N-Q 1 main.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-5511

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

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

Scott C. Goebel, 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:

September 30, 2008

Item 1. Schedule of Investments

Quarterly Holdings Report

for

Fidelity® Variable Insurance Products:
Contrafund® Portfolio

September 30, 2008 

1.808782.104

VIPCON-QTLY-1108

Investments September 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 97.9%

Shares

Value

CONSUMER DISCRETIONARY - 7.9%

Auto Components - 0.3%

Gentex Corp.

2,185,100

$ 31,246,930

Johnson Controls, Inc.

879,500

26,675,235

 

57,922,165

Automobiles - 0.2%

Renault SA

203,600

12,970,690

Toyota Motor Corp. sponsored ADR

199,900

17,151,420

 

30,122,110

Distributors - 0.3%

Li & Fung Ltd.

22,358,000

54,712,126

Diversified Consumer Services - 0.2%

Hillenbrand, Inc.

72,146

1,454,463

New Oriental Education & Technology Group, Inc. sponsored ADR (a)

415,800

26,710,992

 

28,165,455

Hotels, Restaurants & Leisure - 0.8%

McDonald's Corp.

2,529,084

156,044,483

Household Durables - 0.2%

D.R. Horton, Inc.

1,307,200

17,019,744

Harman International Industries, Inc.

411,700

14,026,619

Whirlpool Corp.

171,800

13,622,022

 

44,668,385

Internet & Catalog Retail - 0.0%

Amazon.com, Inc. (a)

11,000

800,360

Priceline.com, Inc. (a)

81,700

5,590,731

 

6,391,091

Leisure Equipment & Products - 0.4%

Nikon Corp. (d)

3,080,000

73,914,017

Media - 2.7%

Ascent Media Corp. (a)

26,100

637,101

Central European Media Enterprises Ltd. Class A (a)

605,700

39,612,780

Comcast Corp. Class A

4,846,700

95,140,721

Liberty Global, Inc. Class A (a)

882,400

26,736,720

News Corp. Class A

3,114,900

37,347,651

Omnicom Group, Inc.

1,210,700

46,684,592

The DIRECTV Group, Inc. (a)

1,029,500

26,942,015

The Walt Disney Co.

1,162,043

35,663,100

The Weinstein Co. II Holdings, LLC Class A-1 (h)

11,499

8,624,250

Time Warner Cable, Inc. (a)

1,892,500

45,798,500

Time Warner, Inc.

7,500,400

98,330,244

Viacom, Inc. Class B (non-vtg.) (a)

1,384,500

34,390,980

 

495,908,654

Multiline Retail - 0.5%

Kohl's Corp. (a)

642,500

29,606,400

Target Corp. (d)

1,092,500

53,587,125

 

83,193,525

 

Shares

Value

Specialty Retail - 1.3%

Abercrombie & Fitch Co. Class A

193,800

$ 7,645,410

Lowe's Companies, Inc.

3,673,000

87,013,370

MarineMax, Inc. (a)

104,842

758,008

OfficeMax, Inc.

519,600

4,619,244

PetSmart, Inc.

919,100

22,710,961

Ross Stores, Inc.

545,700

20,087,217

Tiffany & Co., Inc.

489,600

17,390,592

TJX Companies, Inc. (d)

2,414,252

73,682,971

Zumiez, Inc. (a)(d)

1,031,020

16,991,210

 

250,898,983

Textiles, Apparel & Luxury Goods - 1.0%

Carter's, Inc. (a)

989,500

19,522,835

LVMH Moet Hennessy - Louis Vuitton

469,200

41,178,170

NIKE, Inc. Class B

823,600

55,098,840

Polo Ralph Lauren Corp. Class A

909,574

60,614,011

Ports Design Ltd.

3,909,500

7,160,548

Under Armour, Inc. Class A (sub. vtg.) (a)(d)

243,915

7,746,740

 

191,321,144

TOTAL CONSUMER DISCRETIONARY

1,473,262,138

CONSUMER STAPLES - 13.1%

Beverages - 4.2%

Coca-Cola FEMSA SAB de CV sponsored ADR

586,800

29,609,928

Coca-Cola Hellenic Bottling Co. SA sponsored ADR

754,650

16,783,416

Coca-Cola Icecek AS

693,000

5,646,063

Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR

223,700

12,216,257

Constellation Brands, Inc. Class A (sub. vtg.) (a)

1,286,700

27,612,582

Diageo PLC sponsored ADR

496,100

34,161,446

Embotelladora Andina SA
sponsored ADR

738,500

10,708,250

Fomento Economico Mexicano SA de CV sponsored ADR

145,600

5,553,184

Heineken NV (Bearer)

226,600

9,100,949

InBev SA

574,317

34,156,680

Molson Coors Brewing Co. Class B

1,032,400

48,264,700

PepsiCo, Inc.

3,339,062

237,974,949

Pernod Ricard SA

344,700

30,354,187

SABMiller PLC

1,560,500

30,470,814

The Coca-Cola Co.

4,720,809

249,636,380

 

782,249,785

Food & Staples Retailing - 2.6%

Costco Wholesale Corp.

792,900

51,482,997

CVS Caremark Corp.

4,472,900

150,557,814

Kroger Co.

832,800

22,885,344

Safeway, Inc.

1,159,000

27,491,480

Sysco Corp.

851,500

26,251,745

Common Stocks - continued

Shares

Value

CONSUMER STAPLES - continued

Food & Staples Retailing - continued

Wal-Mart Stores, Inc.

2,082,300

$ 124,708,947

Walgreen Co.

2,089,800

64,700,208

X5 Retail Group NV GDR (a)(f)

404,864

8,562,874

 

476,641,409

Food Products - 2.0%

Archer Daniels Midland Co.

1,197,300

26,232,843

Bunge Ltd. (d)

250,700

15,839,226

Cadbury PLC sponsored ADR

100,000

4,094,000

Green Mountain Coffee Roasters, Inc. (a)

659,901

25,960,505

Groupe Danone

411,756

29,196,261

Kraft Foods, Inc. Class A

1,757,600

57,561,400

Lindt & Spruengli AG

200

5,413,678

Marine Harvest ASA (a)(d)

10,742,000

5,359,116

Nestle SA (Reg.)

2,259,123

97,642,420

Perdigao SA (ON)

273,400

5,180,997

Sadia SA ADR (d)

386,500

3,621,505

SLC Agricola SA

731,300

6,150,708

Tyson Foods, Inc. Class A

978,300

11,680,902

Unilever NV (NY Shares)

2,197,500

61,881,600

Viterra, Inc. (a)

589,100

5,628,661

Wimm-Bill-Dann Foods OJSC sponsored ADR

87,100

6,184,100

 

367,627,922

Household Products - 3.3%

Colgate-Palmolive Co.

1,121,523

84,506,758

Energizer Holdings, Inc. (a)

95,900

7,724,745

Kimberly-Clark Corp.

1,353,300

87,747,972

Procter & Gamble Co.

6,382,511

444,797,192

 

624,776,667

Personal Products - 0.5%

Avon Products, Inc.

2,018,400

83,904,888

Bare Escentuals, Inc. (a)(d)

520,000

5,652,400

Herbalife Ltd.

144,500

5,710,640

 

95,267,928

Tobacco - 0.5%

British American Tobacco PLC sponsored ADR

1,374,800

85,237,600

Souza Cruz Industria Comerico

572,700

13,550,202

 

98,787,802

TOTAL CONSUMER STAPLES

2,445,351,513

ENERGY - 11.5%

Energy Equipment & Services - 4.2%

Atwood Oceanics, Inc. (a)

507,700

18,480,280

BJ Services Co.

813,500

15,562,255

ENSCO International, Inc.

691,200

39,833,856

 

Shares

Value

Exterran Holdings, Inc. (a)

440,523

$ 14,079,115

Global Industries Ltd. (a)

2,355,300

16,345,782

Nabors Industries Ltd. (a)

1,977,326

49,274,964

National Oilwell Varco, Inc. (a)

3,753,754

188,551,063

Parker Drilling Co. (a)

2,392,800

19,190,256

Petroleum Geo-Services ASA (a)

3,100,879

40,965,567

Schlumberger Ltd. (NY Shares)

1,136,500

88,749,285

Smith International, Inc.

1,217,000

71,364,880

Transocean, Inc. (a)

383,500

42,123,640

Weatherford International Ltd. (a)

5,779,500

145,296,630

Willbros Group, Inc. (a)

1,131,800

29,992,700

 

779,810,273

Oil, Gas & Consumable Fuels - 7.3%

Cabot Oil & Gas Corp.

1,083,373

39,153,100

Canadian Natural Resources Ltd.

2,064,094

141,562,253

Chesapeake Energy Corp.

536,300

19,231,718

Chevron Corp.

1,246,600

102,819,568

Comstock Resources, Inc. (a)

1,510,500

75,600,525

Concho Resources, Inc. (a)

4,148,900

114,551,129

ConocoPhillips

1,274,900

93,386,425

CONSOL Energy, Inc.

45,100

2,069,639

Continental Resources, Inc. (a)

454,200

17,818,266

Denbury Resources, Inc. (a)

3,087,708

58,789,960

Energy Resources of Australia Ltd. (d)

510,627

6,946,554

Hess Corp.

677,600

55,617,408

Nexen, Inc.

227,000

5,267,663

Occidental Petroleum Corp.

302,200

21,289,990

Petrohawk Energy Corp. (a)

8,278,501

179,063,977

Quicksilver Resources, Inc. (a)

1,229,900

24,142,937

Range Resources Corp.

140,000

6,001,800

Reliance Industries Ltd.

440,000

18,550,013

Southwestern Energy Co. (a)

612,000

18,690,480

Suncor Energy, Inc.

304,900

12,603,908

Sunoco, Inc. (d)

1,784,600

63,496,068

Valero Energy Corp.

5,407,667

163,852,310

Williams Companies, Inc.

5,567,600

131,673,740

 

1,372,179,431

TOTAL ENERGY

2,151,989,704

FINANCIALS - 14.8%

Capital Markets - 1.8%

BlackRock, Inc. Class A

97,232

18,911,624

Charles Schwab Corp.

6,416,162

166,820,212

Janus Capital Group, Inc.

749,927

18,208,228

Merrill Lynch & Co., Inc.

2,860,442

72,369,183

Morgan Stanley

2,273,200

52,283,600

 

328,592,847

Commercial Banks - 4.1%

Bangkok Bank Ltd. PCL (For. Reg.)

16,909,600

51,845,812

HSBC Holdings PLC (Hong Kong) (Reg.)

7,675,600

122,587,755

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Commercial Banks - continued

Huntington Bancshares, Inc. (d)

2,154,921

$ 17,217,819

Mitsubishi UFJ Financial Group, Inc.

12,944,400

112,920,860

National City Corp.

1,000,000

1,750,000

PNC Financial Services Group, Inc.

637,640

47,631,708

Standard Chartered PLC (United Kingdom)

1,172,800

28,859,829

Sumitomo Mitsui Financial Group, Inc.

23,564

147,793,961

Uniao de Bancos Brasileiros SA (Unibanco) GDR

350,000

35,322,000

Wells Fargo & Co.

5,383,700

202,050,261

 

767,980,005

Consumer Finance - 0.8%

Capital One Financial Corp. (d)

1,358,242

69,270,342

Discover Financial Services

2,923,093

40,397,145

Promise Co. Ltd. (d)

732,350

14,176,429

SLM Corp. (a)

1,660,208

20,486,967

 

144,330,883

Diversified Financial Services - 3.4%

Citigroup, Inc.

8,000,000

164,080,000

JPMorgan Chase & Co.

10,061,398

469,867,287

 

633,947,287

Insurance - 3.7%

ACE Ltd.

2,106,600

114,030,258

AFLAC, Inc.

475,718

27,948,433

Berkshire Hathaway, Inc. Class A (a)

452

59,031,200

Marsh & McLennan Companies, Inc.

2,237,800

71,072,528

MetLife, Inc. (d)

3,016,303

168,912,968

PartnerRe Ltd.

504,563

34,355,695

Reinsurance Group of America, Inc. Class B (a)

578,884

27,450,679

Sony Financial Holdings, Inc.

37,475

147,600,448

Unum Group

1,862,900

46,758,790

 

697,160,999

Real Estate Investment Trusts - 0.6%

Public Storage

308,200

30,514,882

Vornado Realty Trust

887,450

80,713,578

 

111,228,460

Real Estate Management & Development - 0.2%

Brookfield Properties Corp.

710,000

11,246,403

Sun Hung Kai Properties Ltd.

3,260,000

32,860,800

 

44,107,203

Thrifts & Mortgage Finance - 0.2%

Hudson City Bancorp, Inc.

1,912,500

35,285,625

TOTAL FINANCIALS

2,762,633,309

HEALTH CARE - 13.1%

Biotechnology - 2.2%

Acorda Therapeutics, Inc. (a)

452,000

10,780,200

 

Shares

Value

Amgen, Inc. (a)

1,600,000

$ 94,832,000

Biogen Idec, Inc. (a)

581,200

29,228,548

Celgene Corp. (a)

379,346

24,005,015

Cephalon, Inc. (a)

200,000

15,498,000

CSL Ltd.

958,328

29,030,603

Genentech, Inc. (a)

525,769

46,625,195

Genzyme Corp. (a)

825,000

66,734,250

Gilead Sciences, Inc. (a)

1,401,906

63,898,875

ImClone Systems, Inc. (a)

100,000

6,244,000

ONYX Pharmaceuticals, Inc. (a)

350,000

12,663,000

United Therapeutics Corp. (a)

55,770

5,865,331

 

405,405,017

Health Care Equipment & Supplies - 3.3%

Alcon, Inc.

499,883

80,736,103

American Medical Systems Holdings, Inc. (a)

700,500

12,440,880

Baxter International, Inc.

2,283,700

149,879,231

Boston Scientific Corp. (a)

1,375,600

16,878,612

C.R. Bard, Inc.

350,000

33,204,500

Covidien Ltd.

3,362,616

180,774,236

Edwards Lifesciences Corp. (a)

202,300

11,684,848

Gen-Probe, Inc. (a)

221,921

11,772,909

Hospira, Inc. (a)

350,000

13,370,000

Immucor, Inc. (a)

147,912

4,727,268

Mako Surgical Corp. (d)

588,756

4,539,309

Medtronic, Inc.

1,713,100

85,826,310

Stryker Corp.

270,100

16,827,230

 

622,661,436

Health Care Providers & Services - 1.6%

Cardinal Health, Inc.

250,000

12,320,000

Humana, Inc. (a)

257,726

10,618,311

McKesson Corp.

498,200

26,808,142

Medco Health Solutions, Inc. (a)

2,232,092

100,444,140

Tenet Healthcare Corp. (a)

9,828,570

54,548,564

UnitedHealth Group, Inc.

1,291,111

32,781,308

Universal Health Services, Inc. Class B

800,000

44,824,000

WellPoint, Inc. (a)

350,000

16,369,500

 

298,713,965

Health Care Technology - 0.3%

Eclipsys Corp. (a)

600,000

12,570,000

HLTH Corp. (a)

3,692,712

42,207,698

 

54,777,698

Life Sciences Tools & Services - 0.5%

Charles River Laboratories International, Inc. (a)

175,000

9,717,750

Illumina, Inc. (a)

152,400

6,176,772

Pharmaceutical Product Development, Inc.

475,000

19,641,250

QIAGEN NV (a)

2,070,001

40,841,120

Thermo Fisher Scientific, Inc. (a)

400,000

22,000,000

 

98,376,892

Common Stocks - continued

Shares

Value

HEALTH CARE - continued

Pharmaceuticals - 5.2%

Abbott Laboratories

3,921,317

$ 225,789,433

Allergan, Inc.

1,369,006

70,503,809

Alpharma, Inc. Class A (a)

300,000

11,067,000

Johnson & Johnson

2,271,900

157,397,232

Merck & Co., Inc.

2,726,450

86,046,762

Novo Nordisk AS Series B

494,000

25,604,055

Pfizer, Inc.

9,107,000

167,933,080

Pronova BioPharma ASA

2,000,000

6,609,556

Schering-Plough Corp.

2,614,838

48,296,058

Valeant Pharmaceuticals International (a)(d)

915,300

18,736,191

Wyeth

3,947,500

145,820,650

XenoPort, Inc. (a)

136,202

6,604,435

 

970,408,261

TOTAL HEALTH CARE

2,450,343,269

INDUSTRIALS - 11.7%

Aerospace & Defense - 2.9%

General Dynamics Corp.

606,246

44,631,831

Honeywell International, Inc.

2,020,900

83,968,395

Lockheed Martin Corp.

1,908,287

209,281,835

Raytheon Co.

2,556,300

136,787,613

United Technologies Corp.

1,041,500

62,552,490

 

537,222,164

Air Freight & Logistics - 1.4%

C.H. Robinson Worldwide, Inc.

2,233,601

113,824,307

FedEx Corp.

191,800

15,159,872

United Parcel Service, Inc. Class B

2,180,200

137,112,778

 

266,096,957

Building Products - 0.0%

Masco Corp.

120,300

2,158,182

Commercial Services & Supplies - 0.7%

Stericycle, Inc. (a)

2,301,000

135,551,910

Construction & Engineering - 0.7%

Fluor Corp.

479,500

26,708,150

Jacobs Engineering Group, Inc. (a)

738,438

40,104,568

Quanta Services, Inc. (a)(d)

2,020,100

54,562,901

 

121,375,619

Electrical Equipment - 2.0%

ABB Ltd. sponsored ADR

1,587,300

30,793,620

Alstom SA

917,400

69,614,530

China High Speed Transmission Equipment Group Co. Ltd.

2,811,000

5,144,787

Q-Cells AG (a)

709,000

59,430,811

SolarWorld AG

515,500

21,690,239

Sunpower Corp.:

Class A (a)

227,000

16,101,110

 

Shares

Value

Class B (a)

31,900

$ 2,202,695

Suntech Power Holdings Co. Ltd. sponsored ADR (a)(d)

3,296,800

118,256,216

Vestas Wind Systems AS (a)

492,100

42,942,770

 

366,176,778

Industrial Conglomerates - 0.6%

General Electric Co.

879,200

22,419,600

Siemens AG sponsored ADR

972,900

91,345,581

 

113,765,181

Machinery - 2.9%

Caterpillar, Inc.

409,569

24,410,312

Cummins, Inc.

1,284,300

56,149,596

Danaher Corp.

1,954,550

135,645,770

Deere & Co.

1,590,800

78,744,600

Eaton Corp.

1,265,300

71,084,554

Illinois Tool Works, Inc.

910,200

40,458,390

Navistar International Corp. (a)

896,700

48,583,206

Sulzer AG (Reg.)

672,460

71,554,279

Vallourec SA

113,000

24,374,243

 

551,004,950

Road & Rail - 0.5%

Union Pacific Corp.

1,239,100

88,174,356

TOTAL INDUSTRIALS

2,181,526,097

INFORMATION TECHNOLOGY - 15.6%

Communications Equipment - 2.6%

Ciena Corp. (a)(d)(e)

5,881,358

59,284,089

Cisco Systems, Inc. (a)

2,896,200

65,338,272

Harris Corp.

500,000

23,100,000

Juniper Networks, Inc. (a)

13,223,200

278,612,824

Sycamore Networks, Inc. (a)(e)

20,006,456

64,620,853

ZTE Corp. (H Shares) (a)

800,000

3,030,317

 

493,986,355

Computers & Peripherals - 2.7%

Apple, Inc. (a)

3,635,000

413,154,100

SanDisk Corp. (a)

4,789,500

93,634,725

 

506,788,825

Electronic Equipment & Components - 0.2%

Hon Hai Precision Industry Co. Ltd. (Foxconn)

2,926,500

10,455,858

Itron, Inc. (a)

305,200

27,019,356

 

37,475,214

Internet Software & Services - 1.1%

eBay, Inc. (a)

4,629,700

103,612,686

Google, Inc. Class A (sub. vtg.) (a)

155,403

62,242,010

VistaPrint Ltd. (a)

1,056,040

34,680,354

 

200,535,050

IT Services - 0.6%

Visa, Inc.

1,869,300

114,756,327

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - 3.8%

Applied Materials, Inc.

7,595,000

$ 114,912,350

Applied Micro Circuits Corp. (a)

496,784

2,970,768

ASML Holding NV (NY Shares)

5,115,000

90,075,150

Brooks Automation, Inc. (a)

1,966,118

16,436,746

Cirrus Logic, Inc. (a)

2,802,215

15,272,072

Cymer, Inc. (a)

33,748

854,837

Eagle Test Systems, Inc. (a)(e)

2,173,292

33,273,101

Globe Specialty Metals, Inc.
(Reg. S) (a)

1,806,925

33,428,113

KLA-Tencor Corp.

947,000

29,972,550

Lam Research Corp. (a)

3,092,145

97,371,646

Linear Technology Corp.

604,540

18,535,196

Mattson Technology, Inc. (a)

2,217,430

10,488,444

MEMC Electronic Materials, Inc. (a)

116,400

3,289,464

Micron Technology, Inc. (a)

14,780,002

59,859,008

Novellus Systems, Inc. (a)

4,509,243

88,561,533

Photronics, Inc. (a)(e)

2,181,261

4,100,771

Teradyne, Inc. (a)

1,577,162

12,317,635

Tokyo Electron Ltd.

1,155,000

52,284,869

Verigy Ltd. (a)

1,350,000

21,978,000

 

705,982,253

Software - 4.6%

Activision Blizzard, Inc. (a)

850,000

13,115,500

Microsoft Corp.

26,874,200

717,272,391

Nintendo Co. Ltd.

220,000

93,403,196

Oracle Corp. (a)

460,000

9,342,600

Perfect World Co. Ltd. sponsored ADR Class B (a)

1,268,400

28,462,896

 

861,596,583

TOTAL INFORMATION TECHNOLOGY

2,921,120,607

MATERIALS - 3.1%

Chemicals - 1.6%

Albemarle Corp.

680,300

20,980,452

CF Industries Holdings, Inc.

69,300

6,338,178

E.I. du Pont de Nemours & Co.

381,200

15,362,360

Ecolab, Inc.

778,861

37,790,336

FMC Corp.

508,800

26,147,232

Monsanto Co.

1,447,335

143,257,218

Potash Corp. of Saskatchewan, Inc.

62,300

8,224,223

Praxair, Inc.

247,232

17,736,424

Solutia, Inc. (a)

998,800

13,983,200

The Mosaic Co.

181,500

12,345,630

 

302,165,253

Containers & Packaging - 0.5%

Ball Corp.

47,900

1,891,571

Crown Holdings, Inc. (a)

385,800

8,568,618

Owens-Illinois, Inc. (a)

398,800

11,724,720

 

Shares

Value

Rock-Tenn Co. Class A

575,300

$ 23,000,494

Temple-Inland, Inc.

2,503,800

38,207,988

 

83,393,391

Metals & Mining - 1.0%

Agnico-Eagle Mines Ltd.

398,700

21,762,937

AK Steel Holding Corp. (d)

1,147,100

29,732,832

Alcoa, Inc.

555,600

12,545,448

Barrick Gold Corp.

363,900

13,323,171

Century Aluminum Co. (a)

835,000

23,121,150

Freeport-McMoRan Copper & Gold, Inc. Class B

831,500

47,270,775

Goldcorp, Inc.

600,600

18,885,834

Newmont Mining Corp.

69,700

2,701,572

Nucor Corp.

337,600

13,335,200

United States Steel Corp.

60,000

4,656,600

 

187,335,519

TOTAL MATERIALS

572,894,163

TELECOMMUNICATION SERVICES - 3.3%

Diversified Telecommunication Services - 2.8%

AT&T, Inc.

11,283,416

315,032,975

Level 3 Communications, Inc. (a)

4,549,500

12,283,650

Qwest Communications International, Inc.

4,236,600

13,684,218

tw telecom, inc. (a)

1,575,756

16,372,105

Verizon Communications, Inc.

5,112,600

164,063,334

 

521,436,282

Wireless Telecommunication Services - 0.5%

American Tower Corp. Class A (a)

904,800

32,545,656

Clearwire Corp. (a)(d)

4,630,492

55,010,245

 

87,555,901

TOTAL TELECOMMUNICATION SERVICES

608,992,183

UTILITIES - 3.8%

Electric Utilities - 2.2%

Allegheny Energy, Inc.

888,100

32,655,437

American Electric Power Co., Inc.

979,900

36,285,697

Duke Energy Corp.

2,522,700

43,970,661

Entergy Corp.

807,300

71,857,773

Exelon Corp.

1,355,100

84,856,362

FirstEnergy Corp.

533,600

35,745,864

FPL Group, Inc.

383,037

19,266,761

Northeast Utilities

146,300

3,752,595

Pepco Holdings, Inc.

91,600

2,098,556

PPL Corp.

1,663,900

61,597,578

Progress Energy, Inc.

454,168

19,588,266

Westar Energy, Inc.

517,000

11,911,680

 

423,587,230

Gas Utilities - 0.1%

Questar Corp.

321,500

13,155,780

Common Stocks - continued

Shares

Value

UTILITIES - continued

Independent Power Producers & Energy Traders - 0.4%

Clipper Windpower PLC (a)

1,425,263

$ 8,605,262

Constellation Energy Group, Inc.

510,016

12,393,389

Dynegy, Inc. Class A (a)

667,725

2,390,456

NRG Energy, Inc. (a)

2,266,000

56,083,500

Reliant Energy, Inc. (a)

179,200

1,317,120

 

80,789,727

Multi-Utilities - 1.1%

Dominion Resources, Inc.

1,146,000

49,025,880

Public Service Enterprise Group, Inc.

1,003,460

32,903,453

Puget Energy, Inc.

270,100

7,211,670

Sempra Energy

1,523,800

76,906,186

TECO Energy, Inc.

895,800

14,090,934

Xcel Energy, Inc.

1,057,800

21,145,422

 

201,283,545

TOTAL UTILITIES

718,816,282

TOTAL COMMON STOCKS

(Cost $20,534,728,780)

18,286,929,265

Convertible Preferred Stocks - 0.4%

 

 

 

 

FINANCIALS - 0.4%

Commercial Banks - 0.4%

Huntington Bancshares, Inc. 8.50%

52,000

39,935,480

Wachovia Corp. 7.50%

90,000

34,650,000

 

74,585,480

Diversified Financial Services - 0.0%

CIT Group, Inc. Series C, 8.75%

165,500

4,819,360

TOTAL FINANCIALS

79,404,840

HEALTH CARE - 0.0%

Life Sciences Tools & Services - 0.0%

Fluidigm Corp.

1,378,965

5,515,860

TOTAL CONVERTIBLE PREFERRED STOCKS

(Cost $108,791,403)

84,920,700

U.S. Treasury Obligations - 0.0%

 

Principal Amount

 

U.S. Treasury Bills, yield at date of purchase 1.36% to 1.68% 10/16/08 to 12/4/08 (g)
(Cost $5,687,972)

$ 5,700,000

5,696,298

Money Market Funds - 2.9%

Shares

Value

Fidelity Cash Central Fund, 1.92% (b)

272,079,627

$ 272,079,627

Fidelity Securities Lending Cash Central Fund, 2.14% (b)(c)

264,211,255

264,211,255

TOTAL MONEY MARKET FUNDS

(Cost $536,290,882)

536,290,882

TOTAL INVESTMENT PORTFOLIO - 101.2%

(Cost $21,185,499,037)

18,913,837,145

NET OTHER ASSETS - (1.2)%

(231,314,147)

NET ASSETS - 100%

$ 18,682,522,998

Futures Contracts

 

Expiration Date

Underlying Face Amount at Value

Unrealized Appreciation/
(Depreciation)

Purchased

Equity Index Contracts

565 CME E-mini S&P 500 Index Contracts

Dec. 2008

$ 32,979,050

$ (818,589)

The face value of futures purchased as a percentage of net assets - 0.2%

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.

(c) Investment made with cash collateral received from securities on loan.

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

(e) Affiliated company

(f) 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 $ 8,562,874 or 0.0% of net assets.

(g) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $5,696,298.

(h) 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 $8,624,250 or 0.0% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition Cost

The Weinstein Co. II Holdings, LLC Class A-1

10/19/05

$ 11,499,000

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

$ 11,181,643

Fidelity Securities Lending Cash Central Fund

7,177,247

Total

$ 18,358,890

Other Affiliated Issuers

An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:

Affiliate

Value,
beginning of period

Purchases

Sales Proceeds

Dividend Income

Value,
end of
period

Ciena Corp.

$ 80,149,836

$ 110,673,120

$ 34,633,555

$ -

$ 59,284,089

Cirrus Logic, Inc.

22,700,679

40,806,672

55,175,922

-

-

Eagle Test Systems, Inc.

-

45,011,356

10,287,842

-

33,273,101

Photronics, Inc.

-

6,912,858

-

-

4,100,771

Sycamore Networks, Inc.

21,666,920

50,153,926

-

-

64,620,853

Total

$ 124,517,435

$ 253,557,932

$ 100,097,319

$ -

$ 161,278,814

Other Information

The following is a summary of the inputs used, as of September 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities

$ 18,913,837,145

$ 17,134,082,838

$ 1,765,614,197

$ 14,140,110

Other Financial Instruments*

$ (818,589)

$ (818,589)

$ -

$ -

*Other financial instruments include Futures Contracts

The following is a reconciliation of assets for which Level 3 inputs were used in determining value:

 

Investments in Securities

Beginning Balance

$ 17,014,860

Total Realized Gain (Loss)

-

Total Unrealized Gain (Loss)

(2,874,750)

Cost of Purchases

-

Proceeds of Sales

-

Amortization/Accretion

-

Transfer in/out of Level 3

-

Ending Balance

$ 14,140,110

The information used in the above reconciliation represents fiscal year to date activity for any Investment Securities or Other Financial Instruments identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period.

Income Tax Information

At September 30, 2008, the aggregate cost of investment securities for income tax purposes was $21,389,369,029. Net unrealized depreciation aggregated $2,475,531,884, of which $1,150,175,530 related to appreciated investment securities and $3,625,707,414 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. 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. Debt securities, including restricted securities, 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 available dealer supplied prices. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. 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.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value calculation under these procedures may differ from published prices for the same securities.

The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1 - Quoted prices in active markets for identical securities.

Level 2 - Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.

Level 3 - Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

For additional information on the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.

Quarterly Report

The fund's schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund and its holdings, please call Fidelity at 1-800-634-9361 for a free copy of the fund's most recent prospectus and annual report.

Third party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliate.

Quarterly Report

Quarterly Holdings Report

for

Fidelity® Variable Insurance Products:
Disciplined Small Cap Portfolio

September 30, 2008 

1.837324.102

VDSC-QTLY-1108

Investments September 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 98.5%

Shares

Value

CONSUMER DISCRETIONARY - 11.4%

Auto Components - 1.2%

ATC Technology Corp. (a)

5,923

$ 140,612

Cooper Tire & Rubber Co.

1,756

15,102

Drew Industries, Inc. (a)(d)

5,277

90,289

Fuel Systems Solutions, Inc. (a)

1,564

53,880

Lear Corp. (a)

2,155

22,628

Stoneridge, Inc. (a)

9,500

106,875

Superior Industries International, Inc.

977

18,719

 

448,105

Diversified Consumer Services - 1.4%

American Public Education, Inc. (d)

2,082

100,519

DeVry, Inc.

2,411

119,441

Jackson Hewitt Tax Service, Inc.

1,838

28,195

Sotheby's Class A (ltd. vtg.) (d)

3,892

78,074

Stewart Enterprises, Inc. Class A

11,153

87,663

Strayer Education, Inc.

670

134,174

 

548,066

Hotels, Restaurants & Leisure - 2.2%

Bally Technologies, Inc. (a)

5,210

157,759

Bob Evans Farms, Inc.

5,707

155,744

Buffalo Wild Wings, Inc. (a)(d)

3,460

139,230

Denny's Corp. (a)

51,105

131,851

Jack in the Box, Inc. (a)

1,986

41,905

Papa John's International, Inc. (a)

6,923

188,029

Speedway Motorsports, Inc.

1,293

25,188

 

839,706

Household Durables - 0.5%

Furniture Brands International, Inc.

7,501

78,911

Tupperware Brands Corp.

2,611

72,142

Universal Electronics, Inc. (a)

2,278

56,904

 

207,957

Internet & Catalog Retail - 0.6%

Netflix, Inc. (a)(d)

5,546

171,260

NutriSystem, Inc. (d)

3,503

62,073

 

233,333

Leisure Equipment & Products - 0.2%

Polaris Industries, Inc.

1,472

66,961

Media - 1.3%

Belo Corp. Series A

12,247

72,992

Cox Radio, Inc. Class A (a)(d)

6,403

67,616

Interactive Data Corp.

6,157

155,280

LIN TV Corp. Class A (a)

13,271

68,478

Marvel Entertainment, Inc. (a)

2,499

85,316

Sinclair Broadcast Group, Inc. Class A

11,371

57,310

 

506,992

Specialty Retail - 2.9%

Aeropostale, Inc. (a)

6,279

201,619

Christopher & Banks Corp.

2,824

21,660

Dress Barn, Inc. (a)

6,084

93,024

Finish Line, Inc. Class A

11,176

111,648

 

Shares

Value

Genesco, Inc. (a)

5,878

$ 196,795

Gymboree Corp. (a)

3,746

132,983

Jo-Ann Stores, Inc. (a)

4,361

91,494

Midas, Inc. (a)

3,247

44,679

The Buckle, Inc.

1,025

56,929

Wet Seal, Inc. Class A (a)

40,423

146,735

 

1,097,566

Textiles, Apparel & Luxury Goods - 1.1%

Deckers Outdoor Corp. (a)

899

93,568

Fossil, Inc. (a)

3,836

108,290

Lululemon Athletica, Inc. (a)(d)

737

16,973

Maidenform Brands, Inc. (a)

4,432

64,308

Perry Ellis International, Inc. (a)

5,675

84,614

Quiksilver, Inc. (a)

11,000

63,140

 

430,893

TOTAL CONSUMER DISCRETIONARY

4,379,579

CONSUMER STAPLES - 4.0%

Food & Staples Retailing - 1.7%

Casey's General Stores, Inc.

8,003

241,451

Longs Drug Stores Corp.

3,179

240,460

Nash-Finch Co. (d)

3,805

164,072

 

645,983

Food Products - 1.6%

Darling International, Inc. (a)

7,038

78,192

Flowers Foods, Inc.

7,890

231,650

Ralcorp Holdings, Inc. (a)

3,989

268,898

TreeHouse Foods, Inc. (a)

1,807

53,668

 

632,408

Personal Products - 0.7%

Chattem, Inc. (a)(d)

2,203

172,231

Prestige Brands Holdings, Inc. (a)

9,131

81,083

 

253,314

TOTAL CONSUMER STAPLES

1,531,705

ENERGY - 5.8%

Energy Equipment & Services - 1.9%

Complete Production Services, Inc. (a)

3,450

69,449

Grey Wolf, Inc. (a)

25,848

201,097

Gulfmark Offshore, Inc. (a)

3,300

148,104

IHS, Inc. Class A (a)

712

33,920

Newpark Resources, Inc. (a)

7,888

57,582

Oil States International, Inc. (a)

1,200

42,420

T-3 Energy Services, Inc. (a)

1,386

51,448

Trico Marine Services, Inc. (a)(d)

2,382

40,685

Willbros Group, Inc. (a)

2,545

67,443

 

712,148

Oil, Gas & Consumable Fuels - 3.9%

Abraxas Petroleum Corp. (a)

5,502

14,360

Berry Petroleum Co. Class A

3,750

145,238

Common Stocks - continued

Shares

Value

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Callon Petroleum Co. (a)

2,960

$ 53,369

Concho Resources, Inc. (a)

5,950

164,280

Endeavor International Corp. (a)

52,920

69,854

Gasco Energy, Inc. (a)

15,077

27,440

Gran Tierra Energy, Inc. (a)(d)

9,669

35,872

Mariner Energy, Inc. (a)

2,882

59,081

McMoRan Exploration Co. (a)(d)

7,145

168,908

Nordic American Tanker
Shipping Ltd. (d)

6,007

192,584

Penn Virginia Corp.

1,870

99,933

Stone Energy Corp. (a)

4,132

174,908

Swift Energy Co. (a)

2,955

114,329

Teekay Tankers Ltd.

8,102

137,167

Whiting Petroleum Corp. (a)

550

39,193

 

1,496,516

TOTAL ENERGY

2,208,664

FINANCIALS - 21.5%

Capital Markets - 2.2%

Apollo Investment Corp. (d)

1,129

19,249

BlackRock Kelso Capital Corp.

7,210

83,131

Hercules Technology Growth Capital, Inc.

7,533

73,070

Knight Capital Group, Inc. Class A (a)

7,721

114,734

MCG Capital Corp.

2,761

7,234

MVC Capital, Inc.

6,050

92,263

optionsXpress Holdings, Inc.

6,225

120,890

Patriot Capital Funding, Inc.

1,816

11,568

PennantPark Investment Corp.

6,748

50,003

Penson Worldwide, Inc. (a)

5,998

83,192

Prospect Capital Corp. (d)

12,409

158,959

Waddell & Reed Financial, Inc. Class A

1,676

41,481

 

855,774

Commercial Banks - 7.6%

City Bank Lynnwood, Washington

576

8,986

Columbia Banking Systems, Inc.

4,744

84,111

Community Bank System, Inc.

7,320

184,098

Community Trust Bancorp, Inc.

441

15,170

First Bancorp, Puerto Rico

11,072

122,456

First Financial Bancorp, Ohio

4,072

59,451

First Financial Bankshares, Inc.

2,485

128,922

Glacier Bancorp, Inc.

8,620

213,517

Green Bankshares, Inc. (d)

2,018

47,443

Home Bancshares, Inc.

5,271

136,361

Lakeland Financial Corp.

2,881

63,267

MainSource Financial Group, Inc.

3,073

60,231

National Penn Bancshares, Inc. (d)

11,703

170,864

Old Second Bancorp, Inc. (d)

5,450

100,934

Oriental Financial Group, Inc.

8,521

152,185

Pacific Capital Bancorp (d)

8,911

181,339

 

Shares

Value

Pennsylvania Communication Bancorp, Inc. (a)(d)

1,700

$ 50,677

Renasant Corp.

3,633

78,872

S&T Bancorp, Inc.

6,004

221,127

Sandy Spring Bancorp, Inc. (d)

2,625

58,013

Santander Bancorp (d)

9,225

99,630

Smithtown Bancorp, Inc.

2,947

66,308

Suffolk Bancorp

3,410

134,388

SVB Financial Group (a)

1,800

104,256

Tompkins Financial Corp.

1,500

75,750

UMB Financial Corp.

2,300

120,796

Virginia Commerce Bancorp, Inc.

6,431

40,194

WesBanco, Inc.

4,385

116,729

 

2,896,075

Consumer Finance - 0.2%

Dollar Financial Corp. (a)

2,681

41,261

EZCORP, Inc. (non-vtg.) Class A (a)

2,300

43,240

 

84,501

Diversified Financial Services - 0.3%

Encore Capital Group, Inc. (a)(d)

7,618

104,367

Insurance - 3.6%

Amerisafe, Inc. (a)

9,167

166,839

Aspen Insurance Holdings Ltd.

3,464

95,260

Assured Guaranty Ltd. (d)

6,455

104,958

Darwin Professional Underwriters, Inc. (a)

5,065

157,572

FBL Financial Group, Inc. Class A

1,983

55,306

Harleysville Group, Inc.

2,459

92,950

IPC Holdings Ltd.

2,587

78,153

Maiden Holdings Ltd. (d)

11,421

49,681

Max Capital Group Ltd.

1,500

34,845

Navigators Group, Inc. (a)

2,312

134,096

Platinum Underwriters Holdings Ltd.

2,927

103,850

RLI Corp.

3,095

192,169

SeaBright Insurance Holdings, Inc. (a)

8,000

104,000

 

1,369,679

Real Estate Investment Trusts - 5.9%

Alexandria Real Estate Equities, Inc.

425

47,813

Ashford Hospitality Trust, Inc.

15,212

61,609

BioMed Realty Trust, Inc.

6,614

174,940

Capstead Mortgage Corp.

8,515

93,239

Digital Realty Trust, Inc.

1,845

87,176

Extra Space Storage, Inc.

9,155

140,621

First Industrial Realty Trust, Inc.

200

5,736

Highwoods Properties, Inc. (SBI)

4,824

171,541

Home Properties, Inc. (d)

320

18,544

LaSalle Hotel Properties (SBI)

4,487

104,637

Lexington Corporate Properties Trust

11,033

189,988

Mission West Properties, Inc.

2,117

20,620

National Retail Properties, Inc.

7,584

181,637

Nationwide Health Properties, Inc.

2,286

82,250

NorthStar Realty Finance Corp.

21,518

166,765

Omega Healthcare Investors, Inc.

8,964

176,232

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Real Estate Investment Trusts - continued

Parkway Properties, Inc.

1,780

$ 67,391

Pennsylvania Real Estate Investment
Trust (SBI)

3,934

74,156

PS Business Parks, Inc.

1,558

89,741

Realty Income Corp.

4,414

112,998

Senior Housing Properties Trust (SBI)

1,761

41,965

Sunstone Hotel Investors, Inc.

11,975

161,663

 

2,271,262

Thrifts & Mortgage Finance - 1.7%

First Niagara Financial Group, Inc.

7,850

123,638

Flushing Financial Corp.

980

17,150

Northwest Bancorp, Inc.

2,750

75,735

Ocwen Financial Corp. (a)

22,616

182,059

Provident Financial Services, Inc.

7,887

130,214

United Financial Bancorp, Inc.

2,949

43,793

WSFS Financial Corp.

1,200

72,000

 

644,589

TOTAL FINANCIALS

8,226,247

HEALTH CARE - 14.0%

Biotechnology - 3.3%

Alexion Pharmaceuticals, Inc. (a)

678

26,645

Alnylam Pharmaceuticals, Inc. (a)(d)

6,735

194,978

ARIAD Pharmaceuticals, Inc. (a)

21,335

52,697

Cubist Pharmaceuticals, Inc. (a)

4,517

100,413

GTx, Inc. (a)(d)

2,373

45,134

Isis Pharmaceuticals, Inc. (a)

9,452

159,644

Martek Biosciences (a)

3,254

102,241

Medarex, Inc. (a)

8,900

57,583

Momenta Pharmaceuticals, Inc. (a)

4,429

58,064

ONYX Pharmaceuticals, Inc. (a)

757

27,388

OSI Pharmaceuticals, Inc. (a)

4,242

209,088

Regeneron Pharmaceuticals, Inc. (a)

3,429

74,855

Seattle Genetics, Inc. (a)

3,500

37,450

Synta Pharmaceuticals Corp. (a)(d)

8,224

62,667

Targacept, Inc. (a)

3,150

18,302

Theravance, Inc. (a)

1,800

22,428

 

1,249,577

Health Care Equipment & Supplies - 3.7%

American Medical Systems
Holdings, Inc. (a)

7,344

130,429

Cardiac Science Corp. (a)

5,861

60,720

CONMED Corp. (a)

2,427

77,664

Cryolife, Inc. (a)

11,470

150,486

Invacare Corp.

5,350

129,149

Masimo Corp. (a)

5,088

189,274

Meridian Bioscience, Inc.

4,957

143,951

Merit Medical Systems, Inc. (a)

7,179

134,750

Quidel Corp. (a)

7,451

122,271

 

Shares

Value

Somanetics Corp. (a)

5,507

$ 120,438

Steris Corp.

4,718

177,302

 

1,436,434

Health Care Providers & Services - 4.6%

Amedisys, Inc. (a)

1,765

85,903

AMERIGROUP Corp. (a)

1,971

49,748

AMN Healthcare Services, Inc. (a)

10,581

185,908

AmSurg Corp. (a)

3,713

94,570

Apria Healthcare Group, Inc. (a)

2,860

52,166

Centene Corp. (a)

4,250

87,168

Chemed Corp.

3,236

132,870

Cross Country Healthcare, Inc. (a)

4,736

77,149

Hanger Orthopedic Group, Inc. (a)

3,844

67,078

HealthSouth Corp. (a)

9,677

178,347

Magellan Health Services, Inc. (a)

1,686

69,227

Medcath Corp. (a)

1,514

27,131

Molina Healthcare, Inc. (a)

5,357

166,067

NightHawk Radiology Holdings, Inc. (a)

6,700

48,374

Owens & Minor, Inc.

5,130

248,805

PharMerica Corp. (a)

6,500

146,185

RehabCare Group, Inc. (a)

2,526

45,721

 

1,762,417

Life Sciences Tools & Services - 0.8%

Albany Molecular Research, Inc. (a)

2,190

39,617

Bio-Rad Laboratories, Inc. Class A (a)

678

67,203

Dionex Corp. (a)

1,526

96,977

eResearchTechnology, Inc. (a)

7,230

86,109

Kendle International, Inc. (a)

790

35,321

 

325,227

Pharmaceuticals - 1.6%

Adolor Corp. (a)

7,772

26,813

DepoMed, Inc. (a)

13,283

48,483

Medicines Co. (a)

5,000

116,100

Medicis Pharmaceutical Corp. Class A

5,074

75,653

Noven Pharmaceuticals, Inc. (a)

5,123

59,837

Pain Therapeutics, Inc. (a)(d)

7,000

68,390

Sciele Pharma, Inc.

3,630

111,768

ViroPharma, Inc. (a)

6,494

85,201

XenoPort, Inc. (a)

200

9,698

 

601,943

TOTAL HEALTH CARE

5,375,598

INDUSTRIALS - 16.5%

Aerospace & Defense - 2.1%

Ceradyne, Inc. (a)

1,017

37,283

Cubic Corp.

4,769

117,270

Curtiss-Wright Corp.

769

34,951

Esterline Technologies Corp. (a)

4,550

180,135

Hexcel Corp. (a)

4,000

54,760

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Aerospace & Defense - continued

Teledyne Technologies, Inc. (a)

3,594

$ 205,433

TransDigm Group, Inc. (a)

5,384

184,294

 

814,126

Air Freight & Logistics - 0.9%

Atlas Air Worldwide Holdings, Inc. (a)

1,500

60,465

Hub Group, Inc. Class A (a)

4,945

186,179

Pacer International, Inc.

5,240

86,303

 

332,947

Airlines - 0.2%

SkyWest, Inc.

5,677

90,718

Building Products - 0.7%

Gibraltar Industries, Inc.

7,671

143,524

Insteel Industries, Inc.

9,956

135,302

 

278,826

Commercial Services & Supplies - 1.2%

Cenveo, Inc. (a)

16,638

127,946

Comfort Systems USA, Inc.

10,693

142,858

Deluxe Corp.

5,757

82,843

Knoll, Inc.

6,073

91,824

Waste Connections, Inc. (a)

761

26,102

 

471,573

Construction & Engineering - 1.1%

EMCOR Group, Inc. (a)

7,199

189,478

MasTec, Inc. (a)

10,118

134,468

Perini Corp. (a)

4,017

103,598

 

427,544

Electrical Equipment - 2.7%

Acuity Brands, Inc.

2,190

91,454

Belden, Inc.

3,062

97,341

Brady Corp. Class A

5,180

182,750

Encore Wire Corp.

2,549

46,162

GrafTech International Ltd. (a)

10,998

166,180

II-VI, Inc. (a)

4,363

168,674

Regal-Beloit Corp.

2,001

85,083

Woodward Governor Co.

5,497

193,879

 

1,031,523

Machinery - 3.6%

Actuant Corp. Class A

4,173

105,327

CIRCOR International, Inc.

3,452

149,920

Columbus McKinnon Corp. (NY Shares) (a)

5,260

123,978

Gorman-Rupp Co.

772

29,120

Graham Corp.

799

43,226

Middleby Corp. (a)(d)

1,360

73,862

Nordson Corp.

2,531

124,297

Robbins & Myers, Inc.

5,680

175,682

TriMas Corp. (a)

6,788

44,529

Valmont Industries, Inc.

840

69,460

 

Shares

Value

Wabtec Corp.

4,623

$ 236,836

Watts Water Technologies, Inc. Class A

4,509

123,321

Xerium Technologies, Inc.

10,764

69,320

 

1,368,878

Professional Services - 2.3%

Administaff, Inc.

1,404

38,217

Comsys IT Partners, Inc. (a)

4,748

46,151

CoStar Group, Inc. (a)

2,083

94,547

Heidrick & Struggles International, Inc.

2,397

72,270

Korn/Ferry International (a)

2,264

40,344

MPS Group, Inc. (a)

11,025

111,132

Navigant Consulting, Inc. (a)

6,494

129,166

On Assignment, Inc. (a)

17,650

139,082

Watson Wyatt Worldwide, Inc. Class A

3,776

187,780

 

858,689

Road & Rail - 0.7%

Arkansas Best Corp.

3,515

118,420

Werner Enterprises, Inc. (d)

6,561

142,439

 

260,859

Trading Companies & Distributors - 1.0%

Applied Industrial Technologies, Inc.

6,949

187,137

Beacon Roofing Supply, Inc. (a)(d)

11,988

187,253

 

374,390

TOTAL INDUSTRIALS

6,310,073

INFORMATION TECHNOLOGY - 16.4%

Communications Equipment - 3.1%

3Com Corp. (a)

75,608

176,167

Adtran, Inc.

6,180

120,448

BigBand Networks, Inc. (a)

21,060

77,711

Blue Coat Systems, Inc. (a)

5,741

81,465

Emulex Corp. (a)

10,894

116,239

Foundry Networks, Inc. (a)

8,076

147,064

Infinera Corp. (a)

3,819

36,510

NETGEAR, Inc. (a)

2,161

32,415

Polycom, Inc. (a)

6,066

140,307

Powerwave Technologies, Inc. (a)

17,551

69,502

Tekelec (a)

12,034

168,356

ViaSat, Inc. (a)

1,100

25,938

 

1,192,122

Computers & Peripherals - 0.9%

Electronics for Imaging, Inc. (a)

7,102

98,931

Intevac, Inc. (a)

2,045

21,759

Isilon Systems, Inc. (a)

9,930

43,791

Novatel Wireless, Inc. (a)

10,508

63,678

Rackable Systems, Inc. (a)(d)

11,007

107,979

 

336,138

Electronic Equipment & Components - 1.9%

Anixter International, Inc. (a)

2,292

136,397

Checkpoint Systems, Inc. (a)

5,185

97,582

CTS Corp.

8,845

113,039

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Electronic Equipment & Components - continued

Insight Enterprises, Inc. (a)

8,715

$ 116,868

Mercury Computer Systems, Inc. (a)

6,628

58,989

Sanmina-SCI Corp. (a)

50,562

70,787

Technitrol, Inc.

4,677

69,173

TTM Technologies, Inc. (a)

5,077

50,364

 

713,199

Internet Software & Services - 2.4%

Chordiant Software, Inc. (a)

8,948

45,903

EarthLink, Inc. (a)

18,946

161,041

Greenfield Online, Inc. (a)

9,946

173,060

InfoSpace, Inc.

11,332

122,952

Interwoven, Inc. (a)

6,635

93,686

j2 Global Communications, Inc. (a)

959

22,393

LoopNet, Inc. (a)

8,976

88,234

NIC, Inc.

2,321

16,015

SonicWALL, Inc. (a)

6,903

36,172

United Online, Inc.

13,776

129,632

Vignette Corp. (a)

4,944

53,099

 

942,187

IT Services - 1.3%

Acxiom Corp.

11,272

141,351

CSG Systems International, Inc. (a)

2,835

49,698

Global Cash Access Holdings, Inc. (a)

2,730

13,814

Maximus, Inc.

2,560

94,310

SAIC, Inc. (a)

6,737

136,290

Sapient Corp. (a)

7,526

55,918

 

491,381

Semiconductors & Semiconductor Equipment - 3.0%

Advanced Energy Industries, Inc. (a)

2,737

37,442

Amkor Technology, Inc. (a)

16,695

106,347

Applied Micro Circuits Corp. (a)

9,460

56,571

Atheros Communications, Inc. (a)

6,082

143,414

MKS Instruments, Inc. (a)

5,128

102,098

ON Semiconductor Corp. (a)

10,049

67,931

PMC-Sierra, Inc. (a)

7,613

56,488

Silicon Image, Inc. (a)

19,774

105,593

Skyworks Solutions, Inc. (a)

18,575

155,287

TriQuint Semiconductor, Inc. (a)

27,542

131,926

Ultratech, Inc. (a)

3,621

43,814

Veeco Instruments, Inc. (a)

9,234

136,756

 

1,143,667

Software - 3.8%

Ansys, Inc. (a)

1,906

72,180

Jack Henry & Associates, Inc.

6,227

126,595

JDA Software Group, Inc. (a)

7,197

109,466

Macrovision Solutions Corp. (a)

940

14,457

Manhattan Associates, Inc. (a)

4,602

102,809

MICROS Systems, Inc. (a)

2,394

63,824

MicroStrategy, Inc. Class A (a)

788

46,910

 

Shares

Value

Net 1 UEPS Technologies, Inc. (a)

2,312

$ 51,627

Parametric Technology Corp. (a)

7,400

136,160

Quest Software, Inc. (a)

3,833

48,641

Secure Computing Corp. (a)

5,502

30,151

Solera Holdings, Inc. (a)

7,371

211,695

SPSS, Inc. (a)

5,133

150,705

Sybase, Inc. (a)

7,014

214,769

TIBCO Software, Inc. (a)

4,073

29,814

Vasco Data Security International, Inc. (a)

6,215

64,387

 

1,474,190

TOTAL INFORMATION TECHNOLOGY

6,292,884

MATERIALS - 3.9%

Chemicals - 1.2%

H.B. Fuller Co.

6,202

129,436

Hercules, Inc.

5,026

99,465

Innophos Holdings, Inc.

4,777

116,463

Innospec, Inc.

4,442

53,571

PolyOne Corp. (a)

7,204

46,466

W.R. Grace & Co. (a)

1,000

15,120

 

460,521

Containers & Packaging - 1.0%

Rock-Tenn Co. Class A

4,202

167,996

Silgan Holdings, Inc.

3,923

200,426

 

368,422

Metals & Mining - 1.0%

Compass Minerals International, Inc.

2,835

148,526

Universal Stainless & Alloy
Products, Inc. (a)

3,675

93,896

Worthington Industries, Inc. (d)

9,756

145,755

 

388,177

Paper & Forest Products - 0.7%

Buckeye Technologies, Inc. (a)

14,471

118,517

Glatfelter

11,026

149,292

Mercer International, Inc. (SBI) (a)(d)

5,088

18,622

 

286,431

TOTAL MATERIALS

1,503,551

TELECOMMUNICATION SERVICES - 2.2%

Diversified Telecommunication Services - 1.7%

Cincinnati Bell, Inc. (a)

52,394

161,897

Consolidated Communications
Holdings, Inc.

5,784

87,223

Iowa Telecommunication Services, Inc.

9,892

184,783

NTELOS Holdings Corp.

7,319

196,808

 

630,711

Common Stocks - continued

Shares

Value

TELECOMMUNICATION SERVICES - continued

Wireless Telecommunication Services - 0.5%

Syniverse Holdings, Inc. (a)

8,956

$ 148,759

USA Mobility, Inc.

4,674

51,414

 

200,173

TOTAL TELECOMMUNICATION SERVICES

830,884

UTILITIES - 2.8%

Electric Utilities - 1.0%

Central Vermont Public Service Corp.

1,500

35,160

El Paso Electric Co. (a)

7,826

164,346

Portland General Electric Co.

6,678

158,001

Westar Energy, Inc.

1,220

28,109

 

385,616

Gas Utilities - 1.0%

New Jersey Resources Corp.

1,818

65,248

Northwest Natural Gas Co.

2,325

120,900

Southwest Gas Corp.

1,335

40,397

WGL Holdings, Inc.

4,365

141,644

 

368,189

Independent Power Producers & Energy Traders - 0.2%

Black Hills Corp.

2,064

64,128

Multi-Utilities - 0.3%

Avista Corp.

4,717

102,406

Water Utilities - 0.3%

American States Water Co.

3,580

137,830

TOTAL UTILITIES

1,058,169

TOTAL COMMON STOCKS

(Cost $40,226,178)

37,717,354

U.S. Treasury Obligations - 0.1%

 

Principal Amount

 

U.S. Treasury Bills, yield at date of purchase 0.77% 12/26/08 (e)
(Cost $24,953)

$ 25,000

24,960

Money Market Funds - 8.6%

Shares

Value

Fidelity Cash Central Fund, 1.92% (b)

156,688

$ 156,688

Fidelity Securities Lending Cash Central Fund, 2.14% (b)(c)

3,156,466

3,156,466

TOTAL MONEY MARKET FUNDS

(Cost $3,313,154)

3,313,154

TOTAL INVESTMENT PORTFOLIO - 107.2%

(Cost $43,564,285)

41,055,468

NET OTHER ASSETS - (7.2)%

(2,759,776)

NET ASSETS - 100%

$ 38,295,692

Futures Contracts

 

Expiration Date

Underlying Face Amount at Value

Unrealized Appreciation/(Depreciation)

Purchased

Equity Index Contracts

5 Russell 2000 Index Contracts

Dec. 2008

$ 339,400

$ (802)

 

The face value of futures purchased as a percentage of net assets - 0.9%

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.

(c) Investment made with cash collateral received from securities on loan.

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

(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $24,960.

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

$ 15,716

Fidelity Securities Lending Cash Central Fund

55,572

Total

$ 71,288

Other Information

The following is a summary of the inputs used, as of September 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities

$ 41,055,468

$ 41,030,508

$ 24,960

$ -

Other Financial Instruments*

$ (802)

$ (802)

$ -

$ -

*Other financial instruments include Futures Contracts.

Income Tax Information

At September 30, 2008, the aggregate cost of investment securities for income tax purposes was $43,603,566. Net unrealized depreciation aggregated $2,548,098, of which $2,872,910 related to appreciated investment securities and $5,421,008 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. 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. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. 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.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value calculation under these procedures may differ from published prices for the same securities.

The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1 - Quoted prices in active markets for identical securities.

Level 2 - Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.

Level 3 - Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

For additional information on the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.

Quarterly Report

The fund's schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund and its holdings, please call Fidelity at 1-800-634-9361 for a free copy of the fund's most recent prospectus and annual report.

Third party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliate.

Quarterly Report

Quarterly Holdings Report

for

Fidelity® Variable Insurance Products:
Index 500 Portfolio

September 30, 2008 

1.808790.104

VIPIDX-QTLY-1108

Investments September 30, 2008 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 98.5%

Shares

Value

CONSUMER DISCRETIONARY - 8.4%

Auto Components - 0.2%

Johnson Controls, Inc.

127,633

$ 3,871,109

The Goodyear Tire & Rubber Co. (a)

51,833

793,563

 

4,664,672

Automobiles - 0.2%

Ford Motor Co. (a)(d)

486,081

2,527,621

General Motors Corp. (d)

121,698

1,150,046

Harley-Davidson, Inc.

50,583

1,886,746

 

5,564,413

Distributors - 0.1%

Genuine Parts Co.

34,780

1,398,504

Diversified Consumer Services - 0.1%

Apollo Group, Inc. Class A (non-vtg.) (a)

22,828

1,353,700

H&R Block, Inc.

70,523

1,604,398

 

2,958,098

Hotels, Restaurants & Leisure - 1.3%

Carnival Corp. unit

93,923

3,320,178

Darden Restaurants, Inc.

30,189

864,311

International Game Technology

66,548

1,143,295

Marriott International, Inc. Class A

63,520

1,657,237

McDonald's Corp.

241,752

14,916,098

Starbucks Corp. (a)

157,044

2,335,244

Starwood Hotels & Resorts
Worldwide, Inc.

40,134

1,129,371

Wyndham Worldwide Corp.

38,148

599,305

Yum! Brands, Inc.

100,753

3,285,555

 

29,250,594

Household Durables - 0.5%

Black & Decker Corp.

12,890

783,068

Centex Corp.

26,562

430,304

D.R. Horton, Inc.

59,208

770,888

Fortune Brands, Inc.

32,225

1,848,426

Harman International Industries, Inc.

12,581

428,635

KB Home (d)

16,179

318,403

Leggett & Platt, Inc.

34,552

752,888

Lennar Corp. Class A (d)

30,384

461,533

Newell Rubbermaid, Inc.

59,564

1,028,075

Pulte Homes, Inc.

45,925

641,572

Snap-On, Inc.

12,347

650,193

The Stanley Works

16,890

704,989

Whirlpool Corp.

16,001

1,268,719

 

10,087,693

Internet & Catalog Retail - 0.3%

Amazon.com, Inc. (a)

68,664

4,995,993

Expedia, Inc. (a)

44,979

679,633

 

5,675,626

Leisure Equipment & Products - 0.1%

Eastman Kodak Co. (d)

61,948

952,760

 

Shares

Value

Hasbro, Inc.

26,989

$ 937,058

Mattel, Inc.

77,495

1,398,010

 

3,287,828

Media - 2.6%

CBS Corp. Class B

146,151

2,130,882

Comcast Corp. Class A

627,267

12,313,251

Gannett Co., Inc.

49,034

829,165

Interpublic Group of Companies, Inc. (a)

102,418

793,740

McGraw-Hill Companies, Inc.

68,269

2,157,983

Meredith Corp. (d)

7,781

218,179

News Corp. Class A

493,520

5,917,305

Omnicom Group, Inc.

68,527

2,642,401

Scripps Networks Interactive, Inc. Class A

19,319

701,473

The DIRECTV Group, Inc. (a)

124,079

3,247,147

The New York Times Co. Class A (d)

25,034

357,736

The Walt Disney Co.

403,341

12,378,535

Time Warner, Inc.

770,135

10,096,470

Viacom, Inc. Class B (non-vtg.) (a)

133,467

3,315,320

Washington Post Co. Class B

1,288

717,107

 

57,816,694

Multiline Retail - 0.8%

Big Lots, Inc. (a)

17,631

490,671

Dillard's, Inc. Class A (d)

12,298

145,116

Family Dollar Stores, Inc.

30,028

711,664

JCPenney Co., Inc.

47,737

1,591,552

Kohl's Corp. (a)

65,465

3,016,627

Macy's, Inc.

90,397

1,625,338

Nordstrom, Inc.

34,280

987,950

Sears Holdings Corp. (a)(d)

12,228

1,143,318

Target Corp.

162,215

7,956,646

 

17,668,882

Specialty Retail - 1.7%

Abercrombie & Fitch Co. Class A (d)

18,708

738,031

AutoNation, Inc. (a)(d)

23,164

260,363

AutoZone, Inc. (a)

8,979

1,107,470

Bed Bath & Beyond, Inc. (a)

55,976

1,758,206

Best Buy Co., Inc.

72,607

2,722,763

Gamestop Corp. Class A (a)

35,114

1,201,250

Gap, Inc.

100,927

1,794,482

Home Depot, Inc.

365,088

9,452,128

Limited Brands, Inc.

61,343

1,062,461

Lowe's Companies, Inc.

315,051

7,463,558

Office Depot, Inc. (a)

59,110

344,020

RadioShack Corp.

28,188

487,089

Sherwin-Williams Co.

21,209

1,212,306

Staples, Inc.

152,839

3,438,878

Tiffany & Co., Inc.

26,655

946,786

TJX Companies, Inc.

90,154

2,751,500

 

36,741,291

Textiles, Apparel & Luxury Goods - 0.5%

Coach, Inc. (a)

72,414

1,813,247

Jones Apparel Group, Inc.

17,933

331,940

Common Stocks - continued

Shares

Value

CONSUMER DISCRETIONARY - continued

Textiles, Apparel & Luxury Goods - continued

Liz Claiborne, Inc.

20,372

$ 334,712

NIKE, Inc. Class B

84,333

5,641,878

Polo Ralph Lauren Corp. Class A

12,221

814,407

VF Corp.

18,728

1,447,862

 

10,384,046

TOTAL CONSUMER DISCRETIONARY

185,498,341

CONSUMER STAPLES - 12.0%

Beverages - 2.8%

Anheuser-Busch Companies, Inc.

154,559

10,027,788

Brown-Forman Corp. Class B (non-vtg.)

16,864

1,211,004

Coca-Cola Enterprises, Inc.

68,160

1,143,043

Constellation Brands, Inc. Class A
(sub. vtg.) (a)

41,665

894,131

Molson Coors Brewing Co. Class B

32,379

1,513,718

Pepsi Bottling Group, Inc.

29,357

856,344

PepsiCo, Inc.

336,512

23,983,210

The Coca-Cola Co.

427,301

22,595,677

 

62,224,915

Food & Staples Retailing - 2.9%

Costco Wholesale Corp.

93,456

6,068,098

CVS Caremark Corp.

308,496

10,383,975

Kroger Co.

140,775

3,868,497

Safeway, Inc.

93,590

2,219,955

SUPERVALU, Inc.

45,656

990,735

Sysco Corp.

129,399

3,989,371

Wal-Mart Stores, Inc.

482,001

28,867,040

Walgreen Co.

212,778

6,587,607

Whole Foods Market, Inc. (d)

30,154

603,985

 

63,579,263

Food Products - 1.7%

Archer Daniels Midland Co.

138,487

3,034,250

Campbell Soup Co.

45,519

1,757,033

ConAgra Foods, Inc.

97,376

1,894,937

Dean Foods Co. (a)

32,748

764,993

General Mills, Inc.

72,267

4,966,188

H.J. Heinz Co.

67,132

3,354,586

Hershey Co.

35,623

1,408,533

Kellogg Co.

53,825

3,019,583

Kraft Foods, Inc. Class A

326,322

10,687,046

McCormick & Co., Inc. (non-vtg.)

27,719

1,065,796

Sara Lee Corp.

151,839

1,917,727

Tyson Foods, Inc. Class A

64,494

770,058

Wm. Wrigley Jr. Co.

46,308

3,676,855

 

38,317,585

Household Products - 2.8%

Clorox Co. (d)

29,683

1,860,827

Colgate-Palmolive Co.

108,708

8,191,148

 

Shares

Value

Kimberly-Clark Corp.

89,251

$ 5,787,035

Procter & Gamble Co.

652,231

45,453,978

 

61,292,988

Personal Products - 0.2%

Avon Products, Inc.

91,504

3,803,821

Estee Lauder Companies, Inc. Class A

24,680

1,231,779

 

5,035,600

Tobacco - 1.6%

Altria Group, Inc.

442,743

8,784,021

Lorillard, Inc.

37,386

2,660,014

Philip Morris International, Inc.

443,061

21,311,234

Reynolds American, Inc.

36,540

1,776,575

UST, Inc.

31,716

2,110,383

 

36,642,227

TOTAL CONSUMER STAPLES

267,092,578

ENERGY - 13.2%

Energy Equipment & Services - 2.6%

Baker Hughes, Inc.

66,255

4,011,078

BJ Services Co.

63,229

1,209,571

Cameron International Corp. (a)

46,792

1,803,364

ENSCO International, Inc.

30,805

1,775,292

Halliburton Co.

188,486

6,105,062

Nabors Industries Ltd. (a)

60,220

1,500,682

National Oilwell Varco, Inc. (a)

89,717

4,506,485

Noble Corp.

57,850

2,539,615

Rowan Companies, Inc.

24,291

742,090

Schlumberger Ltd. (NY Shares)

257,856

20,135,975

Smith International, Inc.

46,429

2,722,597

Transocean, Inc. (a)

68,576

7,532,388

Weatherford International Ltd. (a)

146,307

3,678,158

 

58,262,357

Oil, Gas & Consumable Fuels - 10.6%

Anadarko Petroleum Corp.

100,699

4,884,908

Apache Corp.

71,891

7,496,793

Cabot Oil & Gas Corp.

22,216

802,886

Chesapeake Energy Corp.

112,043

4,017,862

Chevron Corp.

441,612

36,424,158

ConocoPhillips

326,685

23,929,676

CONSOL Energy, Inc.

39,377

1,807,011

Devon Energy Corp.

94,966

8,660,899

El Paso Corp.

150,725

1,923,251

EOG Resources, Inc.

53,481

4,784,410

Exxon Mobil Corp.

1,116,461

86,704,349

Hess Corp.

60,840

4,993,747

Marathon Oil Corp.

151,660

6,046,684

Massey Energy Co.

18,178

648,409

Murphy Oil Corp.

40,934

2,625,507

Noble Energy, Inc. (d)

37,122

2,063,612

Occidental Petroleum Corp.

175,632

12,373,274

Peabody Energy Corp.

58,454

2,630,430

Common Stocks - continued

Shares

Value

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Pioneer Natural Resources Co.

25,722

$ 1,344,746

Range Resources Corp.

33,339

1,429,243

Southwestern Energy Co. (a)

73,768

2,252,875

Spectra Energy Corp.

132,160

3,145,408

Sunoco, Inc.

25,120

893,770

Tesoro Corp. (d)

29,640

488,764

Valero Energy Corp.

112,454

3,407,356

Williams Companies, Inc.

123,869

2,929,502

XTO Energy, Inc.

118,079

5,493,035

 

234,202,565

TOTAL ENERGY

292,464,922

FINANCIALS - 15.6%

Capital Markets - 2.8%

American Capital Ltd. (d)

44,496

1,135,093

Ameriprise Financial, Inc.

46,630

1,781,266

Bank of New York Mellon Corp.

246,350

8,026,083

Charles Schwab Corp.

200,526

5,213,676

E*TRADE Financial Corp. (a)(d)

115,478

323,338

Federated Investors, Inc. Class B (non-vtg.)

18,889

544,948

Franklin Resources, Inc.

32,731

2,884,583

Goldman Sachs Group, Inc.

93,387

11,953,536

Invesco Ltd.

83,135

1,744,172

Janus Capital Group, Inc.

34,352

834,067

Legg Mason, Inc.

30,468

1,159,612

Merrill Lynch & Co., Inc.

329,192

8,328,558

Morgan Stanley

238,385

5,482,855

Northern Trust Corp.

47,514

3,430,511

State Street Corp.

92,804

5,278,692

T. Rowe Price Group, Inc.

55,618

2,987,243

 

61,108,233

Commercial Banks - 2.9%

BB&T Corp.

118,115

4,464,747

Comerica, Inc.

32,340

1,060,429

Fifth Third Bancorp

124,141

1,477,278

First Horizon National Corp. (d)

43,365

405,896

Huntington Bancshares, Inc.

78,705

628,853

KeyCorp

106,327

1,269,544

M&T Bank Corp. (d)

16,582

1,479,944

Marshall & Ilsley Corp.

55,767

1,123,705

National City Corp. (d)

163,623

286,340

PNC Financial Services Group, Inc.

74,481

5,563,731

Regions Financial Corp.

149,349

1,433,750

SunTrust Banks, Inc.

76,026

3,420,410

U.S. Bancorp, Delaware

374,457

13,487,941

Wachovia Corp. (d)

464,050

1,624,175

 

Shares

Value

Wells Fargo & Co.

711,267

$ 26,693,851

Zions Bancorp (d)

24,650

953,955

 

65,374,549

Consumer Finance - 0.7%

American Express Co.

249,212

8,829,581

Capital One Financial Corp.

80,766

4,119,066

Discover Financial Services

103,036

1,423,958

SLM Corp. (a)

100,446

1,239,504

 

15,612,109

Diversified Financial Services - 4.9%

Bank of America Corp.

980,205

34,307,175

CIT Group, Inc. (d)

61,338

426,912

Citigroup, Inc.

1,170,498

24,006,914

CME Group, Inc.

14,422

5,357,917

IntercontinentalExchange, Inc. (a)

16,204

1,307,339

JPMorgan Chase & Co.

791,873

36,980,469

Leucadia National Corp.

38,037

1,728,401

Moody's Corp.

42,431

1,442,654

NYSE Euronext

57,177

2,240,195

 

107,797,976

Insurance - 2.9%

AFLAC, Inc.

102,363

6,013,826

Allstate Corp.

116,401

5,368,414

American International Group, Inc.

577,971

1,924,643

Aon Corp.

59,686

2,683,483

Assurant, Inc.

25,492

1,402,060

Cincinnati Financial Corp.

34,904

992,670

Genworth Financial, Inc. Class A (non-vtg.)

93,090

801,505

Hartford Financial Services Group, Inc.

64,764

2,654,676

Lincoln National Corp.

55,206

2,363,369

Loews Corp.

77,834

3,073,665

Marsh & McLennan Companies, Inc.

110,248

3,501,476

MBIA, Inc. (d)

42,025

500,098

MetLife, Inc.

147,604

8,265,824

Principal Financial Group, Inc.

55,707

2,422,697

Progressive Corp.

145,211

2,526,671

Prudential Financial, Inc.

91,784

6,608,448

The Chubb Corp.

77,502

4,254,860

The Travelers Companies, Inc.

126,994

5,740,129

Torchmark Corp.

18,750

1,121,250

Unum Group

74,265

1,864,052

XL Capital Ltd. Class A

67,080

1,203,415

 

65,287,231

Real Estate Investment Trusts - 1.3%

Apartment Investment & Management Co. Class A

18,404

644,508

AvalonBay Communities, Inc.

16,561

1,629,934

Boston Properties, Inc.

25,754

2,412,120

Developers Diversified Realty Corp.

25,853

819,282

Equity Residential (SBI)

58,237

2,586,305

General Growth Properties, Inc.

48,912

738,571

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Real Estate Investment Trusts - continued

HCP, Inc.

54,091

$ 2,170,672

Host Hotels & Resorts, Inc.

111,661

1,483,975

Kimco Realty Corp.

48,811

1,803,078

Plum Creek Timber Co., Inc.

36,784

1,834,050

ProLogis Trust (d)

56,419

2,328,412

Public Storage

26,920

2,665,349

Simon Property Group, Inc. (d)

48,374

4,692,278

Vornado Realty Trust

29,440

2,677,568

 

28,486,102

Real Estate Management & Development - 0.0%

CB Richard Ellis Group, Inc. Class A (a)

36,972

494,316

Thrifts & Mortgage Finance - 0.1%

Hudson City Bancorp, Inc.

111,705

2,060,957

MGIC Investment Corp. (d)

26,884

188,995

Sovereign Bancorp, Inc.

116,814

461,415

 

2,711,367

TOTAL FINANCIALS

346,871,883

HEALTH CARE - 12.9%

Biotechnology - 1.7%

Amgen, Inc. (a)

227,427

13,479,598

Biogen Idec, Inc. (a)

62,390

3,137,593

Celgene Corp. (a)

97,778

6,187,392

Genzyme Corp. (a)

57,747

4,671,155

Gilead Sciences, Inc. (a)

197,737

9,012,852

 

36,488,590

Health Care Equipment & Supplies - 2.3%

Baxter International, Inc.

134,917

8,854,603

Becton, Dickinson & Co.

52,355

4,202,012

Boston Scientific Corp. (a)

322,566

3,957,885

C.R. Bard, Inc.

21,353

2,025,759

Covidien Ltd.

107,864

5,798,769

Hospira, Inc. (a)

34,274

1,309,267

Intuitive Surgical, Inc. (a)

8,348

2,011,701

Medtronic, Inc.

242,528

12,150,653

St. Jude Medical, Inc. (a)

73,468

3,195,123

Stryker Corp.

53,177

3,312,927

Varian Medical Systems, Inc. (a)

26,836

1,533,141

Zimmer Holdings, Inc. (a)

48,414

3,125,608

 

51,477,448

Health Care Providers & Services - 1.9%

Aetna, Inc.

101,371

3,660,507

AmerisourceBergen Corp.

34,061

1,282,397

Cardinal Health, Inc.

77,201

3,804,465

CIGNA Corp.

59,081

2,007,572

Coventry Health Care, Inc. (a)

31,838

1,036,327

DaVita, Inc. (a)

22,440

1,279,304

Express Scripts, Inc. (a)

53,013

3,913,420

Humana, Inc. (a)

36,304

1,495,725

 

Shares

Value

Laboratory Corp. of America Holdings (a)

23,903

$ 1,661,259

McKesson Corp.

59,308

3,191,363

Medco Health Solutions, Inc. (a)

108,701

4,891,545

Patterson Companies, Inc. (a)

19,579

595,397

Quest Diagnostics, Inc.

33,975

1,755,488

Tenet Healthcare Corp. (a)

89,167

494,877

UnitedHealth Group, Inc.

261,735

6,645,452

WellPoint, Inc. (a)

109,912

5,140,584

 

42,855,682

Health Care Technology - 0.0%

IMS Health, Inc.

39,093

739,249

Life Sciences Tools & Services - 0.4%

Applied Biosystems, Inc.

36,436

1,247,933

Millipore Corp. (a)

11,863

816,174

PerkinElmer, Inc.

25,689

641,454

Thermo Fisher Scientific, Inc. (a)

90,068

4,953,740

Waters Corp. (a)

21,277

1,237,896

 

8,897,197

Pharmaceuticals - 6.6%

Abbott Laboratories

331,358

19,079,594

Allergan, Inc.

66,100

3,404,150

Barr Pharmaceuticals, Inc. (a)

23,393

1,527,563

Bristol-Myers Squibb Co.

425,522

8,872,134

Eli Lilly & Co.

215,063

9,469,224

Forest Laboratories, Inc. (a)

65,532

1,853,245

Johnson & Johnson

600,682

41,615,249

King Pharmaceuticals, Inc. (a)

52,984

507,587

Merck & Co., Inc.

460,529

14,534,295

Mylan, Inc. (a)(d)

65,451

747,450

Pfizer, Inc.

1,448,990

26,719,376

Schering-Plough Corp.

349,424

6,453,861

Watson Pharmaceuticals, Inc. (a)

22,454

639,939

Wyeth

286,623

10,587,854

 

146,011,521

TOTAL HEALTH CARE

286,469,687

INDUSTRIALS - 10.9%

Aerospace & Defense - 2.7%

General Dynamics Corp.

85,392

6,286,559

Goodrich Corp.

26,892

1,118,707

Honeywell International, Inc.

160,017

6,648,706

L-3 Communications Holdings, Inc.

26,100

2,566,152

Lockheed Martin Corp.

71,566

7,848,643

Northrop Grumman Corp.

72,552

4,392,298

Precision Castparts Corp.

29,953

2,359,697

Raytheon Co.

89,614

4,795,245

Rockwell Collins, Inc.

34,266

1,647,852

The Boeing Co.

159,117

9,125,360

United Technologies Corp.

207,290

12,449,837

 

59,239,056

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Air Freight & Logistics - 1.0%

C.H. Robinson Worldwide, Inc.

36,544

$ 1,862,282

Expeditors International of
Washington, Inc.

45,797

1,595,567

FedEx Corp.

66,891

5,287,065

United Parcel Service, Inc. Class B

216,707

13,628,703

 

22,373,617

Airlines - 0.1%

Southwest Airlines Co.

157,759

2,289,083

Building Products - 0.1%

Masco Corp.

77,383

1,388,251

Commercial Services & Supplies - 0.4%

Allied Waste Industries, Inc. (a)

72,842

809,275

Avery Dennison Corp.

22,889

1,018,103

Cintas Corp.

28,412

815,709

Pitney Bowes, Inc.

44,663

1,485,491

R.R. Donnelley & Sons Co.

45,139

1,107,260

Waste Management, Inc.

105,426

3,319,865

 

8,555,703

Construction & Engineering - 0.2%

Fluor Corp.

38,477

2,143,169

Jacobs Engineering Group, Inc. (a)

26,314

1,429,113

 

3,572,282

Electrical Equipment - 0.4%

Cooper Industries Ltd. Class A

37,401

1,494,170

Emerson Electric Co.

166,790

6,803,364

Rockwell Automation, Inc.

31,294

1,168,518

 

9,466,052

Industrial Conglomerates - 3.1%

3M Co.

150,249

10,263,509

General Electric Co.

2,138,348

54,527,874

Textron, Inc.

53,424

1,564,255

Tyco International Ltd.

102,064

3,574,281

 

69,929,919

Machinery - 1.6%

Caterpillar, Inc.

130,845

7,798,362

Cummins, Inc.

43,572

1,904,968

Danaher Corp.

54,845

3,806,243

Deere & Co.

91,786

4,543,407

Dover Corp.

40,378

1,637,328

Eaton Corp.

35,726

2,007,087

Illinois Tool Works, Inc.

85,962

3,821,011

Ingersoll-Rand Co. Ltd. Class A

68,468

2,134,148

ITT Corp.

39,067

2,172,516

Manitowoc Co., Inc.

28,003

435,447

PACCAR, Inc.

78,102

2,982,715

Pall Corp.

25,768

886,162

Parker Hannifin Corp.

36,032

1,909,696

Terex Corp. (a)

20,894

637,685

 

36,676,775

 

Shares

Value

Professional Services - 0.1%

Equifax, Inc.

27,567

$ 949,683

Monster Worldwide, Inc. (a)

26,649

397,337

Robert Half International, Inc.

33,514

829,472

 

2,176,492

Road & Rail - 1.1%

Burlington Northern Santa Fe Corp.

60,704

5,610,871

CSX Corp.

87,623

4,781,587

Norfolk Southern Corp.

80,649

5,339,770

Ryder System, Inc.

12,134

752,308

Union Pacific Corp.

109,447

7,788,249

 

24,272,785

Trading Companies & Distributors - 0.1%

Fastenal Co.

27,777

1,371,906

W.W. Grainger, Inc.

13,929

1,211,405

 

2,583,311

TOTAL INDUSTRIALS

242,523,326

INFORMATION TECHNOLOGY - 15.7%

Communications Equipment - 2.6%

Ciena Corp. (a)

19,414

195,693

Cisco Systems, Inc. (a)

1,269,750

28,645,560

Corning, Inc.

339,175

5,304,697

Harris Corp.

28,846

1,332,685

JDS Uniphase Corp. (a)(d)

46,081

389,845

Juniper Networks, Inc. (a)

116,834

2,461,692

Motorola, Inc.

486,948

3,476,809

QUALCOMM, Inc.

352,728

15,156,722

Tellabs, Inc. (a)

85,459

346,964

 

57,310,667

Computers & Peripherals - 4.4%

Apple, Inc. (a)

190,421

21,643,251

Dell, Inc. (a)

374,648

6,174,199

EMC Corp. (a)

445,063

5,322,953

Hewlett-Packard Co.

526,439

24,342,539

International Business Machines Corp.

291,226

34,061,793

Lexmark International, Inc. Class A (a)

18,910

615,899

NetApp, Inc. (a)

70,374

1,282,918

QLogic Corp. (a)

28,198

433,121

SanDisk Corp. (a)

48,366

945,555

Sun Microsystems, Inc. (a)

161,848

1,230,045

Teradata Corp. (a)

38,369

748,196

 

96,800,469

Electronic Equipment & Components - 0.3%

Agilent Technologies, Inc. (a)

76,854

2,279,490

Amphenol Corp. Class A

38,004

1,525,481

Jabil Circuit, Inc.

45,147

430,702

Molex, Inc.

30,667

688,474

Tyco Electronics Ltd.

101,524

2,808,154

 

7,732,301

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Internet Software & Services - 1.5%

Akamai Technologies, Inc. (a)

36,352

$ 633,979

eBay, Inc. (a)

234,829

5,255,473

Google, Inc. Class A (sub. vtg.) (a)

51,369

20,574,312

VeriSign, Inc. (a)(d)

41,531

1,083,128

Yahoo!, Inc. (a)

297,877

5,153,272

 

32,700,164

IT Services - 0.9%

Affiliated Computer Services, Inc. Class A (a)

20,909

1,058,623

Automatic Data Processing, Inc.

109,381

4,676,038

Cognizant Technology Solutions Corp. Class A (a)

62,685

1,431,099

Computer Sciences Corp. (a)

32,531

1,307,421

Convergys Corp. (a)

26,185

387,014

Fidelity National Information
Services, Inc.

40,781

752,817

Fiserv, Inc. (a)

35,260

1,668,503

MasterCard, Inc. Class A

15,549

2,757,304

Paychex, Inc.

68,967

2,277,980

The Western Union Co.

156,729

3,866,504

Total System Services, Inc.

42,492

696,869

Unisys Corp. (a)

77,289

212,545

 

21,092,717

Office Electronics - 0.1%

Xerox Corp.

187,488

2,161,737

Semiconductors & Semiconductor Equipment - 2.2%

Advanced Micro Devices, Inc. (a)(d)

130,517

685,214

Altera Corp.

64,660

1,337,169

Analog Devices, Inc.

62,432

1,645,083

Applied Materials, Inc.

288,393

4,363,386

Broadcom Corp. Class A (a)

94,869

1,767,409

Intel Corp.

1,208,460

22,634,456

KLA-Tencor Corp.

37,235

1,178,488

Linear Technology Corp.

47,617

1,459,937

LSI Corp. (a)(d)

138,348

741,545

MEMC Electronic Materials, Inc. (a)

48,556

1,372,193

Microchip Technology, Inc. (d)

39,578

1,164,781

Micron Technology, Inc. (a)(d)

163,587

662,527

National Semiconductor Corp.

41,909

721,254

Novellus Systems, Inc. (a)(d)

21,312

418,568

NVIDIA Corp. (a)

119,638

1,281,323

Teradyne, Inc. (a)

36,298

283,487

Texas Instruments, Inc.

281,775

6,058,163

Xilinx, Inc. (d)

59,423

1,393,469

 

49,168,452

Software - 3.7%

Adobe Systems, Inc. (a)

114,022

4,500,448

Autodesk, Inc. (a)

48,354

1,622,277

BMC Software, Inc. (a)

40,847

1,169,450

CA, Inc.

84,664

1,689,893

 

Shares

Value

Citrix Systems, Inc. (a)

39,203

$ 990,268

Compuware Corp. (a)

54,790

530,915

Electronic Arts, Inc. (a)

68,531

2,534,962

Intuit, Inc. (a)

69,001

2,181,122

Microsoft Corp.

1,687,814

45,047,756

Novell, Inc. (a)

74,212

381,450

Oracle Corp. (a)

842,276

17,106,626

Salesforce.com, Inc. (a)

22,368

1,082,611

Symantec Corp. (a)

180,367

3,531,586

 

82,369,364

TOTAL INFORMATION TECHNOLOGY

349,335,871

MATERIALS - 3.3%

Chemicals - 2.0%

Air Products & Chemicals, Inc.

45,534

3,118,624

Ashland, Inc.

12,189

356,406

CF Industries Holdings, Inc.

12,143

1,110,599

Dow Chemical Co.

198,824

6,318,627

E.I. du Pont de Nemours & Co.

193,922

7,815,057

Eastman Chemical Co.

16,421

904,140

Ecolab, Inc.

37,737

1,830,999

Hercules, Inc.

24,228

479,472

International Flavors & Fragrances, Inc.

16,887

666,361

Monsanto Co.

118,224

11,701,812

PPG Industries, Inc.

35,279

2,057,471

Praxair, Inc.

67,707

4,857,300

Rohm & Haas Co.

26,622

1,863,540

Sigma Aldrich Corp.

27,078

1,419,429

 

44,499,837

Construction Materials - 0.1%

Vulcan Materials Co. (d)

23,609

1,758,871

Containers & Packaging - 0.1%

Ball Corp.

20,782

820,681

Bemis Co., Inc.

21,421

561,444

Pactiv Corp. (a)

28,141

698,741

Sealed Air Corp.

33,981

747,242

 

2,828,108

Metals & Mining - 0.8%

AK Steel Holding Corp.

24,118

625,139

Alcoa, Inc.

174,841

3,947,910

Allegheny Technologies, Inc.

21,557

637,009

Freeport-McMoRan Copper & Gold,
Inc. Class B

82,532

4,691,944

Newmont Mining Corp.

98,164

3,804,837

Nucor Corp.

68,048

2,687,896

Titanium Metals Corp. (d)

18,292

207,431

United States Steel Corp.

25,254

1,959,963

 

18,562,129

Paper & Forest Products - 0.3%

International Paper Co.

91,903

2,406,021

Common Stocks - continued

Shares

Value

MATERIALS - continued

Paper & Forest Products - continued

MeadWestvaco Corp.

36,716

$ 855,850

Weyerhaeuser Co.

45,415

2,751,241

 

6,013,112

TOTAL MATERIALS

73,662,057

TELECOMMUNICATION SERVICES - 3.0%

Diversified Telecommunication Services - 2.7%

AT&T, Inc.

1,266,712

35,366,599

CenturyTel, Inc.

22,000

806,300

Embarq Corp.

30,633

1,242,168

Frontier Communications Corp.

67,915

781,023

Qwest Communications
International, Inc. (d)

319,056

1,030,551

Verizon Communications, Inc.

612,126

19,643,123

Windstream Corp.

94,495

1,033,775

 

59,903,539

Wireless Telecommunication Services - 0.3%

American Tower Corp. Class A (a)

84,679

3,045,904

Sprint Nextel Corp.

613,514

3,742,435

 

6,788,339

TOTAL TELECOMMUNICATION SERVICES

66,691,878

UTILITIES - 3.5%

Electric Utilities - 2.1%

Allegheny Energy, Inc.

36,297

1,334,641

American Electric Power Co., Inc.

86,467

3,201,873

Duke Energy Corp.

271,892

4,739,078

Edison International

70,034

2,794,357

Entergy Corp.

41,180

3,665,432

Exelon Corp.

141,295

8,847,893

FirstEnergy Corp.

65,525

4,389,520

FPL Group, Inc.

87,806

4,416,642

Pepco Holdings, Inc.

43,369

993,584

Pinnacle West Capital Corp.

21,654

745,114

PPL Corp.

80,497

2,979,999

Progress Energy, Inc.

56,315

2,428,866

Southern Co.

165,553

6,239,693

 

46,776,692

Gas Utilities - 0.1%

Nicor, Inc.

9,704

430,372

Questar Corp.

37,269

1,525,047

 

1,955,419

Independent Power Producers & Energy Traders - 0.1%

AES Corp. (a)

144,608

1,690,468

Constellation Energy Group, Inc.

38,333

931,492

Dynegy, Inc. Class A (a)

108,669

389,035

 

3,010,995

 

Shares

Value

Multi-Utilities - 1.2%

Ameren Corp.

45,185

$ 1,763,571

CenterPoint Energy, Inc.

73,475

1,070,531

CMS Energy Corp.

48,425

603,860

Consolidated Edison, Inc.

58,723

2,522,740

Dominion Resources, Inc.

124,659

5,332,912

DTE Energy Co.

35,057

1,406,487

Integrys Energy Group, Inc.

16,428

820,414

NiSource, Inc.

58,946

870,043

PG&E Corp.

77,072

2,886,346

Public Service Enterprise Group, Inc.

109,298

3,583,881

Sempra Energy

52,960

2,672,891

TECO Energy, Inc. (d)

45,728

719,301

Xcel Energy, Inc.

95,869

1,916,421

 

26,169,398

TOTAL UTILITIES

77,912,504

TOTAL COMMON STOCKS

(Cost $1,418,175,235)

2,188,523,047

U.S. Treasury Obligations - 0.2%

 

Principal Amount

 

U.S. Treasury Bills, yield at date of purchase 0.77% to 1.56% 12/26/08 to 4/2/09 (e)
(Cost $4,174,641)

$ 4,200,000

4,174,481

Money Market Funds - 1.8%

Shares

 

Fidelity Cash Central Fund, 1.92% (b)

7,337,032

7,337,032

Fidelity Securities Lending Cash Central Fund, 2.14% (b)(c)

32,514,994

32,514,994

TOTAL MONEY MARKET FUNDS

(Cost $39,852,026)

39,852,026

TOTAL INVESTMENT PORTFOLIO - 100.5%

(Cost $1,462,201,902)

2,232,549,554

NET OTHER ASSETS - (0.5)%

(11,243,392)

NET ASSETS - 100%

$ 2,221,306,162

Futures Contracts

 

Expiration Date

Underlying Face Amount at Value

Unrealized Appreciation/
(Depreciation)

Purchased

Equity Index Contracts

116 CME S&P 500 Index Contracts

Dec. 2008

$ 33,854,600

$ (134,383)

The face value of futures purchased as a percentage of net assets - 1.5%

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.

(c) Investment made with cash collateral received from securities on loan.

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

(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $1,197,074.

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

$ 568,366

Fidelity Securities Lending Cash Central Fund

512,689

Total

$ 1,081,055

Other Information

The following is a summary of the inputs used, as of September 30, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Investment Valuation section at the end of this listing.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities

$ 2,232,549,554

$ 2,228,375,073

$ 4,174,481

$ -

Other Financial Instruments*

$ (134,383)

$ (134,383)

$ -

$ -

*Other financial instruments include Futures Contracts.

Income Tax Information

At September 30, 2008, the aggregate cost of investment securities for income tax purposes was $1,468,079,128. Net unrealized appreciation aggregated $764,470,426, of which $1,012,052,653 related to appreciated investment securities and $247,582,227 related to depreciated investment securities.

Investment Valuation

Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Security transactions are accounted for as of trade date. 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. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. 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.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value calculation under these procedures may differ from published prices for the same securities.

The Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), effective with the beginning of the Fund's fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1 - Quoted prices in active markets for identical securities.

Level 2 - Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants may use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.

Level 3 - Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable or deemed less relevant (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

For additional information on the Fund's policy regarding valuation of investments and other significant accounting policies, please refer to the Fund's most recent semiannual or annual shareholder report.

Quarterly Report

The fund's schedule of investments as of the date on the cover of this report has not been audited. This report is provided for the general information of the fund's shareholders. For more information regarding the fund and its holdings, please call Fidelity at 1-800-634-9361 for a free copy of the fund's most recent prospectus and annual report.

Third party trademarks and service marks are the property of their respective owners. All other trademarks and service marks are the property of FMR LLC or an affiliate.

Quarterly Report

Item 2. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Variable Insurance Products Fund II's (the "Trust") 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 Trust's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.

Item 3. Exhibits

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.

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 II

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

December 1, 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/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

December 1, 2008

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

December 1, 2008