965
|
172,625,609
|
257,200,574
|
Fidelity Large Cap Core Enhanced Index Fund
|
14,695,385
|
7,597,614
|
22,292,999
|
Fidelity Mid Cap Enhanced Index Fund
|
16,855,170
|
40,605,634
|
57,460,804
|
Fidelity International Enhanced Index Fund
|
33,763,256
|
-
|
33,763,256
|
August 31, 2022
|
|||
Ordinary Income
|
Long-term Capital Gains
|
Total
|
|
Fidelity Large Cap Growth Enhanced Index Fund
|
$84,709,586
|
$150,046,589
|
$234,756,175
|
Fidelity Large Cap Value Enhanced Index Fund
|
298,040,890
|
399,041,651
|
697,082,541
|
Fidelity Large Cap Core Enhanced Index Fund
|
93,609,903
|
110,605,741
|
204,215,644
|
Fidelity Mid Cap Enhanced Index Fund
|
40,554,225
|
217,691,053
|
258,245,278
|
Fidelity International Enhanced Index Fund
|
40,640,601
|
-
|
40,640,601
|
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
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.
3. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. Each Fund's investment objectives allow for various types of derivative instruments, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
Derivatives were used to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the objectives may not be achieved.
Derivatives were used to increase or decrease exposure to the following risk(s):
Equity Risk
|
Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment.
|
Funds are also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that a fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to a fund. Counterparty credit risk related to exchange-traded contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. Futures contracts were used to manage exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end, and is representative of volume of activity during the period unless an average notional amount is presented. Any securities deposited to meet initial margin requirements are identified in the Schedule of Investments. Any cash deposited to meet initial margin requirements is presented as segregated cash with brokers for derivative instruments in the Statement of Assets and Liabilities.
4. 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 ($)
|
|
Fidelity Large Cap Growth Enhanced Index Fund
|
2,589,884,949
|
2,152,923,266
|
Fidelity Large Cap Value Enhanced Index Fund
|
4,868,646,569
|
4,982,369,127
|
Fidelity Large Cap Core Enhanced Index Fund
|
2,034,084,638
|
2,571,143,089
|
Fidelity Mid Cap Enhanced Index Fund
|
1,832,229,584
|
1,765,707,575
|
Fidelity International Enhanced Index Fund
|
1,589,729,821
|
1,556,745,579
|
Unaffiliated Redemptions In-Kind. Shares that were redeemed in-kind for investments, including accrued interest and cash, if any, are shown in the table below. The net realized gain or loss on investments delivered through in-kind redemptions is included in the "Net realized gain (loss) on: Redemptions in-kind" line in the accompanying Statement of Operations. The amount of the in-kind redemptions is included in share transactions in the accompanying Statement of Changes in Net Assets. There was no gain or loss for federal income tax purposes.
Shares
|
Total net realized gain or loss ($)
|
Total Proceeds ($)
|
|
Fidelity Large Cap Growth Enhanced Index Fund
|
2,957,746
|
14,287,867
|
83,970,422
|
Fidelity Large Cap Value Enhanced Index Fund
|
25,502,664
|
117,706,408
|
375,867,257
|
Fidelity Large Cap Core Enhanced Index Fund
|
1,958,911
|
23,998,066
|
41,117,535
|
Fidelity Mid Cap Enhanced Index Fund
|
12,107,173
|
69,766,859
|
200,533,885
|
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Funds with investment management related services for which the Funds pay a monthly management fee. Each Fund pays an all-inclusive management fee based on the annual rates noted in the following table; and the investment adviser pays all ordinary operating expenses of each Fund, except fees and expenses of the independent Trustees and certain miscellaneous expenses such as proxy and shareholder meeting expenses. The management fees are reduced by an amount equal to the fees and expenses paid by the Funds to the independent Trustees.
Fidelity Large Cap Growth Enhanced Index Fund
|
.39%
|
Fidelity Large Cap Value Enhanced Index Fund
|
.39%
|
Fidelity Large Cap Core Enhanced Index Fund
|
.39%
|
Fidelity Mid Cap Enhanced Index Fund
|
.45%
|
Fidelity International Enhanced Index Fund
|
.55%
|
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount
|
|
Fidelity Large Cap Growth Enhanced Index Fund
|
$4,259
|
Fidelity Large Cap Value Enhanced Index Fund
|
3,848
|
Fidelity Large Cap Core Enhanced Index Fund
|
1,974
|
Fidelity Mid Cap Enhanced Index Fund
|
1,614
|
Fidelity International Enhanced Index Fund
|
579
|
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), each Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing each Fund to borrow from, or lend money to, other participating affiliated funds. Any open loans, including accrued interest, at period end are presented as Notes payable to affiliates in the Statement of Assets and Liabilities. Activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender
|
Average Loan Balance
|
Weighted Average Interest Rate
|
Interest Expense
|
|
Fidelity Large Cap Growth Enhanced Index Fund
|
Borrower
|
$54,770,800
|
5.44%
|
$41,394
|
Fidelity Large Cap Value Enhanced Index Fund
|
Borrower
|
$61,479,000
|
4.35%
|
$29,724
|
Fidelity Large Cap Core Enhanced Index Fund
|
Borrower
|
$22,101,250
|
3.68%
|
$27,112
|
Fidelity Mid Cap Enhanced Index Fund
|
Borrower
|
$4,314,500
|
4.84%
|
$2,322
|
Fidelity International Enhanced Index Fund
|
Borrower
|
$12,807,600
|
4.70%
|
$16,731
|
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($)
|
Sales ($)
|
Realized Gain (Loss) ($)
|
|
Fidelity Large Cap Growth Enhanced Index Fund
|
98,630,928
|
59,443,059
|
3,980,573
|
Fidelity Large Cap Value Enhanced Index Fund
|
202,835,859
|
125,091,754
|
12,994,217
|
Fidelity Large Cap Core Enhanced Index Fund
|
78,182,956
|
64,476,701
|
726,303
|
Fidelity Mid Cap Enhanced Index Fund
|
65,914,545
|
39,218,370
|
(2,777,171)
|
Fidelity International Enhanced Index Fund
|
19,322,590
|
2,972,597
|
(142,908)
|
Other. During the period, the investment adviser reimbursed the Funds for certain losses as follows:
Amount ($)
|
|
Fidelity Large Cap Value Enhanced Index Fund
|
3,045
|
Fidelity Large Cap Core Enhanced Index Fund
|
1,353
|
6. Investments in Fidelity Central Funds.
Funds may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund
|
Investment Manager
|
Investment Objective
|
Investment Practices
|
Expense RatioA
|
Fidelity Money Market Central Funds
|
Fidelity Management & Research Company LLC (FMR)
|
Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity.
|
Short-term Investments
|
Less than .005%
|
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
7. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The commitment fees on the pro-rata portion of the line of credit are borne by the investment adviser. During the period, there were no borrowings on this line of credit.
8. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, a fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS
|
Security Lending Income From Securities Loaned to NFS
|
Value of Securities Loaned to NFS at Period End
|
|
Fidelity Large Cap Growth Enhanced Index Fund
|
$310
|
$-
|
$-
|
Fidelity Large Cap Value Enhanced Index Fund
|
$17,561
|
$374
|
$-
|
Fidelity Large Cap Core Enhanced Index Fund
|
$3,721
|
$-
|
$-
|
Fidelity Mid Cap Enhanced Index Fund
|
$13,555
|
$3,917
|
$-
|
Fidelity International Enhanced Index Fund
|
$33,238
|
$9
|
$-
|
9. Bank Borrowings.
Each Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity requirements. Each Fund has established borrowing arrangements with certain banks. The interest rate on the borrowings is the bank's base rate, as revised from time to time. Any open loans, including accrued interest, at period end are presented under the caption "Notes payable" in the Statement of Assets and Liabilities, if applicable. Activity in this program during the period for which loans were outstanding was as follows:
Average Loan Balance
|
Weighted Average Interest Rate
|
Interest Expense
|
|
Fidelity Large Cap Core Enhanced Index Fund
|
$8,149,000
|
3.58%
|
$810
|
10. Expense Reductions.
Through arrangements with each applicable Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
Custodian credits
|
|
Fidelity Large Cap Growth Enhanced Index Fund
|
$2,918
|
Fidelity Large Cap Value Enhanced Index Fund
|
1,773
|
Fidelity Large Cap Core Enhanced Index Fund
|
2,087
|
Fidelity Mid Cap Enhanced Index Fund
|
1,764
|
Fidelity International Enhanced Index Fund
|
441
|
11. 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.
At the end of the period, the following mutual funds managed by the investment adviser or its affiliates were the owners of record of 10% or more of the total outstanding shares.
Fund
|
Strategic Advisers Fidelity U.S. Total Stock Fund
|
Fidelity Large Cap Value Enhanced Index Fund
|
59%
|
Mutual funds managed by the investment adviser or its affiliates, in aggregate, were the owners of record of more than 20% of the total outstanding shares.
Fund
|
% of shares held
|
Fidelity Large Cap Value Enhanced Index Fund
|
61%
|
12. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer. Significant concentrations in security types, issuers, industries, sectors, and geographic locations may magnify the factors that affect a fund's performance.
13. Proposed Reorganization.
Board of Trustees of each Fund approved an Agreement and Plan of Reorganization (the Agreement) to reorganize each Fund (Target Fund) into a newly created exchange traded fund ("ETF"), as noted in the below table. The Agreement provides for shareholders of each Target Fund to receive ETF shares equal in value to the number of shares of the Target Fund shares they own on the day the reorganization is effective. Each Target Fund will be the accounting survivor after the reorganization. As such, performance and financial history prior to the reorganization will be that of the Target Fund (Predecessor Funds). Historical share transactions and per share information for the Predecessor Funds will be retroactively adjusted to reflect the change in capital structure due to the reorganization. The reorganization does not require shareholder approval and is expected to become effective on November 17, 2023. The reorganization will qualify as a tax-free reorganization for federal income tax purposes with no gain or loss to be recognized by the funds or their shareholders.
Current Mutual Funds (Target and Predecessor Funds)
|
New ETFs
|
Fidelity International Enhanced Index Fund
|
Fidelity Enhanced International ETF
|
Fidelity Large Cap Core Enhanced Index Fund
|
Fidelity Enhanced Large Cap Core ETF
|
Fidelity Large Cap Growth Enhanced Index Fund
|
Fidelity Enhanced Large Cap Growth ETF
|
Fidelity Large Cap Value Enhanced Index Fund
|
Fidelity Enhanced Large Cap Value ETF
|
Fidelity Mid Cap Enhanced Index Fund
|
Fidelity Enhanced Mid Cap ETF
|
To the Board of Trustees of Fidelity Commonwealth Trust II and Shareholders of Fidelity Large Cap Growth Enhanced Index Fund, Fidelity Large Cap Value Enhanced Index Fund, Fidelity Large Cap Core Enhanced Index Fund, Fidelity Mid Cap Enhanced Index Fund, and Fidelity International Enhanced Index Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Fidelity Large Cap Growth Enhanced Index Fund, Fidelity Large Cap Value Enhanced Index Fund, Fidelity Large Cap Core Enhanced Index Fund, Fidelity Mid Cap Enhanced Index Fund, and Fidelity International Enhanced Index Fund, (five of the funds constituting Fidelity Commonwealth Trust II, hereafter collectively referred to as the "Funds") as of August 31, 2023, the related statements of operations for the year ended August 31, 2023, the statements of changes in net assets for each of the two years in the period ended August 31, 2023, including the related notes, and the financial highlights for each of the five years in the period ended August 31, 2023 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of August 31, 2023, the results of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2023 and each of the financial highlights for each of the five years in the period ended August 31, 2023 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements 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 of these financial statements 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 are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, 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. 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. Our procedures included confirmation of securities owned as of August 31, 2023 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
October 11, 2023
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
TRUSTEES AND OFFICERS
The Trustees, Members of the Advisory Board (if any), and officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, oversee management of the risks associated with such activities and contractual arrangements, and review each fund's performance. Except for Vijay Advani, each of the Trustees oversees 322 funds. Mr. Advani oversees 215 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the funds is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The funds' Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing each fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the funds, is provided below.
Board Structure and Oversight Function. Robert A. Lawrence is an interested person and currently serves as Chair. The Trustees have determined that an interested Chair is appropriate and benefits shareholders because an interested Chair has a personal and professional stake in the quality and continuity of services provided to the funds. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chair, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chair and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. David M. Thomas serves as Lead Independent Trustee and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The funds' Board oversees Fidelity's high income and certain equity funds, and other Boards oversee Fidelity's alternative investment, investment-grade bond, money market, asset allocation, and other equity funds. The asset allocation funds may invest in Fidelity® funds overseen by the funds' Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, each fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the funds' activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the funds' business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the funds are carried out by or through FMR, its affiliates, and other service providers, the funds' exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the funds' activities, oversight is exercised primarily through the Operations, Audit, and Compliance Committees. Appropriate personnel, including but not limited to the funds' Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the funds' Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Bettina Doulton (1964)
Year of Election or Appointment: 2020
Trustee
Ms. Doulton also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Doulton served in a variety of positions at Fidelity Investments, including as a managing director of research (2006-2007), portfolio manager to certain Fidelity® funds (1993-2005), equity analyst and portfolio assistant (1990-1993), and research assistant (1987-1990). Ms. Doulton currently owns and operates Phi Builders + Architects and Cellardoor Winery. Previously, Ms. Doulton served as a member of the Board of Brown Capital Management, LLC (2014-2018).
Robert A. Lawrence (1952)
Year of Election or Appointment: 2020
Trustee
Chair of the Board of Trustees
Mr. Lawrence also serves as Trustee of other funds. Previously, Mr. Lawrence served as a Trustee and Member of the Advisory Board of certain funds. Prior to his retirement in 2008, Mr. Lawrence served as Vice President of certain Fidelity® funds (2006-2008), Senior Vice President, Head of High Income Division of Fidelity Management & Research Company (investment adviser firm, 2006-2008), and President of Fidelity Strategic Investments (investment adviser firm, 2002-2005).
* Determined to be an "Interested Trustee" by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Vijay C. Advani (1960)
Year of Election or Appointment: 2023
Trustee
Mr. Advani also serves as Trustee or Member of the Advisory Board of other funds. Previously, Mr. Advani served as Executive Chairman (2020-2022), Chief Executive Officer (2017-2020) and Chief Operating Officer (2016-2017) of Nuveen (global investment manager). He also served in various capacities at Franklin Resources (global investment manager), including Co-President (2015-2016), Executive Vice President, Global Advisory Services (2008-2015), Head of Global Retail Distribution (2005-2008), Executive Managing Director, International Retail Development (2002-2005), Managing Director, Product Developments, Sales & Marketing, Asia, Eastern Europe and Africa (2000-2002) and President, Templeton Asset Management India (1995-2000). Mr. Advani also served as Senior Investment Officer of International Finance Corporation (private equity and venture capital arm of The World Bank, 1984-1995). Mr. Advani is Chairman Emeritus of the U.S. India Business Council (2018-present), a Director of The Global Impact Investing Network (2019-present), a Director of LOK Capital (Mauritius) (2022-present), a member of the Advisory Council of LOK Capital (2022-present), a Senior Advisor of Neuberger Berman (2021-present), a Senior Advisor of Seviora Holdings Pte. Ltd (Temasek-Singapore) (2021-present), a Director of Seviora Capital (Singapore) (2021-present) and an Advisor of EQUIAM (2021-present). Mr. Advani formerly served as a member of the Board of BowX Acquisition Corp. (special purpose acquisition company, 2020-2021), a member of the Board of Intellecap (advisory arm of The Aavishkaar Group, 2018-2020), a member of the Board of Nuveen Investments, Inc. (2017-2020) and a member of the Board of Docusign (software, 2016-2019).
Thomas P. Bostick (1956)
Year of Election or Appointment: 2021
Trustee
Lieutenant General Bostick also serves as Trustee of other Fidelity® funds. Prior to his retirement, General Bostick (United States Army, Retired) held a variety of positions within the U.S. Army, including Commanding General and Chief of Engineers, U.S. Army Corps of Engineers (2012-2016) and Deputy Chief of Staff and Director of Human Resources, U.S. Army (2009-2012). General Bostick currently serves as a member of the Board and Finance and Governance & Sustainability Committees of CSX Corporation (transportation, 2020-present) and a member of the Board and Corporate Governance and Nominating Committee of Perma-Fix Environmental Services, Inc. (nuclear waste management, 2020-present). General Bostick serves as Chief Executive Officer of Bostick Global Strategies, LLC (consulting, 2016-present), as a member of the Board of HireVue, Inc. (video interview and assessment, 2020-present), as a member of the Board of Allonnia (biotechnology and engineering solutions, 2022-present) and on the Advisory Board of Solugen, Inc. (specialty bio-based chemicals manufacturer, 2022-present). Previously, General Bostick served as a Member of the Advisory Board of certain Fidelity® funds (2021), President, Intrexon Bioengineering (2018-2020) and Chief Operating Officer (2017-2020) and Senior Vice President of the Environment Sector (2016-2017) of Intrexon Corporation (biopharmaceutical company).
Dennis J. Dirks (1948)
Year of Election or Appointment: 2018
Trustee
Mr. Dirks also serves as Trustee of other Fidelity® funds. Prior to his retirement in May 2003, Mr. Dirks served as Chief Operating Officer and as a member of the Board of The Depository Trust & Clearing Corporation (financial markets infrastructure), President, Chief Operating Officer and a member of the Board of The Depository Trust Company (DTC), President and a member of the Board of the National Securities Clearing Corporation (NSCC), Chief Executive Officer and a member of the Board of the Government Securities Clearing Corporation and Chief Executive Officer and a member of the Board of the Mortgage-Backed Securities Clearing Corporation. Mr. Dirks currently serves as a member of the Finance Committee (2016-present) and Board (2017-present) and is Treasurer (2018-present) of the Asolo Repertory Theatre.
Donald F. Donahue (1950)
Year of Election or Appointment: 2017
Trustee
Mr. Donahue also serves as Trustee of other Fidelity® funds. Mr. Donahue serves as President and Chief Executive Officer of Miranda Partners, LLC (risk consulting for the financial services industry, 2012-present). Previously, Mr. Donahue served as Chief Executive Officer (2006-2012), Chief Operating Officer (2003-2006) and Managing Director, Customer Marketing and Development (1999-2003) of The Depository Trust & Clearing Corporation (financial markets infrastructure). Mr. Donahue currently serves as a member (2007-present) and Co-Chairman (2016-present) of the Board of United Way of New York. Mr. Donahue previously served as a member of the Advisory Board of certain Fidelity® funds (2015-2018) and as a member of the Board of The Leadership Academy (previously NYC Leadership Academy) (2012-2022).
Vicki L. Fuller (1957)
Year of Election or Appointment: 2020
Trustee
Ms. Fuller also serves as Trustee of other Fidelity® funds. Previously, Ms. Fuller served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chief Investment Officer of the New York State Common Retirement Fund (2012-2018) and held a variety of positions at AllianceBernstein L.P. (global asset management, 1985-2012), including Managing Director (2006-2012) and Senior Vice President and Senior Portfolio Manager (2001-2006). Ms. Fuller currently serves as a member of the Board, Audit Committee and Nominating and Governance Committee of two Blackstone business development companies (2020-present), as a member of the Board of Treliant, LLC (consulting, 2019-present), as a member of the Board of Ariel Alternatives, LLC (private equity, 2022-present) and as a member of the Board and Chair of the Audit Committee of Gusto, Inc. (software, 2021-present). In addition, Ms. Fuller currently serves as a member of the Board of Roosevelt University (2019-present) and as a member of the Executive Board of New York University's Stern School of Business. Ms. Fuller previously served as a member of the Board, Audit Committee and Nominating and Governance Committee of The Williams Companies, Inc. (natural gas infrastructure, 2018-2021).
Patricia L. Kampling (1959)
Year of Election or Appointment: 2020
Trustee
Ms. Kampling also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Kampling served as Chairman of the Board and Chief Executive Officer (2012-2019), President and Chief Operating Officer (2011-2012) and Executive Vice President and Chief Financial Officer (2010-2011) of Alliant Energy Corporation. Ms. Kampling currently serves as a member of the Board, Finance Committee and Governance, Compensation and Nominating Committee of Xcel Energy Inc. (utilities company, 2020-present) and as a member of the Board, Audit, Finance and Risk Committee and Safety, Environmental, Technology and Operations Committee and Chair of the Executive Development and Compensation Committee of American Water Works Company, Inc. (utilities company, 2019-present). In addition, Ms. Kampling currently serves as a member of the Board of the Nature Conservancy, Wisconsin Chapter (2019-present). Previously, Ms. Kampling served as a Member of the Advisory Board of certain Fidelity® funds (2020), a member of the Board, Compensation Committee and Executive Committee and Chair of the Audit Committee of Briggs & Stratton Corporation (manufacturing, 2011-2021), a member of the Board of Interstate Power and Light Company (2012-2019) and Wisconsin Power and Light Company (2012-2019) (each a subsidiary of Alliant Energy Corporation) and as a member of the Board and Workforce Development Committee of the Business Roundtable (2018-2019).
Thomas A. Kennedy (1955)
Year of Election or Appointment: 2021
Trustee
Mr. Kennedy also serves as Trustee of other Fidelity® funds. Previously, Mr. Kennedy served as a Member of the Advisory Board of certain Fidelity® funds (2020) and held a variety of positions at Raytheon Company (aerospace and defense, 1983-2020), including Chairman and Chief Executive Officer (2014-2020) and Executive Vice President and Chief Operating Officer (2013-2014). Mr. Kennedy served as Executive Chairman of the Board of Directors of Raytheon Technologies Corporation (aerospace and defense, 2020-2021). Mr. Kennedy serves as a Director of the Board of Directors of Textron Inc. (aerospace and defense, 2023-present).
Oscar Munoz (1959)
Year of Election or Appointment: 2021
Trustee
Mr. Munoz also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Munoz served as Executive Chairman (2020-2021), Chief Executive Officer (2015-2020), President (2015-2016) and a member of the Board (2010-2021) of United Airlines Holdings, Inc. Mr. Munoz currently serves as a member of the Board of CBRE Group, Inc. (commercial real estate, 2020-present), a member of the Board of Univision Communications, Inc. (Hispanic media, 2020-present), a member of the Board of Archer Aviation Inc. (2021-present), a member of the Defense Business Board of the United States Department of Defense (2021-present) and a member of the Board of Salesforce.com, Inc. (cloud-based software, 2022-present). Previously, Mr. Munoz served as a Member of the Advisory Board of certain Fidelity® funds (2021).
David M. Thomas (1949)
Year of Election or Appointment: 2018
Trustee
Lead Independent Trustee
Mr. Thomas also serves as Trustee of other Fidelity® funds. Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). Mr. Thomas currently serves as a member of the Board of Fortune Brands Home and Security (home and security products, 2004-present) and as Director (2013-present) and Non-Executive Chairman of the Board (2022-present) of Interpublic Group of Companies, Inc. (marketing communication).
Susan Tomasky (1953)
Year of Election or Appointment: 2020
Trustee
Ms. Tomasky also serves as Trustee of other Fidelity® funds. Prior to her retirement, Ms. Tomasky served in various executive officer positions at American Electric Power Company, Inc. (1998-2011), including most recently as President of AEP Transmission (2007-2011). Ms. Tomasky currently serves as a member of the Board and Sustainability Committee and as Chair of the Audit Committee of Marathon Petroleum Corporation (2018-present) and as a member of the Board, Executive Committee, Corporate Governance Committee and Organization and Compensation Committee and as Lead Director of the Board of Public Service Enterprise Group, Inc. (utilities company, 2012-present) and as a member of the Board of its subsidiary company, Public Service Electric and Gas Co. (2021-present). In addition, Ms. Tomasky currently serves as a member (2009-present) and President (2020-present) of the Board of the Royal Shakespeare Company - America (2009-present), as a member of the Board of the Columbus Association for the Performing Arts (2011-present) and as a member of the Board and Kenyon in the World Committee of Kenyon College (2016-present). Previously, Ms. Tomasky served as a Member of the Advisory Board of certain Fidelity® funds (2020), as a member of the Board of the Columbus Regional Airport Authority (2007-2020), as a member of the Board (2011-2018) and Lead Independent Director (2015-2018) of Andeavor Corporation (previously Tesoro Corporation) (independent oil refiner and marketer) and as a member of the Board of Summit Midstream Partners LP (energy, 2012-2018).
Michael E. Wiley (1950)
Year of Election or Appointment: 2017
Trustee
Mr. Wiley also serves as Trustee of other Fidelity® funds. Previously, Mr. Wiley served as a member of the Advisory Board of certain Fidelity® funds (2018-2020), Chairman, President and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004). Mr. Wiley also previously served as a member of the Board of Andeavor Corporation (independent oil refiner and marketer, 2005-2018), a member of the Board of Andeavor Logistics LP (natural resources logistics, 2015-2018) and a member of the Board of High Point Resources (exploration and production, 2005-2020).
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for each fund.
Advisory Board Members and Officers:
Correspondence intended for a Member of the Advisory Board (if any) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for an officer or Peter S. Lynch may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. 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).
Karen B. Peetz (1955)
Year of Election or Appointment: 2023
Member of the Advisory Board
Ms. Peetz also serves as a Member of the Advisory Board of other funds. Previously, Ms. Peetz served as Chief Administration Officer (2020-2023) of Citigroup Inc. (a diversified financial service company). She also served in various capacities at Bank of New York Mellon Corporation, including President (2013-2016), Vice Chairman, Senior Executive Vice President and Chief Executive Officer of Financial Markets & Treasury Services (2010-2013), Senior Executive Vice President and Chief Executive Officer of Global Corporate Trust (2003-2008), Senior Vice President and Division Manager of Global Payments & Trade Services (2002-2003) and Senior Vice President and Division Manager of Domestic Corporate Trust (1998-2002). Ms. Peetz also served in various capacities at Chase Manhattan Corporation (1982-1998), including Senior Vice President and Manager of Corporate Trust International Business (1996-1998), Managing Director and Manager of Corporate Trust Services (1994-1996) and Managing Director and Group Manager of Financial Institution Sales (1990-1993). Ms. Peetz currently serves as Chair of Amherst Holdings Advisory Council (2018-present), Trustee of Johns Hopkins University (2016-present), Chair of the Carey Business School Advisory Council, Member of the Johns Hopkins Medicine Board and Finance Committee and Chair of the Lyme and Tick Related Disease Institute Advisory Council. Ms. Peetz previously served as a member of the Board of Guardian Life Insurance Company of America (2019-2023), a member of the Board of Trane Technologies (2018-2022), a member of the Board of Wells Fargo Corp. (2017-2019), a member of the Board of SunCoke Energy Inc. (2012-2016), a member of the Board of Private Export Funding Corporation (2010-2016) and as a Trustee of Penn State University (2010-2014) and the United Way of New York City (2008-2010).
Heather Bonner (1977)
Year of Election or Appointment: 2023
Assistant Treasurer
Ms. Bonner also serves as an officer of other funds. Ms. Bonner serves as Senior Vice President (2022-present), and is an employee of Fidelity Investments. Ms. Bonner serves as Assistant Treasurer of Fidelity CRET Trustee LLC (2022-present). Prior to joining Fidelity, Ms. Bonner served as Managing Director at AQR Capital Management (2013-2022) and was the Treasurer and Principal Financial Officer of the AQR Funds (2013-2022).
Craig S. Brown (1977)
Year of Election or Appointment: 2022
Deputy Treasurer
Mr. Brown also serves as an officer of other funds. Mr. Brown serves as Assistant Treasurer of FIMM, LLC (2021-present) and is an employee of Fidelity Investments (2013-present). Previously, Mr. Brown served as Assistant Treasurer of certain Fidelity® funds (2019-2022).
John J. Burke III (1964)
Year of Election or Appointment: 2018
Chief Financial Officer
Mr. Burke also serves as Chief Financial Officer of other funds. Mr. Burke 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).
Margaret Carey (1973)
Year of Election or Appointment: 2023
Secretary and Chief Legal Officer (CLO)
Ms. Carey also serves as an officer of other funds and as CLO of certain other Fidelity entities. 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.
William C. Coffey (1969)
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: 2017
Assistant Treasurer
Mr. Davis also serves as an officer of other funds. Mr. Davis serves as Vice President Assistant Treasurer and is an employee of Fidelity Investments. Mr. Davis serves as Assistant Treasurer of certain Fidelity entities.
Laura M. Del Prato (1964)
Year of Election or Appointment: 2018
Assistant Treasurer
Ms. Del Prato also serves as an officer of other funds. Ms. Del Prato 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).
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. Mr. Pogorelec serves as Compliance Officer of Fidelity Management & Research Company LLC (investment adviser firm, 2023-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 certain Fidelity entities, is an employee of Fidelity Investments, and has served in other fund officer roles.
Jim Wegmann (1979)
Year of Election or Appointment: 2019
Assistant Treasurer
Mr. Wegmann also serves as an officer of other funds. Mr. Wegmann 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).
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2023 to August 31, 2023).
|
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Annualized Expense Ratio- A
|
Beginning Account Value March 1, 2023
|
Ending Account Value August 31, 2023
|
Expenses Paid During Period- C March 1, 2023 to August 31, 2023
|
|||||||
Fidelity® Large Cap Growth Enhanced Index Fund
|
.39%
|
|||||||||
Actual
|
$ 1,000
|
$ 1,212.30
|
$ 2.17
|
|||||||
Hypothetical-B
|
$ 1,000
|
$ 1,023.24
|
$ 1.99
|
|||||||
Fidelity® Large Cap Value Enhanced Index Fund
|
.39%
|
|||||||||
Actual
|
$ 1,000
|
$ 1,042.20
|
$ 2.01
|
|||||||
Hypothetical-B
|
$ 1,000
|
$ 1,023.24
|
$ 1.99
|
|||||||
Fidelity® Large Cap Core Enhanced Index Fund
|
.39%
|
|||||||||
Actual
|
$ 1,000
|
$ 1,140.10
|
$ 2.10
|
|||||||
Hypothetical-B
|
$ 1,000
|
$ 1,023.24
|
$ 1.99
|
|||||||
Fidelity® Mid Cap Enhanced Index Fund
|
.45%
|
|||||||||
Actual
|
$ 1,000
|
$ 1,021.50
|
$ 2.29
|
|||||||
Hypothetical-B
|
$ 1,000
|
$ 1,022.94
|
$ 2.29
|
|||||||
Fidelity® International Enhanced Index Fund
|
.55%
|
|||||||||
Actual
|
$ 1,000
|
$ 1,061.00
|
$ 2.86
|
|||||||
Hypothetical-B
|
$ 1,000
|
$ 1,022.43
|
$ 2.80
|
|||||||
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B 5% return per year before expenses
C Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
Distributions (Unaudited)
The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended August 31, 2023, or, if subsequently determined to be different, the net capital gain of such year.
Fidelity Large Cap Value Enhanced Index Fund
|
$89,603,673
|
Fidelity Large Cap Growth Enhanced Index Fund
|
$3,583,892
|
A percentage of the dividends distributed during the fiscal year for the following funds qualify for the dividends-received deduction for corporate shareholders:
Fidelity Large Cap Core Enhanced Index Fund
|
|
December 2022
|
100%
|
Fidelity Large Cap Value Enhanced Index Fund
|
|
December 2022
|
100%
|
Fidelity Large Cap Growth Enhanced Index Fund
|
|
December 2022
|
100%
|
Fidelity Mid Cap Enhanced Index Fund
|
|
December 2022
|
98%
|
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
Fidelity Large Cap Core Enhanced Index Fund
|
|
December 2022
|
100%
|
Fidelity Large Cap Value Enhanced Index Fund
|
|
December 2022
|
100%
|
Fidelity Large Cap Growth Enhanced Index Fund
|
|
December 2022
|
100%
|
Fidelity International Enhanced Index Fund
|
|
December 2022
|
99.83%
|
Fidelity Mid Cap Enhanced Index Fund
|
|
December 2022
|
100%
|
The funds hereby designate the amounts noted below as distributions paid during the fiscal year ended 2023 as qualifying to be taxed as section 163(j) interest dividends:
Fidelity International Enhanced Index Fund
|
$322,285
|
Fidelity Mid Cap Enhanced Index Fund
|
$287,007
|
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are as follows:
Pay Date
|
Income
|
Taxes
|
|
Fidelity International Enhanced Index Fund
|
12/12/2022
|
$0.2431
|
$0.0171
|
The funds will notify shareholders in January 2024 of amounts for use in preparing 2023 income tax returns.
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity International Enhanced Index Fund
Fidelity Large Cap Core Enhanced Index Fund
Fidelity Large Cap Growth Enhanced Index Fund
Fidelity Large Cap Value Enhanced Index Fund
Fidelity Mid Cap Enhanced Index Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), considers the renewal of the each fund's management contract with Fidelity Management & Research Company LLC (FMR) (the Advisory Contract). The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contract throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board, acting directly and through its Committees (each of which is composed of and chaired by Independent Trustees), requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
Approval of Stub Period Continuation. At its May 2023 meeting, the Board of Trustees voted to continue each fund's management contract with FMR (together, the Advisory Contracts), without modification, for two months from June 1, 2023 through July 31, 2023. The Board considered that the approval of each fund's Advisory Contracts will not result in any changes in (i) the investment process or strategies employed in the management of each fund's assets; (ii) the fees and expenses paid by shareholders; (iii) the nature, extent or quality of services provided under each fund's Advisory Contracts; or (iv) the day-to-day management of each fund or the persons primarily responsible for such management. The Board also considered that since its last approval of each fund's Advisory Contracts, FMR had provided additional information on each fund in support of the annual contract renewal process, including competitive analyses on total expenses and management fees and in-depth reviews of fund performance and fund profitability information. The Board concluded that each fund's Advisory Contracts are fair and reasonable, and that each fund's Advisory Contracts should be renewed, without modification, through July 31, 2023, with the understanding that the Board would consider the annual renewal for a full one year period in July 2023.
At its July 2023 meeting, the Board unanimously determined to renew each fund's Advisory Contract. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness relative to peer funds of each fund's management fee and total expense ratio; (iii) the total costs of the services provided by and the profits realized by FMR and its affiliates (Fidelity) from its relationships with each fund; and (iv) the extent to which, if any, economies of scale exist and are realized as each fund grows, and whether any economies of scale are appropriately shared with fund shareholders. The Board also considered the broad range of investment choices available to shareholders from FMR's competitors and that each fund's shareholders have chosen to invest in the fund, which is part of the Fidelity family of funds. The Board's decision to renew the Advisory Contracts was not based on any single factor.
In considering whether to renew the Advisory Contract for each fund, the Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contract was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contract was fair and reasonable in light of all of the surrounding circumstances.
Nature, Extent, and Quality of Services Provided. The Board considered staffing as it relates to the funds, including the backgrounds and experience of investment personnel of FMR, and also considered FMR's implementation of the funds' investment programs. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
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 investment staff, including its size, education, experience, and resources, as well as Fidelity's approach to recruiting, training, managing, and compensating investment personnel. The Board noted the resources devoted to expansion of Fidelity's global investment organization and that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to global information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Adviser and its affiliates under the Advisory Contract and by FMR's affiliates under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for each fund; (ii) the nature and extent of Fidelity's supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted by Fidelity to, and the record of compliance with, each fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Adviser. The Board also considered each fund's securities lending activities and any payments made to Fidelity relating to securities lending.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, investor education materials, and asset allocation tools. The Board also considered that it reviews customer service metrics such as telephone response times, continuity of services on the website and metrics addressing services at Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds and/or the Fidelity funds in general.
Investment Performance. The Board took into account discussions that occur with representatives of the Investment Advisers, and reports that it receives, at Board meetings throughout the year relating to fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considered annualized return information for each fund for different time periods, measured against an appropriate securities market index (benchmark index) and an appropriate peer group of funds with similar objectives (peer group). The Board also considered information about performance attribution. In its ongoing evaluation of fund investment performance, the Board gives particular attention to information indicating changes in performance of the funds over different time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. The Independent Trustees generally give greater weight to fund performance over longer time periods than over shorter time periods. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index or peer group for certain periods.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should continue to benefit the shareholders of each fund.
Competitiveness of Management Fee and Total Expense Ratio. The Board was provided with information regarding industry trends in management fees and expenses. In its review of each fund's management fee and total expense ratio, the Board considered the 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 the investment adviser under the all-inclusive arrangement. The Board also noted that Fidelity may agree to waive fees or reimburse expenses from time to time, and the extent to which, if any, it has done so for each fund.
Comparisons of Management Fees and Total Expense Ratios. Among other things, the Board reviewed data for selected groups of competitive funds and classes (referred to as "mapped groups") that were compiled by Fidelity based on combining similar investment objective categories (as classified by Lipper) that have comparable investment mandates. The data reviewed by the Board included (i) gross management fee comparisons (before taking into account expense reimbursements or caps) relative to the total universe of funds within the mapped group; (ii) gross management fee comparisons relative to a subset of non-Fidelity funds in the mapped group that are similar in size and management fee structure to each fund (referred to as the "asset size peer group"); (iii) total expense comparisons of each fund relative to funds and classes in the mapped group that have a similar sales load structure of each fund (referred to as the "similar sales load structure group"); and (iv) total expense comparisons of each fund relative to funds and classes in the similar sales load structure group that are similar in size and management fee structure to the fund (referred to as the "total expense asset size peer group"). The total expense asset size peer group comparison excludes performance adjustments and fund-paid 12b-1 fees to eliminate variability in fee structures.
The information provided to the Board indicated that each fund's management fee rate ranked below the competitive median of the mapped group for the 12-month period ended September 30, 2022 and below the competitive median of the asset size peer group for the 12-month period ended September 30, 2022. Further, the information provided to the Board indicated that the total expense ratio of each fund ranked below the competitive median of the similar sales load structure group for the 12-month period ended September 30, 2022 and below the competitive median of the total expense asset size peer group for the 12-month period ended September 30, 2022.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients with similar mandates. The Board noted that a joint ad hoc committee created by it and the boards of other Fidelity funds periodically reviews and compares Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds and also noted the most recent findings of the committee. The Board noted that the committee's review included a consideration of the differences in services provided, fees charged, and costs incurred, as well as competition in the markets serving the different categories of clients.
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered. Further, based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that each fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing each fund and servicing each fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationships with each fund. Fidelity calculates profitability information for each fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies and the full Board approves such changes.
A public accounting firm has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. The engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's fund business, and completion of agreed-upon procedures in respect of the mathematical accuracy of certain fund profitability information and its conformity to established allocation methodologies. After considering the reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the funds' business. The Board considered areas where potential indirect benefits to the Fidelity funds from their relationships with Fidelity may exist. The Board's consideration of these matters was informed by the findings of a joint ad hoc committee created by it and the boards of other Fidelity funds to evaluate potential fall-out benefits.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and was satisfied that the profitability was not excessive.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board recognized that, due to each fund's current contractual arrangements, its expense ratio will not decline if the fund's operating costs decrease as assets grow, or rise as assets decrease. The Board also noted that a committee (the Economies of Scale Committee) created by it and the boards of other Fidelity funds periodically analyzes whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including: (i) fund flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds, including any consideration of fund liquidations or mergers; (ii) the operation of performance fees and competitor use of performance fees; (iii) Fidelity's pricing philosophy compared to competitors; (iv) fund profitability methodology and data; (v) evaluation of competitive fund data and peer group classifications and fee and expense comparisons; (vi) the management fee and expense structures for different funds and classes and information about the differences between various fee and expense structures; (vii) group fee breakpoints and related voluntary fee waivers; and (viii) information regarding other accounts managed by Fidelity and the funds' sub-advisory arrangements.
Conclusion. Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board, including the Independent Trustees, concluded that the advisory fee arrangements are fair and reasonable in light of all of the surrounding circumstances and that each fund's Advisory Contract should be renewed through July 31, 2024.
A special meeting of shareholders was held on April 19, 2023. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
|
||
Proposal 1
|
||
To reclassify the diversification status of the fund from diversified to non-diversified by eliminating the following fundamental policy: The fund may not with respect to 75% of fund's total assets, purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities, or securities of other investment companies) if as a result, (a) more than 5% of fund's total assets would be invested in the securities of that issuer, or (b) the fund would hold more than 10% of outstanding voting securities of issuer.
|
||
# of
Votes
|
% of
Votes
|
|
Affirmative
|
1,212,959,725.500
|
85.392
|
Against
|
164,063,927.240
|
11.550
|
Abstain
|
43,439,041.970
|
3.058
|
TOTAL
|
1,420,462,694.710
|
100.000
|
 |
1.855140.117
GEI-ANN-1023
Item 2.
Code of Ethics
As of the end of the period, August 31, 2023, Fidelity Commonwealth Trust II (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 PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to Fidelity International Enhanced Index Fund, Fidelity Large Cap Core Enhanced Index Fund, Fidelity Large Cap Growth Enhanced Index Fund, Fidelity Large Cap Value Enhanced Index Fund and Fidelity Mid Cap Enhanced Index Fund (the “Funds”):
Services Billed by PwC
August 31, 2023 FeesA
| | Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
| Fidelity International Enhanced Index Fund | $39,900 | $3,700 | $9,800 | $1,200 |
| Fidelity Large Cap Core Enhanced Index Fund | $39,500 | $3,700 | $9,800 | $1,200 |
| Fidelity Large Cap Growth Enhanced Index Fund | $39,500 | $3,700 | $9,800 | $1,200 |
| Fidelity Large Cap Value Enhanced Index Fund | $39,600 | $3,700 | $9,800 | $1,200 |
| Fidelity Mid Cap Enhanced Index Fund | $39,500 | $3,700 | $9,800 | $1,200 |
| | | | | |
August 31, 2022 FeesA
| | Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
| Fidelity International Enhanced Index Fund | $38,100 | $3,600 | $9,300 | $1,200 |
| Fidelity Large Cap Core Enhanced Index Fund | $37,700 | $3,600 | $10,200 | $1,200 |
| Fidelity Large Cap Growth Enhanced Index Fund | $37,700 | $3,600 | $10,200 | $1,200 |
| Fidelity Large Cap Value Enhanced Index Fund | $37,700 | $3,600 | $9,300 | $1,200 |
| Fidelity Mid Cap Enhanced Index Fund | $37,700 | $3,600 | $10,200 | $1,200 |
A Amounts may reflect rounding.
The following table(s) present(s) fees billed by PwC 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 PwC
| | August 31, 2023A | August 31, 2022A |
| Audit-Related Fees | $8,284,200 | $7,914,600 |
| Tax Fees | $1,000 | $353,200 |
| All Other Fees | $- | $- |
A Amounts may reflect rounding.
“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 fund's 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 PwC 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 | August 31, 2023A | August 31, 2022A |
| |
| PwC | $13,661,300 | $13,308,400 |
| |
|
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A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its(their) audit of the Fund(s), taking into account representations from PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Fund(s) and its(their) related entities and FMR’s 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 trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s 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 Committee’s 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 Chair’s 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 Fund’s(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).
The Registrant has not retained, for the preparation of the audit report on the financial statements included in the Form N-CSR, a registered public accounting firm that has a branch or office that is located in a foreign jurisdiction and that the Public Company Accounting Oversight Board (the “PCAOB”) has determined that the PCAOB is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction.
The Registrant is not a “foreign issuer,” as defined in 17 CFR 240.3b-4.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(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 trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s 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 trust’s 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 trust’s internal control over financial reporting.
Item 12.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
| (a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
| (a) | (2) | |
| (a) | (3) | Not applicable. |
| (b) | |
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 Commonwealth Trust II
| By: | /s/Stacie M. Smith |
| | Stacie M. Smith |
| | President and Treasurer |
| | |
| Date: | October 23, 2023 |
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: | October 23, 2023 |
| By: | /s/John J. Burke III |
| | John J. Burke III |
| | Chief Financial Officer |
| | |
| Date: | October 23, 2023 |