NPORT-EX 2 Consumer_Discretionary_Index.htm HTML

Quarterly Holdings Report

for

Fidelity® MSCI Consumer Discretionary Index ETF

October 31, 2019

 

 

T01-QTLY-1219

1.9584803.105

Schedule of Investments October 31, 2019 (Unaudited)

Showing Percentage of Net Assets

 

Common Stocks – 99.9%             
    Shares      Value  

AUTO COMPONENTS – 2.6%

 

Auto Parts & Equipment – 2.4%

 

Adient PLC

     20,677      $ 438,146  

American Axle & Manufacturing Holdings, Inc. (a)

     26,385        220,579  

Aptiv PLC

     59,898        5,363,866  

Autoliv, Inc.

     19,250        1,498,420  

BorgWarner, Inc.

     48,151        2,006,934  

Cooper-Standard Holding, Inc. (a)

     4,003        127,535  

Dana, Inc.

     33,431        542,585  

Delphi Technologies PLC

     20,311        247,997  

Dorman Products, Inc. (a)

     6,526        469,546  

Fox Factory Holding Corp. (a)

     8,822        537,613  

Garrett Motion, Inc. (a)

     17,709        168,235  

Gentex Corp.

     59,375        1,665,469  

Gentherm, Inc. (a)

     7,785        325,179  

LCI Industries

     5,791        562,422  

Lear Corp.

     13,752        1,619,573  

Modine Manufacturing Co. (a)

     11,616        132,771  

Motorcar Parts of America, Inc. (a)

     4,312        82,187  

Standard Motor Products, Inc.

     4,636        242,741  

Stoneridge, Inc. (a)

     6,761        208,780  

Tenneco, Inc. Class A

     12,173        153,258  

Veoneer, Inc. (a)

     24,662        392,619  

Visteon Corp. (a)

     6,569        611,048  
    

 

 

  
       17,617,503  
    

 

 

  

Tires & Rubber – 0.2%

     

Cooper Tire & Rubber Co.

     11,743        331,622  

The Goodyear Tire & Rubber Co.

     53,900        855,393  
    

 

 

  
       1,187,015  
    

 

 

  

TOTAL AUTO COMPONENTS

 

      18,804,518  
    

 

 

  

AUTOMOBILES – 4.3%

 

Automobile Manufacturers – 4.1%

 

Ford Motor Co.

     910,361        7,820,001  

General Motors Co.

     296,559        11,020,133  

Tesla Motors, Inc. (a)

     30,426        9,581,756  

Thor Industries, Inc.

     12,794        809,348  

Winnebago Industries, Inc.

     7,045        338,653  
    

 

 

  
       29,569,891  
    

 

 

  

Motorcycle Manufacturers – 0.2%

 

Harley-Davidson, Inc.

     37,003        1,439,787  
    

 

 

  

TOTAL AUTOMOBILES

        31,009,678  
    

 

 

  

DISTRIBUTORS – 1.1%

 

Distributors – 1.1%

     

Core-Mark Holding Co., Inc.

     10,695        326,411  

Genuine Parts Co.

     33,932        3,480,745  

LKQ Corp. (a)

     72,945        2,479,400  

Pool Corp.

     9,240        1,916,376  
    

 

 

  

TOTAL DISTRIBUTORS

        8,202,932  
    

 

 

  
                 
    Shares      Value  

DIVERSIFIED CONSUMER SERVICES – 1.7%

 

Education Services – 0.9%

 

Adtalem Global Education, Inc. (a)

     13,079      $ 389,493  

American Public Education, Inc. (a)

     3,768        81,841  

Bright Horizons Family Solutions, Inc. (a)

     13,495        2,004,277  

Career Education Corp. (a)

     16,246        230,043  

Chegg, Inc. (a)

     24,887        763,036  

Graham Holdings Co. Class B

     1,011        636,586  

Grand Canyon Education, Inc. (a)

     11,231        1,032,803  

Houghton Mifflin Harcourt Co. (a)

     24,009        155,098  

K12, Inc. (a)

     8,765        173,459  

Laureate Education, Inc. Class A (a)

     22,582        349,005  

Strategic Education, Inc.

     5,069        623,639  
    

 

 

  
       6,439,280  
    

 

 

  

Specialized Consumer Services – 0.8%

 

Carriage Services, Inc.

     4,134        106,492  

frontdoor, Inc. (a)

     19,712        950,710  

H&R Block, Inc.

     47,178        1,178,978  

Regis Corp. (a)

     6,464        133,159  

Service Corp. International

     42,337        1,925,487  

ServiceMaster Global Holdings, Inc. (a)

     31,598        1,275,927  

WW International, Inc. (a)

     10,844        378,130  
    

 

 

  
       5,948,883  
    

 

 

  

TOTAL DIVERSIFIED CONSUMER SERVICES

 

      12,388,163  
    

 

 

  

HOTELS, RESTAURANTS & LEISURE – 19.5%

 

Casinos & Gaming – 2.3%

 

Boyd Gaming Corp.

     19,474        530,667  

Caesars Entertainment Corp. (a)

     125,025        1,535,307  

Churchill Downs, Inc.

     8,429        1,095,686  

Eldorado Resorts, Inc. (a)

     15,267        683,504  

Everi Holdings, Inc. (a)

     16,890        169,913  

Golden Entertainment, Inc. (a)

     4,387        63,524  

Las Vegas Sands Corp.

     80,789        4,995,992  

MGM Resorts International

     118,559        3,378,931  

Monarch Casino & Resort, Inc. (a)

     2,879        124,344  

Penn National Gaming, Inc. (a)

     25,850        550,993  

PlayAGS, Inc. (a)

     6,483        74,814  

Red Rock Resorts, Inc. Class A

     16,362        356,364  

Scientific Games Corp. Class A (a)

     11,968        287,112  

Twin River Worldwide Holdings, Inc.

     5,747        144,250  

Wynn Resorts Ltd.

     22,510        2,731,363  
    

 

 

  
       16,722,764  
    

 

 

  

Hotels, Resorts & Cruise Lines – 4.4%

 

BBX Capital Corp.

     10,679        47,735  

Carnival Corp.

     97,915        4,199,574  

Choice Hotels International, Inc.

     8,382        741,639  

Extended Stay America, Inc.

     43,743        621,588  

Hilton Grand Vacations, Inc. (a)

     21,187        735,825  

Hilton Worldwide Holdings, Inc.

     64,237        6,228,420  

Lindblad Expeditions Holdings, Inc. (a)

     5,768        90,788  

Marriott International, Inc. Class A

     65,754        8,321,169  
 

 

  2  

Schedule of Investments (Unaudited) – continued

 

Common Stocks – continued             
    Shares      Value  

HOTELS, RESTAURANTS & LEISURE – continued

 

Hotels, Resorts & Cruise Lines – continued

 

Marriott Vacations Worldwide Corp.

     8,872      $ 975,299  

Norwegian Cruise Line Holdings Ltd. (a)

     50,039        2,539,980  

Playa Hotels & Resorts N.V. (a)

     13,471        112,348  

Royal Caribbean Cruises Ltd.

     41,398        4,505,344  

Wyndham Destinations, Inc.

     21,694        1,006,819  

Wyndham Hotels & Resorts, Inc.

     22,592        1,219,290  
    

 

 

  
       31,345,818  
    

 

 

  

Leisure Facilities – 0.6%

     

Planet Fitness, Inc. Class A (a)

     19,637        1,250,091  

SeaWorld Entertainment, Inc. (a)

     12,649        334,187  

Six Flags Entertainment Corp.

     17,694        746,510  

Vail Resorts, Inc.

     9,338        2,169,871  
    

 

 

  
       4,500,659  
    

 

 

  

Restaurants – 12.2%

 

Aramark

     57,249        2,505,216  

Biglari Holdings, Inc. Class B (a)

     211        17,614  

BJ’s Restaurants, Inc.

     4,837        191,497  

Bloomin’ Brands, Inc.

     20,363        403,391  

Brinker International, Inc.

     8,762        389,471  

Carrols Restaurant Group, Inc. (a)

     8,064        57,496  

Chipotle Mexican Grill, Inc. (a)

     6,116        4,759,226  

Chuys Holdings, Inc. (a)

     3,888        94,751  

Cracker Barrel Old Country Store, Inc.

     4,732        735,826  

Darden Restaurants, Inc.

     28,569        3,207,442  

Dave & Buster’s Entertainment, Inc.

     8,415        334,749  

Del Taco Restaurants, Inc. (a)

     7,367        56,247  

Denny’s Corp. (a)

     14,076        283,209  

Dine Brands Global, Inc.

     3,911        286,090  

Domino’s Pizza, Inc.

     9,072        2,464,137  

Dunkin’ Brands Group, Inc.

     19,200        1,509,504  

El Pollo Loco Holdings, Inc. (a)

     5,379        62,504  

Fiesta Restaurant Group, Inc. (a)

     5,268        45,278  

Jack in the Box, Inc.

     5,410        454,548  

McDonald’s Corp.

     177,384        34,891,433  

Noodles & Co. (a)

     5,928        31,596  

Papa John’s International, Inc.

     4,800        281,040  

Red Robin Gourmet Burgers, Inc. (a)

     2,972        90,646  

Ruth’s Hospitality Group, Inc.

     6,717        138,236  

Shake Shack, Inc. Class A (a)

     6,524        536,795  

Starbucks Corp.

     281,377        23,793,239  

Texas Roadhouse, Inc.

     15,899        898,293  

The Cheesecake Factory, Inc.

     9,951        415,852  

Wendy’s Co.

     42,994        910,613  

Wingstop, Inc.

     6,797        567,074  

Yum! Brands, Inc.

     71,082        7,229,750  
    

 

 

  
       87,642,763  
    

 

 

  

TOTAL HOTELS, RESTAURANTS & LEISURE

 

      140,212,004  
    

 

 

  

HOUSEHOLD DURABLES – 4.8%

 

Consumer Electronics – 0.4%

 

Garmin Ltd.

     30,873        2,894,344  

GoPro, Inc. Class A (a)

     28,127        117,008  
                 
    Shares      Value  

Sonos, Inc. (a)

     5,088      $ 66,551  

Universal Electronics, Inc. (a)

     3,168        165,116  
    

 

 

  
       3,243,019  
    

 

 

  

Home Furnishings – 0.7%

 

Ethan Allen Interiors, Inc.

     5,795        114,219  

Hooker Furniture Corp.

     2,706        64,051  

La-Z-Boy, Inc.

     10,908        387,343  

Leggett & Platt, Inc.

     30,495        1,564,394  

Mohawk Industries, Inc. (a)

     14,301        2,050,477  

Tempur Sealy International, Inc. (a)

     10,841        985,989  
    

 

 

  
       5,166,473  
    

 

 

  

Homebuilding – 2.9%

 

Beazer Homes U.S.A., Inc. (a)

     7,006        105,160  

Cavco Industries, Inc. (a)

     2,019        386,941  

Century Communities, Inc. (a)

     6,108        184,278  

D.R. Horton, Inc.

     82,359        4,313,141  

Green Brick Partners, Inc. (a)

     5,821        58,618  

Installed Building Products, Inc. (a)

     5,267        343,514  

KB Home

     18,195        649,380  

Lennar Corp. Class A

     66,309        3,952,016  

LGI Homes, Inc. (a)

     4,517        354,494  

M.D.C. Holdings, Inc.

     11,447        443,113  

M/I Homes, Inc. (a)

     6,347        280,410  

Meritage Homes Corp. (a)

     8,423        607,214  

NVR, Inc. (a)

     793        2,883,816  

PulteGroup, Inc.

     61,163        2,400,036  

Skyline Champion Corp. (a)

     11,950        337,349  

Taylor Morrison Home Corp. Class A (a)

     23,573        590,504  

Toll Brothers, Inc.

     32,222        1,281,469  

TopBuild Corp. (a)

     8,000        831,440  

TRI Pointe Group, Inc. (a)

     33,100        520,994  

William Lyon Homes Class A (a)

     7,500        145,125  
    

 

 

  
       20,669,012  
    

 

 

  

Household Appliances – 0.5%

 

Hamilton Beach Brands Holding Co. Class A

     1,592        29,691  

Helen of Troy Ltd. (a)

     5,830        873,101  

iRobot Corp. (a)

     6,486        311,717  

Whirlpool Corp.

     14,715        2,238,446  
    

 

 

  
       3,452,955  
    

 

 

  

Housewares & Specialties – 0.3%

 

Newell Brands, Inc.

     93,377        1,771,362  

Tupperware Brands Corp.

     11,168        107,548  
    

 

 

  
       1,878,910  
    

 

 

  

TOTAL HOUSEHOLD DURABLES

 

      34,410,369  
    

 

 

  

INTERNET & DIRECT MARKETING RETAIL – 29.9%

 

Internet & Direct Marketing Retail – 29.9%

 

1-800-FLOWERS.com, Inc. Class A (a)

     5,721        81,582  

Amazon.com, Inc. (a)

     97,219        172,725,109  

Booking Holdings, Inc. (a)

     10,057        20,604,480  

Duluth Holdings, Inc. Class B (a)

     4,341        40,111  

eBay, Inc.

     192,343        6,780,091  

Etsy, Inc. (a)

     27,920        1,242,161  
 

 

  3  

 

Common Stocks – continued             
    Shares      Value  

INTERNET & DIRECT MARKETING RETAIL – continued

 

Internet & Direct Marketing Retail – continued

 

Expedia Group, Inc.

     32,558      $ 4,449,376  

Groupon, Inc. (a)

     106,049        294,816  

GrubHub, Inc. (a)

     21,285        724,967  

Lands’ End, Inc. (a)

     2,588        31,237  

MercadoLibre, Inc. (a)

     10,312        5,377,914  

Overstock.com, Inc. (a)

     6,525        68,708  

PetMed Express, Inc.

     4,744        111,081  

Quotient Technology, Inc. (a)

     18,517        159,431  

Qurate Retail, Inc. Class A (a)

     93,139        888,546  

Shutterstock, Inc. (a)

     4,583        185,978  

Stamps.com, Inc. (a)

     3,802        321,003  

Stitch Fix, Inc. Class A (a)

     9,672        221,102  

Waitr Holdings, Inc. (a)

     11,167        4,855  

Wayfair, Inc. Class A (a)

     14,140        1,162,732  
    

 

 

  

TOTAL INTERNET & DIRECT MARKETING RETAIL

 

      215,475,280  
    

 

 

  

LEISURE PRODUCTS – 1.1%

     

Leisure Products – 1.1%

 

Acushnet Holdings Corp.

     8,017        228,084  

American Outdoor Brands Corp. (a)

     12,513        88,592  

Brunswick Corp.

     20,263        1,180,117  

Callaway Golf Co.

     20,712        418,797  

Hasbro, Inc.

     27,776        2,702,883  

Johnson Outdoors, Inc. Class A

     1,519        88,937  

Malibu Boats, Inc. Class A (a)

     4,954        161,599  

Marine Products Corp.

     1,980        26,572  

MasterCraft Boat Holdings, Inc. (a)

     4,268        67,221  

Mattel, Inc. (a)

     80,051        955,809  

Polaris, Inc.

     13,483        1,330,098  

Sturm, Ruger & Co., Inc.

     4,009        183,452  

Vista Outdoor, Inc. (a)

     13,214        88,534  

YETI Holdings, Inc. (a)

     6,837        227,740  
    

 

 

  

TOTAL LEISURE PRODUCTS

 

      7,748,435  
    

 

 

  

MEDIA – 0.0%

     

Broadcasting – 0.0%

 

Media General, Inc. (a)

     7,026        0  
    

 

 

  

MULTILINE RETAIL – 4.7%

     

Department Stores – 0.6%

 

Dillard’s, Inc. Class A

     2,586        178,382  

J.C. Penney Co., Inc. (a)

     77,043        77,043  

Kohl’s Corp.

     37,905        1,943,010  

Macy’s, Inc.

     71,863        1,089,443  

Nordstrom, Inc.

     25,214        905,183  
    

 

 

  
       4,193,061  
    

 

 

  

General Merchandise Stores – 4.1%

 

Big Lots, Inc.

     9,190        199,147  

Dollar General Corp.

     60,012        9,622,324  

Dollar Tree, Inc. (a)

     55,193        6,093,307  
                 
    Shares      Value  

Ollie’s Bargain Outlet Holdings, Inc. (a)

     13,316      $ 850,626  

Target Corp.

     119,017        12,724,108  
    

 

 

  
       29,489,512  
    

 

 

  

TOTAL MULTILINE RETAIL

        33,682,573  
    

 

 

  

SPECIALTY RETAIL – 22.8%

 

Apparel Retail – 4.9%

 

Abercrombie & Fitch Co. Class A

     15,530        251,431  

American Eagle Outfitters, Inc.

     37,734        580,349  

Boot Barn Holdings, Inc. (a)

     6,636        232,592  

Burlington Stores, Inc. (a)

     15,431        2,965,375  

Caleres, Inc.

     9,839        211,735  

Chico’s FAS, Inc.

     26,946        92,694  

Citi Trends, Inc.

     2,818        50,301  

Designer Brands, Inc. Class A

     14,905        245,932  

Express, Inc. (a)

     15,723        50,628  

Foot Locker, Inc.

     26,067        1,134,175  

Gap, Inc.

     52,506        853,748  

Genesco, Inc. (a)

     4,011        155,827  

Guess?, Inc.

     11,594        194,200  

L Brands, Inc.

     54,502        928,714  

Ross Stores, Inc.

     85,361        9,361,541  

Shoe Carnival, Inc.

     2,833        94,027  

Tailored Brands, Inc.

     11,496        53,341  

The Buckle, Inc.

     6,750        141,210  

The Cato Corp. Class A

     5,244        91,718  

The Children’s Place Retail Stores, Inc.

     3,658        299,627  

The TJX Cos., Inc.

     281,718        16,241,043  

Urban Outfitters, Inc. (a)

     15,704        450,705  

Zumiez, Inc. (a)

     4,686        149,530  
    

 

 

  
       34,830,443  
    

 

 

  

Automotive Retail – 3.6%

 

Advance Auto Parts, Inc.

     16,665        2,707,729  

America’s Car-Mart, Inc. (a)

     1,454        132,299  

Asbury Automotive Group, Inc. (a)

     4,499        463,982  

AutoNation, Inc. (a)

     12,400        630,540  

AutoZone, Inc. (a)

     5,717        6,542,421  

Camping World Holdings, Inc. Class A

     7,618        71,990  

CarMax, Inc. (a)

     38,608        3,597,107  

Carvana Co. (a)

     10,843        879,150  

Group 1 Automotive, Inc.

     4,090        406,710  

Lithia Motors, Inc. Class A

     5,213        820,943  

Monro, Inc.

     7,688        539,006  

Murphy USA, Inc. (a)

     7,116        839,190  

O’Reilly Automotive, Inc. (a)

     18,185        7,919,749  

Penske Automotive Group, Inc.

     8,767        427,128  

Sonic Automotive, Inc. Class A

     5,320        171,464  
    

 

 

  
       26,149,408  
    

 

 

  

Computer & Electronics Retail – 0.6%

 

Best Buy Co., Inc.

     56,016        4,023,629  

Conn’s, Inc. (a)

     4,368        105,662  
 

 

  4  

Schedule of Investments (Unaudited) – continued

 

Common Stocks – continued             
    Shares      Value  

SPECIALTY RETAIL – continued

 

Computer & Electronics Retail – continued

 

GameStop Corp. Class A

     20,641      $ 112,287  

Rent-A-Center, Inc.

     10,771        278,646  
    

 

 

  
       4,520,224  
    

 

 

  

Home Improvement Retail – 11.3%

 

Floor & Decor Holdings, Inc. Class A (a)

     16,050        735,571  

Lowe’s Cos., Inc.

     184,688        20,613,028  

Lumber Liquidators Holdings, Inc. (a)

     6,518        60,161  

The Home Depot, Inc.

     255,610        59,960,994  

Tile Shop Holdings, Inc.

     9,098        15,285  
    

 

 

  
       81,385,039  
    

 

 

  

Homefurnishing Retail – 0.6%

 

Aarons, Inc.

     15,735        1,179,024  

At Home Group, Inc. (a)

     10,922        93,055  

Bed Bath & Beyond, Inc.

     30,527        418,220  

Haverty Furniture Companies, Inc.

     4,137        75,045  

RH (a)

     3,859        701,180  

Sleep Number Corp. (a)

     6,998        336,744  

Williams-Sonoma, Inc.

     18,320        1,223,593  
    

 

 

  
       4,026,861  
    

 

 

  

Specialty Stores – 1.8%

 

Dick’s Sporting Goods, Inc.

     15,606        607,542  

Five Below, Inc. (a)

     12,995        1,625,804  

Hibbett Sports, Inc. (a)

     4,197        100,140  

MarineMax, Inc. (a)

     5,242        80,989  

National Vision Holdings, Inc. (a)

     18,027        429,043  

Office Depot, Inc.

     128,446        264,599  

Party City Holdings, Inc. (a)

     12,894        72,464  

Sally Beauty Holdings, Inc. (a)

     28,127        435,968  

Signet Jewelers Ltd.

     11,910        191,036  

The Container Store Group, Inc. (a)

     4,426        18,678  

The Michaels Cos., Inc. (a)

     21,709        189,520  

Tiffany & Co., Inc.

     25,386        3,160,811  

Tractor Supply Co.

     28,027        2,663,126  

Ulta Salon, Cosmetics & Fragrance, Inc. (a)

     12,901        3,007,868  

Winmark Corp.

     603        108,540  
    

 

 

  
       12,956,128  
    

 

 

  

TOTAL SPECIALTY RETAIL

        163,868,103  
    

 

 

  

TEXTILES, APPAREL & LUXURY GOODS – 7.4%

 

   

Apparel, Accessories & Luxury Goods – 3.2%

 

Capri Holdings Ltd. (a)

     35,111        1,090,899  

Carter’s, Inc.

     10,518        1,054,324  

Columbia Sportswear Co.

     7,114        643,461  

Fossil Group, Inc. (a)

     10,773        117,210  
                 
    Shares      Value  

G-III Apparel Group Ltd. (a)

     9,765      $ 245,199  

Hanesbrands, Inc.

     83,984        1,277,397  

Kontoor Brands, Inc. (a)

     11,277        428,526  

Lululemon Athletica, Inc. (a)

     25,724        5,254,641  

Movado Group, Inc.

     3,786        98,625  

Oxford Industries, Inc.

     3,986        274,476  

PVH Corp.

     17,453        1,521,203  

Ralph Lauren Corp.

     12,100        1,162,326  

Tapestry, Inc.

     67,402        1,743,016  

Under Armour, Inc. Class A (a)

     43,641        901,187  

Under Armour, Inc. Class C (a)

     45,283        837,736  

Vera Bradley, Inc. (a)

     5,571        59,944  

VF Corp.

     78,423        6,453,429  
    

 

 

  
       23,163,599  
    

 

 

  

Footwear – 4.2%

 

Crocs, Inc. (a)

     14,948        523,031  

Deckers Outdoor Corp. (a)

     6,785        1,037,427  

NIKE, Inc. Class B

     291,953        26,144,391  

Skechers U.S.A., Inc. Class A (a)

     31,244        1,167,588  

Steven Madden Ltd.

     18,946        780,196  

Wolverine World Wide, Inc.

     20,513        608,826  
    

 

 

  
       30,261,459  
    

 

 

  

Textiles – 0.0%

 

Unifi, Inc. (a)

     3,164        86,377  
    

 

 

  

TOTAL TEXTILES, APPAREL & LUXURY GOODS

 

      53,511,435  
    

 

 

  

TOTAL COMMON STOCKS
(Cost $690,264,571)

        719,313,490  
    

 

 

  
    
Money Market Fund – 0.1%         

State Street Institutional Treasury Plus Money Market Fund, Trust Class,
1.68% (b)
(Cost $414,000)

     414,000        414,000  
    

 

 

  

TOTAL INVESTMENT IN SECURITIES – 100.0%
(Cost $690,678,571)

 

      719,727,490  

NET OTHER ASSETS (LIABILITIES) – 0.0%

 

      169,420  
    

 

 

  

NET ASSETS – 100.0%

      $ 719,896,910  
    

 

 

  

Legend

 

(a)   Non-income producing.

 

(b)   The rate quoted is the annualized seven-day yield of the fund at period end.
 

 

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. The Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund’s investments to the Fair Value Committee (the Committee) established by the Fund’s investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they

 

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may be utilized to a significant extent. The Committee oversees the Fund’s valuation policies and procedures and reports to the Board on the Committee’s activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund’s investments and ratifies the fair value determinations of the Committee. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels: Level 1 – quoted prices in active markets for identical investments: Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds etc.): Level 3 – unobservable inputs (including the Fund’s own assumptions based on the best information available). Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. Valuation techniques used to value the Fund’s investments by major category are as follows:

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing vendor on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, Exchange-Traded Funds (ETFs) and certain indexes as well as quoted prices for similar securities may be used and would be categorized as Level 2 in the hierarchy. For equity securities, including restricted securities, where observable inputs are limited, assumptions about market activity and risk are used and these securities may be categorized as Level 3 in the hierarchy.

Investments in open-end mutual funds (Underlying Funds) are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy. If an unaffiliated underlying fund’s NAV is unavailable, shares of that fund may be valued by another method that the Board believes reflects fair value in accordance with the Board’s fair value pricing policies and is categorized as Level 2 in 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.

 

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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 see the fund’s most recent prospectus and semiannual 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.

 

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