N-CSR 1 main.htm

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 811-3759

Variable Insurance Products Fund IV
(Exact name of registrant as specified in charter)

82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices) (Zip code)

Eric D. Roiter, Secretary

82 Devonshire St.

Boston, Massachusetts 02109
(Name and address of agent for service)

Registrant's telephone number, including area code: 617-563-7000

Date of fiscal year end:	December 31

Date of reporting period:	December 31, 2007

Item 1. Reports to Stockholders

Fidelity® Variable Insurance Products:
Consumer Discretionary Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

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 (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund 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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 listings, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' 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. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company's separate account. If performance information included the effect of these additional charges, the total returns would have been lower. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Past 5 years	Life of fund^A
VIP Consumer Discretionary - Initial Class ^C	-8.14%	7.82%	2.67%
VIP Consumer Discretionary - Investor Class^{B, C}	-8.29%	7.76%	2.63%

^AFrom July 18, 2001.

^B The initial offering of Investor Class shares took place on July 21, 2005. Returns prior to July 21, 2005 are those of Initial Class. If Investor Class's transfer agent fee had been reflected, returns prior to July 21, 2005 would have been lower.

^C Prior to October 1, 2006, VIP Consumer Discretionary operated under certain different investment policies. The historical performance for the fund may not represent its current investment policies.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Consumer Discretionary Portfolio - Initial Class on July 18, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from John Harris, Portfolio Manager of VIP Consumer Discretionary Portfolio

U.S. equity markets, as measured by the bellwether Dow Jones Industrial Average^SM and the Standard & Poor's 500^SM Index, registered their fifth consecutive year of positive returns in 2007, as the Dow rose 8.88% and the S&P 500® index advanced 5.49%. The tech-heavy NASDAQ Composite® Index did even better, increasing 10.55%. However, credit- and recession-related concerns carved deeply into stock prices late in 2007, pushing some major market measures into negative territory for the year overall, particularly smaller-cap and value-oriented benchmarks. Based largely on a weak U.S. dollar that boosted returns for U.S. investors, the Morgan Stanley Capital International^SM Europe, Australasia, and Far East (MSCI® EAFE®) Index - a gauge of developed stock markets outside the United States and Canada - beat most domestic equity measures, gaining 11.33%. Several European countries had outstanding performance, including Finland and Germany, while Australia also did very well. However, fallout from the credit crunch and concerns about export growth tempered U.K. stocks, while fears that Japanese financial companies would become embroiled in the U.S. subprime mortgage crisis contributed to a loss of more than 4% for the Japanese portion of the index. The emerging-markets stock asset class soared 39.78% according to the MSCI Emerging Markets index. The U.S. investment-grade bond market climbed 6.97% as measured by the Lehman Brothers® U.S. Aggregate Index, beating the 2.53% gain for the Merrill Lynch® U.S. High Yield Master II Constrained Index. The emerging-markets bond category shook off a sluggish first half of 2007 to finish the year with a respectable gain of 6.28% as measured by the J.P. Morgan Emerging Markets Bond Index (EMBI) Global, while the Citigroup® Non-U.S. Group of 7 Index - representing the debt performance of major global economies, excluding the United States - rose 13.05%.

For the 12-month period ending December 31, 2007, the fund outperformed the Morgan Stanley Capital International^SM (MSCI®) US Investable Market Consumer Discretionary Index, which was down 11.43%, but trailed the S&P 500. (For specific portfolio performance results, please refer to the performance section of this report.) Results relative to the MSCI index during the period were aided by an underweighting and effective stock selection in the hard-hit homebuilding industry, as well as good stock selection in Internet software and services; casinos and gaming; and hotels, resorts and cruise lines. Our out-of-index position in search engine Google did well, as did Costco Wholesale, another holding not included in the MSCI index. Costco was a relatively defensive position; I felt the discount warehouse chain would tend to gain market share as consumers became more price-conscious, and indeed its profit margins and earnings improved in 2007. Shares in footwear marketer Deckers Outdoor performed strongly as the firm expanded the market for its UGG brand. RadioShack's shares rose after the electronics retailer cut costs to increase cash flow, and I sold our position before the stock sank later in the period. On the negative side, I underweighted index component Amazon.com early in the period and missed a large part of the surge in its stock price. R.H. Donnelley, a publisher of print and online phone directories, suffered greater sales declines than I had anticipated. I missed most of the strong performance by sports apparel firm Nike and did not own the stock at period end.

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.

Annual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the 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 (July 1, 2007 to December 31, 2007).

Actual Expenses

The first line of the accompanying table for each class of the Fund 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 of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's 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 for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' 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. The estimate of expenses does not include any fees or other expenses of any variable annuity or variable life insurance product. If they were, the estimate of expenses you paid during the period would be higher, and your ending account value would be lower. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's 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.

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 867.30	$ 4.71
Hypothetical^A	$ 1,000.00	$ 1,020.16	$ 5.09
Investor Class
Actual	$ 1,000.00	$ 866.40	$ 5.41**
Hypothetical^A	$ 1,000.00	$ 1,019.41	$ 5.85**

^A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

	Annualized Expense Ratio
Initial Class	1.00%
Investor Class	1.15%**

** If changes to transfer agent contracts and voluntary expense limitations, effective February 1, 2008 had been in effect during the entire period, the annualized expense ratio would have been 1.08% and the expenses paid in the actual and hypothetical examples above would have been 5.08 and 5.50, respectively.

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
McDonald's Corp.	6.4	5.0
Time Warner, Inc.	5.9	6.3
Target Corp.	5.7	5.3
Staples, Inc.	3.7	2.9
Comcast Corp. Class A	3.5	4.5
Home Depot, Inc.	3.4	6.0
News Corp	3.1	3.0
Lowe's Companies, Inc.	2.9	1.6
The Walt Disney Co.	2.7	1.1
Omnicom Group, Inc.	2.5	0.8
	39.8

Top Industries (% of fund's net assets)
As of December 31, 2007
	Media	28.7%
	Specialty Retail	22.4%
	Hotels, Restaurants & Leisure	14.2%
	Multiline Retail	8.1%
	Textiles, Apparel & Luxury Goods	5.6%
	All Others*	21.0%


As of June 30, 2007
	Media	25.8%
	Specialty Retail	21.3%
	Hotels, Restaurants & Leisure	16.5%
	Multiline Retail	12.2%
	Textiles, Apparel & Luxury Goods	7.0%
	All Others*	17.2%

* Includes short-term investments and net other assets.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 99.1%
	Shares		Value
AUTO COMPONENTS - 2.4%
Auto Parts & Equipment - 2.4%
Johnson Controls, Inc.	6,100		$ 219,844
AUTOMOBILES - 1.4%
Automobile Manufacturers - 0.6%
Renault SA	200		28,315
Toyota Motor Corp. sponsored ADR	300		31,851
			60,166
Motorcycle Manufacturers - 0.8%
Harley-Davidson, Inc.	1,500		70,065
TOTAL AUTOMOBILES			130,231
DISTRIBUTORS - 0.3%
Distributors - 0.3%
Li & Fung Ltd.	6,000		24,240
DIVERSIFIED CONSUMER SERVICES - 2.5%
Education Services - 2.1%
Apollo Group, Inc. Class A (non-vtg.) (a)	2,100		147,315
Career Education Corp. (a)	700		17,598
Princeton Review, Inc. (a)	1,179		9,821
Strayer Education, Inc.	100		17,058
			191,792
Specialized Consumer Services - 0.4%
Sotheby's Class A (ltd. vtg.)	1,100		41,910
TOTAL DIVERSIFIED CONSUMER SERVICES			233,702
FOOD & STAPLES RETAILING - 4.8%
Drug Retail - 1.9%
CVS Caremark Corp.	4,600		182,850
Food Distributors - 0.8%
Sysco Corp.	2,300		71,783
Food Retail - 0.8%
Susser Holdings Corp. (a)	3,500		71,750
Hypermarkets & Super Centers - 1.3%
Costco Wholesale Corp.	1,800		125,568
TOTAL FOOD & STAPLES RETAILING			451,951
HOTELS, RESTAURANTS & LEISURE - 14.2%
Casinos & Gaming - 3.9%
International Game Technology	4,800		210,864
Las Vegas Sands Corp. (a)	900		92,745
Penn National Gaming, Inc. (a)	1,100		65,505
			369,114
Hotels, Resorts & Cruise Lines - 3.9%
Accor SA	1,100		87,812
Carnival Corp. unit	3,300		146,817

	Shares		Value
Royal Caribbean Cruises Ltd.	1,800		$ 76,392
Starwood Hotels & Resorts Worldwide, Inc.	1,200		52,836
			363,857
Restaurants - 6.4%
McDonald's Corp.	10,100		594,991
TOTAL HOTELS, RESTAURANTS & LEISURE			1,327,962
HOUSEHOLD DURABLES - 0.9%
Household Appliances - 0.9%
The Stanley Works	400		19,392
Whirlpool Corp.	800		65,304
			84,696
INTERNET & CATALOG RETAIL - 3.5%
Catalog Retail - 1.3%
Liberty Media Corp. - Interactive Series A (a)	6,300		120,204
Internet Retail - 2.2%
Amazon.com, Inc. (a)	900		83,376
Blue Nile, Inc. (a)	1,800		122,508
			205,884
TOTAL INTERNET & CATALOG RETAIL			326,088
INTERNET SOFTWARE & SERVICES - 2.0%
Internet Software & Services - 2.0%
Google, Inc. Class A (sub. vtg.) (a)	200		138,296
LoopNet, Inc. (a)	3,400		47,770
			186,066
LEISURE EQUIPMENT & PRODUCTS - 1.3%
Leisure Products - 0.9%
Mattel, Inc.	4,700		89,488
Photographic Products - 0.4%
Eastman Kodak Co.	1,600		34,992
TOTAL LEISURE EQUIPMENT & PRODUCTS			124,480
MEDIA - 28.7%
Advertising - 3.5%
National CineMedia, Inc.	3,600		90,756
Omnicom Group, Inc.	5,000		237,650
			328,406
Broadcasting & Cable TV - 6.8%
Clear Channel Communications, Inc.	3,400		117,368
Comcast Corp. Class A (a)	18,000		328,680
Grupo Televisa SA de CV (CPO) sponsored ADR	6,000		142,620
Time Warner Cable, Inc. (a)	1,600		44,160
			632,828
Movies & Entertainment - 15.0%
Cinemark Holdings, Inc.	1,400		23,800
Common Stocks - continued
	Shares		Value
MEDIA - CONTINUED
Movies & Entertainment - continued
Live Nation, Inc. (a)	3,622		$ 52,591
News Corp.:
Class A	13,141		269,259
Class B	1,100		23,375
Regal Entertainment Group Class A	12,800		231,296
The Walt Disney Co.	7,800		251,784
Time Warner, Inc.	33,500		553,085
			1,405,190
Publishing - 3.4%
McGraw-Hill Companies, Inc.	4,800		210,288
R.H. Donnelley Corp. (a)	2,900		105,792
			316,080
TOTAL MEDIA			2,682,504
MULTILINE RETAIL - 8.1%
Department Stores - 2.0%
JCPenney Co., Inc.	300		13,197
Kohl's Corp. (a)	1,700		77,860
Nordstrom, Inc.	2,700		99,171
			190,228
General Merchandise Stores - 6.1%
Dollar Tree Stores, Inc. (a)	600		15,552
Family Dollar Stores, Inc.	900		17,307
Target Corp.	10,700		535,000
			567,859
TOTAL MULTILINE RETAIL			758,087
PERSONAL PRODUCTS - 0.7%
Personal Products - 0.7%
Bare Escentuals, Inc. (a)	2,700		65,475
SOFTWARE - 0.3%
Home Entertainment Software - 0.3%
Activision, Inc. (a)	1,100		32,670
SPECIALTY RETAIL - 22.4%
Apparel Retail - 4.9%
Abercrombie & Fitch Co. Class A	1,100		87,967
American Eagle Outfitters, Inc.	1,100		22,847
Casual Male Retail Group, Inc. (a)	4,950		25,641
Citi Trends, Inc. (a)	1,600		24,704
Collective Brands, Inc. (a)	3,100		53,909
Ross Stores, Inc.	800		20,456
TJX Companies, Inc.	4,300		123,539
Tween Brands, Inc. (a)	2,100		55,608
Urban Outfitters, Inc. (a)	1,500		40,890
			455,561

	Shares		Value
Automotive Retail - 1.4%
Advance Auto Parts, Inc.	2,800		$ 106,372
Penske Auto Group, Inc.	1,600		27,936
			134,308
Computer & Electronics Retail - 1.5%
Best Buy Co., Inc.	1,050		55,283
Gamestop Corp. Class A (a)	1,300		80,743
			136,026
Home Improvement Retail - 7.0%
Home Depot, Inc.	11,784		317,461
Lowe's Companies, Inc.	12,200		275,964
Sherwin-Williams Co.	1,100		63,844
			657,269
Homefurnishing Retail - 0.7%
Williams-Sonoma, Inc.	2,500		64,750
Specialty Stores - 6.9%
PetSmart, Inc.	7,763		182,663
Staples, Inc.	14,950		344,897
Tiffany & Co., Inc.	2,500		115,075
			642,635
TOTAL SPECIALTY RETAIL			2,090,549
TEXTILES, APPAREL & LUXURY GOODS - 5.6%
Apparel, Accessories & Luxury Goods - 2.8%
Burberry Group PLC	3,900		44,129
Coach, Inc. (a)	5,600		171,248
G-III Apparel Group Ltd. (a)	2,905		42,907
Lululemon Athletica, Inc.	100		4,737
			263,021
Footwear - 2.8%
Crocs, Inc. (a)	900		33,129
Deckers Outdoor Corp. (a)	773		119,861
Iconix Brand Group, Inc. (a)	4,200		82,572
K-Swiss, Inc. Class A	1,103		19,964
			255,526
TOTAL TEXTILES, APPAREL & LUXURY GOODS			518,547
TOTAL COMMON STOCKS (Cost $9,636,270)		9,257,092
Money Market Funds - 1.3%
	Shares		Value
Fidelity Cash Central Fund, 4.58% (b) (Cost $123,944)	123,944		$ 123,944
TOTAL INVESTMENT PORTFOLIO - 100.4% (Cost $9,760,214)			9,381,036
NET OTHER ASSETS - (0.4)%			(39,378)
NET ASSETS - 100%		$ 9,341,658

Legend

(a) Non-income producing

(b) Affiliated fund that is 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.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 5,680

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $9,636,270)	$ 9,257,092
Fidelity Central Funds (cost $123,944)	123,944
Total Investments (cost $9,760,214)		$ 9,381,036
Receivable for fund shares sold		308
Dividends receivable		8,250
Distributions receivable from Fidelity Central Funds		187
Prepaid expenses		36
Receivable from investment adviser for expense reductions		5,645
Total assets		9,395,462

Liabilities
Payable to custodian bank	$ 11,801
Payable for fund shares redeemed	389
Accrued management fee	4,519
Other affiliated payables	1,092
Other payables and accrued expenses	36,003
Total liabilities		53,804

Net Assets		$ 9,341,658
Net Assets consist of:
Paid in capital		$ 9,702,362
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		18,469
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		(379,173)
Net Assets		$ 9,341,658

Statement of Assets and Liabilities - continued

	December 31, 2007

Initial Class: Net Asset Value, offering price and redemption price per share ($6,989,169 ÷ 652,264 shares)		$ 10.72

Investor Class: Net Asset Value, offering price and redemption price per share ($2,352,489 ÷ 219,437 shares)		$ 10.72

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

	Year ended December 31, 2007

Investment Income
Dividends		$ 133,130
Interest		163
Income from Fidelity Central Funds		5,680
Total income		138,973

Expenses
Management fee	$ 82,626
Transfer agent fees	20,858
Accounting fees and expenses	5,750
Custodian fees and expenses	14,356
Independent trustees' compensation	53
Audit	41,416
Legal	124
Miscellaneous	2,682
Total expenses before reductions	167,865
Expense reductions	(13,710)	154,155
Net investment income (loss)		(15,182)
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	1,257,861
Foreign currency transactions	220
Total net realized gain (loss)		1,258,081
Change in net unrealized appreciation (depreciation) on: Investment securities	(1,860,259)
Assets and liabilities in foreign currencies	(42)
Total change in net unrealized appreciation (depreciation)		(1,860,301)
Net gain (loss)		(602,220)
Net increase (decrease) in net assets resulting from operations		$ (617,402)

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ (15,182)	$ 102,515
Net realized gain (loss)	1,258,081	1,366,498
Change in net unrealized appreciation (depreciation)	(1,860,301)	(45,422)
Net increase (decrease) in net assets resulting from operations	(617,402)	1,423,591
Distributions to shareholders from net investment income	(27,376)	(77,653)
Distributions to shareholders from net realized gain	(850,763)	-
Total distributions	(878,139)	(77,653)
Share transactions - net increase (decrease)	(7,299,873)	6,814,768
Redemption fees	15,858	5,302
Total increase (decrease) in net assets	(8,779,556)	8,166,008

Net Assets
Beginning of period	18,121,214	9,955,206
End of period (including undistributed net investment income of $0 and $24,654, respectively)	$ 9,341,658	$ 18,121,214

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 12.84	$ 11.45	$ 11.12	$ 10.17	$ 8.13
Income from Investment Operations
Net investment income (loss)^C	(.01)	.11^F	(.02)	(.04)	(.03)
Net realized and unrealized gain (loss)	(1.02)	1.33	.35	.99	2.07
Total from investment operations	(1.03)	1.44	.33	.95	2.04
Distributions from net investment income	(.02)	(.06)	-	-	-
Distributions from net realized gain	(1.08)	-	-	-	-
Total distributions	(1.10)	(.06)	-	-	-
Redemption fees added to paid in capital^C	.01	.01	-^H	-^H	-^H
Net asset value, end of period	$ 10.72	$ 12.84	$ 11.45	$ 11.12	$ 10.17
Total Return^{A, B}	(8.14)%	12.63%	2.97%	9.34%	25.09%
Ratios to Average Net Assets^{D, G}
Expenses before reductions	1.10%	1.20%	1.19%	1.35%	1.72%
Expenses net of fee waivers, if any	1.01%	1.15%	1.14%	1.35%	1.50%
Expenses net of all reductions	1.01%	1.14%	1.12%	1.31%	1.46%
Net investment income (loss)	(.07)%	.90%^F	(.19)%	(.42)%	(.34)%
Supplemental Data
Net assets, end of period (000 omitted)	$ 6,989	$ 13,866	$ 9,616	$ 12,051	$ 10,959
Portfolio turnover rate^E	114%	189%	74%	145%	108%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Investment income per share reflects special dividends which amounted to $.09 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been .13%.

^G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^H Amount represents less than $.01 per share.

Financial Highlights - Investor Class

Years ended December 31,	2007	2006	2005^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.83	$ 11.44	$ 11.49
Income from Investment Operations
Net investment income (loss)^E	(.03)	.10^H	(.01)
Net realized and unrealized gain (loss)	(1.02)	1.33	(.04)
Total from investment operations	(1.05)	1.43	(.05)
Distributions from net investment income	(.02)	(.05)	-
Distributions from net realized gain	(1.05)	-	-
Total distributions	(1.07)	(.05)	-
Redemption fees added to paid in capital^E	.01	.01	-^K
Net asset value, end of period	$ 10.72	$ 12.83	$ 11.44
Total Return^{B, C, D}	(8.29)%	12.62%	(.44)%
Ratios to Average Net Assets^{F, J}
Expenses before reductions	1.24%	1.41%	1.61%^A
Expenses net of fee waivers, if any	1.15%	1.25%	1.25%^A
Expenses net of all reductions	1.15%	1.24%	1.23%^A
Net investment income (loss)	(.21)%	.80%^H	(.20)%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 2,352	$ 4,256	$ 339
Portfolio turnover rate^G	114%	189%	74%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H Investment income per share reflects special dividends which amounted to $.09 per share. Excluding these special dividends, the ratio of net investment income (loss) to average net assets would have been .03%.

^I For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005.

^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^K Amount represents less than $.01 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Consumer Discretionary Portfolio (the Fund) is a non-diversified fund of Variable Insurance Products Fund IV (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's web site or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the Fund:

When current market prices or quotations are not readily available or do not accurately reflect fair value, valuations may be determined in accordance with procedures adopted by the Board of Trustees. For example, when developments occur between the close of a market and the close of the NYSE that may materially affect the value of some or all of the securities, or when trading in a security is halted, those securities may be fair valued. Factors used in the determination of fair value may include monitoring news to identify significant market or security specific events such as changes in the value of U.S. securities markets, reviewing developments in foreign markets and evaluating the performance of ADRs, futures contracts and exchange-traded funds. Because the Fund's utilization of fair value pricing depends on market activity, the frequency with which fair value pricing is used cannot be predicted and may be utilized to a significant extent. The value of securities used for NAV calculation under fair value pricing may differ from published prices for the same securities.

Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. 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 rate 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.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions 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 may include proceeds received from litigation. 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 Fund is 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. As a result of a change in the estimate of the return of capital component of dividend income realized in the year ended December 31, 2006, dividend income has been reduced $22,895 with a corresponding increase to net unrealized appreciation (depreciation). The change in estimate has no impact on total net assets or total return of the Fund. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. 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, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior fiscal three years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

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. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to foreign currency transactions, net operating losses and losses deferred due to wash sales.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 903,721
Unrealized depreciation	(1,333,954)
Net unrealized appreciation (depreciation)	(430,233)
Undistributed ordinary income	20,585
Undistributed long-term capital gain	48,945

Cost for federal income tax purposes	$ 9,811,269

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 512,049	$ 77,653
Long-term Capital Gains	366,090	-
Total	$ 878,139	$ 77,653

Trading (Redemption) Fees. Shares held less than 60 days are subject to a redemption fee equal to 1% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.

New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.

Annual Report

4. Operating Policies.

Repurchase Agreements. FMR has received an Exemptive Order from the Securities and Exchange Commission (the SEC) which permits the Fund and other affiliated entities of FMR to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements are collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $16,690,779 and $24,598,360, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .56% of the Fund's average net assets.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class with the exception of Investor Class pays a transfer agent fee, excluding out of pocket expenses, equal to an annual rate of .07% of average net assets. Investor Class pays a monthly asset-based transfer agent fee of .18% of average net assets. The total transfer agent fees paid by each class to FIIOC, including out of pocket expenses, were as follows:

Initial Class	$ 11,596
Investor Class	9,262
	$ 20,858

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $697 for the period.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $35 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Expense Reductions.

FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.

The following classes were in reimbursement during the period:

	Expense Limitations	Reimbursement from adviser
Initial Class	1.15 - 1.00%*	$ 10,212
Investor Class	1.25 - 1.15%*	3,341
		$ 13,553

* Expense limitation in effect at period end.

Effective February 1, 2008, the expense limitation changed to 1.08% for Investor Class.

Annual Report

Notes to Financial Statements - continued

9. Other.

The 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, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

At the end of the period, FMR or its affiliates were the owners of record of 100% of the total outstanding shares of the Fund.

The United States Securities and Exchange Commission ("SEC") is conducting an investigation of FMR (covering the years 2002 to 2004) arising from gifts, gratuities and business entertainment provided by certain brokers to certain individuals who were employed on FMR's domestic equity trading desk during that period. FMR is in discussions with the SEC staff regarding the possible resolution of the matter, but as of period-end no final resolution has been reached.

In December 2006, the Independent Trustees completed their own investigation of the matter with the assistance of independent counsel. The Independent Trustees and FMR agree that, despite the absence of proof that the Fidelity mutual funds experienced diminished execution quality as a result of the improper receipt of gifts and business entertainment, the conduct at issue was serious and is worthy of redress. Accordingly, the Independent Trustees have requested and FMR has agreed to pay $42 million to Fidelity mutual funds, plus interest to be determined at the time that payment is made. A method of allocating this payment among the funds has not yet been determined. The total payment to the Fund is not anticipated to have a material impact on the Fund's net assets. In addition, FMR reimbursed related legal expenses which are recorded in the accompanying Statement of Operations as an expense reduction.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ 21,493	$ 59,733
Investor Class	5,883	17,920
Total	$ 27,376	$ 77,653
From net realized gain
Initial Class	$ 642,099	$ -
Investor Class	208,664	-
Total	$ 850,763	$ -

11. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	194,438	587,575	$ 2,608,051	$ 7,314,538
Reinvestment of distributions	60,458	4,634	663,592	59,733
Shares redeemed	(682,661)	(351,833)	(9,097,868)	(4,301,667)
Net increase (decrease)	(427,765)	240,376	$ (5,826,225)	$ 3,072,604
Investor Class
Shares sold	215,844	344,914	$ 2,882,128	$ 4,271,675
Reinvestment of distributions	19,548	1,391	214,547	17,920
Shares redeemed	(347,583)	(44,309)	(4,570,323)	(547,431)
Net increase (decrease)	(112,191)	301,996	$ (1,473,648)	$ 3,742,164

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Consumer Discretionary Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Consumer Discretionary Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Consumer Discretionary Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 14, 2008

Annual Report

Trustees and Officers

The Trustees, Members of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 373 funds advised by FMR or an affiliate. Mr. Curvey oversees 368 funds advised by FMR or an affiliate.

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) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and 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 fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR. FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Correspondence intended for Mr. Mauriello, Mr. Thomas, Mr. Wiley, Mr. Lacy, and Mr. Arthur Johnson may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235. Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Consumer Discretionary. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Brian B. Hogan (43)
	Year of Election or Appointment: 2007 Vice President of VIP Consumer Discretionary. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager.
Eric D. Roiter (59)
	Year of Election or Appointment: 2001 Secretary of VIP Consumer Discretionary. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Consumer Discretionary. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Consumer Discretionary. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Consumer Discretionary. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Consumer Discretionary. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Consumer Discretionary. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Consumer Discretionary. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Consumer Discretionary. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Consumer Discretionary. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Consumer Discretionary. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Consumer Discretionary. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP IV Consumer Discretionary Portfolio (the Fund) voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

	Pay Date	Record Date	Capital Gains
Initial Class	02/08/08	02/08/08	$0.085
Investor Class	02/08/08	02/08/08	$0.085

Initial Class, and Investor Class designate 58% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Consumer Discretionary Portfolio

Each year, typically in July, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly each month except August and takes into account throughout the year matters bearing on Advisory Contracts. The Board, acting directly and through its separate committees, considers at each of its meetings factors that are relevant to the annual renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. At the time of the renewal, the Board had 12 standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has adopted a written charter outlining the structure and purposes of the committee. One such committee, the Equity Contract Committee, meets periodically as needed throughout the year to consider matters specifically related to the annual renewal of Advisory Contracts. The committee requests and receives information on, and makes recommendations to the Independent Trustees concerning, the approval and annual review of the Advisory Contracts.

At its July 2007 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the Advisory Contracts for the fund. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the management fee and total expenses of the fund; (iii) the total costs of the services to be provided by and the profits to be realized by the investment adviser and its affiliates from the relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders. The Board also approved amendments to the fund's agreements with foreign sub-advisers to clarify that each sub-adviser provides services as an independent contractor.

In determining whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. In addition to evaluating the specific factors noted above, the Board, in reaching its determination, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board noted that Fidelity's analysts have access to a variety of technological tools that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services. The Board also considered that Fidelity voluntarily pays for market data out of its own resources. The Board also considered the agreement reached between the Independent Trustees and Fidelity in December 2006 following an independent review of matters relating to receipt of travel, entertainment, gifts and gratuities in violation of Fidelity policies.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Annual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. The Board noted that, since the last Advisory Contract renewals in July 2006, Fidelity has taken a number of actions that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure the investment research teams; (ii) contractually agreeing to reduce the management fee on Fidelity Advisor Floating Rate High Income Fund; (iii) contractually agreeing to reduce the management fees on Fidelity's California, Massachusetts, New Jersey, and New York AMT Tax-Free Money Market Funds, launching new Institutional Classes and Service Classes of these funds, and contractually agreeing to impose expense limitations on these funds; (iv) eliminating the exchange fee on the Fidelity Select Portfolios and reducing the pricing and bookkeeping fee rates for these funds; (v) reducing the maximum transfer agency fee rates on high income funds and certain equity funds; (vi) proposing amended management contracts that, if approved by shareholders, will add a performance adjustment component to the management fees paid by 18 Fidelity Advisor equity funds; (vii) contractually agreeing to reduce fees for Ultra-Short Central Fund and the money market Central Funds; (viii) waiving the Fidelity Advisor funds' contingent deferred sales charge on certain redemptions made through systematic withdrawal programs; and (ix) amending the management contracts for equity and fixed-income funds whose management contracts incorporate a "group fee" structure by adding four new fee "breakpoints" to the group fee rate schedules.

VIP Consumer Discretionary Portfolio

The Board stated that the relative investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance between the fund's classes reflect the variations in class expenses, which result in lower performance for the higher expense class. The Board discussed with FMR actions to be taken by FMR to improve the funds below-benchmark performance.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared. The Board also considered supplemental information about how the fund's management fee and total expenses ranked relative to groups based on Lipper classifications, which take into account a fund's market capitalization and style.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 9% means that 91% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

VIP Consumer Discretionary Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each of Initial Class and Investor Class ranked above its competitive median for 2006. The Board noted that the fund offers multiple classes and that the multiple structures are intended to offer pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily due to differences in transfer agent fees. The Board considered that the total expenses of Initial Class were above the median because of relatively high "other expenses" (e.g., legal, audit, custody) due to small class size. The Board considered that the total expenses of Investor Class were above the median primarily due to its higher transfer agent fee.

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.

Annual Report

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 the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of the results of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the 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 the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. In connection with the renewal of the fund's management contract, the Board approved amendments to the fund's management contract that added four new fee breakpoints to the group fee rate schedule for assets under FMR's management above $1,386 billion. The Board considered that the group fee rate declines under both the present and amended schedules, but that under the amended schedule, the group fee rate declines faster as assets under FMR's management exceed $1,386 billion. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

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 several topics, including (i) fund performance trends and actions to be taken by FMR to improve certain funds' overall performance; (ii) Fidelity's portfolio manager compensation structure, including its effects on fund profitability and the extent to which portfolio manager compensation is linked to fund performance; (iii) Fidelity's fee structures; (iv) the funds' sub-advisory arrangements; and (v) accounts managed by Fidelity other than the Fidelity funds.

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank
New York, NY

VCONIC-ANN-0208
1.817355.102

Fidelity® Variable Insurance Products:
Consumer Staples Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average annual total returns take VIP Consumer Staples Portfolio's cumulative total return and show you what would have happened if VIP Consumer Staples Portfolio shares had performed at a constant rate each year. These numbers will be reported once the fund is a year old.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Consumer Staples Portfolio - Initial Class on April 24, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Robert Lee, Portfolio Manager of VIP Consumer Staples Portfolio

From its inception on April 24, 2007, through the end of the period on December 31, 2007, the fund solidly outperformed the Morgan Stanley Capital International^SM (MSCI®) US Investable Market Consumer Staples Index, which was up 6.93%, and the S&P 500, which returned 0.53% during the same time period. (For specific portfolio performance results, please refer to the performance section of this report.) Strong stock selection in packaged foods and meats companies, tobacco firms and brewers fueled the fund's outperformance versus the MSCI index. Our position in British American Tobacco (BAT) benefited from the firm's large exposure to emerging markets and from increases in market share, as consumers switched from cheaper local brands to BAT's higher-quality brands. Holdings in Dutch consumer products conglomerate Unilever and Coca-Cola Hellenic Bottling, a dominant soft drink distributor in Eastern Europe, also benefited from strong sales in emerging markets. I invested in Numico, a Dutch maker of infant and clinical nutrition products, at an attractive valuation and sold the position at a significant profit after another firm made an offer for Numico. Swiss food conglomerate Nestle contributed to results as well. None of the stocks just mentioned were components of the MSCI index. Lastly, underweighting major index component Wal-Mart helped relative performance, as the stock was dragged down by disappointing sales and earnings. On the negative side, relative performance was held back by stock selection in restaurants, biotechnology and agricultural products. In terms of individual detractors, avoiding index component Costco Wholesale hurt results, as the discount chain's stock did well during the period. Underweighting tobacco and food conglomerate Altria also hurt relative performance as its stock moved higher; I had underweighted Altria in favor of BAT, which I believed was a better opportunity in tobacco, and that strategy paid off. Out-of-index holdings in biotechnology firm Senomyx and Norway-headquartered Marine Harvest ASA, the world's largest fish farmer, detracted from performance as well.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to
December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 1,121.40	$ 5.35
Hypothetical^A	$ 1,000.00	$ 1,020.16	$ 5.09
Investor Class
Actual	$ 1,000.00	$ 1,121.60	$ 6.15**
Hypothetical^A	$ 1,000.00	$ 1,019.41	$ 5.85**

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	1.00%
Investor Class	1.15%**

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Procter & Gamble Co.	16.5	16.3
The Coca-Cola Co.	9.5	8.7
PepsiCo, Inc.	7.9	8.8
CVS Caremark Corp.	5.4	5.4
Nestle SA sponsored ADR	3.9	4.7
British American Tobacco PLC sponsored ADR	3.9	4.8
Wal-Mart Stores, Inc.	3.7	4.0
Colgate-Palmolive Co.	3.6	4.2
Altria Group, Inc.	3.3	3.9
Walgreen Co.	3.2	3.2
	60.9

Top Industries (% of fund's net assets)
As of December 31, 2007
	Beverages	28.6%
	Household Products	21.3%
	Food & Staples Retailing	19.4%
	Food Products	14.0%
	Tobacco	9.1%
	All Others*	7.6%

As of June 30, 2007
	Beverages	28.1%
	Household Products	21.0%
	Food & Staples Retailing	19.3%
	Food Products	15.2%
	Tobacco	10.3%
	All Others*	6.1%

* Includes short-term investments and net other assets.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 97.2%
	Shares		Value
BEVERAGES - 28.6%
Brewers - 5.6%
Anadolu Efes Biracilik ve Malt Sanyii AS	3,200		$ 38,090
Grupo Modelo SA de CV Series C	100		472
Heineken NV (Bearer)	2,860		182,754
InBev SA	2,175		180,929
Molson Coors Brewing Co. Class B	5,060		261,197
SABMiller PLC	6,380		179,494
			842,936
Distillers & Vintners - 2.9%
Brown-Forman Corp. Class B (non-vtg.)	435		32,238
Diageo PLC sponsored ADR	2,205		189,255
Pernod Ricard SA	930		214,580
			436,073
Soft Drinks - 20.1%
Coca-Cola Amatil Ltd.	4,298		35,689
Coca-Cola Femsa SA de CV sponsored ADR	2,320		114,330
Coca-Cola Hellenic Bottling Co. SA sponsored ADR	2,560		109,414
Coca-Cola Icecek AS	3,600		41,619
Fomento Economico Mexicano SA de CV sponsored ADR	2,900		110,693
PepsiCo, Inc.	15,500		1,176,450
The Coca-Cola Co.	23,100		1,417,647
			3,005,842
TOTAL BEVERAGES			4,284,851
BIOTECHNOLOGY - 0.2%
Biotechnology - 0.2%
Senomyx, Inc. (a)	4,150		31,084
FOOD & STAPLES RETAILING - 19.4%
Drug Retail - 8.8%
CVS Caremark Corp.	20,240		804,540
Rite Aid Corp. (a)	10,400		29,016
Walgreen Co.	12,600		479,808
			1,313,364
Food Distributors - 2.9%
Sysco Corp.	12,800		399,488
United Natural Foods, Inc. (a)	1,200		38,064
			437,552
Food Retail - 4.0%
Kroger Co.	9,950		265,765
Safeway, Inc.	6,400		218,944
SUPERVALU, Inc.	1,750		65,660
Whole Foods Market, Inc.	1,305		53,244
			603,613

	Shares		Value
Hypermarkets & Super Centers - 3.7%
Wal-Mart Stores, Inc.	11,650		$ 553,725
TOTAL FOOD & STAPLES RETAILING			2,908,254
FOOD PRODUCTS - 14.0%
Agricultural Products - 2.8%
Archer Daniels Midland Co.	4,950		229,829
Bunge Ltd.	1,260		146,677
Corn Products International, Inc.	925		33,994
Nutreco Holding NV	245		14,145
			424,645
Packaged Foods & Meats - 11.2%
BioMar Holding AS	350		13,460
Cadbury Schweppes PLC sponsored ADR	2,765		136,508
Chiquita Brands International, Inc. (a)	800		14,712
Dean Foods Co.	4,345		112,362
Groupe Danone	2,170		195,843
Hershey Co.	1,700		66,980
Kellogg Co.	1,285		67,373
Koninklijke Wessanen NV	70		1,111
Lindt & Spruengli AG	1		35,092
Marine Harvest ASA (a)	59,400		38,146
Nestle SA sponsored ADR	5,145		589,103
Smithfield Foods, Inc. (a)	990		28,631
TreeHouse Foods, Inc. (a)	100		2,299
Tyson Foods, Inc. Class A	2,900		44,457
Unilever NV (NY Shares)	9,075		330,875
			1,676,952
TOTAL FOOD PRODUCTS			2,101,597
HOTELS, RESTAURANTS & LEISURE - 0.6%
Restaurants - 0.6%
Panera Bread Co. Class A (a)	1,030		36,895
Starbucks Corp. (a)	2,100		42,987
			79,882
HOUSEHOLD PRODUCTS - 21.3%
Household Products - 21.3%
Colgate-Palmolive Co.	6,985		544,551
Henkel KGaA	991		50,547
Kimberly-Clark Corp.	1,500		104,010
Procter & Gamble Co.	33,700		2,474,249
Pz Cussons PLC Class L	3,500		14,951
			3,188,308
INTERNET & CATALOG RETAIL - 0.2%
Internet Retail - 0.2%
NutriSystem, Inc. (a)	1,250		33,725
PERSONAL PRODUCTS - 3.3%
Personal Products - 3.3%
Avon Products, Inc.	9,700		383,441
Common Stocks - continued
	Shares		Value
PERSONAL PRODUCTS - CONTINUED
Personal Products - continued
Bare Escentuals, Inc. (a)	1,455		$ 35,284
Herbalife Ltd.	1,000		40,280
Physicians Formula Holdings, Inc.	2,440		28,987
			487,992
PHARMACEUTICALS - 0.5%
Pharmaceuticals - 0.5%
Johnson & Johnson	1,130		75,371
TOBACCO - 9.1%
Tobacco - 9.1%
Altria Group, Inc.	6,600		498,828
British American Tobacco PLC sponsored ADR	7,400		581,344
Japan Tobacco, Inc.	9		53,310
KT&G Corp.	810		68,964
Loews Corp. - Carolina Group	625		53,313
Souza Cruz Industria Comerico	4,050		111,056
			1,366,815
TOTAL COMMON STOCKS (Cost $13,629,641)		14,557,879
Money Market Funds - 6.5%

Fidelity Cash Central Fund, 4.58% (b) (Cost $975,308)	975,308		975,308

TOTAL INVESTMENT PORTFOLIO - 103.7%

(Cost $14,604,949)

15,533,187

NET OTHER ASSETS - (3.7)%		(550,610)
NET ASSETS - 100%		$ 14,982,577

Legend

(a) Non-income producing

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 15,512

Other Information

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	74.5%
United Kingdom	7.4%
Switzerland	4.1%
Netherlands	3.5%
France	2.7%
Mexico	1.5%
Belgium	1.2%
Bermuda	1.0%
Others (individually less than 1%)	4.1%
	100.0%

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $13,629,641)	$ 14,557,879
Fidelity Central Funds (cost $975,308)	975,308
Total Investments (cost $14,604,949)		$ 15,533,187
Cash		789
Receivable for investments sold		18,140
Receivable for fund shares sold		35,360
Dividends receivable		15,220
Distributions receivable from Fidelity Central Funds		3,013
Prepaid expenses		33
Receivable from investment adviser for expense reductions		4,479
Other receivables		190
Total assets		15,610,411

Liabilities
Payable for investments purchased	$ 584,178
Payable for fund shares redeemed	29
Accrued management fee	6,503
Other affiliated payables	1,837
Other payables and accrued expenses	35,287
Total liabilities		627,834

Net Assets		$ 14,982,577
Net Assets consist of:
Paid in capital		$ 14,071,960
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(17,650)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		928,267
Net Assets		$ 14,982,577

Statement of Assets and Liabilities - continued

	December 31, 2007
Initial Class: Net Asset Value, offering price and redemption price per share ($7,964,403 ÷ 718,838 shares)		$ 11.08

Investor Class: Net Asset Value, offering price and redemption price per share ($7,018,174 ÷ 633,993 shares)		$ 11.07

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

	For the period April 24, 2007 (commencement of operations) to December 31, 2007

Investment Income
Dividends		$ 109,344
Interest		1,686
Income from Fidelity Central Funds		15,512
Total income		126,542

Expenses
Management fee	$ 34,168
Transfer agent fees	10,560
Accounting fees and expenses	2,387
Custodian fees and expenses	24,249
Independent trustees' compensation	17
Audit	32,922
Legal	9
Miscellaneous	2,308
Total expenses before reductions	106,620
Expense reductions	(40,753)	65,867
Net investment income (loss)		60,675
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	62,781
Foreign currency transactions	(797)
Total net realized gain (loss)		61,984
Change in net unrealized appreciation (depreciation) on: Investment securities	928,238
Assets and liabilities in foreign currencies	29
Total change in net unrealized appreciation (depreciation)		928,267
Net gain (loss)		990,251
Net increase (decrease) in net assets resulting from operations		$ 1,050,926

Statement of Changes in Net Assets

	For the period April 24, 2007 (commencement of operations) to December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 60,675
Net realized gain (loss)	61,984
Change in net unrealized appreciation (depreciation)	928,267
Net increase (decrease) in net assets resulting from operations	1,050,926
Distributions to shareholders from net investment income	(55,122)
Distributions to shareholders from net realized gain	(89,733)
Total distributions	(144,855)
Share transactions - net increase (decrease)	14,075,457
Redemption fees	1,049
Total increase (decrease) in net assets	14,982,577

Net Assets
Beginning of period	-
End of period	$ 14,982,577

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Year ended December 31,	2007 ^H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.08
Net realized and unrealized gain (loss)	1.11
Total from investment operations	1.19
Distributions from net investment income	(.04)
Distributions from net realized gain	(.07)
Total distributions	(.11)
Redemption fees added to paid in capital ^E,J	-
Net asset value, end of period	$ 11.08
Total Return ^{B, C, D}	11.92%
Ratios to Average Net Assets ^{F, I}
Expenses before reductions	1.66% ^A
Expenses net of fee waivers, if any	1.00% ^A
Expenses net of all reductions	1.00% ^A
Net investment income (loss)	1.05% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 7,964
Portfolio turnover rate ^G	35% ^A

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period April 24, 2007 (commencement of operations) to December 31, 2007.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^J Amount represents less than $.01 per share.

Financial Highlights - Investor Class

Year ended December 31,	2007 ^H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.07
Net realized and unrealized gain (loss)	1.11
Total from investment operations	1.18
Distributions from net investment income	(.04)
Distributions from net realized gain	(.07)
Total distributions	(.11)
Redemption fees added to paid in capital ^E,J	-
Net asset value, end of period	$ 11.07
Total Return ^{B, C, D}	11.82%
Ratios to Average Net Assets ^{F, I}
Expenses before reductions	1.79% ^A
Expenses net of fee waivers, if any	1.15% ^A
Expenses net of all reductions	1.15% ^A
Net investment income (loss)	.90% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 7,018
Portfolio turnover rate ^G	35% ^A

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period April 24, 2007 (commencement of operations) to December 31, 2007.

^J Amount represents less than $.01 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Consumer Staples Portfolio (the Fund) is a non-diversified fund of Variable Insurance Products Fund IV (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders. The Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. There are no unrecognized tax benefits in the accompanying financial statements in connection with the tax positions expected to be taken in the initial filing of the Fund's federal tax return. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Book-tax differences are primarily due to foreign currency transactions and losses deferred due to wash sales and excise tax regulations.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 1,175,582
Unrealized depreciation	(262,264)
Net unrealized appreciation (depreciation)	$ 913,318

Cost for federal income tax purposes	$ 14,619,869

The tax character of distributions paid was as follows:

	December 31, 2007
Ordinary Income	$ 144,855

Short-Term Trading (Redemption) Fees. Shares held less than 60 days are subject to a redemption fee equal to 1% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.

New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements
(SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.

Annual Report

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $15,672,364 and $2,105,503, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.

Initial Class	$ 3,673
Investor Class	6,887
	$ 10,560

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.

7. Expense Reductions.

The following classes were in reimbursement during the period:

	Expense Limitations	Reimbursement from adviser

Initial Class	1.00%	$ 22,009
Investor Class	1.15%	18,554
		$ 40,563

Effective February 1, 2008, the expense limitation changed to 1.08% for Investor Class.

Annual Report

Notes to Financial Statements - continued

8. Other.

At the end of the period, FMR or its affiliates were the owners of record of 100% of the total outstanding shares of the Fund.

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Year ended December 31,	2007 ^A
From net investment income
Initial Class	$ 30,241
Investor Class	24,881
Total	$ 55,122
From net realized gain
Initial Class	$ 49,230
Investor Class	40,503
Total	$ 89,733

^AFor the period April 24, 2007 (commencement of operations) to December 31, 2007.

10. Share Transactions.

Transactions for each class of shares were as follows:

Year ended December 31,	Shares 2007 ^A	Dollars 2007 ^A
Initial Class
Shares sold	737,178	$ 7,668,501
Reinvestment of distributions	7,108	79,471
Shares redeemed	(25,448)	(270,975)
Net increase (decrease)	718,838	$ 7,476,997
Investor Class
Shares sold	637,642	$ 6,632,924
Reinvestment of distributions	5,854	65,384
Shares redeemed	(9,503)	(99,848)
Net increase (decrease)	633,993	$ 6,598,460

^A For the period April 24, 2007 (commencement of operations) to December 31, 2007.

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Consumer Staples Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Consumer Staples Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, and the results of its operations, the changes in its net assets and the financial highlights for the period April 24, 2007 (commencement of operations) through December 31, 2007, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Consumer Staples Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 19, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006- present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Consumer Staples. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Brian B. Hogan (43)
	Year of Election or Appointment: 2007 Vice President of VIP Consumer Staples. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager.
Eric D. Roiter (59)
	Year of Election or Appointment: 2007 Secretary of VIP Consumer Staples. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Consumer Staples. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2007 Anti-Money Laundering (AML) officer of VIP Consumer Staples. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2007 Chief Financial Officer of VIP Consumer Staples. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2007 Chief Compliance Officer of VIP Consumer Staples. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2007 Deputy Treasurer of VIP Consumer Staples. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2007 Deputy Treasurer of VIP Consumer Staples. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Consumer Staples. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Consumer Staples. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Consumer Staples. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Consumer Staples. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

Initial Class and Investor Class each designate 58% of the dividends distributed in December 2007, as qualifying for the dividends-received deduction for corporate shareholders.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors (U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

State Street Bank and Trust Company
Quincy, MA

VCSP-ANN-0208
1.850994.100

Fidelity® Variable Insurance Products:
Energy Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 the 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Past 5 years	Life of fund^A
VIP Energy - Initial Class ^C	45.97%	32.23%	21.22%
VIP Energy - Investor Class^{B, C}	45.88%	32.15%	21.17%

^A From July 19, 2001.

^B The initial offering of Investor Class took place on July 21, 2005. Returns prior to July 21, 2005 are those of Initial Class. If Investor Class's transfer agent fee had been reflected, returns prior to July 21, 2005 would have been lower.

^C Prior to October 1, 2006, VIP Energy operated under certain different investment policies. The historical performance for the fund may not represent its current investment policies.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Energy Portfolio - Initial Class on July 19, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from John Dowd, Portfolio Manager of VIP Energy Portfolio

U.S. equity markets, as measured by the bellwether Dow Jones Industrial Average^SM and the Standard & Poor's 500^SM Index, registered their fifth consecutive year of positive returns in 2007, as the Dow rose 8.88% and the S&P 500® index advanced 5.49%. The tech-heavy NASDAQ Composite® Index did even better, increasing 10.55%. However, credit-and recession-related concerns carved deeply into stock prices late in 2007, pushing some major market measures into negative territory for the year overall, particularly smaller-cap and value-oriented benchmarks. Based largely on a weak U.S. dollar that boosted returns for U.S. investors, the Morgan Stanley Capital International^SM Europe, Australasia, and Far East (MSCI® EAFE®) Index - a gauge of developed stock markets outside the United States and Canada - beat most domestic equity measures, gaining 11.33%. Several European countries had outstanding performance, including Finland and Germany, while Australia also did very well. However, fallout from the credit crunch and concerns about export growth tempered U.K. stocks, while fears that Japanese financial companies would become embroiled in the U.S. subprime mortgage crisis contributed to a loss of more than 4% for the Japanese portion of the index. The emerging-markets stock asset class soared 39.78% according to the MSCI Emerging Markets index. The U.S. investment-grade bond market climbed 6.97% as measured by the Lehman Brothers® U.S. Aggregate Index, beating the 2.53% gain for the Merrill Lynch® U.S. High Yield Master II Constrained Index. The emerging-markets bond category shook off a sluggish first half of 2007 to finish the year with a respectable gain of 6.28% as measured by the J.P. Morgan Emerging Markets Bond Index (EMBI) Global, while the Citigroup® Non-U.S. Group of 7 Index - representing the debt performance of major global economies, excluding the United States - rose 13.05%.

For the 12 months ending December 31, 2007, the fund solidly outperformed the 34.42% gain of the Morgan Stanley Capital International (MSCI®) US Investable Market Energy Index and the S&P 500. (For specific portfolio performance results, please refer to the performance section of this report.) Despite an overweighting in oil and gas refining and marketing stocks, which underperformed other groups in the sector, and a couple of missed opportunities in oil-related stocks, superior stock selection and beneficial industry overweightings propelled the fund's return past that of the MSCI index. In terms of subsectors, the fund's overweightings included oil and gas equipment and services, coal and consumable fuels, oil and gas exploration and production, and oil and gas drilling. Overweighted positions in oil rig manufacturer National Oilwell Varco, natural gas producer Range Resources, and U.S. coal producer CONSOL Energy made these stocks top contributors. An out-of-benchmark position in Danish wind turbine maker Vestas Wind Systems also worked well, as did a big underweighting in integrated oil company Exxon Mobil, which helped relative returns when this major index component underperformed the sector as a whole. Conversely, an overweighted position in oil and gas exploration/production company Plains Exploration & Production detracted, as did untimely ownership of refining company Tesoro and underweightings in oil and gas exploration/production company Apache and integrated oil company Occidental Petroleum: All three delivered strong returns. Oilfield services provider Baker Hughes also hurt fund results.

Annual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including 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 the 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 (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 1,185.30	$ 3.75
Hypothetical^A	$ 1,000.00	$ 1,021.78	$ 3.47
Service Class 2
Actual	$ 1,000.00	$ 1,183.90	$ 5.17
Hypothetical^A	$ 1,000.00	$ 1,020.47	$ 4.79
Investor Class
Actual	$ 1,000.00	$ 1,185.00	$ 4.41
Hypothetical^A	$ 1,000.00	$ 1,021.17	$ 4.08

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.68%
Service Class 2	.94%
Investor Class	.80%

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Exxon Mobil Corp.	14.3	13.2
Valero Energy Corp.	6.8	7.0
National Oilwell Varco, Inc.	6.3	4.6
Schlumberger Ltd. (NY Shares)	6.0	6.7
CONSOL Energy, Inc.	4.1	1.2
Peabody Energy Corp.	3.9	1.2
Range Resources Corp.	3.6	3.3
Transocean, Inc.	3.4	2.4
Cabot Oil & Gas Corp.	3.0	2.9
Ultra Petroleum Corp.	2.7	2.8
	54.1

Top Industries (% of fund's net assets)
As of December 31, 2007
	Oil, Gas & Consumable Fuels	67.5%
	Energy Equipment & Services	27.5%
	Electrical Equipment	2.9%
	Construction & Engineering	0.8%
	Independent Power Producers & Energy Traders	0.3%
	All Others*	1.0%


As of June 30, 2007
	Oil, Gas & Consumable Fuels	64.3%
	Energy Equipment & Services	31.5%
	Electrical Equipment	1.5%
	Construction & Engineering	1.0%
	Multi-utilities	0.2%
	All Others*	1.5%

* Includes short-term investments and net other assets.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 99.4%
	Shares		Value
COMMERCIAL SERVICES & SUPPLIES - 0.0%
Environmental & Facility Services - 0.0%
Fuel Tech, Inc. (a)	10,149		$ 229,875
CONSTRUCTION & ENGINEERING - 0.8%
Construction & Engineering - 0.8%
Chicago Bridge & Iron Co. NV (NY Shares)	11,800		713,192
Jacobs Engineering Group, Inc. (a)	52,000		4,971,720
			5,684,912
ELECTRICAL EQUIPMENT - 2.9%
Electrical Components & Equipment - 1.0%
First Solar, Inc. (a)	1,400		373,996
JA Solar Holdings Co. Ltd. ADR	33,200		2,317,692
Q-Cells AG (a)	8,600		1,224,962
Renewable Energy Corp. AS (a)	35,900		1,823,240
Sunpower Corp. Class A (a)	500		65,195
Suntech Power Holdings Co. Ltd. sponsored ADR (a)	11,100		913,752
			6,718,837
Heavy Electrical Equipment - 1.9%
Suzlon Energy Ltd.	44,088		2,166,975
Vestas Wind Systems AS (a)	102,783		11,104,173
			13,271,148
TOTAL ELECTRICAL EQUIPMENT			19,989,985
ENERGY EQUIPMENT & SERVICES - 27.5%
Oil & Gas Drilling - 8.1%
Atwood Oceanics, Inc. (a)	50,200		5,032,048
Diamond Offshore Drilling, Inc.	65,100		9,244,200
Nabors Industries Ltd. (a)	32,600		892,914
Noble Corp.	202,960		11,469,270
Pride International, Inc. (a)	163,100		5,529,090
Transocean, Inc. (a)	161,647		23,139,768
			55,307,290
Oil & Gas Equipment & Services - 19.4%
Aker Kvaerner ASA	18,250		485,256
Baker Hughes, Inc.	80		6,488
Cameron International Corp. (a)	73,400		3,532,742
Compagnie Generale de Geophysique SA (a)	22,100		6,289,284
Emer International Group Ltd. (a)	342,000		235,980
Expro International Group PLC	98,500		2,021,630
Exterran Holdings, Inc. (a)	44,295		3,623,331
FMC Technologies, Inc. (a)	92,020		5,217,534
Grant Prideco, Inc. (a)	1,600		88,816
NATCO Group, Inc. Class A (a)	2,500		135,375
National Oilwell Varco, Inc. (a)	579,478		42,568,454
Oceaneering International, Inc. (a)	69,857		4,704,869
Oil States International, Inc. (a)	29,400		1,003,128
Petroleum Geo-Services ASA	22,200		644,411
ProSafe ASA	35,700		620,784

	Shares		Value
Saipem SpA	36,400		$ 1,456,078
Schlumberger Ltd. (NY Shares)	417,120		41,032,094
Smith International, Inc.	117,180		8,653,743
Subsea 7, Inc. (a)	56,500		1,263,180
Superior Energy Services, Inc. (a)	108,300		3,727,686
Weatherford International Ltd. (a)	52,800		3,622,080
WorleyParsons Ltd.	17,476		795,976
			131,728,919
TOTAL ENERGY EQUIPMENT & SERVICES			187,036,209
GAS UTILITIES - 0.1%
Gas Utilities - 0.1%
Questar Corp.	12,300		665,430
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.3%
Independent Power Producers & Energy Traders - 0.3%
AES Corp. (a)	26,800		573,252
Constellation Energy Group, Inc.	6,900		707,457
NRG Energy, Inc. (a)	12,400		537,416
			1,818,125
INDUSTRIAL CONGLOMERATES - 0.2%
Industrial Conglomerates - 0.2%
McDermott International, Inc. (a)	26,100		1,540,683
OIL, GAS & CONSUMABLE FUELS - 67.5%
Coal & Consumable Fuels - 9.8%
Alpha Natural Resources, Inc. (a)	5,600		181,888
Arch Coal, Inc.	130,150		5,847,640
CONSOL Energy, Inc.	391,130		27,973,618
Foundation Coal Holdings, Inc.	80,000		4,200,000
International Coal Group, Inc. (a)	20,500		109,880
Massey Energy Co.	55,800		1,994,850
Natural Resource Partners LP	2,700		87,642
Peabody Energy Corp.	430,670		26,546,499
			66,942,017
Integrated Oil & Gas - 26.1%
Chevron Corp.	166,980		15,584,243
ConocoPhillips	179,375		15,838,813
Exxon Mobil Corp.	1,042,711		97,691,590
Hess Corp.	97,800		9,864,108
Marathon Oil Corp.	222,100		13,517,006
Occidental Petroleum Corp.	159,600		12,287,604
Petroleo Brasileiro SA - Petrobras sponsored ADR	92,500		10,659,700
Suncor Energy, Inc.	18,000		1,954,990
			177,398,054
Oil & Gas Exploration & Production - 20.1%
American Oil & Gas, Inc. NV (a)	50,739		294,286
Apache Corp.	16,000		1,720,640
Aurora Oil & Gas Corp. (a)	198,107		307,066
Cabot Oil & Gas Corp.	508,318		20,520,798
Canadian Natural Resources Ltd.	39,200		2,863,606
Common Stocks - continued
	Shares		Value
OIL, GAS & CONSUMABLE FUELS - CONTINUED
Oil & Gas Exploration & Production - continued
Chesapeake Energy Corp. (d)	291,100		$ 11,411,120
Concho Resources, Inc.	88,544		1,824,892
EOG Resources, Inc.	138,000		12,316,500
EXCO Resources, Inc. (a)	3,700		57,276
Goodrich Petroleum Corp. (a)	17,600		398,112
Kodiak Oil & Gas Corp. (a)	101,700		223,740
Newfield Exploration Co. (a)	13,900		732,530
Noble Energy, Inc.	52,800		4,198,656
Petrohawk Energy Corp. (a)	256,200		4,434,822
Plains Exploration & Production Co. (a)	5,100		275,400
Quicksilver Resources, Inc. (a)	190,384		11,344,983
Range Resources Corp.	480,700		24,688,752
Southwestern Energy Co. (a)	120,100		6,691,972
Ultra Petroleum Corp. (a)	260,500		18,625,750
Vanguard Natural Resources LLC	3,400		54,400
XTO Energy, Inc.	269,150		13,823,544
			136,808,845
Oil & Gas Refining & Marketing - 9.3%
Holly Corp.	15,500		788,795
Petroplus Holdings AG	17,752		1,373,732
Sunoco, Inc.	51,236		3,711,536
Tesoro Corp.	205,400		9,797,580
Valero Energy Corp.	660,324		46,242,490
Western Refining, Inc.	49,606		1,200,961
			63,115,094
Oil & Gas Storage & Transport - 2.2%
El Paso Pipeline Partners LP	46,700		1,169,835
Williams Companies, Inc.	387,350		13,859,383
			15,029,218
TOTAL OIL, GAS & CONSUMABLE FUELS			459,293,228

	Shares		Value
SOFTWARE - 0.1%
Application Software - 0.1%
Zhongyu Gas Holdings Ltd. (a)	3,174,000		$ 500,702
TOTAL COMMON STOCKS (Cost $455,773,491)		676,759,149
Money Market Funds - 3.0%

Fidelity Cash Central Fund, 4.58% (b)	11,655,181		11,655,181
Fidelity Securities Lending Cash Central Fund, 4.65% (b)(c)	8,707,500		8,707,500
TOTAL MONEY MARKET FUNDS (Cost $20,362,681)		20,362,681
TOTAL INVESTMENT PORTFOLIO - 102.4% (Cost $476,136,172)			697,121,830
NET OTHER ASSETS - (2.4)%			(16,183,460)
NET ASSETS - 100%		$ 680,938,370

Legend

(a) Non-income producing

(d) Security or a portion of the security is on loan at period end.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 298,269
Fidelity Securities Lending Cash Central Fund	38,940
Total	$ 337,209

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	81.9%
Netherlands Antilles	6.0%
Canada	3.4%
Cayman Islands	2.4%
Denmark	1.6%
Brazil	1.6%
Others (individually less than 1%)	3.1%
	100.0%

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (including securities loaned of $8,428,000) - See accompanying schedule: Unaffiliated issuers (cost $455,773,491)	$ 676,759,149
Fidelity Central Funds (cost $20,362,681)	20,362,681
Total Investments (cost $476,136,172)		$ 697,121,830
Foreign currency held at value (cost $12)		7
Receivable for investments sold		1,101,868
Receivable for fund shares sold		1,819,664
Dividends receivable		261,823
Distributions receivable from Fidelity Central Funds		27,918
Prepaid expenses		1,924
Other receivables		3,680
Total assets		700,338,714

Liabilities
Payable for investments purchased	$ 9,915,469
Payable for fund shares redeemed	221,813
Accrued management fee	298,944
Distribution fees payable	38,203
Other affiliated payables	66,554
Other payables and accrued expenses	151,861
Collateral on securities loaned, at value	8,707,500
Total liabilities		19,400,344

Net Assets		$ 680,938,370
Net Assets consist of:
Paid in capital		$ 453,304,513
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		6,745,419
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		220,888,438
Net Assets		$ 680,938,370
Initial Class: Net Asset Value, offering price and redemption price per share ($355,853,699 ÷ 13,402,854 shares)		$ 26.55

Service Class 2: Net Asset Value, offering price and redemption price per share ($193,886,517 ÷ 7,333,146 shares)		$ 26.44

Investor Class: Net Asset Value, offering price and redemption price per share ($131,198,154 ÷ 4,953,466 shares)		$ 26.49

Statement of Operations

	Year ended December 31, 2007

Investment Income
Dividends		$ 4,723,121
Interest		63
Income from Fidelity Central Funds		337,209
Total income		5,060,393

Expenses
Management fee	$ 2,786,723
Transfer agent fees	429,230
Distribution fees	304,246
Accounting and security lending fees	193,018
Custodian fees and expenses	34,197
Independent trustees' compensation	1,681
Registration fees	400
Audit	42,713
Legal	4,313
Interest	10,659
Miscellaneous	86,199
Total expenses before reductions	3,893,379
Expense reductions	(6,437)	3,886,942
Net investment income (loss)		1,173,451
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers (net of foreign taxes of $3,663)	35,802,209
Foreign currency transactions	4,263
Total net realized gain (loss)		35,806,472
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $97,338)	145,447,842
Assets and liabilities in foreign currencies	63
Total change in net unrealized appreciation (depreciation)		145,447,905
Net gain (loss)		181,254,377
Net increase (decrease) in net assets resulting from operations		$ 182,427,828

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 1,173,451	$ 1,751,602
Net realized gain (loss)	35,806,472	50,115,511
Change in net unrealized appreciation (depreciation)	145,447,905	(2,183,254)
Net increase (decrease) in net assets resulting from operations	182,427,828	49,683,859
Distributions to shareholders from net investment income	(1,200,523)	(2,844,412)
Distributions to shareholders from net realized gain	(27,081,489)	(54,354,221)
Total distributions	(28,282,012)	(57,198,633)
Share transactions - net increase (decrease)	124,344,576	38,551,892
Redemption fees	169,727	261,131
Total increase (decrease) in net assets	278,660,119	31,298,249

Net Assets
Beginning of period	402,278,251	370,980,002
End of period	$ 680,938,370	$ 402,278,251

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 19.04	$ 18.92	$ 13.62	$ 11.04	$ 8.49
Income from Investment Operations
Net investment income (loss)^C	.07	.09	.10	.10	.05
Net realized and unrealized gain (loss)	8.62	3.09	6.20	2.53	2.54
Total from investment operations	8.69	3.18	6.30	2.63	2.59
Distributions from net investment income	(.06)	(.16)	(.08)	(.07)	(.05)
Distributions from net realized gain	(1.13)	(2.91)	(.94)	-	-
Total distributions	(1.19)	(3.07)	(1.02)	(.07)	(.05)
Redemption fees added to paid in capital^C	.01	.01	.02	.02	.01
Net asset value, end of period	$ 26.55	$ 19.04	$ 18.92	$ 13.62	$ 11.04
Total Return^{A, B}	45.97%	16.91%	46.31%	23.96%	30.61%
Ratios to Average Net Assets^{D, F}
Expenses before reductions	.70%	.71%	.72%	.78%	1.26%
Expenses net of fee waivers, if any	.70%	.71%	.72%	.78%	1.26%
Expenses net of all reductions	.70%	.70%	.66%	.74%	1.25%
Net investment income (loss)	.31%	.43%	.56%	.80%	.56%
Supplemental Data
Net assets, end of period (000 omitted)	$ 355,854	$ 280,537	$ 334,368	$ 125,781	$ 31,624
Portfolio turnover rate^E	61%	151%	107%	87%	73%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 18.98	$ 18.90	$ 15.80
Income from Investment Operations
Net investment income (loss)^E	.02	.04	.04
Net realized and unrealized gain (loss)	8.58	3.07	4.04
Total from investment operations	8.60	3.11	4.08
Distributions from net investment income	(.02)	(.13)	(.07)
Distributions from net realized gain	(1.13)	(2.91)	(.92)
Total distributions	(1.15)	(3.04)	(.99)
Redemption fees added to paid in capital^E	.01	.01	.01
Net asset value, end of period	$ 26.44	$ 18.98	$ 18.90
Total Return^{B, C,D}	45.64%	16.55%	25.80%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.95%	.96%	.97%^A
Expenses net of fee waivers, if any	.95%	.96%	.97%^A
Expenses net of all reductions	.94%	.95%	.91%^A
Net investment income (loss)	.07%	.18%	.31%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 193,887	$ 70,305	$ 20,211
Portfolio turnover rate^G	61%	151%	107%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period April 6, 2005 (commencement of sale of shares) to December 31, 2005.

Financial Highlights - Investor Class

Years ended December 31,	2007	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 19.00	$ 18.91	$ 16.76
Income from Investment Operations
Net investment income (loss)^E	.05	.06	.03
Net realized and unrealized gain (loss)	8.61	3.08	3.11
Total from investment operations	8.66	3.14	3.14
Distributions from net investment income	(.05)	(.15)	(.08)
Distributions from net realized gain	(1.13)	(2.91)	(.92)
Total distributions	(1.18)	(3.06)	(1.00)
Redemption fees added to paid in capital^E	.01	.01	.01
Net asset value, end of period	$ 26.49	$ 19.00	$ 18.91
Total Return^{B, C,D}	45.88%	16.69%	18.73%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.81%	.84%	.91%^A
Expenses net of fee waivers, if any	.81%	.84%	.91%^A
Expenses net of all reductions	.81%	.82%	.85%^A
Net investment income (loss)	.20%	.31%	.37%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 131,198	$ 51,436	$ 16,402
Portfolio turnover rate^G	61%	151%	107%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Energy Portfolio (the Fund) is a non-diversified fund of Variable Insurance Products Fund IV (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class 2 shares, and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Annual Report

3. Significant Accounting Policies - continued

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions 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. 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 Fund is 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Book-tax differences are primarily due to short-term capital gains, foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), partnerships and losses deferred due to wash sales.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 224,430,603
Unrealized depreciation	(4,976,707)
Net unrealized appreciation (depreciation)	219,453,896
Undistributed ordinary income	2,153,224
Undistributed long-term capital gain	6,026,721

Cost for federal income tax purposes	$ 477,667,934

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 5,047,984	$ 27,103,286
Long-term Capital Gains	23,234,028	30,095,347
Total	$ 28,282,012	$ 57,198,633

Annual Report

Notes to Financial Statements - continued

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $397,673,505 and $302,722,825, respectively.

6. Fees and Other Transactions with Affiliates.

Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted a separate 12b-1 Plan for Service Class 2 shares. Service Class 2 pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, a service fee. For the period, the service fee is based on an annual rate of .25% of Service Class 2's average net assets.

For the period, Service Class 2 paid FDC $304,246, all of which was re-allowed to insurance companies for the distribution of shares and providing shareholder support services.

Initial Class	$ 198,809
Service Class 2	80,600
Investor Class	149,821
	$ 429,230

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Interfund Lending Program. Pursuant to an Exemptive Order issued by the SEC, the Fund, along with other registered investment companies having management contracts with FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing the funds to borrow from, or lend money to, other participating affiliated funds. At period end, there were no interfund loans outstanding. The Fund's activity in this program during the period for which loans were outstanding was as follows:

Borrower or Lender	Average Daily Loan Balance	Weighted Average Interest Rate	Interest Expense
Borrower	$ 4,464,563	5.37%	$ 10,659

Annual Report

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $920 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the 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 the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $38,940.

9. Expense Reductions.

10. Other.

At the end of the period, FMR or its affiliates were the owners of record of 72% of the total outstanding shares of the Fund and one otherwise unaffiliated shareholder was the owner of record of 28% of the total outstanding shares of the Fund.

Annual Report

Notes to Financial Statements - continued

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ 816,831	$ 2,085,944
Service Class 2	167,443	417,004
Investor Class	216,249	341,464
Total	$ 1,200,523	$ 2,844,412
From net realized gain
Initial Class	$ 14,471,944	$ 38,831,658
Service Class 2	7,591,179	8,989,384
Investor Class	5,018,366	6,533,179
Total	$ 27,081,489	$ 54,354,221

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	1,857,099	3,276,992	$ 44,454,803	$ 71,557,806
Reinvestment of distributions	597,904	2,133,823	15,288,775	40,917,603
Shares redeemed	(3,787,008)	(8,345,943)	(77,567,833)	(169,302,328)
Net increase (decrease)	(1,332,005)	(2,935,128)	$ (17,824,255)	$ (56,826,919)
Service Class 2
Shares sold	4,400,682	3,062,096	$ 102,772,658	$ 65,681,537
Reinvestment of distributions	300,833	493,393	7,758,622	9,406,387
Shares redeemed	(1,072,210)	(921,256)	(23,413,472)	(18,804,698)
Net increase (decrease)	3,629,305	2,634,233	$ 87,117,808	$ 56,283,226
Investor Class
Shares sold	2,764,988	1,990,866	$ 64,717,111	$ 42,583,288
Reinvestment of distributions	202,756	360,165	5,234,615	6,874,643
Shares redeemed	(720,765)	(512,058)	(14,900,703)	(10,362,346)
Net increase (decrease)	2,246,979	1,838,973	$ 55,051,023	$ 39,095,585

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Energy Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Energy Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Energy Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 14, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002- present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Energy. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Brian B. Hogan (43)
	Year of Election or Appointment: 2007 Vice President of VIP Energy. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager.
Eric D. Roiter (59)
	Year of Election or Appointment: 2001 Secretary of VIP Energy. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Energy. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present), and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Energy. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Energy. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Energy. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Energy. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Energy. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Energy. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Energy. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Energy. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Energy. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP Energy Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

	Pay Date	Record Date	Capital Gains
Initial Class	02/08/08	02/08/08	$0.33
Investor Class	02/08/08	02/08/08	$0.33

The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2007, $27,668,400, or, if subsequently determined to be different, the net capital gain of such year.

A percentage of the dividends distributed during the fiscal year for the following classes qualifies for the dividends-received deduction for corporate shareholders:

	February	December
Initial Class	20%	72%
Investor Class	20%	78%

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Energy Portfolio

Annual Report

VIP Energy Portfolio

The Board stated that the relative investment performance of Initial Class of the fund compared favorably to its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Energy Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each class ranked below its competitive median for 2006.

Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

Annual Report

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

State Street Bank & Trust Co.
Quincy, MA

VNRIC-ANN-0208
1.817379.102

Fidelity® Variable Insurance Products:
Energy Portfolio: Service Class 2

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 the 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Past 5 years	Life of fund^A
VIP Energy - Service Class 2 ^{B, C}	45.64%	32.05%	21.09%

^A From July 19, 2001.

^B The initial offering of Service Class 2 shares took place on April 6, 2005. Performance for Service Class 2 shares reflects an asset-based service fee (12b-1 fee). Returns prior to April 6, 2005 are those of Initial Class and do not include the effects of Service Class 2's 12b-1 fee. Had Service Class 2's 12b-1 fee been reflected, returns prior to April 6, 2005 would have been lower.

^C Prior to October 1, 2006, VIP Energy operated under certain different investment policies. The historical performance for the fund may not represent its current investment policies.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Energy Portfolio - Service Class 2 on July 19, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period. The initial offering of Service Class 2 took place on April 6, 2005. See above for additional information regarding the performance of Service Class 2.

Annual Report

Management's Discussion of Fund Performance

Comments from John Dowd, Portfolio Manager of VIP Energy Portfolio

U.S. equity markets, as measured by the bellwether Dow Jones Industrial Average^SM and the Standard & Poor's 500^SM Index, registered their fifth consecutive year of positive returns in 2007, as the Dow rose 8.88% and the S&P 500® index advanced 5.49%. The tech-heavy NASDAQ Composite® Index did even better, increasing 10.55%. However, credit-and recession-related concerns carved deeply into stock prices late in 2007, pushing some major market measures into negative territory for the year overall, particularly smaller-cap and value-oriented benchmarks. Based largely on a weak U.S. dollar that boosted returns for U.S. investors, the Morgan Stanley Capital International^SM Europe, Australasia, and Far East (MSCI® EAFE®) Index - a gauge of developed stock markets outside the United States and Canada - beat most domestic equity measures, gaining 11.33%. Several European countries had outstanding performance, including Finland and Germany, while Australia also did very well. However, fallout from the credit crunch and concerns about export growth tempered U.K. stocks, while fears that Japanese financial companies would become embroiled in the U.S. subprime mortgage crisis contributed to a loss of more than 4% for the Japanese portion of the index. The emerging-markets stock asset class soared 39.78% according to the MSCI Emerging Markets index. The U.S. investment-grade bond market climbed 6.97% as measured by the Lehman Brothers® U.S. Aggregate Index, beating the 2.53% gain for the Merrill Lynch® U.S. High Yield Master II Constrained Index. The emerging-markets bond category shook off a sluggish first half of 2007 to finish the year with a respectable gain of 6.28% as measured by the J.P. Morgan Emerging Markets Bond Index (EMBI) Global, while the Citigroup® Non-U.S. Group of 7 Index - representing the debt performance of major global economies, excluding the United States - rose 13.05%.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 1,185.30	$ 3.75
Hypothetical^A	$ 1,000.00	$ 1,021.78	$ 3.47
Service Class 2
Actual	$ 1,000.00	$ 1,183.90	$ 5.17
Hypothetical^A	$ 1,000.00	$ 1,020.47	$ 4.79
Investor Class
Actual	$ 1,000.00	$ 1,185.00	$ 4.41
Hypothetical^A	$ 1,000.00	$ 1,021.17	$ 4.08

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.68%
Service Class 2	.94%
Investor Class	.80%

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Exxon Mobil Corp.	14.3	13.2
Valero Energy Corp.	6.8	7.0
National Oilwell Varco, Inc.	6.3	4.6
Schlumberger Ltd. (NY Shares)	6.0	6.7
CONSOL Energy, Inc.	4.1	1.2
Peabody Energy Corp.	3.9	1.2
Range Resources Corp.	3.6	3.3
Transocean, Inc.	3.4	2.4
Cabot Oil & Gas Corp.	3.0	2.9
Ultra Petroleum Corp.	2.7	2.8
	54.1

Top Industries (% of fund's net assets)
As of December 31, 2007
	Oil, Gas & Consumable Fuels	67.5%
	Energy Equipment & Services	27.5%
	Electrical Equipment	2.9%
	Construction & Engineering	0.8%
	Independent Power Producers & Energy Traders	0.3%
	All Others*	1.0%


As of June 30, 2007
	Oil, Gas & Consumable Fuels	64.3%
	Energy Equipment & Services	31.5%
	Electrical Equipment	1.5%
	Construction & Engineering	1.0%
	Multi-utilities	0.2%
	All Others*	1.5%

* Includes short-term investments and net other assets.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 99.4%
	Shares		Value
COMMERCIAL SERVICES & SUPPLIES - 0.0%
Environmental & Facility Services - 0.0%
Fuel Tech, Inc. (a)	10,149		$ 229,875
CONSTRUCTION & ENGINEERING - 0.8%
Construction & Engineering - 0.8%
Chicago Bridge & Iron Co. NV (NY Shares)	11,800		713,192
Jacobs Engineering Group, Inc. (a)	52,000		4,971,720
			5,684,912
ELECTRICAL EQUIPMENT - 2.9%
Electrical Components & Equipment - 1.0%
First Solar, Inc. (a)	1,400		373,996
JA Solar Holdings Co. Ltd. ADR	33,200		2,317,692
Q-Cells AG (a)	8,600		1,224,962
Renewable Energy Corp. AS (a)	35,900		1,823,240
Sunpower Corp. Class A (a)	500		65,195
Suntech Power Holdings Co. Ltd. sponsored ADR (a)	11,100		913,752
			6,718,837
Heavy Electrical Equipment - 1.9%
Suzlon Energy Ltd.	44,088		2,166,975
Vestas Wind Systems AS (a)	102,783		11,104,173
			13,271,148
TOTAL ELECTRICAL EQUIPMENT			19,989,985
ENERGY EQUIPMENT & SERVICES - 27.5%
Oil & Gas Drilling - 8.1%
Atwood Oceanics, Inc. (a)	50,200		5,032,048
Diamond Offshore Drilling, Inc.	65,100		9,244,200
Nabors Industries Ltd. (a)	32,600		892,914
Noble Corp.	202,960		11,469,270
Pride International, Inc. (a)	163,100		5,529,090
Transocean, Inc. (a)	161,647		23,139,768
			55,307,290
Oil & Gas Equipment & Services - 19.4%
Aker Kvaerner ASA	18,250		485,256
Baker Hughes, Inc.	80		6,488
Cameron International Corp. (a)	73,400		3,532,742
Compagnie Generale de Geophysique SA (a)	22,100		6,289,284
Emer International Group Ltd. (a)	342,000		235,980
Expro International Group PLC	98,500		2,021,630
Exterran Holdings, Inc. (a)	44,295		3,623,331
FMC Technologies, Inc. (a)	92,020		5,217,534
Grant Prideco, Inc. (a)	1,600		88,816
NATCO Group, Inc. Class A (a)	2,500		135,375
National Oilwell Varco, Inc. (a)	579,478		42,568,454
Oceaneering International, Inc. (a)	69,857		4,704,869
Oil States International, Inc. (a)	29,400		1,003,128
Petroleum Geo-Services ASA	22,200		644,411
ProSafe ASA	35,700		620,784

	Shares		Value
Saipem SpA	36,400		$ 1,456,078
Schlumberger Ltd. (NY Shares)	417,120		41,032,094
Smith International, Inc.	117,180		8,653,743
Subsea 7, Inc. (a)	56,500		1,263,180
Superior Energy Services, Inc. (a)	108,300		3,727,686
Weatherford International Ltd. (a)	52,800		3,622,080
WorleyParsons Ltd.	17,476		795,976
			131,728,919
TOTAL ENERGY EQUIPMENT & SERVICES			187,036,209
GAS UTILITIES - 0.1%
Gas Utilities - 0.1%
Questar Corp.	12,300		665,430
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.3%
Independent Power Producers & Energy Traders - 0.3%
AES Corp. (a)	26,800		573,252
Constellation Energy Group, Inc.	6,900		707,457
NRG Energy, Inc. (a)	12,400		537,416
			1,818,125
INDUSTRIAL CONGLOMERATES - 0.2%
Industrial Conglomerates - 0.2%
McDermott International, Inc. (a)	26,100		1,540,683
OIL, GAS & CONSUMABLE FUELS - 67.5%
Coal & Consumable Fuels - 9.8%
Alpha Natural Resources, Inc. (a)	5,600		181,888
Arch Coal, Inc.	130,150		5,847,640
CONSOL Energy, Inc.	391,130		27,973,618
Foundation Coal Holdings, Inc.	80,000		4,200,000
International Coal Group, Inc. (a)	20,500		109,880
Massey Energy Co.	55,800		1,994,850
Natural Resource Partners LP	2,700		87,642
Peabody Energy Corp.	430,670		26,546,499
			66,942,017
Integrated Oil & Gas - 26.1%
Chevron Corp.	166,980		15,584,243
ConocoPhillips	179,375		15,838,813
Exxon Mobil Corp.	1,042,711		97,691,590
Hess Corp.	97,800		9,864,108
Marathon Oil Corp.	222,100		13,517,006
Occidental Petroleum Corp.	159,600		12,287,604
Petroleo Brasileiro SA - Petrobras sponsored ADR	92,500		10,659,700
Suncor Energy, Inc.	18,000		1,954,990
			177,398,054
Oil & Gas Exploration & Production - 20.1%
American Oil & Gas, Inc. NV (a)	50,739		294,286
Apache Corp.	16,000		1,720,640
Aurora Oil & Gas Corp. (a)	198,107		307,066
Cabot Oil & Gas Corp.	508,318		20,520,798
Canadian Natural Resources Ltd.	39,200		2,863,606
Common Stocks - continued
	Shares		Value
OIL, GAS & CONSUMABLE FUELS - CONTINUED
Oil & Gas Exploration & Production - continued
Chesapeake Energy Corp. (d)	291,100		$ 11,411,120
Concho Resources, Inc.	88,544		1,824,892
EOG Resources, Inc.	138,000		12,316,500
EXCO Resources, Inc. (a)	3,700		57,276
Goodrich Petroleum Corp. (a)	17,600		398,112
Kodiak Oil & Gas Corp. (a)	101,700		223,740
Newfield Exploration Co. (a)	13,900		732,530
Noble Energy, Inc.	52,800		4,198,656
Petrohawk Energy Corp. (a)	256,200		4,434,822
Plains Exploration & Production Co. (a)	5,100		275,400
Quicksilver Resources, Inc. (a)	190,384		11,344,983
Range Resources Corp.	480,700		24,688,752
Southwestern Energy Co. (a)	120,100		6,691,972
Ultra Petroleum Corp. (a)	260,500		18,625,750
Vanguard Natural Resources LLC	3,400		54,400
XTO Energy, Inc.	269,150		13,823,544
			136,808,845
Oil & Gas Refining & Marketing - 9.3%
Holly Corp.	15,500		788,795
Petroplus Holdings AG	17,752		1,373,732
Sunoco, Inc.	51,236		3,711,536
Tesoro Corp.	205,400		9,797,580
Valero Energy Corp.	660,324		46,242,490
Western Refining, Inc.	49,606		1,200,961
			63,115,094
Oil & Gas Storage & Transport - 2.2%
El Paso Pipeline Partners LP	46,700		1,169,835
Williams Companies, Inc.	387,350		13,859,383
			15,029,218
TOTAL OIL, GAS & CONSUMABLE FUELS			459,293,228

	Shares		Value
SOFTWARE - 0.1%
Application Software - 0.1%
Zhongyu Gas Holdings Ltd. (a)	3,174,000		$ 500,702
TOTAL COMMON STOCKS (Cost $455,773,491)		676,759,149
Money Market Funds - 3.0%

Fidelity Cash Central Fund, 4.58% (b)	11,655,181		11,655,181
Fidelity Securities Lending Cash Central Fund, 4.65% (b)(c)	8,707,500		8,707,500
TOTAL MONEY MARKET FUNDS (Cost $20,362,681)		20,362,681
TOTAL INVESTMENT PORTFOLIO - 102.4% (Cost $476,136,172)			697,121,830
NET OTHER ASSETS - (2.4)%			(16,183,460)
NET ASSETS - 100%		$ 680,938,370

Legend

(a) Non-income producing

(d) Security or a portion of the security is on loan at period end.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 298,269
Fidelity Securities Lending Cash Central Fund	38,940
Total	$ 337,209

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	81.9%
Netherlands Antilles	6.0%
Canada	3.4%
Cayman Islands	2.4%
Denmark	1.6%
Brazil	1.6%
Others (individually less than 1%)	3.1%
	100.0%

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (including securities loaned of $8,428,000) - See accompanying schedule: Unaffiliated issuers (cost $455,773,491)	$ 676,759,149
Fidelity Central Funds (cost $20,362,681)	20,362,681
Total Investments (cost $476,136,172)		$ 697,121,830
Foreign currency held at value (cost $12)		7
Receivable for investments sold		1,101,868
Receivable for fund shares sold		1,819,664
Dividends receivable		261,823
Distributions receivable from Fidelity Central Funds		27,918
Prepaid expenses		1,924
Other receivables		3,680
Total assets		700,338,714

Liabilities
Payable for investments purchased	$ 9,915,469
Payable for fund shares redeemed	221,813
Accrued management fee	298,944
Distribution fees payable	38,203
Other affiliated payables	66,554
Other payables and accrued expenses	151,861
Collateral on securities loaned, at value	8,707,500
Total liabilities		19,400,344

Net Assets		$ 680,938,370
Net Assets consist of:
Paid in capital		$ 453,304,513
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		6,745,419
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		220,888,438
Net Assets		$ 680,938,370
Initial Class: Net Asset Value, offering price and redemption price per share ($355,853,699 ÷ 13,402,854 shares)		$ 26.55

Service Class 2: Net Asset Value, offering price and redemption price per share ($193,886,517 ÷ 7,333,146 shares)		$ 26.44

Investor Class: Net Asset Value, offering price and redemption price per share ($131,198,154 ÷ 4,953,466 shares)		$ 26.49

Statement of Operations

	Year ended December 31, 2007

Investment Income
Dividends		$ 4,723,121
Interest		63
Income from Fidelity Central Funds		337,209
Total income		5,060,393

Expenses
Management fee	$ 2,786,723
Transfer agent fees	429,230
Distribution fees	304,246
Accounting and security lending fees	193,018
Custodian fees and expenses	34,197
Independent trustees' compensation	1,681
Registration fees	400
Audit	42,713
Legal	4,313
Interest	10,659
Miscellaneous	86,199
Total expenses before reductions	3,893,379
Expense reductions	(6,437)	3,886,942
Net investment income (loss)		1,173,451
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers (net of foreign taxes of $3,663)	35,802,209
Foreign currency transactions	4,263
Total net realized gain (loss)		35,806,472
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $97,338)	145,447,842
Assets and liabilities in foreign currencies	63
Total change in net unrealized appreciation (depreciation)		145,447,905
Net gain (loss)		181,254,377
Net increase (decrease) in net assets resulting from operations		$ 182,427,828

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 1,173,451	$ 1,751,602
Net realized gain (loss)	35,806,472	50,115,511
Change in net unrealized appreciation (depreciation)	145,447,905	(2,183,254)
Net increase (decrease) in net assets resulting from operations	182,427,828	49,683,859
Distributions to shareholders from net investment income	(1,200,523)	(2,844,412)
Distributions to shareholders from net realized gain	(27,081,489)	(54,354,221)
Total distributions	(28,282,012)	(57,198,633)
Share transactions - net increase (decrease)	124,344,576	38,551,892
Redemption fees	169,727	261,131
Total increase (decrease) in net assets	278,660,119	31,298,249

Net Assets
Beginning of period	402,278,251	370,980,002
End of period	$ 680,938,370	$ 402,278,251

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 19.04	$ 18.92	$ 13.62	$ 11.04	$ 8.49
Income from Investment Operations
Net investment income (loss)^C	.07	.09	.10	.10	.05
Net realized and unrealized gain (loss)	8.62	3.09	6.20	2.53	2.54
Total from investment operations	8.69	3.18	6.30	2.63	2.59
Distributions from net investment income	(.06)	(.16)	(.08)	(.07)	(.05)
Distributions from net realized gain	(1.13)	(2.91)	(.94)	-	-
Total distributions	(1.19)	(3.07)	(1.02)	(.07)	(.05)
Redemption fees added to paid in capital^C	.01	.01	.02	.02	.01
Net asset value, end of period	$ 26.55	$ 19.04	$ 18.92	$ 13.62	$ 11.04
Total Return^{A, B}	45.97%	16.91%	46.31%	23.96%	30.61%
Ratios to Average Net Assets^{D, F}
Expenses before reductions	.70%	.71%	.72%	.78%	1.26%
Expenses net of fee waivers, if any	.70%	.71%	.72%	.78%	1.26%
Expenses net of all reductions	.70%	.70%	.66%	.74%	1.25%
Net investment income (loss)	.31%	.43%	.56%	.80%	.56%
Supplemental Data
Net assets, end of period (000 omitted)	$ 355,854	$ 280,537	$ 334,368	$ 125,781	$ 31,624
Portfolio turnover rate^E	61%	151%	107%	87%	73%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 18.98	$ 18.90	$ 15.80
Income from Investment Operations
Net investment income (loss)^E	.02	.04	.04
Net realized and unrealized gain (loss)	8.58	3.07	4.04
Total from investment operations	8.60	3.11	4.08
Distributions from net investment income	(.02)	(.13)	(.07)
Distributions from net realized gain	(1.13)	(2.91)	(.92)
Total distributions	(1.15)	(3.04)	(.99)
Redemption fees added to paid in capital^E	.01	.01	.01
Net asset value, end of period	$ 26.44	$ 18.98	$ 18.90
Total Return^{B, C,D}	45.64%	16.55%	25.80%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.95%	.96%	.97%^A
Expenses net of fee waivers, if any	.95%	.96%	.97%^A
Expenses net of all reductions	.94%	.95%	.91%^A
Net investment income (loss)	.07%	.18%	.31%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 193,887	$ 70,305	$ 20,211
Portfolio turnover rate^G	61%	151%	107%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period April 6, 2005 (commencement of sale of shares) to December 31, 2005.

Financial Highlights - Investor Class

Years ended December 31,	2007	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 19.00	$ 18.91	$ 16.76
Income from Investment Operations
Net investment income (loss)^E	.05	.06	.03
Net realized and unrealized gain (loss)	8.61	3.08	3.11
Total from investment operations	8.66	3.14	3.14
Distributions from net investment income	(.05)	(.15)	(.08)
Distributions from net realized gain	(1.13)	(2.91)	(.92)
Total distributions	(1.18)	(3.06)	(1.00)
Redemption fees added to paid in capital^E	.01	.01	.01
Net asset value, end of period	$ 26.49	$ 19.00	$ 18.91
Total Return^{B, C,D}	45.88%	16.69%	18.73%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.81%	.84%	.91%^A
Expenses net of fee waivers, if any	.81%	.84%	.91%^A
Expenses net of all reductions	.81%	.82%	.85%^A
Net investment income (loss)	.20%	.31%	.37%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 131,198	$ 51,436	$ 16,402
Portfolio turnover rate^G	61%	151%	107%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Annual Report

3. Significant Accounting Policies - continued

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions 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. 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 Fund is 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 224,430,603
Unrealized depreciation	(4,976,707)
Net unrealized appreciation (depreciation)	219,453,896
Undistributed ordinary income	2,153,224
Undistributed long-term capital gain	6,026,721

Cost for federal income tax purposes	$ 477,667,934

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 5,047,984	$ 27,103,286
Long-term Capital Gains	23,234,028	30,095,347
Total	$ 28,282,012	$ 57,198,633

Annual Report

Notes to Financial Statements - continued

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $397,673,505 and $302,722,825, respectively.

6. Fees and Other Transactions with Affiliates.

For the period, Service Class 2 paid FDC $304,246, all of which was re-allowed to insurance companies for the distribution of shares and providing shareholder support services.

Initial Class	$ 198,809
Service Class 2	80,600
Investor Class	149,821
	$ 429,230

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

Borrower or Lender	Average Daily Loan Balance	Weighted Average Interest Rate	Interest Expense
Borrower	$ 4,464,563	5.37%	$ 10,659

Annual Report

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $920 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

9. Expense Reductions.

10. Other.

Annual Report

Notes to Financial Statements - continued

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ 816,831	$ 2,085,944
Service Class 2	167,443	417,004
Investor Class	216,249	341,464
Total	$ 1,200,523	$ 2,844,412
From net realized gain
Initial Class	$ 14,471,944	$ 38,831,658
Service Class 2	7,591,179	8,989,384
Investor Class	5,018,366	6,533,179
Total	$ 27,081,489	$ 54,354,221

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	1,857,099	3,276,992	$ 44,454,803	$ 71,557,806
Reinvestment of distributions	597,904	2,133,823	15,288,775	40,917,603
Shares redeemed	(3,787,008)	(8,345,943)	(77,567,833)	(169,302,328)
Net increase (decrease)	(1,332,005)	(2,935,128)	$ (17,824,255)	$ (56,826,919)
Service Class 2
Shares sold	4,400,682	3,062,096	$ 102,772,658	$ 65,681,537
Reinvestment of distributions	300,833	493,393	7,758,622	9,406,387
Shares redeemed	(1,072,210)	(921,256)	(23,413,472)	(18,804,698)
Net increase (decrease)	3,629,305	2,634,233	$ 87,117,808	$ 56,283,226
Investor Class
Shares sold	2,764,988	1,990,866	$ 64,717,111	$ 42,583,288
Reinvestment of distributions	202,756	360,165	5,234,615	6,874,643
Shares redeemed	(720,765)	(512,058)	(14,900,703)	(10,362,346)
Net increase (decrease)	2,246,979	1,838,973	$ 55,051,023	$ 39,095,585

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Energy Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Energy Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Energy Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 14, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002- present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Energy. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Brian B. Hogan (43)
	Year of Election or Appointment: 2007 Vice President of VIP Energy. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager.
Eric D. Roiter (59)
	Year of Election or Appointment: 2001 Secretary of VIP Energy. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Energy. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present), and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Energy. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Energy. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Energy. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Energy. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Energy. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Energy. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Energy. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Energy. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Energy. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

	Pay Date	Record Date	Capital Gains
Service Class 2	02/08/08	02/08/08	$0.33

A percentage of the dividends distributed during the fiscal year for the following classes qualifies for the dividends-received deduction for corporate shareholders:

	February	December
Service Class 2	20%	89%

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Energy Portfolio

Annual Report

VIP Energy Portfolio

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Energy Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each class ranked below its competitive median for 2006.

Annual Report

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agent

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

State Street Bank & Trust Co.
Quincy, MA

VNR2-ANN-0208
1.826359.103

Fidelity® Variable Insurance Products:
Financial Services Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 the 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Past 5 years	Life of fund^A
VIP Financial Services - Initial Class	-13.43%	9.61%	4.81%
VIP Financial Services - Investor Class^B	-13.60%	9.54%	4.75%

^A From July 18, 2001.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Financial Services Portfolio - Initial Class on July 18, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Richard Manuel, who will become sole Portfolio Manager of VIP Financial Services Portfolio on January 11, 2008.

For the year ending December 31, 2007, the fund beat the -17.34% return of the Morgan Stanley Capital International^SM (MSCI®)US Investable Market Financials Index, but lagged the S&P 500 index. (For specific portfolio performance results, please refer to the performance section of this report.) Growing defaults and delinquencies in the subprime mortgage market triggered credit and liquidity concerns that severely pressured the sector. Good stock selection and positive industry positioning helped the fund hold up better than the MSCI index, with the biggest gains coming from an overweighting in reinsurance stocks. Thrifts and mortgage finance companies, which also were an overweighting, detracted from returns. The fund was helped by Platinum Underwriters and Endurance Specialty, reinsurers that benefited from better-than-expected industry pricing and a mild hurricane season. An underweighting in Citigroup, the world's largest financial company, further aided relative returns, as subprime mortgage exposure sank the stock. Among the biggest detractors were stocks hit hard by the subprime meltdown, including Countrywide Financial, a leading mortgage originator; MBIA, a bond insurer; and Radian, a mortgage and bond insurer. I sold the fund's stake in Radian before the period end.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 857.30	$ 4.49
Hypothetical ^A	$ 1,000.00	$ 1,020.37	$ 4.89
Investor Class
Actual	$ 1,000.00	$ 856.60	$ 5.01
Hypothetical ^A	$ 1,000.00	$ 1,019.81	$ 5.45

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.96%
Investor Class	1.07%

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
American International Group, Inc.	6.5	7.0
JPMorgan Chase & Co.	5.3	5.5
Wells Fargo & Co.	4.9	5.2
Citigroup, Inc.	4.7	5.4
Bank of America Corp.	4.7	5.4
ACE Ltd.	3.0	2.7
State Street Corp.	3.0	1.4
Platinum Underwriters Holdings Ltd.	2.7	3.4
MetLife, Inc.	2.7	2.4
Endurance Specialty Holdings Ltd.	2.2	3.2
	39.7

Top Industries (% of fund's net assets)
As of December 31, 2007
	Insurance	32.5%
	Capital Markets	18.6%
	Diversified Financial Services	18.1%
	Commercial Banks	10.9%
	Real Estate Investment Trusts	4.9%
	All Others*	15.0%


As of June 30, 2007
	Insurance	31.5%
	Diversified Financial Services	18.4%
	Capital Markets	16.7%
	Commercial Banks	15.2%
	Thrifts & Mortgage Finance	9.5%
	All Others*	8.7%

* Includes short-term investments and net other assets.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 94.6%
	Shares		Value
CAPITAL MARKETS - 18.6%
Asset Management & Custody Banks - 10.3%
Bank of New York Mellon Corp.	11,000		$ 536,360
EFG International	5,770		231,655
Fortress Investment Group LLC (d)	5,600		87,248
Franklin Resources, Inc.	4,900		560,707
GLG Partners, Inc. (a)	7,500		102,000
Janus Capital Group, Inc.	9,800		321,930
Julius Baer Holding AG	2,287		188,885
KKR Private Equity Investors, LP	2,800		50,120
KKR Private Equity Investors, LP Restricted Depositary Units (e)	4,300		76,970
Legg Mason, Inc.	1,200		87,780
State Street Corp.	12,767		1,036,680
T. Rowe Price Group, Inc.	2,200		133,936
The Blackstone Group LP	5,300		117,289
			3,531,560
Diversified Capital Markets - 0.6%
UBS AG (NY Shares)	4,300		197,800
Investment Banking & Brokerage - 7.7%
Bear Stearns Companies, Inc.	3,500		308,875
Charles Schwab Corp.	18,900		482,895
Goldman Sachs Group, Inc.	2,300		494,615
Lazard Ltd. Class A	2,500		101,700
Lehman Brothers Holdings, Inc.	8,800		575,872
Merrill Lynch & Co., Inc.	5,700		305,976
MF Global Ltd.	2,400		75,528
Morgan Stanley	5,010		266,081
			2,611,542
TOTAL CAPITAL MARKETS			6,340,902
COMMERCIAL BANKS - 10.9%
Diversified Banks - 8.2%
ICICI Bank Ltd. sponsored ADR	1,300		79,950
U.S. Bancorp, Delaware	14,100		447,534
Wachovia Corp.	16,097		612,169
Wells Fargo & Co.	54,700		1,651,393
			2,791,046
Regional Banks - 2.7%
Cathay General Bancorp	4,698		124,450
Center Financial Corp., California	6,800		83,776
Colonial Bancgroup, Inc.	2,050		27,757
Nara Bancorp, Inc.	4,300		50,181
PNC Financial Services Group, Inc.	9,600		630,240
Wintrust Financial Corp.	400		13,252
			929,656
TOTAL COMMERCIAL BANKS			3,720,702
CONSUMER FINANCE - 3.9%
Consumer Finance - 3.9%
American Express Co.	13,940		725,159

	Shares		Value
Capital One Financial Corp. (d)	5,100		$ 241,026
Discover Financial Services	13,555		204,409
Dollar Financial Corp. (a)	5,510		169,102
			1,339,696
DIVERSIFIED FINANCIAL SERVICES - 18.1%
Other Diversifed Financial Services - 14.7%
Bank of America Corp.	38,549		1,590,532
Citigroup, Inc.	54,430		1,602,419
JPMorgan Chase & Co.	41,638		1,817,499
			5,010,450
Specialized Finance - 3.4%
CME Group, Inc.	887		608,482
Deutsche Boerse AG	1,900		376,416
JSE Ltd.	3,400		43,114
MarketAxess Holdings, Inc. (a)	10,100		129,583
			1,157,595
TOTAL DIVERSIFIED FINANCIAL SERVICES			6,168,045
INSURANCE - 32.5%
Insurance Brokers - 1.0%
National Financial Partners Corp.	5,400		246,294
Willis Group Holdings Ltd.	2,300		87,331
			333,625
Life & Health Insurance - 7.6%
AFLAC, Inc.	8,400		526,092
MetLife, Inc.	14,910		918,754
Principal Financial Group, Inc.	7,200		495,648
Prudential Financial, Inc.	6,900		641,976
			2,582,470
Multi-Line Insurance - 8.5%
American International Group, Inc.	38,310		2,233,473
Assurant, Inc.	3,000		200,700
Hartford Financial Services Group, Inc.	5,560		484,776
			2,918,949
Property & Casualty Insurance - 8.2%
ACE Ltd.	16,850		1,040,993
AMBAC Financial Group, Inc.	2,100		54,117
Argo Group International Holdings, Ltd. (a)	4,344		183,013
Aspen Insurance Holdings Ltd.	11,600		334,544
Axis Capital Holdings Ltd.	11,300		440,361
MBIA, Inc.	8,660		161,336
The Travelers Companies, Inc.	5,300		285,140
United America Indemnity Ltd. Class A (a)	8,200		163,344
XL Capital Ltd. Class A	2,600		130,806
			2,793,654
Reinsurance - 7.2%
Endurance Specialty Holdings Ltd.	18,160		757,817
Everest Re Group Ltd.	1,000		100,400
Common Stocks - continued
	Shares		Value
INSURANCE - CONTINUED
Reinsurance - continued
IPC Holdings Ltd.	5,700		$ 164,559
Max Capital Group Ltd.	7,599		212,696
Montpelier Re Holdings Ltd.	2,000		34,020
PartnerRe Ltd.	1,700		140,301
Platinum Underwriters Holdings Ltd.	26,100		928,116
RenaissanceRe Holdings Ltd.	2,100		126,504
			2,464,413
TOTAL INSURANCE			11,093,111
REAL ESTATE INVESTMENT TRUSTS - 4.9%
Mortgage REITs - 1.0%
Annaly Capital Management, Inc.	19,300		350,874
Residential REITs - 1.1%
Equity Lifestyle Properties, Inc.	4,800		219,216
UDR, Inc.	7,600		150,860
			370,076
Retail REITs - 2.8%
CBL & Associates Properties, Inc.	2,600		62,166
Developers Diversified Realty Corp.	8,800		336,952
General Growth Properties, Inc.	8,700		358,266
Simon Property Group, Inc.	2,400		208,464
			965,848
TOTAL REAL ESTATE INVESTMENT TRUSTS			1,686,798
REAL ESTATE MANAGEMENT & DEVELOPMENT - 1.0%
Real Estate Management & Development - 1.0%
Mitsubishi Estate Co. Ltd.	15,000		358,015
THRIFTS & MORTGAGE FINANCE - 4.7%
Thrifts & Mortgage Finance - 4.7%
BankUnited Financial Corp. Class A (d)	4,500		31,050
Countrywide Financial Corp.	27,395		244,911
Fannie Mae	10,550		421,789
FirstFed Financial Corp. (a)(d)	4,600		164,772

	Shares		Value
Freddie Mac	10,800		$ 367,956
Hudson City Bancorp, Inc.	18,279		274,551
Washington Mutual, Inc. (d)	8,700		118,407
			1,623,436
TOTAL COMMON STOCKS (Cost $29,580,426)		32,330,705
Money Market Funds - 6.5%

Fidelity Cash Central Fund, 4.58% (b)	1,911,930		1,911,930
Fidelity Securities Lending Cash Central Fund, 4.65% (b)(c)	292,108		292,108
TOTAL MONEY MARKET FUNDS (Cost $2,204,038)		2,204,038
TOTAL INVESTMENT PORTFOLIO - 101.1% (Cost $31,784,464)			34,534,743
NET OTHER ASSETS - (1.1)%			(373,500)
NET ASSETS - 100%		$ 34,161,243

Legend

(a) Non-income producing

(d) Security or a portion of the security is on loan at period end.

(e) 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 $76,970 or 0.2% of net assets.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 17,999
Fidelity Securities Lending Cash Central Fund	9,040
Total	$ 27,039

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	81.1%
Bermuda	10.8%
Cayman Islands	3.5%
Switzerland	1.9%
Germany	1.1%
Japan	1.0%
Others (individually less than 1%)	0.6%
	100.0%

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007
Assets
Investment in securities, at value (including securities loaned of $288,612) - See accompanying schedule: Unaffiliated issuers (cost $29,580,426)	$ 32,330,705
Fidelity Central Funds (cost $2,204,038)	2,204,038
Total Investments (cost $31,784,464)		$ 34,534,743
Receivable for fund shares sold		89,967
Dividends receivable		41,433
Distributions receivable from Fidelity Central Funds		8,464
Prepaid expenses		106
Other receivables		143
Total assets		34,674,856

Liabilities
Payable for investments purchased	$ 11,565
Payable for fund shares redeemed	152,583
Accrued management fee	15,563
Other affiliated payables	3,927
Other payables and accrued expenses	37,867
Collateral on securities loaned, at value	292,108
Total liabilities		513,613

Net Assets		$ 34,161,243
Net Assets consist of:
Paid in capital		$ 29,324,320
Distributions in excess of net investment income		(29,976)
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		2,116,615
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		2,750,284
Net Assets		$ 34,161,243

Statement of Assets and Liabilities - continued

	December 31, 2007
Initial Class: Net Asset Value, offering price and redemption price per share ($23,631,024 ÷ 2,042,462 shares)		$ 11.57

Investor Class: Net Asset Value, offering price and redemption price per share ($10,530,219 ÷ 912,268 shares)		$ 11.54

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

	Year ended December 31, 2007
Investment Income
Dividends		$ 1,000,297
Interest		19
Income from Fidelity Central Funds		27,039
Total income		1,027,355

Expenses
Management fee	$ 245,461
Transfer agent fees	49,500
Accounting and security lending fees	17,462
Custodian fees and expenses	20,619
Independent trustees' compensation	157
Audit	50,171
Legal	375
Miscellaneous	10,432
Total expenses before reductions	394,177
Expense reductions	(234)	393,943
Net investment income (loss)		633,412
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	2,286,521
Foreign currency transactions	1,198
Total net realized gain (loss)		2,287,719
Change in net unrealized appreciation (depreciation) on: Investment securities	(7,585,707)
Assets and liabilities in foreign currencies	10
Total change in net unrealized appreciation (depreciation)		(7,585,697)
Net gain (loss)		(5,297,978)
Net increase (decrease) in net assets resulting from operations		$ (4,664,566)

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 633,412	$ 540,076
Net realized gain (loss)	2,287,719	3,297,954
Change in net unrealized appreciation (depreciation)	(7,585,697)	2,439,074
Net increase (decrease) in net assets resulting from operations	(4,664,566)	6,277,104
Distributions to shareholders from net investment income	(1,168,511)	(428,612)
Distributions to shareholders from net realized gain	(3,386,321)	(703,305)
Total distributions	(4,554,832)	(1,131,917)
Share transactions - net increase (decrease)	(14,452,083)	17,738,147
Redemption fees	22,111	18,458
Total increase (decrease) in net assets	(23,649,370)	22,901,792

Net Assets
Beginning of period	57,810,613	34,908,821
End of period (including distributions in excess of net investment income of $29,976 and undistributed net investment income of $523,852, respectively)	$ 34,161,243	$ 57,810,613

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 14.60	$ 12.98	$ 12.19	$ 10.91	$ 8.44
Income from Investment Operations
Net investment income (loss) ^C	.20	.18	.16	.12	.10
Net realized and unrealized gain (loss)	(2.02)	1.86	.77	1.15	2.47
Total from investment operations	(1.82)	2.04	.93	1.27	2.57
Distributions from net investment income	(.36)	(.16)	(.14)	-	(.11)
Distributions from net realized gain	(.86)	(.27)	-	-	-
Total distributions	(1.22)	(.43)	(.14)	-	(.11)
Redemption fees added to paid in capital ^C	.01	.01	- ^G	.01	.01
Net asset value, end of period	$ 11.57	$ 14.60	$ 12.98	$ 12.19	$ 10.91
Total Return ^{A, B}	(13.43)%	16.29%	7.71%	11.73%	30.59%
Ratios to Average Net Assets ^{D, F}
Expenses before reductions	.87%	.86%	.86%	.85%	.97%
Expenses net of fee waivers, if any	.87%	.86%	.86%	.85%	.97%
Expenses net of all reductions	.87%	.85%	.85%	.83%	.96%
Net investment income (loss)	1.48%	1.36%	1.31%	1.10%	1.06%
Supplemental Data
Net assets, end of period (000 omitted)	$ 23,631	$ 44,781	$ 32,776	$ 41,595	$ 40,900
Portfolio turnover rate ^E	48%	68%	59%	98%	66%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^G Amount represents less than $.01 per share.

Financial Highlights - Investor Class

Years ended December 31,	2007	2006	2005 ^H
Selected Per-Share Data
Net asset value, beginning of period	$ 14.57	$ 12.98	$ 12.07
Income from Investment Operations
Net investment income (loss) ^E	.18	.16	.05
Net realized and unrealized gain (loss)	(2.02)	1.86	.86
Total from investment operations	(1.84)	2.02	.91
Distributions from net investment income	(.34)	(.17)	-
Distributions from net realized gain	(.86)	(.27)	-
Total distributions	(1.20)	(.44)	-
Redemption fees added to paid in capital ^E	.01	.01	- ^J
Net asset value, end of period	$ 11.54	$ 14.57	$ 12.98
Total Return ^{B, C, D}	(13.60)%	16.12%	7.54%
Ratios to Average Net Assets ^{F, I}
Expenses before reductions	.99%	1.00%	1.18% ^A
Expenses net of fee waivers, if any	.99%	1.00%	1.18% ^A
Expenses net of all reductions	.99%	.99%	1.16% ^A
Net investment income (loss)	1.36%	1.22%	.95% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 10,530	$ 13,030	$ 2,133
Portfolio turnover rate ^G	48%	68%	59%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005.

^J Amount represents less than $.01 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Financial Services Portfolio (the Fund) is a non-diversified fund of Variable Insurance Products Fund IV (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory and political uncertainties and can be extremely volatile.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions 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 may include proceeds received from litigation. 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 Fund is 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Book-tax differences are primarily due to foreign currency transactions, partnerships and losses deferred due to wash sales and excise tax regulations.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 5,915,864
Unrealized depreciation	(3,353,548)
Net unrealized appreciation (depreciation)	2,562,316
Undistributed ordinary income	628,630
Undistributed long-term capital gain	1,829,855

Cost for federal income tax purposes	$ 31,972,427

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 1,630,820	$ 454,660
Long-term Capital Gains	2,924,012	677,257
Total	$ 4,554,832	$ 1,131,917

Annual Report

4. Operating Policies.

Restricted Securities. The Fund 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 is included at the end of the Fund's Schedule of Investments.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $20,997,468 and $40,905,190, respectively.

6. Fees and Other Transactions with Affiliates.

Initial Class	$ 24,908
Investor Class	24,592
	$ 49,500

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $106 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Annual Report

Notes to Financial Statements - continued

8. Security Lending.

9. Expense Reductions.

10. Other.

At the end of the period, FMR or its affiliates were the owners of record of 100% of the total outstanding shares of the Fund.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ 852,438	$ 393,932
Investor Class	316,073	34,680
Total	$ 1,168,511	$ 428,612
From net realized gain
Initial Class	$ 2,557,827	$ 648,547
Investor Class	828,494	54,758
Total	$ 3,386,321	$ 703,305

Annual Report

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	684,091	1,476,307	$ 8,719,511	$ 20,458,429
Reinvestment of distributions	252,303	81,317	3,410,265	1,042,479
Shares redeemed	(1,960,660)	(1,015,687)	(26,730,674)	(13,691,216)
Net increase (decrease)	(1,024,266)	541,937	$ (14,600,898)	$ 7,809,692
Investor Class
Shares sold	558,928	822,641	$ 7,421,183	$ 11,174,887
Reinvestment of distributions	85,449	6,987	1,144,567	89,437
Shares redeemed	(626,618)	(99,504)	(8,416,935)	(1,335,869)
Net increase (decrease)	17,759	730,124	$ 148,815	$ 9,928,455

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Financial Services Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Financial Services Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Financial Services Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 19, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002- present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Financial Services. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Brian B. Hogan (43)
	Year of Election or Appointment: 2007 Vice President of VIP Financial Services. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager.
Eric D. Roiter (59)
	Year of Election or Appointment: 2001 Secretary of VIP Financial Services. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001- present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Financial Services. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Financial Services. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Financial Services. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Financial Services. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Financial Services. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Financial Services. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Financial Services. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Financial Services. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Financial Services. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Financial Services. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP Financial Services Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

	Pay Date	Record Date	Capital Gains
Initial Class	02/15/2008	02/15/2008	$0.740
Investor Class	02/15/2008	02/15/2008	$0.740

The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31 2007, $1,829,855 or, if subsequently determined to be different, the net capital gain of such year.

Initial Class designates 59%, 99% and 100%; Investor Class designates 60%, 99% and 100%; of the dividends distributed in February 2007, September 2007 and December 2007, respectively, as qualifying for the dividends-received deduction for corporate shareholders.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Financial Services Portfolio

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's portfolio managers and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Financial Services Portfolio

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

VIP Financial Services Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

The Board noted that the total expenses of each class ranked below its competitive median for 2006.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank
New York, NY

VFSIC-ANN-0208
1.817367.102

Fidelity® Variable Insurance Products:
Growth Stock Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

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 (search for "proxy voting results") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 to request a free copy of the proxy voting guidelines.

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Past 5 years	Life of fund ^A
VIP Growth Stock - Initial Class	22.67%	11.99%	11.13%
VIP Growth Stock - Service Class ^B	22.60%	11.89%	11.03%
VIP Growth Stock - Service Class 2 ^C	22.31%	11.71%	10.85%
VIP Growth Stock - Investor Class ^D	22.45%	11.92%	11.05%

^A From December 11, 2002

^BPerformance for Service Class shares reflects an asset-based service fee (12b-1 fee).

^CPerformance for Service Class 2 shares reflects an asset-based service fee (12b-1 fee).

^DThe initial offering of Investor Class shares took place on July 21, 2005. Returns prior to July 21, 2005 are those of Initial Class. If Investor Class's transfer agent fee had been reflected, returns prior to July 21, 2005 would have been lower.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Growth Stock Portfolio - Initial Class on December 11, 2002, when the fund started. 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.

Annual Report

Management's Discussion of Fund Performance

Comments from Jeffrey Feingold, Portfolio Manager of VIP Growth Stock Portfolio

For the year ending December 31, 2007, the fund nicely outpaced both the Russell 1000® Growth Index, which returned 11.81%, and the S&P 500® index. (For specific portfolio performance results, please refer to the performance section of this report.) Strong stock selection, along with positive sector allocation, drove the outperformance. Both large- and small-capitalization stocks added to returns, as did currency fluctuations from foreign holdings. The biggest gains came from the industrials sector - especially capital goods - as well as from materials and energy. Winners included Q-Cells in Germany and Norway's Renewable Energy, which both benefited from strong supply-chain execution and growing demand for their solar power products. ABB in Switzerland, which makes power transmission and distribution equipment, rallied as infrastructure spending increased. Within materials, Monsanto, which supplies seed for farmers, climbed as worldwide demand for food grew. On the downside were consumer discretionary stocks, such as JCPenney, a retailer hurt by the consumer spending slowdown. Elsewhere, Nastech Pharmaceutical, an out-of-index biotechnology company, fell after adding an extra clinical trial for a promising drug and proceeding with an ill-timed secondary share offering. I sold Nastech before period end.

Annual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including 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 the 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 (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 1,104.90	$ 4.51
Hypothetical^A	$ 1,000.00	$ 1,020.92	$ 4.33
Service Class
Actual	$ 1,000.00	$ 1,104.70	$ 5.04
Hypothetical^A	$ 1,000.00	$ 1,020.42	$ 4.84
Service Class 2
Actual	$ 1,000.00	$ 1,103.90	$ 5.83
Hypothetical^A	$ 1,000.00	$ 1,019.66	$ 5.60
Investor Class
Actual	$ 1,000.00	$ 1,104.50	$ 5.30**
Hypothetical^A	$ 1,000.00	$ 1,020.16	$ 5.09**

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.85%
Service Class	.95%
Service Class 2	1.10%
Investor Class	1.00%**

** If changes to transfer agent contracts and voluntary expense limitations, effective February 1, 2008 had been in effect during the entire period, the annualized expense ratio would have been .93% and the expenses paid in the actual and hypothetical examples above would have been $4.93 and $4.74, respectively.

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Google, Inc. Class A (sub. vtg.)	4.1	3.5
Monsanto Co.	3.6	2.2
Cisco Systems, Inc.	3.6	3.0
Apple, Inc.	3.2	3.2
Inverness Medical Innovations, Inc.	3.1	1.0
Research In Motion Ltd.	2.3	0.8
Hewlett-Packard Co.	2.2	0.0
Microsoft Corp.	1.8	0.0
Siemens AG sponsored ADR	1.7	1.1
Nintendo Co. Ltd.	1.7	0.7
	27.3
Top Five Market Sectors as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Information Technology	31.5	30.0
Health Care	16.0	15.5
Industrials	13.1	14.9
Consumer Discretionary	7.8	9.9
Consumer Staples	6.9	7.7

Asset Allocation (% of fund's net assets)
As of December 31, 2007 *			As of June 30, 2007 **
	Stocks 96.1%			Stocks 97.8%
	Short-Term Investments and Net Other Assets 3.9%			Short-Term Investments and Net Other Assets 2.2%
* Foreign investments		23.6%	** Foreign investments		15.8%

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 96.1%
	Shares		Value
CONSUMER DISCRETIONARY - 7.8%
Distributors - 0.1%
Li & Fung Ltd.	12,000		$ 48,480
Diversified Consumer Services - 0.4%
New Oriental Education & Technology Group, Inc. sponsored ADR (a)	1,600		128,944
Hotels, Restaurants & Leisure - 1.6%
McDonald's Corp.	8,200		483,062
Household Durables - 0.6%
Garmin Ltd.	2,000		194,000
Internet & Catalog Retail - 1.0%
Blue Nile, Inc. (a)	2,100		142,926
Priceline.com, Inc. (a)	1,400		160,804
			303,730
Multiline Retail - 1.2%
JCPenney Co., Inc.	1,200		52,788
Nordstrom, Inc.	500		18,365
Pantaloon Retail India Ltd.	1,091		27,674
Target Corp.	5,500		275,000
			373,827
Specialty Retail - 0.7%
The Men's Wearhouse, Inc.	200		5,396
TJX Companies, Inc.	6,900		198,237
			203,633
Textiles, Apparel & Luxury Goods - 2.2%
Coach, Inc. (a)	2,900		88,682
Crocs, Inc. (a)	3,800		139,878
G-III Apparel Group Ltd. (a)	11,300		166,901
Polo Ralph Lauren Corp. Class A	2,400		148,296
Titan Industries Ltd.	1,900		75,335
Under Armour, Inc. Class A (sub. vtg.) (a)(d)	1,000		43,670
			662,762
TOTAL CONSUMER DISCRETIONARY			2,398,438
CONSUMER STAPLES - 6.9%
Beverages - 2.6%
Molson Coors Brewing Co. Class B	8,600		443,932
PepsiCo, Inc.	3,900		296,010
United Spirits Ltd.	1,213		61,520
			801,462
Food & Staples Retailing - 0.7%
Costco Wholesale Corp.	3,300		230,208
Food Products - 0.6%
Nestle SA sponsored ADR	1,400		160,300
Smart Balance, Inc. (a)	1,200		13,116
			173,416
Household Products - 1.3%
Procter & Gamble Co.	5,300		389,126

	Shares		Value
Personal Products - 1.7%
Avon Products, Inc.	10,400		$ 411,112
Dabur India Ltd.	15,600		45,211
Marico Ltd.	32,800		57,185
			513,508
TOTAL CONSUMER STAPLES			2,107,720
ENERGY - 6.4%
Energy Equipment & Services - 2.3%
Expro International Group PLC	3,200		65,677
National Oilwell Varco, Inc. (a)	3,546		260,489
Schlumberger Ltd. (NY Shares)	3,900		383,643
			709,809
Oil, Gas & Consumable Fuels - 4.1%
CONSOL Energy, Inc.	2,300		164,496
EOG Resources, Inc.	1,900		169,575
Exxon Mobil Corp.	2,900		271,701
Nova Biosource Fuels, Inc. (a)(d)	36,400		105,560
Peabody Energy Corp.	2,500		154,100
Suncor Energy, Inc.	900		97,749
Ultra Petroleum Corp. (a)	1,300		92,950
Valero Energy Corp.	2,800		196,084
			1,252,215
TOTAL ENERGY			1,962,024
FINANCIALS - 4.4%
Capital Markets - 2.6%
Goldman Sachs Group, Inc.	800		172,040
Janus Capital Group, Inc.	4,700		154,395
Lehman Brothers Holdings, Inc.	7,200		471,168
			797,603
Diversified Financial Services - 1.8%
Bolsa de Mercadorias & Futuros - BM&F SA	6,800		94,551
Bovespa Holding SA	4,800		89,906
CME Group, Inc.	400		274,400
JSE Ltd.	7,100		90,032
			548,889
TOTAL FINANCIALS			1,346,492
HEALTH CARE - 16.0%
Biotechnology - 4.2%
Alexion Pharmaceuticals, Inc. (a)	1,100		82,533
Alkermes, Inc. (a)	600		9,354
Alnylam Pharmaceuticals, Inc. (a)	4,300		125,044
Amylin Pharmaceuticals, Inc. (a)	4,400		162,800
Celgene Corp. (a)	3,100		143,251
Cougar Biotechnology, Inc. (a)	1,400		45,780
CSL Ltd.	14,640		466,251
Common Stocks - continued
	Shares		Value
HEALTH CARE - continued
Biotechnology - continued
Gilead Sciences, Inc. (a)	4,600		$ 211,646
Theravance, Inc. (a)	1,300		25,350
			1,272,009
Health Care Equipment & Supplies - 6.3%
Becton, Dickinson & Co.	2,500		208,950
C.R. Bard, Inc.	2,000		189,600
Integra LifeSciences Holdings Corp. (a)	2,500		104,825
Inverness Medical Innovations, Inc. (a)	16,825		945,229
Meridian Bioscience, Inc.	2,300		69,184
St. Jude Medical, Inc. (a)	8,800		357,632
Zoll Medical Corp. (a)	2,400		64,128
			1,939,548
Health Care Providers & Services - 0.5%
athenahealth, Inc.	100		3,600
Express Scripts, Inc. (a)	2,300		167,900
			171,500
Health Care Technology - 2.0%
Cerner Corp. (a)	5,188		292,603
Eclipsys Corp. (a)	12,300		311,313
			603,916
Life Sciences Tools & Services - 1.3%
Affymetrix, Inc. (a)	1,400		32,396
Illumina, Inc. (a)	1,800		106,668
QIAGEN NV (a)	11,800		248,390
			387,454
Pharmaceuticals - 1.7%
Allergan, Inc.	3,600		231,264
Merck & Co., Inc.	4,900		284,739
			516,003
TOTAL HEALTH CARE			4,890,430
INDUSTRIALS - 13.1%
Aerospace & Defense - 2.2%
General Dynamics Corp.	3,600		320,364
Raytheon Co.	5,900		358,130
			678,494
Commercial Services & Supplies - 0.6%
Fuel Tech, Inc. (a)	7,525		170,441
Construction & Engineering - 0.8%
Fluor Corp.	1,000		145,720
Larsen & Toubro Ltd.	991		104,806
			250,526
Electrical Equipment - 7.0%
ABB Ltd. sponsored ADR	16,200		466,560
Alstom SA	2,000		429,064
American Superconductor Corp. (a)(d)	12,700		347,218
Bharat Heavy Electricals Ltd.	1,288		84,649

	Shares		Value
Crompton Greaves Ltd.	5,200		$ 51,914
FuelCell Energy, Inc. (a)(d)	5,700		56,544
Q-Cells AG (a)(d)	2,200		313,362
Renewable Energy Corp. AS (a)	6,050		307,259
Satcon Technology Corp. (a)	31,300		51,645
Suzlon Energy Ltd.	300		14,745
			2,122,960
Industrial Conglomerates - 2.2%
Murray & Roberts Holdings Ltd.	9,500		141,235
Siemens AG sponsored ADR	3,400		535,024
			676,259
Machinery - 0.3%
Hansen Transmission International NV	17,200		98,421
TOTAL INDUSTRIALS			3,997,101
INFORMATION TECHNOLOGY - 31.5%
Communications Equipment - 8.3%
Cisco Systems, Inc. (a)	40,300		1,090,921
Corning, Inc.	50		1,200
Infinera Corp.	3,000		44,520
Juniper Networks, Inc. (a)	14,800		491,360
Polycom, Inc. (a)	7,700		213,906
Research In Motion Ltd. (a)	6,205		703,647
			2,545,554
Computers & Peripherals - 6.2%
Apple, Inc. (a)	4,900		970,592
Hewlett-Packard Co.	13,450		678,956
Network Appliance, Inc. (a)	4,200		104,832
Western Digital Corp. (a)	4,500		135,945
			1,890,325
Electronic Equipment & Instruments - 0.7%
Agilent Technologies, Inc. (a)	4,900		180,026
Hon Hai Precision Industry Co. Ltd. (Foxconn)	5,000		31,144
			211,170
Internet Software & Services - 6.2%
Alibaba.com Ltd.	3,000		10,639
Equinix, Inc. (a)	3,100		313,317
Google, Inc. Class A (sub. vtg.) (a)	1,820		1,258,491
Omniture, Inc. (a)	4,300		143,147
ValueClick, Inc. (a)	6,500		142,350
Visual Sciences, Inc. (a)	1,500		27,720
			1,895,664
IT Services - 2.3%
Cognizant Technology Solutions Corp. Class A (a)	13,260		450,044
CyberSource Corp. (a)	1,900		33,763
Genpact Ltd.	9,600		146,208
Syntel, Inc.	1,800		69,336
			699,351
Common Stocks - continued
	Shares		Value
INFORMATION TECHNOLOGY - continued
Semiconductors & Semiconductor Equipment - 1.7%
Applied Materials, Inc.	8,200		$ 145,632
Intel Corp.	12,500		333,250
Richtek Technology Corp.	4,000		36,139
			515,021
Software - 6.1%
Adobe Systems, Inc. (a)	5,700		243,561
BladeLogic, Inc.	500		14,785
Gameloft (a)	1,900		16,637
GSE Systems, Inc. (a)	6,700		68,608
Microsoft Corp.	15,300		544,680
Nintendo Co. Ltd.	900		533,160
Nuance Communications, Inc. (a)	3,400		63,512
Oracle Corp. (a)	1,950		44,031
Salesforce.com, Inc. (a)	900		56,421
VMware, Inc. Class A (d)	3,225		274,093
			1,859,488
TOTAL INFORMATION TECHNOLOGY			9,616,573
MATERIALS - 5.9%
Chemicals - 5.4%
Calgon Carbon Corp. (a)(d)	7,200		114,408
Monsanto Co.	9,800		1,094,562
Potash Corp. of Saskatchewan, Inc.	2,100		302,316
The Mosaic Co. (a)	1,600		150,944
			1,662,230
Metals & Mining - 0.5%
Gold Fields Ltd. sponsored ADR	800		11,360
Goldcorp, Inc.	500		17,010
Kinross Gold Corp. (a)	800		14,735
Lihir Gold Ltd. (a)	4,600		14,545
Titanium Metals Corp.	2,500		66,125
Yamana Gold, Inc.	1,100		14,271
			138,046
TOTAL MATERIALS			1,800,276
TELECOMMUNICATION SERVICES - 2.5%
Wireless Telecommunication Services - 2.5%
America Movil SAB de CV Series L sponsored ADR	3,800		233,282

	Shares		Value
American Tower Corp. Class A (a)	12,000		$ 511,200
Bharti Airtel Ltd. (a)	1,257		31,785
			776,267
UTILITIES - 1.6%
Electric Utilities - 0.5%
Electricite de France	800		95,130
Public Power Corp. of Greece	1,100		57,792
			152,922
Independent Power Producers & Energy Traders - 1.1%
AES Corp. (a)	15,300		327,267
TOTAL UTILITIES			480,189
TOTAL COMMON STOCKS (Cost $25,605,901)		29,375,510
Money Market Funds - 8.1%

Fidelity Cash Central Fund, 4.58% (b)	1,399,994		1,399,994
Fidelity Securities Lending Cash Central Fund, 4.65% (b)(c)	1,059,900		1,059,900
TOTAL MONEY MARKET FUNDS (Cost $2,459,894)		2,459,894
TOTAL INVESTMENT PORTFOLIO - 104.2% (Cost $28,065,795)			31,835,404
NET OTHER ASSETS - (4.2)%			(1,281,079)
NET ASSETS - 100%		$ 30,554,325

Legend

(a) Non-income producing

(d) Security or a portion of the security is on loan at period end.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 27,246
Fidelity Securities Lending Cash Central Fund	18,056
Total	$ 45,302

Other Information

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	76.4%
Canada	4.1%
Germany	2.7%
Switzerland	2.0%
India	2.0%
France	1.8%
Japan	1.7%
Australia	1.5%
Netherlands Antilles	1.3%
Cayman Islands	1.0%
Norway	1.0%
Others (individually less than 1%)	4.5%
	100.0%

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007
Assets
Investment in securities, at value (including securities loaned of $1,007,113) - See accompanying schedule: Unaffiliated issuers (cost $25,605,901)	$ 29,375,510
Fidelity Central Funds (cost $2,459,894)	2,459,894
Total Investments (cost $28,065,795)		$ 31,835,404
Foreign currency held at value (cost $1,079)		1,096
Receivable for investments sold		142,092
Receivable for fund shares sold		30
Dividends receivable		6,541
Distributions receivable from Fidelity Central Funds		9,664
Prepaid expenses		73
Receivable from investment adviser for expense reductions		4,571
Other receivables		378
Total assets		31,999,849

Liabilities
Payable to custodian bank	$ 8,308
Payable for investments purchased	236,764
Payable for fund shares redeemed	64,332
Accrued management fee	13,856
Distribution fees payable	1,260
Other affiliated payables	3,466
Other payables and accrued expenses	57,638
Collateral on securities loaned, at value	1,059,900
Total liabilities		1,445,524

Net Assets		$ 30,554,325
Net Assets consist of:
Paid in capital		$ 26,908,466
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(116,677)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		3,762,536
Net Assets		$ 30,554,325

Statement of Assets and Liabilities - continued

	December 31, 2007

Initial Class: Net Asset Value, offering price and redemption price per share ($13,751,972 ÷ 971,763 shares)		$ 14.15

Service Class: Net Asset Value, offering price and redemption price per share ($2,545,180 ÷ 180,823 shares)		$ 14.08

Service Class 2: Net Asset Value, offering price and redemption price per share ($5,115,656 ÷ 366,452 shares)		$ 13.96

Investor Class: Net Asset Value, offering price and redemption price per share ($9,141,517 ÷ 648,274 shares)		$ 14.10

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Operations

	Year ended December 31, 2007
Investment Income
Dividends		$ 115,681
Interest		280
Income from Fidelity Central Funds (including $18,056 from security lending)		45,302
Total income		161,263

Expenses
Management fee	$ 106,536
Transfer agent fees	25,671
Distribution fees	12,375
Accounting and security lending fees	7,567
Custodian fees and expenses	17,441
Independent trustees' compensation	63
Audit	51,287
Legal	318
Miscellaneous	7,573
Total expenses before reductions	228,831
Expense reductions	(48,148)	180,683
Net investment income (loss)		(19,420)
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers (net of foreign taxes of $123)	1,504,103
Foreign currency transactions	(953)
Total net realized gain (loss)		1,503,150
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $6,736)	2,205,825
Assets and liabilities in foreign currencies	(337)
Total change in net unrealized appreciation (depreciation)		2,205,488
Net gain (loss)		3,708,638
Net increase (decrease) in net assets resulting from operations		$ 3,689,218

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ (19,420)	$ (7,763)
Net realized gain (loss)	1,503,150	(5,272)
Change in net unrealized appreciation (depreciation)	2,205,488	(328,011)
Net increase (decrease) in net assets resulting from operations	3,689,218	(341,046)
Distributions to shareholders from net investment income	-	(7,983)
Distributions to shareholders from net realized gain	(1,360,022)	-
Total distributions	(1,360,022)	(7,983)
Share transactions - net increase (decrease)	11,664,213	(12,833,989)
Total increase (decrease) in net assets	13,993,409	(13,183,018)

Net Assets
Beginning of period	16,560,916	29,743,934
End of period	$ 30,554,325	$ 16,560,916

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 12.07	$ 11.94	$ 11.14	$ 11.79	$ 9.68
Income from Investment Operations
Net investment income (loss)^C	-^I	-^I	.01	.04^F	(.01)
Net realized and unrealized gain (loss)	2.74	.13^G	.83	.23	2.81
Total from investment operations	2.74	.13	.84	.27	2.80
Distributions from net investment income	-	-^I	(.01)	(.02)	(.01)
Distributions from net realized gain	(.66)	-	(.04)	(.90)	(.68)
Total distributions	(.66)	-	(.04)^J	(.92)	(.69)
Net asset value, end of period	$ 14.15	$ 12.07	$ 11.94	$ 11.14	$ 11.79
Total Return^A,B	22.67%	1.12%	7.57%	2.31%	29.05%
Ratios to Average Net Assets^D,H
Expenses before reductions	1.10%	.98%	1.01%	1.94%	2.68%
Expenses net of fee waivers, if any	.85%	.86%	.85%	1.00%	1.14%
Expenses net of all reductions	.84%	.86%	.81%	.95%	1.09%
Net investment income (loss)	-% ^K	.03%	.12%	.35%	(.07)%
Supplemental Data
Net assets, end of period (000 omitted)	$ 13,752	$ 7,414	$ 22,750	$ 1,938	$ 1,885
Portfolio turnover rate^E	167%	93%	91%	151%	149%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^B Total returns would have been lower had certain expenses not been reduced during the periods shown. ^C Calculated based on average shares outstanding during the period. ^D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^F Investment income per share reflects a special dividend which amounted to $.05 per share. ^G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. ^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^I Amount represents less than $.01 per share. ^J Total distributions of $.040 per share is comprised of distributions from net investment income of $.005 and distributions from net realized gain of $.035 per share. ^K Amount represents less than .01%.

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 12.02	$ 11.90	$ 11.12	$ 11.77	$ 9.68
Income from Investment Operations
Net investment income (loss)^C	(.01)	(.01)	- ^J	.03^F	(.02)
Net realized and unrealized gain (loss)	2.73	.13^G	.82	.24	2.80
Total from investment operations	2.72	.12	.82	.27	2.78
Distributions from net investment income	-	-	(.01)	(.02)	(.01)
Distributions from net realized gain	(.66)	-	(.04)	(.90)	(.68)
Total distributions	(.66)	-	(.04)^I	(.92)	(.69)
Net asset value, end of period	$ 14.08	$ 12.02	$ 11.90	$ 11.12	$ 11.77
Total Return^A,B	22.60%	1.01%	7.41%	2.32%	28.85%
Ratios to Average Net Assets^D,H
Expenses before reductions	1.17%	1.16%	1.36%	1.97%	2.74%
Expenses net of fee waivers, if any	.95%	.96%	.97%	1.10%	1.24%
Expenses net of all reductions	.95%	.95%	.92%	1.05%	1.19%
Net investment income (loss)	(.10)%	(.07)%	-%^K	.25%	(.17)%
Supplemental Data
Net assets, end of period (000 omitted)	$ 2,545	$ 2,077	$ 2,056	$ 1,914	$ 1,871
Portfolio turnover rate^E	167%	93%	91%	151%	149%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^B Total returns would have been lower had certain expenses not been reduced during the periods shown. ^C Calculated based on average shares outstanding during the period. ^D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^F Investment income per share reflects a special dividend which amounted to $.05 per share. ^G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. ^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^I Total distributions of $.040 per share is comprised of distributions from net investment income of $.005 and distributions from net realized gain of $.035 per share. ^J Amount represents less than $.01 per share. ^K Amount represents less than .01%.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 11.95	$ 11.84	$ 11.08	$ 11.75	$ 9.68
Income from Investment Operations
Net investment income (loss)^C	(.03)	(.03)	(.02)	.01^F	(.04)
Net realized and unrealized gain (loss)	2.70	.14^G	.82	.24	2.80
Total from investment operations	2.67	.11	.80	.25	2.76
Distributions from net investment income	-	-	(.01)	(.02)	(.01)
Distributions from net realized gain	(.66)	-	(.04)	(.90)	(.68)
Total distributions	(.66)	-	(.04)^I	(.92)	(.69)
Net asset value, end of period	$ 13.96	$ 11.95	$ 11.84	$ 11.08	$ 11.75
Total Return^A,B	22.31%	.93%	7.25%	2.14%	28.64%
Ratios to Average Net Assets^D,H
Expenses before reductions	1.38%	1.35%	1.51%	2.12%	2.89%
Expenses net of fee waivers, if any	1.10%	1.11%	1.12%	1.25%	1.39%
Expenses net of all reductions	1.09%	1.10%	1.07%	1.20%	1.34%
Net investment income (loss)	(.25)%	(.22)%	(.15)%	.10%	(.33)%
Supplemental Data
Net assets, end of period (000 omitted)	$ 5,116	$ 3,220	$ 2,729	$ 2,544	$ 2,491
Portfolio turnover rate^E	167%	93%	91%	151%	149%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^B Total returns would have been lower had certain expenses not been reduced during the periods shown. ^C Calculated based on average shares outstanding during the period. ^D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^F Investment income per share reflects a special dividend which amounted to $.05 per share. ^G The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. ^H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^I Total distributions of $.040 per share is comprised of distributions from net investment income of $.005 and distributions from net realized gain of $.035 per share.

Financial Highlights - Investor Class

Years ended December 31,	2007	2006	2005^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.05	$ 11.94	$ 11.64
Income from Investment Operations
Net investment income (loss)^E	(.02)	(.01)	-^K
Net realized and unrealized gain (loss)	2.73	.12^H	.30
Total from investment operations	2.71	.11	.30
Distributions from net investment income	-	-^K	-
Distributions from net realized gain	(.66)	-	-
Total distributions	(.66)	-	-
Net asset value, end of period	$ 14.10	$ 12.05	$ 11.94
Total Return^B,C,D	22.45%	.95%	2.58%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.22%	1.21%	1.16%^A
Expenses net of fee waivers, if any	1.00%	1.01%	1.00%^A
Expenses net of all reductions	.99%	1.01%	.96%^A
Net investment income (loss)	(.15)%	(.12)%	(.03)%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 9,142	$ 3,849	$ 2,209
Portfolio turnover rate^G	167%	93%	91%

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H The amount shown for a share outstanding does not correspond with the aggregate net gain (loss) on investments for the period due to the timing of sales and repurchases of shares in relation to fluctuating market values of the investments of the Fund. ^I For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Growth Stock Portfolio (the Fund) is a fund of Variable Insurance Products Fund IV (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions 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 may include proceeds received from litigation. 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 Fund is 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48) on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Book-tax differences are primarily due to foreign currency transactions, partnerships, passive foreign investment companies (PFIC), capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 4,587,169
Unrealized depreciation	(863,416)
Net unrealized appreciation (depreciation)	3,723,753

Cost for federal income tax purposes	$ 28,111,651

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ -	$ 7,983
Long-term Capital Gains	1,360,022	-
Total	$ 1,360,022	$ 7,983

4. Operating Policies.

Annual Report

4. Operating Policies - continued

Repurchase Agreements - continued

repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $40,837,353 and $31,594,728, respectively.

6. Fees and Other Transactions with Affiliates.

Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class' average net assets and .25% of Service Class 2's average net assets.

For the period, each class paid FDC the following amounts, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services:

Service Class	$ 2,312
Service Class 2	10,063
	$ 12,375

Initial Class	$ 8,162
Service Class	1,526
Service Class 2	4,913
Investor Class	11,070
	$ 25,671

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

7. Committed Line of Credit.

Annual Report

Notes to Financial Statements - continued

8. Security Lending.

9. Expense Reductions.

The following classes were in reimbursement during the period:

	Expense Limitations	Reimbursement from adviser
Initial Class	.85%	$ 19,829
Service Class	.95%	5,168
Service Class 2	1.10%	11,287
Investor Class	1.00%	11,035
		$ 47,319

Effective February 1, 2008, the expense limitation changed to .93% for Investor Class.

10. Other.

At the end of the period, FMR or its affiliates were the owners of record of 94% of the total outstanding shares of the Fund.

Annual Report

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ -	$ 7,399
Investor Class	-	584
Total	$ -	$ 7,983
From net realized gain
Initial Class	$ 611,437	$ -
Service Class	114,028	-
Service Class 2	230,890	-
Investor Class	403,667	-
Total	$ 1,360,022	$ -

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	548,074	205,736	$ 7,846,894	$ 2,451,301
Reinvestment of distributions	42,938	611	611,437	7,399
Shares redeemed	(233,361)	(1,497,074)	(2,969,140)	(17,419,330)
Net increase (decrease)	357,651	(1,290,727)	$ 5,489,191	$ (14,960,630)
Service Class
Reinvestment of distributions	8,053	-	114,028	-
Net increase (decrease)	8,053	-	$ 114,028	$ -
Service Class 2
Shares sold	111,476	43,637	$ 1,498,608	$ 488,801
Reinvestment of distributions	16,445	-	230,890	-
Shares redeemed	(30,981)	(4,553)	(410,132)	(51,413)
Net increase (decrease)	96,940	39,084	$ 1,319,366	$ 437,388
Investor Class
Shares sold	557,173	498,339	$ 7,720,308	$ 5,920,324
Reinvestment of distributions	28,447	48	403,667	584
Shares redeemed	(256,772)	(364,011)	(3,382,347)	(4,231,655)
Net increase (decrease)	328,848	134,376	$ 4,741,628	$ 1,689,253

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Growth Stock Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Growth Stock Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Growth Stock Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 15, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006- present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000- 2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987- 1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002- present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002- present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006- present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Growth Stock. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007- present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Walter C. Donovan (45)
	Year of Election or Appointment: 2007 Vice President of VIP Growth Stock. Mr. Donovan also serves as Vice President of Fidelity's Equity Funds (2007-present). Mr. Donovan also serves as Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present). Previously, Mr. Donovan served as Vice President of Fidelity's High Income Funds (2005-2007), Fixed-Income Funds (2005-2006), certain Asset Allocation Funds (2005-2006), certain Balanced Funds (2005-2006), and as Vice President and Director of Fidelity's International Equity Trading group (1998-2005).
Bruce T. Herring (42)
	Year of Election or Appointment: 2006 Vice President of VIP Growth Stock. Mr. Herring also serves as Vice President of certain Equity Funds (2006-present). Mr. Herring is Senior Vice President of FMR (2006-present) and Vice President of FMR Co., Inc. (2001-present). Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds (2001-2005).
Eric D. Roiter (59)
	Year of Election or Appointment: 2002 Secretary of VIP Growth Stock. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Growth Stock. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Growth Stock. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Growth Stock. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Growth Stock. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Growth Stock. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Growth Stock. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Growth Stock. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Growth Stock. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Growth Stock. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005- 2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Growth Stock. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2007, $1,340,822 or, if subsequently determined to be different, the net capital gain of such year.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Growth Stock Portfolio

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

Investment Performance and Compliance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a peer group of mutual funds deemed appropriate by the Board over multiple periods. Because the fund had been in existence less than five calendar years, the following charts considered by the Board show, over the one- and three-year periods ended December 31, 2006, the cumulative total returns of Initial Class and Service Class 2 of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds identified by Morningstar, Inc. as having an investment style similar to that of the fund based on underlying portfolio holdings. The returns of Initial Class and Service Class 2 show the performance of the highest and lowest performing classes, respectively (based on three-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.

VIP Growth Stock Portfolio

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Initial Class of the fund was in the fourth quartile for all the periods shown. The Board also stated that the investment performance of Initial Class of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board discussed with FMR actions to be taken by FMR to improve the fund's disappointing performance relative to its peer group. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with FMR other appropriate actions to address the performance of the fund.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 9% means that 91% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

VIP Growth Stock Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of Initial Class ranked below its competitive median for 2006, the total expenses of Service Class ranked equal to its competitive median for 2006, and the total expenses of each of Investor Class and Service Class 2 ranked above its competitive median for 2006. The Board considered that the total expenses of Investor Class were above the median primarily due to its higher transfer agent fee. The Board noted that the fund offers multiple classes, each of which has a different 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in some cases above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

Mellon Bank, N.A.
Pittsburgh, PA

VIPGR-ANN-0208
1.781993.105

Fidelity® Variable Insurance Products:
Health Care Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

The fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. The fund's Forms N-Q 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 the 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Past 5 years	Life of fund ^A
VIP Health Care - Initial Class	10.21%	11.67%	6.15%
VIP Health Care - Investor Class^B	10.01%	11.59%	6.09%

^A From July 18, 2001.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Health Care Portfolio - Initial Class on July 18, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Matthew Sabel, Portfolio Manager of VIP Health Care Portfolio

For the year that ended December 31, 2007, the fund solidly outperformed the 7.99% return of the Morgan Stanley Capital International^SM (MSCI®) US Investable Market Health Care Index and the S&P 500. (For specific portfolio performance results, please refer to the performance section of this report.) Strong stock selection in pharmaceuticals, health care supplies and health care distributors contributed to the fund's outperformance of the MSCI index. Overweighting life science tools and services also proved helpful. Further, currency fluctuations buoyed the returns of many of the fund's overseas holdings. Less-successful stock selection in health care services and health care facilities dampened returns. Significantly underweighting pharmaceutical firm Pfizer - not held at period end - was the top contributor. Underweighting health care equipment firms Medtronic and Boston Scientific also helped, as did overweightings in home diagnostic test manufacturer Inverness Medical Innovations, health care technology provider Cerner and health care equipment manufacturer Biosite, the latter of which was acquired by a competitor during the period. An out-of-benchmark position in chemical company Bayer contributed as well. Detractors included untimely ownership of two stocks - disease management company Healthways and pharmacy benefit manager Medco Health Solutions - as well as an investment in health care facilities firm Brookdale Senior Living and a holding since sold in pharmaceutical company Inyx, both of which declined. Underweighting pharmaceutical mega-cap and key index component Johnson & Johnson, which performed well late in the year, also hurt results.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 1,047.00	$ 4.44
Hypothetical^A	$ 1,000.00	$ 1,020.87	$ 4.38
Investor Class
Actual	$ 1,000.00	$ 1,046.20	$ 5.05
Hypothetical^A	$ 1,000.00	$ 1,020.27	$ 4.99

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.86%
Investor Class	.98%

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets
Merck & Co., Inc.	6.7	7.1
UnitedHealth Group, Inc.	4.7	4.1
Abbott Laboratories	3.4	0.2
Wyeth	3.3	2.3
Baxter International, Inc.	2.9	0.9
Bristol-Myers Squibb Co.	2.6	3.4
Becton, Dickinson & Co.	2.6	2.9
Gilead Sciences, Inc.	2.5	1.9
Allergan, Inc.	2.4	2.3
McKesson Corp.	2.1	1.8
	33.2

Top Industries (% of fund's net assets)
As of December 31, 2007
	Pharmaceuticals	25.7%
	Health Care Providers & Services	20.5%
	Health Care Equipment & Supplies	19.3%
	Biotechnology	13.9%
	Life Sciences Tools & Services	8.8%
	All Others*	11.8%


As of June 30, 2007
	Pharmaceuticals	34.7%
	Health Care Providers & Services	21.3%
	Health Care Equipment & Supplies	14.5%
	Biotechnology	12.3%
	Life Sciences Tools & Services	7.1%
	All Others*	10.1%

* Includes short-term investments and net other assets.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 95.0%
	Shares		Value
BIOTECHNOLOGY - 13.9%
Biotechnology - 13.9%
3SBio, Inc. sponsored ADR	4,098		$ 60,978
Alexion Pharmaceuticals, Inc. (a)(d)	2,100		157,563
Alnylam Pharmaceuticals, Inc. (a)(d)	16,400		476,912
Amgen, Inc. (a)	30,325		1,408,293
Amylin Pharmaceuticals, Inc. (a)	5,400		199,800
Arena Pharmaceuticals, Inc. (a)	4,200		32,886
Biogen Idec, Inc. (a)	21,895		1,246,263
BioMarin Pharmaceutical, Inc. (a)	9,500		336,300
Celgene Corp. (a)	12,009		554,936
Cephalon, Inc. (a)	2,500		179,400
Cougar Biotechnology, Inc. (a)	1,506		47,265
CSL Ltd.	11,970		381,217
CytRx Corp. (a)	19,500		55,380
deCODE genetics, Inc. (a)(d)	28,204		103,791
Genentech, Inc. (a)	16,714		1,121,008
Genmab AS (a)	600		36,286
Genzyme Corp. (a)	10,200		759,288
Gilead Sciences, Inc. (a)	45,600		2,098,056
Grifols SA	2,792		62,790
GTx, Inc. (a)(d)	19,300		276,955
Human Genome Sciences, Inc. (a)	5,900		61,596
Idera Pharmaceuticals, Inc. (a)(d)	1,100		14,410
ImClone Systems, Inc. (a)	6,300		270,900
Indevus Pharmaceuticals, Inc. (a)	6,900		47,955
Isis Pharmaceuticals, Inc. (a)	15,214		239,621
MannKind Corp. (a)	3,610		28,736
Millennium Pharmaceuticals, Inc. (a)(d)	13,400		200,732
Molecular Insight Pharmaceuticals, Inc.	8,300		75,198
Myriad Genetics, Inc. (a)	1,700		78,914
Omrix Biopharmaceuticals, Inc. (a)	1,100		38,214
ONYX Pharmaceuticals, Inc. (a)	1,600		88,992
Orchid Cellmark, Inc. (a)	5,483		27,415
OREXIGEN Therapeutics, Inc.	1,800		25,650
OSI Pharmaceuticals, Inc. (a)	2,335		113,271
PDL BioPharma, Inc. (a)	5,143		90,105
Pharmion Corp. (a)	100		6,286
Progenics Pharmaceuticals, Inc. (a)	4,801		86,754
Theravance, Inc. (a)	5,400		105,300
United Therapeutics Corp. (a)	400		39,060
Vanda Pharmaceuticals, Inc. (a)	1,232		8,476
Vertex Pharmaceuticals, Inc. (a)	8,800		204,424
Zymogenetics, Inc. (a)	2,100		24,507
			11,471,883
CHEMICALS - 1.5%
Diversified Chemicals - 0.9%
Bayer AG	1,100		100,100
Bayer AG sponsored ADR	7,091		645,281
			745,381

	Shares		Value
Fertilizers & Agricultural Chemicals - 0.6%
Monsanto Co.	1,200		$ 134,028
Potash Corp. of Saskatchewan, Inc.	800		115,168
The Mosaic Co. (a)	2,900		273,586
			522,782
TOTAL CHEMICALS			1,268,163
DIVERSIFIED CONSUMER SERVICES - 0.4%
Specialized Consumer Services - 0.4%
Carriage Services, Inc. Class A (a)	30,000		264,000
Service Corp. International	7,000		98,350
			362,350
FOOD & STAPLES RETAILING - 0.6%
Drug Retail - 0.6%
A&D Pharma Holdings NV (Reg. S) unit	1,600		36,193
China Nepstar Chain Drugstore Ltd. ADR	2,100		36,918
CVS Caremark Corp.	10,942		434,945
			508,056
FOOD PRODUCTS - 0.6%
Agricultural Products - 0.6%
Bunge Ltd.	4,000		465,640
HEALTH CARE EQUIPMENT & SUPPLIES - 19.3%
Health Care Equipment - 16.3%
American Medical Systems Holdings, Inc. (a)(d)	10,300		148,938
Aspect Medical Systems, Inc. (a)(d)	27,400		383,600
Baxter International, Inc.	40,620		2,357,991
Beckman Coulter, Inc.	1,500		109,200
Becton, Dickinson & Co.	25,500		2,131,290
Boston Scientific Corp. (a)	29,500		343,085
C.R. Bard, Inc.	12,000		1,137,600
Covidien Ltd.	23,101		1,023,143
Electro-Optical Sciences, Inc. (a)	28,520		128,625
Electro-Optical Sciences, Inc.:
warrants 11/2/11 (a)(e)	7,563		12,338
warrants 8/2/12 (a)(e)	1,900		3,120
Gen-Probe, Inc. (a)	7,500		471,975
Golden Meditech Co. Ltd.	616,000		274,933
Gyrus Group PLC (a)	8,500		104,707
Hillenbrand Industries, Inc.	2,200		122,606
I-Flow Corp. (a)(d)	20,305		320,413
Integra LifeSciences Holdings Corp. (a)	9,900		415,107
Intuitive Surgical, Inc. (a)	500		162,250
Invacare Corp.	300		7,560
Kinetic Concepts, Inc. (a)	300		16,068
Medtronic, Inc.	11,900		598,213
Mentor Corp.	1,300		50,830
Meridian Bioscience, Inc.	2,000		60,160
Mindray Medical International Ltd. sponsored ADR	3,629		155,938
Common Stocks - continued
	Shares		Value
HEALTH CARE EQUIPMENT & SUPPLIES - CONTINUED
Health Care Equipment - continued
NeuroMetrix, Inc. (a)(d)	7,900		$ 72,680
Northstar Neuroscience, Inc. (a)	21,600		200,880
Orthofix International NV (a)	900		52,173
Quidel Corp. (a)	2,300		44,781
Respironics, Inc. (a)	2,700		176,796
Sirona Dental Systems, Inc. (a)	1,048		35,087
Smith & Nephew PLC	28,700		329,591
Smith & Nephew PLC sponsored ADR	5,500		315,810
St. Jude Medical, Inc. (a)	16,800		682,752
Stryker Corp.	10,100		754,672
Symmetry Medical, Inc. (a)	4,800		83,664
The Spectranetics Corp. (a)	7,091		108,705
ThermoGenesis Corp. (a)	14,749		23,303
			13,420,584
Health Care Supplies - 3.0%
Alcon, Inc.	3,109		444,711
Cooper Companies, Inc.	2,057		78,166
Haemonetics Corp. (a)	700		44,114
Immucor, Inc. (a)	4,394		149,352
Inverness Medical Innovations, Inc. (a)	26,253		1,474,894
Omega Pharma SA	1,600		111,381
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares)	84,000		193,918
TranS1, Inc.	400		6,588
			2,503,124
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES			15,923,708
HEALTH CARE PROVIDERS & SERVICES - 20.5%
Health Care Distributors & Services - 3.8%
Celesio AG	100		6,202
Henry Schein, Inc. (a)	8,100		497,340
McKesson Corp.	26,400		1,729,464
Patterson Companies, Inc. (a)	2,900		98,455
Profarma Distribuidora de Produtos Farmaceuticos SA (a)	36,000		768,539
United Drug PLC (Ireland)	7,500		43,235
			3,143,235
Health Care Facilities - 2.3%
Acibadem Saglik Hizmetleri AS	38,888		276,404
Apollo Hospitals Enterprise Ltd.	14,645		195,397
Bangkok Dusit Medical Service PCL (For. Reg.)	2,700		2,683
Brookdale Senior Living, Inc.	7,263		206,342
Bumrungrad Hospital PCL (For. Reg.)	50,100		60,182
Emeritus Corp. (a)	16,069		404,135
LifePoint Hospitals, Inc. (a)	5,164		153,577
Raffles Medical Group Ltd.	7,000		7,333

	Shares		Value
Sun Healthcare Group, Inc. (a)	18,418		$ 316,237
Universal Health Services, Inc. Class B	1,900		97,280
VCA Antech, Inc. (a)	3,180		140,651
			1,860,221
Health Care Services - 4.1%
athenahealth, Inc.	100		3,600
Diagnosticos da America SA	26,200		543,135
Emergency Medical Services Corp. Class A (a)	100		2,928
Express Scripts, Inc. (a)	17,600		1,284,800
HAPC, Inc. (a)	52,900		219,535
HAPC, Inc. warrants 4/11/11 (a)	9,800		3,528
Health Grades, Inc. (a)	41,466		246,723
Healthways, Inc. (a)	1,487		86,900
HMS Holdings Corp. (a)	5,000		166,050
LHC Group, Inc. (a)(d)	11,994		299,610
Matria Healthcare, Inc. (a)	500		11,885
Nighthawk Radiology Holdings, Inc. (a)	20,497		431,462
Omnicare, Inc.	3,669		83,690
Rural/Metro Corp. (a)	1,600		3,424
Virtual Radiologic Corp.	500		10,140
			3,397,410
Managed Health Care - 10.3%
Health Net, Inc. (a)	13,000		627,900
Healthspring, Inc. (a)	4,500		85,725
Humana, Inc. (a)	20,554		1,547,922
Medial Saude SA (a)	30,000		378,371
Triple-S Management Corp.	6,000		121,260
UnitedHealth Group, Inc.	66,370		3,862,734
Universal American Financial Corp. (a)	40,563		1,038,007
Wellcare Health Plans, Inc. (a)	2,400		101,784
WellPoint, Inc. (a)	8,500		745,705
			8,509,408
TOTAL HEALTH CARE PROVIDERS & SERVICES			16,910,274
HEALTH CARE TECHNOLOGY - 1.9%
Health Care Technology - 1.9%
Allscripts Healthcare Solutions, Inc. (a)(d)	18,500		359,270
Cerner Corp. (a)	3,470		195,708
Eclipsys Corp. (a)	17,133		433,636
HLTH Corp. (a)	33,150		444,210
MedAssets, Inc.	2,200		52,668
Vital Images, Inc. (a)	3,700		66,859
			1,552,351
INTERNET SOFTWARE & SERVICES - 0.3%
Internet Software & Services - 0.3%
WebMD Health Corp. Class A (a)(d)	5,222		214,468
LIFE SCIENCES TOOLS & SERVICES - 8.8%
Life Sciences Tools & Services - 8.8%
Affymetrix, Inc. (a)	13,086		302,810
AMAG Pharmaceuticals, Inc.	6,651		399,925
Common Stocks - continued
	Shares		Value
LIFE SCIENCES TOOLS & SERVICES - CONTINUED
Life Sciences Tools & Services - continued
Applera Corp. - Applied Biosystems Group	7,600		$ 257,792
Bruker BioSciences Corp. (a)	36,203		481,500
Charles River Laboratories International, Inc. (a)	1,400		92,120
Covance, Inc. (a)	2,668		231,102
Dishman Pharmaceuticals and Chemicals Ltd.	16,277		152,794
Divi's Laboratories Ltd. (a)	1,653		78,701
Exelixis, Inc. (a)	8,863		76,488
Illumina, Inc. (a)	6,304		373,575
Invitrogen Corp. (a)	4,600		429,686
Lonza Group AG	810		98,203
Luminex Corp. (a)(d)	3,465		56,272
Millipore Corp. (a)	1,450		106,111
PerkinElmer, Inc.	47,693		1,240,972
Pharmaceutical Product Development, Inc.	4,100		165,517
QIAGEN NV (a)	14,900		313,645
Techne Corp. (a)	1,200		79,260
Thermo Fisher Scientific, Inc. (a)	25,775		1,486,702
Third Wave Technologies, Inc. (a)	4,299		41,485
Waters Corp. (a)	9,900		782,793
Wuxi Pharmatech Cayman, Inc. Sponsored ADR	700		20,468
			7,267,921
MACHINERY - 0.4%
Industrial Machinery - 0.4%
Pall Corp.	7,500		302,400
PERSONAL PRODUCTS - 0.5%
Personal Products - 0.5%
Bare Escentuals, Inc. (a)	14,329		347,478
Hengan International Group Co. Ltd.	22,000		98,755
			446,233
PHARMACEUTICALS - 25.7%
Pharmaceuticals - 25.7%
Abbott Laboratories	49,300		2,768,195
Adams Respiratory Therapeutics, Inc. (a)	1,995		119,181
Alembic Ltd.	48,075		117,061
Allergan, Inc. (d)	30,500		1,959,320
Aurobindo Pharma Ltd.	9,136		125,882
Barr Pharmaceuticals, Inc. (a)	12,100		642,510
Beijing Med-Pharm Corp. (a)	3,800		41,724
BioForm Medical, Inc.	1,000		6,830
BioMimetic Therapeutics, Inc. (a)	26,945		468,035
Bristol-Myers Squibb Co.	81,200		2,153,424
China Shineway Pharmaceutical Group Ltd.	214,000		155,071
Eczacibasi ILAC Sanayi TAS (a)	10,000		44,530

	Shares		Value
Elan Corp. PLC sponsored ADR (a)	9,300		$ 204,414
Jazz Pharmaceuticals, Inc. (d)	6,908		101,548
Johnson & Johnson	14,019		935,067
Merck & Co., Inc.	95,337		5,540,034
Nastech Pharmaceutical Co., Inc. (a)	300		1,140
Nexmed, Inc. (a)	19,851		28,387
Novo Nordisk AS Series B sponsored ADR	5,200		337,272
Perrigo Co.	4,800		168,048
Schering-Plough Corp.	62,400		1,662,336
Shire PLC sponsored ADR	5,477		377,639
Sirtris Pharmaceuticals, Inc.	5,639		77,198
Stada Arzneimittel AG	800		49,094
Sun Pharmaceutical Industries Ltd.	1,491		45,547
ULURU, Inc. (a)	2,866		7,767
Wyeth	60,920		2,692,055
XenoPort, Inc. (a)	6,600		368,808
			21,198,117
SOFTWARE - 0.1%
Application Software - 0.1%
Nuance Communications, Inc. (a)	4,200		78,456
Systems Software - 0.0%
Quality Systems, Inc.	352		10,732
TOTAL SOFTWARE			89,188
TEXTILES, APPAREL & LUXURY GOODS - 0.1%
Footwear - 0.1%
China Hongxing Sports Ltd.	171,000		113,885
WATER UTILITIES - 0.4%
Water Utilities - 0.4%
Companhia de Saneamento Basico do Estado de Sao Paulo (SABESP) sponsored ADR	7,500		352,500
TOTAL COMMON STOCKS (Cost $65,655,715)		78,447,137
Money Market Funds - 9.4%

Fidelity Cash Central Fund, 4.58% (b)	4,289,106		4,289,106
Fidelity Securities Lending Cash Central Fund, 4.65% (b)(c)	3,523,252		3,523,252
TOTAL MONEY MARKET FUNDS (Cost $7,812,358)		7,812,358

TOTAL INVESTMENT PORTFOLIO - 104.4%

(Cost $73,468,073)

86,259,495

NET OTHER ASSETS - (4.4)%

(3,636,118)

NET ASSETS - 100%

$ 82,623,377

Legend

(a) Non-income producing

(d) Security or a portion of the security is on loan at period end.

(e) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $15,458 or 0.0% of net assets.

Additional information on each holding is as follows:

Security	Acquisition Date	Acquisition Cost
Electro-Optical Sciences, Inc.: warrants 11/2/11	11/1/06	$ 1
warrants 8/2/12	8/1/07	$ 2

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 47,068
Fidelity Securities Lending Cash Central Fund	46,812
Total	$ 93,880

Other Information

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	88.0%
Brazil	2.5%
Bermuda	1.8%
United Kingdom	1.4%
Germany	1.0%
Others (individually less than 1%)	5.3%
	100.0%

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (including securities loaned of $3,401,124) -See accompanying schedule: Unaffiliated issuers (cost $65,655,715)	$ 78,447,137
Fidelity Central Funds (cost $7,812,358)	7,812,358
Total Investments (cost $73,468,073)		$ 86,259,495
Cash		3,426
Foreign currency held at value (cost $3,290)		3,290
Receivable for investments sold		40,264
Receivable for fund shares sold		45,587
Dividends receivable		70,001
Distributions receivable from Fidelity Central Funds		9,067
Prepaid expenses		249
Other receivables		931
Total assets		86,432,310

Liabilities
Payable for investments purchased	$ 189,912
Payable for fund shares redeemed	561
Accrued management fee	36,979
Other affiliated payables	9,300
Other payables and accrued expenses	48,929
Collateral on securities loaned, at value	3,523,252
Total liabilities		3,808,933

Net Assets		$ 82,623,377
Net Assets consist of:
Paid in capital		$ 60,812,539
Undistributed net investment income		41,704
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		8,983,932
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		12,785,202
Net Assets		$ 82,623,377

Statement of Assets and Liabilities - continued

	December 31, 2007

Initial Class: Net Asset Value, offering price and redemption price per share ($55,675,567 ÷ 4,101,733 shares)		$ 13.57

Investor Class: Net Asset Value, offering price and redemption price per share ($26,947,810 ÷ 1,991,246 shares)		$ 13.53

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Operations

	Year ended December 31, 2007

Investment Income
Dividends		$ 748,688
Interest		1,111
Income from Fidelity Central Funds (including $46,812 from security lending)		93,880
Total income		843,679

Expenses
Management fee	$ 454,912
Transfer agent fees	84,020
Accounting and security lending fees	32,803
Custodian fees and expenses	41,354
Independent trustees' compensation	284
Audit	45,316
Legal	684
Miscellaneous	23,461
Total expenses before reductions	682,834
Expense reductions	(4,580)	678,254
Net investment income (loss)		165,425
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers (net of foreign taxes of $4,778)	9,190,376
Foreign currency transactions	(9,271)
Total net realized gain (loss)		9,181,105
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $5,290)	(1,591,020)
Assets and liabilities in foreign currencies	553
Total change in net unrealized appreciation (depreciation)		(1,590,467)
Net gain (loss)		7,590,638
Net increase (decrease) in net assets resulting from operations		$ 7,756,063

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 165,425	$ 315,318
Net realized gain (loss)	9,181,105	10,231,619
Change in net unrealized appreciation (depreciation)	(1,590,467)	(5,490,932)
Net increase (decrease) in net assets resulting from operations	7,756,063	5,056,005
Distributions to shareholders from net investment income	(399,085)	(52,605)
Distributions to shareholders from net realized gain	(5,172,213)	-
Total distributions	(5,571,298)	(52,605)
Share transactions - net increase (decrease)	(5,226,497)	(45,672,265)
Redemption fees	18,137	27,198
Total increase (decrease) in net assets	(3,023,595)	(40,641,667)

Net Assets
Beginning of period	85,646,972	126,288,639
End of period (including undistributed net investment income of $41,704 and undistributed net investment income of $303,622, respectively)	$ 82,623,377	$ 85,646,972

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 13.17	$ 12.39	$ 10.61	$ 9.77	$ 8.41
Income from Investment Operations
Net investment income (loss)^C	.03	.04	.01	.03	.03
Net realized and unrealized gain (loss)	1.25	.75	1.80	.84	1.33
Total from investment operations	1.28	.79	1.81	.87	1.36
Distributions from net investment income	(.07)	(.01)	(.03)	(.04)	-
Distributions from net realized gain	(.81)	-	-	-	-
Total distributions	(.88)	(.01)	(.03)	(.04)	-
Redemption fees added to paid in capital^C	-^G	-^G	-^G	.01	-^G
Net asset value, end of period	$ 13.57	$ 13.17	$ 12.39	$ 10.61	$ 9.77
Total Return^{A, B}	10.21%	6.34%	17.05%	8.97%	16.17%
Ratios to Average Net Assets^{D, F}
Expenses before reductions	.81%	.77%	.75%	.77%	.89%
Expenses net of fee waivers, if any	.81%	.77%	.75%	.77%	.89%
Expenses net of all reductions	.80%	.76%	.70%	.76%	.85%
Net investment income (loss)	.23%	.33%	.06%	.26%	.32%
Supplemental Data
Net assets, end of period (000 omitted)	$ 55,676	$ 69,418	$ 118,928	$ 65,718	$ 52,603
Portfolio turnover rate^E	128%	106%	122%	56%	124%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^G Amount represents less than $.01 per share.

Financial Highlights - Investor Class

Years ended December 31,	2007	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 13.14	$ 12.37	$ 11.64
Income from Investment Operations
Net investment income (loss)^E	.01	.03	(.01)
Net realized and unrealized gain (loss)	1.24	.75	.74
Total from investment operations	1.25	.78	.73
Distributions from net investment income	(.05)	(.01)	-
Distributions from net realized gain	(.81)	-	-
Total distributions	(.86)	(.01)	-
Redemption fees added to paid in capital^{E, J}	-	-	-
Net asset value, end of period	$ 13.53	$ 13.14	$ 12.37
Total Return^{B, C, D}	10.01%	6.30%	6.27%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.93%	.90%	.93%^A
Expenses net of fee waivers, if any	.93%	.90%	.93%^A
Expenses net of all reductions	.92%	.89%	.89%^A
Net investment income (loss)	.11%	.20%	(.25)%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 26,948	$ 16,229	$ 7,360
Portfolio turnover rate^G	128%	106%	122%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005.

^J Amount represents less than $.01 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Health Care Portfolio (the Fund) is a non-diversified fund of Variable Insurance Products Fund IV (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Annual Report

3. Significant Accounting Policies - continued

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions 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 may include proceeds received from litigation. 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 Fund is 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. As a result of a change in the estimate of the return of capital component of dividend income realized in the year ended December 31, 2006, dividend income has been reduced $94,180 with a corresponding increase to net unrealized appreciation (depreciation). The change in estimate has no impact on total net assets or total return of the Fund. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Book-tax differences are primarily due to certain foreign taxes, foreign currency transactions and losses deferred due to wash sales.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 15,306,524
Unrealized depreciation	(2,714,980)
Net unrealized appreciation (depreciation)	12,591,544
Undistributed ordinary income	2,487,591
Undistributed long-term capital gain	6,731,703

Cost for federal income tax purposes	$ 73,667,951

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 1,176,191	$ 52,605
Long-term Capital Gains	4,395,107	-
Total	$ 5,571,298	$ 52,605

Annual Report

Notes to Financial Statements - continued

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $102,944,724 and $117,053,789, respectively.

6. Fees and Other Transactions with Affiliates.

Initial Class	$ 43,811
Investor Class	40,209
	$ 84,020

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $180 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Annual Report

8. Security Lending.

9. Expense Reductions.

10. Other.

At the end of the period, FMR or its affiliates were the owners of record of 100% of the total outstanding shares of the Fund.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ 326,177	$ 45,607
Investor Class	72,908	6,998
Total	$ 399,085	$ 52,605
From net realized gain
Initial Class	$ 4,069,153	$ -
Investor Class	1,103,060	-
Total	$ 5,172,213	$ -

Annual Report

Notes to Financial Statements - continued

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	366,144	473,551	$ 4,856,177	$ 5,954,403
Reinvestment of distributions	346,986	3,681	4,395,330	45,607
Shares redeemed	(1,880,362)	(4,806,260)	(24,498,174)	(59,742,246)
Net increase (decrease)	(1,167,232)	(4,329,028)	$ (15,246,667)	$ (53,742,236)
Investor Class
Shares sold	1,102,519	994,136	$ 14,551,900	$ 12,464,919
Reinvestment of distributions	93,172	566	1,175,968	6,998
Shares redeemed	(439,794)	(354,157)	(5,707,698)	(4,401,946)
Net increase (decrease)	755,897	640,545	$ 10,020,170	$ 8,069,971

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Health Care Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Health Care Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Health Care Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 20, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Health Care. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Brian B. Hogan (43)
	Year of Election or Appointment: 2007 Vice President of VIP Health Care. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager.
Eric D. Roiter (59)
	Year of Election or Appointment: 2001 Secretary of VIP Health Care. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Health Care. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Health Care. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Health Care. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Health Care. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Health Care. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Health Care. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Health Care. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Health Care. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Health Care. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Health Care. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP IV Health Care Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:

	Pay Date	Record Date	Dividends	Capital Gains
Initial Class	2/15/08	2/15/08	$0.01	$1.37
Investor Class	2/15/08	2/15/08	$0.01	$1.37

The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2007, $6,731,703, or, if subsequently determined to be different, the net capital gain of such year.

Initial Class designates 97% and 100%; and Investor Class designate 100% and 100% of the dividends distributed in February 2007 and December 2007 respectively, as qualifying for the dividends-received deduction for corporate shareholders.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Health Care Portfolio

Annual Report

VIP Health Care Portfolio

The Board stated that the relative investment performance of Initial Class of the fund compared favorably to its benchmark for all the periods shown. The Board considered that the variations in performance between the fund's classes reflect the variations in class expenses, which result in lower performance for the higher expense class.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Health Care Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

The Board noted that the total expenses of each class ranked below its competitive median for 2006.

Annual Report

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank
New York, NY

VHCIC-ANN-0208
1.817373.102

Fidelity® Variable Insurance Products:
Industrials Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 the 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Past 5 years	Life of fund ^A
VIP Industrials - Initial Class ^C	18.21%	21.53%	12.54%
VIP Industrials - Investor Class ^B,C	18.12%	21.45%	12.48%

^A From July 18, 2001.

^B The initial offering of Investor Class shares took place on July 21, 2005. Returns prior to July 21, 2005, are those of Initial Class. If Investor Class's transfer agent fee had been reflected, returns prior to July 21, 2005 would have been lower.

^C Prior to October 1, 2006, VIP Industrials operated under certain different investment policies. The historical performance for the fund may not represent its current investment policies.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Industrials Portfolio - Initial Class on July 18, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Tobias Welo, Portfolio Manager of VIP Industrials Portfolio

During the past year, the fund handily outperformed the 13.40% return of the Morgan Stanley Capital International^SM (MSCI®) US Investable Market Industrials Index and more than tripled the S&P 500's gain. (For specific portfolio performance results, please refer to the performance section of this report.) Overweighted exposures and timely stock selection in construction and engineering and in heavy electrical equipment did a lot to boost our return relative to the MSCI index. Favorable stock selection in aerospace and defense and in industrial machinery proved beneficial as well. Two construction and engineering names - Shaw Group and Dutch holding Chicago Bridge & Iron - benefited from the build-out of energy infrastructure amid record highs in crude oil prices. Shaw Group was positioned to benefit from stronger demand for nuclear energy as well. In aerospace and defense, overweighting Honeywell International and not owning MSCI index component Boeing were the right calls. Switzerland-based ABB, a provider of power transmission and distribution equipment, further helped our results versus the index. Chicago Bridge & Iron and ABB were out-of-benchmark positions. Conversely, stock selection hurt in environmental and facility services and in airlines, while underweighting construction and farm machinery/heavy trucks also was detrimental. US Airways Group was the fund's largest detractor. Crude oil prices near $100 per barrel trumped a number of positive factors and dealt the stock a significant setback. Underweighting agricultural equipment maker and MSCI index component Deere & Co. - which I sold by period end - hurt performance. Waste management stock Allied Waste Industries and Masco, a well-managed building products supplier, were other notable detractors.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 1,039.70	$ 3.96
Hypothetical^A	$ 1,000.00	$ 1,021.32	$ 3.92
Investor Class
Actual	$ 1,000.00	$ 1,039.10	$ 4.63
Hypothetical^A	$ 1,000.00	$ 1,020.67	$ 4.58

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.77%
Investor Class	.90%

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
General Electric Co.	9.0	9.2
United Technologies Corp.	5.6	7.8
Honeywell International, Inc.	4.9	4.2
Lockheed Martin Corp.	3.1	0.0
Danaher Corp.	2.8	3.0
Siemens AG sponsored ADR	2.2	1.1
The Brink's Co.	1.9	1.6
Raytheon Co.	1.9	2.2
Emerson Electric Co.	1.9	3.0
Cummins, Inc.	1.8	1.8
	35.1

Top Industries (% of fund's net assets)
As of December 31, 2007
	Machinery	22.2%
	Aerospace & Defense	17.5%
	Industrial Conglomerates	13.0%
	Electrical Equipment	10.1%
	Commercial Services & Supplies	9.7%
	All Others*	27.5%


As of June 30, 2007
	Industrial Conglomerates	19.9%
	Aerospace & Defense	16.7%
	Machinery	15.7%
	Road & Rail	8.6%
	Electrical Equipment	7.5%
	All Others*	31.6%

* Includes short-term investments and net other assets.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 98.0%
	Shares		Value
AEROSPACE & DEFENSE - 17.5%
Aerospace & Defense - 17.5%
General Dynamics Corp.	13,800		$ 1,228,062
Honeywell International, Inc.	60,800		3,743,456
Lockheed Martin Corp.	22,200		2,336,772
Raytheon Co.	23,800		1,444,660
Spirit AeroSystems Holdings, Inc. Class A	9,300		320,850
United Technologies Corp.	56,299		4,309,125
			13,382,925
AIR FREIGHT & LOGISTICS - 2.5%
Air Freight & Logistics - 2.5%
C.H. Robinson Worldwide, Inc.	10,300		557,436
FedEx Corp.	14,800		1,319,716
			1,877,152
AIRLINES - 1.8%
Airlines - 1.8%
Delta Air Lines, Inc. (a)	30,895		460,027
UAL Corp.	13,100		467,146
US Airways Group, Inc. (a)	30,400		447,184
			1,374,357
AUTO COMPONENTS - 2.4%
Auto Parts & Equipment - 2.4%
Johnson Controls, Inc.	36,400		1,311,856
WABCO Holdings, Inc.	10,841		543,026
			1,854,882
AUTOMOBILES - 1.7%
Automobile Manufacturers - 1.7%
DaimlerChrysler AG	5,500		525,965
Fiat SpA	29,100		751,481
			1,277,446
BUILDING PRODUCTS - 2.1%
Building Products - 2.1%
Lennox International, Inc.	16,000		662,720
Masco Corp.	45,020		972,882
			1,635,602
CHEMICALS - 2.8%
Commodity Chemicals - 0.2%
Calgon Carbon Corp. (a)	8,470		134,588
Industrial Gases - 0.8%
Airgas, Inc.	11,283		587,957
Specialty Chemicals - 1.8%
Albemarle Corp.	15,950		657,938
Nalco Holding Co.	30,400		735,072
			1,393,010
TOTAL CHEMICALS			2,115,555

	Shares		Value
COMMERCIAL SERVICES & SUPPLIES - 9.7%
Commercial Printing - 0.7%
R.R. Donnelley & Sons Co.	14,800		$ 558,552
Diversified Commercial & Professional Services - 3.3%
Corrections Corp. of America (a)	16,400		483,964
Equifax, Inc.	15,800		574,488
The Brink's Co.	24,435		1,459,747
			2,518,199
Environmental & Facility Services - 4.9%
Allied Waste Industries, Inc. (a)	114,100		1,257,382
Fuel Tech, Inc. (a)(d)	29,328		664,279
Waste Connections, Inc. (a)	19,900		614,910
Waste Management, Inc.	37,300		1,218,591
			3,755,162
Human Resource & Employment Services - 0.8%
Manpower, Inc.	10,600		603,140
TOTAL COMMERCIAL SERVICES & SUPPLIES			7,435,053
CONSTRUCTION & ENGINEERING - 4.4%
Construction & Engineering - 4.4%
Chicago Bridge & Iron Co. NV (NY Shares)	15,300		924,732
Fluor Corp.	3,400		495,448
Jacobs Engineering Group, Inc. (a)	4,000		382,440
Quanta Services, Inc. (a)	20,078		526,847
Shaw Group, Inc. (a)	17,600		1,063,744
			3,393,211
ELECTRICAL EQUIPMENT - 10.1%
Electrical Components & Equipment - 7.1%
Acuity Brands, Inc.	6,300		283,500
AMETEK, Inc.	8,150		381,746
Cooper Industries Ltd. Class A	21,400		1,131,632
Emerson Electric Co.	25,200		1,427,832
First Solar, Inc. (a)	2,300		614,422
General Cable Corp. (a)(d)	3,400		249,152
Nexans SA	5,600		698,761
SolarWorld AG	4,000		243,720
Sunpower Corp. Class A (a)(d)	3,000		391,170
			5,421,935
Heavy Electrical Equipment - 3.0%
ABB Ltd. sponsored ADR	26,300		757,440
Alstom SA	2,800		600,689
Vestas Wind Systems AS (a)	9,200		993,923
			2,352,052
TOTAL ELECTRICAL EQUIPMENT			7,773,987
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.8%
Electronic Equipment & Instruments - 0.8%
Itron, Inc. (a)	6,300		604,611
Common Stocks - continued
	Shares		Value
ENERGY EQUIPMENT & SERVICES - 0.2%
Oil & Gas Equipment & Services - 0.2%
FMC Technologies, Inc. (a)	3,200		$ 181,440
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 0.4%
Independent Power Producers & Energy Traders - 0.4%
NRG Energy, Inc. (a)	6,600		286,044
INDUSTRIAL CONGLOMERATES - 13.0%
Industrial Conglomerates - 13.0%
General Electric Co.	185,519		6,877,189
Orkla ASA (A Shares)	10,600		205,290
Siemens AG sponsored ADR	10,800		1,699,488
Tyco International Ltd.	29,381		1,164,957
			9,946,924
MACHINERY - 22.2%
Construction & Farm Machinery & Heavy Trucks - 7.7%
Bucyrus International, Inc. Class A	9,560		950,168
Cummins, Inc.	11,200		1,426,544
Navistar International Corp. (a)	10,800		585,360
Oshkosh Truck Co.	19,000		897,940
PACCAR, Inc.	17,882		974,211
Terex Corp. (a)	16,100		1,055,677
			5,889,900
Industrial Machinery - 14.5%
Danaher Corp.	24,200		2,123,308
Eaton Corp.	13,618		1,320,265
Flowserve Corp.	10,600		1,019,720
Illinois Tool Works, Inc.	26,300		1,408,102
Ingersoll-Rand Co. Ltd. Class A	29,000		1,347,630
ITT Corp.	14,600		964,184
Pall Corp.	13,300		536,256
SPX Corp. (d)	10,602		1,090,416
Sulzer AG (Reg.)	892		1,310,491
			11,120,372
TOTAL MACHINERY			17,010,272
METALS & MINING - 0.7%
Diversified Metals & Mining - 0.7%
Titanium Metals Corp. (d)	19,670		520,272
ROAD & RAIL - 5.1%
Railroads - 1.0%
Union Pacific Corp.	6,200		778,844
Trucking - 4.1%
Hertz Global Holdings, Inc.	37,500		595,875

	Shares		Value
Knight Transportation, Inc.	21,300		$ 315,453
Landstar System, Inc.	17,356		731,555
Old Dominion Freight Lines, Inc. (a)	21,466		496,079
Ryder System, Inc.	21,700		1,020,117
			3,159,079
TOTAL ROAD & RAIL			3,937,923
TRADING COMPANIES & DISTRIBUTORS - 0.6%
Trading Companies & Distributors - 0.6%
Rush Enterprises, Inc. Class A (a)	27,148		493,551
TOTAL COMMON STOCKS (Cost $67,600,082)		75,101,207

Nonconvertible Bonds - 0.0%
	Principal Amount
AIRLINES - 0.0%
Airlines - 0.0%
Delta Air Lines, Inc. 8.3% 12/15/29 (a) (Cost $15,608)	$ 540,000	24,300

Money Market Funds - 4.8%
	Shares
Fidelity Cash Central Fund, 4.58% (b)	1,128,814		1,128,814
Fidelity Securities Lending Cash Central Fund, 4.65% (b)(c)	2,562,965		2,562,965
TOTAL MONEY MARKET FUNDS (Cost $3,691,779)		3,691,779
TOTAL INVESTMENT PORTFOLIO - 102.8% (Cost $71,307,469)			78,817,286
NET OTHER ASSETS - (2.8)%			(2,167,970)
NET ASSETS - 100%		$ 76,649,316

Legend

(a) Non-income producing

(d) Security or a portion of the security is on loan at period end.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 40,347
Fidelity Securities Lending Cash Central Fund	15,783
Total	$ 56,130

Other Information

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	83.9%
Bermuda	4.8%
Germany	3.2%
Switzerland	2.7%
France	1.6%
Denmark	1.3%
Netherlands	1.2%
Italy	1.0%
Others (individually less than 1%)	0.3%
	100.0%

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007
Assets
Investment in securities, at value (including securities loaned of $2,492,879) - See accompanying schedule: Unaffiliated issuers (cost $67,615,690)	$ 75,125,507
Fidelity Central Funds (cost $3,691,779)	3,691,779
Total Investments (cost $71,307,469)		$ 78,817,286
Receivable for investments sold		333,537
Receivable for fund shares sold		424,309
Dividends receivable		121,598
Distributions receivable from Fidelity Central Funds		10,797
Prepaid expenses		232
Other receivables		343
Total assets		79,708,102

Liabilities
Payable to custodian bank	$ 43,557
Payable for investments purchased	357,054
Payable for fund shares redeemed	11,261
Accrued management fee	34,741
Other affiliated payables	8,940
Other payables and accrued expenses	40,268
Collateral on securities loaned, at value	2,562,965
Total liabilities		3,058,786

Net Assets		$ 76,649,316
Net Assets consist of:
Paid in capital		$ 67,931,525
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		1,208,158
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		7,509,633
Net Assets		$ 76,649,316

Statement of Assets and Liabilities - continued

	December 31, 2007
Initial Class: Net Asset Value, offering price and redemption price per share ($50,586,450 ÷ 3,506,742 shares)		$ 14.43

Investor Class: Net Asset Value, offering price and redemption price per share ($26,062,866 ÷ 1,813,003 shares)		$ 14.38

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

	Year ended December 31, 2007
Investment Income
Dividends		$ 889,219
Interest		61
Income from Fidelity Central Funds		56,130
Total income		945,410

Expenses
Management fee	$ 371,653
Transfer agent fees	70,423
Accounting and security lending fees	26,342
Custodian fees and expenses	17,443
Independent trustees' compensation	228
Audit	41,622
Legal	482
Miscellaneous	14,251
Total expenses before reductions	542,444
Expense reductions	(793)	541,651
Net investment income (loss)		403,759
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers (net of foreign taxes of $8,451)	9,949,640
Foreign currency transactions	(4,835)
Total net realized gain (loss)		9,944,805
Change in net unrealized appreciation (depreciation) on: Investment securities	(99,750)
Assets and liabilities in foreign currencies	(219)
Total change in net unrealized appreciation (depreciation)		(99,969)
Net gain (loss)		9,844,836
Net increase (decrease) in net assets resulting from operations		$ 10,248,595

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 403,759	$ 585,385
Net realized gain (loss)	9,944,805	7,681,953
Change in net unrealized appreciation (depreciation)	(99,969)	(720,697)
Net increase (decrease) in net assets resulting from operations	10,248,595	7,546,641
Distributions to shareholders from net investment income	(396,466)	(587,778)
Distributions to shareholders from net realized gain	(8,842,045)	(9,197,294)
Total distributions	(9,238,511)	(9,785,072)
Share transactions - net increase (decrease)	11,529,518	14,031,048
Redemption fees	20,061	29,081
Total increase (decrease) in net assets	12,559,663	11,821,698

Net Assets
Beginning of period	64,089,653	52,267,955
End of period (including undistributed net investment income of $0 and $641, respectively)	$ 76,649,316	$ 64,089,653

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 13.90	$ 14.20	$ 13.81	$ 11.16	$ 8.08
Income from Investment Operations
Net investment income (loss) ^C	.10	.14	.08	.08 ^H	.03
Net realized and unrealized gain (loss)	2.43	2.02	1.70	2.59	3.06
Total from investment operations	2.53	2.16	1.78	2.67	3.09
Distributions from net investment income	(.09)	(.15)	(.10)	(.04)	(.02)
Distributions from net realized gain	(1.91)	(2.33)	(1.30)	-	-
Total distributions	(2.00)	(2.47) ^I	(1.40)	(.04)	(.02)
Redemption fees added to paid in capital ^C	-^G	.01	.01	.02	.01
Net asset value, end of period	$ 14.43	$ 13.90	$ 14.20	$ 13.81	$ 11.16
Total Return^A,B	18.21%	15.71%	12.88%	24.10%	38.37%
Ratios to Average Net Assets^D,F
Expenses before reductions	.78%	.79%	.81%	.95%	1.85%
Expenses net of fee waivers, if any	.78%	.79%	.81%	.95%	1.50%
Expenses net of all reductions	.78%	.78%	.76%	.90%	1.47%
Net investment income (loss)	.64%	.95%	.53%	.63% ^H	.35%
Supplemental Data
Net assets, end of period (000 omitted)	$ 50,586	$ 51,332	$ 50,332	$ 62,299	$ 19,618
Portfolio turnover rate ^E	122%	137%	160%	121%	117%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

^G Amount represents less than $.01 per share.

^H As a result in the change in the estimate of the return of capital components of dividend income realized in the year ended December 31, 2003, net investment income per share and the ratio of net investment income to average net assets for the year ended December 31, 2004 have been reduced by $.00 per share and .04%, respectively. The change in estimate has no impact on total net assets or total return of the class.

^I Total distributions of $2.47 per share is comprised of distributions from net investment income of $.147 and distributions from net realized gain of $2.325 per share.

Financial Highlights - Investor Class

Years ended December 31,	2007	2006	2005 ^H
Selected Per-Share Data
Net asset value, beginning of period	$ 13.86	$ 14.19	$ 14.55
Income from Investment Operations
Net investment income (loss) ^E	.08	.12	.02
Net realized and unrealized gain (loss)	2.43	2.00	.96
Total from investment operations	2.51	2.12	.98
Distributions from net investment income	(.08)	(.14)	(.09)
Distributions from net realized gain	(1.91)	(2.33)	(1.25)
Total distributions	(1.99)	(2.46)^K	(1.34)
Redemption fees added to paid in capital^E	-^J	.01	-^J
Net asset value, end of period	$ 14.38	$ 13.86	$ 14.19
Total Return^B,C,D	18.12%	15.43%	6.65%
Ratios to Average Net Assets^F,I
Expenses before reductions	.90%	.92%	1.08% ^A
Expenses net of fee waivers, if any	.90%	.92%	1.08% ^A
Expenses net of all reductions	.90%	.92%	1.03% ^A
Net investment income (loss)	.52%	.81%	.31% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 26,063	$ 12,758	$ 1,936
Portfolio turnover rate ^G	122%	137%	160%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005.

^J Amount represents less than $.01 per share.

^K Total distributions of $2.46 per share is comprised of distributions from net investment income of $.138 and distributions from net realized gain of $2.325 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Industrials Portfolio (the Fund) is a non-diversified fund of Variable Insurance Products Fund IV (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

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 an independent pricing service on the primary market or exchange on which they are traded. 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. Debt securities, including restricted securities, for which quotations are readily available, are valued by independent pricing services or by dealers who make markets in such securities. Pricing services consider yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Foreign Currency - continued

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions 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 may include proceeds received from litigation. 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 Fund is 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes and losses deferred due to wash sales.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 11,173,012
Unrealized depreciation	(3,768,873)
Net unrealized appreciation (depreciation)	7,404,139
Undistributed ordinary income	703,191
Undistributed long-term capital gain	610,460

Cost for federal income tax purposes	$ 71,413,147

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 5,349,354	$ 3,917,105
Long-term Capital Gains	3,889,157	5,867,967
Total	$ 9,238,511	$ 9,785,072

New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.

Annual Report

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $83,517,086 and $81,079,806, respectively.

6. Fees and Other Transactions with Affiliates.

Initial Class	$ 36,040
Investor Class	34,383
	$ 70,423

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $135 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

Annual Report

Notes to Financial Statements - continued

9. Expense Reductions.

10. Other.

At the end of the period, FMR or its affiliates were the owners of record of 100% of the total outstanding shares of the Fund.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ 272,670	$ 477,491
Investor Class	123,796	110,287
Total	$ 396,466	$ 587,778
From net realized gain
Initial Class	$ 5,872,517	$ 7,633,932
Investor Class	2,969,528	1,563,362
Total	$ 8,842,045	$ 9,197,294

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	515,158	971,069	$ 8,136,966	$ 14,819,374
Reinvestment of distributions	425,160	581,159	6,145,187	8,111,423
Shares redeemed	(1,127,712)	(1,401,453)	(16,771,318)	(20,744,056)
Net increase (decrease)	(187,394)	150,775	$ (2,489,165)	$ 2,186,741
Investor Class
Shares sold	981,693	853,271	$ 15,432,146	$ 12,967,127
Reinvestment of distributions	214,711	120,766	3,093,324	1,673,649
Shares redeemed	(303,783)	(190,154)	(4,506,787)	(2,796,469)
Net increase (decrease)	892,621	783,883	$ 14,018,683	$ 11,844,307

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Industrials Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Industrials Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Industrials Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 15, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006- present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000- 2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987- 1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002- present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002- present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002- 2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006- present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Industrials. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Brian B. Hogan (43)
	Year of Election or Appointment: 2007 Vice President of VIP Industrials. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager.
Eric D. Roiter (59)
	Year of Election or Appointment: 2001 Secretary of VIP Industrials. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Industrials. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Industrials. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Industrials. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Industrials. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Industrials. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Industrials. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Industrials. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Industrials. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Industrials. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Industrials. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP Industrials Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

	Pay Date	Record Date	Capital Gains
Initial Class	02/15/08	02/15/08	$0.260
Investor Class	02/15/08	02/15/08	$0.260

The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31 2007, $4,462,174 or, if subsequently determined to be different, the net capital gain of such year.

Initial Class and Investor Class designate 1% and 16% of the dividends distributed in February 2007 and December 2007, respectively, as qualifying for the dividends-received deduction for corporate shareholders.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Industrials Portfolio

Annual Report

VIP Industrials Portfolio

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 8% means that 92% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

VIP Industrials Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

The Board noted that the total expenses of each class ranked below its competitive median for 2006.

Annual Report

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank
New York, NY

VCYLIC-ANN-0208
1.817361.102

Fidelity® Variable Insurance Products:
International Capital Appreciation Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 Year	Life of Fund^A
VIP International Capital Appreciation - Initial Class	5.17%	11.38%
VIP International Capital Appreciation - Service Class	5.06%	11.25%
VIP International Capital Appreciation - Service Class 2	4.89%	11.09%
VIP International Capital Appreciation - Initial Class R	5.17%	11.38%
VIP International Capital Appreciation - Service Class R	5.06%	11.25%
VIP International Capital Appreciation - Service Class 2R	4.90%	11.09%
VIP International Capital Appreciation - Investor Class R ^B	5.07%	11.26%

^AFrom December 22, 2004.

^BThe initial offering of Investor Class R shares took place on July 21, 2005. Returns prior to July 21, 2005 are those of Initial Class R. If Investor Class R's transfer agent fee had been reflected, returns prior to July 21, 2005 would have been lower.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP International Capital Appreciation Portfolio - Initial Class on December 22, 2004, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Morgan Stanley Capital International^SM All Country World (MSCI® ACWI) ex USA Index performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Sammy Simnegar, who will become Portfolio Manager of VIP International Capital Appreciation Portfolio on
January 1, 2008

VIP International Capital Appreciation Portfolio had disappointing results for the calendar year, trailing well behind the 16.80% return of the MSCI All Country World ex USA Index. (For specific portfolio performance results, please refer to the performance section of this report.) I believe there were three major variables that help explain why the fund underperformed as it did. First, it had a fairly substantial overweighting in Japan, which was the only regional market in the index that had negative performance during the period. Second, the Japanese stocks held in the portfolio - many of which were deeply undervalued names - tended to underperform to an even greater degree than did the Japanese market itself. Lastly, although the fund was overweighted in materials - the index's strongest sector during the period - it held some of the weakest-performing names in that group, which was far and away the biggest detracting factor. Among the stocks that hurt relative performance the worst were North American paper producers Catalyst Paper and AbitibiBowater; South African miner Gold Fields; and Japanese home and garden equipment maker Kubota. On the positive side of the ledger, good stock selection in the automobiles and components segment of consumer discretionary, along with solid picks in energy and an underweighting in the weak financials sector, offset some of the downside, with productive results from such stocks as Saskatchewan Wheat Pool, the Canadian grain handler; CNH Global, the Amsterdam-based maker of farm equipment; and Fiat, the Italian automaker. Favorable currency movements also helped. Several of these stocks were out-of-index holdings, and several were no longer held in the portfolio at period end.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 941.40	$ 5.38
Hypothetical ^A	$ 1,000.00	$ 1,019.66	$ 5.60
Service Class
Actual	$ 1,000.00	$ 941.00	$ 5.87
Hypothetical ^A	$ 1,000.00	$ 1,019.16	$ 6.11
Service Class 2
Actual	$ 1,000.00	$ 940.20	$ 6.60
Hypothetical ^A	$ 1,000.00	$ 1,018.40	$ 6.87
Initial Class R
Actual	$ 1,000.00	$ 941.40	$ 5.38
Hypothetical ^A	$ 1,000.00	$ 1,019.66	$ 5.60
Service Class R
Actual	$ 1,000.00	$ 941.00	$ 5.87
Hypothetical ^A	$ 1,000.00	$ 1,019.16	$ 6.11
Service Class 2R
Actual	$ 1,000.00	$ 940.30	$ 6.60
Hypothetical ^A	$ 1,000.00	$ 1,018.40	$ 6.87
Investor Class R
Actual	$ 1,000.00	$ 940.90	$ 5.92
Hypothetical ^A	$ 1,000.00	$ 1,019.11	$ 6.16

^A 5% return per year before expenses

Annual Report

Shareholder Expense Example - continued

	Annualized Expense Ratio
Initial Class	1.10%
Service Class	1.20%
Service Class 2	1.35%
Initial Class R	1.10%
Service Class R	1.20%
Service Class 2R	1.35%
Investor Class R	1.21%

Annual Report

Investment Changes

Geographic Diversification (% of fund's net assets)
As of December 31, 2007
	Japan	18.0%
	United Kingdom	12.3%
	Germany	11.0%
	United States of America	8.1%
	Switzerland	7.5%
	Canada	6.5%
	France	4.0%
	Spain	3.2%
	Cayman Islands	2.6%
	Other	26.8%

Percentages are adjusted for the effect of futures contracts, if applicable.


As of June 30, 2007
	United States of America	20.6%
	Japan	20.6%
	Canada	19.8%
	Hong Kong	5.7%
	Netherlands	4.3%
	South Africa	4.0%
	Germany	3.9%
	Switzerland	2.7%
	Argentina	2.3%
	Other	16.1%

Percentages are adjusted for the effect of futures contracts, if applicable.

Asset Allocation
	% of fund's net assets	% of fund's net assets 6 months ago
Stocks	94.4	86.1
Bonds	0.0	2.9
Short-Term Investments and Net Other Assets	5.6	11.0
Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
E.ON AG (Germany, Electric Utilities)	3.3	2.6
Shinsei Bank Ltd. (Japan, Commercial Banks)	2.8	2.2
Actelion Ltd. (Reg.) (Switzerland, Biotechnology)	2.0	1.7
Saskatchewan Wheat Pool, Inc. (Canada, Food Products)	2.0	2.7
Takeda Pharmaceutical Co. Ltd. (Japan, Pharmaceuticals)	1.9	3.8
SFCG Co. Ltd. (Japan, Consumer Finance)	1.8	1.5
Royal Dutch Shell PLC Class A (United Kingdom, Oil, Gas & Consumable Fuels)	1.7	0.0
UBS AG (NY Shares) (Switzerland, Capital Markets)	1.6	0.0
Vodafone Group PLC sponsored ADR (United Kingdom, Wireless Telecommunication Services)	1.6	0.0
Banco Santander SA (Spain, Commercial Banks)	1.5	0.0
	20.2
Market Sectors as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Financials	24.9	14.9
Materials	11.4	20.0
Health Care	8.6	10.0
Energy	8.6	8.9
Industrials	8.0	9.7
Consumer Discretionary	7.5	6.8
Consumer Staples	7.1	10.7
Telecommunication Services	6.7	1.7
Information Technology	6.1	0.8
Utilities	5.5	2.6

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 94.0%
	Shares		Value
Argentina - 0.3%
Inversiones y Representaciones SA sponsored GDR (a)	13,200		$ 192,192
Australia - 1.9%
ABB Grain Ltd.	279		2,065
Babcock & Brown Ltd.	9,935		236,261
Commonwealth Bank of Australia	7,536		390,106
CSL Ltd.	8,196		261,024
Leighton Holdings Ltd.	4,541		243,421
Macquarie Group Ltd.	4,045		269,978
Newcrest Mining Ltd.	1		29
TOTAL AUSTRALIA			1,402,884
Austria - 0.3%
voestalpine AG	3,300		238,152
Brazil - 2.2%
Companhia Vale do Rio Doce (PN-A) sponsored ADR	16,500		461,670
MRV Engenharia e Participacoes SA	8,500		181,699
Petroleo Brasileiro SA - Petrobras (PN) sponsored ADR (non-vtg.)	5,400		519,588
Redecard SA	11,000		179,213
Uniao de Bancos Brasileiros SA (Unibanco) GDR	2,200		307,208
TOTAL BRAZIL			1,649,378
Canada - 6.5%
Addax Petroleum, Inc.	8,000		345,831
Canadian Natural Resources Ltd.	4,400		321,425
Canadian Western Bank, Edmonton	8,600		271,360
Canfor Corp.	13,400		117,741
European Goldfields Ltd. (a)	48,700		268,609
IAMGOLD Corp.	109,900		894,863
Research In Motion Ltd. (a)	3,000		340,200
Saputo, Inc.	7,900		237,187
Saskatchewan Wheat Pool, Inc. (a)(e)	109,800		1,473,136
Suncor Energy, Inc.	3,300		358,415
Uranium One, Inc. (a)	19,400		172,414
TOTAL CANADA			4,801,181
Cayman Islands - 2.6%
Agile Property Holdings Ltd.	124,000		225,828
Apex Silver Mines Ltd. (a)	22,000		335,280
Chaoda Modern Agriculture (Holdings) Ltd.	214,000		193,769
Hutchison Telecommunications International Ltd.	634,000		952,980
Lee & Man Paper Manufacturing Ltd.	50,400		221,390
TOTAL CAYMAN ISLANDS			1,929,247
China - 0.9%
China Construction Bank Corp. (H Shares)	379,000		321,298

	Shares		Value
China Cosco Holdings Co. Ltd. (H Shares)	35,500		$ 98,117
China Resources Land Ltd.	126,000		278,596
TOTAL CHINA			698,011
Cyprus - 0.4%
Marfin Popular Bank Public Co.	19,700		261,627
Czech Republic - 1.0%
Ceske Energeticke Zavody AS	3,400		254,818
Philip Morris CR AS	1,150		494,539
TOTAL CZECH REPUBLIC			749,357
Denmark - 0.4%
Vestas Wind Systems AS (a)	2,400		259,284
Finland - 1.3%
Nokia Corp. sponsored ADR	25,700		986,623
France - 4.0%
AXA SA	12,900		512,259
Bouygues SA	3,200		266,195
Electricite de France	2,100		249,715
Eutelsat Communications	2,200		65,337
Renault SA	2,600		368,099
Sanofi-Aventis sponsored ADR	13,571		617,888
Suez SA (France)	6,600		452,100
Vivendi	8,960		410,332
TOTAL FRANCE			2,941,925
Germany - 11.0%
Allianz AG (Reg.)	4,000		850,000
Bayer AG	4,800		436,800
Beiersdorf AG	2,800		216,575
DaimlerChrysler AG	7,900		755,477
Deutsche Boerse AG	1,600		316,982
E.ON AG	11,500		2,451,584
Fresenius AG	2,500		204,316
K&S AG	1,000		237,517
Lanxess AG	9,200		451,130
MAN AG	1,600		265,728
RWE AG	3,100		434,317
Siemens AG sponsored ADR	5,700		896,952
SolarWorld AG	3,800		231,534
United Internet AG	9,000		218,691
Wacker Chemie AG	800		230,819
TOTAL GERMANY			8,198,422
Greece - 1.0%
Coca-Cola Hellenic Bottling Co. SA (Bearer)	6,600		285,108
National Bank of Greece SA	5,350		366,810
Public Power Corp. of Greece	2,300		120,838
TOTAL GREECE			772,756
Hong Kong - 1.1%
CNPC (Hong Kong) Ltd.	480,000		307,191
Common Stocks - continued
	Shares		Value
Hong Kong - continued
Hong Kong Exchanges & Clearing Ltd.	10,500		$ 297,880
Li & Fung Ltd.	56,000		226,238
TOTAL HONG KONG			831,309
Hungary - 0.3%
OTP Bank Ltd.	4,900		248,434
India - 1.3%
Bharti Airtel Ltd. (a)	7,050		178,267
Housing Development Finance Corp. Ltd.	2,666		194,698
Reliance Industries Ltd.	3,538		258,825
Satyam Computer Services Ltd.	16,095		184,620
Sun Pharmaceutical Industries Ltd.	5,894		180,051
TOTAL INDIA			996,461
Israel - 1.1%
Check Point Software Technologies Ltd. (a)	12,200		267,912
Israel Chemicals Ltd.	19,600		249,117
Partner Communications Co. Ltd. ADR	13,100		289,248
TOTAL ISRAEL			806,277
Italy - 0.4%
Fiat SpA	10,200		263,406
Japan - 18.0%
Aioi Insurance Co. Ltd.	21,000		99,295
Canon, Inc.	11,300		517,879
Denso Corp.	5,000		203,836
Ibiden Co. Ltd.	2,800		193,964
Japan Tobacco, Inc.	37		219,164
Konica Minolta Holdings, Inc.	10,500		184,406
Kubota Corp.	35,000		235,956
Makita Corp.	4,100		171,716
Marubeni Corp.	15,000		105,294
Millea Holdings, Inc.	28,163		937,828
Mitsubishi Corp.	5,500		149,123
Mitsubishi Electric Corp.	20,000		207,515
Mitsubishi Estate Co. Ltd.	10,000		238,677
Mitsui & Co. Ltd.	7,000		146,441
Mitsui Fudosan Co. Ltd.	10,000		216,051
Mitsui Marine & Fire Insurance Co. Ltd.	90,000		872,956
NGK Insulators Ltd.	7,000		188,016
Nikon Corp.	5,000		170,397
Nintendo Co. Ltd.	500		296,200
Nissin Healthcare Food Service Co.	5,200		59,442
ORIX Corp.	1,210		203,872
Parco Co. Ltd.	54,300		675,485
Seino Holdings Co. Ltd.	24,200		163,128
SFCG Co. Ltd.	9,460		1,308,531
Shinsei Bank Ltd.	582,000		2,116,733
Sumitomo Metal Mining Co. Ltd.	11,000		186,305
Sumitomo Mitsui Financial Group, Inc.	59		437,399
Takeda Pharmaceutical Co. Ltd.	24,000		1,404,615

	Shares		Value
Terumo Corp.	3,300		$ 172,347
Tokyo Steel Manufacturing Co. Ltd.	12,400		137,356
Toyota Motor Corp. sponsored ADR	9,100		966,147
USS Co. Ltd.	3,820		237,662
TOTAL JAPAN			13,423,736
Korea (South) - 1.6%
Daewoo Shipbuilding & Marine Engineering Co. Ltd.	1,720		94,810
Hyundai Heavy Industries Co. Ltd.	260		122,904
Kookmin Bank	2,820		207,862
KT&G Corp.	2,110		179,646
LG.Philips LCD Co. Ltd. sponsored ADR (a)	15,500		402,690
SK Energy Co. Ltd.	1,010		195,289
TOTAL KOREA (SOUTH)			1,203,201
Luxembourg - 0.6%
Evraz Group SA GDR	2,700		209,250
Oriflame Cosmetics SA unit	4,200		268,273
TOTAL LUXEMBOURG			477,523
Malaysia - 0.3%
KNM Group Bhd	105,300		245,180
Mexico - 1.1%
America Movil SAB de CV Series L sponsored ADR	6,100		374,479
Desarrolladora Homex Sab de CV (a)	34,300		282,702
Grupo Mexico SA de CV Series B	30,077		188,849
TOTAL MEXICO			846,030
Netherlands - 1.4%
Heineken NV (Bearer)	3,900		249,210
Koninklijke KPN NV	19,900		361,283
Koninklijke Philips Electronics NV	9,800		418,950
TOTAL NETHERLANDS			1,029,443
Norway - 1.0%
Aker Kvaerner ASA	8,750		232,657
Petroleum Geo-Services ASA	8,100		235,123
Yara International ASA	5,200		240,648
TOTAL NORWAY			708,428
Russia - 1.7%
Lukoil Oil Co. sponsored ADR	3,400		293,420
OAO Gazprom sponsored ADR	11,500		647,450
Sberbank (Savings Bank of the Russian Federation) GDR	628		340,023
TOTAL RUSSIA			1,280,893
Singapore - 0.2%
Keppel Corp. Ltd.	15,000		135,280
South Africa - 2.1%
African Bank Investments Ltd.	61,800		297,250
Bidvest Group Ltd.	7,900		138,750
Common Stocks - continued
	Shares		Value
South Africa - continued
Exxaro Resources Ltd.	22,982		$ 346,527
Gold Fields Ltd. sponsored ADR	23,500		333,700
MTN Group Ltd.	16,800		313,575
Murray & Roberts Holdings Ltd.	10,000		148,669
TOTAL SOUTH AFRICA			1,578,471
Spain - 3.2%
Banco Santander SA	51,600		1,111,464
Grifols SA	11,896		267,533
Grupo Acciona SA	800		253,177
Telefonica SA	24,000		780,720
TOTAL SPAIN			2,412,894
Sweden - 1.0%
Alfa Laval AB	4,100		230,814
Swedish Match Co.	10,000		238,950
TeliaSonera AB	29,000		271,351
TOTAL SWEDEN			741,115
Switzerland - 7.5%
ABB Ltd. (Reg.)	18,552		533,986
Actelion Ltd. (Reg.) (a)	32,909		1,511,439
Roche Holding AG (participation certificate)	3,956		675,685
Swiss Life Holding	963		240,474
Syngenta AG (Switzerland)	1,432		362,726
The Swatch Group AG (Reg.)	6,805		401,407
UBS AG (NY Shares)	25,500		1,173,000
Zurich Financial Services AG (Reg.)	2,413		707,952
TOTAL SWITZERLAND			5,606,669
Taiwan - 0.7%
Acer, Inc.	123,000		240,842
AU Optronics Corp. sponsored ADR	13,200		253,440
Taiwan Mobile Co. Ltd.	9,000		12,072
TOTAL TAIWAN			506,354
Turkey - 0.8%
Tupras-Turkiye Petrol Rafinerileri AS	10,000		293,299
Turkiye Garanti Bankasi AS	29,600		266,153
TOTAL TURKEY			559,452
United Kingdom - 12.3%
BAE Systems PLC	39,800		393,802
BG Group PLC	21,500		491,275
British American Tobacco PLC	14,100		553,848
Cairn Energy PLC (a)	1,900		116,044
International Power PLC	27,300		251,843
Lloyds TSB Group PLC	49,800		467,021
Man Group plc	30,050		339,721
Marks & Spencer Group PLC	23,800		264,807
Meggitt PLC	43,800		289,572
Reckitt Benckiser Group PLC	5,200		301,063
Rio Tinto PLC sponsored ADR	2,300		965,770

	Shares		Value
Royal Dutch Shell PLC Class A	30,600		$ 1,283,438
Shire PLC	14,000		321,767
Sibir Energy PLC	8,200		93,680
Standard Chartered PLC	19,300		707,104
Tesco PLC	50,200		476,009
Vedanta Resources PLC	5,400		219,515
Vodafone Group PLC sponsored ADR	31,100		1,160,652
Xstrata PLC	5,900		416,146
TOTAL UNITED KINGDOM			9,113,077
United States of America - 2.5%
AbitibiBowater, Inc. (d)	36,661		755,583
Apple, Inc. (a)	1,300		257,504
Synthes, Inc.	6,536		810,872
TOTAL UNITED STATES OF AMERICA			1,823,959
TOTAL COMMON STOCKS (Cost $69,597,475)		69,918,631
Nonconvertible Preferred Stocks - 0.4%

Italy - 0.4%
Istituto Finanziario Industriale SpA (IFI) (a) (Cost $379,929)	9,600		326,439
Money Market Funds - 7.0%

Fidelity Cash Central Fund, 4.58% (b)	4,020,226		4,020,226
Fidelity Securities Lending Cash Central Fund, 4.65% (b)(c)	1,199,356		1,199,356
TOTAL MONEY MARKET FUNDS (Cost $5,219,582)		5,219,582
TOTAL INVESTMENT PORTFOLIO - 101.4% (Cost $75,196,986)			75,464,652
NET OTHER ASSETS - (1.4)%			(1,063,363)
NET ASSETS - 100%		$ 74,401,289

Legend

(a) Non-income producing

(d) Security or a portion of the security is on loan at period end.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 376,533
Fidelity Securities Lending Cash Central Fund	35,702
Total	$ 412,235

Income Tax Information

The fund intends to elect to defer to its fiscal year ending December 31, 2008 approximately $4,337,018 of losses recognized during the period November 1, 2007 to December 31, 2007.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007
Assets
Investment in securities, at value (including securities loaned of $1,149,708) - See accompanying schedule: Unaffiliated issuers (cost $69,977,404)	$ 70,245,070
Fidelity Central Funds (cost $5,219,582)	5,219,582
Total Investments (cost $75,196,986)		$ 75,464,652
Cash		570,385
Foreign currency held at value (cost $471,273)		471,273
Receivable for investments sold		13,450,758
Receivable for fund shares sold		5,210
Dividends receivable		53,102
Distributions receivable from Fidelity Central Funds		34,769
Prepaid expenses		250
Other receivables		6,197
Total assets		90,056,596

Liabilities
Payable for investments purchased	$ 14,179,337
Payable for fund shares redeemed	159,756
Accrued management fee	44,896
Distribution fees payable	299
Other affiliated payables	11,145
Other payables and accrued expenses	60,518
Collateral on securities loaned, at value	1,199,356
Total liabilities		15,655,307

Net Assets		$ 74,401,289
Net Assets consist of:
Paid in capital		$ 78,660,817
Distributions in excess of net investment income		(2,078)
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(4,507,039)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		249,589
Net Assets		$ 74,401,289

Statement of Assets and Liabilities - continued

	December 31, 2007
Initial Class: Net Asset Value, offering price and redemption price per share ($1,409,020 ÷ 123,197 shares)		$ 11.44

Service Class: Net Asset Value, offering price and redemption price per share ($414,251 ÷ 36,237 shares)		$ 11.43

Service Class 2: Net Asset Value, offering price and redemption price per share ($549,771 ÷ 48,108 shares)		$ 11.43

Initial Class R: Net Asset Value, offering price and redemption price per share ($32,344,785 ÷ 2,827,355 shares)		$ 11.44

Service Class R: Net Asset Value, offering price and redemption price per share ($414,251 ÷ 36,237 shares)		$ 11.43

Service Class 2R: Net Asset Value, offering price and redemption price per share ($549,827 ÷ 48,111 shares)		$ 11.43

Investor Class R: Net Asset Value, offering price and redemption price per share ($38,719,384 ÷ 3,393,838 shares)		$ 11.41

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

	Year ended December 31, 2007
Investment Income
Dividends		$ 833,047
Special dividends		94,302
Interest		19,005
Income from Fidelity Central Funds		412,235
		1,358,589
Less foreign taxes withheld		(89,266)
Total income		1,269,323

Expenses
Management fee	$ 475,959
Transfer agent fees	92,264
Distribution fees	3,706
Accounting and security lending fees	35,326
Custodian fees and expenses	93,458
Independent trustees' compensation	225
Audit	70,907
Legal	7,299
Miscellaneous	10,195
Total expenses before reductions	789,339
Expense reductions	(27,888)	761,451
Net investment income (loss)		507,872
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers (net of foreign taxes of $42,298)	4,821,806
Foreign currency transactions	290,818
Total net realized gain (loss)		5,112,624
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $2,381)	(4,336,014)
Assets and liabilities in foreign currencies	(16,820)
Total change in net unrealized appreciation (depreciation)		(4,352,834)
Net gain (loss)		759,790
Net increase (decrease) in net assets resulting from operations		$ 1,267,662

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 507,872	$ 325,722
Net realized gain (loss)	5,112,624	1,311,750
Change in net unrealized appreciation (depreciation)	(4,352,834)	3,055,530
Net increase (decrease) in net assets resulting from operations	1,267,662	4,693,002
Distributions to shareholders from net investment income	(488,571)	(324,160)
Distributions to shareholders from net realized gain	(9,900,180)	(1,106,887)
Total distributions	(10,388,751)	(1,431,047)
Share transactions - net increase (decrease)	38,585,498	20,509,608
Redemption fees	18,995	15,654
Total increase (decrease) in net assets	29,483,404	23,787,217

Net Assets
Beginning of period	44,917,885	21,130,668
End of period (including distributions in excess of net investment income of $2,078 and undistributed net investment income of $1,561, respectively)	$ 74,401,289	$ 44,917,885

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.68	$ 11.46	$ 10.24	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.11 ^H	.11	.06	-
Net realized and unrealized gain (loss)	.53	1.54	1.21	.24
Total from investment operations	.64	1.65	1.27	.24
Distributions from net investment income	(.09)	(.10)	(.02)	-
Distributions from net realized gain	(1.79)	(.34)	(.02)	-
Total distributions	(1.88)	(.43) ^M	(.05)^L	-
Redemption fees added to paid in capital^E	- ^K	- ^K	- ^K	-
Net asset value, end of period	$ 11.44	$ 12.68	$ 11.46	$ 10.24
Total Return^B,C,D	5.17%	14.49%	12.37%	2.40%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.20%	1.80%	3.55%	43.27% ^A
Expenses net of fee waivers, if any	1.10%	1.10%	1.10%	1.10% ^A
Expenses net of all reductions	1.07%	1.00%	.91%	.92% ^A
Net investment income (loss)	.82% ^H	.95%	.53%	.80% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,409	$ 1,357	$ 9,367	$ 307
Portfolio turnover rate ^G	224%	185%	176%	52% ^A

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .68%. ^I For the period December 22, 2004 (commencement of operations) to December 31, 2004. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.05 per share is comprised of distributions from net investment income of $.022 and distributions from net realized gain of $.023 per share. ^M Total distributions of $.43 per share is comprised of distributions from net investment income of $.095 and distributions from net realized gain of $.335 per share.

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005	2004 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.67	$ 11.46	$ 10.24	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.10^H	.10	.10	-^K
Net realized and unrealized gain (loss)	.53	1.53	1.16	.24
Total from investment operations	.63	1.63	1.26	.24
Distributions from net investment income	(.08)	(.08)	(.01)	-
Distributions from net realized gain	(1.79)	(.34)	(.02)	-
Total distributions	(1.87)	(.42)^M	(.04)^L	-
Redemption fees added to paid in capital^E	-^K	-^K	-^K	-
Net asset value, end of period	$ 11.43	$ 12.67	$ 11.46	$ 10.24
Total Return^B,C,D	5.06%	14.30%	12.27%	2.40%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.20%	1.62%	4.35%	43.36% ^A
Expenses net of fee waivers, if any	1.20%	1.20%	1.20%	1.20% ^A
Expenses net of all reductions	1.16%	1.10%	1.01%	1.01% ^A
Net investment income (loss)	.72% ^H	.85%	.98%	.71% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 414	$ 394	$ 345	$ 307
Portfolio turnover rate ^G	224%	185%	176%	52% ^A

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .58%. ^I For the period December 22, 2004 (commencement of operations) to December 31, 2004. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.04 per share is comprised of distributions from net investment income of $.012 and distributions from net realized gain of $.023 per share. ^M Total distributions of $.42 per share is comprised of distributions from net investment income of $.084 and distributions from net realized gain of $.335 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005	2004 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.67	$ 11.46	$ 10.24	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.08 ^H	.08	.09	-
Net realized and unrealized gain (loss)	.53	1.53	1.15	.24
Total from investment operations	.61	1.61	1.24	.24
Distributions from net investment income	(.06)	(.07)	-	-
Distributions from net realized gain	(1.79)	(.34)	(.02)	-
Total distributions	(1.85)	(.40)^M	(.02)^L	-
Redemption fees added to paid in capital ^E	-^K	-^K	-^K	-
Net asset value, end of period	$ 11.43	$ 12.67	$ 11.46	$ 10.24
Total Return^B,C,D	4.89%	14.14%	12.12%	2.40%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.41%	1.77%	4.50%	43.51% ^A
Expenses net of fee waivers, if any	1.35%	1.35%	1.35%	1.35% ^A
Expenses net of all reductions	1.32%	1.25%	1.16%	1.17% ^A
Net investment income (loss)	.57% ^H	.70%	.83%	.55% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 550	$ 524	$ 459	$ 410
Portfolio turnover rate^G	224%	185%	176%	52% ^A

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .43%. ^I For the period December 22, 2004 (commencement of operations) to December 31, 2004 ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.02 per share is comprised of distributions from net investment income of $.00 and distributions from net realized gain of $.02 per share. ^M Total distributions of $.40 per share is comprised of distributions from net investment income of $.066 and distributions from net realized gain of $.335 per share.

Financial Highlights - Initial Class R

Years ended December 31,	2007	2006	2005	2004 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.68	$ 11.46	$ 10.24	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.11 ^H	.11	.11	-^K
Net realized and unrealized gain (loss)	.53	1.54	1.16	.24
Total from investment operations	.64	1.65	1.27	.24
Distributions from net investment income	(.09)	(.10)	(.02)	-
Distributions from net realized gain	(1.79)	(.34)	(.02)	-
Total distributions	(1.88)	(.43)^M	(.05)^L	-
Redemption fees added to paid in capital ^E	-^K	-^K	-^K	-
Net asset value, end of period	$ 11.44	$ 12.68	$ 11.46	$ 10.24
Total Return^B,C,D	5.17%	14.50%	12.37%	2.40%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.11%	1.46%	4.25%	43.27% ^A
Expenses net of fee waivers, if any	1.10%	1.10%	1.10%	1.10% ^A
Expenses net of all reductions	1.06%	1.00%	.91%	.92% ^A
Net investment income (loss)	.82% ^H	.95%	1.08%	.80% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 32,345	$ 17,219	$ 345	$ 307
Portfolio turnover rate ^G	224%	185%	176%	52% ^A

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .68%. ^I For the period December 22, 2004 (commencement of operations) to December 31, 2004. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.05 per share is comprised of distributions from net investment income of $.022 and distributions from net realized gain of $.023 per share. ^M Total distributions of $.43 per share is comprised of distributions from net investment income of $.096 and distributions from net realized gain of $.335 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Service Class R

Years ended December 31,	2007	2006	2005	2004 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.67	$ 11.46	$ 10.24	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.10 ^H	.10	.10	- ^K
Net realized and unrealized gain (loss)	.53	1.53	1.16	.24
Total from investment operations	.63	1.63	1.26	.24
Distributions from net investment income	(.08)	(.08)	(.01)	-
Distributions from net realized gain	(1.79)	(.34)	(.02)	-
Total distributions	(1.87)	(.42)^M	(.04)^L	-
Redemption fees added to paid in capital ^E	-^K	-^K	-^K	-
Net asset value, end of period	$ 11.43	$ 12.67	$ 11.46	$ 10.24
Total Return^B,C,D	5.06%	14.30%	12.27%	2.40%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.20%	1.62%	4.35%	43.36% ^A
Expenses net of fee waivers, if any	1.20%	1.20%	1.20%	1.20% ^A
Expenses net of all reductions	1.16%	1.10%	1.01%	1.01% ^A
Net investment income (loss)	.72% ^H	.85%	.98%	.71% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 414	$ 394	$ 345	$ 307
Portfolio turnover rate ^G	224%	185%	176%	52% ^A

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .58%. ^I For the period December 22, 2004 (commencement of operations) to December 31, 2004. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.04 per share is comprised of distributions from net investment income of $.012 and distributions from net realized gain of $.023 per share. ^M Total distributions of $.42 per share is comprised of distributions from net investment income of $.084 and distributions from net realized gain of $.335 per share.

Financial Highlights - Service Class 2R

Years ended December 31,	2007	2006	2005	2004 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.67	$ 11.46	$ 10.24	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.08 ^H	.08	.09	- ^K
Net realized and unrealized gain (loss)	.53	1.53	1.15	.24
Total from investment operations	.61	1.61	1.24	.24
Distributions from net investment income	(.06)	(.07)	-	-
Distributions from net realized gain	(1.79)	(.34)	(.02)	-
Total distributions	(1.85)	(.40)^M	(.02)^L	-
Redemption fees added to paid in capital ^E	-^K	-^K	-^K	-
Net asset value, end of period	$ 11.43	$ 12.67	$ 11.46	$ 10.24
Total Return^B,C,D	4.90%	14.14%	12.12%	2.40%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.35%	1.77%	4.50%	43.51% ^A
Expenses net of fee waivers, if any	1.35%	1.35%	1.35%	1.35% ^A
Expenses net of all reductions	1.31%	1.25%	1.16%	1.17% ^A
Net investment income (loss)	.57% ^H	.70%	.83%	.55% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 550	$ 524	$ 459	$ 410
Portfolio turnover rate ^G	224%	185%	176%	52% ^A

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .43%. ^I For the period December 22, 2004 (commencement of operations) to December 31, 2004. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.02 per share is comprised of distributions from net investment income of $.00 and distributions from net realized gain of $.02 per share. ^M Total distributions of $.40 per share is comprised of distributions from net investment income of $.066 and distributions from net realized gain of $.335 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Investor Class R

Years ended December 31,	2007	2006	2005 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.65	$ 11.46	$ 10.32
Income from Investment Operations
Net investment income (loss) ^E	.09 ^H	.09	.01
Net realized and unrealized gain (loss)	.54	1.53	1.16
Total from investment operations	.63	1.62	1.17
Distributions from net investment income	(.08)	(.10)	(.02)
Distributions from net realized gain	(1.79)	(.34)	(.01)
Total distributions	(1.87)	(.43)^M	(.03)^L
Redemption fees added to paid in capital ^E,K	-	-	-
Net asset value, end of period	$ 11.41	$ 12.65	$ 11.46
Total Return^B,C,D	5.07%	14.23%	11.39%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.22%	1.61%	2.19% ^A
Expenses net of fee waivers, if any	1.22%	1.25%	1.25% ^A
Expenses net of all reductions	1.18%	1.15%	1.06% ^A
Net investment income (loss)	.71% ^H	.80%	.31% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 38,719	$ 24,505	$ 9,810
Portfolio turnover rate ^G	224%	185%	176%

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .57%. ^I For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.03 per share is comprised of distributions from net investment income of $.022 and distributions from net realized gain of $.013 per share. ^M Total distributions of $.43 per share is comprised of distributions from net investment income of $.095 and distributions from net realized gain of $.335 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP International Capital Appreciation Portfolio (the Fund) is a fund of Variable Insurance Products Fund IV (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, Initial Class R shares, Service Class R shares, Service Class 2R shares, and Investor Class R shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Security Valuation. Investments are valued and net asset value (NAV) per share is calculated (NAV calculation) as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Wherever possible, the Fund uses independent pricing services approved by the Board of Trustees to value its investments. 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 an independent pricing service on the primary market or exchange on which they are traded. 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. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48) on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, passive foreign investment companies (PFIC), market discount and losses deferred due to wash sales and excise tax regulations.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 3,181,295
Unrealized depreciation	(3,410,440)
Net unrealized appreciation (depreciation)	(229,145)
Undistributed ordinary income	289,197
Undistributed long term capital gain	17,432

Cost for federal income tax purposes	$ 75,693,797

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 9,196,187	$ 779,358
Long-term Capital Gains	1,192,564	651,689
Total	$ 10,388,751	$ 1,431,047

Trading (Redemption) Fees. Initial Class R shares, Service Class R shares, Service Class 2 R shares and Investor Class R shares held less than 60 days are subject to a redemption fee equal to 1% of the proceeds of the redeemed shares. All redemption fees, including any estimated redemption fees paid by FMR, are retained by the Fund and accounted for as an addition to paid in capital.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $159,574,551 and $130,407,995, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .71% of the Fund's average net assets.

Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class' and Service Class R's average net assets and .25% of Service Class 2's and Service Class 2R's average net assets.

For the period, each class paid FDC the following amounts, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services:

Service Class	$ 422
Service Class 2	1,454
Service Class R	422
Service Class 2 R	1,408
	$ 3,706

Annual Report

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class with the exception of Investor Class pays a transfer agent fee, excluding out of pocket expenses, equal to an annual rate of .07% of average net assets. Investor Class R pays a monthly asset-based transfer agent fee of .18% of average net assets. The total transfer agent fees paid by each class to FIIOC, including out of pocket expenses, were as follows:

Initial Class	$ 2,238
Service Class	279
Service Class 2	768
Initial Class R	22,074
Service Class R	279
Service Class 2R	371
Investor Class R	66,255
	$ 92,264

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to.15% of average net assets.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $118 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

9. Expense Reductions.

Annual Report

Notes to Financial Statements - continued

9. Expense Reductions - continued

The following classes were in reimbursement during the period:

	Expense Limitations	Reimbursement from adviser
Initial Class	1.10%	$ 1,250
Service Class 2	1.35%	325
Initial Class R	1.10%	849
		$ 2,424

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $25,157 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $307.

10. Other.

At the end of the period, FMR or its affiliates were the owners of record of 99% of the total outstanding shares of the fund.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ 9,981	$ 9,863
Service Class	2,513	2,538
Service Class 2	2,465	2,655
Initial Class R	232,391	126,136
Service Class R	2,513	2,538
Service Class 2R	2,506	2,655
Investor Class R	236,202	177,775
Total	$ 488,571	$ 324,160
From net realized gain
Initial Class	$ 188,994	$ 82,024
Service Class	56,040	10,116
Service Class 2	75,317	13,470
Initial Class R	4,287,821	382,391
Service Class R	56,040	10,116
Service Class 2R	74,517	13,470
Investor Class R	5,161,451	595,300
Total	$ 9,900,180	$ 1,106,887

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	57,013	551,473	$ 797,148	$ 6,530,542
Reinvestment of distributions	17,391	7,645	198,975	91,887
Shares redeemed	(58,226)	(1,269,330)	(765,491)	(14,879,275)
Net increase (decrease)	16,178	(710,212)	$ 230,632	$ (8,256,846)

Annual Report

12. Share Transactions - continued

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Service Class
Reinvestment of distributions	5,121	1,019	58,553	12,654
Net increase (decrease)	5,121	1,019	$ 58,553	$ 12,654
Service Class 2
Shares sold	6,394	-	$ 84,142	$ -
Reinvestment of distributions	6,793	1,300	77,782	16,125
Shares redeemed	(6,455)	-	(88,305)	-
Net increase (decrease)	6,732	1,300	$ 73,619	$ 16,125
Initial Class R
Shares sold	1,656,294	1,743,214	$ 22,491,075	$ 20,660,150
Reinvestment of distributions	396,233	40,625	4,520,212	508,526
Shares redeemed	(583,136)	(455,998)	(7,820,250)	(5,371,545)
Net increase (decrease)	1,469,391	1,327,841	$ 19,191,037	$ 15,797,131
Service Class R
Reinvestment of distributions	5,121	1,019	58,553	12,654
Net increase (decrease)	5,121	1,019	$ 58,553	$ 12,654
Service Class 2R
Reinvestment of distributions	6,735	1,300	77,024	16,125
Net increase (decrease)	6,735	1,300	$ 77,024	$ 16,125
Investor Class R
Shares sold	1,585,891	1,447,148	$ 21,572,358	$ 17,211,509
Reinvestment of distributions	473,946	62,199	5,397,653	773,075
Shares redeemed	(602,827)	(428,813)	(8,073,931)	(5,072,819)
Net increase (decrease)	1,457,010	1,080,534	$ 18,896,080	$ 12,911,765

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP International Capital Appreciation Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP International Capital Appreciation Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP International Capital Appreciation Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ Pricewaterhouse Coopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 22, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006- present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000- 2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987- 1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002- present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006- present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP International Capital Appreciation. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Walter C. Donovan (45)
	Year of Election or Appointment: 2007 Vice President of VIP International Capital Appreciation. Mr. Donovan also serves as Vice President of Fidelity's Equity Funds (2007-present). Mr. Donovan also serves as Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present). Previously, Mr. Donovan served as Vice President of Fidelity's High Income Funds (2005-2007), Fixed-Income Funds (2005-2006), certain Asset Allocation Funds (2005-2006), certain Balanced Funds (2005-2006), and as Vice President and Director of Fidelity's International Equity Trading group (1998-2005).
Eric M. Wetlaufer (45)
	Year of Election or Appointment: 2006 Vice President of VIP International Capital Appreciation. Mr. Wetlaufer also serves as Vice President of certain International Equity Funds (2006-present). Mr. Wetlaufer is Senior Vice President of FMR (2006-present) and FMR Co., Inc. (2006-present), and President and Director of Fidelity Management & Research (U.K.) Inc. (2006-present) and Fidelity Research & Analysis Company (2006-present). Before joining Fidelity Investments in 2005, Mr. Wetlaufer was a partner in Oxhead Capital Management (2004-2005). Previously, Mr. Wetlaufer served as a Chief Investment Officer of Putnam Investments (1997-2003).
Eric D. Roiter (59)
	Year of Election or Appointment: 2004 Secretary of VIP International Capital Appreciation. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP International Capital Appreciation. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP International Capital Appreciation. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP International Capital Appreciation. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP International Capital Appreciation. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005- present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP International Capital Appreciation. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP International Capital Appreciation. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP International Capital Appreciation. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003- 2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP International Capital Appreciation. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP International Capital Appreciation. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP International Capital Appreciation. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP International Capital Appreciation Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

	Pay Date	Record Date	Capital Gains
Initial Class	02/08/08	02/08/08	$0.055
Service Class	02/08/08	02/08/08	$0.055
Service Class 2	02/08/08	02/08/08	$0.055

The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2007, $1,162,866, or, if subsequently determined to be different, the net capital gain of such year.

The amounts per share which represent income derived from sources within, and taxes paid to, forrign countries or possessions of the United States are as follows:

	Pay Date	Income	Taxes
Initial Class	12/21/07	$0.159	$0.023
Service Class	12/21/07	$0.157	$0.023
Service Class 2	12/21/07	$0.155	$0.023

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP International Capital Appreciation Portfolio

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's portfolio managers and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

Investment Performance and Compliance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a custom peer group of mutual funds deemed appropriate by the Board. Because the fund had been in existence less than three calendar years, the following chart considered by the Board shows, for the one-year period ended December 31, 2006, the total returns of Initial Class R and Service Class 2 of the fund, the total returns of a broad-based securities market index ("benchmark"), and a range of total returns of a custom peer group of mutual funds defined by FMR based on categories assigned by Morningstar, Inc. The returns of Initial Class R and Service Class 2 show the performance of the highest and lowest performing classes, respectively. The box within the chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below the chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated. The fund's custom peer group, defined by FMR, is a peer group that FMR believes provides a more meaningful performance comparison than the peer group assigned by Morningstar, Inc. Morningstar, Inc. assigns mutual funds to categories based on their investment styles as measured by their underlying portfolio holdings.

VIP International Capital Appreciation Portfolio

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Initial Class R of the fund was in the fourth quartile for the period shown. The Board also stated that the investment performance of the fund was lower than its benchmark for the period shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes. The Board stated that it is difficult to evaluate in any comprehensive fashion the performance of the fund, in light of its relatively recent commencement of operations.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 12% means that 88% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

VIP International Capital Appreciation Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each of Initial Class and Initial Class R ranked below its competitive median for 2006, and the total expenses of each of Investor Class R, Service Class, Service Class 2, Service Class R and Service Class 2 R ranked above its competitive median for 2006. The Board considered that the total expenses of Investor Class R were above the median primarily due to its higher transfer agent fee. The Board noted that the fund offers multiple classes, each of which has a different 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity International Investment Advisors
Fidelity International Investment Advisors (U.K.) Limited

Fidelity Investments Japan Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Shareholder Servicing Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

Brown Brothers Harriman & Co.
Boston, MA

VIPCAP-ANN-0208
1.811843.103

Fidelity® Variable Insurance Products:
International Capital Appreciation Portfolio - Class R

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of a class' 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. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. Performance numbers are net of all underlying fund operating expenses, but do not include any insurance charges imposed by your insurance company's separate account. If performance information included the effect of these additional charges, the total returns would be lower. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 Year	Life of Fund^A
VIP International Capital Appreciation - Initial Class	5.17%	11.38%
VIP International Capital Appreciation - Service Class	5.06%	11.25%
VIP International Capital Appreciation - Service Class 2	4.89%	11.09%
VIP International Capital Appreciation - Initial Class R	5.17%	11.38%
VIP International Capital Appreciation - Service Class R	5.06%	11.25%
VIP International Capital Appreciation - Service Class 2R	4.90%	11.09%
VIP International Capital Appreciation - Investor Class R^B	5.07%	11.26%

^AFrom December 22, 2004.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP International Capital Appreciation Portfolio - Initial Class R on December 22, 2004, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Morgan Stanley Capital International^SM All Country World (MSCI® ACWI) ex USA Index performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Sammy Simnegar, who will become Portfolio Manager of VIP International Capital Appreciation Portfolio on
January 1, 2008

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 941.40	$ 5.38
Hypothetical ^A	$ 1,000.00	$ 1,019.66	$ 5.60
Service Class
Actual	$ 1,000.00	$ 941.00	$ 5.87
Hypothetical ^A	$ 1,000.00	$ 1,019.16	$ 6.11
Service Class 2
Actual	$ 1,000.00	$ 940.20	$ 6.60
Hypothetical ^A	$ 1,000.00	$ 1,018.40	$ 6.87
Initial Class R
Actual	$ 1,000.00	$ 941.40	$ 5.38
Hypothetical ^A	$ 1,000.00	$ 1,019.66	$ 5.60
Service Class R
Actual	$ 1,000.00	$ 941.00	$ 5.87
Hypothetical ^A	$ 1,000.00	$ 1,019.16	$ 6.11
Service Class 2R
Actual	$ 1,000.00	$ 940.30	$ 6.60
Hypothetical ^A	$ 1,000.00	$ 1,018.40	$ 6.87
Investor Class R
Actual	$ 1,000.00	$ 940.90	$ 5.92
Hypothetical ^A	$ 1,000.00	$ 1,019.11	$ 6.16

^A 5% return per year before expenses

Annual Report

Shareholder Expense Example - continued

	Annualized Expense Ratio
Initial Class	1.10%
Service Class	1.20%
Service Class 2	1.35%
Initial Class R	1.10%
Service Class R	1.20%
Service Class 2R	1.35%
Investor Class R	1.21%

Annual Report

Investment Changes

Geographic Diversification (% of fund's net assets)
As of December 31, 2007
	Japan	18.0%
	United Kingdom	12.3%
	Germany	11.0%
	United States of America	8.1%
	Switzerland	7.5%
	Canada	6.5%
	France	4.0%
	Spain	3.2%
	Cayman Islands	2.6%
	Other	26.8%

Percentages are adjusted for the effect of futures contracts, if applicable.


As of June 30, 2007
	United States of America	20.6%
	Japan	20.6%
	Canada	19.8%
	Hong Kong	5.7%
	Netherlands	4.3%
	South Africa	4.0%
	Germany	3.9%
	Switzerland	2.7%
	Argentina	2.3%
	Other	16.1%

Percentages are adjusted for the effect of futures contracts, if applicable.

Asset Allocation
	% of fund's net assets	% of fund's net assets 6 months ago
Stocks	94.4	86.1
Bonds	0.0	2.9
Short-Term Investments and Net Other Assets	5.6	11.0
Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
E.ON AG (Germany, Electric Utilities)	3.3	2.6
Shinsei Bank Ltd. (Japan, Commercial Banks)	2.8	2.2
Actelion Ltd. (Reg.) (Switzerland, Biotechnology)	2.0	1.7
Saskatchewan Wheat Pool, Inc. (Canada, Food Products)	2.0	2.7
Takeda Pharmaceutical Co. Ltd. (Japan, Pharmaceuticals)	1.9	3.8
SFCG Co. Ltd. (Japan, Consumer Finance)	1.8	1.5
Royal Dutch Shell PLC Class A (United Kingdom, Oil, Gas & Consumable Fuels)	1.7	0.0
UBS AG (NY Shares) (Switzerland, Capital Markets)	1.6	0.0
Vodafone Group PLC sponsored ADR (United Kingdom, Wireless Telecommunication Services)	1.6	0.0
Banco Santander SA (Spain, Commercial Banks)	1.5	0.0
	20.2
Market Sectors as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Financials	24.9	14.9
Materials	11.4	20.0
Health Care	8.6	10.0
Energy	8.6	8.9
Industrials	8.0	9.7
Consumer Discretionary	7.5	6.8
Consumer Staples	7.1	10.7
Telecommunication Services	6.7	1.7
Information Technology	6.1	0.8
Utilities	5.5	2.6

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 94.0%
	Shares		Value
Argentina - 0.3%
Inversiones y Representaciones SA sponsored GDR (a)	13,200		$ 192,192
Australia - 1.9%
ABB Grain Ltd.	279		2,065
Babcock & Brown Ltd.	9,935		236,261
Commonwealth Bank of Australia	7,536		390,106
CSL Ltd.	8,196		261,024
Leighton Holdings Ltd.	4,541		243,421
Macquarie Group Ltd.	4,045		269,978
Newcrest Mining Ltd.	1		29
TOTAL AUSTRALIA			1,402,884
Austria - 0.3%
voestalpine AG	3,300		238,152
Brazil - 2.2%
Companhia Vale do Rio Doce (PN-A) sponsored ADR	16,500		461,670
MRV Engenharia e Participacoes SA	8,500		181,699
Petroleo Brasileiro SA - Petrobras (PN) sponsored ADR (non-vtg.)	5,400		519,588
Redecard SA	11,000		179,213
Uniao de Bancos Brasileiros SA (Unibanco) GDR	2,200		307,208
TOTAL BRAZIL			1,649,378
Canada - 6.5%
Addax Petroleum, Inc.	8,000		345,831
Canadian Natural Resources Ltd.	4,400		321,425
Canadian Western Bank, Edmonton	8,600		271,360
Canfor Corp.	13,400		117,741
European Goldfields Ltd. (a)	48,700		268,609
IAMGOLD Corp.	109,900		894,863
Research In Motion Ltd. (a)	3,000		340,200
Saputo, Inc.	7,900		237,187
Saskatchewan Wheat Pool, Inc. (a)(e)	109,800		1,473,136
Suncor Energy, Inc.	3,300		358,415
Uranium One, Inc. (a)	19,400		172,414
TOTAL CANADA			4,801,181
Cayman Islands - 2.6%
Agile Property Holdings Ltd.	124,000		225,828
Apex Silver Mines Ltd. (a)	22,000		335,280
Chaoda Modern Agriculture (Holdings) Ltd.	214,000		193,769
Hutchison Telecommunications International Ltd.	634,000		952,980
Lee & Man Paper Manufacturing Ltd.	50,400		221,390
TOTAL CAYMAN ISLANDS			1,929,247
China - 0.9%
China Construction Bank Corp. (H Shares)	379,000		321,298

	Shares		Value
China Cosco Holdings Co. Ltd. (H Shares)	35,500		$ 98,117
China Resources Land Ltd.	126,000		278,596
TOTAL CHINA			698,011
Cyprus - 0.4%
Marfin Popular Bank Public Co.	19,700		261,627
Czech Republic - 1.0%
Ceske Energeticke Zavody AS	3,400		254,818
Philip Morris CR AS	1,150		494,539
TOTAL CZECH REPUBLIC			749,357
Denmark - 0.4%
Vestas Wind Systems AS (a)	2,400		259,284
Finland - 1.3%
Nokia Corp. sponsored ADR	25,700		986,623
France - 4.0%
AXA SA	12,900		512,259
Bouygues SA	3,200		266,195
Electricite de France	2,100		249,715
Eutelsat Communications	2,200		65,337
Renault SA	2,600		368,099
Sanofi-Aventis sponsored ADR	13,571		617,888
Suez SA (France)	6,600		452,100
Vivendi	8,960		410,332
TOTAL FRANCE			2,941,925
Germany - 11.0%
Allianz AG (Reg.)	4,000		850,000
Bayer AG	4,800		436,800
Beiersdorf AG	2,800		216,575
DaimlerChrysler AG	7,900		755,477
Deutsche Boerse AG	1,600		316,982
E.ON AG	11,500		2,451,584
Fresenius AG	2,500		204,316
K&S AG	1,000		237,517
Lanxess AG	9,200		451,130
MAN AG	1,600		265,728
RWE AG	3,100		434,317
Siemens AG sponsored ADR	5,700		896,952
SolarWorld AG	3,800		231,534
United Internet AG	9,000		218,691
Wacker Chemie AG	800		230,819
TOTAL GERMANY			8,198,422
Greece - 1.0%
Coca-Cola Hellenic Bottling Co. SA (Bearer)	6,600		285,108
National Bank of Greece SA	5,350		366,810
Public Power Corp. of Greece	2,300		120,838
TOTAL GREECE			772,756
Hong Kong - 1.1%
CNPC (Hong Kong) Ltd.	480,000		307,191
Common Stocks - continued
	Shares		Value
Hong Kong - continued
Hong Kong Exchanges & Clearing Ltd.	10,500		$ 297,880
Li & Fung Ltd.	56,000		226,238
TOTAL HONG KONG			831,309
Hungary - 0.3%
OTP Bank Ltd.	4,900		248,434
India - 1.3%
Bharti Airtel Ltd. (a)	7,050		178,267
Housing Development Finance Corp. Ltd.	2,666		194,698
Reliance Industries Ltd.	3,538		258,825
Satyam Computer Services Ltd.	16,095		184,620
Sun Pharmaceutical Industries Ltd.	5,894		180,051
TOTAL INDIA			996,461
Israel - 1.1%
Check Point Software Technologies Ltd. (a)	12,200		267,912
Israel Chemicals Ltd.	19,600		249,117
Partner Communications Co. Ltd. ADR	13,100		289,248
TOTAL ISRAEL			806,277
Italy - 0.4%
Fiat SpA	10,200		263,406
Japan - 18.0%
Aioi Insurance Co. Ltd.	21,000		99,295
Canon, Inc.	11,300		517,879
Denso Corp.	5,000		203,836
Ibiden Co. Ltd.	2,800		193,964
Japan Tobacco, Inc.	37		219,164
Konica Minolta Holdings, Inc.	10,500		184,406
Kubota Corp.	35,000		235,956
Makita Corp.	4,100		171,716
Marubeni Corp.	15,000		105,294
Millea Holdings, Inc.	28,163		937,828
Mitsubishi Corp.	5,500		149,123
Mitsubishi Electric Corp.	20,000		207,515
Mitsubishi Estate Co. Ltd.	10,000		238,677
Mitsui & Co. Ltd.	7,000		146,441
Mitsui Fudosan Co. Ltd.	10,000		216,051
Mitsui Marine & Fire Insurance Co. Ltd.	90,000		872,956
NGK Insulators Ltd.	7,000		188,016
Nikon Corp.	5,000		170,397
Nintendo Co. Ltd.	500		296,200
Nissin Healthcare Food Service Co.	5,200		59,442
ORIX Corp.	1,210		203,872
Parco Co. Ltd.	54,300		675,485
Seino Holdings Co. Ltd.	24,200		163,128
SFCG Co. Ltd.	9,460		1,308,531
Shinsei Bank Ltd.	582,000		2,116,733
Sumitomo Metal Mining Co. Ltd.	11,000		186,305
Sumitomo Mitsui Financial Group, Inc.	59		437,399
Takeda Pharmaceutical Co. Ltd.	24,000		1,404,615

	Shares		Value
Terumo Corp.	3,300		$ 172,347
Tokyo Steel Manufacturing Co. Ltd.	12,400		137,356
Toyota Motor Corp. sponsored ADR	9,100		966,147
USS Co. Ltd.	3,820		237,662
TOTAL JAPAN			13,423,736
Korea (South) - 1.6%
Daewoo Shipbuilding & Marine Engineering Co. Ltd.	1,720		94,810
Hyundai Heavy Industries Co. Ltd.	260		122,904
Kookmin Bank	2,820		207,862
KT&G Corp.	2,110		179,646
LG.Philips LCD Co. Ltd. sponsored ADR (a)	15,500		402,690
SK Energy Co. Ltd.	1,010		195,289
TOTAL KOREA (SOUTH)			1,203,201
Luxembourg - 0.6%
Evraz Group SA GDR	2,700		209,250
Oriflame Cosmetics SA unit	4,200		268,273
TOTAL LUXEMBOURG			477,523
Malaysia - 0.3%
KNM Group Bhd	105,300		245,180
Mexico - 1.1%
America Movil SAB de CV Series L sponsored ADR	6,100		374,479
Desarrolladora Homex Sab de CV (a)	34,300		282,702
Grupo Mexico SA de CV Series B	30,077		188,849
TOTAL MEXICO			846,030
Netherlands - 1.4%
Heineken NV (Bearer)	3,900		249,210
Koninklijke KPN NV	19,900		361,283
Koninklijke Philips Electronics NV	9,800		418,950
TOTAL NETHERLANDS			1,029,443
Norway - 1.0%
Aker Kvaerner ASA	8,750		232,657
Petroleum Geo-Services ASA	8,100		235,123
Yara International ASA	5,200		240,648
TOTAL NORWAY			708,428
Russia - 1.7%
Lukoil Oil Co. sponsored ADR	3,400		293,420
OAO Gazprom sponsored ADR	11,500		647,450
Sberbank (Savings Bank of the Russian Federation) GDR	628		340,023
TOTAL RUSSIA			1,280,893
Singapore - 0.2%
Keppel Corp. Ltd.	15,000		135,280
South Africa - 2.1%
African Bank Investments Ltd.	61,800		297,250
Bidvest Group Ltd.	7,900		138,750
Common Stocks - continued
	Shares		Value
South Africa - continued
Exxaro Resources Ltd.	22,982		$ 346,527
Gold Fields Ltd. sponsored ADR	23,500		333,700
MTN Group Ltd.	16,800		313,575
Murray & Roberts Holdings Ltd.	10,000		148,669
TOTAL SOUTH AFRICA			1,578,471
Spain - 3.2%
Banco Santander SA	51,600		1,111,464
Grifols SA	11,896		267,533
Grupo Acciona SA	800		253,177
Telefonica SA	24,000		780,720
TOTAL SPAIN			2,412,894
Sweden - 1.0%
Alfa Laval AB	4,100		230,814
Swedish Match Co.	10,000		238,950
TeliaSonera AB	29,000		271,351
TOTAL SWEDEN			741,115
Switzerland - 7.5%
ABB Ltd. (Reg.)	18,552		533,986
Actelion Ltd. (Reg.) (a)	32,909		1,511,439
Roche Holding AG (participation certificate)	3,956		675,685
Swiss Life Holding	963		240,474
Syngenta AG (Switzerland)	1,432		362,726
The Swatch Group AG (Reg.)	6,805		401,407
UBS AG (NY Shares)	25,500		1,173,000
Zurich Financial Services AG (Reg.)	2,413		707,952
TOTAL SWITZERLAND			5,606,669
Taiwan - 0.7%
Acer, Inc.	123,000		240,842
AU Optronics Corp. sponsored ADR	13,200		253,440
Taiwan Mobile Co. Ltd.	9,000		12,072
TOTAL TAIWAN			506,354
Turkey - 0.8%
Tupras-Turkiye Petrol Rafinerileri AS	10,000		293,299
Turkiye Garanti Bankasi AS	29,600		266,153
TOTAL TURKEY			559,452
United Kingdom - 12.3%
BAE Systems PLC	39,800		393,802
BG Group PLC	21,500		491,275
British American Tobacco PLC	14,100		553,848
Cairn Energy PLC (a)	1,900		116,044
International Power PLC	27,300		251,843
Lloyds TSB Group PLC	49,800		467,021
Man Group plc	30,050		339,721
Marks & Spencer Group PLC	23,800		264,807
Meggitt PLC	43,800		289,572
Reckitt Benckiser Group PLC	5,200		301,063
Rio Tinto PLC sponsored ADR	2,300		965,770

	Shares		Value
Royal Dutch Shell PLC Class A	30,600		$ 1,283,438
Shire PLC	14,000		321,767
Sibir Energy PLC	8,200		93,680
Standard Chartered PLC	19,300		707,104
Tesco PLC	50,200		476,009
Vedanta Resources PLC	5,400		219,515
Vodafone Group PLC sponsored ADR	31,100		1,160,652
Xstrata PLC	5,900		416,146
TOTAL UNITED KINGDOM			9,113,077
United States of America - 2.5%
AbitibiBowater, Inc. (d)	36,661		755,583
Apple, Inc. (a)	1,300		257,504
Synthes, Inc.	6,536		810,872
TOTAL UNITED STATES OF AMERICA			1,823,959
TOTAL COMMON STOCKS (Cost $69,597,475)		69,918,631
Nonconvertible Preferred Stocks - 0.4%

Italy - 0.4%
Istituto Finanziario Industriale SpA (IFI) (a) (Cost $379,929)	9,600		326,439
Money Market Funds - 7.0%

Fidelity Cash Central Fund, 4.58% (b)	4,020,226		4,020,226
Fidelity Securities Lending Cash Central Fund, 4.65% (b)(c)	1,199,356		1,199,356
TOTAL MONEY MARKET FUNDS (Cost $5,219,582)		5,219,582
TOTAL INVESTMENT PORTFOLIO - 101.4% (Cost $75,196,986)			75,464,652
NET OTHER ASSETS - (1.4)%			(1,063,363)
NET ASSETS - 100%		$ 74,401,289

Legend

(a) Non-income producing

(d) Security or a portion of the security is on loan at period end.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 376,533
Fidelity Securities Lending Cash Central Fund	35,702
Total	$ 412,235

Income Tax Information

The fund intends to elect to defer to its fiscal year ending December 31, 2008 approximately $4,337,018 of losses recognized during the period November 1, 2007 to December 31, 2007.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007
Assets
Investment in securities, at value (including securities loaned of $1,149,708) - See accompanying schedule: Unaffiliated issuers (cost $69,977,404)	$ 70,245,070
Fidelity Central Funds (cost $5,219,582)	5,219,582
Total Investments (cost $75,196,986)		$ 75,464,652
Cash		570,385
Foreign currency held at value (cost $471,273)		471,273
Receivable for investments sold		13,450,758
Receivable for fund shares sold		5,210
Dividends receivable		53,102
Distributions receivable from Fidelity Central Funds		34,769
Prepaid expenses		250
Other receivables		6,197
Total assets		90,056,596

Liabilities
Payable for investments purchased	$ 14,179,337
Payable for fund shares redeemed	159,756
Accrued management fee	44,896
Distribution fees payable	299
Other affiliated payables	11,145
Other payables and accrued expenses	60,518
Collateral on securities loaned, at value	1,199,356
Total liabilities		15,655,307

Net Assets		$ 74,401,289
Net Assets consist of:
Paid in capital		$ 78,660,817
Distributions in excess of net investment income		(2,078)
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(4,507,039)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		249,589
Net Assets		$ 74,401,289

Statement of Assets and Liabilities - continued

	December 31, 2007
Initial Class: Net Asset Value, offering price and redemption price per share ($1,409,020 ÷ 123,197 shares)		$ 11.44

Service Class: Net Asset Value, offering price and redemption price per share ($414,251 ÷ 36,237 shares)		$ 11.43

Service Class 2: Net Asset Value, offering price and redemption price per share ($549,771 ÷ 48,108 shares)		$ 11.43

Initial Class R: Net Asset Value, offering price and redemption price per share ($32,344,785 ÷ 2,827,355 shares)		$ 11.44

Service Class R: Net Asset Value, offering price and redemption price per share ($414,251 ÷ 36,237 shares)		$ 11.43

Service Class 2R: Net Asset Value, offering price and redemption price per share ($549,827 ÷ 48,111 shares)		$ 11.43

Investor Class R: Net Asset Value, offering price and redemption price per share ($38,719,384 ÷ 3,393,838 shares)		$ 11.41

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

	Year ended December 31, 2007
Investment Income
Dividends		$ 833,047
Special dividends		94,302
Interest		19,005
Income from Fidelity Central Funds		412,235
		1,358,589
Less foreign taxes withheld		(89,266)
Total income		1,269,323

Expenses
Management fee	$ 475,959
Transfer agent fees	92,264
Distribution fees	3,706
Accounting and security lending fees	35,326
Custodian fees and expenses	93,458
Independent trustees' compensation	225
Audit	70,907
Legal	7,299
Miscellaneous	10,195
Total expenses before reductions	789,339
Expense reductions	(27,888)	761,451
Net investment income (loss)		507,872
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers (net of foreign taxes of $42,298)	4,821,806
Foreign currency transactions	290,818
Total net realized gain (loss)		5,112,624
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $2,381)	(4,336,014)
Assets and liabilities in foreign currencies	(16,820)
Total change in net unrealized appreciation (depreciation)		(4,352,834)
Net gain (loss)		759,790
Net increase (decrease) in net assets resulting from operations		$ 1,267,662

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 507,872	$ 325,722
Net realized gain (loss)	5,112,624	1,311,750
Change in net unrealized appreciation (depreciation)	(4,352,834)	3,055,530
Net increase (decrease) in net assets resulting from operations	1,267,662	4,693,002
Distributions to shareholders from net investment income	(488,571)	(324,160)
Distributions to shareholders from net realized gain	(9,900,180)	(1,106,887)
Total distributions	(10,388,751)	(1,431,047)
Share transactions - net increase (decrease)	38,585,498	20,509,608
Redemption fees	18,995	15,654
Total increase (decrease) in net assets	29,483,404	23,787,217

Net Assets
Beginning of period	44,917,885	21,130,668
End of period (including distributions in excess of net investment income of $2,078 and undistributed net investment income of $1,561, respectively)	$ 74,401,289	$ 44,917,885

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.68	$ 11.46	$ 10.24	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.11 ^H	.11	.06	-
Net realized and unrealized gain (loss)	.53	1.54	1.21	.24
Total from investment operations	.64	1.65	1.27	.24
Distributions from net investment income	(.09)	(.10)	(.02)	-
Distributions from net realized gain	(1.79)	(.34)	(.02)	-
Total distributions	(1.88)	(.43) ^M	(.05)^L	-
Redemption fees added to paid in capital^E	- ^K	- ^K	- ^K	-
Net asset value, end of period	$ 11.44	$ 12.68	$ 11.46	$ 10.24
Total Return^B,C,D	5.17%	14.49%	12.37%	2.40%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.20%	1.80%	3.55%	43.27% ^A
Expenses net of fee waivers, if any	1.10%	1.10%	1.10%	1.10% ^A
Expenses net of all reductions	1.07%	1.00%	.91%	.92% ^A
Net investment income (loss)	.82% ^H	.95%	.53%	.80% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 1,409	$ 1,357	$ 9,367	$ 307
Portfolio turnover rate ^G	224%	185%	176%	52% ^A

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .68%. ^I For the period December 22, 2004 (commencement of operations) to December 31, 2004. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.05 per share is comprised of distributions from net investment income of $.022 and distributions from net realized gain of $.023 per share. ^M Total distributions of $.43 per share is comprised of distributions from net investment income of $.095 and distributions from net realized gain of $.335 per share.

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005	2004 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.67	$ 11.46	$ 10.24	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.10^H	.10	.10	-^K
Net realized and unrealized gain (loss)	.53	1.53	1.16	.24
Total from investment operations	.63	1.63	1.26	.24
Distributions from net investment income	(.08)	(.08)	(.01)	-
Distributions from net realized gain	(1.79)	(.34)	(.02)	-
Total distributions	(1.87)	(.42)^M	(.04)^L	-
Redemption fees added to paid in capital^E	-^K	-^K	-^K	-
Net asset value, end of period	$ 11.43	$ 12.67	$ 11.46	$ 10.24
Total Return^B,C,D	5.06%	14.30%	12.27%	2.40%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.20%	1.62%	4.35%	43.36% ^A
Expenses net of fee waivers, if any	1.20%	1.20%	1.20%	1.20% ^A
Expenses net of all reductions	1.16%	1.10%	1.01%	1.01% ^A
Net investment income (loss)	.72% ^H	.85%	.98%	.71% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 414	$ 394	$ 345	$ 307
Portfolio turnover rate ^G	224%	185%	176%	52% ^A

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .58%. ^I For the period December 22, 2004 (commencement of operations) to December 31, 2004. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.04 per share is comprised of distributions from net investment income of $.012 and distributions from net realized gain of $.023 per share. ^M Total distributions of $.42 per share is comprised of distributions from net investment income of $.084 and distributions from net realized gain of $.335 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005	2004 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.67	$ 11.46	$ 10.24	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.08 ^H	.08	.09	-
Net realized and unrealized gain (loss)	.53	1.53	1.15	.24
Total from investment operations	.61	1.61	1.24	.24
Distributions from net investment income	(.06)	(.07)	-	-
Distributions from net realized gain	(1.79)	(.34)	(.02)	-
Total distributions	(1.85)	(.40)^M	(.02)^L	-
Redemption fees added to paid in capital ^E	-^K	-^K	-^K	-
Net asset value, end of period	$ 11.43	$ 12.67	$ 11.46	$ 10.24
Total Return^B,C,D	4.89%	14.14%	12.12%	2.40%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.41%	1.77%	4.50%	43.51% ^A
Expenses net of fee waivers, if any	1.35%	1.35%	1.35%	1.35% ^A
Expenses net of all reductions	1.32%	1.25%	1.16%	1.17% ^A
Net investment income (loss)	.57% ^H	.70%	.83%	.55% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 550	$ 524	$ 459	$ 410
Portfolio turnover rate^G	224%	185%	176%	52% ^A

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .43%. ^I For the period December 22, 2004 (commencement of operations) to December 31, 2004 ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.02 per share is comprised of distributions from net investment income of $.00 and distributions from net realized gain of $.02 per share. ^M Total distributions of $.40 per share is comprised of distributions from net investment income of $.066 and distributions from net realized gain of $.335 per share.

Financial Highlights - Initial Class R

Years ended December 31,	2007	2006	2005	2004 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.68	$ 11.46	$ 10.24	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.11 ^H	.11	.11	-^K
Net realized and unrealized gain (loss)	.53	1.54	1.16	.24
Total from investment operations	.64	1.65	1.27	.24
Distributions from net investment income	(.09)	(.10)	(.02)	-
Distributions from net realized gain	(1.79)	(.34)	(.02)	-
Total distributions	(1.88)	(.43)^M	(.05)^L	-
Redemption fees added to paid in capital ^E	-^K	-^K	-^K	-
Net asset value, end of period	$ 11.44	$ 12.68	$ 11.46	$ 10.24
Total Return^B,C,D	5.17%	14.50%	12.37%	2.40%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.11%	1.46%	4.25%	43.27% ^A
Expenses net of fee waivers, if any	1.10%	1.10%	1.10%	1.10% ^A
Expenses net of all reductions	1.06%	1.00%	.91%	.92% ^A
Net investment income (loss)	.82% ^H	.95%	1.08%	.80% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 32,345	$ 17,219	$ 345	$ 307
Portfolio turnover rate ^G	224%	185%	176%	52% ^A

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .68%. ^I For the period December 22, 2004 (commencement of operations) to December 31, 2004. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.05 per share is comprised of distributions from net investment income of $.022 and distributions from net realized gain of $.023 per share. ^M Total distributions of $.43 per share is comprised of distributions from net investment income of $.096 and distributions from net realized gain of $.335 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Service Class R

Years ended December 31,	2007	2006	2005	2004 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.67	$ 11.46	$ 10.24	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.10 ^H	.10	.10	- ^K
Net realized and unrealized gain (loss)	.53	1.53	1.16	.24
Total from investment operations	.63	1.63	1.26	.24
Distributions from net investment income	(.08)	(.08)	(.01)	-
Distributions from net realized gain	(1.79)	(.34)	(.02)	-
Total distributions	(1.87)	(.42)^M	(.04)^L	-
Redemption fees added to paid in capital ^E	-^K	-^K	-^K	-
Net asset value, end of period	$ 11.43	$ 12.67	$ 11.46	$ 10.24
Total Return^B,C,D	5.06%	14.30%	12.27%	2.40%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.20%	1.62%	4.35%	43.36% ^A
Expenses net of fee waivers, if any	1.20%	1.20%	1.20%	1.20% ^A
Expenses net of all reductions	1.16%	1.10%	1.01%	1.01% ^A
Net investment income (loss)	.72% ^H	.85%	.98%	.71% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 414	$ 394	$ 345	$ 307
Portfolio turnover rate ^G	224%	185%	176%	52% ^A

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .58%. ^I For the period December 22, 2004 (commencement of operations) to December 31, 2004. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.04 per share is comprised of distributions from net investment income of $.012 and distributions from net realized gain of $.023 per share. ^M Total distributions of $.42 per share is comprised of distributions from net investment income of $.084 and distributions from net realized gain of $.335 per share.

Financial Highlights - Service Class 2R

Years ended December 31,	2007	2006	2005	2004 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.67	$ 11.46	$ 10.24	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.08 ^H	.08	.09	- ^K
Net realized and unrealized gain (loss)	.53	1.53	1.15	.24
Total from investment operations	.61	1.61	1.24	.24
Distributions from net investment income	(.06)	(.07)	-	-
Distributions from net realized gain	(1.79)	(.34)	(.02)	-
Total distributions	(1.85)	(.40)^M	(.02)^L	-
Redemption fees added to paid in capital ^E	-^K	-^K	-^K	-
Net asset value, end of period	$ 11.43	$ 12.67	$ 11.46	$ 10.24
Total Return^B,C,D	4.90%	14.14%	12.12%	2.40%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.35%	1.77%	4.50%	43.51% ^A
Expenses net of fee waivers, if any	1.35%	1.35%	1.35%	1.35% ^A
Expenses net of all reductions	1.31%	1.25%	1.16%	1.17% ^A
Net investment income (loss)	.57% ^H	.70%	.83%	.55% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 550	$ 524	$ 459	$ 410
Portfolio turnover rate ^G	224%	185%	176%	52% ^A

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .43%. ^I For the period December 22, 2004 (commencement of operations) to December 31, 2004. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.02 per share is comprised of distributions from net investment income of $.00 and distributions from net realized gain of $.02 per share. ^M Total distributions of $.40 per share is comprised of distributions from net investment income of $.066 and distributions from net realized gain of $.335 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Investor Class R

Years ended December 31,	2007	2006	2005 ^I
Selected Per-Share Data
Net asset value, beginning of period	$ 12.65	$ 11.46	$ 10.32
Income from Investment Operations
Net investment income (loss) ^E	.09 ^H	.09	.01
Net realized and unrealized gain (loss)	.54	1.53	1.16
Total from investment operations	.63	1.62	1.17
Distributions from net investment income	(.08)	(.10)	(.02)
Distributions from net realized gain	(1.79)	(.34)	(.01)
Total distributions	(1.87)	(.43)^M	(.03)^L
Redemption fees added to paid in capital ^E,K	-	-	-
Net asset value, end of period	$ 11.41	$ 12.65	$ 11.46
Total Return^B,C,D	5.07%	14.23%	11.39%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.22%	1.61%	2.19% ^A
Expenses net of fee waivers, if any	1.22%	1.25%	1.25% ^A
Expenses net of all reductions	1.18%	1.15%	1.06% ^A
Net investment income (loss)	.71% ^H	.80%	.31% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 38,719	$ 24,505	$ 9,810
Portfolio turnover rate ^G	224%	185%	176%

^A Annualized ^B Total returns for periods of less than one year are not annualized. ^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^D Total returns would have been lower had certain expenses not been reduced during the periods shown. ^E Calculated based on average shares outstanding during the period. ^F Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds. ^H Investment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .57%. ^I For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005. ^J Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^K Amount represents less than $.01 per share. ^L Total distributions of $.03 per share is comprised of distributions from net investment income of $.022 and distributions from net realized gain of $.013 per share. ^M Total distributions of $.43 per share is comprised of distributions from net investment income of $.095 and distributions from net realized gain of $.335 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48) on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 3,181,295
Unrealized depreciation	(3,410,440)
Net unrealized appreciation (depreciation)	(229,145)
Undistributed ordinary income	289,197
Undistributed long term capital gain	17,432

Cost for federal income tax purposes	$ 75,693,797

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 9,196,187	$ 779,358
Long-term Capital Gains	1,192,564	651,689
Total	$ 10,388,751	$ 1,431,047

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $159,574,551 and $130,407,995, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .45% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .71% of the Fund's average net assets.

Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate 12b-1 Plans for each Service Class of shares. Each Service Class pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, a service fee. For the period, the service fee is based on an annual rate of .10% of Service Class' and Service Class R's average net assets and .25% of Service Class 2's and Service Class 2R's average net assets.

For the period, each class paid FDC the following amounts, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services:

Service Class	$ 422
Service Class 2	1,454
Service Class R	422
Service Class 2 R	1,408
	$ 3,706

Annual Report

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class with the exception of Investor Class pays a transfer agent fee, excluding out of pocket expenses, equal to an annual rate of .07% of average net assets. Investor Class R pays a monthly asset-based transfer agent fee of .18% of average net assets. The total transfer agent fees paid by each class to FIIOC, including out of pocket expenses, were as follows:

Initial Class	$ 2,238
Service Class	279
Service Class 2	768
Initial Class R	22,074
Service Class R	279
Service Class 2R	371
Investor Class R	66,255
	$ 92,264

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to.15% of average net assets.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $118 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

9. Expense Reductions.

Annual Report

Notes to Financial Statements - continued

9. Expense Reductions - continued

The following classes were in reimbursement during the period:

	Expense Limitations	Reimbursement from adviser
Initial Class	1.10%	$ 1,250
Service Class 2	1.35%	325
Initial Class R	1.10%	849
		$ 2,424

10. Other.

At the end of the period, FMR or its affiliates were the owners of record of 99% of the total outstanding shares of the fund.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ 9,981	$ 9,863
Service Class	2,513	2,538
Service Class 2	2,465	2,655
Initial Class R	232,391	126,136
Service Class R	2,513	2,538
Service Class 2R	2,506	2,655
Investor Class R	236,202	177,775
Total	$ 488,571	$ 324,160
From net realized gain
Initial Class	$ 188,994	$ 82,024
Service Class	56,040	10,116
Service Class 2	75,317	13,470
Initial Class R	4,287,821	382,391
Service Class R	56,040	10,116
Service Class 2R	74,517	13,470
Investor Class R	5,161,451	595,300
Total	$ 9,900,180	$ 1,106,887

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	57,013	551,473	$ 797,148	$ 6,530,542
Reinvestment of distributions	17,391	7,645	198,975	91,887
Shares redeemed	(58,226)	(1,269,330)	(765,491)	(14,879,275)
Net increase (decrease)	16,178	(710,212)	$ 230,632	$ (8,256,846)

Annual Report

Notes to Financial Statements - continued

12. Share Transactions - continued

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Service Class
Reinvestment of distributions	5,121	1,019	58,553	12,654
Net increase (decrease)	5,121	1,019	$ 58,553	$ 12,654
Service Class 2
Shares sold	6,394	-	$ 84,142	$ -
Reinvestment of distributions	6,793	1,300	77,782	16,125
Shares redeemed	(6,455)	-	(88,305)	-
Net increase (decrease)	6,732	1,300	$ 73,619	$ 16,125
Initial Class R
Shares sold	1,656,294	1,743,214	$ 22,491,075	$ 20,660,150
Reinvestment of distributions	396,233	40,625	4,520,212	508,526
Shares redeemed	(583,136)	(455,998)	(7,820,250)	(5,371,545)
Net increase (decrease)	1,469,391	1,327,841	$ 19,191,037	$ 15,797,131
Service Class R
Reinvestment of distributions	5,121	1,019	58,553	12,654
Net increase (decrease)	5,121	1,019	$ 58,553	$ 12,654
Service Class 2R
Reinvestment of distributions	6,735	1,300	77,024	16,125
Net increase (decrease)	6,735	1,300	$ 77,024	$ 16,125
Investor Class R
Shares sold	1,585,891	1,447,148	$ 21,572,358	$ 17,211,509
Reinvestment of distributions	473,946	62,199	5,397,653	773,075
Shares redeemed	(602,827)	(428,813)	(8,073,931)	(5,072,819)
Net increase (decrease)	1,457,010	1,080,534	$ 18,896,080	$ 12,911,765

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP International Capital Appreciation Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP International Capital Appreciation Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP International Capital Appreciation Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 22, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006- present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000- 2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987- 1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002- present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006- present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP International Capital Appreciation. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Walter C. Donovan (45)
	Year of Election or Appointment: 2007 Vice President of VIP International Capital Appreciation. Mr. Donovan also serves as Vice President of Fidelity's Equity Funds (2007-present). Mr. Donovan also serves as Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present). Previously, Mr. Donovan served as Vice President of Fidelity's High Income Funds (2005-2007), Fixed-Income Funds (2005-2006), certain Asset Allocation Funds (2005-2006), certain Balanced Funds (2005-2006), and as Vice President and Director of Fidelity's International Equity Trading group (1998-2005).
Eric M. Wetlaufer (45)
	Year of Election or Appointment: 2006 Vice President of VIP International Capital Appreciation. Mr. Wetlaufer also serves as Vice President of certain International Equity Funds (2006-present). Mr. Wetlaufer is Senior Vice President of FMR (2006-present) and FMR Co., Inc. (2006-present), and President and Director of Fidelity Management & Research (U.K.) Inc. (2006-present) and Fidelity Research & Analysis Company (2006-present). Before joining Fidelity Investments in 2005, Mr. Wetlaufer was a partner in Oxhead Capital Management (2004-2005). Previously, Mr. Wetlaufer served as a Chief Investment Officer of Putnam Investments (1997-2003).
Eric D. Roiter (59)
	Year of Election or Appointment: 2004 Secretary of VIP International Capital Appreciation. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP International Capital Appreciation. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP International Capital Appreciation. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP International Capital Appreciation. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP International Capital Appreciation. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005- present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP International Capital Appreciation. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP International Capital Appreciation. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP International Capital Appreciation. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003- 2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP International Capital Appreciation. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP International Capital Appreciation. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP International Capital Appreciation. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

	Pay Date	Record Date	Capital Gains
Initial Class R	02/08/08	02/08/08	$0.055
Service Class R	02/08/08	02/08/08	$0.055
Service Class 2R	02/08/08	02/08/08	$0.055
Investor Class R	02/08/08	02/08/08	$0.055

The amounts per share which represent income derived from sources within, and taxes paid to, forrign countries or possessions of the United States are as follows:

	Pay Date	Income	Taxes
Initial Class R	12/21/07	$0.159	$0.023
Service Class R	12/21/07	$0.157	$0.023
Service Class 2R	12/21/07	$0.155	$0.023
Investor Class R	12/21/07	$0.157	$0.023

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP International Capital Appreciation Portfolio

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's portfolio managers and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

Investment Performance and Compliance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a custom peer group of mutual funds deemed appropriate by the Board. Because the fund had been in existence less than three calendar years, the following chart considered by the Board shows, for the one-year period ended December 31, 2006, the total returns of Initial Class R and Service Class 2 of the fund, the total returns of a broad-based securities market index ("benchmark"), and a range of total returns of a custom peer group of mutual funds defined by FMR based on categories assigned by Morningstar, Inc. The returns of Initial Class R and Service Class 2 show the performance of the highest and lowest performing classes, respectively. The box within the chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below the chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated. The fund's custom peer group, defined by FMR, is a peer group that FMR believes provides a more meaningful performance comparison than the peer group assigned by Morningstar, Inc. Morningstar, Inc. assigns mutual funds to categories based on their investment styles as measured by their underlying portfolio holdings.

VIP International Capital Appreciation Portfolio

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 12% means that 88% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

VIP International Capital Appreciation Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity International Investment Advisors

Fidelity International Investment Advisors (U.K.) Limited

Fidelity Investments Japan Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

Brown Brothers Harriman & Co.
Boston, MA

VIPCAR-ANN-0208
1.805787.103

Fidelity® Variable Insurance Products:
Materials Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average annual total returns take VIP Materials Portfolio's cumulative total return and show you what would have happened if VIP Materials Portfolio shares had performed at a constant rate each year. These numbers will be reported once the fund is a year old.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Materials Portfolio - Initial Class on April 24, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Tobias Welo, who will become Portfolio Manager of VIP Materials Portfolio on January 9, 2008

U.S. equity markets, as measured by the bellwether Dow Jones Industrial Average^SM and the Standard & Poor's 500^SM Index, registered their fifth consecutive year of positive returns in 2007, as the Dow rose 8.88% and the S&P 500® index advanced 5.49%. The tech-heavy NASDAQ Composite® Index did even better, increasing 10.55%. However, credit-and recession-related concerns carved deeply into stock prices late in 2007, pushing some major market measures into negative territory for the year overall, particularly smaller-cap and value-oriented benchmarks. Based largely on a weak U.S. dollar that boosted returns for U.S. investors, the Morgan Stanley Capital International^SM Europe, Australasia, and Far East (MSCI® EAFE®) Index - a gauge of developed stock markets outside the United States and Canada - beat most domestic equity measures, gaining 11.33%. Several European countries had outstanding performance, including Finland and Germany, while Australia also did very well. However, fallout from the credit crunch and concerns about export growth tempered U.K. stocks, while fears that Japanese financial companies would become embroiled in the U.S. subprime mortgage crisis contributed to a loss of more than 4% for the Japanese portion of the index. The emerging-markets stock asset class soared 39.78% according to the MSCI Emerging Markets index. The U.S. investment-grade bond market climbed 6.97% as measured by the Lehman Brothers® U.S. Aggregate Index, beating the 2.53% gain for the Merrill Lynch® U.S. High Yield Master II Constrained Index. The emerging-markets bond category shook off a sluggish first half of 2007 to finish the year with a respectable gain of 6.28% as measured by the J.P. Morgan Emerging Markets Bond Index (EMBI) Global, while the Citigroup® Non-U.S. Group of 7 Index - representing the debt performance of major global economies, excluding the United States - rose 13.05%.

From its inception on April 24, 2007, through December 31, 2007, the fund outperformed the 11.08% return for the Morgan Stanley Capital International^SM (MSCI®) US Investable Market Materials Index and the S&P 500, which returned 0.53% over the same time period. (For specific portfolio performance results, please refer to the performance section of this report.) Strong industry selection played a key role in the fund's solid performance. For example, the fund's sizable underweightings in weak-performing industries, such as construction materials, paper products and paper packaging, helped. In addition, good stock selection within these areas contributed. Stock picking and an underweighting in the lagging diversified chemicals group also aided results, as did the fund's modest allocation to cash amid price dips in materials stocks late in the period. Among individual holdings, Canada's Agrium - which wasn't part of the index - was the top contributor. The firm, which produces specialty fertilizers and agricultural nutrients, was boosted by steady agricultural demand and merger and acquisition news. Further, not owning certain poor-performing index components related to paper packaging and paper products aided results, including such names as Sealed Air, which was hampered by sluggish profits and rising costs, and Canadian pulp and paper producer Domtar, which struggled through falling earnings expectations. Among detractors, the fund's slight underweighting in the fertilizers/agricultural chemicals area hurt, as did stock selection within the group. Specifically, the fund's lack of exposure to fertilizer concern CF Industries and fertilizer supplier Terra Industries, both of which were up strongly, dampened results. Certain stock picks within diversified metals and mining and in specialty chemicals also detracted.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 1,080.40	$ 5.24
Hypothetical^A	$ 1,000.00	$ 1,020.16	$ 5.09
Investor Class
Actual	$ 1,000.00	$ 1,079.70	$ 6.03**
Hypothetical^A	$ 1,000.00	$ 1,019.41	$ 5.85**

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	1.00%
Investor Class	1.15%**

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Monsanto Co.	10.1	7.2
E.I. du Pont de Nemours & Co.	6.6	7.8
Dow Chemical Co.	5.9	4.3
Freeport-McMoRan Copper & Gold, Inc. Class B	5.9	4.4
Praxair, Inc.	4.5	4.1
Alcoa, Inc.	3.8	5.3
Air Products & Chemicals, Inc.	3.4	3.4
Nucor Corp.	2.7	2.8
Celanese Corp. Class A	2.5	1.8
PPG Industries, Inc.	2.2	2.4
	47.6

Top Industries (% of fund's net assets)
As of December 31, 2007
	Chemicals	56.2%
	Metals & Mining	25.4%
	Paper & Forest Products	4.6%
	Containers & Packaging	3.5%
	Construction Materials	1.5%
	All Others*	8.8%


As of June 30, 2007
	Chemicals	48.7%
	Metals & Mining	29.6%
	Paper & Forest Products	5.1%
	Containers & Packaging	4.6%
	Construction Materials	3.1%
	All Others*	8.9%

* Includes short-term investments and net other assets.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 94.1%
	Shares		Value
CHEMICALS - 56.2%
Commodity Chemicals - 4.2%
Celanese Corp. Class A	14,200		$ 600,944
Georgia Gulf Corp.	8,433		55,826
Spartech Corp.	9,180		129,438
Tronox, Inc.:
Class A	12,700		113,030
Class B	15,271		132,094
			1,031,332
Diversified Chemicals - 19.1%
Cabot Corp.	3,800		126,692
Dow Chemical Co.	36,700		1,446,714
E.I. du Pont de Nemours & Co.	36,700		1,618,103
Eastman Chemical Co.	3,300		201,597
FMC Corp.	3,800		207,290
Hercules, Inc.	17,000		328,950
Huntsman Corp.	3,900		100,230
Olin Corp.	6,000		115,980
PPG Industries, Inc.	7,800		547,794
			4,693,350
Fertilizers & Agricultural Chemicals - 12.4%
Agrium, Inc.	1,900		137,057
Monsanto Co.	22,300		2,490,687
The Mosaic Co. (a)	4,400		415,096
Uralkali JSC ADR (a)(c)	200		7,450
			3,050,290
Industrial Gases - 8.6%
Air Products & Chemicals, Inc.	8,300		818,629
Airgas, Inc.	3,400		177,174
Praxair, Inc.	12,500		1,108,875
			2,104,678
Specialty Chemicals - 11.9%
Albemarle Corp.	5,700		235,125
Chemtura Corp.	13,400		104,520
Cytec Industries, Inc.	3,400		209,372
Ecolab, Inc.	10,100		517,221
H.B. Fuller Co.	6,800		152,660
Innospec, Inc.	8,107		139,116
Lubrizol Corp.	3,500		189,560
Minerals Technologies, Inc.	1,520		101,764
Nalco Holding Co.	9,400		227,292
OMNOVA Solutions, Inc. (a)	32,865		144,935
Rockwood Holdings, Inc. (a)	9,800		325,556
Rohm & Haas Co.	4,100		217,587
Sigma Aldrich Corp.	4,400		240,240
Valspar Corp.	3,200		72,128
Zoltek Companies, Inc. (a)	741		31,767
			2,908,843
TOTAL CHEMICALS			13,788,493

	Shares		Value
CONSTRUCTION MATERIALS - 1.5%
Construction Materials - 1.5%
Martin Marietta Materials, Inc.	600		$ 79,560
Polaris Minerals Corp. (a)	3,100		35,601
Polaris Minerals Corp. (a)(c)	6,200		71,201
Vulcan Materials Co.	2,400		189,816
			376,178
CONTAINERS & PACKAGING - 3.5%
Metal & Glass Containers - 1.7%
Ball Corp.	1,900		85,500
Crown Holdings, Inc. (a)	3,600		92,340
Owens-Illinois, Inc. (a)	3,400		168,300
Pactiv Corp. (a)	2,600		69,238
			415,378
Paper Packaging - 1.8%
Bemis Co., Inc.	2,600		71,188
Packaging Corp. of America	7,500		211,500
Smurfit-Stone Container Corp. (a)	7,800		82,368
Temple-Inland, Inc.	3,100		64,635
			429,691
TOTAL CONTAINERS & PACKAGING			845,069
DIVERSIFIED FINANCIAL SERVICES - 0.1%
Other Diversifed Financial Services - 0.1%
Guaranty Financial Group, Inc. (a)	1,033		16,528
INDUSTRIAL CONGLOMERATES - 1.4%
Industrial Conglomerates - 1.4%
3M Co.	4,200		354,144
METALS & MINING - 25.4%
Aluminum - 3.8%
Alcoa, Inc.	25,500		932,025
Diversified Metals & Mining - 7.2%
Freeport-McMoRan Copper & Gold, Inc. Class B	14,000		1,434,160
Rio Tinto PLC sponsored ADR	200		83,980
Titanium Metals Corp.	9,700		256,565
			1,774,705
Gold - 2.7%
Goldcorp, Inc.	7,400		251,744
Newmont Mining Corp.	8,100		395,523
			647,267
Steel - 11.7%
Allegheny Technologies, Inc.	2,700		233,280
ArcelorMittal SA (NY Reg.) Class A	3,300		255,255
Carpenter Technology Corp.	4,400		330,748
Commercial Metals Co.	2,800		82,460
Nucor Corp.	11,300		669,186
Reliance Steel & Aluminum Co.	7,100		384,820
Common Stocks - continued
	Shares		Value
METALS & MINING - CONTINUED
Steel - continued
Steel Dynamics, Inc.	8,300		$ 494,431
United States Steel Corp.	3,400		411,094
			2,861,274
TOTAL METALS & MINING			6,215,271
OIL, GAS & CONSUMABLE FUELS - 0.8%
Coal & Consumable Fuels - 0.8%
Cameco Corp.	1,900		75,671
Patriot Coal Corp. (a)	190		7,931
Peabody Energy Corp.	2,000		123,280
			206,882
PAPER & FOREST PRODUCTS - 4.6%
Forest Products - 2.5%
Deltic Timber Corp.	2,100		108,129
Weyerhaeuser Co.	6,800		501,432
			609,561
Paper Products - 2.1%
Glatfelter	7,965		121,944
International Paper Co.	9,500		307,610
MeadWestvaco Corp.	2,900		90,770
			520,324
TOTAL PAPER & FOREST PRODUCTS			1,129,885
REAL ESTATE INVESTMENT TRUSTS - 0.5%
Specialized REITs - 0.5%
Potlatch Corp.	2,700		119,988
REAL ESTATE MANAGEMENT & DEVELOPMENT - 0.1%
Real Estate Management & Development - 0.1%
Forestar Real Estate Group, Inc. (a)	1,033		24,368
TOTAL COMMON STOCKS (Cost $21,928,275)		23,076,806
Money Market Funds - 5.7%

Fidelity Cash Central Fund, 4.58% (b) (Cost $1,386,031)	1,386,031		1,386,031
Cash Equivalents - 0.1%
	Maturity Amount		Value
Investments in repurchase agreements in a joint trading account at 1.41%, dated 12/31/07 due 1/2/08 (Collateralized by U.S. Government Obligations) # (Cost $34,000)	$ 34,003		$ 34,000
TOTAL INVESTMENT PORTFOLIO - 99.9% (Cost $23,348,306)			24,496,837
NET OTHER ASSETS - 0.1%			26,293
NET ASSETS - 100%		$ 24,523,130

Legend

(a) Non-income producing

(c) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $78,651 or 0.3% of net assets.

# Additional Information on each counterparty to the repurchase agreement is as follows:

Repurchase Agreement / Counterparty	Value
$34,000 due 1/02/08 at 1.41%
ABN AMRO Bank N.V., New York Branch	$ 14,850
Lehman Brothers, Inc.	9,243
Merrill Lynch Government Securities, Inc.	9,907
	$ 34,000

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 32,230

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (including repurchase agreements of $34,000) - See accompanying schedule: Unaffiliated issuers (cost $21,962,275)	$ 23,110,806
Fidelity Central Funds (cost $1,386,031)	1,386,031
Total Investments (cost $23,348,306)		$ 24,496,837
Receivable for investments sold		14,341
Receivable for fund shares sold		43,707
Dividends receivable		36,647
Distributions receivable from Fidelity Central Funds		3,218
Prepaid expenses		63
Other receivables		102
Total assets		24,594,915

Liabilities
Payable to custodian bank	$ 14,236
Payable for fund shares redeemed	11,033
Accrued management fee	12,130
Other affiliated payables	3,135
Other payables and accrued expenses	31,251
Total liabilities		71,785

Net Assets		$ 24,523,130
Net Assets consist of:
Paid in capital		$ 23,328,583
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		46,018
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		1,148,529
Net Assets		$ 24,523,130

Statement of Assets and Liabilities - continued

	December 31, 2007

Initial Class: Net Asset Value, offering price and redemption price per share ($13,730,030 ÷ 1,233,630 shares)		$ 11.13

Investor Class: Net Asset Value, offering price and redemption price per share ($10,793,100 ÷ 970,030 shares)		$ 11.13

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

	For the period April 24, 2007 (commencement of operations) to December 31, 2007

Investment Income
Dividends		$ 191,497
Special dividends		31,775
Interest		1,671
Income from Fidelity Central Funds		32,230
Total income		257,173

Expenses
Management fee	$ 61,394
Transfer agent fees	16,166
Accounting fees and expenses	4,285
Custodian fees and expenses	10,616
Independent trustees' compensation	31
Audit	32,937
Legal	14
Miscellaneous	553
Total expenses before reductions	125,996
Expense reductions	(7,651)	118,345
Net investment income (loss)		138,828
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	296,264
Foreign currency transactions	(1,179)
Total net realized gain (loss)		295,085
Change in net unrealized appreciation (depreciation) on: Investment securities	1,148,531
Assets and liabilities in foreign currencies	(2)
Total change in net unrealized appreciation (depreciation)		1,148,529
Net gain (loss)		1,443,614
Net increase (decrease) in net assets resulting from operations		$ 1,582,442

Statement of Changes in Net Assets

	For the period April 24, 2007 (commencement of operations) to December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 138,828
Net realized gain (loss)	295,085
Change in net unrealized appreciation (depreciation)	1,148,529
Net increase (decrease) in net assets resulting from operations	1,582,442
Distributions to shareholders from net investment income	(150,736)
Distributions to shareholders from net realized gain	(237,160)
Total distributions	(387,896)
Share transactions - net increase (decrease)	23,315,139
Redemption fees	13,445
Total increase (decrease) in net assets	24,523,130

Net Assets
Beginning of period	-
End of period	$ 24,523,130

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Period ended December 31,	2007^I
Selected Per-Share Data
Net asset value, beginning of period	$ 10.00
Income from Investment Operations
Net investment income (loss)	.10^H
Net realized and unrealized gain (loss)^E	1.20
Total from investment operations	1.30
Distributions from net investment income	(.07)
Distributions from net realized gain	(.11)
Total distributions	(.18)
Redemption fees added to paid in capital ^E	.01
Net asset value, end of period	$ 11.13
Total Return^B,C,D	13.12%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.08%^A
Expenses net of fee waivers, if any	1.00%^A
Expenses net of all reductions	1.00%^A
Net investment income (loss)	1.31%^A,H
Supplemental Data
Net assets, end of period (000 omitted)	$ 13,730
Portfolio turnover rate^G	35% ^A

^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. ^HInvestment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been 1.03%. ^IFor the period April 24, 2007 (commencement of operations) to December 31, 2007. ^JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

Financial Highlights - Investor Class

Period ended December 31,	2007^I
Selected Per-Share Data
Net asset value, beginning of period	$ 10.00
Income from Investment Operations
Net investment income (loss)	.09^H
Net realized and unrealized gain (loss)^E	1.21
Total from investment operations	1.30
Distributions from net investment income	(.07)
Distributions from net realized gain	(.11)
Total distributions	(.18)
Redemption fees added to paid in capital ^E	.01
Net asset value, end of period	$ 11.13
Total Return^B,C,D	13.05%
Ratios to Average Net Assets^F,J
Expenses before reductions	1.20%^A
Expenses net of fee waivers, if any	1.15%^A
Expenses net of all reductions	1.15%^A
Net investment income (loss)	1.16%^A,H
Supplemental Data
Net assets, end of period (000 omitted)	$ 10,793
Portfolio turnover rate^G	35% ^A

^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. ^HInvestment income per share reflects a special dividend which amounted to $.02 per share. Excluding the special dividend, the ratio of net investment income (loss) to average net assets would have been .88%. ^IFor the period April 24, 2007 (commencement of operations) to December 31, 2007. ^JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Materials Portfolio (the Fund) is a non-diversified fund of Variable Insurance Products Fund IV (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Large, non-recurring dividends recognized by the Fund are presented separately on the Statement of Operations as "Special Dividends" and the impact of these dividends is presented in the Financial Highlights. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), and losses deferred due to wash sales.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 2,513,625
Unrealized depreciation	(1,440,176)
Net unrealized appreciation (depreciation)	1,073,449
Undistributed ordinary income	118,790
Undistributed long-term capital gain	2,308

Cost for federal income tax purposes	$ 23,423,388

The tax character of distributions paid was as follows:

	December 31, 2007
Ordinary Income	$ 387,896

Annual Report

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $25,336,277 and $3,701,957, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.

Initial Class	$ 5,771
Investor Class	10,395
	$ 16,166

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.

7. Expense Reductions.

The following classes were in reimbursement during the period:

	Expense Limitations	Reimbursement from adviser

Initial Class	1.00%	$ 4,954
Investor Class	1.15%	2,595
		$ 7,549

Effective February 1, 2008, the expense limitation changed to 1.08% for Investor Class.

In addition, through arrangements with the Fund's transfer agent, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the transfer agent expense as noted in the table below.

	Transfer Agent expense reductions

Initial Class	$ 56
Investor Class	46
	$ 102

Annual Report

Notes to Financial Statements - continued

8. Other.

At the end of the period, FMR or its affiliates were the owners of record of 100% of the total outstanding shares of the Fund.

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Year ended December 31,	2007^A
From net investment income
Initial Class	$ 88,019
Investor Class	62,717
Total	$ 150,736
From net realized gain
Initial Class	$ 132,632
Investor Class	104,528
Total	$ 237,160

^A For the period April 24, 2007 (commencement of operations) to December 31, 2007.

10. Share Transactions.

Transactions for each class of shares were as follows:

	Shares	Dollars
Year ended December 31,	2007^A	2007^A
Initial Class
Shares sold	1,343,772	$ 14,140,777
Reinvestment of distributions	19,701	220,651
Shares redeemed	(129,843)	(1,378,897)
Net increase (decrease)	1,233,630	$ 12,982,531
Investor Class
Shares sold	1,131,664	$ 11,981,220
Reinvestment of distributions	14,932	167,245
Shares redeemed	(176,566)	(1,815,857)
Net increase (decrease)	970,030	$ 10,332,608

^A For the period April 24, 2007 (commencement of operations) to December 31, 2007.

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Materials Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Materials Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, and the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the year then ended and for the period April 24, 2007 (commencement of operations) through December 31, 2007, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Materials Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 21, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Materials. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Brian B. Hogan (43)
	Year of Election or Appointment: 2007 Vice President of VIP Materials. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager.
Eric D. Roiter (59)
	Year of Election or Appointment: 2007 Secretary of VIP Materials. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Materials. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2007 Anti-Money Laundering (AML) officer of VIP Materials. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2007 Chief Financial Officer of VIP Materials. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2007 Chief Compliance Officer of VIP Materials. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2007 Deputy Treasurer of VIP Materials. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2007 Deputy Treasurer of VIP Materials. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Materials. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Materials. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Materials. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Materials. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP Materials Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

	Pay Date	Record Date	Capital Gains
Initial Class	02/08/08	02/08/08	$.06
Investor Class	02/08/08	02/08/08	$.06

The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2007, $2,308, or, if subsequently determined to be different, the net capital gain of such year.

Initial Class designates 55% and Investor Class designates 58% of the dividends distributed in December 2007 during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors (U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

State Street Bank and Trust Company
Quincy, MA

VMATP-ANN-0208
1.850999.100

Fidelity® Variable Insurance Products:
Real Estate Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of fund ^A
VIP Real Estate - Initial Class	-17.72%	18.27%
VIP Real Estate - Service Class ^B	-17.80%	18.15%
VIP Real Estate - Service Class 2 ^C	-17.91%	17.98%
VIP Real Estate - Investor Class ^D	-17.83%	18.19%

^A From November 6, 2002.

^B Performance for Service Class shares reflects an asset-based service fee (12b-1 fee).

^C Performance for Service Class 2 shares reflects an asset-based service fee (12b-1 fee).

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Real Estate Portfolio - Initial Class on November 6, 2002, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Samuel Wald, Portfolio Manager of VIP Real Estate Portfolio

In a difficult environment for real estate securities, the fund performed essentially in line with the Dow Jones Wilshire Real Estate Securities Index^SM, which fell 17.66% during the past year. However, the fund significantly trailed the broad stock market, as measured by the S&P 500. (For specific portfolio performance results, please refer to the performance section of this report.) It was the first time in seven years that real estate investment trusts (REITs) failed to outpace equities. Despite significant volatility in the REIT market, the fundamental backdrop for real estate remained decent. Demand for property showed modest signs of slowing as the year went on and the economy weakened, while supply generally was not a problem. The biggest challenge facing real estate during the year was seen in the capital markets. Following the subprime mortgage crisis in the residential housing market, worries about bad loans led to tightening credit standards across the board. Financing became more difficult to find as well as more expensive. Because real estate is such a capital-intensive asset class, uncertainty about the future cost and availability of capital weighed on REIT prices as the year went on. Relative to the Dow Jones Wilshire index, poor security selection was a negative, especially in apartments. For example, being significantly underweighted in apartment owner and manager Archstone-Smith Trust hampered results. Archstone was purchased at a premium price in one of many leveraged buyouts that took place during the year. Weak stock picks among retail strip centers, including an underweighting in Federal Realty Investment Trust, also detracted. This stock was no longer in the fund at period end. Overall, the fund's single biggest relative underperformer was Corporate Office Properties Trust. This office owner was hurt by a weaker-than-expected leasing environment in its core market of Washington, D.C. Also hurting the portfolio was maintaining almost no weighting in health care REIT Ventas, which benefited in part from its defensive nature. On the positive side, my top-performing stock in relative terms was Alexandria Real Estate Equities, an owner of laboratory space. I originally bought the stock because I felt that it was significantly undervalued. As the year went on, the market came to agree with my assessment. The same was true of Geo Group, an out-of-benchmark prison operator that rose off what I believed was a very attractive price. During the year, Geo grew quickly and benefited from a strong fundamental backdrop, including not enough prison beds to keep up with demand. The fund no longer owned Geo as of December 31, 2007. Lacking exposure to Liberty Property Trust helped as well. This suburban office REIT and index component fell in response to a deteriorating leasing environment and weaker earnings. Of final note, a small cash position worked significantly in the fund's favor during this challenging market environment.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 880.40	$ 3.46
Hypothetical^A	$ 1,000.00	$ 1,021.53	$ 3.72
Service Class
Actual	$ 1,000.00	$ 879.70	$ 3.93
Hypothetical^A	$ 1,000.00	$ 1,021.02	$ 4.23
Service Class 2
Actual	$ 1,000.00	$ 879.20	$ 4.64
Hypothetical^A	$ 1,000.00	$ 1,020.27	$ 4.99
Investor Class
Actual	$ 1,000.00	$ 879.50	$ 4.03
Hypothetical^A	$ 1,000.00	$ 1,020.92	$ 4.33

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.73%
Service Class	.83%
Service Class 2	.98%
Investor Class	.85%

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Simon Property Group, Inc.	8.6	6.6
ProLogis Trust	7.8	5.6
Public Storage	6.2	5.0
General Growth Properties, Inc.	6.1	5.7
Boston Properties, Inc.	4.1	3.1
Vornado Realty Trust	4.0	6.3
Home Properties, Inc.	3.7	3.3
Highwoods Properties, Inc. (SBI)	3.3	2.5
Alexandria Real Estate Equities, Inc.	3.1	3.8
Kimco Realty Corp.	3.0	2.0
	49.9
Top Five REIT Sectors as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
REITs - Office Buildings	18.0	18.3
REITs - Malls	15.9	14.0
REITs - Industrial Buildings	15.5	14.6
REITs - Apartments	14.7	18.4
REITs - Shopping Centers	11.6	13.0

Asset Allocation (% of fund's net assets)
As of December 31, 2007*			As of June 30, 2007**
	Stocks 98.0%			Stocks 96.8%
	Short-Term Investments and Net Other Assets 2.0%			Short-Term Investments and Net Other Assets 3.2%
* Foreign investments		3.3%	** Foreign investments		3.4%

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 98.0%
	Shares		Value
COMMERCIAL SERVICES & SUPPLIES - 0.3%
Diversified Commercial & Professional Services - 0.3%
Corrections Corp. of America (a)	11,100		$ 327,561
HEALTH CARE PROVIDERS & SERVICES - 1.4%
Health Care Facilities - 1.4%
Capital Senior Living Corp. (a)	27,700		275,061
Emeritus Corp. (a)	32,900		827,435
Sun Healthcare Group, Inc. (a)	25,000		429,250
TOTAL HEALTH CARE FACILITIES			1,531,746
HOTELS, RESTAURANTS & LEISURE - 2.6%
Hotels, Resorts & Cruise Lines - 2.6%
Gaylord Entertainment Co. (a)	17,100		692,037
Starwood Hotels & Resorts Worldwide, Inc.	47,800		2,104,634
TOTAL HOTELS, RESORTS & CRUISE LINES			2,796,671
HOUSEHOLD DURABLES - 0.3%
Homebuilding - 0.3%
Centex Corp.	11,200		282,912
REAL ESTATE INVESTMENT TRUSTS - 90.1%
REITs - Apartments - 14.7%
Apartment Investment & Management Co. Class A	75,700		2,629,061
AvalonBay Communities, Inc.	22,200		2,089,908
BRE Properties, Inc.	2,700		109,431
Equity Residential (SBI)	87,700		3,198,419
Essex Property Trust, Inc.	10,100		984,649
GMH Communities Trust	67,000		369,840
Home Properties, Inc.	88,500		3,969,225
Pennsylvania Real Estate Investment Trust (SBI)	42,100		1,249,528
UDR, Inc.	60,100		1,192,985
TOTAL REITS - APARTMENTS			15,793,046
REITs - Factory Outlets - 2.5%
Tanger Factory Outlet Centers, Inc.	71,500		2,696,265
REITs - Health Care Facilities - 4.8%
HCP, Inc.	72,000		2,504,160
Healthcare Realty Trust, Inc.	98,700		2,505,993
Ventas, Inc.	2,500		113,125
TOTAL REITS - HEALTH CARE FACILITIES			5,123,278

	Shares		Value
REITs - Hotels - 4.7%
Host Hotels & Resorts, Inc.	124,047		$ 2,113,761
LaSalle Hotel Properties (SBI)	90,500		2,886,950
TOTAL REITS - HOTELS			5,000,711
REITs - Industrial Buildings - 15.5%
DCT Industrial Trust, Inc.	169,800		1,580,838
ProLogis Trust	132,416		8,392,526
Public Storage	91,040		6,683,246
TOTAL REITS - INDUSTRIAL BUILDINGS			16,656,610
REITs - Malls - 15.9%
General Growth Properties, Inc.	159,451		6,566,192
Simon Property Group, Inc.	105,640		9,175,891
Taubman Centers, Inc.	25,700		1,264,183
TOTAL REITS - MALLS			17,006,266
REITs - Management/Investment - 1.8%
Digital Realty Trust, Inc.	12,700		487,299
Equity Lifestyle Properties, Inc.	18,441		842,200
Unibail-Rodamco	2,800		612,621
TOTAL REITS - MANAGEMENT/INVESTMENT			1,942,120
REITs - Mortgage - 0.6%
MFA Mortgage Investments, Inc.	69,900		646,575
REITs - Office Buildings - 18.0%
Alexandria Real Estate Equities, Inc.	32,600		3,314,442
Boston Properties, Inc.	47,900		4,397,699
Corporate Office Properties Trust (SBI)	85,800		2,702,700
Highwoods Properties, Inc. (SBI)	121,300		3,563,794
Kilroy Realty Corp.	38,100		2,093,976
Maguire Properties, Inc.	4,400		129,668
SL Green Realty Corp.	32,900		3,074,834
TOTAL REITS - OFFICE BUILDINGS			19,277,113
REITs - Shopping Centers - 11.6%
Developers Diversified Realty Corp.	58,100		2,224,649
Equity One, Inc.	10,600		244,118
Inland Real Estate Corp.	174,500		2,470,920
Kimco Realty Corp.	89,715		3,265,626
Vornado Realty Trust	48,300		4,247,985
TOTAL REITS - SHOPPING CENTERS			12,453,298
TOTAL REAL ESTATE INVESTMENT TRUSTS			96,595,282
Common Stocks - continued
	Shares		Value
REAL ESTATE MANAGEMENT & DEVELOPMENT - 3.3%
Real Estate Management & Development - 3.3%
Brookfield Properties Corp.	151,850		$ 2,923,113
CB Richard Ellis Group, Inc. Class A (a)	26,600		573,230
TOTAL REAL ESTATE MANAGEMENT & DEVELOPMENT			3,496,343
TOTAL COMMON STOCKS (Cost $95,848,404)		105,030,515
Money Market Funds - 1.7%

Fidelity Cash Central Fund, 4.58% (b) (Cost $1,753,043)	1,753,043		1,753,043

TOTAL INVESTMENT PORTFOLIO - 99.7%

(Cost $97,601,447)

106,783,558

NET OTHER ASSETS - 0.3%

350,759

NET ASSETS - 100%

$ 107,134,317

Legend

(a) Non-income producing

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 139,509

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $95,848,404)	$ 105,030,515
Fidelity Central Funds (cost $1,753,043)	1,753,043
Total Investments (cost $97,601,447)		$ 106,783,558
Cash		18,451
Foreign currency held at value (cost $447)		447
Receivable for investments sold		1,162,684
Receivable for fund shares sold		3,062
Dividends receivable		930,745
Distributions receivable from Fidelity Central Funds		6,465
Prepaid expenses		437
Other receivables		200
Total assets		108,906,049

Liabilities
Payable for investments purchased	$ 1,359,384
Payable for fund shares redeemed	292,786
Accrued management fee	51,440
Distribution fees payable	1,057
Other affiliated payables	12,792
Other payables and accrued expenses	54,273
Total liabilities		1,771,732

Net Assets		$ 107,134,317
Net Assets consist of:
Paid in capital		$ 98,040,190
Undistributed net investment income		241,854
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(329,838)
Net unrealized appreciation (depreciation) on investments		9,182,111
Net Assets		$ 107,134,317

Statement of Assets and Liabilities - continued

	December 31, 2007

Initial Class: Net Asset Value, offering price and redemption price per share ($68,401,302 ÷ 4,757,361 shares)		$ 14.38

Service Class: Net Asset Value, offering price and redemption price per share ($3,542,964 ÷ 247,280 shares)		$ 14.33

Service Class 2: Net Asset Value, offering price and redemption price per share ($3,558,367 ÷ 249,262 shares)		$ 14.28

Investor Class: Net Asset Value, offering price and redemption price per share ($31,631,684 ÷ 2,205,993 shares)		$ 14.34

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Operations

	Year ended December 31, 2007

Investment Income
Dividends		$ 3,821,258
Interest		976
Income from Fidelity Central Funds		139,509
Total income		3,961,743

Expenses
Management fee	$ 1,142,516
Transfer agent fees	196,838
Distribution fees	14,616
Accounting fees and expenses	79,479
Custodian fees and expenses	35,774
Independent trustees' compensation	735
Registration fees	27
Audit	51,126
Legal	1,932
Interest	4,455
Miscellaneous	39,105
Total expenses before reductions	1,566,603
Expense reductions	(1,028)	1,565,575
Net investment income (loss)		2,396,168
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	22,095,857
Foreign currency transactions	1,631
Total net realized gain (loss)		22,097,488
Change in net unrealized appreciation (depreciation) on: Investment securities	(55,566,038)
Assets and liabilities in foreign currencies	(16)
Total change in net unrealized appreciation (depreciation)		(55,566,054)
Net gain (loss)		(33,468,566)
Net increase (decrease) in net assets resulting from operations		$ (31,072,398)

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 2,396,168	$ 3,398,816
Net realized gain (loss)	22,097,488	21,788,357
Change in net unrealized appreciation (depreciation)	(55,566,054)	34,798,480
Net increase (decrease) in net assets resulting from operations	(31,072,398)	59,985,653
Distributions to shareholders from net investment income	(2,083,139)	(3,481,178)
Distributions to shareholders from net realized gain	(26,825,176)	(20,674,753)
Total distributions	(28,908,315)	(24,155,931)
Share transactions - net increase (decrease)	(97,480,470)	70,269,294
Total increase (decrease) in net assets	(157,461,183)	106,099,016

Net Assets
Beginning of period	264,595,500	158,496,484
End of period (including undistributed net investment income of $241,854 and $0, respectively)	$ 107,134,317	$ 264,595,500

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 22.74	$ 18.48	$ 17.46	$ 13.30	$ 10.15
Income from Investment Operations
Net investment income (loss)^C	.27	.38	.38	.45	.48^F
Net realized and unrealized gain (loss)	(4.15)	6.23	2.25	4.08	2.89
Total from investment operations	(3.88)	6.61	2.63	4.53	3.37
Distributions from net investment income	(.36)	(.33)	(.41)	(.31)	(.15)
Distributions from net realized gain	(4.12)	(2.02)	(1.20)	(.06)	(.07)
Total distributions	(4.48)	(2.35)	(1.61)^H	(.37)	(.22)
Net asset value, end of period	$ 14.38	$ 22.74	$ 18.48	$ 17.46	$ 13.30
Total Return^{A, B}	(17.72)%	36.71%	15.12%	34.14%	33.21%
Ratios to Average Net Assets^{D, G}
Expenses before reductions	.74%	.72%	.74%	.77%	1.72%
Expenses net of fee waivers, if any	.74%	.72%	.74%	.77%	1.03%
Expenses net of all reductions	.74%	.71%	.71%	.74%	1.00%
Net investment income (loss)	1.21%	1.76%	2.13%	3.02%	4.44%
Supplemental Data
Net assets, end of period (000 omitted)	$ 68,401	$ 205,802	$ 145,065	$ 147,779	$ 45,320
Portfolio turnover rate^E	102%	70%	75%	66%	46%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Investment income per share reflects a special dividend which amounted to $.11 per share.

^H Total distribution of $1.61 per share is comprised of distributions from net investment income of $.413 and distributions from net realized gain of $1.195 per share.

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 22.69	$ 18.44	$ 17.43	$ 13.28	$ 10.15
Income from Investment Operations
Net investment income (loss)^C	.24	.35	.37	.43	.49^F
Net realized and unrealized gain (loss)	(4.13)	6.22	2.23	4.08	2.86
Total from investment operations	(3.89)	6.57	2.60	4.51	3.35
Distributions from net investment income	(.35)	(.30)	(.40)	(.30)	(.15)
Distributions from net realized gain	(4.12)	(2.02)	(1.20)	(.06)	(.07)
Total distributions	(4.47)	(2.32)	(1.59)^H	(.36)	(.22)
Net asset value, end of period	$ 14.33	$ 22.69	$ 18.44	$ 17.43	$ 13.28
Total Return^{A, B}	(17.80)%	36.61%	15.00%	34.04%	33.01%
Ratios to Average Net Assets^{D, G}
Expenses before reductions	.83%	.82%	.84%	.86%	1.80%
Expenses net of fee waivers, if any	.83%	.82%	.84%	.86%	1.24%
Expenses net of all reductions	.83%	.81%	.81%	.84%	1.22%
Net investment income (loss)	1.12%	1.66%	2.03%	2.92%	4.23%
Supplemental Data
Net assets, end of period (000 omitted)	$ 3,543	$ 4,311	$ 3,156	$ 2,744	$ 2,048
Portfolio turnover rate^E	102%	70%	75%	66%	46%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Investment income per share reflects a special dividend which amounted to $.11 per share.

^H Total distribution of $1.59 per share is comprised of distributions from net investment income of $.397 and distributions from net realized gain of $1.195 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 22.62	$ 18.40	$ 17.39	$ 13.26	$ 10.15
Income from Investment Operations
Net investment income (loss)^C	.21	.32	.34	.41	.47^F
Net realized and unrealized gain (loss)	(4.11)	6.19	2.24	4.06	2.86
Total from investment operations	(3.90)	6.51	2.58	4.47	3.33
Distributions from net investment income	(.32)	(.27)	(.37)	(.28)	(.15)
Distributions from net realized gain	(4.12)	(2.02)	(1.20)	(.06)	(.07)
Total distributions	(4.44)	(2.29)	(1.57)^H	(.34)	(.22)
Net asset value, end of period	$ 14.28	$ 22.62	$ 18.40	$ 17.39	$ 13.26
Total Return^{A, B}	(17.91)%	36.35%	14.88%	33.79%	32.81%
Ratios to Average Net Assets^{D, G}
Expenses before reductions	.98%	.97%	.99%	1.01%	1.95%
Expenses net of fee waivers, if any	.98%	.97%	.99%	1.01%	1.39%
Expenses net of all reductions	.98%	.96%	.96%	.99%	1.37%
Net investment income (loss)	.97%	1.51%	1.88%	2.77%	4.08%
Supplemental Data
Net assets, end of period (000 omitted)	$ 3,558	$ 4,284	$ 3,141	$ 2,735	$ 2,044
Portfolio turnover rate^E	102%	70%	75%	66%	46%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Investment income per share reflects a special dividend which amounted to $.11 per share.

^H Total distribution of $1.57 per share is comprised of distributions from net investment income of $.37 and distributions from net realized gain of $1.195 per share.

Financial Highlights - Investor Class

Years ended December 31,	2007	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 22.69	$ 18.46	$ 19.25
Income from Investment Operations
Net investment income (loss)^E	.24	.35	.17
Net realized and unrealized gain (loss)	(4.13)	6.22	.52
Total from investment operations	(3.89)	6.57	.69
Distributions from net investment income	(.34)	(.32)	(.42)
Distributions from net realized gain	(4.12)	(2.02)	(1.06)
Total distributions	(4.46)	(2.34)	(1.48)^J
Net asset value, end of period	$ 14.34	$ 22.69	$ 18.46
Total Return^{B, C, D}	(17.83)%	36.53%	3.52%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.85%	.85%	.99%^A
Expenses net of fee waivers, if any	.85%	.85%	.99%^A
Expenses net of all reductions	.85%	.85%	.96%^A
Net investment income (loss)	1.10%	1.62%	1.98%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 31,632	$ 50,198	$ 7,134
Portfolio turnover rate^G	102%	70%	75%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005.

^J Total distribution of $1.48 per share is comprised of distributions from net investment income of $.419 and distributions from net realized gain of $1.06 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Real Estate Portfolio (the Fund) is a non-diversified fund of Variable Insurance Products Fund IV (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions 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. 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 Fund is 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Book-tax differences are primarily due foreign currency transactions and losses deferred due to wash sales.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 19,605,053
Unrealized depreciation	(10,945,269)
Net unrealized appreciation (depreciation)	8,659,784
Undistributed ordinary income	245,007
Undistributed long-term capital gain	189,338

Cost for federal income tax purposes	$ 98,123,774

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 3,497,299	$ 6,598,896
Long-term Capital Gains	25,411,016	17,557,035
Total	$ 28,908,315	$ 24,155,931

Annual Report

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $202,709,148 and $320,191,900, respectively.

6. Fees and Other Transactions with Affiliates.

For the period, each class paid FDC the following amounts, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services:

Service Class	$ 4,165
Service Class 2	10,451
	$ 14,616

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Fund's transfer, dividend disbursing, and shareholder servicing agent. FIIOC receives an asset-based fee with respect to each class. Each class with exception of Investor Class pays a transfer agent fee, excluding out of pocket expenses, equal to an annual rate of .07% of average net assets. Investor class pays a monthly asset-based fee of .18% of average net assets. The total transfer agent fees paid by each class to FIIOC, including out of pocket expenses, were as follows:

Initial Class	$ 100,789
Service Class	2,755
Service Class 2	2,769
Investor Class	90,525
	$ 196,838

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.

Borrower or Lender	Average Daily Loan Balance	Weighted Average Interest Rate	Interest Expense
Borrower	$ 3,306,333	5.39%	$ 4,455

Annual Report

Notes to Financial Statements - continued

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $507 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Expense Reductions.

9. Other.

At the end of the period, FMR or its affiliates were the owners of record of 99% of the total outstanding shares of the Fund.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

	Years ended December 31,
	2007	2006
From net investment income
Initial Class	$ 1,365,795	$ 2,781,183
Service Class	68,258	53,234
Service Class 2	62,646	47,704
Investor Class	586,440	599,057
Total	$ 2,083,139	$ 3,481,178
From net realized gain
Initial Class	$ 17,699,464	$ 16,767,387
Service Class	793,369	351,979
Service Class 2	800,493	351,224
Investor Class	7,531,850	3,204,163
Total	$ 26,825,176	$ 20,674,753

Annual Report

11. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
	Years ended December 31,		Years ended December 31,
	2007	2006	2007	2006
Initial Class
Shares sold	1,009,853	2,250,474	$ 24,565,352	$ 50,672,505
Reinvestment of distributions	1,205,003	905,495	19,065,259	19,548,570
Shares redeemed	(6,507,635)	(1,956,218)	(141,392,015)	(40,657,830)
Net increase (decrease)	(4,292,779)	1,199,751	$ (97,761,404)	$ 29,563,245
Service Class
Reinvestment of distributions	57,280	18,859	861,626	405,213
Net increase (decrease)	57,280	18,859	$ 861,626	$ 405,213
Service Class 2
Shares sold	2,439	-	$ 60,976	$ -
Reinvestment of distributions	57,564	18,633	863,138	398,928
Shares redeemed	(138)	-	(3,144)	-
Net increase (decrease)	59,865	18,633	$ 920,970	$ 398,928
Investor Class
Shares sold	1,124,988	1,835,126	$ 26,378,804	$ 40,039,439
Reinvestment of distributions	528,915	173,210	8,118,290	3,803,220
Shares redeemed	(1,660,061)	(182,665)	(35,998,756)	(3,940,751)
Net increase (decrease)	(6,158)	1,825,671	$ (1,501,662)	$ 39,901,908

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Real Estate Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Real Estate Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Real Estate Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 20, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Real Estate. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Brian B. Hogan (43)
	Year of Election or Appointment: 2007 Vice President of VIP Real Estate. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager.
Eric D. Roiter (59)
	Year of Election or Appointment: 2002 Secretary of VIP Real Estate. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Real Estate. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present), and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Real Estate. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Real Estate. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Real Estate. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Real Estate. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Real Estate. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Real Estate. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Real Estate. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Real Estate. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Real Estate. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP Real Estate Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:

Fund	Pay Date	Record Date	Dividends	Capital Gains
Initial Class	02/15/08	02/15/08	$.035	$.03
Service Class	02/15/08	02/15/08	$.035	$.03
Service Class 2	02/15/08	02/15/08	$.035	$.03
Investor Class	02/15/08	02/15/08	$.035	$.03

The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2007, $22,336,599, or, if subsequently determined to be different, the net capital gain of such year.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Real Estate Portfolio

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Real Estate Portfolio

The Board stated that the relative investment performance of Initial Class of the fund compared favorably to its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

VIP Real Estate Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each class ranked below its competitive median for 2006.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors (U.K.) Ltd.

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

Mellon Bank, N.A.
Pittsburgh, PA

VIPRE-ANN-0208
1.781992.105

Fidelity® Variable Insurance Products:
Technology Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Past 5 years	Life of fund ^A
VIP Technology - Initial Class	15.36%	17.22%	4.11%
VIP Technology - Investor Class^B	15.15%	17.11%	4.03%

^A From July 19, 2001.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Technology Portfolio - Initial Class on July 19, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Charlie Chai, Portfolio Manager of VIP Technology Portfolio

During the past year, the fund performed about in line with the 15.13% return of the Morgan Stanley Capital International^SM (MSCI®) US Investable Market Information Technology Index and topped the S&P 500. (For specific portfolio performance results, please refer to the performance section of this report.) Versus the MSCI index, the fund's results were aided by capable stock picking in the consumer electronics, application software, and electrical components and equipment groups. An overweighting in home entertainment software also helped. Additionally, given the fund's significant foreign exposure, the weak U.S. dollar benefited performance. Canada-based Research In Motion provided the largest boost to performance versus the index. The maker of the BlackBerry handheld messaging device continued to develop its core market of business users while rolling out new products aimed at the consumer market. Other contributors included Tele Atlas, a Dutch provider of digital map data, network equipment maker Juniper Networks and Canada's Sandvine, a provider of Internet traffic-monitoring equipment. Japan's Nintendo also helped. All the contributors I mentioned except for Juniper Networks were out-of-benchmark positions, and Tele Atlas was sold to lock in profits. Conversely, the fund's results were undermined significantly by unfavorable stock selection in the semiconductor space. From a capitalization perspective, our small-cap holdings were a drag on performance during a period in which investors grew increasingly defensive. Performance was hampered by Marvell Technology Group, a supplier of chips for both personal computers (PCs) and consumer electronics devices. The company reported a loss for its fiscal quarter ending October 27, 2007, and continued to restructure. The fund also was hurt by overweighting Advanced Micro Devices and underweighting its larger rival, Intel, both suppliers of chips to the PC market. The fund did not own Intel at period end. F5 Networks, a maker of software for application delivery networking, and South Korean handset component manufacturer Mogem, an out-of-benchmark position, also fared poorly.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 1,031.80	$ 3.99
Hypothetical^A	$ 1,000.00	$ 1,021.27	$ 3.97
Investor Class
Actual	$ 1,000.00	$ 1,032.00	$ 4.66
Hypothetical^A	$ 1,000.00	$ 1,020.62	$ 4.63

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.78%
Investor Class	.91%

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Apple, Inc.	10.6	4.0
Cisco Systems, Inc.	9.3	2.4
Google, Inc. Class A (sub. vtg.)	6.5	5.9
Nintendo Co. Ltd.	6.1	1.0
Marvell Technology Group Ltd.	3.6	5.3
Research In Motion Ltd.	3.1	2.3
Juniper Networks, Inc.	3.1	2.3
F5 Networks, Inc.	2.1	1.0
Nokia Corp. sponsored ADR	2.1	0.5
New Oriental Education & Technology Group, Inc. sponsored ADR	1.4	0.0
	47.9

Top Industries (% of fund's net assets)
As of December 31, 2007
	Communications Equipment	28.3%
	Semiconductors & Semiconductor Equipment	18.3%
	Computers & Peripherals	15.3%
	Software	14.6%
	Internet Software & Services	10.0%
	All Others*	13.5%


As of June 30, 2007
	Semiconductors & Semiconductor Equipment	30.7%
	Communications Equipment	24.2%
	Computers & Peripherals	12.4%
	Software	11.6%
	Internet Software & Services	9.9%
	All Others*	11.2%

* Includes short-term investments and net other assets.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 99.6%
	Shares		Value
COMMERCIAL SERVICES & SUPPLIES - 0.4%
Diversified Commercial & Professional Services - 0.2%
China Security & Surveillance Technology, Inc. (a)(d)	8,300		$ 181,272
Human Resource & Employment Services - 0.2%
Kenexa Corp. (a)	11,500		223,330
TOTAL COMMERCIAL SERVICES & SUPPLIES			404,602
COMMUNICATIONS EQUIPMENT - 28.1%
Communications Equipment - 28.1%
Adtran, Inc.	11,200		239,456
ADVA AG Optical Networking (a)	58,503		291,997
Airvana, Inc.	29,587		160,657
Aruba Networks, Inc.	900		13,419
AudioCodes Ltd. (a)	66,150		334,719
Balda AG (a)(d)	15,400		204,520
Blue Coat Systems, Inc. (a)	6,907		227,033
Ciena Corp. (a)	12,000		409,320
Cisco Systems, Inc. (a)	360,100		9,747,907
CommScope, Inc. (a)	1,600		78,736
Comtech Group, Inc. (a)	18,099		291,575
Comverse Technology, Inc. (a)	43,370		748,133
CyberTAN Technology, Inc.	30,000		59,574
Delta Networks, Inc.	195,000		64,774
F5 Networks, Inc. (a)	77,426		2,208,190
Finisar Corp. (a)	88,129		127,787
Foundry Networks, Inc. (a)	18,900		331,128
Foxconn International Holdings Ltd. (a)	342,000		767,593
Harris Stratex Networks, Inc. Class A (a)	22,600		377,420
Infinera Corp.	14,400		213,696
Juniper Networks, Inc. (a)	98,896		3,283,347
Mogem Co. Ltd.	31,554		144,944
Nokia Corp. sponsored ADR	56,200		2,157,518
Optium Corp. (a)(d)	19,700		155,236
Powerwave Technologies, Inc. (a)	115,000		463,450
RADWARE Ltd. (a)	9,303		143,266
Research In Motion Ltd. (a)	28,990		3,287,466
Riverbed Technology, Inc. (a)	17,900		478,646
SIM Technology Group	632,000		145,090
Sonus Networks, Inc. (a)(d)	232,200		1,353,726
Starent Networks Corp.	60,088		1,096,606
			29,606,929
COMPUTERS & PERIPHERALS - 15.3%
Computer Hardware - 12.7%
3PAR, Inc.	800		10,240
Apple, Inc. (a)	56,245		11,141,006
Foxconn Technology Co. Ltd.	14,000		113,969
Hewlett-Packard Co.	11,800		595,664

	Shares		Value
High Tech Computer Corp.	73,500		$ 1,357,586
Palm, Inc.	22,600		143,284
			13,361,749
Computer Storage & Peripherals - 2.6%
ASUSTeK Computer, Inc.	149,178		448,040
Brocade Communications Systems, Inc. (a)	47,700		350,118
China Digital TV Holding Co. Ltd. ADR	200		5,396
Data Domain, Inc.	300		7,902
EMC Corp. (a)	40,600		752,318
Innolux Display Corp.	80,235		272,151
Netezza Corp.	26,700		368,460
Network Appliance, Inc. (a)	20,100		501,696
			2,706,081
TOTAL COMPUTERS & PERIPHERALS			16,067,830
DIVERSIFIED CONSUMER SERVICES - 1.4%
Education Services - 1.4%
New Oriental Education & Technology Group, Inc. sponsored ADR (a)	18,300		1,474,797
ELECTRICAL EQUIPMENT - 3.8%
Electrical Components & Equipment - 3.8%
First Solar, Inc. (a)	4,400		1,175,416
General Cable Corp. (a)	1,100		80,608
JA Solar Holdings Co. Ltd. ADR	14,200		991,302
Neo-Neon Holdings Ltd.	658,000		656,557
Q-Cells AG (a)	200		28,487
Suntech Power Holdings Co. Ltd. sponsored ADR (a)	11,100		913,752
Superior Essex, Inc. (a)	5,660		135,840
			3,981,962
ELECTRONIC EQUIPMENT & INSTRUMENTS - 2.2%
Electronic Equipment & Instruments - 0.8%
Chi Mei Optoelectronics Corp.	150,080		210,566
Chunghwa Picture Tubes LTD. (a)	514,000		178,307
Cyntec Co. Ltd.	45,076		66,301
ENE Technology, Inc.	7,000		23,851
Gia Tzoong Enterprise Co. Ltd. (a)	300,000		148,936
Motech Industries, Inc. GDR (a)(e)	8,482		77,815
TXC Corp.	57,000		100,361
			806,137
Electronic Manufacturing Services - 0.4%
SMART Modular Technologies (WWH), Inc. (a)	12,138		123,565
Trimble Navigation Ltd. (a)	10,400		314,496
			438,061
Technology Distributors - 1.0%
Ingram Micro, Inc. Class A (a)	15,500		279,620
Common Stocks - continued
	Shares		Value
ELECTRONIC EQUIPMENT & INSTRUMENTS - CONTINUED
Technology Distributors - continued
Mellanox Technologies Ltd.	25,300		$ 460,966
Mingyuan Medicare Development Co. Ltd.	2,200,000		321,658
			1,062,244
TOTAL ELECTRONIC EQUIPMENT & INSTRUMENTS			2,306,442
HEALTH CARE EQUIPMENT & SUPPLIES - 1.4%
Health Care Equipment - 1.4%
Mindray Medical International Ltd. sponsored ADR	33,600		1,443,792
Health Care Supplies - 0.0%
Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares)	12,000		27,703
TOTAL HEALTH CARE EQUIPMENT & SUPPLIES			1,471,495
HEALTH CARE PROVIDERS & SERVICES - 0.0%
Health Care Services - 0.0%
athenahealth, Inc.	100		3,600
HOTELS, RESTAURANTS & LEISURE - 2.1%
Hotels, Resorts & Cruise Lines - 2.1%
Ctrip.com International Ltd. sponsored ADR	21,700		1,247,099
Home Inns & Hotels Management, Inc. ADR (a)	26,300		937,332
			2,184,431
HOUSEHOLD DURABLES - 1.0%
Consumer Electronics - 1.0%
Directed Electronics, Inc. (a)	8,772		14,562
Garmin Ltd.	4,900		475,300
Harman International Industries, Inc.	2,300		169,533
TomTom Group BV (a)	4,800		360,764
			1,020,159
INTERNET SOFTWARE & SERVICES - 10.0%
Internet Software & Services - 10.0%
Akamai Technologies, Inc. (a)	21,800		754,280
Alibaba.com Ltd.	95,500		338,661
DealerTrack Holdings, Inc. (a)	1,500		50,205
Equinix, Inc. (a)	2,600		262,782
Google, Inc. Class A (sub. vtg.) (a)	9,850		6,811,078
Greenfield Online, Inc. (a)	10,300		150,483
LivePerson, Inc. (a)	38,900		207,726
Move, Inc. (a)	25,400		62,230
Omniture, Inc. (a)	21,300		709,077
Tencent Holdings Ltd.	72,000		545,280
ValueClick, Inc. (a)	12,138		265,822
Visual Sciences, Inc. (a)	17,277		319,279
			10,476,903

	Shares		Value
IT SERVICES - 0.8%
Data Processing & Outsourced Services - 0.4%
ExlService Holdings, Inc. (a)	9,300		$ 214,644
WNS Holdings Ltd. ADR (a)	10,000		163,500
			378,144
IT Consulting & Other Services - 0.4%
RightNow Technologies, Inc. (a)	22,352		354,279
Satyam Computer Services Ltd. sponsored ADR	4,600		122,912
			477,191
TOTAL IT SERVICES			855,335
MACHINERY - 0.2%
Industrial Machinery - 0.2%
Hi-P International Ltd.	441,000		146,852
Shin Zu Shing Co. Ltd.	11,250		69,033
			215,885
MEDIA - 0.0%
Publishing - 0.0%
Gemstar-TV Guide International, Inc. (a)	178		847
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - 18.3%
Semiconductor Equipment - 3.0%
Applied Materials, Inc.	28,900		513,264
Global Unichip Corp.	43,317		293,188
LTX Corp. (a)	43,300		137,694
MEMSIC, Inc.	7,800		79,014
Tessera Technologies, Inc. (a)	26,200		1,089,920
Varian Semiconductor Equipment Associates, Inc. (a)	30,100		1,113,700
			3,226,780
Semiconductors - 15.3%
Advanced Analog Technology, Inc.	48,260		200,897
Advanced Micro Devices, Inc. (a)(d)	99,164		743,730
Altera Corp.	27,300		527,436
Anpec Electronics Corp.	33,509		74,189
Applied Micro Circuits Corp. (a)	22,200		194,028
Atheros Communications, Inc. (a)	14,200		433,668
Atmel Corp. (a)	58,300		251,856
AuthenTec, Inc.	17,800		258,634
Bright Led Electronics Corp.	22,000		55,560
Broadcom Corp. Class A (a)	44,677		1,167,857
Cavium Networks, Inc.	45,091		1,037,995
Conexant Systems, Inc. (a)	225,919		187,513
Cypress Semiconductor Corp. (a)	25,000		900,750
Diodes, Inc. (a)	3,300		99,231
Elan Microelectronics Corp.	20,000		39,223
Epistar Corp.	236,200		1,012,390
Faraday Technology Corp.	30,000		67,068
Formosa Epitaxy, Inc. (a)	148,000		146,038
Global Mixed-mode Technology, Inc.	44,600		292,245
Common Stocks - continued
	Shares		Value
SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT - CONTINUED
Semiconductors - continued
Hittite Microwave Corp. (a)	9,000		$ 429,840
Lanoptics Ltd. (a)	10,700		195,917
Marvell Technology Group Ltd. (a)	268,400		3,752,232
Maxim Integrated Products, Inc.	5,000		132,400
MediaTek, Inc.	10,000		129,818
Microchip Technology, Inc.	11,100		348,762
Mindspeed Technologies, Inc. (a)	396,610		483,864
MoSys, Inc. (a)	3,300		16,005
Omnivision Technologies, Inc. (a)	41,400		647,910
PLX Technology, Inc. (a)	4,600		42,780
PMC-Sierra, Inc. (a)	45,900		300,186
Powertech Technology, Inc.	73,000		259,991
Richtek Technology Corp.	68,950		622,953
Spreadtrum Communications, Inc. ADR (d)	1,200		14,712
Supertex, Inc. (a)	12,268		383,866
Taiwan Semiconductor Co. Ltd.	61,000		91,698
Taiwan Semiconductor Manufacturing Co. Ltd.	414		791
Xilinx, Inc.	23,700		518,319
			16,062,352
TOTAL SEMICONDUCTORS & SEMICONDUCTOR EQUIPMENT			19,289,132
SOFTWARE - 14.6%
Application Software - 3.5%
Ansys, Inc. (a)	8,200		339,972
BladeLogic, Inc.	3,600		106,452
Callidus Software, Inc. (a)	54,919		283,931
Concur Technologies, Inc. (a)	7,800		282,438
Global Digital Creations Holdings Ltd. (a)	1,048,000		228,495
Longtop Financial Technologies Ltd. ADR	15,200		359,936
Mentor Graphics Corp. (a)	8,700		93,786
Salesforce.com, Inc. (a)	18,400		1,153,496
Smith Micro Software, Inc. (a)	55,200		467,544
SuccessFactors, Inc.	700		8,274
Ulticom, Inc. (a)	41,093		328,744
			3,653,068
Home Entertainment Software - 8.3%
Activision, Inc. (a)	29,100		864,270
Gameloft (a)	32,800		287,210
Nintendo Co. Ltd.	10,800		6,397,920
Take-Two Interactive Software, Inc. (a)(d)	45,000		830,250
THQ, Inc. (a)	14,400		405,936
			8,785,586

	Shares		Value
Systems Software - 2.8%
Allot Communications Ltd.	78,200		$ 379,270
Moldflow Corp. (a)	9,600		154,656
Sandvine Corp. (a)	132,100		507,898
Sandvine Corp. (U.K.) (a)	109,688		430,419
VMware, Inc. Class A (d)	17,000		1,444,830
			2,917,073
TOTAL SOFTWARE			15,355,727
TOTAL COMMON STOCKS (Cost $98,467,357)		104,716,076
Convertible Bonds - 0.2%
	Principal Amount
COMMUNICATIONS EQUIPMENT - 0.2%
Communications Equipment - 0.2%
Ciena Corp. 0.25% 5/1/13 (Cost $157,875)	$ 150,000		153,739
Money Market Funds - 3.1%
	Shares
Fidelity Cash Central Fund, 4.58% (b)	1,012,015		1,012,015
Fidelity Securities Lending Cash Central Fund, 4.65% (b)(c)	2,276,980		2,276,980
TOTAL MONEY MARKET FUNDS (Cost $3,288,995)		3,288,995
TOTAL INVESTMENT PORTFOLIO - 102.9% (Cost $101,914,227)			108,158,810
NET OTHER ASSETS - (2.9)%			(3,004,234)
NET ASSETS - 100%		$ 105,154,576

Legend

(a) Non-income producing

(d) Security or a portion of the security is on loan at period end.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 82,011
Fidelity Securities Lending Cash Central Fund	40,900
Total	$ 122,911

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	64.5%
Cayman Islands	8.5%
Taiwan	6.3%
Japan	6.1%
Bermuda	4.2%
Canada	4.0%
Finland	2.1%
Israel	1.4%
China	1.4%
Others (individually less than 1%)	1.5%
	100.0%

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007
Assets
Investment in securities, at value (including securities loaned of $2,243,104) - See accompanying schedule: Unaffiliated issuers (cost $98,625,232)	$ 104,869,815
Fidelity Central Funds (cost $3,288,995)	3,288,995
Total Investments (cost $101,914,227)		$ 108,158,810
Receivable for investments sold		234,804
Receivable for fund shares sold		130,204
Dividends receivable		2,999
Interest receivable		62
Distributions receivable from Fidelity Central Funds		9,723
Prepaid expenses		330
Other receivables		6,690
Total assets		108,543,622

Liabilities
Payable for investments purchased	$ 941,477
Payable for fund shares redeemed	67,852
Accrued management fee	48,996
Other affiliated payables	12,493
Other payables and accrued expenses	41,248
Collateral on securities loaned, at value	2,276,980
Total liabilities		3,389,046

Net Assets		$ 105,154,576
Net Assets consist of:
Paid in capital		$ 86,852,089
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		12,058,882
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		6,243,605
Net Assets		$ 105,154,576

Statement of Assets and Liabilities - continued

	December 31, 2007
Initial Class: Net Asset Value, offering price and redemption price per share ($70,787,657 ÷ 6,424,959 shares)		$ 11.02

Investor Class: Net Asset Value, offering price and redemption price per share ($34,366,919 ÷ 3,133,297 shares)		$ 10.97

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Operations

	Year ended December 31, 2007
Investment Income
Dividends		$ 174,392
Interest		110
Income from Fidelity Central Funds (including $40,900 from security lending)		122,911
Total income		297,413

Expenses
Management fee	$ 465,797
Transfer agent fees	87,482
Accounting and security lending fees	33,234
Custodian fees and expenses	52,743
Independent trustees' compensation	284
Audit	40,263
Legal	624
Miscellaneous	21,617
Total expenses before reductions	702,044
Expense reductions	(11,731)	690,313
Net investment income (loss)		(392,900)
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	13,167,497
Foreign currency transactions	(14,166)
Total net realized gain (loss)		13,153,331
Change in net unrealized appreciation (depreciation) on: Investment securities	(3,983,820)
Assets and liabilities in foreign currencies	(1,007)
Total change in net unrealized appreciation (depreciation)		(3,984,827)
Net gain (loss)		9,168,504
Net increase (decrease) in net assets resulting from operations		$ 8,775,604

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ (392,900)	$ (383,761)
Net realized gain (loss)	13,153,331	6,380,391
Change in net unrealized appreciation (depreciation)	(3,984,827)	(755,167)
Net increase (decrease) in net assets resulting from operations	8,775,604	5,241,463
Distributions to shareholders from net realized gain	(6,094,577)	(7,082,577)
Share transactions - net increase (decrease)	21,800,349	(2,276,220)
Redemption fees	44,921	45,151
Total increase (decrease) in net assets	24,526,297	(4,072,183)

Net Assets
Beginning of period	80,628,279	84,700,462
End of period	$ 105,154,576	$ 80,628,279

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 10.37	$ 10.35	$ 9.37	$ 9.33	$ 5.86
Income from Investment Operations
Net investment income (loss) ^C	(.05)	(.04)	(.02)	.02^F	(.03)
Net realized and unrealized gain (loss)	1.52	.88	1.04	.01	3.49
Total from investment operations	1.47	.84	1.02	.03	3.46
Distributions from net investment income	-	-	(.04)	-	-
Distributions from net realized gain	(.83)	(.83)	-	-	-
Total distributions	(.83)	(.83)	(.04)	-	-
Redemption fees added to paid in capital^C	.01	.01	-^H	.01	.01
Net asset value, end of period	$ 11.02	$ 10.37	$ 10.35	$ 9.37	$ 9.33
Total Return^A,B	15.36%	8.19%	10.88%	.43%	59.22%
Ratios to Average Net Assets^D,G
Expenses before reductions	.81%	.80%	.79%	.75%	.83%
Expenses net of fee waivers, if any	.81%	.80%	.79%	.75%	.83%
Expenses net of all reductions	.79%	.77%	.62%	.68%	.75%
Net investment income (loss)	(.44)%	(.43)%	(.24)%	.24%	(.34)%
Supplemental Data
Net assets, end of period (000 omitted)	$ 70,788	$ 64,689	$ 78,892	$ 116,831	$ 167,274
Portfolio turnover rate^E	213%	269%	249%	118%	129%

^A Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^B Total returns would have been lower had certain expenses not been reduced during the periods shown.

^C Calculated based on average shares outstanding during the period.

^E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^F Investment income per share reflects a special dividend which amounted to $.06 per share.

^H Amount represents less than $.01 per share.

Financial Highlights - Investor Class

Years ended December 31,	2007	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.34	$ 10.33	$ 9.71
Income from Investment Operations
Net investment income (loss)^E	(.06)	(.06)	(.02)
Net realized and unrealized gain (loss)	1.50	.89	.64
Total from investment operations	1.44	.83	.62
Distributions from net realized gain	(.82)	(.83)	-
Redemption fees added to paid in capital^E	.01	.01	-^J
Net asset value, end of period	$ 10.97	$ 10.34	$ 10.33
Total Return^B,C,D	15.15%	8.10%	6.39%
Ratios to Average Net Assets^F,I
Expenses before reductions	.93%	.93%	.97%^A
Expenses net of fee waivers, if any	.93%	.93%	.97%^A
Expenses net of all reductions	.91%	.90%	.80%^A
Net investment income (loss)	(.56)%	(.56)%	(.45)%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 34,367	$ 15,939	$ 5,809
Portfolio turnover rate^G	213%	269%	249%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005.

^J Amount represents less than $.01 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Technology Portfolio (the Fund) is a non-diversified fund of Variable Insurance Products Fund IV (the trust) and is authorized to issue an un-limited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class. The Fund's investments in emerging markets can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Annual Report

3. Significant Accounting Policies - continued

Foreign Currency - continued

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions 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 may include proceeds received from litigation. 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 Fund is 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.

Book-tax differences are primarily due to foreign currency transactions, net operating losses and losses deferred due to wash sales.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 17,305,371
Unrealized depreciation	(11,347,019)
Net unrealized appreciation (depreciation)	5,958,352
Undistributed ordinary income	6,685,441
Undistributed long-term capital gain	5,719,800

Cost for federal income tax purposes	$ 102,200,458

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 3,662,874	$ -
Long-term Capital Gains	2,431,703	7,082,577
Total	$ 6,094,577	$ 7,082,577

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $192,679,244 and $177,071,052, respectively.

6. Fees and Other Transactions with Affiliates.

Initial Class	$ 43,529
Investor Class	43,953
	$ 87,482

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $165 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Annual Report

8. Security Lending.

9. Expense Reductions.

10. Other.

At the end of the period, FMR or its affiliates were the owners of record of 100% of the total outstanding shares of the Fund.

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net realized gain
Initial Class	$ 4,693,279	$ 6,484,203
Investor Class	1,401,298	598,374
Total	$ 6,094,577	$ 7,082,577

Annual Report

Notes to Financial Statements - continued

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	2,595,070	2,223,212	$ 28,838,207	$ 22,500,191
Reinvestment of distributions	484,843	627,099	4,693,279	6,484,203
Shares redeemed	(2,892,839)	(4,236,430)	(29,640,764)	(41,717,781)
Net increase (decrease)	187,074	(1,386,119)	$ 3,890,722	$ (12,733,387)
Investor Class
Shares sold	2,580,889	1,405,935	$ 28,186,641	$ 14,461,192
Reinvestment of distributions	145,212	57,982	1,401,298	598,374
Shares redeemed	(1,134,869)	(484,054)	(11,678,312)	(4,602,399)
Net increase (decrease)	1,591,232	979,863	$ 17,909,627	$ 10,457,167

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Technology Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Technology Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Technology Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 19, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006- present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000- 2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987- 1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002- present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002- 2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006- present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Technology. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007- present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Brian B. Hogan (43)
	Year of Election or Appointment: 2007 Vice President of VIP Technology. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager.
Eric D. Roiter (59)
	Year of Election or Appointment: 2001 Secretary of VIP Technology. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Technology. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Technology. Mr. Ganis also serves as AML officer of other Fidelity funds (2006- present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Technology. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Technology. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Technology. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/ Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Technology. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Technology. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Technology. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Technology. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Technology. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP IV Technology Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

	Pay Date	Record Date	Capital Gains
Initial Class	2/15/08	2/15/08	$1.494
Investor Class	2/15/08	2/15/08	$1.485

The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2007, $5,722,454, or, if sub-sequently determined to be different, the net capital gain of such year.

A percentage of the dividends distributed during the fiscal year for the following classes qualifies for the dividends-received deduction for corporate shareholders:

Initial Class	3.7%
Investor Class	3.7%

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Technology Portfolio

Annual Report

VIP Technology Portfolio

The Board stated that the relative investment performance of Initial Class of the fund compared favorably to its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return was lower than its benchmark. The Board considered that the variations in performance between the fund's classes reflect the variations in class expenses, which result in lower performance for the higher expense class.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Technology Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

The Board noted that the total expenses of each class ranked below its competitive median for 2006.

Annual Report

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank
New York, NY

VTECIC-ANN-0208
1.817385.102

Fidelity® Variable Insurance Products:
Telecommunications Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average annual total returns take VIP Telecommunications Portfolio's cumulative total return and show you what would have happened if VIP Telecommunications Portfolio shares had performed at a constant rate each year. These numbers will be reported once the fund is a year old.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Telecommunications Portfolio - Initial Class on April 24, 2007, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM Index (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Gavin Baker, Portfolio Manager of VIP Telecommunications Portfolio

From its inception on April 24, 2007, through December 31, 2007, the fund underperformed the 2.03% gain of the Morgan Stanley Capital International^SM (MSCI®) US Investable Market Telecommunications Services Index and the S&P 500, which returned 0.53%. (For specific portfolio performance results, please refer to the performance section of this report.) Relative to the MSCI index, the fund was hurt by heavily underweighting integrated telecommunication services stocks AT&T and Verizon, which did well. Poor stock selection in the integrated telecommunication services group detracted as well. The fund also increased its holdings and was overweighted in the alternative carriers group, which underperformed. In terms of individual detractors, alternative carrier Level 3 Communications hurt the fund. Integrated telecom services company Qwest Communications International and Internet software and services stock SAVVIS held back the fund's returns as well. On the other hand, the fund benefited from strong stock selection in the wireless telecommunication services group. Specifically, it was helped by underweighting Sprint Nextel, which performed poorly, and investing in United Kingdom-based Vodafone, a stock not included in the index that did well. The fund's top contributor was application software company Synchronoss Technologies, another out-of-benchmark position.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to
December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 906.60	$ 4.81
Hypothetical^A	$ 1,000.00	$ 1,020.16	$ 5.09
Investor Class
Actual	$ 1,000.00	$ 906.50	$ 5.53**
Hypothetical^A	$ 1,000.00	$ 1,019.41	$ 5.85**

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	1.00%
Investor Class	1.15%

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
AT&T, Inc.	14.2	24.7
Qwest Communications International, Inc.	9.5	9.9
Time Warner Telecom, Inc. Class A (sub. vtg.)	6.8	2.8
Verizon Communications, Inc.	6.7	7.6
Level 3 Communications, Inc.	6.3	4.8
NII Holdings, Inc.	5.3	0.0
Global Crossing Ltd.	5.1	0.6
Synchronoss Technologies, Inc.	4.7	3.7
Vodafone Group PLC sponsored ADR	4.3	2.3
SAVVIS, Inc.	3.6	3.0
	66.5

Top Industries (% of fund's net assets)
As of December 31, 2007
	Diversified Telecommunication Services	59.8%
	Wireless Telecommunication Services	25.4%
	Software	6.9%
	Communications Equipment	4.4%
	Internet Software & Services	3.6%
	All Others*	(0.1)%

* All other industries, short-term investments and net other assets are not included in the pie chart.

As of June 30, 2007
	Diversified Telecommunication Services	59.7%
	Wireless Telecommunication Services	25.9%
	Internet Software & Services	4.9%
	Software	4.9%
	Media	1.5%
	All Others**	3.1%

** Includes short-term investments and net other assets.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 100.3%
	Shares		Value
COMMUNICATIONS EQUIPMENT - 4.4%
Communications Equipment - 4.4%
Aruba Networks, Inc.	3,305		$ 49,278
Infinera Corp.	1,200		17,808
Juniper Networks, Inc. (a)	300		9,960
Sonus Networks, Inc. (a)	700		4,081
Starent Networks Corp.	15,604		284,773
			365,900
DIVERSIFIED TELECOMMUNICATION SERVICES - 59.8%
Alternative Carriers - 19.9%
Cable & Wireless PLC	300		1,109
Cogent Communications Group, Inc. (a)	2,100		49,791
Global Crossing Ltd. (a)	19,103		421,221
Iliad Group SA	635		68,207
Level 3 Communications, Inc. (a)	171,200		520,448
PAETEC Holding Corp. (a)	1,800		17,550
Time Warner Telecom, Inc. Class A (sub. vtg.) (a)	27,558		559,152
			1,637,478
Integrated Telecommunication Services - 39.9%
AT&T, Inc.	28,200		1,171,991
BT Group PLC	103		555
Cbeyond, Inc. (a)	2,586		100,828
Cincinnati Bell, Inc. (a)	9,500		45,125
Embarq Corp.	5,800		287,274
FairPoint Communications, Inc.	2,000		26,040
NTELOS Holdings Corp.	36		1,069
Qwest Communications International, Inc.	111,700		783,017
Telefonica SA	1,200		39,036
Telefonica SA sponsored ADR	2,400		234,216
Telenor ASA	1,400		33,425
Telenor ASA sponsored ADR	70		5,037
Verizon Communications, Inc.	12,700		554,863
Windstream Corp.	1,000		13,020
			3,295,496
TOTAL DIVERSIFIED TELECOMMUNICATION SERVICES			4,932,974
ELECTRONIC EQUIPMENT & INSTRUMENTS - 0.1%
Electronic Manufacturing Services - 0.1%
Trimble Navigation Ltd. (a)	200		6,048
INTERNET SOFTWARE & SERVICES - 3.6%
Internet Software & Services - 3.6%
SAVVIS, Inc. (a)	10,600		295,846
MEDIA - 0.1%
Broadcasting & Cable TV - 0.1%
Virgin Media, Inc.	500		8,570

	Shares		Value
SOFTWARE - 6.9%
Application Software - 4.7%
Synchronoss Technologies, Inc. (a)	10,937		$ 387,607
Home Entertainment Software - 2.2%
Gameloft (a)	17,314		151,608
Glu Mobile, Inc.	5,589		29,175
			180,783
Systems Software - 0.0%
Sandvine Corp. (a)	100		384
TOTAL SOFTWARE			568,774
WIRELESS TELECOMMUNICATION SERVICES - 25.4%
Wireless Telecommunication Services - 25.4%
America Movil SAB de CV Series L sponsored ADR	2,200		135,058
American Tower Corp. Class A (a)	4,900		208,740
Bharti Airtel Ltd. (a)	6,838		172,907
Centennial Communications Corp. Class A (a)	2,400		22,296
Clearwire Corp.	3,400		46,614
Crown Castle International Corp. (a)	5,900		245,440
Leap Wireless International, Inc. (a)	900		41,976
MetroPCS Communications, Inc.	357		6,944
Millicom International Cellular SA (a)	600		70,764
NII Holdings, Inc. (a)	9,000		434,880
Orascom Telecom Holding SAE unit	500		41,500
SBA Communications Corp. Class A (a)	4,836		163,650
Sprint Nextel Corp.	9,100		119,483
Telephone & Data Systems, Inc.	500		31,300
Vodafone Group PLC sponsored ADR	9,600		358,272
			2,099,824
TOTAL COMMON STOCKS (Cost $8,975,873)		8,277,936
Money Market Funds - 0.7%

Fidelity Cash Central Fund, 4.58% (b) (Cost $58,827)	58,827		58,827
TOTAL INVESTMENT PORTFOLIO - 101.0% (Cost $9,034,700)			8,336,763
NET OTHER ASSETS - (1.0)%			(82,532)
NET ASSETS - 100%		$ 8,254,231

Legend

(a) Non-income producing

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 10,634

Other Information

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	79.1%
Bermuda	5.1%
United Kingdom	4.3%
Spain	3.3%
France	2.7%
India	2.1%
Mexico	1.6%
Others (individually less than 1%)	1.8%
	100.0%

Income Tax Information

The fund intends to elect to defer to its fiscal year ending December 31, 2008 approximately $185,327 of losses recognized during the period
November 1, 2007 to December 31, 2007.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $8,975,873)	$ 8,277,936
Fidelity Central Funds (cost $58,827)	58,827
Total Investments (cost $9,034,700)		$ 8,336,763
Cash		7,209
Receivable for investments sold		757
Receivable for fund shares sold		8,078
Dividends receivable		6,813
Distributions receivable from Fidelity Central Funds		361
Prepaid expenses		40
Receivable from investment adviser for expense reductions		5,794
Total assets		8,365,815

Liabilities
Payable for fund shares redeemed	73,888
Accrued management fee	3,941
Other affiliated payables	1,171
Other payables and accrued expenses	32,584
Total liabilities		111,584

Net Assets		$ 8,254,231
Net Assets consist of:
Paid in capital		$ 9,198,192
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(245,429)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		(698,532)
Net Assets		$ 8,254,231

Statement of Assets and Liabilities - continued

	December 31, 2007

Initial Class: Net Asset Value, offering price and redemption price per share ($3,956,478 ÷ 422,536 shares)		$ 9.36

Investor Class: Net Asset Value, offering price and redemption price per share ($4,297,753 ÷ 459,539 shares)		$ 9.35

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Operations

	For the period April 24, 2007 (commencement of operations) to December 31, 2007

Investment Income
Dividends		$ 101,456
Interest		1,810
Income from Fidelity Central Funds		10,634
Total income		113,900

Expenses
Management fee	$ 38,302
Transfer agent fees	11,541
Accounting fees and expenses	2,675
Custodian fees and expenses	12,117
Independent trustees' compensation	21
Audit	32,927
Legal	11
Miscellaneous	2,346
Total expenses before reductions	99,940
Expense reductions	(24,868)	75,072
Net investment income (loss)		38,828
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers (net of foreign taxes of $1,150)	160,712
Foreign currency transactions	374
Total net realized gain (loss)		161,086
Change in net unrealized appreciation (depreciation) on: Investment securities (net of increase in deferred foreign taxes of $593)	(698,530)
Assets and liabilities in foreign currencies	(2)
Total change in net unrealized appreciation (depreciation)		(698,532)
Net gain (loss)		(537,446)
Net increase (decrease) in net assets resulting from operations		$ (498,618)

Statement of Changes in Net Assets

	For the period April 24, 2007 (commencement of operations) to December 31, 2007
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 38,828
Net realized gain (loss)	161,086
Change in net unrealized appreciation (depreciation)	(698,532)
Net increase (decrease) in net assets resulting from operations	(498,618)
Distributions to shareholders from net investment income	(41,369)
Distributions to shareholders from net realized gain	(405,249)
Total distributions	(446,618)
Share transactions - net increase (decrease)	9,194,365
Redemption fees	5,102
Total increase (decrease) in net assets	8,254,231

Net Assets
Beginning of period	-
End of period	$ 8,254,231

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007 ^H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.05
Net realized and unrealized gain (loss)	(.17)
Total from investment operations	(.12)
Distributions from net investment income	(.05)
Distributions from net realized gain	(.48)
Total distributions	(.53)
Redemption fees added to paid in capital ^E	.01
Net asset value, end of period	$ 9.36
Total Return ^{B, C, D}	(1.18)%
Ratios to Average Net Assets ^{F, I}
Expenses before reductions	1.37% ^A
Expenses net of fee waivers, if any	1.00% ^A
Expenses net of all reductions	1.00% ^A
Net investment income (loss)	.63% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 3,956
Portfolio turnover rate ^G	160% ^A

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period April 24, 2007 (commencement of operations) to December 31, 2007.

^I Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

Financial Highlights - Investor Class

Years ended December 31,	2007 ^H
Selected Per-Share Data
Net asset value, beginning of period	$ 10.00
Income from Investment Operations
Net investment income (loss) ^E	.04
Net realized and unrealized gain (loss)	(.17)
Total from investment operations	(.13)
Distributions from net investment income	(.05)
Distributions from net realized gain	(.48)
Total distributions	(.53)
Redemption fees added to paid in capital ^E	.01
Net asset value, end of period	$ 9.35
Total Return ^{B, C, D}	(1.28)%
Ratios to Average Net Assets ^{F, I}
Expenses before reductions	1.50% ^A
Expenses net of fee waivers, if any	1.15% ^A
Expenses net of all reductions	1.15% ^A
Net investment income (loss)	.48% ^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 4,298
Portfolio turnover rate ^G	160% ^A

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period April 24, 2007 (commencement of operations) to December 31, 2007.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Telecommunications Portfolio (the Fund) is a non-diversified fund of Variable Insurance Products Fund IV, (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Annual Report

3. Significant Accounting Policies - continued

Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, losses deferred due to wash sales and excise tax regulations.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 453,845
Unrealized depreciation	(1,212,478)
Net unrealized appreciation (depreciation)	(758,633)

Cost for federal income tax purposes	$ 9,095,396

The tax character of distributions paid was as follows:

	December 31, 2007
Ordinary Income	$ 446,618

New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements
(SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.

Annual Report

Notes to Financial Statements - continued

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $19,296,439 and $10,481,278, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annualized management fee rate was .56% of the Fund's average net assets.

Initial Class	$ 3,778
Investor Class	7,763
	$ 11,541

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

Accounting Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The fee is based on the level of average net assets for the month.

7. Expense Reductions.

The following classes were in reimbursement during the period:

	Expense Limitations	Reimbursement from adviser

Initial Class	1.00%	$ 12,746
Investor Class	1.15%	12,122
		$ 24,868

Effective February 1, 2008, the expense limitation changed to 1.08% for Investor Class.

8. Other.

At the end of the period, FMR or its affiliates were the owners of record of 100% of the total outstanding shares of the Fund.

Annual Report

9. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Year ended December 31,	2007 ^A
From net investment income
Initial Class	$ 19,585
Investor Class	21,784
Total	$ 41,369
From net realized gain
Initial Class	$ 191,851
Investor Class	213,398
Total	$ 405,249

^A For the period April 24, 2007 (commencement of operations) to December 31, 2007.

10. Share Transactions.

Transactions for each class of shares were as follows:

	Shares	Dollars
Years ended December 31,	2007 ^A	2007 ^A
Initial Class
Shares sold	673,203	$ 7,061,076
Reinvestment of distributions	22,280	211,436
Shares redeemed	(272,947)	(2,817,196)
Net increase (decrease)	422,536	$ 4,455,316
Investor Class
Shares sold	695,098	$ 7,280,048
Reinvestment of distributions	24,808	235,182
Shares redeemed	(260,367)	(2,776,181)
Net increase (decrease)	459,539	$ 4,739,049

^A For the period April 24, 2007 (commencement of operations) to December 31, 2007.

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Telecommunications Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Telecommunications Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, and the results of its operations, the changes in its net assets and the financial highlights for the period April 24, 2007 (commencement of operations) through December 31, 2007, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Telecommunications Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audit, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provides a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 19, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Telecommunications. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Brian B. Hogan (43)
	Year of Election or Appointment: 2007 Vice President of VIP Telecommunications. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager.
Eric D. Roiter (59)
	Year of Election or Appointment: 2007 Secretary of VIP Telecommunications. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Telecommunications. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2007 Anti-Money Laundering (AML) officer of VIP Telecommunications. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2007 Chief Financial Officer of VIP Telecommunications. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2007 Chief Compliance Officer of VIP Telecommunications. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2007 Deputy Treasurer of VIP Telecommunications. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2007 Deputy Treasurer of VIP Telecommunications. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Telecommunications. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Telecommunications. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Telecommunications. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Telecommunications. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

Initial Class and Investor Class each designate 16% of the dividends distributed in December 2007 as qualifying for the dividends-received deduction for corporate shareholders.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

State Street Bank and Trust Company
Quincy, MA

VTELP-ANN-0208
1.851004.100

Fidelity® Variable Insurance Products:
Utilities Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 the 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Past 5 years	Life of fund ^A
VIP Utilities - Initial Class ^C	20.67%	22.32%	8.10%
VIP Utilities - Investor Class^B,C	20.53%	22.24%	8.04%

^A From July 19, 2001.

^C Prior to October 1, 2006, VIP Utilities operated under certain different investment policies. The historical performance for the fund may not represent its current investment policies.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Utilities Portfolio - Initial Class on July 19, 2001, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500^SM (S&P 500®) performed over the same period.

Annual Report

Management's Discussion of Fund Performance

Comments from Douglas Simmons, Portfolio Manager of VIP Utilities Portfolio

For the year ending December 31, 2007, the fund solidly outperformed the 17.50% gain of the Morgan Stanley Capital International^SM (MSCI®) US Investable Market Utilities Index and that of the S&P 500. Strong stock selection - primarily in the multi-utilities and electric utilities groups - helped the fund outperform the MSCI index, as did solid security selection and an overweighting in the independent power/energy trading area. The underperformance of a previously held out-of-benchmark position in oil/natural gas storage and transport company Spectra Energy detracted, as did the fund's small cash position. Top contributors included independent power/energy traders Constellation Energy and TXU - headquartered in Maryland and Texas, respectively (TXU was acquired during the period); electric utilities Entergy, with operations in the Southeast, and Pennsylvania-based Allegheny Energy. Underweighting and then selling index components Southern Company - an electric utility that provides power in the Southeast - and Virginia-based multi-utility Dominion Resources also helped. Other detractors included international independent power producer AES as well as untimely ownership of Atlanta-based Mirant and an underweighting in FPL Group, with operations in Florida.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 1,082.40	$ 3.88
Hypothetical^A	$ 1,000.00	$ 1,021.48	$ 3.77
Investor Class
Actual	$ 1,000.00	$ 1,081.80	$ 4.51
Hypothetical^A	$ 1,000.00	$ 1,020.87	$ 4.38

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.74%
Investor Class	.86%

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
PPL Corp.	9.0	4.6
Exelon Corp.	8.5	8.3
Constellation Energy Group, Inc.	7.5	5.9
AES Corp.	7.2	5.4
Entergy Corp.	5.4	4.4
FPL Group, Inc.	4.9	3.8
Allegheny Energy, Inc.	4.4	1.4
FirstEnergy Corp.	4.0	3.7
American Electric Power Co., Inc.	4.0	4.1
NRG Energy, Inc.	3.9	2.8
	58.8

Top Industries (% of fund's net assets)
As of December 31, 2007
	Electric Utilities	51.0%
	Independent Power Producers & Energy Traders	20.9%
	Multi-utilities	18.6%
	Gas Utilities	5.4%
	Water Utilities	0.6%
	All Others*	3.5%


As of June 30, 2007
	Electric Utilities	45.7%
	Multi-utilities	25.1%
	Independent Power Producers & Energy Traders	22.0%
	Gas Utilities	5.3%
	Oil, Gas & Consumable Fuels	1.3%
	All Others*	0.6%

* Includes short-term investments and net other assets.

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 96.7%
	Shares		Value
DIVERSIFIED FINANCIAL SERVICES - 0.2%
Hicks Acquisition Co. I, Inc. unit	23,100		$ 231,000
ELECTRIC UTILITIES - 51.0%
Allegheny Energy, Inc.	88,400		5,623,124
American Electric Power Co., Inc.	107,800		5,019,168
DPL, Inc.	28,400		842,060
Edison International	93,100		4,968,747
Entergy Corp.	57,100		6,824,592
Exelon Corp.	131,900		10,768,316
FirstEnergy Corp.	70,320		5,086,949
FPL Group, Inc.	91,100		6,174,758
Great Plains Energy, Inc.	19,500		571,740
ITC Holdings Corp.	9,700		547,274
Northeast Utilities	36,300		1,136,553
Pepco Holdings, Inc.	40,400		1,184,932
PPL Corp.	218,100		11,360,828
Reliant Energy, Inc. (a)	85,600		2,246,144
Sierra Pacific Resources	52,400		889,752
Westar Energy, Inc.	46,900		1,216,586
			64,461,523
GAS UTILITIES - 5.4%
Energen Corp.	16,100		1,034,103
Equitable Resources, Inc.	29,200		1,555,776
Questar Corp.	34,800		1,882,680
Southern Union Co.	80,600		2,366,416
			6,838,975
INDEPENDENT POWER PRODUCERS & ENERGY TRADERS - 20.9%
AES Corp. (a)	425,350		9,098,237
Constellation Energy Group, Inc.	91,900		9,422,507
Dynegy, Inc. Class A (a)	117,500		838,950
Mirant Corp. (a)	52,400		2,042,552
NRG Energy, Inc. (a)	115,200		4,992,768
			26,395,014

	Shares		Value
MULTI-UTILITIES - 18.6%
Ameren Corp.	11,800		$ 639,678
CenterPoint Energy, Inc.	93,500		1,601,655
CMS Energy Corp.	170,710		2,966,940
OGE Energy Corp.	27,300		990,717
PG&E Corp.	94,000		4,050,460
Public Service Enterprise Group, Inc.	49,400		4,853,056
Sempra Energy	78,300		4,845,204
Wisconsin Energy Corp.	25,900		1,261,589
Xcel Energy, Inc.	102,700		2,317,939
			23,527,238
WATER UTILITIES - 0.6%
Aqua America, Inc.	33,400		708,080
TOTAL COMMON STOCKS (Cost $100,278,254)		122,161,830
Money Market Funds - 3.2%

Fidelity Cash Central Fund, 4.58% (b) (Cost $3,993,512)	3,993,512		3,993,512
TOTAL INVESTMENT PORTFOLIO -99.9% (Cost $104,271,766)			126,155,342
NET OTHER ASSETS - 0.1%			145,879
NET ASSETS - 100%		$ 126,301,221

Legend

(a) Non-income producing

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 259,692
Fidelity Securities Lending Cash Central Fund	24,528
Total	$ 284,220

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007
Assets
Investment in securities, at value - See accompanying schedule: Unaffiliated issuers (cost $100,278,254)	$ 122,161,830
Fidelity Central Funds (cost $3,993,512)	3,993,512
Total Investments (cost $104,271,766)		$ 126,155,342
Receivable for fund shares sold		139,947
Dividends receivable		229,912
Distributions receivable from Fidelity Central Funds		17,935
Prepaid expenses		376
Total assets		126,543,512

Liabilities
Payable for fund shares redeemed	132,911
Accrued management fee	57,645
Other affiliated payables	14,626
Other payables and accrued expenses	37,109
Total liabilities		242,291

Net Assets		$ 126,301,221
Net Assets consist of:
Paid in capital		$ 104,335,594
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		82,051
Net unrealized appreciation (depreciation) on investments		21,883,576
Net Assets		$ 126,301,221

Statement of Assets and Liabilities - continued

	December 31, 2007
Initial Class: Net Asset Value, offering price and redemption price per share ($84,105,098 ÷ 6,423,550 shares)		$ 13.09

Investor Class: Net Asset Value, offering price and redemption price per share ($42,196,123 ÷ 3,233,448 shares)		$ 13.05

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

	Year ended December 31, 2007
Investment Income
Dividends		$ 2,864,426
Interest		1,566
Income from Fidelity Central Funds		284,220
Total income		3,150,212

Expenses
Management fee	$ 738,689
Transfer agent fees	135,073
Accounting and security lending fees	52,894
Custodian fees and expenses	13,324
Independent trustees' compensation	446
Audit	40,673
Legal	884
Interest	10,732
Miscellaneous	13,041
Total expenses before reductions	1,005,756
Expense reductions	(238)	1,005,518
Net investment income (loss)		2,144,694
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers	2,935,558
Foreign currency transactions	(227)
Total net realized gain (loss)		2,935,331
Change in net unrealized appreciation (depreciation) on: Investment securities	12,809,567
Assets and liabilities in foreign currencies	3
Total change in net unrealized appreciation (depreciation)		12,809,570
Net gain (loss)		15,744,901
Net increase (decrease) in net assets resulting from operations		$ 17,889,595

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 2,144,694	$ 1,077,629
Net realized gain (loss)	2,935,331	7,784,777
Change in net unrealized appreciation (depreciation)	12,809,570	4,939,241
Net increase (decrease) in net assets resulting from operations	17,889,595	13,801,647
Distributions to shareholders from net investment income	(2,306,423)	(1,059,729)
Distributions to shareholders from net realized gain	(2,632,223)	(8,079,817)
Total distributions	(4,938,646)	(9,139,546)
Share transactions - net increase (decrease)	17,247,792	53,765,431
Redemption fees	60,056	20,707
Total increase (decrease) in net assets	30,258,797	58,448,239

Net Assets
Beginning of period	96,042,424	37,594,185
End of period	$ 126,301,221	$ 96,042,424

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004	2003
Selected Per-Share Data
Net asset value, beginning of period	$ 11.29	$ 9.53	$ 9.14	$ 7.42	$ 5.95
Income from Investment Operations
Net investment income (loss)^C	.21	.24	.17	.17^F	.08
Net realized and unrealized gain (loss)	2.12	2.76	.71	1.65	1.45
Total from investment operations	2.33	3.00	.88	1.82	1.53
Distributions from net investment income	(.25)	(.14)	(.19)	(.11)	(.08)
Distributions from net realized gain	(.29)	(1.10)	(.30)	-	-
Total distributions	(.54)	(1.24)^J	(.49)^I	(.11)	(.08)
Redemption fees added to paid in capital^C	.01	-^H	-^H	.01	.02
Net asset value, end of period	$ 13.09	$ 11.29	$ 9.53	$ 9.14	$ 7.42
Total Return^A,B	20.67%	31.79%	9.54%	24.61%	26.17%
Ratios to Average Net Assets^D,G
Expenses before reductions	.73%	.81%	.83%	1.04%	1.71%
Expenses net of fee waivers, if any	.73%	.81%	.83%	1.04%	1.50%
Expenses net of all reductions	.73%	.80%	.80%	1.00%	1.46%
Net investment income (loss)	1.65%	2.20%	1.81%	2.03%	1.19%
Supplemental Data
Net assets, end of period (000 omitted)	$ 84,105	$ 77,153	$ 36,444	$ 38,182	$ 11,700
Portfolio turnover rate^E	90%	139%	100%	84%	123%

^ATotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^BTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^CCalculated based on average shares outstanding during the period. ^DFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^EAmount does not include the portfolio activity of any underlying Fidelity Central Funds. ^FInvestment income per share reflects a special dividend which amounted to $.05 per share. ^GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^HAmount represents less than $.01 per share. ^ITotal distributions of $.49 per share is comprised of distributions from net investment income of $.193 and distributions from net realized gain of $.295 per share. ^JTotal distributions of $1.24 per share is comprised of distributions from net investment income of $.139 and distributions from net realized gain of $1.105 per share.

Financial Highlights - Investor Class

Years ended December 31,	2007	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 11.26	$ 9.52	$ 9.72
Income from Investment Operations
Net investment income (loss)^E	.19	.23	.05
Net realized and unrealized gain (loss)	2.12	2.75	.24
Total from investment operations	2.31	2.98	.29
Distributions from net investment income	(.24)	(.13)	(.20)
Distributions from net realized gain	(.29)	(1.10)	(.30)
Total distributions	(.53)	(1.24)^L	(.49)^K
Redemption fees added to paid in capital^E	.01	-^J	-^J
Net asset value, end of period	$ 13.05	$ 11.26	$ 9.52
Total Return^B,C,D	20.53%	31.56%	2.94%
Ratios to Average Net Assets^F,I
Expenses before reductions	.84%	.96%	1.16%^A
Expenses net of fee waivers, if any	.84%	.96%	1.16%^A
Expenses net of all reductions	.84%	.96%	1.12%^A
Net investment income (loss)	1.53%	2.04%	1.09%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 42,196	$ 18,889	$ 1,150
Portfolio turnover rate^G	90%	139%	100%

^AAnnualized ^BTotal returns for periods of less than one year are not annualized. ^CTotal returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown. ^DTotal returns would have been lower had certain expenses not been reduced during the periods shown. ^ECalculated based on average shares outstanding during the period. ^FFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds. ^GAmount does not include the portfolio activity of any underlying Fidelity Central Funds. ^HFor the period July 21, 2005 (commencement of sale of shares) to December 31, 2005. ^IExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class. ^JAmount represents less than $.01 per share. ^KTotal distributions of $.49 per share is comprised of distributions from net investment income of $.196 and distributions from net realized gain of $.295 per share. ^LTotal distributions of $1.24 per share is comprised of distributions from net investment income of $.134 and distributions from net realized gain of $1.105 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Utilities Portfolio (the Fund) is a non-diversified fund of Variable Insurance Products Fund IV (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV for processing shareholder transactions 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 may include proceeds received from litigation. 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 Fund is 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. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Book-tax differences are primarily due to foreign currency transactions and losses deferred due to wash sales.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 23,198,615
Unrealized depreciation	(1,509,166)
Net unrealized appreciation (depreciation)	21,689,449
Undistributed ordinary income	68,213
Undistributed long-term capital gain	207,965

Cost for federal income tax purposes	$ 104,465,893

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 3,081,321	$ 1,980,340
Long-term Capital Gains	1,857,325	7,159,206
Total	$ 4,938,646	$ 9,139,546

New Accounting Pronouncement. In September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Fund's financial statement disclosures.

Annual Report

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities other than short-term securities, aggregated $130,307,392 and $114,050,958, respectively.

6. Fees and Other Transactions with Affiliates.

Initial Class	$ 68,227
Investor Class	66,846
	$ 135,073

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

Borrower or Lender	Average Daily Loan Balance	Weighted Average Interest Rate	Interest Expense
Borrower	$ 6,135,333	5.38%	$ 8,255

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $246 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Annual Report

Notes to Financial Statements - continued

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the 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 the Fund and any additional required collateral is delivered to the Fund on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. At period end, there were no security loans outstanding. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $24,528.

9. Bank Borrowings.

The Fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The 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. The average daily loan balance during the period for which loans were outstanding amounted to $2,011,750. The weighted average interest rate was 5.41%. The interest expense amounted to $2,477 under the bank borrowing program. At period end, there were no bank borrowings outstanding.

10. Expense Reductions.

11. Other.

At the end of the period, FMR or its affiliates were the owners of record of 100% of the total outstanding shares of the Fund.

12. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ 1,565,772	$ 881,642
Investor Class	740,651	178,087
Total	$ 2,306,423	$ 1,059,729

Annual Report

12. Distributions to Shareholders - continued

Years ended December 31,	2007	2006
From net realized gain
Initial Class	$ 1,776,075	$ 6,721,805
Investor Class	856,148	1,358,012
Total	$ 2,632,223	$ 8,079,817

13. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	4,552,813	4,066,520	$ 58,700,689	$ 46,447,146
Reinvestment of distributions	253,185	678,442	3,341,847	7,603,447
Shares redeemed	(5,217,379)	(1,733,462)	(65,354,798)	(18,008,301)
Net increase (decrease)	(411,381)	3,011,500	$ (3,312,262)	$ 36,042,292
Investor Class
Shares sold	3,608,070	1,466,057	$ 46,292,465	$ 16,671,927
Reinvestment of distributions	121,138	136,851	1,596,799	1,536,099
Shares redeemed	(2,173,696)	(45,800)	(27,329,210)	(484,887)
Net increase (decrease)	1,555,512	1,557,108	$ 20,560,054	$ 17,723,139

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Utilities Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Utilities Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Utilities Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 19, 2008

Annual Report

Trustees and Officers

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006- present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000- 2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987- 1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002- present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002- 2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006- present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Utilities. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007- present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Brian B. Hogan (43)
	Year of Election or Appointment: 2007 Vice President of VIP Utilities. Mr. Hogan also serves as Vice President of Sector Funds (2007-present). Mr. Hogan is Senior Vice President of Equity Research (2006-present). Mr. Hogan also serves as Vice President of FMR and FMR Co., Inc. Previously, Mr. Hogan served as a portfolio manager.
Eric D. Roiter (59)
	Year of Election or Appointment: 2001 Secretary of VIP Utilities. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Utilities. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present) and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Utilities. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Utilities. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Utilities. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Utilities. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Utilities. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Utilities. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Utilities. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Utilities. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Utilities. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP Utilities Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

	Pay Date	Record Date	Dividends	Capital Gains
Initial Class	02/15/08	02/15/08	-	$0.03
Investor Class	02/15/08	02/15/08	-	$0.03

The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2007, $2,065,290 or, if subsequently determined to be different, the net capital gain of such year.

Initial Class designates 28% and 92%, Investor Class designates 28% and 95% of the dividends distributed in February and December 2007 respectively as indicated in the Corporate Qualifying memo distributed by the Tax department, respectively during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Utilities Portfolio

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Utilities Portfolio

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

VIP Utilities Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

The Board noted that the total expenses of each class ranked below its competitive median for 2006.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors
(U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

JPMorgan Chase Bank
New York, NY

VTELIC-ANN-0208
1.817391.102

Fidelity® Variable Insurance Products:
Value Leaders Portfolio

Annual Report

December 31, 2007

(2_fidelity_logos) (Registered_Trademark)

Performance	<Click Here>	How the fund has done over time.
Management's Discussion	<Click Here>	The manager's review of fund performance, strategy and outlook.
Shareholder Expense Example	<Click Here>	An example of shareholder expenses.
Investment Changes	<Click Here>	A summary of major shifts in the fund's investments over the past six months.
Investments	<Click Here>	A complete list of the fund's investments with their market values.
Financial Statements	<Click Here>	Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights.
Notes	<Click Here>	Notes to the financial statements.
Report of Independent Registered Public Accounting Firm	<Click Here>
Trustees and Officers	<Click Here>
Distributions	<Click Here>
Board Approval of Investment Advisory Contracts and Management Fees	<Click Here>

Fidelity Variable Insurance Products are separate account options which are purchased through a variable insurance contract.

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 Corp. or an affiliated company.

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-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q 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 or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Performance: The Bottom Line

Average Annual Total Returns

Periods ended December 31, 2007	Past 1 year	Life of fund ^A
VIP® Value Leaders - Initial Class	4.56%	12.67%
VIP Value Leaders - Service Class ^B	4.43%	12.57%
VIP Value Leaders - Service Class 2^C	4.22%	12.38%
VIP Value Leaders - Investor Class^D	4.41%	12.60%

^A From June 17, 2003.

^B Performance for Service Class shares reflects an asset-based service fee (12b-1 fee).

^C Performance for Service Class 2 shares reflects an asset-based service fee (12b-1 fee).

^D The initial offering of Investor Class shares took place on July 21, 2005. Returns prior to July 21, 2005 are those of Initial Class. If Investor Class's transfer agent fee had been reflected, returns prior to July 21, 2005 would have been lower.

$10,000 Over Life of Fund

Let's say hypothetically that $10,000 was invested in VIP Value Leaders Portfolio - Initial Class on June 17, 2003, when the fund started. 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.

Annual Report

Management's Discussion of Fund Performance

Comments from Charles Hebard, Portfolio Manager of VIP Value Leaders Portfolio

For the 12-month period ending December 31, 2007, the fund solidly outperformed the Russell 1000® Value Index, which was down 0.17%. (For specific portfolio performance results, please refer to the performance section of this report.) Energy and financials were, respectively, the strongest- and weakest-performing areas of the benchmark during the period, and my stock selection and positioning in both sectors aided relative results. In the energy area, performance benefited from an emphasis on oilfield services companies and exploration and production (E&P) companies leveraged to North American natural gas. Oilfield services firms National Oilwell Varco and Smith International continued to beat Wall Street analysts' earnings expectations, as they had for several quarters. These stocks benefited from increasing confidence among investors that oil prices would remain high. E&P firm Ultra Petroleum rallied on rising natural gas prices, while coal producer CONSOL Energy benefited from higher coal prices. Smith International, Ultra Petroleum and CONSOL Energy were not index components. On the negative side, underweighting Exxon Mobil and avoiding Chevron detracted from results as these two integrated oil companies, both index components, rose sharply. Elsewhere, I underestimated the severity of the housing crisis, and the fund was hurt was by investments in homebuilders Standard Pacific and KB Home. At period end, Smith International and Standard Pacific were no longer held in the portfolio.

Annual Report

Shareholder Expense Example

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2007 to December 31, 2007).

Actual Expenses

Hypothetical Example for Comparison Purposes

	Beginning Account Value July 1, 2007	Ending Account Value December 31, 2007	Expenses Paid During Period* July 1, 2007 to December 31, 2007
Initial Class
Actual	$ 1,000.00	$ 956.30	$ 3.85
Hypothetical^A	$ 1,000.00	$ 1,021.27	$ 3.97
Service Class
Actual	$ 1,000.00	$ 955.50	$ 4.29
Hypothetical^A	$ 1,000.00	$ 1,020.82	$ 4.43
Service Class 2
Actual	$ 1,000.00	$ 954.50	$ 5.12
Hypothetical^A	$ 1,000.00	$ 1,019.96	$ 5.30
Investor Class
Actual	$ 1,000.00	$ 955.40	$ 4.39
Hypothetical^A	$ 1,000.00	$ 1,020.72	$ 4.53

^A 5% return per year before expenses

	Annualized Expense Ratio
Initial Class	.78%
Service Class	.87%
Service Class 2	1.04%
Investor Class	.89%

Annual Report

Investment Changes

Top Ten Stocks as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
ConocoPhillips	4.6	3.0
Bank of America Corp.	4.3	4.1
AT&T, Inc.	4.0	4.8
American International Group, Inc.	3.7	3.5
General Electric Co.	3.0	2.8
Exxon Mobil Corp.	2.9	2.3
JPMorgan Chase & Co.	2.9	2.4
Procter & Gamble Co.	2.7	1.9
Citigroup, Inc.	2.3	3.7
Verizon Communications, Inc.	2.2	1.2
	32.6
Top Five Market Sectors as of December 31, 2007
	% of fund's net assets	% of fund's net assets 6 months ago
Financials	28.7	31.4
Energy	18.2	16.2
Industrials	9.9	9.9
Telecommunication Services	7.1	6.7
Consumer Staples	6.9	7.1

Asset Allocation (% of fund's net assets)
As of December 31, 2007 *			As of June 30, 2007 **
	Stocks 99.5%			Stocks 99.1%
	Short-Term Investments and Net Other Assets 0.5%			Short-Term Investments and Net Other Assets 0.9%
* Foreign investments		14.3%	** Foreign investments		14.2%

Annual Report

Investments December 31, 2007

Showing Percentage of Net Assets

Common Stocks - 99.5%
	Shares		Value
CONSUMER DISCRETIONARY - 6.7%
Automobiles - 0.3%
Renault SA	1,500		$ 212,365
Diversified Consumer Services - 0.2%
H&R Block, Inc.	10,100		187,557
Hotels, Restaurants & Leisure - 0.4%
McDonald's Corp.	5,540		326,361
Household Durables - 1.6%
Bassett Furniture Industries, Inc.	4,961		46,336
Black & Decker Corp.	3,000		208,950
Centex Corp.	8,900		224,814
KB Home	28,200		609,120
Whirlpool Corp.	1,700		138,771
			1,227,991
Leisure Equipment & Products - 0.6%
Brunswick Corp.	6,300		107,415
Eastman Kodak Co.	8,720		190,706
Mattel, Inc.	9,200		175,168
			473,289
Media - 1.4%
News Corp. Class A	19,400		397,506
Regal Entertainment Group Class A	10,100		182,507
Time Warner, Inc.	31,700		523,367
			1,103,380
Multiline Retail - 0.4%
Sears Holdings Corp. (a)(d)	2,800		285,740
Tuesday Morning Corp.	5,300		26,871
			312,611
Specialty Retail - 1.6%
Advance Auto Parts, Inc.	5,500		208,945
Home Depot, Inc.	5,850		157,599
PetSmart, Inc.	6,900		162,357
Ross Stores, Inc.	10,500		268,485
Staples, Inc.	12,600		290,682
Williams-Sonoma, Inc.	6,800		176,120
			1,264,188
Textiles, Apparel & Luxury Goods - 0.2%
Liz Claiborne, Inc.	6,200		126,170
TOTAL CONSUMER DISCRETIONARY			5,233,912
CONSUMER STAPLES - 6.9%
Food & Staples Retailing - 0.6%
Rite Aid Corp. (a)	37,500		104,625
SUPERVALU, Inc.	5,900		221,368
Winn-Dixie Stores, Inc. (a)	11,700		197,379
			523,372
Food Products - 1.7%
Cermaq ASA	7,400		102,806
Chiquita Brands International, Inc. (a)	13,000		239,070

	Shares		Value
Marine Harvest ASA (a)	176,000		$ 113,026
Nestle SA (Reg.)	1,907		873,406
			1,328,308
Household Products - 2.8%
Central Garden & Pet Co. Class A (non-vtg.) (a)	13,900		74,504
Procter & Gamble Co.	28,500		2,092,470
			2,166,974
Tobacco - 1.8%
Altria Group, Inc.	9,500		718,010
British American Tobacco PLC sponsored ADR	8,900		699,184
			1,417,194
TOTAL CONSUMER STAPLES			5,435,848
ENERGY - 18.2%
Energy Equipment & Services - 2.1%
Expro International Group PLC	7,200		147,774
Exterran Holdings, Inc. (a)	1,947		159,265
Nabors Industries Ltd. (a)	14,800		405,372
National Oilwell Varco, Inc. (a)	7,626		560,206
Transocean, Inc. (a)	2,568		367,609
			1,640,226
Oil, Gas & Consumable Fuels - 16.1%
Chesapeake Energy Corp.	6,700		262,640
ConocoPhillips (d)	40,680		3,592,044
CONSOL Energy, Inc.	8,200		586,464
EnCana Corp.	3,200		217,402
EOG Resources, Inc.	10,300		919,275
EXCO Resources, Inc. (a)	12,100		187,308
Exxon Mobil Corp.	24,100		2,257,929
Hess Corp.	2,600		262,236
Occidental Petroleum Corp.	16,000		1,231,840
Quicksilver Resources, Inc. (a)	6,000		357,540
Suncor Energy, Inc.	3,500		380,137
Ultra Petroleum Corp. (a)	15,900		1,136,850
Uranium One, Inc. (a)	9,800		87,096
Valero Energy Corp.	15,800		1,106,474
			12,585,235
TOTAL ENERGY			14,225,461
FINANCIALS - 28.7%
Capital Markets - 5.4%
Ares Capital Corp.	9,700		141,911
Bear Stearns Companies, Inc. (d)	5,200		458,900
Charles Schwab Corp.	7,968		203,582
Franklin Resources, Inc.	2,300		263,189
Goldman Sachs Group, Inc.	2,700		580,635
Julius Baer Holding AG	3,191		263,547
KKR Private Equity Investors, LP	13,938		249,490
Common Stocks - continued
	Shares		Value
FINANCIALS - continued
Capital Markets - continued
KKR Private Equity Investors, LP Restricted Depositary Units (e)	1,700		$ 30,430
Legg Mason, Inc.	2,500		182,875
Lehman Brothers Holdings, Inc.	18,800		1,230,272
State Street Corp.	7,494		608,513
			4,213,344
Commercial Banks - 2.5%
Associated Banc-Corp.	5,658		153,275
DnB Nor ASA	14,200		216,874
HSBC Holdings PLC sponsored ADR	3,900		326,469
Siam City Bank PCL NVDR	255,000		111,938
Sterling Financial Corp., Washington	7,500		125,925
Unicredito Italiano SpA	25,000		207,198
Wachovia Corp.	22,201		844,304
			1,985,983
Consumer Finance - 0.2%
Discover Financial Services	12,050		181,714
Diversified Financial Services - 9.5%
Bank of America Corp.	80,708		3,330,012
Citigroup, Inc.	61,800		1,819,392
JPMorgan Chase & Co.	51,196		2,234,705
			7,384,109
Insurance - 8.0%
ACE Ltd.	10,520		649,926
Admiral Group PLC	6,400		139,874
AMBAC Financial Group, Inc.	7,141		184,024
American International Group, Inc.	49,760		2,901,008
Argo Group International Holdings, Ltd. (a)	4,952		208,628
Endurance Specialty Holdings Ltd.	5,700		237,861
Hartford Financial Services Group, Inc.	6,000		523,140
IPC Holdings Ltd.	11,938		344,650
MBIA, Inc.	4,300		80,109
Montpelier Re Holdings Ltd.	17,100		290,871
Platinum Underwriters Holdings Ltd.	9,900		352,044
Principal Financial Group, Inc.	5,100		351,084
			6,263,219
Real Estate Investment Trusts - 1.2%
Alexandria Real Estate Equities, Inc.	2,600		264,342
Annaly Capital Management, Inc.	17,800		323,604
General Growth Properties, Inc.	3,570		147,013
Home Properties, Inc.	3,600		161,460
			896,419
Real Estate Management & Development - 0.5%
CB Richard Ellis Group, Inc. Class A (a)	16,900		364,195
Thrifts & Mortgage Finance - 1.4%
Countrywide Financial Corp.	15,700		140,358
Fannie Mae	9,410		376,212
FirstFed Financial Corp. (a)(d)	4,800		171,936

	Shares		Value
New York Community Bancorp, Inc.	13,400		$ 235,572
Washington Federal, Inc.	9,600		202,656
			1,126,734
TOTAL FINANCIALS			22,415,717
HEALTH CARE - 6.0%
Biotechnology - 1.2%
Amgen, Inc. (a)	12,400		575,856
Biogen Idec, Inc. (a)	2,800		159,376
Cephalon, Inc. (a)	2,400		172,224
			907,456
Health Care Equipment & Supplies - 2.1%
Becton, Dickinson & Co.	4,500		376,110
Boston Scientific Corp. (a)	16,700		194,221
C.R. Bard, Inc.	2,600		246,480
Covidien Ltd.	8,082		357,952
Medtronic, Inc.	10,100		507,727
			1,682,490
Life Sciences Tools & Services - 0.2%
Thermo Fisher Scientific, Inc. (a)	3,300		190,344
Pharmaceuticals - 2.5%
Johnson & Johnson	12,200		813,740
Merck & Co., Inc.	15,700		912,327
Wyeth	5,160		228,020
			1,954,087
TOTAL HEALTH CARE			4,734,377
INDUSTRIALS - 9.9%
Aerospace & Defense - 2.9%
General Dynamics Corp.	2,700		240,273
Honeywell International, Inc.	14,200		874,294
Raytheon Co.	4,500		273,150
United Technologies Corp.	11,500		880,210
			2,267,927
Air Freight & Logistics - 0.3%
United Parcel Service, Inc. Class B	3,700		261,664
Airlines - 0.2%
Delta Air Lines, Inc. (a)	7,400		110,186
US Airways Group, Inc. (a)	3,200		47,072
			157,258
Building Products - 0.1%
Masco Corp.	4,900		105,889
Commercial Services & Supplies - 0.8%
Allied Waste Industries, Inc. (a)	23,100		254,562
Robert Half International, Inc.	5,000		135,200
The Brink's Co.	4,500		268,830
			658,592
Construction & Engineering - 0.3%
URS Corp. (a)	3,600		195,588
Common Stocks - continued
	Shares		Value
INDUSTRIALS - continued
Industrial Conglomerates - 3.8%
General Electric Co.	63,740		$ 2,362,842
Siemens AG sponsored ADR	3,700		582,232
			2,945,074
Machinery - 0.8%
Ingersoll-Rand Co. Ltd. Class A	5,300		246,291
Oshkosh Truck Co.	4,200		198,492
Sulzer AG (Reg.)	137		201,275
			646,058
Road & Rail - 0.7%
Knight Transportation, Inc.	17,800		263,618
Ryder System, Inc.	5,200		244,452
			508,070
TOTAL INDUSTRIALS			7,746,120
INFORMATION TECHNOLOGY - 6.5%
Communications Equipment - 0.9%
Alcatel-Lucent SA sponsored ADR	17,200		125,904
Comverse Technology, Inc. (a)	7,800		134,550
Motorola, Inc.	29,300		469,972
			730,426
Computers & Peripherals - 2.4%
Hewlett-Packard Co.	21,900		1,105,512
International Business Machines Corp.	5,300		572,930
NCR Corp. (a)	8,800		220,880
			1,899,322
Electronic Equipment & Instruments - 1.4%
Agilent Technologies, Inc. (a)	6,000		220,440
Amphenol Corp. Class A	1,200		55,644
Avnet, Inc. (a)	5,800		202,826
Flextronics International Ltd. (a)	15,700		189,342
Motech Industries, Inc.	21,975		201,590
Tyco Electronics Ltd.	6,682		248,103
			1,117,945
Internet Software & Services - 0.3%
VeriSign, Inc. (a)	5,700		214,377
IT Services - 0.5%
The Western Union Co.	9,900		240,372
Unisys Corp. (a)	28,902		136,706
			377,078
Semiconductors & Semiconductor Equipment - 1.0%
Analog Devices, Inc.	3,900		123,630
Applied Materials, Inc.	8,600		152,736
Atmel Corp. (a)	6,300		27,216
Maxim Integrated Products, Inc.	6,900		182,712
Novellus Systems, Inc. (a)	6,400		176,448

	Shares		Value
ON Semiconductor Corp. (a)	4,100		$ 36,408
Volterra Semiconductor Corp. (a)	5,400		59,562
			758,712
TOTAL INFORMATION TECHNOLOGY			5,097,860
MATERIALS - 3.7%
Chemicals - 0.7%
Agrium, Inc.	3,200		230,833
Albemarle Corp.	5,010		206,663
Chemtura Corp.	10,400		81,120
			518,616
Metals & Mining - 3.0%
Alcoa, Inc.	13,700		500,735
Allegheny Technologies, Inc.	1,300		112,320
ArcelorMittal SA (NY Reg.) Class A	4,200		324,870
Carpenter Technology Corp.	3,600		270,612
Freeport-McMoRan Copper & Gold, Inc. Class B	3,700		379,028
Goldcorp, Inc.	3,600		122,470
Lihir Gold Ltd. (a)	51,483		162,789
Newcrest Mining Ltd.	6,139		177,984
Randgold Resources Ltd. sponsored ADR	3,400		126,242
Reliance Steel & Aluminum Co.	3,100		168,020
			2,345,070
TOTAL MATERIALS			2,863,686
TELECOMMUNICATION SERVICES - 7.1%
Diversified Telecommunication Services - 6.9%
AT&T, Inc.	74,540		3,097,882
Cincinnati Bell, Inc. (a)	34,400		163,400
Embarq Corp.	3,200		158,496
Qwest Communications International, Inc.	35,500		248,855
Verizon Communications, Inc.	38,800		1,695,172
			5,363,805
Wireless Telecommunication Services - 0.2%
American Tower Corp. Class A (a)	3,950		168,270
TOTAL TELECOMMUNICATION SERVICES			5,532,075
UTILITIES - 5.8%
Electric Utilities - 2.9%
E.ON AG sponsored ADR	3,600		253,260
Edison International	5,600		298,872
Entergy Corp.	6,200		741,024
PPL Corp.	11,300		588,617
Reliant Energy, Inc. (a)	15,700		411,968
			2,293,741
Independent Power Producers & Energy Traders - 2.0%
AES Corp. (a)	12,500		267,375
Common Stocks - continued
	Shares		Value
UTILITIES - continued
Independent Power Producers & Energy Traders - continued
Constellation Energy Group, Inc.	9,300		$ 953,529
NRG Energy, Inc. (a)	8,200		355,388
			1,576,292
Multi-Utilities - 0.9%
CMS Energy Corp.	11,500		199,870
OGE Energy Corp.	6,600		239,514
Sempra Energy	4,100		253,708
			693,092
TOTAL UTILITIES			4,563,125
TOTAL COMMON STOCKS (Cost $72,791,618)		77,848,181
Money Market Funds - 3.5%

Fidelity Cash Central Fund, 4.58% (b)	433,228		433,228
Fidelity Securities Lending Cash Central Fund, 4.65% (b)(c)	2,302,900		2,302,900
TOTAL MONEY MARKET FUNDS (Cost $2,736,128)		2,736,128

TOTAL INVESTMENT PORTFOLIO - 103.0%

(Cost $75,527,746)

80,584,309

NET OTHER ASSETS - (3.0)%		(2,369,342)
NET ASSETS - 100%		$ 78,214,967

Legend

(a) Non-income producing

(d) Security or a portion of the security is on loan at period end.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund	Income earned
Fidelity Cash Central Fund	$ 21,111
Fidelity Securities Lending Cash Central Fund	8,142
Total	$ 29,253

Other Information

Distribution of investments by country of issue, as a percentage of total net assets, is as follows:

United States of America	85.7%
Bermuda	3.0%
Canada	2.9%
United Kingdom	2.2%
Switzerland	1.7%
Germany	1.1%
Others (individually less than 1%)	3.4%
	100.0%

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

	December 31, 2007

Assets
Investment in securities, at value (including securities loaned of $2,245,080) - See accompanying schedule: Unaffiliated issuers (cost $72,791,618)	$ 77,848,181
Fidelity Central Funds (cost $2,736,128)	2,736,128
Total Investments (cost $75,527,746)		$ 80,584,309
Receivable for investments sold		243,161
Receivable for fund shares sold		4,032
Dividends receivable		90,153
Distributions receivable from Fidelity Central Funds		2,392
Prepaid expenses		266
Other receivables		320
Total assets		80,924,633

Liabilities
Payable to custodian bank	$ 21
Payable for investments purchased	78,227
Payable for fund shares redeemed	231,103
Accrued management fee	36,342
Distribution fees payable	1,391
Other affiliated payables	10,610
Other payables and accrued expenses	49,072
Collateral on securities loaned, at value	2,302,900
Total liabilities		2,709,666

Net Assets		$ 78,214,967
Net Assets consist of:
Paid in capital		$ 73,667,882
Undistributed net investment income		9,748
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions		(519,574)
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies		5,056,911
Net Assets		$ 78,214,967

Statement of Assets and Liabilities - continued

	December 31, 2007

Initial Class: Net Asset Value, offering price and redemption price per share ($30,299,977 ÷ 2,182,124 shares)		$ 13.89

Service Class: Net Asset Value, offering price and redemption price per share ($2,577,037 ÷ 185,988 shares)		$ 13.86

Service Class 2: Net Asset Value, offering price and redemption price per share ($5,724,015 ÷ 414,761 shares)		$ 13.80

Investor Class: Net Asset Value, offering price and redemption price per share ($39,613,938 ÷ 2,857,057 shares)		$ 13.87

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Operations

	Year ended December 31, 2007

Investment Income
Dividends		$ 1,728,588
Income from Fidelity Central Funds		29,253
Total income		1,757,841

Expenses
Management fee	$ 474,066
Transfer agent fees	106,522
Distribution fees	15,814
Accounting and security lending fees	33,299
Custodian fees and expenses	40,407
Independent trustees' compensation	293
Audit	55,124
Legal	608
Miscellaneous	12,653
Total expenses before reductions	738,786
Expense reductions	(1,745)	737,041
Net investment income (loss)		1,020,800
Realized and Unrealized Gain (Loss) Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers (net of foreign taxes of $(2))	5,668,145
Foreign currency transactions	13,702
Total net realized gain (loss)		5,681,847
Change in net unrealized appreciation (depreciation) on: Investment securities	(3,353,836)
Assets and liabilities in foreign currencies	286
Total change in net unrealized appreciation (depreciation)		(3,353,550)
Net gain (loss)		2,328,297
Net increase (decrease) in net assets resulting from operations		$ 3,349,097

Statement of Changes in Net Assets

	Year ended December 31, 2007	Year ended December 31, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income (loss)	$ 1,020,800	$ 646,523
Net realized gain (loss)	5,681,847	2,929,131
Change in net unrealized appreciation (depreciation)	(3,353,550)	5,333,793
Net increase (decrease) in net assets resulting from operations	3,349,097	8,909,447
Distributions to shareholders from net investment income	(1,022,650)	(632,567)
Distributions to shareholders from net realized gain	(7,264,777)	(1,820,096)
Total distributions	(8,287,427)	(2,452,663)
Share transactions - net increase (decrease)	5,228,300	24,630,755
Total increase (decrease) in net assets	289,970	31,087,539

Net Assets
Beginning of period	77,924,997	46,837,458
End of period (including undistributed net investment income of $9,748 and undistributed net investment income of $13,644, respectively)	$ 78,214,967	$ 77,924,997

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Initial Class

Years ended December 31,	2007	2006	2005	2004	2003^I
Selected Per-Share Data
Net asset value, beginning of period	$ 14.82	$ 13.30	$ 12.28	$ 11.20	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.20	.15	.13	.10^H	.04
Net realized and unrealized gain (loss)	.48	1.86	1.11	1.59	1.21
Total from investment operations	.68	2.01	1.24	1.69	1.25
Distributions from net investment income	(.21)	(.13)	(.07)	(.08)	(.04)
Distributions from net realized gain	(1.40)	(.37)	(.16)	(.53)	(.01)
Total distributions	(1.61)	(.49)^L	(.22)^K	(.61)	(.05)
Net asset value, end of period	$ 13.89	$ 14.82	$ 13.30	$ 12.28	$ 11.20
Total Return^{B, C, D}	4.56%	15.18%	10.18%	15.15%	12.51%
Ratios to Average Net Assets^{F, J}
Expenses before reductions	.80%	.84%	.98%	2.07%	3.63%^A
Expenses net of fee waivers, if any	.80%	.84%	.85%	1.00%	1.06%^A
Expenses net of all reductions	.80%	.83%	.81%	.96%	1.04%^A
Net investment income (loss)	1.27%	1.09%	1.00%	.88%	.78%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 30,300	$ 42,725	$ 37,465	$ 1,944	$ 1,687
Portfolio turnover rate^G	98%	94%	75%	121%	119%^A

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H Investment income per share reflects a special dividend which amounted to $.02 per share.

^I For the period June 17, 2003 (commencement of operations) to December 31, 2003.

^K Total distributions of $.22 per share is comprised of distributions from net investment income of $.066 and distributions from net realized gain of $.155 per share.

^L Total distributions of $.49 per share is comprised of distributions from net investment income of $.129 and distributions from net realized gain of $.365 per share.

Financial Highlights - Service Class

Years ended December 31,	2007	2006	2005	2004	2003^I
Selected Per-Share Data
Net asset value, beginning of period	$ 14.80	$ 13.28	$ 12.26	$ 11.19	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.18	.14	.10	.09^H	.04
Net realized and unrealized gain (loss)	.48	1.86	1.13	1.59	1.20
Total from investment operations	.66	2.00	1.23	1.68	1.24
Distributions from net investment income	(.20)	(.12)	(.05)	(.08)	(.04)
Distributions from net realized gain	(1.40)	(.37)	(.16)	(.53)	(.01)
Total distributions	(1.60)	(.48)^L	(.21)^K	(.61)	(.05)
Net asset value, end of period	$ 13.86	$ 14.80	$ 13.28	$ 12.26	$ 11.19
Total Return^{B, C, D}	4.43%	15.11%	10.10%	15.08%	12.41%
Ratios to Average Net Assets^{F, J}
Expenses before reductions	.89%	.93%	1.42%	2.17%	3.73%^A
Expenses net of fee waivers, if any	.89%	.93%	.97%	1.10%	1.16%^A
Expenses net of all reductions	.89%	.93%	.93%	1.06%	1.14%^A
Net investment income (loss)	1.18%	1.00%	.78%	.78%	.68%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 2,577	$ 2,458	$ 2,137	$ 1,941	$ 1,687
Portfolio turnover rate^G	98%	94%	75%	121%	119%^A

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H Investment income per share reflects a special dividend which amounted to $.02 per share.

^I For the period June 17, 2003 (commencement of operations) to December 31, 2003.

^K Total distributions of $.21 per share is comprised of distributions from net investment income of $.054 and distributions from net realized gain of $.155 per share.

^L Total distributions of $.48 per share is comprised of distributions from net investment income of $.116 and distributions from net realized gain of $.365 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Service Class 2

Years ended December 31,	2007	2006	2005	2004	2003^I
Selected Per-Share Data
Net asset value, beginning of period	$ 14.75	$ 13.25	$ 12.23	$ 11.18	$ 10.00
Income from Investment Operations
Net investment income (loss)^E	.15	.12	.08	.07^H	.03
Net realized and unrealized gain (loss)	.48	1.84	1.13	1.59	1.20
Total from investment operations	.63	1.96	1.21	1.66	1.23
Distributions from net investment income	(.18)	(.10)	(.04)	(.08)	(.04)
Distributions from net realized gain	(1.40)	(.37)	(.16)	(.53)	(.01)
Total distributions	(1.58)	(.46)^L	(.19)^K	(.61)	(.05)
Net asset value, end of period	$ 13.80	$ 14.75	$ 13.25	$ 12.23	$ 11.18
Total Return^{B, C, D}	4.22%	14.86%	9.98%	14.91%	12.31%
Ratios to Average Net Assets^{F, J}
Expenses before reductions	1.07%	1.14%	1.60%	2.32%	3.88%^A
Expenses net of fee waivers, if any	1.07%	1.10%	1.12%	1.25%	1.32%^A
Expenses net of all reductions	1.06%	1.09%	1.08%	1.21%	1.29%^A
Net investment income (loss)	1.01%	.83%	.63%	.63%	.52%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 5,724	$ 4,467	$ 2,957	$ 2,581	$ 2,247
Portfolio turnover rate^G	98%	94%	75%	121%	119%^A

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H Investment income per share reflects a special dividend which amounted to $.02 per share.

^I For the period June 17, 2003 (commencement of operations) to December 31, 2003.

^K Total distributions of $.19 per share is comprised of distributions from net investment income of $.036 and distributions from net realized gain of $.155 per share.

^L Total distributions of $.46 per share is comprised of distributions from net investment income of $.099 and distributions from net realized gain of $.365 per share.

Financial Highlights - Investor Class

Years ended December 31,	2007	2006	2005^H
Selected Per-Share Data
Net asset value, beginning of period	$ 14.81	$ 13.30	$ 12.72
Income from Investment Operations
Net investment income (loss)^E	.18	.14	.05
Net realized and unrealized gain (loss)	.48	1.86	.61
Total from investment operations	.66	2.00	.66
Distributions from net investment income	(.20)	(.12)	(.05)
Distributions from net realized gain	(1.40)	(.37)	(.03)
Total distributions	(1.60)	(.49)^K	(.08)^J
Net asset value, end of period	$ 13.87	$ 14.81	$ 13.30
Total Return^{B, C, D}	4.41%	15.06%	5.20%
Ratios to Average Net Assets^{F, I}
Expenses before reductions	.91%	.97%	1.15%^A
Expenses net of fee waivers, if any	.91%	.97%	1.00%^A
Expenses net of all reductions	.91%	.96%	.96%^A
Net investment income (loss)	1.16%	.96%	.87%^A
Supplemental Data
Net assets, end of period (000 omitted)	$ 39,614	$ 28,274	$ 4,279
Portfolio turnover rate^G	98%	94%	75%

^A Annualized

^B Total returns for periods of less than one year are not annualized.

^C Total returns do not reflect charges attributable to your insurance company's separate account. Inclusion of these charges would reduce the total returns shown.

^D Total returns would have been lower had certain expenses not been reduced during the periods shown.

^E Calculated based on average shares outstanding during the period.

^G Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

^H For the period July 21, 2005 (commencement of sale of shares) to December 31, 2005.

^J Total distributions of $.08 per share is comprised of distributions from net investment income of $.053 and distributions from net realized gain of $.030 per share.

^K Total distributions of $.49 per share is comprised of distributions from net investment income of $.123 and distributions from net realized gain of $.365 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2007

1. Organization.

VIP Value Leaders Portfolio (the Fund) is a fund of Variable Insurance Products Fund IV(the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Shares of the Fund may only be purchased by insurance companies for the purpose of funding variable annuity or variable life insurance contracts. The Fund offers the following classes of shares: Initial Class shares, Service Class shares, Service Class 2 shares, and Investor Class shares. All classes have equal rights and voting privileges, except for matters affecting a single class. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

3. Significant Accounting Policies.

Annual Report

Notes to Financial Statements - continued

3. Significant Accounting Policies - continued

Foreign Currency - continued

Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. The Fund adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48), on June 29, 2007. FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Fund's federal tax returns for the prior three fiscal years remains subject to examination by the Internal Revenue Service. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Book-tax differences are primarily due to foreign currency transactions, certain foreign taxes, partnerships, passive foreign investment companies (PFIC) and losses deferred due to wash sales and excise tax regulations.

The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows:

Unrealized appreciation	$ 12,184,930
Unrealized depreciation	7,600,933
Net unrealized appreciation (depreciation)	4,583,997
Undistributed ordinary income	77,534

Cost for federal income tax purposes	$ 76,000,312

The tax character of distributions paid was as follows:

	December 31, 2007	December 31, 2006
Ordinary Income	$ 4,137,604	$ 943,513
Long-term Capital Gains	4,149,823	1,509,150
Total	$ 8,287,427	$ 2,452,663

Annual Report

4. Operating Policies.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $82,321,421 and $84,204,858, respectively.

6. Fees and Other Transactions with Affiliates.

For the period, each class paid FDC the following amounts, all of which were re-allowed to insurance companies for the distribution of shares and providing shareholder support services:

Service Class	$ 2,602
Service Class 2	13,212
	$ 15,814

Initial Class	$ 28,032
Service Class	1,732
Service Class 2	4,750
Investor Class	72,008
	$ 106,522

Effective February 1, 2008, the Board of Trustees approved a decrease to Investor Class' asset-based fee from .18% to .15% of average net assets.

Annual Report

Notes to Financial Statements - continued

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $4.2 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 Fund has agreed to pay commitment fees on its pro rata portion of the line of credit, which amounted to $172 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

9. Expense Reductions.

10. Other.

At the end of the period, FMR or its affiliates were the owners of record of 97% of the total outstanding shares of the Fund.

Annual Report

11. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,	2007	2006
From net investment income
Initial Class	$ 414,412	$ 362,794
Service Class	33,342	18,695
Service Class 2	66,023	29,094
Investor Class	508,873	221,984
Total	$ 1,022,650	$ 632,567
From net realized gain
Initial Class	$ 2,949,447	$ 1,031,629
Service Class	236,266	58,819
Service Class 2	513,410	105,568
Investor Class	3,565,654	624,080
Total	$ 7,264,777	$ 1,820,096

12. Share Transactions.

Transactions for each class of shares were as follows:

	Shares		Dollars
Years ended December 31,	2007	2006	2007	2006
Initial Class
Shares sold	386,276	995,302	$ 5,999,493	$ 14,048,028
Reinvestment of distributions	238,214	94,957	3,363,859	1,394,423
Shares redeemed	(1,325,141)	(1,023,701)	(20,301,341)	(14,501,975)
Net increase (decrease)	(700,651)	66,558	$ (10,937,989)	$ 940,476
Service Class
Shares sold	642	-	$ 10,000	$ -
Reinvestment of distributions	19,187	5,288	269,608	77,514
Net increase (decrease)	19,829	5,288	$ 279,608	$ 77,514
Service Class 2
Shares sold	109,446	80,992	$ 1,673,062	$ 1,131,528
Reinvestment of distributions	41,439	9,211	579,433	134,662
Shares redeemed	(39,041)	(10,524)	(613,049)	(147,206)
Net increase (decrease)	111,844	79,679	$ 1,639,446	$ 1,118,984
Investor Class
Shares sold	1,493,436	1,712,304	$ 22,999,503	$ 24,221,597
Reinvestment of distributions	290,097	57,496	4,074,527	846,064
Shares redeemed	(836,226)	(181,703)	(12,826,795)	(2,573,880)
Net increase (decrease)	947,307	1,588,097	$ 14,247,235	$ 22,493,781

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Variable Insurance Products Fund IV and the Shareholders of VIP Value Leaders Portfolio:

In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of VIP Value Leaders Portfolio (a fund of Variable Insurance Products Fund IV) at December 31, 2007, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the VIP Value Leaders Portfolio's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 20, 2008

Annual Report

Trustees and Officers

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) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Members hold office without limit in time, except that any officer and Advisory Board Members 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 fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation
Edward C. Johnson 3d (77)
	Year of Election or Appointment: 1983 Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL). Mr. Edward C. Johnson 3d and Mr. Arthur E. Johnson are not related.
James C. Curvey (72)
	Year of Election or Appointment: 2007 Mr. Curvey also serves as Trustee (2007-present) or Member of the Advisory Board (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. Mr. Curvey joined Fidelity in 1982 and served in numerous senior management positions, including President and Chief Operating Officer of FMR LLC (1997-2000) and President of Fidelity Strategic Investments (2000-2002). In addition, he serves as a member of the Board of Directors of Geerlings & Wade, Inc. (wine distribution).

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation
Dennis J. Dirks (59)
	Year of Election or Appointment: 2005 Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (65)
	Year of Election or Appointment: 2006 Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (71)
	Year of Election or Appointment: 2004 Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (67)
	Year of Election or Appointment: 2007 Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (61)
	Year of Election or Appointment: 2001 Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
	Year of Election or Appointment: 2000 Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (63)
	Year of Election or Appointment: 2005 Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002- present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (68)
	Year of Election or Appointment: 2001 Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
	Year of Election or Appointment: 2005 Mr. Wolfe is Chairman and a Director of Hershey Foods Corporation (2007-present), where prior to his retirement in 2001, he was Chairman and Chief Executive Officer. Mr. Wolfe currently serves as a member of the board of Revlon Inc. (2004-present). Previously, Mr. Wolfe served as a member of the boards of Adelphia Communications Corporation (2003-2006) and Bausch & Lomb, Inc. (1993-2007).

Advisory Board Members and Executive Officers**:

Name, Age; Principal Occupation
Arthur E. Johnson (60)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Johnson serves as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor). In addition, Mr. Johnson serves as a member of the Board of Directors of AGL Resources, Inc. (holding company, 2002-present), and IKON Office Solutions, Inc. (document management systems and services). Mr. Arthur E. Johnson and Mr. Edward C. Johnson 3d are not related.
Alan J. Lacy (54)
	Year of Election or Appointment: 2008 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (a private equity firm). Mr. Lacy also served as Vice Chairman and Chief Executive Officer of Sears Holdings Corporation and Sears, Roebuck and Co. (retail, 2005-2006; 2000-2005). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb (global pharmaceuticals, 2007-present). Mr. Lacy is a Trustee of the National Parks Conservation Association and The Field Museum of Natural History.
Joseph Mauriello (63)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services firm, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance company, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). He also served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).
David M. Thomas (58)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. 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). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products holding company), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).
Michael E. Wiley (57)
	Year of Election or Appointment: 2007 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Wiley also serves as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). He serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production company, 2005-present). In addition, he also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting firm, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment firm), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services company, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production company, 2001-2005).
Peter S. Lynch (63)
	Year of Election or Appointment: 2003 Member of the Advisory Board of Variable Insurance Products Fund IV. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Kimberley H. Monasterio (44)
	Year of Election or Appointment: 2007 President and Treasurer of VIP Value Leaders. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Walter C. Donovan (45)
	Year of Election or Appointment: 2007 Vice President of VIP Value Leaders. Mr. Donovan also serves as Vice President of Fidelity's Equity Funds (2007-present). Mr. Donovan also serves as Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present). Previously, Mr. Donovan served as Vice President of Fidelity's High Income Funds (2005-2007), Fixed-Income Funds (2005-2006), certain Asset Allocation Funds (2005-2006), certain Balanced Funds (2005-2006), and as Vice President and Director of Fidelity's International Equity Trading group (1998-2005).
Bruce T. Herring (42)
	Year of Election or Appointment: 2006 Vice President of VIP Value Leaders. Mr. Herring also serves as Vice President of certain Equity Funds (2006-present). Mr. Herring is Senior Vice President of FMR (2006-present) and Vice President of FMR Co., Inc. (2001-present). Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds (2001-2005).
Eric D. Roiter (59)
	Year of Election or Appointment: 2003 Secretary of VIP Value Leaders. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
John B. McGinty, Jr. (45)
	Year of Election or Appointment: 2008 Assistant Secretary of VIP Value Leaders. Mr. McGinty also serves as Assistant Secretary of other Fidelity funds (2008-present), and is an employee of FMR LLC (2004-present). Mr. McGinty also serves as Senior Vice President, Secretary, and Chief Legal Officer of FDC (2007-present). Before joining Fidelity Investments, Mr. McGinty practiced law at Ropes & Gray, LLP.
R. Stephen Ganis (41)
	Year of Election or Appointment: 2006 Anti-Money Laundering (AML) officer of VIP Value Leaders. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR LLC (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (59)
	Year of Election or Appointment: 2006 Chief Financial Officer of VIP Value Leaders. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (60)
	Year of Election or Appointment: 2004 Chief Compliance Officer of VIP Value Leaders. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (46)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Value Leaders. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (38)
	Year of Election or Appointment: 2005 Deputy Treasurer of VIP Value Leaders. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (41)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Value Leaders. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
	Year of Election or Appointment: 2004 Assistant Treasurer of VIP Value Leaders. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Paul M. Murphy (60)
	Year of Election or Appointment: 2007 Assistant Treasurer of VIP Value Leaders. Mr. Murphy also serves as Assistant Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2007-present). Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity Funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services Group (FPCMS) (1994-2007).
Gary W. Ryan (49)
	Year of Election or Appointment: 2005 Assistant Treasurer of VIP Value Leaders. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).

** FMR Corp. merged with and into FMR LLC on October 1, 2007. Any references to FMR LLC for prior periods are deemed to be references to the prior entity.

Annual Report

Distributions

The Board of Trustees of VIP Value Leaders Portfolio voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

Fund	Pay Date	Record Date	Capital Gains
Initial Class	02/15/08	02/15/08	$.02
Service Class	02/15/08	02/15/08	$.02
Service Class 2	02/15/08	02/15/08	$.02
Investor Class	02/15/08	02/15/08	$.02

The fund hereby designates as a capital gain dividend with respect to the taxable year ended December 31, 2007, $3,497,091, or, if subsequently determined to be different, the net capital gain of such year.

Initial Class designates 18% and 39%; Service Class designates 18% and 40%; Service Class 2 designates 18% and 41%; and Investor Class designates 18% and 40%; of the dividends distributed in February and December, respectively during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

VIP Value Leaders Portfolio

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

VIP Value Leaders Portfolio

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Initial Class of the fund was in the fourth quartile for the one-year period and the second quartile for the three-year period. The Board also stated that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance.

Annual Report

The Board considered two proprietary management fee comparisons for the 12-month (or shorter) periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 8% means that 92% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.

VIP Value Leaders Portfolio

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2006.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each of Initial Class and Service Class ranked below its competitive median for 2006, and the total expenses of each of Investor Class and Service Class 2 ranked above its competitive median for 2006. The Board considered that the total expenses of Investor Class were above the median primarily due to its higher transfer agent fee. The Board noted that the fund offers multiple classes, each of which has a different 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees - continued

The Board further concluded that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Annual Report

Investment Adviser

Fidelity Management & Research Company
Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research (U.K.) Inc.

Fidelity Research & Analysis Company

Fidelity Investments Japan Limited

Fidelity International Investment Advisors

Fidelity International Investment Advisors (U.K.) Limited

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA

Fidelity Service Company, Inc.
Boston, MA

Custodian

Brown Brothers Harriman & Co.
Boston, MA

VVL-ANN-0208
1.796594.104

Item 2. Code of Ethics

As of the end of the period, December 31, 2007, Variable Insurance Products Fund IV (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 Marie L. Knowles is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Ms. Knowles is independent for purposes of Item 3 of Form N-CSR.

Item 4. Principal Accountant Fees and Services

(a) Audit Fees.

For the fiscal years ended December 31, 2007 and December 31, 2006, the aggregate Audit Fees billed by PricewaterhouseCoopers LLP (PwC) for professional services rendered for the audits of the financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal years, for Consumer Discretionary Portfolio, Consumer Staples Portfolio, Energy Portfolio, Financial Services Portfolio, Growth Stock Portfolio, Health Care Portfolio, Industrials Portfolio, International Capital Appreciation Portfolio, Materials Portfolio, Real Estate Portfolio, Technology Portfolio, Telecommunications Portfolio, Utilities Portfolio, and Value Leaders Portfolio, (the funds) and for all funds in the Fidelity Group of Funds are shown in the table below.

Fund	2007^A	2006^A,B
Consumer Discretionary Portfolio	$36,000	$35,000
Consumer Staples Portfolio	$29,000	$0
Energy Portfolio	$36,000	$35,000
Financial Services Portfolio	$37,000	$31,000
Growth Stock Portfolio	$45,000	$43,000
Health Care Portfolio	$34,000	$34,000
Industrials Portfolio	$36,000	$36,000
International Capital Appreciation Portfolio	$43,000	$46,000
Materials Portfolio	$29,000	$0
Real Estate Portfolio	$45,000	$43,000
Technology Portfolio	$35,000	$31,000
Telecommunications Portfolio	$29,000	$0
Utilities Portfolio	$35,000	$34,000
Value Leaders Portfolio	$43,000	$41,000
All funds in the Fidelity Group of Funds audited by PwC	$14,700,000	$13,900,000

^A	Aggregate amounts may reflect rounding.
^B	No Audit Fees were billed by PwC for professional services rendered for the audit of the annual financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements to Consumer Staples Portfolio, Materials Portfolio and Telecommunications Portfolio, as the funds did not commence operations until April 24, 2007.

(b) Audit-Related Fees.

In each of the fiscal years ended December 31, 2007 and December 31, 2006, the aggregate Audit-Related Fees billed by PwC for services rendered for assurance and related services to each fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.

Fund	2007^A	2006 ^A,B
Consumer Discretionary Portfolio	$0	$0
Consumer Staples Portfolio	$0	$0
Energy Portfolio	$0	$0
Financial Services Portfolio	$0	$0
Growth Stock Portfolio	$0	$0
Health Care Portfolio	$0	$0
Industrials Portfolio	$0	$0
International Capital Appreciation Portfolio	$0	$0
Materials Portfolio	$0	$0
Real Estate Portfolio	$0	$0
Technology Portfolio	$0	$0
Telecommunications Portfolio	$0	$0
Utilities Portfolio	$0	$0
Value Leaders Portfolio	$0	$0

^A	Aggregate amounts may reflect rounding.
^B	No Audit-Related Fees were billed by PwC for services rendered for assurance and related services to Consumer Staples Portfolio, Materials Portfolio, and Telecommunications Portfolio that are reasonably related to the performance of the audit or review of the funds' financial statements, but not reported as Audit Fees, as the funds did not commence operations until April 24, 2007.

In each of the fiscal years ended December 31, 2007 and December 31, 2006, the aggregate Audit-Related Fees that were billed by PwC that were required to be approved by the Audit Committee for services rendered on behalf of Fidelity Management & Research Company (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 funds ("Fund Service Providers") for assurance and related services that relate directly to the operations and financial reporting of each fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.

Billed By	2007 ^A	2006^A
PwC	$0	$0

^A	Aggregate amounts may reflect rounding.

Fees included in the audit-related category comprise assurance and related services (e.g., due diligence services) that are traditionally performed by the independent registered public accounting firm. These audit-related services include due diligence related to mergers and acquisitions, accounting consultations and audits in connection with acquisitions, internal control reviews, attest services that are not required by statute or regulation and consultation concerning financial accounting and reporting standards.

In each of the fiscal years ended December 31, 2007 and December 31, 2006, the aggregate Tax Fees billed by PwC for professional services rendered for tax compliance, tax advice, and tax planning for each fund is shown in the table below.

Fund	2007^A	2006^A,B
Consumer Discretionary Portfolio	$2,100	$2,000
Consumer Staples Portfolio	$2,100	$0
Energy Portfolio	$2,100	$2,000
Financial Services Portfolio	$2,100	$2,000
Growth Stock Portfolio	$2,900	$2,700
Health Care Portfolio	$2,100	$2,000
Industrials Portfolio	$2,100	$2,000
International Capital Appreciation Portfolio	$2,900	$2,500
Materials Portfolio	$2,100	$0
Real Estate Portfolio	$2,900	$2,700
Technology Portfolio	$2,100	$2,000
Telecommunications Portfolio	$2,100	$0
Utilities Portfolio	$2,100	$2,000
Value Leaders Portfolio	$2,900	$2,700

^A	Aggregate amounts may reflect rounding.
^B	No Tax Fees were billed by PwC for services rendered for tax compliance, tax advice, and tax planning for Consumer Staples Portfolio, Materials Portfolio and Telecommunications Portfolio as the funds did not commence operations until April 24, 2007.

In each of the fiscal years ended December 31, 2007 and December 31, 2006, the aggregate Tax Fees billed by PwC that were required to be approved by the Audit Committee for professional services rendered on behalf of the Fund Service Providers for tax compliance, tax advice, and tax planning that relate directly to the operations and financial reporting of each fund is shown in the table below.

Billed By	2007^A	2006^A
PwC	$0	$0

^A	Aggregate amounts may reflect rounding.

Fees included in the Tax Fees category comprise all services performed by professional staff in the independent registered public accounting firm's tax division except those services related to the audit. Typically, this category would include fees for tax compliance, tax planning, and tax advice. Tax compliance, tax advice, and tax planning services include preparation of original and amended tax returns, claims for refund and tax payment-planning services, assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.

(d) All Other Fees.

In each of the fiscal years ended December 31, 2007 and December 31, 2006, the aggregate Other Fees billed by PwC for all other non-audit services rendered to the funds is shown in the table below.

Fund	2007^A	2006^A,B
Consumer Discretionary Portfolio	$1,200	$1,200
Consumer Staples Portfolio	$600	$0
Energy Portfolio	$1,500	$1,500
Financial Services Portfolio	$1,200	$1,200
Growth Stock Portfolio	$1,200	$1,200
Health Care Portfolio	$1,300	$1,300
Industrials Portfolio	$1,200	$1,200
International Capital Appreciation Portfolio	$1,200	$1,200
Materials Portfolio	$600	$0
Real Estate Portfolio	$1,400	$1,300
Technology Portfolio	$1,300	$1,200
Telecommunications Portfolio	$600	$0
Utilities Portfolio	$1,300	$1,200
Value Leaders Portfolio	$1,300	$1,200

^A	Aggregate amounts may reflect rounding.
^B	No Other Fees were billed by PwC for all other non-audit services rendered to Consumer Staples Portfolio, Materials Portfolio, and Telecommunications Portfolio, as the funds did not commence operations until April 24, 2007.

In each of the fiscal years ended December 31, 2007 and December 31, 2006, the aggregate Other Fees billed by PwC that were required to be approved by the Audit Committee for all other non-audit services rendered on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund is shown in the table below.

Billed By	2007^A	2006^A
PwC	$215,000	$125,000

^A	Aggregate amounts may reflect rounding.

Fees included in the All Other Fees category include services related to internal control reviews, strategy and other consulting, financial information systems design and implementation, consulting on other information systems, and other tax services unrelated to the fund.

(e) (1)

Audit Committee Pre-Approval Policies and Procedures:

The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm relating to the operations or financial reporting of the funds. 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 trust's 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. Non-audit services provided by a fund audit firm for a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund (Non-Covered Service) but that are expected to exceed $50,000 are also subject to pre-approval by the Audit Committee.

All Covered Services, as well as Non-Covered Services that are expected to exceed $50,000, 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. Neither pre-approval nor advance notice of Non-Covered Service engagements for which fees are not expected to exceed $50,000 is required; such engagements are to be reported to the Audit Committee monthly.

(e) (2)

Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:

Audit-Related Fees:

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2007 and December 31, 2006 on behalf of each fund.

There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2007 and December 31, 2006 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.

Tax Fees:

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2007 and December 31, 2006 on behalf of each fund.

All Other Fees:

There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended December 31, 2007 and December 31, 2006 on behalf of each fund.

(f) Not applicable.

(g) For the fiscal years ended December 31, 2007 and December 31, 2006, the aggregate fees billed by PwC of $1,520,000^A and $1,355,000^Afor non-audit services rendered on behalf of the funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and Fund Service Providers relating to Covered Services and Non-Covered Services are shown in the table below.

	2007^A	2006^A
Covered Services	$265,000	$165,000
Non-Covered Services	$1,255,000	$1,190,000

^A	Aggregate amounts may reflect rounding.

(h) The trust's Audit Committee has considered Non-Covered 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 audit of the funds, taking into account representations from PwC, in accordance with Independence Standards Board Standard No.1, regarding its independence from the funds and their related entities.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Schedule of Investments

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 second fiscal quarter of 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. 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)	Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
(a)	(3)	Not applicable.
(b)		Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

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.

Variable Insurance Products Fund IV

By:	/s/Kimberley Monasterio
	Kimberley Monasterio
	President and Treasurer

Date:	February 29, 2008

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/Kimberley Monasterio
	Kimberley Monasterio
	President and Treasurer

Date:	February 29, 2008

By:	/s/Joseph B. Hollis
	Joseph B. Hollis
	Chief Financial Officer

Date:	February 29, 2008

Contents

Performance: The Bottom Line

Management's Discussion of Fund Performance

Shareholder Expense Example

Investment Changes

Investments December 31, 2007

Financial Statements

Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

Trustees and Officers

Distributions

Board Approval of Investment Advisory Contracts and Management Fees

Contents

Performance: The Bottom Line

Management's Discussion of Fund Performance

Shareholder Expense Example

Investment Changes

Investments December 31, 2007

Financial Statements

Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

Trustees and Officers

Distributions

Contents

Performance: The Bottom Line

Management's Discussion of Fund Performance

Shareholder Expense Example

Investment Changes

Investments December 31, 2007

Financial Statements

Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

Trustees and Officers

Distributions

Board Approval of Investment Advisory Contracts and Management Fees

Contents

Performance: The Bottom Line

Management's Discussion of Fund Performance

Shareholder Expense Example

Investment Changes

Investments December 31, 2007

Financial Statements

Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

Trustees and Officers

Distributions

Board Approval of Investment Advisory Contracts and Management Fees

Contents

Performance: The Bottom Line

Management's Discussion of Fund Performance

Shareholder Expense Example

Investment Changes

Investments December 31, 2007

Financial Statements

Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

Trustees and Officers

Distributions

Board Approval of Investment Advisory Contracts and Management Fees

Contents

Performance: The Bottom Line

Management's Discussion of Fund Performance

Shareholder Expense Example

Investment Changes

Investments December 31, 2007

Financial Statements

Notes to Financial Statements

Report of Independent Registered Public Accounting Firm

Trustees and Officers

Distributions

Board Approval of Investment Advisory Contracts and Management Fees

Contents

Performance: The Bottom Line

Management's Discussion of Fund Performance

Shareholder Expense Example

Investment Changes

Investments December 31, 2007

Financial Statements

Notes to Financial Statements

Report of Independent Registered Public Accounting Firm