[N-CSR] Fidelity Enhanced Emerging Markets ETF Certified Shareholder Report
Filing Impact
Filing Sentiment
Form Type
N-CSR
Rhea-AI Filing Summary
Fidelity Covington Trust’s Form N-CSR aggregates FY 2025 results (ended 5/31/25) for six “Disruptive” ETFs.
- Fidelity Disruptors ETF (fund-of-funds): 1-yr NAV return +14.68% vs. MSCI ACWI +14.02%; since 4/16/20 +13.12% vs. +15.35%. Assets $90.2 m; zero advisory fee; turnover 5%. Portfolio 81.2% domestic equity ETFs, 18.8% international; top sleeves are Disruptive Communications (21.1%) and Finance (21.0%).
- Fidelity Disruptive Technology ETF: +14.72% outpacing sector index (+13.20%); AUM $169.9 m; fee 0.50%; 46 holdings led by MSFT 6.4% & NVDA 6.1%.
- Disruptive Communications ETF: +19.63% roughly inline with sector index (+19.98%); AUM $69.1 m; Sea Ltd 7.2% top weight.
- Disruptive Automation ETF: +11.45% lagging industrials index (+13.96%); AUM $120.5 m; TSMC & PTC each 5.8%.
- Disruptive Finance ETF: +25.56% below financials index (+28.46%); AUM $53.8 m; Mastercard 6.5% largest position.
- Disruptive Medicine ETF: –0.19% vs. healthcare index +4.44%; AUM $49.6 m; Boston Scientific 6.5%.
Global equity tailwinds and stock selection in application software, interactive entertainment and payment processing aided Technology and Communications, while poor picks in biotechnology, aerospace/defense and payments weighed on Medicine, Automation and Finance. All funds instituted a contractual cap on proxy/shareholder-meeting expenses. Independent audits show combined FY 2025 audit fees: Deloitte $23.8 k (FDIF) and PwC $183 k (other five ETFs).
Il Form N-CSR di Fidelity Covington Trust riassume i risultati dell'anno fiscale 2025 (terminato il 31/05/25) per sei ETF “Disruptive”.
- Fidelity Disruptors ETF (fondo di fondi): rendimento NAV a 1 anno +14,68% contro MSCI ACWI +14,02%; dal 16/04/20 +13,12% contro +15,35%. Asset pari a 90,2 milioni di dollari; nessuna commissione di gestione; turnover 5%. Portafoglio composto per l'81,2% da ETF azionari domestici e per il 18,8% da internazionali; settori principali sono Comunicazioni Disruptive (21,1%) e Finanza (21,0%).
- Fidelity Disruptive Technology ETF: +14,72%, superiore all'indice di settore (+13,20%); asset under management 169,9 milioni di dollari; commissione 0,50%; 46 titoli con MSFT 6,4% e NVDA 6,1% come principali.
- Disruptive Communications ETF: +19,63%, sostanzialmente in linea con l'indice di settore (+19,98%); asset 69,1 milioni di dollari; Sea Ltd 7,2% peso maggiore.
- Disruptive Automation ETF: +11,45%, inferiore all'indice industriale (+13,96%); asset 120,5 milioni di dollari; TSMC e PTC entrambi al 5,8%.
- Disruptive Finance ETF: +25,56%, sotto l'indice finanziario (+28,46%); asset 53,8 milioni di dollari; Mastercard 6,5% posizione più rilevante.
- Disruptive Medicine ETF: –0,19% contro indice sanitario +4,44%; asset 49,6 milioni di dollari; Boston Scientific 6,5%.
I venti favorevoli globali per le azioni e la selezione di titoli in software applicativo, intrattenimento interattivo e processi di pagamento hanno sostenuto Tecnologia e Comunicazioni, mentre scelte deboli in biotecnologie, aerospazio/difesa e pagamenti hanno penalizzato Medicina, Automazione e Finanza. Tutti i fondi hanno introdotto un limite contrattuale alle spese per delega/assemblea degli azionisti. Audit indipendenti indicano le spese combinate per l'anno fiscale 2025: Deloitte 23,8 mila dollari (FDIF) e PwC 183 mila dollari (altri cinque ETF).
El Formulario N-CSR de Fidelity Covington Trust resume los resultados del año fiscal 2025 (finalizado el 31/05/25) para seis ETF “Disruptive”.
- Fidelity Disruptors ETF (fondo de fondos): retorno NAV a 1 año +14,68% frente a MSCI ACWI +14,02%; desde el 16/04/20 +13,12% frente a +15,35%. Activos por $90,2 millones; sin comisión de asesoría; rotación 5%. Cartera 81,2% ETFs de renta variable domésticos, 18,8% internacionales; principales sectores son Comunicaciones Disruptivas (21,1%) y Finanzas (21,0%).
- Fidelity Disruptive Technology ETF: +14,72%, superando al índice sectorial (+13,20%); activos bajo gestión $169,9 millones; comisión 0,50%; 46 posiciones lideradas por MSFT 6,4% y NVDA 6,1%.
- Disruptive Communications ETF: +19,63%, aproximadamente en línea con el índice sectorial (+19,98%); activos $69,1 millones; Sea Ltd 7,2% peso principal.
- Disruptive Automation ETF: +11,45%, rezagado respecto al índice industrial (+13,96%); activos $120,5 millones; TSMC y PTC cada uno 5,8%.
- Disruptive Finance ETF: +25,56%, por debajo del índice financiero (+28,46%); activos $53,8 millones; Mastercard 6,5% posición mayoritaria.
- Disruptive Medicine ETF: –0,19% frente al índice sanitario +4,44%; activos $49,6 millones; Boston Scientific 6,5%.
Los vientos favorables globales en acciones y la selección de valores en software de aplicación, entretenimiento interactivo y procesamiento de pagos ayudaron a Tecnología y Comunicaciones, mientras que malas elecciones en biotecnología, aeroespacial/defensa y pagos afectaron a Medicina, Automatización y Finanzas. Todos los fondos establecieron un límite contractual en los gastos de representación/reuniones de accionistas. Auditorías independientes muestran las tarifas combinadas de auditoría para el año fiscal 2025: Deloitte $23,8 mil (FDIF) y PwC $183 mil (otros cinco ETFs).
Fidelity Covington Trust의 Form N-CSR은 2025 회계연도(2025년 5월 31일 종료) 동안 6개 “Disruptive” ETF의 실적을 집계합니다.
- Fidelity Disruptors ETF (펀드 오브 펀즈): 1년 NAV 수익률 +14.68%, MSCI ACWI +14.02% 대비; 2020년 4월 16일부터 +13.12% 대비 +15.35%. 자산 $9,020만; 자문 수수료 없음; 회전율 5%. 포트폴리오 구성: 국내 주식 ETF 81.2%, 해외 18.8%; 주요 섹터는 Disruptive Communications (21.1%) 및 Finance (21.0%).
- Fidelity Disruptive Technology ETF: +14.72%, 섹터 지수(+13.20%) 상회; 운용 자산 $1억 6,990만; 수수료 0.50%; 46개 보유 종목 중 MSFT 6.4%, NVDA 6.1% 주도.
- Disruptive Communications ETF: +19.63%, 섹터 지수(+19.98%)와 거의 동일; 자산 $6,910만; Sea Ltd 7.2% 최대 비중.
- Disruptive Automation ETF: +11.45%, 산업 지수(+13.96%) 대비 뒤처짐; 자산 $1억 2,050만; TSMC 및 PTC 각각 5.8%.
- Disruptive Finance ETF: +25.56%, 금융 지수(+28.46%) 하회; 자산 $5,380만; Mastercard 6.5% 최대 포지션.
- Disruptive Medicine ETF: –0.19%, 헬스케어 지수 +4.44% 대비 부진; 자산 $4,960만; Boston Scientific 6.5%.
글로벌 주식 강세와 애플리케이션 소프트웨어, 인터랙티브 엔터테인먼트, 결제 처리 분야의 종목 선정이 기술 및 커뮤니케이션 섹터를 지원했으나, 생명공학, 항공우주/방위, 결제 부문에서의 부진한 선택으로 인해 의료, 자동화, 금융 섹터는 부진했습니다. 모든 펀드는 대리투표/주주총회 비용에 대한 계약상 상한선을 도입했습니다. 독립 감사 결과 2025 회계연도 감사 수수료 합계는 Deloitte $23,800 (FDIF) 및 PwC $183,000 (나머지 5개 ETF)입니다.
Le formulaire N-CSR de Fidelity Covington Trust regroupe les résultats de l'exercice 2025 (clos au 31/05/25) pour six ETF « Disruptive ».
- Fidelity Disruptors ETF (fonds de fonds) : rendement NAV sur 1 an +14,68 % contre MSCI ACWI +14,02 % ; depuis le 16/04/20 +13,12 % contre +15,35 %. Actifs 90,2 M$ ; frais de gestion nuls ; rotation 5 %. Portefeuille composé à 81,2 % d’ETF actions domestiques et à 18,8 % d’internationaux ; principaux secteurs : Communications Disruptives (21,1 %) et Finance (21,0 %).
- Fidelity Disruptive Technology ETF : +14,72 %, dépassant l’indice sectoriel (+13,20 %) ; encours 169,9 M$ ; frais 0,50 % ; 46 titres, menés par MSFT 6,4 % et NVDA 6,1 %.
- Disruptive Communications ETF : +19,63 %, quasiment en ligne avec l’indice sectoriel (+19,98 %) ; encours 69,1 M$ ; Sea Ltd 7,2 % poids principal.
- Disruptive Automation ETF : +11,45 %, en retrait par rapport à l’indice industriel (+13,96 %) ; encours 120,5 M$ ; TSMC et PTC à 5,8 % chacun.
- Disruptive Finance ETF : +25,56 %, en dessous de l’indice financier (+28,46 %) ; encours 53,8 M$ ; Mastercard 6,5 % position la plus importante.
- Disruptive Medicine ETF : –0,19 % contre indice santé +4,44 % ; encours 49,6 M$ ; Boston Scientific 6,5 %.
Les vents porteurs mondiaux sur les actions et la sélection de titres dans les logiciels applicatifs, le divertissement interactif et le traitement des paiements ont soutenu la Technologie et les Communications, tandis que de mauvais choix en biotechnologie, aérospatiale/défense et paiements ont pesé sur la Médecine, l’Automatisation et la Finance. Tous les fonds ont instauré un plafond contractuel sur les frais de procuration/réunions d’actionnaires. Les audits indépendants indiquent des frais d’audit combinés pour l’exercice 2025 : Deloitte 23,8 k$ (FDIF) et PwC 183 k$ (autres cinq ETF).
Das Form N-CSR von Fidelity Covington Trust fasst die Ergebnisse des Geschäftsjahres 2025 (Ende 31.05.25) für sechs „Disruptive“ ETFs zusammen.
- Fidelity Disruptors ETF (Fonds von Fonds): 1-Jahres-NAV-Rendite +14,68% gegenüber MSCI ACWI +14,02%; seit 16.04.20 +13,12% gegenüber +15,35%. Vermögen 90,2 Mio. USD; keine Verwaltungsgebühr; Umschlag 5%. Portfolio zu 81,2% aus inländischen Aktien-ETFs, 18,8% international; Top-Sektoren Disruptive Communications (21,1%) und Finanzen (21,0%).
- Fidelity Disruptive Technology ETF: +14,72%, besser als der Sektorindex (+13,20%); verwaltetes Vermögen 169,9 Mio. USD; Gebühr 0,50%; 46 Positionen, angeführt von MSFT 6,4% & NVDA 6,1%.
- Disruptive Communications ETF: +19,63%, etwa im Einklang mit dem Sektorindex (+19,98%); Vermögen 69,1 Mio. USD; Sea Ltd 7,2% größtes Gewicht.
- Disruptive Automation ETF: +11,45%, hinter dem Industrieindex (+13,96%) zurückbleibend; Vermögen 120,5 Mio. USD; TSMC & PTC jeweils 5,8%.
- Disruptive Finance ETF: +25,56%, unter dem Finanzindex (+28,46%); Vermögen 53,8 Mio. USD; Mastercard 6,5% größte Position.
- Disruptive Medicine ETF: –0,19% gegenüber dem Gesundheitsindex +4,44%; Vermögen 49,6 Mio. USD; Boston Scientific 6,5%.
Globale Rückenwinde für Aktien und die Titelauswahl in Anwendungssoftware, interaktiver Unterhaltung und Zahlungsabwicklung unterstützten Technologie und Kommunikation, während schlechte Auswahl in Biotechnologie, Luft- und Raumfahrt/Verteidigung und Zahlungsabwicklung Medizin, Automation und Finanzen belasteten. Alle Fonds führten eine vertragliche Obergrenze für Proxy-/Aktionärsversammlungskosten ein. Unabhängige Prüfungen zeigen kombinierte Prüfungsgebühren für das Geschäftsjahr 2025: Deloitte 23,8 Tsd. USD (FDIF) und PwC 183 Tsd. USD (andere fünf ETFs).
Positive
- None.
Negative
- None.
Insights
TL;DR – Mixed alpha: Tech & Comms beat, Medicine lags; fees ultra-low; AUM modest.
For investors, the headline is selective outperformance. Disruptive Technology and Communications added ~70-150 bps over their custom equal-weight benchmarks, validating active tilts toward application software and interactive entertainment. However, Medicine’s negative return versus +4.4% benchmark exposes concentration risk in high-beta biotech. Automation and Finance trailed despite double-digit gains. The umbrella Disruptors ETF approximated ACWI with near-zero internal expenses, but carries only six underlying holdings, amplifying tracking-error. Balance-sheet quality remains solid; advisory fees are capped at 0.50% (0% for FDIF) and turnover is low, limiting tax drag. Absent stronger, broad-based alpha, the suite remains a niche thematic play rather than a core holding.
TL;DR – Concentration and sector betas drive volatility; size & liquidity modest.
All six ETFs hold 40–65 stocks (FDIF only six ETFs) and top ten positions exceed 40% in most sleeves, creating event risk (e.g., Snap –38%, Regeneron –50%). AUMs under $170 m limit secondary-market depth; spreads could widen in stress. Geographic tilts—overweights in Singapore, U.S., and underweights in China—benefited FY 25 but heighten macro sensitivity. Proxy-expense caps are governance positives, and no leverage is employed. Overall risk profile is elevated but transparent; impact to broader portfolios is manageable if position sizing is prudent.
Il Form N-CSR di Fidelity Covington Trust riassume i risultati dell'anno fiscale 2025 (terminato il 31/05/25) per sei ETF “Disruptive”.
- Fidelity Disruptors ETF (fondo di fondi): rendimento NAV a 1 anno +14,68% contro MSCI ACWI +14,02%; dal 16/04/20 +13,12% contro +15,35%. Asset pari a 90,2 milioni di dollari; nessuna commissione di gestione; turnover 5%. Portafoglio composto per l'81,2% da ETF azionari domestici e per il 18,8% da internazionali; settori principali sono Comunicazioni Disruptive (21,1%) e Finanza (21,0%).
- Fidelity Disruptive Technology ETF: +14,72%, superiore all'indice di settore (+13,20%); asset under management 169,9 milioni di dollari; commissione 0,50%; 46 titoli con MSFT 6,4% e NVDA 6,1% come principali.
- Disruptive Communications ETF: +19,63%, sostanzialmente in linea con l'indice di settore (+19,98%); asset 69,1 milioni di dollari; Sea Ltd 7,2% peso maggiore.
- Disruptive Automation ETF: +11,45%, inferiore all'indice industriale (+13,96%); asset 120,5 milioni di dollari; TSMC e PTC entrambi al 5,8%.
- Disruptive Finance ETF: +25,56%, sotto l'indice finanziario (+28,46%); asset 53,8 milioni di dollari; Mastercard 6,5% posizione più rilevante.
- Disruptive Medicine ETF: –0,19% contro indice sanitario +4,44%; asset 49,6 milioni di dollari; Boston Scientific 6,5%.
I venti favorevoli globali per le azioni e la selezione di titoli in software applicativo, intrattenimento interattivo e processi di pagamento hanno sostenuto Tecnologia e Comunicazioni, mentre scelte deboli in biotecnologie, aerospazio/difesa e pagamenti hanno penalizzato Medicina, Automazione e Finanza. Tutti i fondi hanno introdotto un limite contrattuale alle spese per delega/assemblea degli azionisti. Audit indipendenti indicano le spese combinate per l'anno fiscale 2025: Deloitte 23,8 mila dollari (FDIF) e PwC 183 mila dollari (altri cinque ETF).
El Formulario N-CSR de Fidelity Covington Trust resume los resultados del año fiscal 2025 (finalizado el 31/05/25) para seis ETF “Disruptive”.
- Fidelity Disruptors ETF (fondo de fondos): retorno NAV a 1 año +14,68% frente a MSCI ACWI +14,02%; desde el 16/04/20 +13,12% frente a +15,35%. Activos por $90,2 millones; sin comisión de asesoría; rotación 5%. Cartera 81,2% ETFs de renta variable domésticos, 18,8% internacionales; principales sectores son Comunicaciones Disruptivas (21,1%) y Finanzas (21,0%).
- Fidelity Disruptive Technology ETF: +14,72%, superando al índice sectorial (+13,20%); activos bajo gestión $169,9 millones; comisión 0,50%; 46 posiciones lideradas por MSFT 6,4% y NVDA 6,1%.
- Disruptive Communications ETF: +19,63%, aproximadamente en línea con el índice sectorial (+19,98%); activos $69,1 millones; Sea Ltd 7,2% peso principal.
- Disruptive Automation ETF: +11,45%, rezagado respecto al índice industrial (+13,96%); activos $120,5 millones; TSMC y PTC cada uno 5,8%.
- Disruptive Finance ETF: +25,56%, por debajo del índice financiero (+28,46%); activos $53,8 millones; Mastercard 6,5% posición mayoritaria.
- Disruptive Medicine ETF: –0,19% frente al índice sanitario +4,44%; activos $49,6 millones; Boston Scientific 6,5%.
Los vientos favorables globales en acciones y la selección de valores en software de aplicación, entretenimiento interactivo y procesamiento de pagos ayudaron a Tecnología y Comunicaciones, mientras que malas elecciones en biotecnología, aeroespacial/defensa y pagos afectaron a Medicina, Automatización y Finanzas. Todos los fondos establecieron un límite contractual en los gastos de representación/reuniones de accionistas. Auditorías independientes muestran las tarifas combinadas de auditoría para el año fiscal 2025: Deloitte $23,8 mil (FDIF) y PwC $183 mil (otros cinco ETFs).
Fidelity Covington Trust의 Form N-CSR은 2025 회계연도(2025년 5월 31일 종료) 동안 6개 “Disruptive” ETF의 실적을 집계합니다.
- Fidelity Disruptors ETF (펀드 오브 펀즈): 1년 NAV 수익률 +14.68%, MSCI ACWI +14.02% 대비; 2020년 4월 16일부터 +13.12% 대비 +15.35%. 자산 $9,020만; 자문 수수료 없음; 회전율 5%. 포트폴리오 구성: 국내 주식 ETF 81.2%, 해외 18.8%; 주요 섹터는 Disruptive Communications (21.1%) 및 Finance (21.0%).
- Fidelity Disruptive Technology ETF: +14.72%, 섹터 지수(+13.20%) 상회; 운용 자산 $1억 6,990만; 수수료 0.50%; 46개 보유 종목 중 MSFT 6.4%, NVDA 6.1% 주도.
- Disruptive Communications ETF: +19.63%, 섹터 지수(+19.98%)와 거의 동일; 자산 $6,910만; Sea Ltd 7.2% 최대 비중.
- Disruptive Automation ETF: +11.45%, 산업 지수(+13.96%) 대비 뒤처짐; 자산 $1억 2,050만; TSMC 및 PTC 각각 5.8%.
- Disruptive Finance ETF: +25.56%, 금융 지수(+28.46%) 하회; 자산 $5,380만; Mastercard 6.5% 최대 포지션.
- Disruptive Medicine ETF: –0.19%, 헬스케어 지수 +4.44% 대비 부진; 자산 $4,960만; Boston Scientific 6.5%.
글로벌 주식 강세와 애플리케이션 소프트웨어, 인터랙티브 엔터테인먼트, 결제 처리 분야의 종목 선정이 기술 및 커뮤니케이션 섹터를 지원했으나, 생명공학, 항공우주/방위, 결제 부문에서의 부진한 선택으로 인해 의료, 자동화, 금융 섹터는 부진했습니다. 모든 펀드는 대리투표/주주총회 비용에 대한 계약상 상한선을 도입했습니다. 독립 감사 결과 2025 회계연도 감사 수수료 합계는 Deloitte $23,800 (FDIF) 및 PwC $183,000 (나머지 5개 ETF)입니다.
Le formulaire N-CSR de Fidelity Covington Trust regroupe les résultats de l'exercice 2025 (clos au 31/05/25) pour six ETF « Disruptive ».
- Fidelity Disruptors ETF (fonds de fonds) : rendement NAV sur 1 an +14,68 % contre MSCI ACWI +14,02 % ; depuis le 16/04/20 +13,12 % contre +15,35 %. Actifs 90,2 M$ ; frais de gestion nuls ; rotation 5 %. Portefeuille composé à 81,2 % d’ETF actions domestiques et à 18,8 % d’internationaux ; principaux secteurs : Communications Disruptives (21,1 %) et Finance (21,0 %).
- Fidelity Disruptive Technology ETF : +14,72 %, dépassant l’indice sectoriel (+13,20 %) ; encours 169,9 M$ ; frais 0,50 % ; 46 titres, menés par MSFT 6,4 % et NVDA 6,1 %.
- Disruptive Communications ETF : +19,63 %, quasiment en ligne avec l’indice sectoriel (+19,98 %) ; encours 69,1 M$ ; Sea Ltd 7,2 % poids principal.
- Disruptive Automation ETF : +11,45 %, en retrait par rapport à l’indice industriel (+13,96 %) ; encours 120,5 M$ ; TSMC et PTC à 5,8 % chacun.
- Disruptive Finance ETF : +25,56 %, en dessous de l’indice financier (+28,46 %) ; encours 53,8 M$ ; Mastercard 6,5 % position la plus importante.
- Disruptive Medicine ETF : –0,19 % contre indice santé +4,44 % ; encours 49,6 M$ ; Boston Scientific 6,5 %.
Les vents porteurs mondiaux sur les actions et la sélection de titres dans les logiciels applicatifs, le divertissement interactif et le traitement des paiements ont soutenu la Technologie et les Communications, tandis que de mauvais choix en biotechnologie, aérospatiale/défense et paiements ont pesé sur la Médecine, l’Automatisation et la Finance. Tous les fonds ont instauré un plafond contractuel sur les frais de procuration/réunions d’actionnaires. Les audits indépendants indiquent des frais d’audit combinés pour l’exercice 2025 : Deloitte 23,8 k$ (FDIF) et PwC 183 k$ (autres cinq ETF).
Das Form N-CSR von Fidelity Covington Trust fasst die Ergebnisse des Geschäftsjahres 2025 (Ende 31.05.25) für sechs „Disruptive“ ETFs zusammen.
- Fidelity Disruptors ETF (Fonds von Fonds): 1-Jahres-NAV-Rendite +14,68% gegenüber MSCI ACWI +14,02%; seit 16.04.20 +13,12% gegenüber +15,35%. Vermögen 90,2 Mio. USD; keine Verwaltungsgebühr; Umschlag 5%. Portfolio zu 81,2% aus inländischen Aktien-ETFs, 18,8% international; Top-Sektoren Disruptive Communications (21,1%) und Finanzen (21,0%).
- Fidelity Disruptive Technology ETF: +14,72%, besser als der Sektorindex (+13,20%); verwaltetes Vermögen 169,9 Mio. USD; Gebühr 0,50%; 46 Positionen, angeführt von MSFT 6,4% & NVDA 6,1%.
- Disruptive Communications ETF: +19,63%, etwa im Einklang mit dem Sektorindex (+19,98%); Vermögen 69,1 Mio. USD; Sea Ltd 7,2% größtes Gewicht.
- Disruptive Automation ETF: +11,45%, hinter dem Industrieindex (+13,96%) zurückbleibend; Vermögen 120,5 Mio. USD; TSMC & PTC jeweils 5,8%.
- Disruptive Finance ETF: +25,56%, unter dem Finanzindex (+28,46%); Vermögen 53,8 Mio. USD; Mastercard 6,5% größte Position.
- Disruptive Medicine ETF: –0,19% gegenüber dem Gesundheitsindex +4,44%; Vermögen 49,6 Mio. USD; Boston Scientific 6,5%.
Globale Rückenwinde für Aktien und die Titelauswahl in Anwendungssoftware, interaktiver Unterhaltung und Zahlungsabwicklung unterstützten Technologie und Kommunikation, während schlechte Auswahl in Biotechnologie, Luft- und Raumfahrt/Verteidigung und Zahlungsabwicklung Medizin, Automation und Finanzen belasteten. Alle Fonds führten eine vertragliche Obergrenze für Proxy-/Aktionärsversammlungskosten ein. Unabhängige Prüfungen zeigen kombinierte Prüfungsgebühren für das Geschäftsjahr 2025: Deloitte 23,8 Tsd. USD (FDIF) und PwC 183 Tsd. USD (andere fünf ETFs).
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07319
Fidelity Covington Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Nicole Macarchuk, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
Date of fiscal year end: | May 31 |
Date of reporting period: | May 31, 2025 |
Item 1.
Reports to Stockholders
ANNUAL SHAREHOLDER REPORT | AS OF
|
||
|
|
Principal U.S. Listing Exchange : NASDAQ/NMS Global Market
|
|
(based on hypothetical $10,000 investment)
FUND COST (PREVIOUS YEAR)
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
||
Fidelity® Disruptors ETF
|
$
|
A Amount represents less than $.50
B Amount represents less than 0.005%
•Global equities achieved a strong gain for the 12 months ending May 31, 2025, amid resilient global economic growth, slowing inflation, global monetary easing, a generally weaker U.S. dollar and anticipated earnings growth in 2025, despite challenges that included decelerating earnings growth, changes to U.S. tariff policy and reactive tariff countermeasures from other countries.
•Against this backdrop, market selection contributed to the fund's performance versus the MSCI All Country World Index for the fiscal year, especially overweights in Singapore and the U.S., and an underweight in Denmark.
•By industry, a sizable overweight in application software stood out to the upside. Overweight exposure and investment choices in interactive home entertainment and movies & entertainment also helped, along with an underweight in pharmaceuticals.
•The top individual relative contributor was the fund's overweight in Sea, which gained 138%. The company was one of the fund's largest holdings this period, though we decreased our position by period end. Another notable relative contributor was the fund's outsized position in Netflix (+86%). This period we reduced our stake in Netflix, though it remained a core holding.
•In contrast, from a regional standpoint, stock picks in the United States and an underweight in China notably detracted from the fund's performance versus the MSCI index.
•By industry, stock picking in interactive media & services and positioning biotechnology were important detractors versus the index.
•The biggest individual relative detractor was our outsized stake in Snap (-38%), which was sold from the fund by period end. A second notable relative detractor was an overweight in PDD Holdings (-35%). We trimmed this position.
•Notable changes in positioning include increased exposure to transaction & payment processing services and a lower allocation to semiconductors.
CUMULATIVE PERFORMANCE
April 16, 2020 through May 31, 2025.
Initial investment of $10,000.
 |
1 Year
|
5 Year
|
Life of Fund
|
|
Fidelity® Disruptors ETF - NAV A
|
|||
MSCI ACWI (All Country World Index) Index A
|
A From April 16, 2020
(as of May 31, 2025)
KEY FACTS
|
||
Fund Size
|
$
|
|
Number of Holdings
|
||
Total Advisory Fee
|
$
|
|
Portfolio Turnover
|
What did the Fund invest in?
(as of May 31, 2025)
(as of May 31, 2025)
ASSET ALLOCATION (% of Fund's net assets)
|
|
Domestic Equity Funds - 81.2
|
|
International Equity Funds - 18.8
|
|
Short-Term Investments and Net Other Assets (Liabilities) - 0.0
|
|
TOP HOLDINGS
(% of Fund's net assets)
|
||
Fidelity Disruptive Communications ETF
|
||
Fidelity Disruptive Finance ETF
|
||
Fidelity Disruptive Technology ETF
|
||
Fidelity Disruptive Medicine ETF
|
||
Fidelity Disruptive Automation ETF
|
||
100.0
|
How has the Fund changed?
Fidelity, the Fidelity Investments Logo and all other Fidelity trademarks or service marks used herein are trademarks or service marks of FMR LLC. Any third-party marks that are used herein are trademarks or service marks of their respective owners. © 2025 FMR LLC. All rights reserved.
|
||
 |
 |
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit fundresearch.fidelity.com/prospectus/sec
1.9913348.101 7027-TSRA-0725
|
ANNUAL SHAREHOLDER REPORT | AS OF
|
||
|
|
Principal U.S. Listing Exchange : NASDAQ/NMS Global Market
|
|
(based on hypothetical $10,000 investment)
FUND COST (PREVIOUS YEAR)
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
||
Fidelity® Disruptive Technology ETF
|
$
|
•Global equities achieved a strong gain for the 12 months ending May 31, 2025, amid resilient global economic growth, slowing inflation, global monetary easing, a generally weaker U.S. dollar and anticipated earnings growth in 2025, despite challenges that included decelerating earnings growth, changes to U.S. tariff policy and reactive tariff countermeasures from other countries.
•Against this backdrop, an overweight in the United States and stock picks in Europe ex U.K. contributed to the fund's performance versus the MSCI All Country World Information Technology Equal Weighted Index Net MA for the fiscal year.
•By industry, market selection was the primary contributor, especially an overweight in application software. Security selection in movies & entertainment also boosted the fund's relative performance. Also contributing to our result was an overweight in systems software.
•The top individual relative contributor was our non-index stake in Netflix (+85%). The company was one of the fund's largest holdings this period, though we decreased our position by period end. A non-index stake in Sea gained 134% and was the second-largest relative contributor. The stock was one of the fund's largest holdings at period end. Another notable relative contributor was an overweight in Shopify (+76%).
•In contrast, from a regional standpoint, stock picks in the United States and an underweight in emerging markets, primarily in China, detracted from the fund's performance versus the industry index.
•By industry, the primary detractor from performance versus the industry index was security selection in application software. Also hurting our result was stock picking in systems software and broadline retail.
•The biggest individual relative detractor was our stake in ASML (-19%). The company was among our largest holdings this period, but the stock was not held at period end. A second notable relative detractor was an overweight in Marvell Technology (-12%). The stock was one of our largest holdings. Another notable relative detractor this period was avoiding AppLovin, an index component that gained approximately 382%.
•Notable changes in positioning include increased exposure to Israel and a lower allocation to Netherlands. By industry, meaningful changes in positioning include higher allocations to systems software and technology hardware, storage & peripherals.
CUMULATIVE PERFORMANCE
April 16, 2020 through May 31, 2025.
Initial investment of $10,000.
 |
1 Year
|
5 Year
|
Life of Fund
|
|
Fidelity® Disruptive Technology ETF - NAV A
|
|||
MSCI All Country World Information Technology Equal Weighted Index A
|
|||
MSCI ACWI (All Country World Index) Index A
|
A From April 16, 2020
(as of May 31, 2025)
KEY FACTS
|
||
Fund Size
|
$
|
|
Number of Holdings
|
||
Total Advisory Fee
|
$
|
|
Portfolio Turnover
|
What did the Fund invest in?
(as of May 31, 2025)
(as of May 31, 2025)
MARKET SECTORS
(% of Fund's net assets)
|
||
Information Technology
|
||
Communication Services
|
||
Consumer Discretionary
|
||
Financials
|
||
Industrials
|
||
Health Care
|
||
ASSET ALLOCATION (% of Fund's net assets)
|
|
Common Stocks - 98.1
|
|
Short-Term Investments and Net Other Assets (Liabilities) - 1.9
|
|
GEOGRAPHIC DIVERSIFICATION (% of Fund's net assets)
|
|
United States - 68.9
|
|
Netherlands - 6.0
|
|
Taiwan - 5.2
|
|
Germany - 3.3
|
|
Japan - 3.2
|
|
Korea (South) - 2.7
|
|
Singapore - 2.6
|
|
Canada - 2.1
|
|
Ireland - 1.6
|
|
Others - 4.4
|
|
TOP HOLDINGS
(% of Fund's net assets)
|
||
Microsoft Corp
|
||
NVIDIA Corp
|
||
Taiwan Semiconductor Manufacturing Co Ltd ADR
|
||
Meta Platforms Inc Class A
|
||
Amazon.com Inc
|
||
Marvell Technology Inc
|
||
SAP SE
|
||
Samsung Electronics Co Ltd
|
||
Sea Ltd Class A ADR
|
||
Datadog Inc Class A
|
||
42.5
|
How has the Fund changed?
Fidelity, the Fidelity Investments Logo and all other Fidelity trademarks or service marks used herein are trademarks or service marks of FMR LLC. Any third-party marks that are used herein are trademarks or service marks of their respective owners. © 2025 FMR LLC. All rights reserved.
|
||
 |
 |
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit fundresearch.fidelity.com/prospectus/sec
1.9913347.101 6999-TSRA-0725
|
ANNUAL SHAREHOLDER REPORT | AS OF
|
||
|
|
Principal U.S. Listing Exchange : NASDAQ/NMS Global Market
|
|
(based on hypothetical $10,000 investment)
FUND COST (PREVIOUS YEAR)
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
||
Fidelity® Disruptive Medicine ETF
|
$
|
•Global equities achieved a strong gain for the 12 months ending May 31, 2025, amid resilient global economic growth, slowing inflation, global monetary easing, a generally weaker U.S. dollar and anticipated earnings growth in 2025, despite challenges that included decelerating earnings growth, changes to U.S. tariff policy and reactive tariff countermeasures from other countries.
•Against this backdrop, an overweight in the United States and security selection and an underweight in emerging markets, primarily in China, detracted from the fund's performance versus the MSCI All Country World Health Care Equal Weighted Index Net MA for the fiscal year.
•By industry, security selection was the primary detractor, especially within biotechnology. Also hurting our result was stock selection in life sciences tools & services and health care technology.
•The largest individual relative detractor was an overweight in Regeneron Pharmaceuticals (-50%). The company was one of the fund's biggest holdings this period. A second notable relative detractor was an overweight in UnitedHealth Group (-38%). The company also was among our largest holdings this period. An overweight in Danaher (-26%), another of the fund's largest holdings, also hurt.
•In contrast, from a regional standpoint, stock selection and an underweight in Europe ex U.K. and stock picks in the United States contributed to the fund's performance versus the industry index.
•By industry, the biggest contributor to performance versus the industry index was stock picking in health care equipment. An overweight in health care technology and an underweight in health care facilities also boosted the fund's relative performance.
•The top individual relative contributor was an overweight in Alnylam Pharmaceuticals (+108%). The stock was among the fund's biggest holdings. The second-largest relative contributor was an overweight in Insulet (+83%), also one of the fund's biggest holdings. Another notable relative contributor was an overweight in Boston Scientific (+39%). The company was the fund's largest holding.
•Notable changes in positioning include increased exposure to Belgium. By industry, meaningful changes in positioning include increased exposure to health care technology and a lower allocation to managed health care.
CUMULATIVE PERFORMANCE
April 16, 2020 through May 31, 2025.
Initial investment of $10,000.
 |
1 Year
|
5 Year
|
Life of Fund
|
|
Fidelity® Disruptive Medicine ETF - NAV A
|
-
|
-
|
|
MSCI All Country World Healthcare Equal Weighted Index A
|
|||
MSCI ACWI (All Country World Index) Index A
|
A From April 16, 2020
(as of May 31, 2025)
KEY FACTS
|
||
Fund Size
|
$
|
|
Number of Holdings
|
||
Total Advisory Fee
|
$
|
|
Portfolio Turnover
|
What did the Fund invest in?
(as of May 31, 2025)
(as of May 31, 2025)
MARKET SECTORS
(% of Fund's net assets)
|
||
Health Care
|
||
ASSET ALLOCATION (% of Fund's net assets)
|
|
Common Stocks - 99.4
|
|
Short-Term Investments and Net Other Assets (Liabilities) - 0.6
|
|
GEOGRAPHIC DIVERSIFICATION (% of Fund's net assets)
|
|
United States - 84.4
|
|
Netherlands - 5.4
|
|
Belgium - 2.7
|
|
France - 2.2
|
|
Switzerland - 1.5
|
|
China - 1.3
|
|
Denmark - 1.3
|
|
Canada - 0.9
|
|
Germany - 0.3
|
|
TOP HOLDINGS
(% of Fund's net assets)
|
||
Boston Scientific Corp
|
||
Insulet Corp
|
||
Intuitive Surgical Inc
|
||
Alnylam Pharmaceuticals Inc
|
||
Veeva Systems Inc Class A
|
||
Exact Sciences Corp
|
||
Argenx SE ADR
|
||
Waystar Holding Corp
|
||
Penumbra Inc
|
||
Danaher Corp
|
||
38.8
|
How has the Fund changed?
Fidelity, the Fidelity Investments Logo and all other Fidelity trademarks or service marks used herein are trademarks or service marks of FMR LLC. Any third-party marks that are used herein are trademarks or service marks of their respective owners. © 2025 FMR LLC. All rights reserved.
|
||
 |
 |
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit fundresearch.fidelity.com/prospectus/sec
1.9913346.101 6998-TSRA-0725
|
ANNUAL SHAREHOLDER REPORT | AS OF
|
||
|
|
Principal U.S. Listing Exchange : NASDAQ/NMS Global Market
|
|
(based on hypothetical $10,000 investment)
FUND COST (PREVIOUS YEAR)
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
||
Fidelity® Disruptive Automation ETF
|
$
|
•Global equities achieved a strong gain for the 12 months ending May 31, 2025, amid resilient global economic growth, slowing inflation, global monetary easing, a generally weaker U.S. dollar and anticipated earnings growth in 2025, despite challenges that included decelerating earnings growth, changes to U.S. tariff policy and reactive tariff countermeasures from other countries.
•Against this backdrop, security selection in Europe ex U.K. and stock selection and an overweight in Japan detracted from the fund's performance versus the MSCI All Country World Industrials Equal Weighted Index Net MA for the fiscal year.
•By industry, market selection was the primary detractor, especially an underweight in aerospace & defense. Picks in semiconductor materials & equipment also hampered the fund's result. Also detracting from our result was an overweight in industrial machinery & supplies & components.
•The biggest individual relative detractor was our stake in Teradyne (-44%). The company was one of the fund's biggest holdings this period. A second notable relative detractor was our holding in Renishaw (-30%). Another notable relative detractor was our stake in PTC (-4%). The company was one of the fund's biggest holdings. All of these detractors were non-index positions.
•In contrast, from a regional standpoint, security selection in emerging markets contributed to the fund's performance versus the industry index.
•By industry, the biggest contributor to performance versus the industry index was security selection in semiconductors. Stock selection in automobile manufacturers also boosted relative performance. Also contributing to our result were security selection and an underweight in electrical components & equipment.
•The fund's stake in Tesla gained roughly 96% and was the top individual relative contributor. This period we decreased our position in Tesla. A second notable relative contributor was our stake in Taiwan Semiconductor Manufacturing (+31%). The stock was the fund's largest holding. A stake in Nvidia gained approximately 23% and notably helped. The company was one of the fund's biggest holdings. All of these contributors were non-index positions.
•Notable changes in positioning include decreased exposure to China and a higher allocation to Germany. By industry, meaningful changes in positioning include higher allocations to aerospace & defense and construction machinery & heavy transportation equipment.
CUMULATIVE PERFORMANCE
April 16, 2020 through May 31, 2025.
Initial investment of $10,000.
 |
1 Year
|
5 Year
|
Life of Fund
|
|
Fidelity® Disruptive Automation ETF - NAV A
|
|||
MSCI All Country World Industrials Equal Weighted Index A
|
|||
MSCI ACWI (All Country World Index) Index A
|
A From April 16, 2020
(as of May 31, 2025)
KEY FACTS
|
||
Fund Size
|
$
|
|
Number of Holdings
|
||
Total Advisory Fee
|
$
|
|
Portfolio Turnover
|
What did the Fund invest in?
(as of May 31, 2025)
(as of May 31, 2025)
MARKET SECTORS
(% of Fund's net assets)
|
||
Industrials
|
||
Information Technology
|
||
Consumer Discretionary
|
||
Health Care
|
||
Communication Services
|
||
ASSET ALLOCATION (% of Fund's net assets)
|
|
Common Stocks - 98.3
|
|
Short-Term Investments and Net Other Assets (Liabilities) - 1.7
|
|
GEOGRAPHIC DIVERSIFICATION (% of Fund's net assets)
|
|
United States - 49.4
|
|
Japan - 17.4
|
|
China - 8.0
|
|
Taiwan - 7.7
|
|
Germany - 4.4
|
|
Sweden - 3.3
|
|
United Kingdom - 2.7
|
|
Canada - 2.3
|
|
France - 2.1
|
|
Others - 2.7
|
|
TOP HOLDINGS
(% of Fund's net assets)
|
||
Taiwan Semiconductor Manufacturing Co Ltd
|
||
PTC Inc
|
||
NVIDIA Corp
|
||
Deere & Co
|
||
Axon Enterprise Inc
|
||
Siemens AG
|
||
Shenzhen Inovance Technology Co Ltd A Shares (China)
|
||
SMC Corp
|
||
THK Co Ltd
|
||
Uber Technologies Inc
|
||
41.2
|
How has the Fund changed?
Fidelity, the Fidelity Investments Logo and all other Fidelity trademarks or service marks used herein are trademarks or service marks of FMR LLC. Any third-party marks that are used herein are trademarks or service marks of their respective owners. © 2025 FMR LLC. All rights reserved.
|
||
 |
 |
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit fundresearch.fidelity.com/prospectus/sec
1.9913343.101 6995-TSRA-0725
|
ANNUAL SHAREHOLDER REPORT | AS OF
|
||
|
|
Principal U.S. Listing Exchange : NASDAQ/NMS Global Market
|
|
(based on hypothetical $10,000 investment)
FUND COST (PREVIOUS YEAR)
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
||
Fidelity® Disruptive Communications ETF
|
$
|
•Global equities achieved a strong gain for the 12 months ending May 31, 2025, amid resilient global economic growth, slowing inflation, global monetary easing, a generally weaker U.S. dollar and anticipated earnings growth in 2025, despite challenges that included decelerating earnings growth, changes to U.S. tariff policy and reactive tariff countermeasures from other countries.
•Against this backdrop, an underweight in Europe ex U.K. and stock selection in the United States detracted from the fund's performance versus the MSCI All Country World Communication Services Equal Weighted Index Net MA for the fiscal year.
•By industry, market selection was the primary detractor, especially an underweight in integrated telecommunication services. Security selection and an overweight in interactive media & services also notably hampered the fund's result. Further hurting our result was security selection in broadline retail.
•The fund's non-index stake in PDD returned -36% and was the biggest individual relative detractor. A second notable relative detractor was our stake in Snap (-39%). The stock was not held at period end. An overweight in Alphabet (0%) also hurt. The stock was one of the fund's biggest holdings.
•In contrast, from a regional standpoint, stock picks and an overweight in Asia Pacific ex Japan, primarily in Singapore, contributed to the fund's performance versus the industry index.
•By industry, the biggest contributor to performance versus the industry index was stock selection in interactive home entertainment. Security selection in internet services & infrastructure and movies & entertainment also boosted the fund's relative performance.
•The top individual relative contributor was an overweight in Sea (+138%). The company was the fund's biggest holding. A non-index stake in Liberty Broadband gained approximately 71% and was the second-largest relative contributor. The stock was one of the fund's biggest holdings. A non-index stake in Twilio gained roughly 108% and notably helped.
•Notable changes in positioning include decreased exposure to China and a higher allocation to Taiwan. By industry, meaningful changes in positioning include increased exposure to cable & satellite and integrated telecommunication services.
CUMULATIVE PERFORMANCE
April 16, 2020 through May 31, 2025.
Initial investment of $10,000.
 |
1 Year
|
5 Year
|
Life of Fund
|
|
Fidelity® Disruptive Communications ETF - NAV A
|
|||
MSCI All Country World Communication Services Equal Weighted Index A
|
|||
MSCI ACWI (All Country World Index) Index A
|
A From April 16, 2020
(as of May 31, 2025)
KEY FACTS
|
||
Fund Size
|
$
|
|
Number of Holdings
|
||
Total Advisory Fee
|
$
|
|
Portfolio Turnover
|
What did the Fund invest in?
(as of May 31, 2025)
(as of May 31, 2025)
MARKET SECTORS
(% of Fund's net assets)
|
||
Communication Services
|
||
Information Technology
|
||
Consumer Discretionary
|
||
Real Estate
|
||
Industrials
|
||
Energy
|
||
ASSET ALLOCATION (% of Fund's net assets)
|
|
Common Stocks - 99.1
|
|
Short-Term Investments and Net Other Assets (Liabilities) - 0.9
|
|
GEOGRAPHIC DIVERSIFICATION (% of Fund's net assets)
|
|
United States - 73.8
|
|
Singapore - 7.2
|
|
China - 5.6
|
|
Taiwan - 4.3
|
|
Spain - 2.5
|
|
Canada - 2.3
|
|
Korea (South) - 1.7
|
|
India - 1.3
|
|
Netherlands - 0.8
|
|
Japan - 0.5
|
|
TOP HOLDINGS
(% of Fund's net assets)
|
||
Sea Ltd Class A ADR
|
||
Amazon.com Inc
|
||
Alphabet Inc Class A
|
||
NVIDIA Corp
|
||
American Tower Corp
|
||
T-Mobile US Inc
|
||
Taiwan Semiconductor Manufacturing Co Ltd ADR
|
||
Arista Networks Inc
|
||
Liberty Broadband Corp Class A
|
||
Meta Platforms Inc Class A
|
||
47.1
|
How has the Fund changed?
Fidelity, the Fidelity Investments Logo and all other Fidelity trademarks or service marks used herein are trademarks or service marks of FMR LLC. Any third-party marks that are used herein are trademarks or service marks of their respective owners. © 2025 FMR LLC. All rights reserved.
|
||
 |
 |
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit fundresearch.fidelity.com/prospectus/sec
1.9913344.101 6996-TSRA-0725
|
ANNUAL SHAREHOLDER REPORT | AS OF
|
||
|
|
Principal U.S. Listing Exchange : NASDAQ/NMS Global Market
|
|
(based on hypothetical $10,000 investment)
FUND COST (PREVIOUS YEAR)
Costs of a $10,000 investment
|
Costs paid as a percentage of a $10,000 investment
|
||
Fidelity® Disruptive Finance ETF
|
$
|
•Global equities achieved a strong gain for the 12 months ending May 31, 2025, amid resilient global economic growth, slowing inflation, global monetary easing, a generally weaker U.S. dollar and anticipated earnings growth in 2025, despite challenges that included decelerating earnings growth, changes to U.S. tariff policy and reactive tariff countermeasures from other countries.
•Against this backdrop, an overweight in the United States and stock picks in the U.K. detracted from the fund's performance versus the MSCI All Country World Financials Equal Weighted Index Net MA for the fiscal year.
•By industry, market selection was the primary detractor, especially an overweight in transaction & payment processing services. Also hurting our result was stock picking in financial exchanges & data and consumer finance.
•The biggest individual relative detractor was our non-index stake in Flywire (-46%). The stock was not held at period end. The second-largest relative detractor was an overweight in Block (-4%). This period we increased our stake in Block, and the stock was among the fund's biggest holdings at period end. Another notable relative detractor was our stake in Coinbase Global (-24%). The stock was not held at period end.
•In contrast, from a regional standpoint, an underweight in Japan and security selection in the United States contributed to the fund's performance versus the industry index.
•By industry, the biggest contributor to performance versus the industry index was security selection in application software. Stock picking in transaction & payment processing services also boosted the fund's relative performance. An overweight in financial exchanges & data helped as well.
•The fund's non-index stake in MicroStrategy gained about 164% and was the top individual relative contributor. This period we reduced our stake in MicroStrategy. The second-largest relative contributor was an overweight in Toast (+76%). This was a position we established this period. A non-index stake in Baldwin Insurance gained 17% and notably helped. The company was one of our largest holdings this period, though we decreased our stake during the period.
•Notable changes in positioning include a higher allocation to Netherlands. By industry, meaningful changes in positioning include decreased exposure to insurance brokers and a higher allocation to diversified financial services.
CUMULATIVE PERFORMANCE
April 16, 2020 through May 31, 2025.
Initial investment of $10,000.
 |
1 Year
|
5 Year
|
Life of Fund
|
|
Fidelity® Disruptive Finance ETF - NAV A
|
|||
MSCI All Country World Financials Equal Weighted Index A
|
|||
MSCI ACWI (All Country World Index) Index A
|
A From April 16, 2020
(as of May 31, 2025)
KEY FACTS
|
||
Fund Size
|
$
|
|
Number of Holdings
|
||
Total Advisory Fee
|
$
|
|
Portfolio Turnover
|
What did the Fund invest in?
(as of May 31, 2025)
(as of May 31, 2025)
MARKET SECTORS
(% of Fund's net assets)
|
||
Financials
|
||
Industrials
|
||
Information Technology
|
||
Consumer Discretionary
|
||
Real Estate
|
||
ASSET ALLOCATION (% of Fund's net assets)
|
|
Common Stocks - 97.6
|
|
Short-Term Investments and Net Other Assets (Liabilities) - 2.4
|
|
GEOGRAPHIC DIVERSIFICATION (% of Fund's net assets)
|
|
United States - 71.7
|
|
United Kingdom - 9.4
|
|
Netherlands - 5.3
|
|
Singapore - 3.5
|
|
Italy - 3.1
|
|
Spain - 3.0
|
|
Brazil - 2.4
|
|
Norway - 1.6
|
|
TOP HOLDINGS
(% of Fund's net assets)
|
||
Mastercard Inc Class A
|
||
Visa Inc Class A
|
||
Adyen NV
|
||
Capital One Financial Corp
|
||
Equifax Inc
|
||
Blackrock Inc
|
||
AvidXchange Holdings Inc
|
||
Apollo Global Management Inc
|
||
Block Inc Class A
|
||
DBS Group Holdings Ltd
|
||
49.2
|
How has the Fund changed?
Fidelity, the Fidelity Investments Logo and all other Fidelity trademarks or service marks used herein are trademarks or service marks of FMR LLC. Any third-party marks that are used herein are trademarks or service marks of their respective owners. © 2025 FMR LLC. All rights reserved.
|
||
 |
 |
For additional information about the Fund; including its prospectus, financial information, holdings and proxy information, scan the QR code or visit fundresearch.fidelity.com/prospectus/sec
1.9913345.101 6997-TSRA-0725
|
Item 2.
Code of Ethics
As of the end of the period, May 31, 2025, Fidelity Covington Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Donald F. Donahue is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Mr. Donahue is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by Deloitte & Touche LLP, the member firms of Deloitte Touche Tohmatsu, and their respective affiliates (collectively, “Deloitte Entities”) in each of the last two fiscal years for services rendered to Fidelity Disruptors ETF (the “Fund”):
Services Billed by Deloitte Entities
May 31, 2025 FeesA
Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees | |
Fidelity Disruptors ETF | $23,800 | $- | $8,000 | $400 |
May 31, 2024 FeesA,B
Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees | |
Fidelity Disruptors ETF | $12,500 | $- | $7,500 | $400 |
A Amounts may reflect rounding.
B Fidelity Disruptors ETF commenced operations on June 16, 2023.
The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to Fidelity Disruptive Automation ETF, Fidelity Disruptive Communications ETF, Fidelity Disruptive Finance ETF, Fidelity Disruptive Medicine ETF, and Fidelity Disruptive Technology ETF (the “Funds”):
Services Billed by PwC
May 31, 2025 FeesA | Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Fidelity Disruptive Automation ETF | $36,600 | $- | $8,200 | $1,100 |
Fidelity Disruptive Communications ETF | $36,600 | $- | $8,200 | $1,100 |
Fidelity Disruptive Finance ETF | $36,600 | $- | $8,200 | $1,100 |
Fidelity Disruptive Medicine ETF | $36,900 | $- | $8,200 | $1,100 |
Fidelity Disruptive Technology ETF | $36,900 | $- | $8,200 | $1,100 |
May 31, 2024 FeesA,B
Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees | |
Fidelity Disruptive Automation ETF | $32,000 | $- | $7,900 | $900 |
Fidelity Disruptive Communications ETF | $32,000 | $- | $7,900 | $900 |
Fidelity Disruptive Finance ETF | $32,000 | $- | $7,900 | $900 |
Fidelity Disruptive Medicine ETF | $32,200 | $- | $7,900 | $900 |
Fidelity Disruptive Technology ETF | $32,200 | $- | $7,900 | $900 |
A Amounts may reflect rounding.
B Fidelity Disruptive Automation ETF, Fidelity Disruptive Communications ETF, Fidelity Disruptive Finance ETF, Fidelity Disruptive Medicine ETF, and Fidelity Disruptive Technology ETF commenced operations on June 9, 2023.
The following table(s) present(s) fees billed by Deloitte Entities and PwC that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Fund(s) and that are rendered on behalf of Fidelity Management & Research Company LLC ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund(s) (“Fund Service Providers”):
Services Billed by Deloitte Entities
May 31, 2025A | May 31, 2024A,B | |
Audit-Related Fees | $125,000 | $200,000 |
Tax Fees | $- | $- |
All Other Fees | $3,964,900 | $935,000 |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Disruptors ETF’s commencement of operations.
Services Billed by PwC
May 31, 2025A | May 31, 2024 A,B | |
Audit-Related Fees | $9,845,100 | $9,367,800 |
Tax Fees | $1,000 | $61,000 |
All Other Fees | $35,000 | $- |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Disruptive Automation ETF, Fidelity Disruptive Communications ETF, Fidelity Disruptive Finance ETF, Fidelity Disruptive Medicine ETF, and Fidelity Disruptive Technology ETF’s commencement of operations.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by Deloitte Entities and PwC for services rendered to the Fund(s), FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Fund(s) are as follows:
Billed By | May 31, 2025A | May 31, 2024A,B,C | |
Deloitte Entities | $4,479,600 | $5,167,400 | |
PwC | $14,924,100 | $14,907,400 |
A Amounts may reflect rounding.
B May include amounts billed prior to the Fidelity Disruptors ETF’s commencement of operations.
C May include amounts billed prior to the Fidelity Disruptive Automation ETF, Fidelity Disruptive Communications ETF, Fidelity Disruptive Finance ETF, Fidelity Disruptive Medicine ETF, and Fidelity Disruptive Technology ETF’s commencement of operations.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by Deloitte Entities and PwC to Fund Service Providers to be compatible with maintaining the independence of Deloitte Entities and PwC in its(their) audit of the Fund(s), taking into account representations from Deloitte Entities and PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Fund(s) and its(their) related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund(s) Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee periodically.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Fund’s(s’) last two fiscal years relating to services provided to (i) the Fund(s) or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Fund(s).
The Registrant has not retained, for the preparation of the audit report on the financial statements included in the Form N-CSR, a registered public accounting firm that has a branch or office that is located in a foreign jurisdiction and that the Public Company Accounting Oversight Board (the “PCAOB”) has determined that the PCAOB is unable to inspect or investigate completely because of a position taken by an authority in the foreign jurisdiction.
The Registrant is not a “foreign issuer,” as defined in 17 CFR 240.3b-4.
Item 5.
Audit Committee of Listed Registrants
The Audit Committee is a separately-designated standing audit committee in accordance with Section 3(a)(58)(A) of the Securities Exchange Act of 1934. As of May 14, 2025, the members of the Audit Committee were Donald F. Donahue, Vijay C. Advani, Thomas Kennedy, Karen Peetz, and Susan Tomasky.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable.
Item 7.
Financial Statements and Financial Highlights for Open-End Management Investment Companies
Fidelity® Disruptors ETF
Annual Report
May 31, 2025
Contents
|
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies (Annual Report) |
|
Fidelity® Disruptors ETF |
|
Notes to Financial Statements |
|
Report of Independent Registered Public Accounting Firm |
|
Distributions |
|
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies |
|
Item 9: Proxy Disclosures for Open-End Management Investment Companies |
|
Item 10: Remuneration Paid to Directors, Officers, and others of Open-End Management Investment Companies |
|
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-FIDELITY to request a free copy of the proxy voting guidelines.
The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with Fidelity and any related funds.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2025 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Fund. This report is not authorized for distribution to prospective investors in the Fund unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies (Annual Report)
Fidelity® Disruptors ETF
Schedule of Investments May 31, 2025
Showing Percentage of Net Assets
Domestic Equity Funds - 81.2%
|
|||
Shares
|
Value ($)
|
||
Fidelity Disruptive Communications ETF (a)
|
468,845
|
19,002,280
|
|
Fidelity Disruptive Finance ETF (a)
|
508,453
|
18,992,302
|
|
Fidelity Disruptive Medicine ETF (a)
|
732,888
|
17,143,868
|
|
Fidelity Disruptive Technology ETF (a)
|
510,611
|
18,111,980
|
|
|
TOTAL DOMESTIC EQUITY FUNDS
(Cost $56,673,315)
|
73,250,430
|
||
International Equity Funds - 18.8%
|
|||
Shares
|
Value ($)
|
||
Fidelity Disruptive Automation ETF (a)
(Cost $12,368,279)
|
594,019
|
16,977,054
|
|
Money Market Funds - 0.3%
|
||||
Yield (%)
|
Shares
|
Value ($)
|
||
Fidelity Cash Central Fund (b)
(Cost $299,602)
|
4.32
|
299,542
|
299,602
|
|
|
TOTAL INVESTMENT IN SECURITIES - 100.3%
(Cost $69,341,196)
|
90,527,086
|
NET OTHER ASSETS (LIABILITIES) - (0.3)%
|
(278,955)
|
NET ASSETS - 100.0%
|
90,248,131
|
Security Type Abbreviations
ETF
|
-
|
EXCHANGE-TRADED FUND
|
Legend
(a)
|
Affiliated Fund
|
(b)
|
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
|
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate
|
Value,
beginning
of period ($)
|
Purchases ($)
|
Sales
Proceeds ($)
|
Dividend
Income ($)
|
Realized
Gain (loss) ($)
|
Change in
Unrealized
appreciation
(depreciation) ($)
|
Value,
end
of period ($)
|
Shares,
end
of period
|
% ownership,
end
of period
|
Fidelity Cash Central Fund
|
108,572
|
259,134
|
68,104
|
14,834
|
-
|
-
|
299,602
|
299,542
|
0.0%
|
Fidelity Securities Lending Cash Central Fund
|
2,627,750
|
11,909,133
|
14,536,883
|
79,084
|
-
|
-
|
-
|
-
|
0.0%
|
Total
|
2,736,322
|
12,168,267
|
14,604,987
|
93,918
|
-
|
-
|
299,602
|
||
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium income received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Affiliated Underlying Funds
Fiscal year to date information regarding the Fund's investments in affiliated underlying funds is presented below. Exchanges between classes of the same affiliated underlying funds may occur. If an underlying fund changes its name, the name presented below is the name in effect at period end.
Affiliate
|
Value,
beginning
of period ($)
|
Purchases ($)
|
Sales
Proceeds ($)
|
Dividend
Income ($)
|
Realized
Gain (loss) ($)
|
Change in
Unrealized
appreciation
(depreciation) ($)
|
Value,
end
of period ($)
|
Shares,
end
of period
|
Fidelity Disruptive Automation ETF
|
17,401,255
|
1,161,803
|
3,255,849
|
78,291
|
1,181,321
|
488,524
|
16,977,054
|
594,019
|
Fidelity Disruptive Communications ETF
|
22,010,331
|
-
|
6,535,346
|
16,383
|
1,898,131
|
1,629,164
|
19,002,280
|
468,845
|
Fidelity Disruptive Finance ETF
|
19,652,013
|
-
|
5,067,393
|
161,635
|
1,490,890
|
2,916,792
|
18,992,302
|
508,453
|
Fidelity Disruptive Medicine ETF
|
16,712,709
|
3,644,573
|
3,264,021
|
72,556
|
176,421
|
(125,814)
|
17,143,868
|
732,888
|
Fidelity Disruptive Technology ETF
|
19,967,527
|
-
|
4,494,228
|
-
|
1,553,062
|
1,085,619
|
18,111,980
|
510,611
|
95,743,835
|
4,806,376
|
22,616,837
|
328,865
|
6,299,825
|
5,994,285
|
90,227,484
|
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2025, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date:
|
||||
Description
|
Total ($)
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Investments in Securities:
|
||||
Domestic Equity Funds
|
73,250,430
|
73,250,430
|
-
|
-
|
International Equity Funds
|
16,977,054
|
16,977,054
|
-
|
-
|
Money Market Funds
|
299,602
|
299,602
|
-
|
-
|
Total Investments in Securities:
|
90,527,086
|
90,527,086
|
-
|
-
|
Financial Statements
Statement of Assets and Liabilities
|
||||
As of May 31, 2025
|
||||
Assets
|
||||
Investment in securities, at value - See accompanying schedule:
|
||||
Fidelity Central Funds (cost $299,602)
|
$
|
299,602
|
||
Other affiliated issuers (cost $69,041,594)
|
90,227,484
|
|||
Total Investment in Securities (cost $69,341,196)
|
$
|
90,527,086
|
||
Cash
|
2,147
|
|||
Receivable for investments sold
|
2,388,212
|
|||
Distributions receivable from Fidelity Central Funds
|
1,122
|
|||
Total assets
|
92,918,567
|
|||
Liabilities
|
||||
Payable for investments purchased
|
$
|
2,670,436
|
||
Total liabilities
|
2,670,436
|
|||
Net Assets
|
$
|
90,248,131
|
||
Net Assets consist of:
|
||||
Paid in capital
|
$
|
83,675,300
|
||
Total accumulated earnings (loss)
|
6,572,831
|
|||
Net Assets
|
$
|
90,248,131
|
||
Net Asset Value, offering price and redemption price per share ($90,248,131 ÷ 2,825,062 shares)
|
$
|
31.95
|
||
Statement of Operations
|
||||
|
Year ended May 31, 2025
|
||||
Investment Income
|
||||
Dividends:
|
||||
Affiliated issuers
|
$
|
328,865
|
||
Income from Fidelity Central Funds (including $79,084 from security lending)
|
93,918
|
|||
Total income
|
422,783
|
|||
Expenses
|
||||
Independent trustees' fees and expenses
|
$
|
403
|
||
Total expenses
|
403
|
|||
Net Investment income (loss)
|
422,380
|
|||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
218
|
|||
Redemptions in-kind
|
5,534,439
|
|||
Affiliated issuers
|
765,386
|
|||
Total net realized gain (loss)
|
6,300,043
|
|||
Change in net unrealized appreciation (depreciation) on:
|
||||
Investment Securities:
|
||||
Affiliated issuers
|
5,994,285
|
|||
Total change in net unrealized appreciation (depreciation)
|
5,994,285
|
|||
Net gain (loss)
|
12,294,328
|
|||
Net increase (decrease) in net assets resulting from operations
|
$
|
12,716,708
|
||
Statement of Changes in Net Assets
|
||||
Year ended
May 31, 2025
|
Year ended
May 31, 2024
|
|||
Increase (Decrease) in Net Assets
|
||||
Operations
|
||||
Net investment income (loss)
|
$
|
422,380
|
$
|
327,672
|
Net realized gain (loss)
|
6,300,043
|
3,076,867
|
||
Change in net unrealized appreciation (depreciation)
|
5,994,285
|
11,699,015
|
||
Net increase (decrease) in net assets resulting from operations
|
12,716,708
|
15,103,554
|
||
Distributions to shareholders
|
(419,859)
|
(204,878)
|
||
Share transactions
|
||||
Proceeds from sales of shares
|
-
|
6,190,582
|
||
Cost of shares redeemed
|
(17,916,326)
|
(20,630,421)
|
||
Net increase (decrease) in net assets resulting from share transactions
|
(17,916,326)
|
(14,439,839)
|
||
Total increase (decrease) in net assets
|
(5,619,477)
|
458,837
|
||
Net Assets
|
||||
Beginning of period
|
95,867,608
|
95,408,771
|
||
End of period
|
$
|
90,248,131
|
$
|
95,867,608
|
Other Information
|
||||
Shares
|
||||
Sold
|
-
|
225,397
|
||
Redeemed
|
(600,000)
|
(827,857)
|
||
Net increase (decrease)
|
(600,000)
|
(602,460)
|
||
See Organization and Reorganization Information note regarding reorganization during the prior fiscal year.
Share activity is further described in Organization and Reorganization Information notes, and amounts for the prior fiscal years have been adjusted to reflect the impact of the change in capital structure associated with the merger. All financial information prior to the merger is that of the Predecessor Fund.
Financial Highlights
Fidelity® Disruptors ETF |
Years ended May 31,
|
2025
|
2024 A
|
2023 A
|
2022 A
|
2021 A
|
|||||
Selected Per-Share Data
|
||||||||||
Net asset value, beginning of period
|
$
|
27.99
|
$
|
23.69
|
$
|
22.31
|
$
|
29.44
|
$
|
20.17
|
Income from Investment Operations
|
||||||||||
Net investment income (loss) B,C
|
.14
|
.09
|
(.10)
|
(.21)
|
(.21)
|
|||||
Net realized and unrealized gain (loss)
|
3.96
|
4.27
|
1.48
|
(6.54)
|
9.67
|
|||||
Total from investment operations
|
4.10
|
4.36
|
1.38
|
(6.75)
|
9.46
|
|||||
Distributions from net investment income
|
(.14)
|
(.06)
|
-
|
-
|
-
|
|||||
Distributions from net realized gain
|
-
|
-
|
-
|
(.38)
|
(.19)
|
|||||
Total distributions
|
(.14)
|
(.06)
|
-
|
(.38)
|
(.19)
|
|||||
Net asset value, end of period
|
$
|
31.95
|
$
|
27.99
|
$
|
23.69
|
$
|
22.31
|
$
|
29.44
|
Total Return D,E
|
14.68 % |
18.43%
|
6.17%
|
(23.29)%
|
46.99%
|
|||||
Ratios to Average Net Assets C,F,G
|
||||||||||
Expenses before reductions
|
-% H
|
.03%
|
.90%
|
1.00%
|
1.01% I
|
|||||
Expenses net of fee waivers, if any
|
- % H |
-% H
|
.82%
|
1.00%
|
1.01% I
|
|||||
Expenses net of all reductions, if any
|
-% H
|
-% H
|
.82%
|
1.00%
|
1.01% I
|
|||||
Net investment income (loss)
|
.46%
|
.35%
|
(.50)%
|
(.69)%
|
(.77)%
|
|||||
Supplemental Data
|
||||||||||
Net assets, end of period (000 omitted)
|
$
|
90,248
|
$
|
95,868
|
$
|
95,409
|
$
|
48,579
|
$
|
141,385
|
Portfolio turnover rate J
|
5 % K |
4% K
|
12%
|
22%
|
3%
|
AAs further described in Organization and Reorganization information notes, per share amounts have been adjusted to reflect the impact of the change in capital structure associated with the reorganization. All financial information prior to the reorganization is that of the Predecessor Fund.
BCalculated based on average shares outstanding during the period.
CNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
DBased on net asset value.
ETotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
FFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
HAmount represents less than .005%.
IThe size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
JAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs), derivatives or securities that mature within one year from acquisition.
KPortfolio turnover rate excludes securities received or delivered in-kind.
Notes to Financial Statements
For the period ended May 31, 2025
1. Organization.
Fidelity Disruptors ETF (the Fund) is an exchange-traded fund of Fidelity Covington Trust (the Trust) and is authorized to issue an unlimited number of shares. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust.
Effective June 16, 2023, Fidelity Disruptors Fund (Predecessor Fund) reorganized into the newly created Fidelity Disruptors ETF. The Predecessor Fund was the accounting survivor in the reorganization, and, as such, the financial statements and financial highlights of the Fund for the fiscal year ended May 31, 2024 and prior reflect the financial information of the Predecessor Fund through June 16, 2023 (see Prior Fiscal Year Reorganization Information note).
2. Investments in Fidelity Central Funds.
Funds may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund
|
Investment Manager
|
Investment Objective
|
Investment Practices
|
Expense RatioA
|
Fidelity Money Market Central Funds
|
Fidelity Management & Research Company LLC (FMR)
|
Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity.
|
Short-term Investments
|
Less than .005%
|
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Significant Accounting Policies.
The Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The Fund operates as a single operating segment. The Fund's income, expenses, assets, and performance are regularly monitored and assessed as a whole by the investment adviser and other individuals responsible for oversight functions of the Trust, using the information presented in the financial statements and financial highlights. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses a third party pricing service approved by the Board of Trustees (the Board) to value its investments. The Board of Trustees (the Board) has designated the Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, the Fund attempts to obtain prices from one or more third party pricing services or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages the Fund's fair valuation practices and maintains the fair valuation policies and procedures. The Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - unadjusted quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Exchange-Traded Funds (ETFs) are valued at their last sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day but the exchange reports a closing bid level, ETFs are valued at the closing bid and would be categorized as Level 1 in the hierarchy. In the event there was no closing bid, ETFs may be valued by another method that the Board believes reflects fair value in accordance with the Board's fair value pricing policies and may be categorized as Level 2 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2025 is included at the end of the Fund's Schedule of Investments.
Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business (normally 4:00 p.m. Eastern time) of the Nasdaq Stock Market and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Income and capital gain distributions from any underlying mutual funds or exchange-traded funds are recorded on the ex-dividend date.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of May 31, 2025, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Realized gain or loss resulting from in-kind redemptions is not taxable to the Fund and is not distributed to shareholders of the Fund.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to redemptions in-kind, capital loss carryforwards and losses deferred due to wash sales.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows:
Gross unrealized appreciation
|
$22,231,934
|
Gross unrealized depreciation
|
(1,349,767)
|
Net unrealized appreciation (depreciation)
|
$20,882,167
|
Tax Cost
|
$69,644,919
|
The tax-based components of distributable earnings as of period end were as follows:
Undistributed ordinary income
|
$2,521
|
Capital loss carryforward
|
$(14,311,857)
|
Net unrealized appreciation (depreciation) on securities and other investments
|
$20,882,167
|
Capital loss carryforwards are only available to offset future capital gains of the Fund to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
Short-term
|
$(5,098,756)
|
Long-term
|
(9,213,101)
|
Total capital loss carryforward
|
$(14,311,857)
|
The tax character of distributions paid was as follows:
May 31, 2025
|
May 31, 2024
|
|
Ordinary Income
|
$419,859
|
$204,878
|
New Accounting Pronouncements. FASB Accounting Standards Update (ASU) 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures became effective in this reporting period. ASU 2023-07 enhances segment information disclosure in the notes to financial statements.
In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Effective for annual periods beginning after December 15, 2024, the amendments require greater disaggregation of disclosures related to income taxes paid. The ASU allows for early adoption and amendments should be applied on a prospective basis. Management is currently evaluating the impact of the ASU but does not expect this guidance to materially impact the financial statements.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($)
|
Sales ($)
|
|
Fidelity Disruptors ETF
|
4,806,375
|
4,762,284
|
Securities received and delivered in-kind through subscriptions and redemptions are noted in the table below.
In-Kind Subscriptions ($)
|
In-Kind Redemptions ($)
|
|
Fidelity Disruptors ETF
|
-
|
17,854,552
|
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) provides the Fund with investment management related services. The Fund does not pay any fees for these services. Under the management contract, the investment adviser pays all expenses, except the compensation of the independent Trustees and certain miscellaneous expenses such as proxy and shareholders meeting expenses.
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. During the period, there were no interfund trades.
6. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, the borrowers provide collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the fair value of the loaned securities during the period of the loan. The fair value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned or gaining access to non-cash collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral less rebates paid to borrowers, plus any premium income received, or for non-cash collateral, fees received from borrowers as compensation for the securities loaned. Securities lending income is reduced by any lending agent fees associated with the loan. Any security lending income earned on investing cash collateral is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Any security lending income earned on non-cash collateral is presented in the Statement of Operations as a component of dividends. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS ($)
|
Security Lending Income From Securities Loaned to NFS ($)
|
Value of Securities Loaned to NFS at Period End ($)
|
|
Fidelity Disruptors ETF
|
8,492
|
-
|
-
|
7. Share Transactions.
Funds issue and redeem shares at NAV only with certain authorized participants in large increments known as Creation Units. Purchases of Creation Units are made by tendering a basket of designated securities to a fund and redemption proceeds are paid with a basket of securities from a fund's portfolio with a balancing cash component to equate the market value of the basket of securities delivered or redeemed to the NAV per Creation Unit on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery. A fund's shares are available in smaller increments to investors in the secondary market at market prices and may be subject to commissions. Authorized participants pay a transaction fee to the shareholder servicing agent when purchasing and redeeming Creation Units of a fund. The transaction fee is used to offset the costs associated with the issuance and redemption of Creation Units.
8. Other.
A fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
9. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer. Significant concentrations in security types, issuers, industries, sectors, and geographic locations may magnify the factors that affect a fund's performance.
10. Prior Fiscal Year Reorganization Information.
On June 16, 2023 the Fidelity Disruptors Fund (Predecessor Fund) reorganized into a newly created Fidelity Disruptors ETF (ETF) pursuant to an Agreement and Plan of Reorganization (the Agreement) approved by its Board of Trustees. Per the Agreement, shareholders of the Predecessor Fund received ETF shares equal in value to the shares of the Predecessor Fund they owned on the day the reorganization was effective. The Predecessor Fund was the accounting survivor after the reorganization. As such, performance and financial history prior to the reorganization is that of the Predecessor Fund. Historical share transactions and per share information for the Predecessor Fund was retroactively adjusted to reflect the change in capital structure due to the reorganization.
For financial reporting purposes, the assets and liabilities of the Predecessor Fund and shares issued by the ETF were recorded at fair value; however, the cost basis of the investments received from the Predecessor Fund were carried forward and will be utilized for purposes of the ETF's ongoing reporting of realized and unrealized gains and losses to more closely align subsequent reporting of realized gains with amounts distributable to shareholders for tax purposes. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to the funds or their shareholders. Costs incurred in connection with the reorganization were paid by the Predecessor Fund.
Predecessor Fund/Accounting Survivor
|
Investments ($)
|
Unrealized appreciation (depreciation) ($)
|
Net Assets ($)
|
Shares Exchanged
|
Shares Exchanged Ratio
|
Fidelity Disruptors Fund
|
98,438,042
|
8,954,987
|
98,615,698
|
3,944,631
|
.5736680000
|
Legal Acquiring ETF
|
Net Assets ($)
|
Total net assets after the acquisition ($)
|
Fidelity Disruptors ETF
|
25
|
98,615,723
|
Pro forma results of operations of the combined entity for the entire period ended May 31, 2024, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition date), are as follows:
Net investment income (loss)
|
$327,689
|
Total net realized gain (loss)
|
3,076,867
|
Total change in net unrealized appreciation (depreciation)
|
11,699,015
|
Net increase (decrease) in net assets resulting from operations
|
$15,103,571
|
Because the combined investment portfolios have been managed as a single portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of the Predecessor Fund that has been included in the ETF's Statement of Operations since June 16, 2023.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Covington Trust and the Shareholders of Fidelity Disruptors ETF:
Opinion on the Financial Statements and Financial Highlights
We have audited the accompanying statement of assets and liabilities of Fidelity Disruptors ETF (the "Fund"), a fund of Fidelity Covington Trust, including the schedule of investments, as of May 31, 2025, the related statement of operations for the year then ended, the statement of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of May 31, 2025, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on the Fund's financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of May 31, 2025, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
Boston, Massachusetts
July 15, 2025
We have served as the auditor of one or more of the Fidelity investment companies since 1999.
Distributions
(Unaudited)The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
The fund designates $20,797 of distributions paid during the fiscal year ended May 31, 2025, as qualifying to be taxed as section 163(j) interest dividends.
The fund designates 43%, 43%, 43% and 31% of the dividends distributed in June 2024, September 2024, December 2024, and March 2025, respectively during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.
The fund designates 64.95%, 64.95%, 64.95% and 72.76% of the dividends distributed in June 2024, September 2024, December 2024, and March 2025, respectively during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
The fund designates 0.06%, 0.06%, 0.06% and 0.16% of the dividends distributed in June 2024, September 2024, December 2024 and March 2025, respectively during the fiscal year as a section 199A dividend.
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are $.0054 and $.0029 for the dividend paid June 25, 2024.
The fund will notify shareholders in January 2026 of amounts for use in preparing 2025 income tax returns.
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies
(Unaudited)
Note: This is not applicable for any fund included in this document.
Item 9: Proxy Disclosures for Open-End Management Investment Companies
(Unaudited)
A special meeting of shareholders was held on July 16, 2024. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
|
||
Proposal 1
|
||
To elect a Board of Trustees.
|
||
# of
Votes
|
% of
Votes
|
|
Bettina Doulton
|
||
Affirmative
|
38,080,283,823.03
|
97.17
|
Withheld
|
1,109,333,237.47
|
2.83
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Robert A. Lawrence
|
||
Affirmative
|
37,781,807,251.33
|
96.41
|
Withheld
|
1,407,809,809.17
|
3.59
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Vijay C. Advani
|
||
Affirmative
|
37,869,526,083.09
|
96.63
|
Withheld
|
1,320,090,977.41
|
3.37
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Thomas P. Bostick
|
||
Affirmative
|
38,025,875,898.31
|
97.03
|
Withheld
|
1,163,741,162.19
|
2.97
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Donald F. Donahue
|
||
Affirmative
|
37,825,198,238.79
|
96.52
|
Withheld
|
1,364,418,821.71
|
3.48
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Vicki L. Fuller
|
||
Affirmative
|
38,031,768,119.99
|
97.05
|
Withheld
|
1,157,848,940.51
|
2.95
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Patricia L. Kampling
|
||
Affirmative
|
38,062,391,881.90
|
97.12
|
Withheld
|
1,127,225,178.60
|
2.88
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Thomas A. Kennedy
|
||
Affirmative
|
37,891,434,776.27
|
96.69
|
Withheld
|
1,298,182,284.23
|
3.31
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Oscar Munoz
|
||
Affirmative
|
37,976,932,673.73
|
96.91
|
Withheld
|
1,212,684,386.77
|
3.09
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Karen B. Peetz
|
||
Affirmative
|
38,011,822,212.28
|
96.99
|
Withheld
|
1,177,794,848.22
|
3.01
|
TOTAL
|
39,189,617,060.50
|
100.00
|
David M. Thomas
|
||
Affirmative
|
37,976,058,118.16
|
96.90
|
Withheld
|
1,213,558,942.34
|
3.10
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Susan Tomasky
|
||
Affirmative
|
37,845,471,684.67
|
96.57
|
Withheld
|
1,344,145,375.83
|
3.43
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Michael E. Wiley
|
||
Affirmative
|
37,736,569,620.69
|
96.29
|
Withheld
|
1,453,047,439.81
|
3.71
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Proposal 1 reflects trust-wide proposal and voting results.
|
||
Item 10: Remuneration Paid to Directors, Officers, and others of Open-End Management Investment Companies
(Unaudited)
Note: This information is disclosed as part of the financial statements for each Fund as part of Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract
(Unaudited)
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Disruptors ETF
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), considers the renewal of the fund's management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for the fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board, acting directly and through its Committees (each of which is composed of and chaired by Independent Trustees), requests and receives information concerning the annual consideration of the renewal of the fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
At its May 2025 meeting, the Board unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness relative to peer funds of the fund's management fee and total expense ratio; (iii) the total costs of the services provided by and the profits realized by FMR and its affiliates (Fidelity) from their respective relationships with the fund; and (iv) the extent to which, if any, economies of scale exist and are realized as the fund grows, and whether any economies of scale are appropriately shared with fund shareholders. The Board also considered the broad range of investment choices available to shareholders from FMR's competitors and that the fund's shareholders have chosen to invest in the fund, which is part of the Fidelity family of funds. The Board's decision to renew the Advisory Contracts was not based on any single factor and the factors may have been weighed differently by different Trustees.
The Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of the fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable, in light of all of the surrounding circumstances.
Nature, Extent, and Quality of Services Provided. The Board considered staffing as it relates to the fund, including the backgrounds and experience of investment personnel of the Investment Advisers, and also considered the Investment Advisers' implementation of the fund's investment program. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of the fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of the Investment Advisers' staff, such as size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, and to transmit new information and research conclusions rapidly. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative services provided by the Investment Advisers and their affiliates under the Advisory Contracts and under a separate agreement covering pricing and bookkeeping services for the fund; (ii) the nature and extent of Fidelity's supervision of third party service providers, principally State Street Bank and Trust Company, the fund's transfer agent and custodian; and (iii) the resources devoted by Fidelity to, and the record of compliance with, the fund's compliance policies and procedures, including with respect to liquidity risk management. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services. The Board also considered the fund's securities lending activities and any payments made to Fidelity relating to securities lending under a separate agreement.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, investor education materials, and asset allocation tools. The Board also considered that it reviews customer service metrics such as telephone response times, continuity of services on the website and metrics addressing services at Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of fund investor services. The Board noted that Fidelity had taken, or had made recommendations to the Board that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds and/or the Fidelity funds in general.
Investment Performance. The Board took into account discussions that occur with representatives of the Investment Advisers, and reports that it receives, at Board meetings throughout the year with representatives of the Investment Advisers relating to fund investment performance. In this regard the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considered annualized return information for the fund for different time periods, measured against an appropriate securities market index (benchmark index). The Board also considered information about performance attribution. In its ongoing evaluation of fund investment performance, the Board gives particular attention to information indicating changes in performance of the fund over different time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance. The Board also considered information on the fund's bid-ask spread and premium/discount.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. The Independent Trustees generally give greater weight to fund performance over longer time periods than over shorter time periods. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index for certain periods.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should continue to benefit the shareholders of the fund.
Competitiveness of Management Fee and Total Expense Ratio. The Board was provided with information regarding industry trends in management fees and expenses. In its review of the fund's management fee and total expense ratio, the Board considered the fund's all-inclusive fee rate and also considered other expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees, paid by FMR under the fund's all-inclusive arrangement. The Board noted that Fidelity may agree to waive fees or reimburse expenses from time to time, and the extent to which, if any, it has done so for the fund.
Comparisons of Management Fees and Total Expense Ratios. Among other things, the Board reviewed data for selected groups of competitive funds and classes (referred to as "total peer groups") that were compiled by Fidelity based on combining Morningstar Categories that have comparable investment mandates and sales load types (as classified by Lipper). The data reviewed by the Board included (i) gross management fee comparisons (before taking into account expense reimbursements or caps) relative to the total peer group; (ii) gross management fee comparisons relative to a subset of non-Fidelity funds in the total peer group that are similar in size to the fund (referred to as the "asset-sized peer group"); (iii) total expense comparisons of the fund relative to funds and classes in the total peer group; and (iv) total expense comparisons (excluding performance adjustments and fund-paid 12b-1 fees) of the fund relative to funds and classes in the asset-sized peer group). The asset-sized peer group comparison excludes performance adjustments and fund-paid 12b-1 fees to eliminate variability in fee structures.
The information provided to the Board indicated that the fund's management fee rate ranked below the competitive median of the total peer group for the 12-month period ended September 30, 2024 and below the competitive median of the asset-sized peer group for the 12-month period ended September 30, 2024. Further, the information provided to the Board indicated that the total expense ratio of the fund ranked below the competitive median of the total peer group for the 12-month period ended September 30, 2024 and below the competitive median of the asset-sized peer group for the 12-month period ended September 30, 2024.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients with similar mandates. The Board noted that a joint ad hoc committee created by it and the boards of other Fidelity funds periodically reviews and compares Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds and also noted the most recent findings of the committee. The Board noted that the committee's review included a consideration of the differences in services provided, fees charged, and costs incurred, as well as competition in the markets serving the different categories of clients.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered. Further, based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and servicing the fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationships with the fund. Fidelity calculates profitability information for the Fidelity fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
A public accounting firm has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. The engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's fund business. After considering the reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the funds' business. The Board considered areas where potential indirect benefits to the Fidelity funds from their relationships with Fidelity may exist. The Board's consideration of these matters was informed by the findings of a joint ad hoc committee created by it and the boards of other Fidelity funds to evaluate potential fall-out benefits.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was satisfied that the profitability was not excessive.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board recognized that, due to the fund's current contractual arrangements, its expense ratio will not decline if the fund's operating costs decrease as assets grow, or rise as assets decrease. The Board also noted that a committee created by it and the boards of other Fidelity funds periodically analyzes whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale. The Board's consideration of these matters was informed by the most recent findings of the committee.
The Board concluded, taking into account the analysis of committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including but not limited to: (i) fund flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds; (ii) the operation of performance fees and the rationale for implementing performance fees on certain categories of funds but not others; (iii) Fidelity's pricing philosophy compared to competitors; (iv) fund profitability methodology and data; (v) evaluation of competitive fund data and peer group classifications and fee and expense comparisons, as well as the methodology used for fee and expense comparisons; (vi) the management fee and expense structures for different funds and classes and information about the differences between various fee and expense structures; and (vii) information regarding other accounts managed by Fidelity and the funds' sub-advisory arrangements.
Conclusion. Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board, including the Independent Trustees, concluded that the advisory and sub-advisory fee arrangements are fair and reasonable in light of all of the surrounding circumstances and that the fund's Advisory Contracts should be renewed through May 31, 2026.
 |
1.9910203.101
DRE-ANN-0725
Fidelity® Disruptive Automation ETF
Fidelity® Disruptive Communications ETF
Fidelity® Disruptive Finance ETF
Fidelity® Disruptive Medicine ETF
Fidelity® Disruptive Technology ETF
Annual Report
May 31, 2025
Contents
|
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies (Annual Report) |
|
Fidelity® Disruptive Automation ETF |
|
Fidelity® Disruptive Communications ETF |
|
Fidelity® Disruptive Finance ETF |
|
Fidelity® Disruptive Medicine ETF |
|
Fidelity® Disruptive Technology ETF |
|
Notes to Financial Statements |
|
Report of Independent Registered Public Accounting Firm |
|
Distributions |
|
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies |
|
Item 9: Proxy Disclosures for Open-End Management Investment Companies |
|
Item 10: Remuneration Paid to Directors, Officers, and others of Open-End Management Investment Companies |
|
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract |
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-FIDELITY to request a free copy of the proxy voting guidelines.
The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The prospectus contains a more detailed description of the limited relationship MSCI has with Fidelity and any related funds.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2025 FMR LLC. All rights reserved.
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Funds. This report is not authorized for distribution to prospective investors in the Funds unless preceded or accompanied by an effective prospectus.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-PORT. Forms N-PORT are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-PORT may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Funds nor Fidelity Distributors Corporation is a bank.
Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies (Annual Report)
Fidelity® Disruptive Automation ETF
Schedule of Investments May 31, 2025
Showing Percentage of Net Assets
Common Stocks - 98.3%
|
|||
Shares
|
Value ($)
|
||
CANADA - 2.3%
|
|||
Industrials - 2.3%
|
|||
Machinery - 2.3%
|
|||
ATS Corp (a)
|
93,873
|
2,716,971
|
|
CHINA - 8.0%
|
|||
Consumer Discretionary - 2.3%
|
|||
Automobiles - 2.3%
|
|||
BYD Co Ltd H Shares
|
55,392
|
2,774,863
|
|
Industrials - 5.7%
|
|||
Machinery - 5.7%
|
|||
Airtac International Group
|
75,139
|
2,343,698
|
|
Estun Automation Co Ltd A Shares (China)
|
327,072
|
873,131
|
|
Shenzhen Inovance Technology Co Ltd A Shares (China) (a)
|
400,044
|
3,654,973
|
|
6,871,802
|
|||
TOTAL CHINA
|
9,646,665
|
||
FRANCE - 2.1%
|
|||
Information Technology - 2.1%
|
|||
Software - 2.1%
|
|||
Dassault Systemes SE
|
67,927
|
2,545,215
|
|
GERMANY - 4.4%
|
|||
Industrials - 3.3%
|
|||
Industrial Conglomerates - 3.3%
|
|||
Siemens AG
|
16,348
|
3,931,503
|
|
Information Technology - 1.1%
|
|||
Software - 1.1%
|
|||
Nemetschek SE
|
10,183
|
1,414,068
|
|
TOTAL GERMANY
|
5,345,571
|
||
IRELAND - 1.1%
|
|||
Information Technology - 1.1%
|
|||
IT Services - 1.1%
|
|||
Accenture PLC Class A
|
4,227
|
1,339,198
|
|
JAPAN - 17.4%
|
|||
Industrials - 15.4%
|
|||
Machinery - 13.9%
|
|||
Daifuku Co Ltd
|
119,518
|
3,212,729
|
|
FANUC Corp
|
103,775
|
2,789,546
|
|
Komatsu Ltd
|
65,142
|
2,001,862
|
|
MISUMI Group Inc
|
154,339
|
2,053,456
|
|
SMC Corp
|
8,933
|
3,361,631
|
|
THK Co Ltd
|
121,598
|
3,343,850
|
|
16,763,074
|
|||
Professional Services - 1.5%
|
|||
Recruit Holdings Co Ltd
|
29,235
|
1,765,335
|
|
TOTAL INDUSTRIALS
|
18,528,409
|
||
Information Technology - 2.0%
|
|||
Electronic Equipment, Instruments & Components - 2.0%
|
|||
Keyence Corp
|
5,652
|
2,385,785
|
|
TOTAL JAPAN
|
20,914,194
|
||
SWEDEN - 3.3%
|
|||
Industrials - 3.3%
|
|||
Machinery - 3.3%
|
|||
Epiroc AB A Shares
|
89,205
|
1,995,887
|
|
Sandvik AB
|
90,958
|
1,986,722
|
|
TOTAL SWEDEN
|
3,982,609
|
||
SWITZERLAND - 1.6%
|
|||
Industrials - 1.6%
|
|||
Machinery - 1.6%
|
|||
Kardex Holding AG
|
6,457
|
1,918,270
|
|
TAIWAN - 7.7%
|
|||
Industrials - 1.9%
|
|||
Machinery - 1.9%
|
|||
Hiwin Technologies Corp
|
309,693
|
2,324,354
|
|
Information Technology - 5.8%
|
|||
Semiconductors & Semiconductor Equipment - 5.8%
|
|||
Taiwan Semiconductor Manufacturing Co Ltd
|
215,914
|
6,980,103
|
|
TOTAL TAIWAN
|
9,304,457
|
||
UNITED KINGDOM - 2.7%
|
|||
Information Technology - 2.7%
|
|||
Electronic Equipment, Instruments & Components - 1.4%
|
|||
Renishaw PLC
|
48,958
|
1,695,264
|
|
Technology Hardware, Storage & Peripherals - 1.3%
|
|||
Raspberry PI Ltd (a)(b)
|
228,002
|
1,608,184
|
|
TOTAL UNITED KINGDOM
|
3,303,448
|
||
UNITED STATES - 47.7%
|
|||
Communication Services - 2.2%
|
|||
Interactive Media & Services - 2.2%
|
|||
Alphabet Inc Class C
|
15,110
|
2,611,763
|
|
Consumer Discretionary - 3.3%
|
|||
Automobiles - 1.0%
|
|||
Tesla Inc (a)
|
3,489
|
1,208,799
|
|
Broadline Retail - 2.3%
|
|||
Amazon.com Inc (a)
|
13,300
|
2,726,633
|
|
TOTAL CONSUMER DISCRETIONARY
|
3,935,432
|
||
Health Care - 2.6%
|
|||
Health Care Equipment & Supplies - 2.6%
|
|||
Intuitive Surgical Inc (a)
|
5,716
|
3,157,175
|
|
Industrials - 19.0%
|
|||
Aerospace & Defense - 5.4%
|
|||
Axon Enterprise Inc (a)
|
7,132
|
5,351,568
|
|
Rocket Lab Corp (b)
|
41,374
|
1,108,409
|
|
6,459,977
|
|||
Electrical Equipment - 3.3%
|
|||
AMETEK Inc
|
10,780
|
1,926,817
|
|
Rockwell Automation Inc
|
6,513
|
2,055,177
|
|
3,981,994
|
|||
Ground Transportation - 2.7%
|
|||
Uber Technologies Inc (a)
|
39,172
|
3,296,716
|
|
Machinery - 7.6%
|
|||
Caterpillar Inc
|
4,660
|
1,621,820
|
|
Deere & Co
|
11,526
|
5,835,153
|
|
Symbotic Inc Class A (a)(b)
|
59,651
|
1,710,194
|
|
9,167,167
|
|||
TOTAL INDUSTRIALS
|
22,905,854
|
||
Information Technology - 20.6%
|
|||
Electronic Equipment, Instruments & Components - 1.1%
|
|||
Teledyne Technologies Inc (a)
|
2,636
|
1,314,995
|
|
Semiconductors & Semiconductor Equipment - 8.0%
|
|||
NVIDIA Corp
|
48,645
|
6,573,399
|
|
Teradyne Inc
|
39,503
|
3,104,936
|
|
9,678,335
|
|||
Software - 11.5%
|
|||
Autodesk Inc (a)
|
5,985
|
1,772,278
|
|
Manhattan Associates Inc (a)
|
6,157
|
1,162,318
|
|
Microsoft Corp
|
3,642
|
1,676,631
|
|
PTC Inc (a)
|
41,206
|
6,935,794
|
|
Synopsys Inc (a)
|
5,023
|
2,330,572
|
|
13,877,593
|
|||
TOTAL INFORMATION TECHNOLOGY
|
24,870,923
|
||
TOTAL UNITED STATES
|
57,481,147
|
||
|
TOTAL COMMON STOCKS
(Cost $100,601,964)
|
118,497,745
|
||
Money Market Funds - 4.8%
|
||||
Yield (%)
|
Shares
|
Value ($)
|
||
Fidelity Cash Central Fund (c)
|
4.32
|
1,711,047
|
1,711,389
|
|
Fidelity Securities Lending Cash Central Fund (c)(d)
|
4.32
|
4,036,118
|
4,036,521
|
|
|
TOTAL MONEY MARKET FUNDS
(Cost $5,747,910)
|
5,747,910
|
|||
|
TOTAL INVESTMENT IN SECURITIES - 103.1%
(Cost $106,349,874)
|
124,245,655
|
NET OTHER ASSETS (LIABILITIES) - (3.1)%
|
(3,748,115)
|
NET ASSETS - 100.0%
|
120,497,540
|
Legend
(a)
|
Non-income producing
|
(b)
|
Security or a portion of the security is on loan at period end.
|
(c)
|
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
|
(d)
|
Investment made with cash collateral received from securities on loan.
|
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate
|
Value,
beginning
of period ($)
|
Purchases ($)
|
Sales
Proceeds ($)
|
Dividend
Income ($)
|
Realized
Gain (loss) ($)
|
Change in
Unrealized
appreciation
(depreciation) ($)
|
Value,
end
of period ($)
|
Shares,
end
of period
|
% ownership,
end
of period
|
Fidelity Cash Central Fund
|
179,990
|
10,487,290
|
8,955,893
|
29,928
|
2
|
-
|
1,711,389
|
1,711,047
|
0.0%
|
Fidelity Securities Lending Cash Central Fund
|
1,508,950
|
35,950,683
|
33,423,112
|
84,201
|
-
|
-
|
4,036,521
|
4,036,118
|
0.0%
|
Total
|
1,688,940
|
46,437,973
|
42,379,005
|
114,129
|
2
|
-
|
5,747,910
|
||
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium income received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2025, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date:
|
||||
Description
|
Total ($)
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Investments in Securities:
|
||||
Common Stocks
|
||||
Communication Services
|
2,611,763
|
2,611,763
|
-
|
-
|
Consumer Discretionary
|
6,710,295
|
6,710,295
|
-
|
-
|
Health Care
|
3,157,175
|
3,157,175
|
-
|
-
|
Industrials
|
63,179,772
|
63,179,772
|
-
|
-
|
Information Technology
|
42,838,740
|
42,838,740
|
-
|
-
|
Money Market Funds
|
5,747,910
|
5,747,910
|
-
|
-
|
Total Investments in Securities:
|
124,245,655
|
124,245,655
|
-
|
-
|
Fidelity® Disruptive Automation ETF
Financial Statements
Statement of Assets and Liabilities
|
||||
As of May 31, 2025
|
||||
Assets
|
||||
Investment in securities, at value (including securities loaned of $3,792,198) - See accompanying schedule:
|
||||
Unaffiliated issuers (cost $100,601,964)
|
$
|
118,497,745
|
||
Fidelity Central Funds (cost $5,747,910)
|
5,747,910
|
|||
Total Investment in Securities (cost $106,349,874)
|
$
|
124,245,655
|
||
Cash
|
22,363
|
|||
Dividends receivable
|
137,391
|
|||
Reclaims receivable
|
148,303
|
|||
Distributions receivable from Fidelity Central Funds
|
26,494
|
|||
Other receivables
|
811
|
|||
Total assets
|
124,581,017
|
|||
Liabilities
|
||||
Accrued management fee
|
$
|
46,956
|
||
Collateral on securities loaned
|
4,036,521
|
|||
Total liabilities
|
4,083,477
|
|||
Net Assets
|
$
|
120,497,540
|
||
Net Assets consist of:
|
||||
Paid in capital
|
$
|
112,021,493
|
||
Total accumulated earnings (loss)
|
8,476,047
|
|||
Net Assets
|
$
|
120,497,540
|
||
Net Asset Value, offering price and redemption price per share ($120,497,540 ÷ 4,205,492 shares)
|
$
|
28.65
|
||
Statement of Operations
|
||||
|
Year ended May 31, 2025
|
||||
Investment Income
|
||||
Dividends
|
$
|
932,285
|
||
Income from Fidelity Central Funds (including $84,201 from security lending)
|
114,129
|
|||
Total income
|
1,046,414
|
|||
Expenses
|
||||
Management fee
|
$
|
514,936
|
||
Independent trustees' fees and expenses
|
443
|
|||
Total expenses before reductions
|
515,379
|
|||
Expense reductions
|
(577)
|
|||
Total expenses after reductions
|
514,802
|
|||
Net Investment income (loss)
|
531,612
|
|||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
952,827
|
|||
Redemptions in-kind
|
2,851,421
|
|||
Fidelity Central Funds
|
2
|
|||
Foreign currency transactions
|
(35,574)
|
|||
Total net realized gain (loss)
|
3,768,676
|
|||
Change in net unrealized appreciation (depreciation) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
6,635,878
|
|||
Assets and liabilities in foreign currencies
|
26,092
|
|||
Total change in net unrealized appreciation (depreciation)
|
6,661,970
|
|||
Net gain (loss)
|
10,430,646
|
|||
Net increase (decrease) in net assets resulting from operations
|
$
|
10,962,258
|
||
Statement of Changes in Net Assets
|
||||
Year ended
May 31, 2025
|
Year ended
May 31, 2024
|
|||
Increase (Decrease) in Net Assets
|
||||
Operations
|
||||
Net investment income (loss)
|
$
|
531,612
|
$
|
425,134
|
Net realized gain (loss)
|
3,768,676
|
131,063
|
||
Change in net unrealized appreciation (depreciation)
|
6,661,970
|
3,058,893
|
||
Net increase (decrease) in net assets resulting from operations
|
10,962,258
|
3,615,090
|
||
Distributions to shareholders
|
(494,208)
|
(600,970)
|
||
Share transactions
|
||||
Proceeds from sales of shares
|
19,814,724
|
8,359,190
|
||
Reinvestment of distributions
|
-
|
249,235
|
||
Cost of shares redeemed
|
(13,260,059)
|
(19,873,274)
|
||
Net increase (decrease) in net assets resulting from share transactions
|
6,554,665
|
(11,264,849)
|
||
Total increase (decrease) in net assets
|
17,022,715
|
(8,250,729)
|
||
Net Assets
|
||||
Beginning of period
|
103,474,825
|
111,725,554
|
||
End of period
|
$
|
120,497,540
|
$
|
103,474,825
|
Other Information
|
||||
Shares
|
||||
Sold
|
700,000
|
323,637
|
||
Issued in reinvestment of distributions
|
-
|
9,878
|
||
Redeemed
|
(500,000)
|
(834,365)
|
||
Net increase (decrease)
|
200,000
|
(500,850)
|
||
See Organization and Reorganization Information note regarding reorganization during the prior fiscal year.
Share activity is further described in Organization and Reorganization Information notes, and amounts for the prior fiscal years have been adjusted to reflect the impact of the change in capital structure associated with the merger. All financial information prior to the merger is that of the Predecessor Fund.
Financial Highlights
Fidelity® Disruptive Automation ETF |
Years ended May 31,
|
2025
|
2024 A
|
2023 A
|
2022 A
|
2021 A
|
|||||
Selected Per-Share Data
|
||||||||||
Net asset value, beginning of period
|
$
|
25.83
|
$
|
24.80
|
$
|
22.33
|
$
|
27.34
|
$
|
17.80
|
Income from Investment Operations
|
||||||||||
Net investment income (loss) B,C
|
.14
|
.10
|
.05
|
(.09)
|
.02
|
|||||
Net realized and unrealized gain (loss)
|
2.81
|
1.07
|
2.42
|
(4.37)
|
9.60
|
|||||
Total from investment operations
|
2.95
|
1.17
|
2.47
|
(4.46)
|
9.62
|
|||||
Distributions from net investment income
|
(.13)
|
(.14)
|
-
|
-
|
(.06)
|
|||||
Distributions from net realized gain
|
-
|
-
|
-
|
(.55)
|
(.03)
|
|||||
Total distributions
|
(.13)
|
(.14)
|
-
|
(.55)
|
(.08) D
|
|||||
Net asset value, end of period
|
$
|
28.65
|
$
|
25.83
|
$
|
24.80
|
$
|
22.33
|
$
|
27.34
|
Total Return E,F
|
11.45 % |
4.76%
|
11.05%
|
(16.75)%
|
54.13%
|
|||||
Ratios to Average Net Assets C,G,H
|
||||||||||
Expenses before reductions
|
.50%
|
.51%
|
.85%
|
1.00%
|
1.01% I
|
|||||
Expenses net of fee waivers, if any
|
.50 % |
.51%
|
.85%
|
1.00%
|
1.01% I
|
|||||
Expenses net of all reductions, if any
|
.50%
|
.50%
|
.85%
|
1.00%
|
1.01% I
|
|||||
Net investment income (loss)
|
.52%
|
.40%
|
.23%
|
(.33)%
|
.06%
|
|||||
Supplemental Data
|
||||||||||
Net assets, end of period (000 omitted)
|
$
|
120,498
|
$
|
103,475
|
$
|
111,726
|
$
|
36,333
|
$
|
111,910
|
Portfolio turnover rate J
|
33 % K |
52% K
|
26% K
|
22%
|
14%
|
AAs further described in Organization and Reorganization information notes, per share amounts have been adjusted to reflect the impact of the change in capital structure associated with the reorganization. All financial information prior to the reorganization is that of the Predecessor Fund.
BCalculated based on average shares outstanding during the period.
CNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
DTotal distributions per share do not sum due to rounding.
ETotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
FBased on net asset value.
GFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
IThe size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
JAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs), derivatives or securities that mature within one year from acquisition.
KPortfolio turnover rate excludes securities received or delivered in-kind.
Fidelity® Disruptive Communications ETF
Schedule of Investments May 31, 2025
Showing Percentage of Net Assets
Common Stocks - 99.1%
|
|||
Shares
|
Value ($)
|
||
CANADA - 2.3%
|
|||
Communication Services - 2.3%
|
|||
Diversified Telecommunication Services - 2.3%
|
|||
Quebecor Inc Class B
|
55,320
|
1,556,385
|
|
CHINA - 5.6%
|
|||
Communication Services - 1.5%
|
|||
Interactive Media & Services - 1.5%
|
|||
Tencent Holdings Ltd
|
16,815
|
1,068,375
|
|
Consumer Discretionary - 4.1%
|
|||
Broadline Retail - 4.1%
|
|||
Alibaba Group Holding Ltd ADR
|
10,111
|
1,151,036
|
|
PDD Holdings Inc Class A ADR (a)
|
16,884
|
1,629,475
|
|
2,780,511
|
|||
TOTAL CHINA
|
3,848,886
|
||
INDIA - 1.3%
|
|||
Energy - 1.3%
|
|||
Oil, Gas & Consumable Fuels - 1.3%
|
|||
Reliance Industries Ltd GDR (b)
|
13,476
|
886,721
|
|
JAPAN - 0.5%
|
|||
Information Technology - 0.5%
|
|||
Semiconductors & Semiconductor Equipment - 0.5%
|
|||
Renesas Electronics Corp
|
31,890
|
395,147
|
|
KOREA (SOUTH) - 1.7%
|
|||
Communication Services - 1.7%
|
|||
Interactive Media & Services - 1.7%
|
|||
NAVER Corp
|
8,637
|
1,172,011
|
|
NETHERLANDS - 0.8%
|
|||
Information Technology - 0.8%
|
|||
Semiconductors & Semiconductor Equipment - 0.8%
|
|||
NXP Semiconductors NV
|
2,859
|
546,440
|
|
SINGAPORE - 7.2%
|
|||
Communication Services - 7.2%
|
|||
Entertainment - 7.2%
|
|||
Sea Ltd Class A ADR (a)
|
30,832
|
4,944,528
|
|
SPAIN - 2.5%
|
|||
Communication Services - 2.5%
|
|||
Diversified Telecommunication Services - 2.5%
|
|||
Cellnex Telecom SA (b)(c)
|
45,870
|
1,756,242
|
|
TAIWAN - 4.3%
|
|||
Information Technology - 4.3%
|
|||
Semiconductors & Semiconductor Equipment - 4.3%
|
|||
Taiwan Semiconductor Manufacturing Co Ltd ADR
|
15,333
|
2,964,176
|
|
UNITED STATES - 72.9%
|
|||
Communication Services - 33.7%
|
|||
Entertainment - 7.1%
|
|||
Netflix Inc (a)
|
1,648
|
1,989,515
|
|
Spotify Technology SA (a)
|
2,134
|
1,419,409
|
|
Take-Two Interactive Software Inc (a)
|
6,500
|
1,470,820
|
|
4,879,744
|
|||
Interactive Media & Services - 12.8%
|
|||
Alphabet Inc Class A
|
20,152
|
3,460,905
|
|
Meta Platforms Inc Class A
|
3,501
|
2,266,863
|
|
Pinterest Inc Class A (a)
|
55,744
|
1,734,196
|
|
Reddit Inc Class A (a)
|
12,200
|
1,370,670
|
|
8,832,634
|
|||
Media - 8.2%
|
|||
Comcast Corp Class A
|
32,976
|
1,139,980
|
|
EchoStar Corp Class A (a)
|
21,895
|
388,198
|
|
Liberty Broadband Corp Class A (a)
|
29,307
|
2,722,621
|
|
Magnite Inc (a)
|
87,000
|
1,423,320
|
|
5,674,119
|
|||
Wireless Telecommunication Services - 5.6%
|
|||
Gogo Inc (a)(d)
|
84,559
|
897,171
|
|
T-Mobile US Inc
|
12,257
|
2,968,645
|
|
3,865,816
|
|||
TOTAL COMMUNICATION SERVICES
|
23,252,313
|
||
Consumer Discretionary - 5.1%
|
|||
Broadline Retail - 5.1%
|
|||
Amazon.com Inc (a)
|
17,315
|
3,549,748
|
|
Industrials - 4.1%
|
|||
Construction & Engineering - 1.3%
|
|||
Dycom Industries Inc (a)
|
3,862
|
887,951
|
|
Ground Transportation - 2.8%
|
|||
Uber Technologies Inc (a)
|
22,876
|
1,925,244
|
|
TOTAL INDUSTRIALS
|
2,813,195
|
||
Information Technology - 25.1%
|
|||
Communications Equipment - 4.1%
|
|||
Arista Networks Inc
|
32,540
|
2,819,266
|
|
IT Services - 3.7%
|
|||
Cloudflare Inc Class A (a)
|
7,061
|
1,171,349
|
|
Twilio Inc Class A (a)
|
11,851
|
1,394,863
|
|
2,566,212
|
|||
Semiconductors & Semiconductor Equipment - 5.7%
|
|||
Impinj Inc (a)
|
4,083
|
465,829
|
|
NVIDIA Corp
|
25,514
|
3,447,707
|
|
3,913,536
|
|||
Software - 9.5%
|
|||
Cadence Design Systems Inc (a)
|
4,913
|
1,410,375
|
|
Docusign Inc (a)
|
8,975
|
795,275
|
|
Microsoft Corp
|
2,119
|
975,503
|
|
Samsara Inc Class A (a)
|
23,490
|
1,093,225
|
|
Servicenow Inc (a)
|
847
|
856,393
|
|
Synopsys Inc (a)
|
1,231
|
571,159
|
|
Zoom Communications Inc Class A (a)
|
10,797
|
877,256
|
|
6,579,186
|
|||
Technology Hardware, Storage & Peripherals - 2.1%
|
|||
Apple Inc
|
7,120
|
1,430,052
|
|
TOTAL INFORMATION TECHNOLOGY
|
17,308,252
|
||
Real Estate - 4.9%
|
|||
Specialized REITs - 4.9%
|
|||
American Tower Corp
|
15,799
|
3,391,255
|
|
TOTAL UNITED STATES
|
50,314,763
|
||
|
TOTAL COMMON STOCKS
(Cost $49,003,989)
|
68,385,299
|
||
Money Market Funds - 1.8%
|
||||
Yield (%)
|
Shares
|
Value ($)
|
||
Fidelity Cash Central Fund (e)
|
4.32
|
661,879
|
662,012
|
|
Fidelity Securities Lending Cash Central Fund (e)(f)
|
4.32
|
598,945
|
599,005
|
|
|
TOTAL MONEY MARKET FUNDS
(Cost $1,261,017)
|
1,261,017
|
|||
|
TOTAL INVESTMENT IN SECURITIES - 100.9%
(Cost $50,265,006)
|
69,646,316
|
NET OTHER ASSETS (LIABILITIES) - (0.9)%
|
(587,423)
|
NET ASSETS - 100.0%
|
69,058,893
|
Legend
(a)
|
Non-income producing
|
(b)
|
Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,642,963 or 3.8% of net assets.
|
(c)
|
Security exempt from registration under Regulation S of the Securities Act of 1933 and may be resold to qualified foreign investors outside of the United States. At the end of the period, the value of securities amounted to $1,756,242 or 2.5% of net assets.
|
(d)
|
Security or a portion of the security is on loan at period end.
|
(e)
|
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
|
(f)
|
Investment made with cash collateral received from securities on loan.
|
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate
|
Value,
beginning
of period ($)
|
Purchases ($)
|
Sales
Proceeds ($)
|
Dividend
Income ($)
|
Realized
Gain (loss) ($)
|
Change in
Unrealized
appreciation
(depreciation) ($)
|
Value,
end
of period ($)
|
Shares,
end
of period
|
% ownership,
end
of period
|
Fidelity Cash Central Fund
|
391,277
|
2,776,154
|
2,505,430
|
23,113
|
11
|
-
|
662,012
|
661,879
|
0.0%
|
Fidelity Securities Lending Cash Central Fund
|
-
|
9,148,573
|
8,549,568
|
260
|
-
|
-
|
599,005
|
598,945
|
0.0%
|
Total
|
391,277
|
11,924,727
|
11,054,998
|
23,373
|
11
|
-
|
1,261,017
|
||
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium income received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2025, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date:
|
||||
Description
|
Total ($)
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Investments in Securities:
|
||||
Common Stocks
|
||||
Communication Services
|
33,749,854
|
33,749,854
|
-
|
-
|
Consumer Discretionary
|
6,330,259
|
6,330,259
|
-
|
-
|
Energy
|
886,721
|
886,721
|
-
|
-
|
Industrials
|
2,813,195
|
2,813,195
|
-
|
-
|
Information Technology
|
21,214,015
|
21,214,015
|
-
|
-
|
Real Estate
|
3,391,255
|
3,391,255
|
-
|
-
|
Money Market Funds
|
1,261,017
|
1,261,017
|
-
|
-
|
Total Investments in Securities:
|
69,646,316
|
69,646,316
|
-
|
-
|
Fidelity® Disruptive Communications ETF
Financial Statements
Statement of Assets and Liabilities
|
||||
As of May 31, 2025
|
||||
Assets
|
||||
Investment in securities, at value (including securities loaned of $577,768) - See accompanying schedule:
|
||||
Unaffiliated issuers (cost $49,003,989)
|
$
|
68,385,299
|
||
Fidelity Central Funds (cost $1,261,017)
|
1,261,017
|
|||
Total Investment in Securities (cost $50,265,006)
|
$
|
69,646,316
|
||
Cash
|
1,854
|
|||
Foreign currency held at value (cost $9,863)
|
9,870
|
|||
Dividends receivable
|
25,482
|
|||
Distributions receivable from Fidelity Central Funds
|
2,444
|
|||
Other receivables
|
441
|
|||
Total assets
|
69,686,407
|
|||
Liabilities
|
||||
Accrued management fee
|
$
|
28,509
|
||
Collateral on securities loaned
|
599,005
|
|||
Total liabilities
|
627,514
|
|||
Net Assets
|
$
|
69,058,893
|
||
Net Assets consist of:
|
||||
Paid in capital
|
$
|
57,224,309
|
||
Total accumulated earnings (loss)
|
11,834,584
|
|||
Net Assets
|
$
|
69,058,893
|
||
Net Asset Value, offering price and redemption price per share ($69,058,893 ÷ 1,707,063 shares)
|
$
|
40.45
|
||
Statement of Operations
|
||||
|
Year ended May 31, 2025
|
||||
Investment Income
|
||||
Dividends
|
$
|
304,992
|
||
Income from Fidelity Central Funds (including $260 from security lending)
|
23,373
|
|||
Total income
|
328,365
|
|||
Expenses
|
||||
Management fee
|
$
|
287,145
|
||
Independent trustees' fees and expenses
|
235
|
|||
Total expenses before reductions
|
287,380
|
|||
Expense reductions
|
(193)
|
|||
Total expenses after reductions
|
287,187
|
|||
Net Investment income (loss)
|
41,178
|
|||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
664,497
|
|||
Redemptions in-kind
|
510,058
|
|||
Fidelity Central Funds
|
11
|
|||
Foreign currency transactions
|
(1,634)
|
|||
Total net realized gain (loss)
|
1,172,932
|
|||
Change in net unrealized appreciation (depreciation) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
8,398,443
|
|||
Assets and liabilities in foreign currencies
|
128
|
|||
Total change in net unrealized appreciation (depreciation)
|
8,398,571
|
|||
Net gain (loss)
|
9,571,503
|
|||
Net increase (decrease) in net assets resulting from operations
|
$
|
9,612,681
|
||
Statement of Changes in Net Assets
|
||||
Year ended
May 31, 2025
|
Year ended
May 31, 2024
|
|||
Increase (Decrease) in Net Assets
|
||||
Operations
|
||||
Net investment income (loss)
|
$
|
41,178
|
$
|
(56,473)
|
Net realized gain (loss)
|
1,172,932
|
2,695,971
|
||
Change in net unrealized appreciation (depreciation)
|
8,398,571
|
10,821,394
|
||
Net increase (decrease) in net assets resulting from operations
|
9,612,681
|
13,460,892
|
||
Distributions to shareholders
|
(39,184)
|
-
|
||
Share transactions
|
||||
Proceeds from sales of shares
|
12,035,863
|
6,157,751
|
||
Cost of shares redeemed
|
(3,545,746)
|
(6,604,379)
|
||
Net increase (decrease) in net assets resulting from share transactions
|
8,490,117
|
(446,628)
|
||
Total increase (decrease) in net assets
|
18,063,614
|
13,014,264
|
||
Net Assets
|
||||
Beginning of period
|
50,995,279
|
37,981,015
|
||
End of period
|
$
|
69,058,893
|
$
|
50,995,279
|
Other Information
|
||||
Shares
|
||||
Sold
|
300,000
|
203,661
|
||
Redeemed
|
(100,000)
|
(251,280)
|
||
Net increase (decrease)
|
200,000
|
(47,619)
|
||
See Organization and Reorganization Information note regarding reorganization during the prior fiscal year.
Share activity is further described in Organization and Reorganization Information notes, and amounts for the prior fiscal years have been adjusted to reflect the impact of the change in capital structure associated with the merger. All financial information prior to the merger is that of the Predecessor Fund.
Financial Highlights
Fidelity® Disruptive Communications ETF |
Years ended May 31,
|
2025
|
2024 A
|
2023 A
|
2022 A
|
2021 A
|
|||||
Selected Per-Share Data
|
||||||||||
Net asset value, beginning of period
|
$
|
33.84
|
$
|
24.44
|
$
|
23.29
|
$
|
34.12
|
$
|
23.21
|
Income from Investment Operations
|
||||||||||
Net investment income (loss) B,C
|
.03
|
(.04)
|
(.10) D
|
(.26)
|
(.26)
|
|||||
Net realized and unrealized gain (loss)
|
6.61
|
9.44
|
1.25
|
(8.93)
|
11.59
|
|||||
Total from investment operations
|
6.64
|
9.40
|
1.15
|
(9.19)
|
11.33
|
|||||
Distributions from net investment income
|
(.03)
|
-
|
-
|
-
|
- E
|
|||||
Distributions from net realized gain
|
-
|
-
|
-
|
(1.64)
|
(.41)
|
|||||
Total distributions
|
(.03)
|
-
|
-
|
(1.64)
|
(.42) F
|
|||||
Net asset value, end of period
|
$
|
40.45
|
$
|
33.84
|
$
|
24.44
|
$
|
23.29
|
$
|
34.12
|
Total Return G,H
|
19.63 % |
38.49%
|
4.91%
|
(28.39)%
|
48.96%
|
|||||
Ratios to Average Net Assets C,I,J
|
||||||||||
Expenses before reductions
|
.50%
|
.51%
|
.79%
|
.99% K
|
1.01% K
|
|||||
Expenses net of fee waivers, if any
|
.50 % |
.50%
|
.79%
|
.99% K
|
1.01% K
|
|||||
Expenses net of all reductions, if any
|
.50%
|
.50%
|
.79%
|
.99% K
|
1.01% K
|
|||||
Net investment income (loss)
|
.07%
|
(.14)%
|
(.44)% D
|
(.81)%
|
(.83)%
|
|||||
Supplemental Data
|
||||||||||
Net assets, end of period (000 omitted)
|
$
|
69,059
|
$
|
50,995
|
$
|
37,981
|
$
|
7,746
|
$
|
36,731
|
Portfolio turnover rate L
|
23 % M |
35% M
|
31%
|
32%
|
39%
|
AAs further described in Organization and Reorganization information notes, per share amounts have been adjusted to reflect the impact of the change in capital structure associated with the reorganization. All financial information prior to the reorganization is that of the Predecessor Fund.
BCalculated based on average shares outstanding during the period.
CNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
DNet investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.02 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.53)%.
EAmount represents less than $.005 per share.
FTotal distributions per share do not sum due to rounding.
GTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
HBased on net asset value.
IFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
JExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
KThe size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
LAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs), derivatives or securities that mature within one year from acquisition.
MPortfolio turnover rate excludes securities received or delivered in-kind.
Fidelity® Disruptive Finance ETF
Schedule of Investments May 31, 2025
Showing Percentage of Net Assets
Common Stocks - 97.6%
|
|||
Shares
|
Value ($)
|
||
BRAZIL - 2.4%
|
|||
Consumer Discretionary - 1.1%
|
|||
Broadline Retail - 1.1%
|
|||
MercadoLibre Inc (a)
|
228
|
584,430
|
|
Financials - 1.3%
|
|||
Banks - 1.3%
|
|||
NU Holdings Ltd/Cayman Islands Class A (a)
|
57,978
|
696,316
|
|
TOTAL BRAZIL
|
1,280,746
|
||
ITALY - 3.1%
|
|||
Financials - 3.1%
|
|||
Banks - 3.1%
|
|||
FinecoBank Banca Fineco SpA
|
77,365
|
1,670,795
|
|
NETHERLANDS - 5.3%
|
|||
Financials - 5.3%
|
|||
Financial Services - 5.3%
|
|||
Adyen NV (a)(b)(c)
|
1,478
|
2,835,478
|
|
NORWAY - 1.6%
|
|||
Financials - 1.6%
|
|||
Banks - 1.6%
|
|||
DNB Bank ASA
|
34,105
|
913,151
|
|
SINGAPORE - 3.5%
|
|||
Financials - 3.5%
|
|||
Banks - 3.5%
|
|||
DBS Group Holdings Ltd
|
53,763
|
1,864,145
|
|
SPAIN - 3.0%
|
|||
Financials - 3.0%
|
|||
Banks - 3.0%
|
|||
Bankinter SA
|
123,337
|
1,588,088
|
|
UNITED KINGDOM - 9.4%
|
|||
Financials - 9.4%
|
|||
Capital Markets - 3.0%
|
|||
London Stock Exchange Group PLC
|
10,750
|
1,633,072
|
|
Financial Services - 2.5%
|
|||
Wise PLC Class A (a)
|
92,209
|
1,365,373
|
|
Insurance - 3.9%
|
|||
Beazley PLC
|
58,579
|
744,671
|
|
Hiscox Ltd
|
77,337
|
1,313,963
|
|
2,058,634
|
|||
TOTAL UNITED KINGDOM
|
5,057,079
|
||
UNITED STATES - 69.3%
|
|||
Financials - 59.9%
|
|||
Banks - 0.9%
|
|||
Pathward Financial Inc
|
6,368
|
497,022
|
|
Capital Markets - 17.2%
|
|||
Ares Management Corp Class A
|
4,236
|
701,058
|
|
Blackrock Inc
|
2,530
|
2,479,122
|
|
Blue Owl Capital Inc Class A
|
48,307
|
902,375
|
|
Cboe Global Markets Inc
|
3,949
|
904,795
|
|
Intercontinental Exchange Inc
|
9,864
|
1,773,547
|
|
MarketAxess Holdings Inc
|
2,320
|
502,070
|
|
MSCI Inc
|
929
|
523,975
|
|
Tradeweb Markets Inc Class A
|
6,111
|
882,734
|
|
Virtu Financial Inc Class A
|
15,015
|
603,453
|
|
9,273,129
|
|||
Consumer Finance - 6.3%
|
|||
Ally Financial Inc
|
18,098
|
633,430
|
|
Capital One Financial Corp
|
14,636
|
2,768,399
|
|
3,401,829
|
|||
Financial Services - 33.9%
|
|||
Affirm Holdings Inc Class A (a)
|
11,954
|
620,413
|
|
Apollo Global Management Inc
|
17,120
|
2,237,413
|
|
AvidXchange Holdings Inc (a)
|
251,152
|
2,458,778
|
|
Block Inc Class A (a)
|
35,754
|
2,207,810
|
|
Corpay Inc (a)
|
2,041
|
663,550
|
|
Fiserv Inc (a)
|
4,629
|
753,555
|
|
Mastercard Inc Class A
|
5,928
|
3,471,437
|
|
PennyMac Financial Services Inc
|
5,060
|
485,760
|
|
Toast Inc Class A (a)
|
37,381
|
1,576,731
|
|
UWM Holdings Corp Class A
|
78,983
|
339,626
|
|
Visa Inc Class A
|
9,252
|
3,378,738
|
|
18,193,811
|
|||
Insurance - 1.6%
|
|||
Baldwin Insurance Group Inc/The Class A (a)(d)
|
22,065
|
850,164
|
|
TOTAL FINANCIALS
|
32,215,955
|
||
Industrials - 6.2%
|
|||
Professional Services - 6.2%
|
|||
Equifax Inc
|
10,191
|
2,692,361
|
|
Verisk Analytics Inc
|
2,053
|
644,929
|
|
3,337,290
|
|||
Information Technology - 2.4%
|
|||
Software - 2.4%
|
|||
BILL Holdings Inc (a)(d)
|
6,348
|
277,280
|
|
MicroStrategy Inc Class A (a)(d)
|
2,694
|
994,248
|
|
1,271,528
|
|||
Real Estate - 0.8%
|
|||
Residential REITs - 0.8%
|
|||
American Homes 4 Rent Class A
|
12,818
|
485,161
|
|
TOTAL UNITED STATES
|
37,309,934
|
||
|
TOTAL COMMON STOCKS
(Cost $36,836,369)
|
52,519,416
|
||
Money Market Funds - 4.3%
|
||||
Yield (%)
|
Shares
|
Value ($)
|
||
Fidelity Cash Central Fund (e)
|
4.32
|
1,253,779
|
1,254,030
|
|
Fidelity Securities Lending Cash Central Fund (e)(f)
|
4.32
|
1,075,392
|
1,075,500
|
|
|
TOTAL MONEY MARKET FUNDS
(Cost $2,329,530)
|
2,329,530
|
|||
|
TOTAL INVESTMENT IN SECURITIES - 101.9%
(Cost $39,165,899)
|
54,848,946
|
NET OTHER ASSETS (LIABILITIES) - (1.9)%
|
(1,044,825)
|
NET ASSETS - 100.0%
|
53,804,121
|
Legend
(a)
|
Non-income producing
|
(b)
|
Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the end of the period, the value of these securities amounted to $2,835,478 or 5.3% of net assets.
|
(c)
|
Security exempt from registration under Regulation S of the Securities Act of 1933 and may be resold to qualified foreign investors outside of the United States. At the end of the period, the value of securities amounted to $2,835,478 or 5.3% of net assets.
|
(d)
|
Security or a portion of the security is on loan at period end.
|
(e)
|
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
|
(f)
|
Investment made with cash collateral received from securities on loan.
|
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate
|
Value,
beginning
of period ($)
|
Purchases ($)
|
Sales
Proceeds ($)
|
Dividend
Income ($)
|
Realized
Gain (loss) ($)
|
Change in
Unrealized
appreciation
(depreciation) ($)
|
Value,
end
of period ($)
|
Shares,
end
of period
|
% ownership,
end
of period
|
Fidelity Cash Central Fund
|
84,627
|
3,837,961
|
2,668,559
|
16,106
|
1
|
-
|
1,254,030
|
1,253,779
|
0.0%
|
Fidelity Securities Lending Cash Central Fund
|
1,661,325
|
31,341,766
|
31,927,591
|
7,372
|
-
|
-
|
1,075,500
|
1,075,392
|
0.0%
|
Total
|
1,745,952
|
35,179,727
|
34,596,150
|
23,478
|
1
|
-
|
2,329,530
|
||
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium income received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2025, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date:
|
||||
Description
|
Total ($)
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Investments in Securities:
|
||||
Common Stocks
|
||||
Consumer Discretionary
|
584,430
|
584,430
|
-
|
-
|
Financials
|
46,841,007
|
46,841,007
|
-
|
-
|
Industrials
|
3,337,290
|
3,337,290
|
-
|
-
|
Information Technology
|
1,271,528
|
1,271,528
|
-
|
-
|
Real Estate
|
485,161
|
485,161
|
-
|
-
|
Money Market Funds
|
2,329,530
|
2,329,530
|
-
|
-
|
Total Investments in Securities:
|
54,848,946
|
54,848,946
|
-
|
-
|
Fidelity® Disruptive Finance ETF
Financial Statements
Statement of Assets and Liabilities
|
||||
As of May 31, 2025
|
||||
Assets
|
||||
Investment in securities, at value (including securities loaned of $1,050,338) - See accompanying schedule:
|
||||
Unaffiliated issuers (cost $36,836,369)
|
$
|
52,519,416
|
||
Fidelity Central Funds (cost $2,329,530)
|
2,329,530
|
|||
Total Investment in Securities (cost $39,165,899)
|
$
|
54,848,946
|
||
Dividends receivable
|
48,373
|
|||
Distributions receivable from Fidelity Central Funds
|
3,457
|
|||
Other receivables
|
153
|
|||
Total assets
|
54,900,929
|
|||
Liabilities
|
||||
Accrued management fee
|
$
|
21,308
|
||
Collateral on securities loaned
|
1,075,500
|
|||
Total liabilities
|
1,096,808
|
|||
Net Assets
|
$
|
53,804,121
|
||
Net Assets consist of:
|
||||
Paid in capital
|
$
|
46,481,790
|
||
Total accumulated earnings (loss)
|
7,322,331
|
|||
Net Assets
|
$
|
53,804,121
|
||
Net Asset Value, offering price and redemption price per share ($53,804,121 ÷ 1,444,580 shares)
|
$
|
37.25
|
||
Statement of Operations
|
||||
|
Year ended May 31, 2025
|
||||
Investment Income
|
||||
Dividends
|
$
|
525,765
|
||
Income from Fidelity Central Funds (including $7,372 from security lending)
|
23,478
|
|||
Total income
|
549,243
|
|||
Expenses
|
||||
Management fee
|
$
|
227,720
|
||
Independent trustees' fees and expenses
|
193
|
|||
Total expenses before reductions
|
227,913
|
|||
Expense reductions
|
(454)
|
|||
Total expenses after reductions
|
227,459
|
|||
Net Investment income (loss)
|
321,784
|
|||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
(1,771,849)
|
|||
Redemptions in-kind
|
1,480,244
|
|||
Fidelity Central Funds
|
1
|
|||
Foreign currency transactions
|
(1,004)
|
|||
Total net realized gain (loss)
|
(292,608)
|
|||
Change in net unrealized appreciation (depreciation) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
9,608,591
|
|||
Assets and liabilities in foreign currencies
|
(106)
|
|||
Total change in net unrealized appreciation (depreciation)
|
9,608,485
|
|||
Net gain (loss)
|
9,315,877
|
|||
Net increase (decrease) in net assets resulting from operations
|
$
|
9,637,661
|
||
Statement of Changes in Net Assets
|
||||
Year ended
May 31, 2025
|
Year ended
May 31, 2024
|
|||
Increase (Decrease) in Net Assets
|
||||
Operations
|
||||
Net investment income (loss)
|
$
|
321,784
|
$
|
358,033
|
Net realized gain (loss)
|
(292,608)
|
2,755,028
|
||
Change in net unrealized appreciation (depreciation)
|
9,608,485
|
5,959,154
|
||
Net increase (decrease) in net assets resulting from operations
|
9,637,661
|
9,072,215
|
||
Distributions to shareholders
|
(352,658)
|
(404,620)
|
||
Share transactions
|
||||
Proceeds from sales of shares
|
7,537,055
|
2,694,257
|
||
Reinvestment of distributions
|
-
|
224,111
|
||
Cost of shares redeemed
|
(6,231,005)
|
(9,192,595)
|
||
Net increase (decrease) in net assets resulting from share transactions
|
1,306,050
|
(6,274,227)
|
||
Total increase (decrease) in net assets
|
10,591,053
|
2,393,368
|
||
Net Assets
|
||||
Beginning of period
|
43,213,068
|
40,819,700
|
||
End of period
|
$
|
53,804,121
|
$
|
43,213,068
|
Other Information
|
||||
Shares
|
||||
Sold
|
200,000
|
100,156
|
||
Issued in reinvestment of distributions
|
-
|
9,007
|
||
Redeemed
|
(200,000)
|
(349,456)
|
||
Net increase (decrease)
|
-
|
(240,293)
|
||
See Organization and Reorganization Information note regarding reorganization during the prior fiscal year.
Share activity is further described in Organization and Reorganization Information notes, and amounts for the prior fiscal years have been adjusted to reflect the impact of the change in capital structure associated with the merger. All financial information prior to the merger is that of the Predecessor Fund.
Financial Highlights
Fidelity® Disruptive Finance ETF |
Years ended May 31,
|
2025
|
2024 A
|
2023 A
|
2022 A
|
2021 A
|
|||||
Selected Per-Share Data
|
||||||||||
Net asset value, beginning of period
|
$
|
29.91
|
$
|
24.23
|
$
|
29.04
|
$
|
34.73
|
$
|
22.63
|
Income from Investment Operations
|
||||||||||
Net investment income (loss) B,C
|
.24
|
.23
|
.12
|
.04
|
.21 D
|
|||||
Net realized and unrealized gain (loss)
|
7.37
|
5.70
|
(3.38)
|
(5.10)
|
12.24
|
|||||
Total from investment operations
|
7.61
|
5.93
|
(3.26)
|
(5.06)
|
12.45
|
|||||
Distributions from net investment income
|
(.27)
|
(.25)
|
-
|
(.08)
|
(.10)
|
|||||
Distributions from net realized gain
|
-
|
-
|
(1.55)
|
(.55)
|
(.25)
|
|||||
Total distributions
|
(.27)
|
(.25)
|
(1.55)
|
(.63)
|
(.35)
|
|||||
Net asset value, end of period
|
$
|
37.25
|
$
|
29.91
|
$
|
24.23
|
$
|
29.04
|
$
|
34.73
|
Total Return E,F
|
25.56 % |
24.62%
|
(11.46)%
|
(14.88)%
|
55.31%
|
|||||
Ratios to Average Net Assets B,G,H
|
||||||||||
Expenses before reductions
|
.50%
|
.51%
|
.86%
|
1.00%
|
1.01% I
|
|||||
Expenses net of fee waivers, if any
|
.50 % |
.50%
|
.86%
|
1.00%
|
1.01% I
|
|||||
Expenses net of all reductions, if any
|
.50%
|
.50%
|
.86%
|
1.00%
|
1.01% I
|
|||||
Net investment income (loss)
|
.71%
|
.84%
|
.48%
|
.12%
|
.72% D
|
|||||
Supplemental Data
|
||||||||||
Net assets, end of period (000 omitted)
|
$
|
53,804
|
$
|
43,213
|
$
|
40,820
|
$
|
18,486
|
$
|
48,219
|
Portfolio turnover rate J
|
22 % K |
34% K
|
22%
|
43%
|
18%
|
AAs further described in Organization and Reorganization information notes, per share amounts have been adjusted to reflect the impact of the change in capital structure associated with the reorganization. All financial information prior to the reorganization is that of the Predecessor Fund.
BNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
CCalculated based on average shares outstanding during the period.
DNet investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.08 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been .49%.
EBased on net asset value.
FTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
GFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
IThe size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
JAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs), derivatives or securities that mature within one year from acquisition.
KPortfolio turnover rate excludes securities received or delivered in-kind.
Fidelity® Disruptive Medicine ETF
Schedule of Investments May 31, 2025
Showing Percentage of Net Assets
Common Stocks - 99.4%
|
|||
Shares
|
Value ($)
|
||
BELGIUM - 2.7%
|
|||
Health Care - 2.7%
|
|||
Pharmaceuticals - 2.7%
|
|||
UCB SA
|
7,373
|
1,338,630
|
|
CANADA - 0.9%
|
|||
Health Care - 0.9%
|
|||
Biotechnology - 0.9%
|
|||
Xenon Pharmaceuticals Inc (a)
|
15,469
|
446,281
|
|
CHINA - 1.3%
|
|||
Health Care - 1.3%
|
|||
Biotechnology - 1.3%
|
|||
Zai Lab Ltd ADR (a)
|
21,715
|
654,490
|
|
DENMARK - 1.3%
|
|||
Health Care - 1.3%
|
|||
Biotechnology - 1.3%
|
|||
Ascendis Pharma A/S ADR (a)
|
3,865
|
629,377
|
|
FRANCE - 2.2%
|
|||
Health Care - 2.2%
|
|||
Life Sciences Tools & Services - 2.2%
|
|||
Sartorius Stedim Biotech
|
4,896
|
1,078,478
|
|
GERMANY - 0.3%
|
|||
Health Care - 0.3%
|
|||
Biotechnology - 0.3%
|
|||
BioNTech SE ADR (a)
|
2,000
|
191,620
|
|
NETHERLANDS - 5.4%
|
|||
Health Care - 5.4%
|
|||
Biotechnology - 5.4%
|
|||
Argenx SE ADR (a)
|
3,016
|
1,728,952
|
|
Merus NV (a)
|
14,000
|
784,980
|
|
Newamsterdam Pharma Co NV (a)(b)
|
9,400
|
170,234
|
|
TOTAL NETHERLANDS
|
2,684,166
|
||
SWITZERLAND - 1.5%
|
|||
Health Care - 1.5%
|
|||
Life Sciences Tools & Services - 1.5%
|
|||
Lonza Group AG
|
1,063
|
735,188
|
|
UNITED STATES - 83.8%
|
|||
Health Care - 83.8%
|
|||
Biotechnology - 20.9%
|
|||
Alnylam Pharmaceuticals Inc (a)
|
6,038
|
1,838,933
|
|
Arcellx Inc (a)
|
2,464
|
152,916
|
|
Cogent Biosciences Inc (a)
|
29,200
|
158,848
|
|
Crinetics Pharmaceuticals Inc (a)(b)
|
19,000
|
579,690
|
|
Cytokinetics Inc (a)(b)
|
11,735
|
364,020
|
|
Day One Biopharmaceuticals Inc (a)(b)
|
20,300
|
129,513
|
|
Denali Therapeutics Inc (a)
|
13,900
|
184,036
|
|
Disc Medicine Inc (a)
|
3,900
|
182,052
|
|
Dyne Therapeutics Inc (a)(b)
|
27,200
|
325,312
|
|
Exact Sciences Corp (a)
|
30,936
|
1,741,078
|
|
Immunovant Inc (a)(b)
|
11,100
|
164,835
|
|
Janux Therapeutics Inc (a)
|
14,042
|
334,200
|
|
Kymera Therapeutics Inc (a)
|
6,900
|
204,516
|
|
Legend Biotech Corp ADR (a)
|
40,059
|
1,159,708
|
|
MoonLake Immunotherapeutics Class A (a)(b)
|
11,600
|
452,516
|
|
Natera Inc (a)
|
1,927
|
303,946
|
|
Nurix Therapeutics Inc (a)
|
12,700
|
135,001
|
|
Regeneron Pharmaceuticals Inc
|
2,000
|
980,560
|
|
Stoke Therapeutics Inc (a)(b)
|
28,200
|
269,028
|
|
Vaxcyte Inc (a)(b)
|
9,385
|
304,919
|
|
Veracyte Inc (a)
|
14,700
|
391,167
|
|
10,356,794
|
|||
Health Care Equipment & Supplies - 36.9%
|
|||
Align Technology Inc (a)
|
2,645
|
478,586
|
|
Boston Scientific Corp (a)
|
30,000
|
3,157,800
|
|
Dexcom Inc (a)
|
13,207
|
1,133,161
|
|
Edwards Lifesciences Corp (a)
|
16,129
|
1,261,610
|
|
Glaukos Corp (a)
|
5,900
|
556,311
|
|
Inspire Medical Systems Inc (a)(b)
|
6,624
|
915,437
|
|
Insulet Corp (a)
|
6,413
|
2,084,417
|
|
Intuitive Surgical Inc (a)
|
3,400
|
1,877,956
|
|
iRhythm Technologies Inc (a)
|
2,803
|
393,822
|
|
Kestra Medical Technologies Ltd
|
15,600
|
351,312
|
|
Masimo Corp (a)
|
7,488
|
1,216,800
|
|
Outset Medical Inc (a)
|
15,418
|
270,894
|
|
Penumbra Inc (a)
|
6,186
|
1,651,476
|
|
PROCEPT BioRobotics Corp (a)(b)
|
9,900
|
574,200
|
|
ResMed Inc
|
3,044
|
745,141
|
|
Stryker Corp
|
3,272
|
1,251,998
|
|
Tandem Diabetes Care Inc (a)(b)
|
18,678
|
370,198
|
|
18,291,119
|
|||
Health Care Providers & Services - 8.3%
|
|||
agilon health Inc (a)
|
283,494
|
629,357
|
|
Astrana Health Inc (a)(b)
|
12,500
|
309,875
|
|
LifeStance Health Group Inc (a)
|
183,746
|
1,091,451
|
|
Privia Health Group Inc (a)
|
33,946
|
772,611
|
|
UnitedHealth Group Inc
|
4,277
|
1,291,269
|
|
4,094,563
|
|||
Health Care Technology - 9.5%
|
|||
Doximity Inc Class A (a)
|
11,973
|
623,674
|
|
Phreesia Inc (a)
|
24,534
|
600,837
|
|
Veeva Systems Inc Class A (a)
|
6,381
|
1,784,766
|
|
Waystar Holding Corp (a)
|
42,048
|
1,681,079
|
|
4,690,356
|
|||
Life Sciences Tools & Services - 6.2%
|
|||
Bruker Corp
|
10,463
|
383,992
|
|
Danaher Corp
|
8,686
|
1,649,471
|
|
Thermo Fisher Scientific Inc
|
1,807
|
727,896
|
|
West Pharmaceutical Services Inc
|
1,620
|
341,577
|
|
3,102,936
|
|||
Pharmaceuticals - 2.0%
|
|||
Eli Lilly & Co
|
1,213
|
894,794
|
|
Structure Therapeutics Inc ADR (a)
|
6,300
|
137,088
|
|
1,031,882
|
|||
TOTAL UNITED STATES
|
41,567,650
|
||
|
TOTAL COMMON STOCKS
(Cost $44,071,529)
|
49,325,880
|
||
Money Market Funds - 6.1%
|
||||
Yield (%)
|
Shares
|
Value ($)
|
||
Fidelity Cash Central Fund (c)
|
4.32
|
315,996
|
316,059
|
|
Fidelity Securities Lending Cash Central Fund (c)(d)
|
4.32
|
2,690,999
|
2,691,268
|
|
|
TOTAL MONEY MARKET FUNDS
(Cost $3,007,327)
|
3,007,327
|
|||
|
TOTAL INVESTMENT IN SECURITIES - 105.5%
(Cost $47,078,856)
|
52,333,207
|
NET OTHER ASSETS (LIABILITIES) - (5.5)%
|
(2,724,181)
|
NET ASSETS - 100.0%
|
49,609,026
|
Legend
(a)
|
Non-income producing
|
(b)
|
Security or a portion of the security is on loan at period end.
|
(c)
|
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
|
(d)
|
Investment made with cash collateral received from securities on loan.
|
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate
|
Value,
beginning
of period ($)
|
Purchases ($)
|
Sales
Proceeds ($)
|
Dividend
Income ($)
|
Realized
Gain (loss) ($)
|
Change in
Unrealized
appreciation
(depreciation) ($)
|
Value,
end
of period ($)
|
Shares,
end
of period
|
% ownership,
end
of period
|
Fidelity Cash Central Fund
|
460,863
|
5,834,221
|
5,979,026
|
16,245
|
1
|
-
|
316,059
|
315,996
|
0.0%
|
Fidelity Securities Lending Cash Central Fund
|
3,522,700
|
42,595,919
|
43,427,351
|
1,928
|
-
|
-
|
2,691,268
|
2,690,999
|
0.0%
|
Total
|
3,983,563
|
48,430,140
|
49,406,377
|
18,173
|
1
|
-
|
3,007,327
|
||
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium income received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2025, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date:
|
||||
Description
|
Total ($)
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Investments in Securities:
|
||||
Common Stocks
|
||||
Health Care
|
49,325,880
|
49,325,880
|
-
|
-
|
Money Market Funds
|
3,007,327
|
3,007,327
|
-
|
-
|
Total Investments in Securities:
|
52,333,207
|
52,333,207
|
-
|
-
|
Fidelity® Disruptive Medicine ETF
Financial Statements
Statement of Assets and Liabilities
|
||||
As of May 31, 2025
|
||||
Assets
|
||||
Investment in securities, at value (including securities loaned of $2,613,619) - See accompanying schedule:
|
||||
Unaffiliated issuers (cost $44,071,529)
|
$
|
49,325,880
|
||
Fidelity Central Funds (cost $3,007,327)
|
3,007,327
|
|||
Total Investment in Securities (cost $47,078,856)
|
$
|
52,333,207
|
||
Cash
|
8,381
|
|||
Dividends receivable
|
26,331
|
|||
Distributions receivable from Fidelity Central Funds
|
1,648
|
|||
Other receivables
|
4,354
|
|||
Total assets
|
52,373,921
|
|||
Liabilities
|
||||
Payable for investments purchased
|
$
|
52,839
|
||
Accrued management fee
|
20,788
|
|||
Collateral on securities loaned
|
2,691,268
|
|||
Total liabilities
|
2,764,895
|
|||
Net Assets
|
$
|
49,609,026
|
||
Net Assets consist of:
|
||||
Paid in capital
|
$
|
58,686,050
|
||
Total accumulated earnings (loss)
|
(9,077,024)
|
|||
Net Assets
|
$
|
49,609,026
|
||
Net Asset Value, offering price and redemption price per share ($49,609,026 ÷ 2,123,806 shares)
|
$
|
23.36
|
||
Statement of Operations
|
||||
|
Year ended May 31, 2025
|
||||
Investment Income
|
||||
Dividends
|
$
|
117,435
|
||
Foreign Tax Reclaims
|
11,210
|
|||
Income from Fidelity Central Funds (including $1,928 from security lending)
|
18,173
|
|||
Income before foreign taxes withheld
|
$
|
146,818
|
||
Less foreign taxes withheld
|
(5,282)
|
|||
Total income
|
141,536
|
|||
Expenses
|
||||
Management fee
|
$
|
265,017
|
||
Independent trustees' fees and expenses
|
229
|
|||
Total expenses before reductions
|
265,246
|
|||
Expense reductions
|
(325)
|
|||
Total expenses after reductions
|
264,921
|
|||
Net Investment income (loss)
|
(123,385)
|
|||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
(2,830,964)
|
|||
Fidelity Central Funds
|
1
|
|||
Foreign currency transactions
|
(103)
|
|||
Total net realized gain (loss)
|
(2,831,066)
|
|||
Change in net unrealized appreciation (depreciation) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
2,877,942
|
|||
Assets and liabilities in foreign currencies
|
402
|
|||
Total change in net unrealized appreciation (depreciation)
|
2,878,344
|
|||
Net gain (loss)
|
47,278
|
|||
Net increase (decrease) in net assets resulting from operations
|
$
|
(76,107)
|
||
Statement of Changes in Net Assets
|
||||
Year ended
May 31, 2025
|
Year ended
May 31, 2024
|
|||
Increase (Decrease) in Net Assets
|
||||
Operations
|
||||
Net investment income (loss)
|
$
|
(123,385)
|
$
|
(68,700)
|
Net realized gain (loss)
|
(2,831,066)
|
(373,863)
|
||
Change in net unrealized appreciation (depreciation)
|
2,878,344
|
(672,987)
|
||
Net increase (decrease) in net assets resulting from operations
|
(76,107)
|
(1,115,550)
|
||
Distributions to shareholders
|
(239,990)
|
-
|
||
Share transactions
|
||||
Proceeds from sales of shares
|
-
|
11,592,851
|
||
Cost of shares redeemed
|
-
|
(3,749,043)
|
||
Net increase (decrease) in net assets resulting from share transactions
|
-
|
7,843,808
|
||
Total increase (decrease) in net assets
|
(316,097)
|
6,728,258
|
||
Net Assets
|
||||
Beginning of period
|
49,925,123
|
43,196,865
|
||
End of period
|
$
|
49,609,026
|
$
|
49,925,123
|
Other Information
|
||||
Shares
|
||||
Sold
|
-
|
500,368
|
||
Redeemed
|
-
|
(149,500)
|
||
Net increase (decrease)
|
-
|
350,868
|
||
See Organization and Reorganization Information note regarding reorganization during the prior fiscal year.
Share activity is further described in Organization and Reorganization Information notes, and amounts for the prior fiscal years have been adjusted to reflect the impact of the change in capital structure associated with the merger. All financial information prior to the merger is that of the Predecessor Fund.
Financial Highlights
Fidelity® Disruptive Medicine ETF |
Years ended May 31,
|
2025
|
2024 A
|
2023 A
|
2022 A
|
2021 A
|
|||||
Selected Per-Share Data
|
||||||||||
Net asset value, beginning of period
|
$
|
23.51
|
$
|
24.36
|
$
|
22.08
|
$
|
28.82
|
$
|
24.52
|
Income from Investment Operations
|
||||||||||
Net investment income (loss) B,C
|
(.06)
|
(.03)
|
(.11)
|
(.20)
|
(.16)
|
|||||
Net realized and unrealized gain (loss)
|
.02
|
(.82)
|
2.39
|
(6.25)
|
4.66
|
|||||
Total from investment operations
|
(.04)
|
(.85)
|
2.28
|
(6.45)
|
4.50
|
|||||
Distributions from net investment income
|
(.11)
|
-
|
-
|
-
|
-
|
|||||
Distributions from net realized gain
|
-
|
-
|
-
|
(.29)
|
(.20)
|
|||||
Total distributions
|
(.11)
|
-
|
-
|
(.29)
|
(.20)
|
|||||
Net asset value, end of period
|
$
|
23.36
|
$
|
23.51
|
$
|
24.36
|
$
|
22.08
|
$
|
28.82
|
Total Return D,E
|
(.19) % |
(3.50)%
|
10.34%
|
(22.68)%
|
18.44%
|
|||||
Ratios to Average Net Assets C,F,G
|
||||||||||
Expenses before reductions
|
.50%
|
.51%
|
.84%
|
1.00%
|
1.01% H
|
|||||
Expenses net of fee waivers, if any
|
.50 % |
.50%
|
.84%
|
1.00%
|
1.01% H
|
|||||
Expenses net of all reductions, if any
|
.50%
|
.50%
|
.84%
|
1.00%
|
1.01% H
|
|||||
Net investment income (loss)
|
(.23)%
|
(.14)%
|
(.51)%
|
(.70)%
|
(.58)%
|
|||||
Supplemental Data
|
||||||||||
Net assets, end of period (000 omitted)
|
$
|
49,609
|
$
|
49,925
|
$
|
43,197
|
$
|
11,027
|
$
|
32,331
|
Portfolio turnover rate I
|
30 % |
33% J
|
39%
|
47%
|
44%
|
AAs further described in Organization and Reorganization information notes, per share amounts have been adjusted to reflect the impact of the change in capital structure associated with the reorganization. All financial information prior to the reorganization is that of the Predecessor Fund.
BCalculated based on average shares outstanding during the period.
CNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
DTotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
EBased on net asset value.
FFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
GExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
HThe size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
IAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs), derivatives or securities that mature within one year from acquisition.
JPortfolio turnover rate excludes securities received or delivered in-kind.
Fidelity® Disruptive Technology ETF
Schedule of Investments May 31, 2025
Showing Percentage of Net Assets
Common Stocks - 98.1%
|
|||
Shares
|
Value ($)
|
||
AUSTRALIA - 1.5%
|
|||
Information Technology - 1.5%
|
|||
Software - 1.5%
|
|||
WiseTech Global Ltd
|
36,012
|
2,487,309
|
|
CANADA - 2.1%
|
|||
Information Technology - 2.1%
|
|||
IT Services - 2.1%
|
|||
Shopify Inc Class A (United States) (a)
|
33,541
|
3,596,266
|
|
CHINA - 1.4%
|
|||
Consumer Discretionary - 1.4%
|
|||
Broadline Retail - 1.4%
|
|||
PDD Holdings Inc Class A ADR (a)
|
24,220
|
2,337,472
|
|
GERMANY - 3.3%
|
|||
Information Technology - 3.3%
|
|||
Software - 3.3%
|
|||
SAP SE
|
18,566
|
5,605,375
|
|
IRELAND - 1.6%
|
|||
Information Technology - 1.6%
|
|||
IT Services - 1.6%
|
|||
Accenture PLC Class A
|
8,754
|
2,773,442
|
|
ISRAEL - 1.5%
|
|||
Consumer Discretionary - 1.5%
|
|||
Broadline Retail - 1.5%
|
|||
Global-e Online Ltd (a)
|
81,096
|
2,584,530
|
|
JAPAN - 3.2%
|
|||
Health Care - 1.1%
|
|||
Health Care Equipment & Supplies - 1.1%
|
|||
Hoya Corp
|
15,332
|
1,823,602
|
|
Information Technology - 2.1%
|
|||
Semiconductors & Semiconductor Equipment - 2.1%
|
|||
Advantest Corp
|
71,120
|
3,641,134
|
|
TOTAL JAPAN
|
5,464,736
|
||
KOREA (SOUTH) - 2.7%
|
|||
Information Technology - 2.7%
|
|||
Technology Hardware, Storage & Peripherals - 2.7%
|
|||
Samsung Electronics Co Ltd
|
112,775
|
4,586,871
|
|
NETHERLANDS - 6.0%
|
|||
Communication Services - 1.4%
|
|||
Entertainment - 1.4%
|
|||
Universal Music Group NV
|
72,918
|
2,331,500
|
|
Universal Music Group NV rights (a)(b)
|
72,918
|
23,182
|
|
2,354,682
|
|||
Financials - 1.0%
|
|||
Financial Services - 1.0%
|
|||
Adyen NV (a)(c)(d)
|
886
|
1,699,752
|
|
Information Technology - 3.6%
|
|||
Semiconductors & Semiconductor Equipment - 3.6%
|
|||
BE Semiconductor Industries NV
|
33,188
|
4,015,158
|
|
NXP Semiconductors NV
|
11,100
|
2,121,543
|
|
6,136,701
|
|||
TOTAL NETHERLANDS
|
10,191,135
|
||
SINGAPORE - 2.6%
|
|||
Communication Services - 2.6%
|
|||
Entertainment - 2.6%
|
|||
Sea Ltd Class A ADR (a)
|
27,939
|
4,480,577
|
|
TAIWAN - 5.2%
|
|||
Information Technology - 5.2%
|
|||
Semiconductors & Semiconductor Equipment - 5.2%
|
|||
Taiwan Semiconductor Manufacturing Co Ltd ADR
|
45,488
|
8,793,740
|
|
UNITED STATES - 67.0%
|
|||
Communication Services - 13.5%
|
|||
Entertainment - 4.5%
|
|||
Netflix Inc (a)
|
3,213
|
3,878,830
|
|
Spotify Technology SA (a)
|
5,690
|
3,784,647
|
|
7,663,477
|
|||
Interactive Media & Services - 6.1%
|
|||
Alphabet Inc Class C
|
11,000
|
1,901,350
|
|
Meta Platforms Inc Class A
|
12,919
|
8,364,923
|
|
10,266,273
|
|||
Media - 1.8%
|
|||
Magnite Inc (a)
|
183,000
|
2,993,880
|
|
Wireless Telecommunication Services - 1.1%
|
|||
T-Mobile US Inc
|
7,837
|
1,898,121
|
|
TOTAL COMMUNICATION SERVICES
|
22,821,751
|
||
Consumer Discretionary - 5.9%
|
|||
Broadline Retail - 4.9%
|
|||
Amazon.com Inc (a)
|
40,567
|
8,316,641
|
|
Hotels, Restaurants & Leisure - 1.0%
|
|||
Airbnb Inc Class A (a)
|
13,701
|
1,767,429
|
|
TOTAL CONSUMER DISCRETIONARY
|
10,084,070
|
||
Financials - 2.6%
|
|||
Financial Services - 2.6%
|
|||
Block Inc Class A (a)
|
20,097
|
1,240,990
|
|
Toast Inc Class A (a)
|
76,368
|
3,221,202
|
|
4,462,192
|
|||
Industrials - 1.1%
|
|||
Ground Transportation - 1.1%
|
|||
Uber Technologies Inc (a)
|
22,611
|
1,902,942
|
|
Information Technology - 43.9%
|
|||
Semiconductors & Semiconductor Equipment - 10.9%
|
|||
Marvell Technology Inc
|
105,538
|
6,352,332
|
|
Micron Technology Inc
|
19,790
|
1,869,363
|
|
NVIDIA Corp
|
75,737
|
10,234,342
|
|
18,456,037
|
|||
Software - 31.6%
|
|||
Adobe Inc (a)
|
5,293
|
2,197,071
|
|
Atlassian Corp Class A (a)
|
10,670
|
2,215,412
|
|
Crowdstrike Holdings Inc Class A (a)
|
5,343
|
2,518,530
|
|
CyberArk Software Ltd (a)
|
7,300
|
2,794,294
|
|
Datadog Inc Class A (a)
|
36,984
|
4,359,674
|
|
HubSpot Inc (a)
|
6,530
|
3,852,047
|
|
Intuit Inc
|
4,236
|
3,191,699
|
|
Microsoft Corp
|
23,763
|
10,939,535
|
|
Monday.com Ltd (a)
|
13,119
|
3,902,771
|
|
Palo Alto Networks Inc (a)
|
19,980
|
3,844,552
|
|
Salesforce Inc
|
8,386
|
2,225,393
|
|
Synopsys Inc (a)
|
9,174
|
4,256,553
|
|
Workday Inc Class A (a)
|
16,317
|
4,041,884
|
|
Zscaler Inc (a)
|
11,500
|
3,170,550
|
|
53,509,965
|
|||
Technology Hardware, Storage & Peripherals - 1.4%
|
|||
Apple Inc
|
12,225
|
2,455,391
|
|
TOTAL INFORMATION TECHNOLOGY
|
74,421,393
|
||
TOTAL UNITED STATES
|
113,692,348
|
||
|
TOTAL COMMON STOCKS
(Cost $119,413,196)
|
166,593,801
|
||
Money Market Funds - 1.9%
|
||||
Yield (%)
|
Shares
|
Value ($)
|
||
Fidelity Cash Central Fund (e)
(Cost $3,252,612)
|
4.32
|
3,251,962
|
3,252,612
|
|
|
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $122,665,808)
|
169,846,413
|
NET OTHER ASSETS (LIABILITIES) - 0.0%
|
35,736
|
NET ASSETS - 100.0%
|
169,882,149
|
Legend
(a)
|
Non-income producing
|
(b)
|
Security or a portion of the security purchased on a delayed delivery or when-issued basis.
|
(c)
|
Security exempt from registration under Regulation S of the Securities Act of 1933 and may be resold to qualified foreign investors outside of the United States. At the end of the period, the value of securities amounted to $1,699,752 or 1.0% of net assets.
|
(d)
|
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 $1,699,752 or 1.0% of net assets.
|
(e)
|
Affiliated fund that is generally available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request. In addition, each Fidelity Central Fund's financial statements, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC's website or upon request.
|
Affiliated Central Funds
Fiscal year to date information regarding the Fund's investments in Fidelity Central Funds, including the ownership percentage, is presented below.
Affiliate
|
Value,
beginning
of period ($)
|
Purchases ($)
|
Sales
Proceeds ($)
|
Dividend
Income ($)
|
Realized
Gain (loss) ($)
|
Change in
Unrealized
appreciation
(depreciation) ($)
|
Value,
end
of period ($)
|
Shares,
end
of period
|
% ownership,
end
of period
|
Fidelity Cash Central Fund
|
385,903
|
19,286,621
|
16,419,918
|
35,934
|
6
|
-
|
3,252,612
|
3,251,962
|
0.0%
|
Fidelity Securities Lending Cash Central Fund
|
1,251,475
|
18,345,425
|
19,596,900
|
332
|
-
|
-
|
-
|
-
|
0.0%
|
Total
|
1,637,378
|
37,632,046
|
36,016,818
|
36,266
|
6
|
-
|
3,252,612
|
||
Amounts in the dividend income column in the above table include any capital gain distributions from underlying funds, which are presented in the corresponding line item in the Statement of Operations, if applicable.
Amounts in the dividend income column for Fidelity Securities Lending Cash Central Fund represents the income earned on investing cash collateral, less rebates paid to borrowers and any lending agent fees associated with the loan, plus any premium income received for lending certain types of securities.
Amounts included in the purchases and sales proceeds columns may include in-kind transactions, if applicable.
Investment Valuation
The following is a summary of the inputs used, as of May 31, 2025, involving the Fund's assets and liabilities carried at fair value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used below, please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Valuation Inputs at Reporting Date:
|
||||
Description
|
Total ($)
|
Level 1 ($)
|
Level 2 ($)
|
Level 3 ($)
|
Investments in Securities:
|
||||
Common Stocks
|
||||
Communication Services
|
29,657,010
|
29,657,010
|
-
|
-
|
Consumer Discretionary
|
15,006,072
|
15,006,072
|
-
|
-
|
Financials
|
6,161,944
|
6,161,944
|
-
|
-
|
Health Care
|
1,823,602
|
1,823,602
|
-
|
-
|
Industrials
|
1,902,942
|
1,902,942
|
-
|
-
|
Information Technology
|
112,042,231
|
112,042,231
|
-
|
-
|
Money Market Funds
|
3,252,612
|
3,252,612
|
-
|
-
|
Total Investments in Securities:
|
169,846,413
|
169,846,413
|
-
|
-
|
Fidelity® Disruptive Technology ETF
Financial Statements
Statement of Assets and Liabilities
|
||||
As of May 31, 2025
|
||||
Assets
|
||||
Investment in securities, at value - See accompanying schedule:
|
||||
Unaffiliated issuers (cost $119,413,196)
|
$
|
166,593,801
|
||
Fidelity Central Funds (cost $3,252,612)
|
3,252,612
|
|||
Total Investment in Securities (cost $122,665,808)
|
$
|
169,846,413
|
||
Cash
|
34,570
|
|||
Foreign currency held at value (cost $213)
|
217
|
|||
Dividends receivable
|
82,898
|
|||
Distributions receivable from Fidelity Central Funds
|
9,022
|
|||
Other receivables
|
1,798
|
|||
Total assets
|
169,974,918
|
|||
Liabilities
|
||||
Payable for investments purchased on a delayed delivery basis
|
$
|
23,183
|
||
Accrued management fee
|
69,586
|
|||
Total liabilities
|
92,769
|
|||
Net Assets
|
$
|
169,882,149
|
||
Net Assets consist of:
|
||||
Paid in capital
|
$
|
155,311,988
|
||
Total accumulated earnings (loss)
|
14,570,161
|
|||
Net Assets
|
$
|
169,882,149
|
||
Net Asset Value, offering price and redemption price per share ($169,882,149 ÷ 4,788,469 shares)
|
$
|
35.48
|
||
Statement of Operations
|
||||
|
Year ended May 31, 2025
|
||||
Investment Income
|
||||
Dividends
|
$
|
659,490
|
||
Income from Fidelity Central Funds (including $332 from security lending)
|
36,266
|
|||
Total income
|
695,756
|
|||
Expenses
|
||||
Management fee
|
$
|
798,270
|
||
Independent trustees' fees and expenses
|
679
|
|||
Interest
|
689
|
|||
Total expenses before reductions
|
799,638
|
|||
Expense reductions
|
(480)
|
|||
Total expenses after reductions
|
799,158
|
|||
Net Investment income (loss)
|
(103,402)
|
|||
Realized and Unrealized Gain (Loss)
|
||||
Net realized gain (loss) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
(2,105,218)
|
|||
Redemptions in-kind
|
2,832,666
|
|||
Fidelity Central Funds
|
6
|
|||
Foreign currency transactions
|
22,954
|
|||
Total net realized gain (loss)
|
750,408
|
|||
Change in net unrealized appreciation (depreciation) on:
|
||||
Investment Securities:
|
||||
Unaffiliated issuers
|
20,564,830
|
|||
Assets and liabilities in foreign currencies
|
(1,802)
|
|||
Total change in net unrealized appreciation (depreciation)
|
20,563,028
|
|||
Net gain (loss)
|
21,313,436
|
|||
Net increase (decrease) in net assets resulting from operations
|
$
|
21,210,034
|
||
Statement of Changes in Net Assets
|
||||
Year ended
May 31, 2025
|
Year ended
May 31, 2024
|
|||
Increase (Decrease) in Net Assets
|
||||
Operations
|
||||
Net investment income (loss)
|
$
|
(103,402)
|
$
|
(164,068)
|
Net realized gain (loss)
|
750,408
|
(4,743,993)
|
||
Change in net unrealized appreciation (depreciation)
|
20,563,028
|
29,876,530
|
||
Net increase (decrease) in net assets resulting from operations
|
21,210,034
|
24,968,469
|
||
Share transactions
|
||||
Proceeds from sales of shares
|
7,407,195
|
32,417,022
|
||
Cost of shares redeemed
|
(6,812,611)
|
(10,852,977)
|
||
Net increase (decrease) in net assets resulting from share transactions
|
594,584
|
21,564,045
|
||
Total increase (decrease) in net assets
|
21,804,618
|
46,532,514
|
||
Net Assets
|
||||
Beginning of period
|
148,077,531
|
101,545,017
|
||
End of period
|
$
|
169,882,149
|
$
|
148,077,531
|
Other Information
|
||||
Shares
|
||||
Sold
|
200,000
|
1,048,177
|
||
Redeemed
|
(200,000)
|
(434,792)
|
||
Net increase (decrease)
|
-
|
613,385
|
||
See Organization and Reorganization Information note regarding reorganization during the prior fiscal year.
Share activity is further described in Organization and Reorganization Information notes, and amounts for the prior fiscal years have been adjusted to reflect the impact of the change in capital structure associated with the merger. All financial information prior to the merger is that of the Predecessor Fund.
Financial Highlights
Fidelity® Disruptive Technology ETF |
Years ended May 31,
|
2025
|
2024 A
|
2023 A
|
2022 A
|
2021 A
|
|||||
Selected Per-Share Data
|
||||||||||
Net asset value, beginning of period
|
$
|
30.92
|
$
|
24.32
|
$
|
21.70
|
$
|
33.25
|
$
|
21.11
|
Income from Investment Operations
|
||||||||||
Net investment income (loss) B,C
|
(.02)
|
(.04)
|
(.09) D
|
(.26)
|
(.24)
|
|||||
Net realized and unrealized gain (loss)
|
4.58
|
6.64
|
2.97
|
(10.79)
|
12.51
|
|||||
Total from investment operations
|
4.56
|
6.60
|
2.88
|
(11.05)
|
12.27
|
|||||
Distributions from net realized gain
|
-
|
-
|
(.26)
|
(.50)
|
(.13)
|
|||||
Total distributions
|
-
|
-
|
(.26)
|
(.50)
|
(.13)
|
|||||
Net asset value, end of period
|
$
|
35.48
|
$
|
30.92
|
$
|
24.32
|
$
|
21.70
|
$
|
33.25
|
Total Return E,F
|
14.72 % |
27.13%
|
13.45%
|
(33.85)%
|
58.13%
|
|||||
Ratios to Average Net Assets C,G,H
|
||||||||||
Expenses before reductions
|
.50%
|
.51%
|
.87%
|
.99% I
|
1.01% I
|
|||||
Expenses net of fee waivers, if any
|
.50 % |
.50%
|
.87%
|
.99% I
|
1.01% I
|
|||||
Expenses net of all reductions, if any
|
.50%
|
.50%
|
.87%
|
.99% I
|
1.01% I
|
|||||
Net investment income (loss)
|
(.06)%
|
(.14)%
|
(.42)% D
|
(.78)%
|
(.77)%
|
|||||
Supplemental Data
|
||||||||||
Net assets, end of period (000 omitted)
|
$
|
169,882
|
$
|
148,078
|
$
|
101,545
|
$
|
34,802
|
$
|
130,244
|
Portfolio turnover rate J
|
37 % K |
25% K
|
28%
|
33%
|
29%
|
AAs further described in Organization and Reorganization information notes, per share amounts have been adjusted to reflect the impact of the change in capital structure associated with the reorganization. All financial information prior to the reorganization is that of the Predecessor Fund.
BCalculated based on average shares outstanding during the period.
CNet investment income (loss) is affected by the timing of the declaration of dividends by any underlying mutual funds or exchange-traded funds (ETFs). Net investment income (loss) of any mutual funds or ETFs is not included in the Fund's net investment income (loss) ratio.
DNet investment income per share reflects one or more large, non-recurring dividend(s) which amounted to $.02 per share. Excluding such non-recurring dividend(s), the ratio of net investment income (loss) to average net assets would have been (.47)%.
ETotal returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
FBased on net asset value.
GFees and expenses of any underlying mutual funds or exchange-traded funds (ETFs) are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of these expenses. For additional expense information related to investments in Fidelity Central Funds, please refer to the "Investments in Fidelity Central Funds" note found in the Notes to Financial Statements section of the most recent Annual or Semi-Annual report.
HExpense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment adviser, brokerage services, or other offset arrangements, if applicable, and do not represent the amount paid by the class during periods when reimbursements, waivers or reductions occur.
IThe size and fluctuation of net assets and expense amounts may cause ratios to differ from contractual rates.
JAmount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs), derivatives or securities that mature within one year from acquisition.
KPortfolio turnover rate excludes securities received or delivered in-kind.
Notes to Financial Statements
For the period ended May 31, 2025
1. Organization.
Fidelity Disruptive Automation ETF, Fidelity Disruptive Communications ETF, Fidelity Disruptive Finance ETF, Fidelity Disruptive Medicine ETF and Fidelity Disruptive Technology ETF (the Funds) are exchange-traded funds of Fidelity Covington Trust (the Trust) and are authorized to issue an unlimited number of shares. Each Fund, with the exception of Fidelity Disruptive Medicine ETF, is a non-diversified fund. The Trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. Investments in emerging markets, if applicable, can be subject to social, economic, regulatory, and political uncertainties and can be extremely volatile.
Effective June 9, 2023, each Fidelity Disruptive Fund (Predecessor Fund) reorganized into the newly created exchange traded fund (ETF) as noted in the table below. Each Predecessor Fund was the accounting survivor in the reorganization, and, as such, the financial statements and financial highlights of each Fund for the fiscal year ended May 31, 2024 and prior reflect the financial information of each Predecessor Fund through June 9, 2023 (see Prior Fiscal Year Reorganization Information note).
Current ETFs
|
Former Mutual Funds (Predecessor Funds)
|
Fidelity Disruptive Automation ETF
|
Fidelity Disruptive Automation Fund
|
Fidelity Disruptive Communications ETF
|
Fidelity Disruptive Communications Fund
|
Fidelity Disruptive Finance ETF
|
Fidelity Disruptive Finance Fund
|
Fidelity Disruptive Medicine ETF
|
Fidelity Disruptive Medicine Fund
|
Fidelity Disruptive Technology ETF
|
Fidelity Disruptive Technology Fund
|
2. Investments in Fidelity Central Funds.
Funds may invest in Fidelity Central Funds, which are open-end investment companies generally available only to other investment companies and accounts managed by the investment adviser and its affiliates. The Schedule of Investments lists any Fidelity Central Funds held as an investment as of period end, but does not include the underlying holdings of each Fidelity Central Fund. An investing fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.
Based on its investment objective, each Fidelity Central Fund may invest or participate in various investment vehicles or strategies that are similar to those of the investing fund. These strategies are consistent with the investment objectives of the investing fund and may involve certain economic risks which may cause a decline in value of each of the Fidelity Central Funds and thus a decline in the value of the investing fund.
Fidelity Central Fund
|
Investment Manager
|
Investment Objective
|
Investment Practices
|
Expense RatioA
|
Fidelity Money Market Central Funds
|
Fidelity Management & Research Company LLC (FMR)
|
Each fund seeks to obtain a high level of current income consistent with the preservation of capital and liquidity.
|
Short-term Investments
|
Less than .005%
|
A Expenses expressed as a percentage of average net assets and are as of each underlying Central Fund's most recent annual or semi-annual shareholder report.
A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission website at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Report of Independent Registered Public Accounting Firm, are available on the Securities and Exchange Commission website or upon request.
3. Significant Accounting Policies.
Each Fund is an investment company and applies the accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 Financial Services - Investment Companies. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Each Fund operates as a single operating segment. Each Fund's income, expenses, assets, and performance are regularly monitored and assessed as a whole by the investment adviser and other individuals responsible for oversight functions of the Trust, using the information presented in the financial statements and financial highlights. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. Each Fund's Schedule of Investments lists any underlying mutual funds or exchange-traded funds but does not include the underlying holdings of these funds. The following summarizes the significant accounting policies of each Fund:
Investment Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Board of Trustees (the Board) has designated each Fund's investment adviser as the valuation designee responsible for the fair valuation function and performing fair value determinations as needed. The investment adviser has established a Fair Value Committee (the Committee) to carry out the day-to-day fair valuation responsibilities and has adopted policies and procedures to govern the fair valuation process and the activities of the Committee. In accordance with these fair valuation policies and procedures, which have been approved by the Board, each Fund attempts to obtain prices from one or more third party pricing services or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or reliable, investments will be fair valued in good faith by the Committee, in accordance with the policies and procedures. Factors used in determining fair value vary by investment type and may include market or investment specific events, transaction data, estimated cash flows, and market observations of comparable investments. The frequency that the fair valuation procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee manages each Fund's fair valuation practices and maintains the fair valuation policies and procedures. Each Fund's investment adviser reports to the Board information regarding the fair valuation process and related material matters.
Each Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
Level 1 - unadjusted quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value each Fund's investments by major category are as follows:
Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by a third party pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and are generally categorized as Level 2 in the hierarchy. For foreign equity securities, when market or security specific events arise, comparisons to the valuation of American Depositary Receipts (ADRs), futures contracts, 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, including the Fidelity Central Funds, are valued at their closing net asset value (NAV) each business day and are categorized as Level 1 in the hierarchy.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level as of May 31, 2025 is included at the end of each Fund's Schedule of Investments.
Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Gains and losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.
Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rates at period end. Purchases and sales of investment securities, income and dividends received, and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.
The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.
Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business (normally 4:00 p.m. Eastern time) of the Nasdaq Stock Market and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and for certain Funds include proceeds received from litigation. Commissions paid to certain brokers with whom the investment adviser, or its affiliates, places trades on behalf of a fund include an amount in addition to trade execution, which may be rebated back to a fund. Any such rebates are included in net realized gain (loss) on investments in the Statement of Operations. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Income and capital gain distributions from Fidelity Central Funds, if any, are recorded on the ex-dividend date. Certain distributions received by the Funds represent a return of capital or capital gain. The Funds determine the components of these distributions subsequent to the ex-dividend date, based upon receipt of tax filings or other correspondence relating to the underlying investment. These distributions are recorded as a reduction of cost of investments and/or as a realized gain. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. Funds may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. Any withholding tax reclaims income is included in the Statement of Operations in dividends or foreign tax reclaims, as applicable. Any receivables for withholding tax reclaims are included in the Statement of Assets and Liabilities in dividends receivable or reclaims receivable, as applicable.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expenses included in the accompanying financial statements reflect the expenses of that fund and do not include any expenses associated with any underlying mutual funds or exchange-traded funds. Although not included in a fund's expenses, a fund indirectly bears its proportionate share of these expenses through the net asset value of each underlying mutual fund or exchange-traded fund. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of May 31, 2025, each Fund did not have any unrecognized tax benefits in the financial statements; nor is each Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. Each Fund files a U.S. federal tax return, in addition to state and local tax returns as required. Each Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction. Realized gain or loss resulting from in-kind redemptions is not taxable to the Funds and is not distributed to shareholders of the Funds. Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.
Distributions are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to foreign currency transactions, passive foreign investment companies (PFIC), redemptions in-kind, net operating losses, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.
As of period end, the cost and unrealized appreciation (depreciation) in securities, and derivatives if applicable, for federal income tax purposes were as follows for each Fund:
Tax cost ($)
|
Gross unrealized appreciation ($)
|
Gross unrealized depreciation ($)
|
Net unrealized appreciation (depreciation)($)
|
|
Fidelity Disruptive Automation ETF
|
106,486,006
|
26,988,937
|
(9,229,288)
|
17,759,649
|
Fidelity Disruptive Communications ETF
|
50,539,132
|
22,882,951
|
(3,775,767)
|
19,107,184
|
Fidelity Disruptive Finance ETF
|
39,193,726
|
17,260,626
|
(1,605,406)
|
15,655,220
|
Fidelity Disruptive Medicine ETF
|
47,178,341
|
11,420,060
|
(6,265,194)
|
5,154,866
|
Fidelity Disruptive Technology ETF
|
122,781,535
|
53,467,319
|
(6,402,441)
|
47,064,878
|
The tax-based components of distributable earnings as of period end were as follows for each Fund:
Undistributed ordinary income ($)
|
Capital loss carryforward ($)
|
Net unrealized appreciation (depreciation) on securities and other investments ($)
|
|
Fidelity Disruptive Automation ETF
|
66,274
|
(9,361,027)
|
17,770,800
|
Fidelity Disruptive Communications ETF
|
-
|
(7,270,997)
|
19,107,047
|
Fidelity Disruptive Finance ETF
|
156,897
|
(8,490,003)
|
15,655,437
|
Fidelity Disruptive Medicine ETF
|
-
|
(14,096,079)
|
5,162,278
|
Fidelity Disruptive Technology ETF
|
-
|
(32,494,161)
|
47,064,322
|
Capital loss carryforwards are only available to offset future capital gains of the Funds to the extent provided by regulations and may be limited. The capital loss carryforward information presented below, including any applicable limitation, is estimated as of fiscal period end and is subject to adjustment.
Short-term ($)
|
Long-term ($)
|
Total capital loss carryforward ($)
|
|
Fidelity Disruptive Automation ETF
|
(2,643,814)
|
(6,717,213)
|
(9,361,027)
|
Fidelity Disruptive Communications ETF
|
(5,038,746)
|
(2,232,251)
|
(7,270,997)
|
Fidelity Disruptive Finance ETF
|
(4,394,274)
|
(4,095,729)
|
(8,490,003)
|
Fidelity Disruptive Medicine ETF
|
(7,303,431)
|
(6,792,648)
|
(14,096,079)
|
Fidelity Disruptive Technology ETF
|
(4,151,842)
|
(28,342,319)
|
(32,494,161)
|
Certain of the Funds intend to elect to defer to the next fiscal year ordinary losses recognized during the period January 1, 2025 to May 31, 2025. Loss deferrals were as follows:
Ordinary losses ($)
|
|
Fidelity Disruptive Communications ETF
|
(1,466)
|
Fidelity Disruptive Medicine ETF
|
(143,223)
|
The tax character of distributions paid was as follows:
May 31, 2025
|
||
Ordinary Income ($)
|
Total ($)
|
|
Fidelity Disruptive Automation ETF
|
494,208
|
494,208
|
Fidelity Disruptive Communications ETF
|
39,184
|
39,184
|
Fidelity Disruptive Finance ETF
|
352,658
|
352,658
|
Fidelity Disruptive Medicine ETF
|
239,990
|
239,990
|
May 31, 2024
|
||
Ordinary Income ($)
|
Total ($)
|
|
Fidelity Disruptive Automation ETF
|
600,970
|
600,970
|
Fidelity Disruptive Finance ETF
|
404,620
|
404,620
|
Delayed Delivery Transactions and When-Issued Securities. During the period, certain Funds transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. Securities purchased on a delayed delivery or when-issued basis are identified as such in the Schedule of Investments. Compensation for interest forgone in the purchase of a delayed delivery or when-issued debt security may be received. With respect to purchase commitments, each applicable Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Payables and receivables associated with the purchases and sales of delayed delivery securities having the same coupon, settlement date and broker are offset. Delayed delivery or when-issued securities that have been purchased from and sold to different brokers are reflected as both payables and receivables in the Statement of Assets and Liabilities under the caption "Delayed delivery", as applicable. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
Restricted Securities (including Private Placements). Funds may invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. Information regarding restricted securities held at period end is included at the end of the Schedule of Investments, if applicable.
New Accounting Pronouncements. FASB Accounting Standards Update (ASU) 2023-07 Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures became effective in this reporting period. ASU 2023-07 enhances segment information disclosure in the notes to financial statements.
In December 2023, the FASB issued ASU 2023-09 Income Taxes (Topic 740): Improvements to Income Tax Disclosures. Effective for annual periods beginning after December 15, 2024, the amendments require greater disaggregation of disclosures related to income taxes paid. The ASU allows for early adoption and amendments should be applied on a prospective basis. Management is currently evaluating the impact of the ASU but does not expect this guidance to materially impact the financial statements.
4. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities and in-kind transactions, as applicable, are noted in the table below.
Purchases ($)
|
Sales ($)
|
|
Fidelity Disruptive Automation ETF
|
33,645,627
|
33,877,310
|
Fidelity Disruptive Communications ETF
|
12,869,252
|
13,475,968
|
Fidelity Disruptive Finance ETF
|
10,006,985
|
11,274,242
|
Fidelity Disruptive Medicine ETF
|
15,979,781
|
16,134,690
|
Fidelity Disruptive Technology ETF
|
57,732,831
|
60,645,834
|
Securities received and delivered in-kind through subscriptions and redemptions are noted in the table below.
In-Kind Subscriptions ($)
|
In-Kind Redemptions ($)
|
|
Fidelity Disruptive Automation ETF
|
15,633,026
|
10,416,793
|
Fidelity Disruptive Communications ETF
|
10,649,030
|
1,503,137
|
Fidelity Disruptive Finance ETF
|
6,356,840
|
4,944,559
|
Fidelity Disruptive Technology ETF
|
6,591,515
|
6,086,957
|
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) provides the Funds with investment management related services for which the Funds pay a monthly management fee that is based on an annual rate of each Fund's average net assets as noted in the table below. Under the management contract, the investment adviser pays all other expenses, except the compensation of the independent Trustees and certain miscellaneous expenses such as proxy and shareholder meeting expenses.
Fee Rate
|
|
Fidelity Disruptive Automation ETF
|
.50%
|
Fidelity Disruptive Communications ETF
|
.50%
|
Fidelity Disruptive Finance ETF
|
.50%
|
Fidelity Disruptive Medicine ETF
|
.50%
|
Fidelity Disruptive Technology ETF
|
.50%
|
Brokerage Commissions. A portion of portfolio transactions were placed with brokerage firms which are affiliates of the investment adviser. Brokerage commissions are included in net realized gain (loss) and change in net unrealized appreciation (depreciation) in the Statement of Operations. The commissions paid to these affiliated firms were as follows:
Amount ($)
|
|
Fidelity Disruptive Automation ETF
|
571
|
Fidelity Disruptive Communications ETF
|
268
|
Fidelity Disruptive Finance ETF
|
463
|
Fidelity Disruptive Medicine ETF
|
513
|
Fidelity Disruptive Technology ETF
|
647
|
Interfund Lending Program. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), each Fund, along with other registered investment companies having management contracts with Fidelity Management & Research Company LLC (FMR), or other affiliated entities of FMR, may participate in an interfund lending program. This program provides an alternative credit facility allowing each Fund to borrow from, or lend money to, other participating affiliated funds at rates that are beneficial to both the borrowing and lending fund. Borrowings under the program are generally for temporary or emergency purposes, including meeting fund shareholder redemptions. The interfund loan rate is determined, as specified in the Exemptive Order, by averaging, (1) the higher of the overnight time deposit rate and the current overnight repurchase agreement rate, and (2) a benchmark rate representing the lowest bank loan rate available to the funds. At period end, there were no interfund loans outstanding. Activity in this program during the period for which loans were outstanding was as follows:
Borrower or Lender
|
Average Loan Balance ($)
|
Weighted Average Interest Rate
|
Interest Expense ($)
|
|
Fidelity Disruptive Technology ETF
|
Borrower
|
5,434,000
|
4.57%
|
689
|
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board of Trustees. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act. Any interfund trades are included within the respective purchases and sales amounts shown in the Purchases and Sales of Investments note. Interfund trades during the period are noted in the table below.
Purchases ($)
|
Sales ($)
|
Realized Gain (Loss) ($)
|
|
Fidelity Disruptive Automation ETF
|
2,002,483
|
59,269
|
(1,106)
|
Fidelity Disruptive Communications ETF
|
1,148,630
|
2,424,154
|
1,207,661
|
Fidelity Disruptive Finance ETF
|
-
|
1,933,563
|
666,316
|
Fidelity Disruptive Medicine ETF
|
1,415,174
|
1,613,292
|
598,890
|
Fidelity Disruptive Technology ETF
|
3,853,545
|
2,927,067
|
(2,563,575)
|
6. Security Lending.
Funds lend portfolio securities from time to time in order to earn additional income. Lending agents are used, including National Financial Services (NFS), an affiliate of the investment adviser. Pursuant to a securities lending agreement, NFS will receive a fee, which is capped at 9.9% of a fund's daily lending revenue, for its services as lending agent. A fund may lend securities to certain qualified borrowers, including NFS. On the settlement date of the loan, the borrowers provide collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the fair value of the loaned securities during the period of the loan. The fair value of the loaned securities is determined at the close of business of a fund and any additional required collateral is delivered to a fund on the next business day. A fund or borrower may terminate the loan at any time, and if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund may apply collateral received from the borrower against the obligation. A fund may experience delays and costs in recovering the securities loaned or gaining access to non-cash collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. Any loaned securities are identified as such in the Schedule of Investments, and the value of loaned securities and cash collateral at period end, as applicable, are presented in the Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral less rebates paid to borrowers, plus any premium income received, or for non-cash collateral, fees received from borrowers as compensation for the securities loaned. Securities lending income is reduced by any lending agent fees associated with the loan. Any security lending income earned on investing cash collateral is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Any security lending income earned on non-cash collateral is presented in the Statement of Operations as a component of dividends. Affiliated security lending activity, if any, was as follows:
Total Security Lending Fees Paid to NFS ($)
|
Security Lending Income From Securities Loaned to NFS ($)
|
Value of Securities Loaned to NFS at Period End ($)
|
|
Fidelity Disruptive Automation ETF
|
9,152
|
34
|
-
|
Fidelity Disruptive Communications ETF
|
20
|
-
|
-
|
Fidelity Disruptive Finance ETF
|
774
|
-
|
-
|
Fidelity Disruptive Medicine ETF
|
180
|
-
|
-
|
Fidelity Disruptive Technology ETF
|
35
|
-
|
-
|
7. Expense Reductions.
Through arrangements with each applicable Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
Custodian credits ($)
|
|
Fidelity Disruptive Automation ETF
|
577
|
Fidelity Disruptive Communications ETF
|
193
|
Fidelity Disruptive Finance ETF
|
454
|
Fidelity Disruptive Medicine ETF
|
325
|
Fidelity Disruptive Technology ETF
|
480
|
8. Share Transactions.
Funds issue and redeem shares at NAV only with certain authorized participants in large increments known as Creation Units. Purchases of Creation Units are made by tendering a basket of designated securities to a fund and redemption proceeds are paid with a basket of securities from a fund's portfolio with a balancing cash component to equate the market value of the basket of securities delivered or redeemed to the NAV per Creation Unit on the transaction date. Cash may be substituted equivalent to the value of certain securities generally when they are not available in sufficient quantity for delivery. A fund's shares are available in smaller increments to investors in the secondary market at market prices and may be subject to commissions. Authorized participants pay a transaction fee to the shareholder servicing agent when purchasing and redeeming Creation Units of a fund. The transaction fee is used to offset the costs associated with the issuance and redemption of Creation Units.
9. Other.
A fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the fund. In the normal course of business, a fund may also enter into contracts that provide general indemnifications. A fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against a fund. The risk of material loss from such claims is considered remote.
10. Risk and Uncertainties.
Many factors affect a fund's performance. Developments that disrupt global economies and financial markets, such as pandemics, epidemics, outbreaks of infectious diseases, war, terrorism, and environmental disasters, may significantly affect a fund's investment performance. The effects of these developments to a fund will be impacted by the types of securities in which a fund invests, the financial condition, industry, economic sector, and geographic location of an issuer, and a fund's level of investment in the securities of that issuer. Significant concentrations in security types, issuers, industries, sectors, and geographic locations may magnify the factors that affect a fund's performance.
11. Prior Fiscal Year Reorganization Information.
On June 9, 2023 each Fund (Predecessor Fund) reorganized into a newly created exchange traded fund (ETF) pursuant to an Agreement and Plan of Reorganization (the Agreement) approved by its Board of Trustees. Per the Agreement, shareholders of each Predecessor Fund received ETF shares equal in value to the shares of the Predecessor Fund they owned on the day the reorganization was effective. Each Predecessor Fund was the accounting survivor after the reorganization. As such, performance and financial history prior to the reorganization is that of each Predecessor Fund. Historical share transactions and per share information for the Predecessor Fund was retroactively adjusted to reflect the change in capital structure due to the reorganization.
Predecessor Funds
|
New ETFs
|
Fidelity Disruptive Automation Fund
|
Fidelity Disruptive Automation ETF
|
Fidelity Disruptive Communications Fund
|
Fidelity Disruptive Communications ETF
|
Fidelity Disruptive Finance Fund
|
Fidelity Disruptive Finance ETF
|
Fidelity Disruptive Medicine Fund
|
Fidelity Disruptive Medicine ETF
|
Fidelity Disruptive Technology Fund
|
Fidelity Disruptive Technology ETF
|
For financial reporting purposes, the assets and liabilities of each Predecessor Fund and shares issued by each ETF were recorded at fair value; however, the cost basis of the investments received from each Predecessor Fund were carried forward and will be utilized for purposes of each ETF's ongoing reporting of realized and unrealized gains and losses to more closely align subsequent reporting of realized gains with amounts distributable to shareholders for tax purposes. The reorganization qualified as a tax-free reorganization for federal income tax purposes with no gain or loss recognized to each Predecessor Fund or their shareholders. Costs incurred in connection with the reorganization were paid by each Predecessor Fund.
Predecessor Fund/Accounting Survivor
|
Investments ($)
|
Unrealized appreciation (depreciation) ($)
|
Net Assets ($)
|
Shares Exchanged
|
Shares Exchanged Ratio
|
Fidelity Disruptive Automation Fund
|
111,001,230
|
9,648,810
|
111,488,793
|
4,459,561
|
.6686440000
|
Fidelity Disruptive Communications Fund
|
38,182,670
|
416,225
|
38,176,192
|
1,527,044
|
.4988520000
|
Fidelity Disruptive Finance Fund
|
41,565,870
|
1,661,222
|
41,616,228
|
1,664,653
|
.5240880000
|
Fidelity Disruptive Medicine Fund
|
43,523,861
|
4,291,008
|
43,537,456
|
1,741,504
|
.4511440000
|
Fidelity Disruptive Technology Fund
|
102,251,358
|
1,677,809
|
102,438,029
|
4,097,527
|
.5443240000
|
Acquiring ETF
|
Net Assets ($)
|
Total net assets after the acquisition ($)
|
Fidelity Disruptive Automation ETF
|
25
|
111,488,818
|
Fidelity Disruptive Communications ETF
|
25
|
38,176,217
|
Fidelity Disruptive Finance ETF
|
25
|
41,616,253
|
Fidelity Disruptive Medicine ETF
|
25
|
43,537,481
|
Fidelity Disruptive Technology ETF
|
25
|
102,438,054
|
Pro forma results of operations of the combined entity for the entire period ended May 31, 2024, as though the acquisition had occurred as of the beginning of the year (rather than on the actual acquisition date), are as follows:
ETF name
|
Net investment income (loss)
|
Total net realized gain (loss)
|
Total change in net unrealized appreciation (depreciation)
|
Net increase (decrease) in net assets resulting from operations
|
Fidelity Disruptive Automation ETF
|
425,597
|
131,063
|
3,058,893
|
3,615,553
|
Fidelity Disruptive Communications ETF
|
(56,364)
|
2,695,971
|
10,821,394
|
13,461,001
|
Fidelity Disruptive Finance ETF
|
358,188
|
2,755,028
|
5,959,154
|
9,072,370
|
Fidelity Disruptive Medicine ETF
|
(68,608)
|
(373,863)
|
(672,987)
|
(1,115,458)
|
Fidelity Disruptive Technology ETF
|
(163,618)
|
(4,743,993)
|
29,876,530
|
24,968,919
|
Because the combined investment portfolios have been managed as a single portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of each Predecessor Fund that has been included in each ETF's Statement of Operations since June 9, 2023.
Report of Independent Registered Public Accounting Firm
To the Board of Trustees of Fidelity Covington Trust and Shareholders of Fidelity Disruptive Automation ETF, Fidelity Disruptive Communications ETF, Fidelity Disruptive Finance ETF, Fidelity Disruptive Medicine ETF, and Fidelity Disruptive Technology ETF
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Fidelity Disruptive Automation ETF, Fidelity Disruptive Communications ETF, Fidelity Disruptive Finance ETF, Fidelity Disruptive Medicine ETF, and Fidelity Disruptive Technology ETF (five of the funds constituting Fidelity Covington Trust, hereafter collectively referred to as the "Funds") as of May 31, 2025, the related statements of operations for the year ended May 31, 2025, the statements of changes in net assets for each of the two years in the period ended May 31, 2025, including the related notes, and the financial highlights for each of the five years in the period ended May 31, 2025 (collectively referred to as the "financial statements"). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of May 31, 2025, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended May 31, 2025 and each of the financial highlights for each of the five years in the period ended May 31, 2025 in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds' management. Our responsibility is to express an opinion on the Funds' financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of May 31, 2025 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/ PricewaterhouseCoopers LLP
Boston, Massachusetts
July 15, 2025
We have served as the auditor of one or more investment companies in the Fidelity group of funds since 1932.
Distributions
(Unaudited)The dividend and capital gains distributions for the fund(s) are available on Fidelity.com or Institutional.Fidelity.com.
A percentage of the dividends distributed during the fiscal year for the following funds qualify for the dividends-received deduction for corporate shareholders:
Fidelity Disruptive Automation ETF
|
|
June 2024
|
21%
|
September 2024
|
41%
|
March 2025
|
23%
|
Fidelity Disruptive Communications ETF
|
|
June 2024
|
100%
|
Fidelity Disruptive Finance ETF
|
|
June 2024
|
50%
|
September 2024
|
100%
|
December 2024
|
100%
|
March 2025
|
100%
|
Fidelity Disruptive Medicine ETF
|
|
June 2024
|
37%
|
December 2024
|
38%
|
A percentage of the dividends distributed during the fiscal year for the following funds may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.
Fidelity Disruptive Automation ETF
|
|
June 2024
|
100%
|
September 2024
|
100%
|
March 2025
|
100%
|
Fidelity Disruptive Communications ETF
|
|
June 2024
|
100%
|
Fidelity Disruptive Finance ETF
|
|
June 2024
|
100%
|
September 2024
|
100%
|
December 2024
|
100%
|
March 2025
|
100%
|
Fidelity Disruptive Medicine ETF
|
|
June 2024
|
39.58%
|
December 2024
|
40.50%
|
The funds hereby designate the amounts noted below as distributions paid during the fiscal year ended 2025 as qualifying to be taxed as section 163(j) interest dividends:
Fidelity Disruptive Automation ETF
|
$14,177
|
The amounts per share which represent income derived from sources within, and taxes paid to, foreign countries or possessions of the United States are as follows:
Pay Date
|
Income
|
Taxes
|
|
Fidelity Disruptive Automation ETF
|
06/25/24
|
$0.0401
|
$0.0179
|
The funds will notify shareholders in January 2026 of amounts for use in preparing 2025 income tax returns.
Item 8: Changes in and Disagreements with Accountants for Open-End Management Investment Companies
(Unaudited)
Note: This is not applicable for any fund included in this document.
Item 9: Proxy Disclosures for Open-End Management Investment Companies
(Unaudited)
A special meeting of shareholders was held on July 16, 2024. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
|
||
Proposal 1
|
||
To elect a Board of Trustees.
|
||
# of
Votes
|
% of
Votes
|
|
Bettina Doulton
|
||
Affirmative
|
38,080,283,823.03
|
97.17
|
Withheld
|
1,109,333,237.47
|
2.83
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Robert A. Lawrence
|
||
Affirmative
|
37,781,807,251.33
|
96.41
|
Withheld
|
1,407,809,809.17
|
3.59
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Vijay C. Advani
|
||
Affirmative
|
37,869,526,083.09
|
96.63
|
Withheld
|
1,320,090,977.41
|
3.37
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Thomas P. Bostick
|
||
Affirmative
|
38,025,875,898.31
|
97.03
|
Withheld
|
1,163,741,162.19
|
2.97
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Donald F. Donahue
|
||
Affirmative
|
37,825,198,238.79
|
96.52
|
Withheld
|
1,364,418,821.71
|
3.48
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Vicki L. Fuller
|
||
Affirmative
|
38,031,768,119.99
|
97.05
|
Withheld
|
1,157,848,940.51
|
2.95
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Patricia L. Kampling
|
||
Affirmative
|
38,062,391,881.90
|
97.12
|
Withheld
|
1,127,225,178.60
|
2.88
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Thomas A. Kennedy
|
||
Affirmative
|
37,891,434,776.27
|
96.69
|
Withheld
|
1,298,182,284.23
|
3.31
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Oscar Munoz
|
||
Affirmative
|
37,976,932,673.73
|
96.91
|
Withheld
|
1,212,684,386.77
|
3.09
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Karen B. Peetz
|
||
Affirmative
|
38,011,822,212.28
|
96.99
|
Withheld
|
1,177,794,848.22
|
3.01
|
TOTAL
|
39,189,617,060.50
|
100.00
|
David M. Thomas
|
||
Affirmative
|
37,976,058,118.16
|
96.90
|
Withheld
|
1,213,558,942.34
|
3.10
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Susan Tomasky
|
||
Affirmative
|
37,845,471,684.67
|
96.57
|
Withheld
|
1,344,145,375.83
|
3.43
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Michael E. Wiley
|
||
Affirmative
|
37,736,569,620.69
|
96.29
|
Withheld
|
1,453,047,439.81
|
3.71
|
TOTAL
|
39,189,617,060.50
|
100.00
|
Proposal 1 reflects trust-wide proposal and voting results.
|
||
Item 10: Remuneration Paid to Directors, Officers, and others of Open-End Management Investment Companies
(Unaudited)
Note: This information is disclosed as part of the financial statements for each Fund as part of Item 7: Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Item 11: Statement Regarding Basis for Approval of Investment Advisory Contract
(Unaudited)
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Disruptive Automation ETF
Fidelity Disruptive Communications ETF
Fidelity Disruptive Finance ETF
Fidelity Disruptive Medicine ETF
Fidelity Disruptive Technology ETF
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), considers the renewal of each fund's management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreements (together, the Advisory Contracts) for each fund. FMR and the sub-advisers are referred to herein as the Investment Advisers. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The Board meets regularly and, at each of its meetings, covers an extensive agenda of topics and materials and considers factors that are relevant to its annual consideration of the renewal of each fund's Advisory Contracts, including the services and support provided to each fund and its shareholders. The Board, acting directly and through its Committees (each of which is composed of and chaired by Independent Trustees), requests and receives information concerning the annual consideration of the renewal of each fund's Advisory Contracts. The Board also meets as needed to review matters specifically related to the Board's annual consideration of the renewal of the Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through joint ad hoc committees to discuss certain matters relevant to all of the Fidelity funds.
At its May 2025 meeting, the Board unanimously determined to renew each fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services provided to each fund and its shareholders (including the investment performance of each fund); (ii) the competitiveness relative to peer funds of each fund's management fee and total expense ratio; (iii) the total costs of the services provided by and the profits realized by FMR and its affiliates (Fidelity) from its relationships with each fund; and (iv) the extent to which, if any, economies of scale exist and are realized as each fund grows, and whether any economies of scale are appropriately shared with fund shareholders. The Board also considered the broad range of investment choices available to shareholders from FMR's competitors and that each fund's shareholders have chosen to invest in the fund, which is part of the Fidelity family of funds. The Board's decision to renew the Advisory Contracts was not based on any single factor and the factors may have been weighed differently by different Trustees.
The Board reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts was in the best interests of each fund and its shareholders and that the compensation payable under the Advisory Contracts was fair and reasonable in light of all of the surrounding circumstances.
Nature, Extent, and Quality of Services Provided. The Board considered staffing as it relates to the funds, including the backgrounds and experience of investment personnel of the Investment Advisers, and also considered the Investment Advisers' implementation of the funds' investment programs. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the investment personnel compensation program and whether this structure provides appropriate incentives to act in the best interests of each fund. Additionally, the Board considered the portfolio managers' investments, if any, in the funds that they manage.
Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of the Investment Advisers' staff, such as size, education, experience, and resources, as well as the Investment Advisers' approach to recruiting, training, managing, and compensating investment personnel. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers, counterparties and guarantors. Further, the Board considered that Fidelity's investment professionals have sufficient access to information and data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit them to assess portfolio construction and risk and performance attribution characteristics continuously, and to transmit new information and research conclusions rapidly. Additionally, in its deliberations, the Board considered Fidelity's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process.
Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory and administrative services provided by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering pricing and bookkeeping services for each fund; (ii) the nature and extent of Fidelity's supervision of third party service providers, principally State Street Bank and Trust Company, each fund's transfer agent and custodian; and (iii) the resources devoted by Fidelity to, and the record of compliance with, each fund's compliance policies and procedures, including with respect to liquidity risk management. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services. The Board also considered each fund's securities lending activities and any payments made to Fidelity relating to securities lending under separate agreements.
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to enhance the value and convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information over the Internet and through telephone representatives, investor education materials, and asset allocation tools. The Board also considered that it reviews customer service metrics such as telephone response times, continuity of services on the website and metrics addressing services at Fidelity Investor Centers.
Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of fund investor services. The Board noted that Fidelity had taken, or had made recommendations to the Board that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds and/or the Fidelity funds in general.
Investment Performance. The Board took into account discussions that occur with representatives of the Investment Advisers, and reports that it receives, at Board meetings throughout the year, relating to fund investment performance. In this regard, the Board noted that as part of regularly scheduled fund reviews and other reports to the Board on fund performance, the Board considered annualized return information for the fund for different time periods, measured against an appropriate securities market index (benchmark index). The Board also considered information about performance attribution. In its ongoing evaluation of fund investment performance, the Board gives particular attention to information indicating changes in performance of the funds over different time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance. The Board also considered information on each fund's bid-ask spread and premium/discount.
In addition to reviewing absolute and relative fund performance, the Independent Trustees periodically consider the appropriateness of fund performance metrics in evaluating the results achieved. The Independent Trustees generally give greater weight to fund performance over longer time periods than over shorter time periods. Depending on the circumstances, the Independent Trustees may be satisfied with a fund's performance notwithstanding that it lags its benchmark index for certain periods.
Based on its review, the Board concluded that the nature, extent, and quality of services provided to each fund under the Advisory Contracts should continue to benefit the shareholders of each fund.
Competitiveness of Management Fee and Total Expense Ratio. The Board was provided with information regarding industry trends in management fees and expenses. In its review of each fund's management fee and total expense ratio, the Board considered each fund's all-inclusive fee rate and also considered other expenses, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees, paid by FMR under each fund's all-inclusive arrangement. The Board noted that Fidelity may agree to waive fees or reimburse expenses from time to time, and the extent to which, if any, it has done so for each fund.
Comparisons of Management Fees and Total Expense Ratios. Among other things, the Board reviewed data for selected groups of competitive funds and classes (referred to as "total peer groups") that were compiled by Fidelity based on combining similar Morningstar Categories that have comparable investment mandates and sales load types (as classified by Lipper). The data reviewed by the Board included (i) gross management fee comparisons (before taking into account expense reimbursements or caps) relative to funds and classes in the total peer group; (ii) gross management fee comparisons relative to a subset of non-Fidelity funds in the total peer group that are similar in size to each fund (referred to as the "asset-sized peer group"); (iii) total expense comparisons of each fund relative to funds and classes in the total peer group; and (iv) total expense comparisons (excluding performance adjustments and fund-paid 12b-1 fees) of each fund relative to funds and classes in the asset-sized peer group. The asset-sized peer group comparison excludes performance adjustments and fund-paid 12b-1 fees to eliminate variability in fee structures.
The information provided to the Board indicated that each fund's management fee rate ranked below the competitive median of the total peer group for the 12-month period ended September 30, 2024 and below the competitive median of the asset-sized peer group for the 12-month period ended September 30, 2024. Further, the information provided to the Board indicated that the total expense ratio of each fund ranked below the competitive median of the total peer group for the 12-month period ended September 30, 2024 and below the competitive median of the asset-sized peer group for the period ended September 30, 2024.
Fees Charged to Other Fidelity Clients. The Board also considered Fidelity fee structures and other information with respect to clients of Fidelity, such as other funds advised or subadvised by Fidelity, pension plan clients, and other institutional clients with similar mandates. The Board noted that a joint ad hoc committee created by it and the boards of other Fidelity funds periodically reviews and compares Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds and also noted the most recent findings of the committee. The Board noted that the committee's review included a consideration of the differences in services provided, fees charged, and costs incurred, as well as competition in the markets serving the different categories of clients.
Based on its review, the Board concluded that each fund's management fee is fair and reasonable in light of the services that the fund receives and the other factors considered. Further, based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that each fund's total expense ratio was reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering, and servicing each fund and servicing each fund's shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, Fidelity presents to the Board information about the profitability of its relationships with each fund. Fidelity calculates profitability information for each Fidelity fund, as well as aggregate profitability information for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.
A public accounting firm has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. The engagement includes the review and assessment of the methodologies used by Fidelity in determining the revenues and expenses attributable to Fidelity's fund business. After considering the reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and potential indirect benefits such businesses may have received as a result of their association with Fidelity's fund business (i.e., fall-out benefits) as well as cases where Fidelity's affiliates may benefit from the funds' business. The Board considered areas where potential indirect benefits to the Fidelity funds from their relationships with Fidelity may exist. The Board's consideration of these matters was informed by the findings of a joint ad hoc committee created by it and the boards of other Fidelity funds to evaluate potential fall-out benefits.
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of each fund and was satisfied that the profitability was not excessive.
Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including each fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which each fund will benefit from economies of scale as assets grow through increased services to the fund, through waivers or reimbursements, or through fee or expense ratio reductions. The Board recognized that, due to each fund's current contractual arrangements, its expense ratio will not decline if the fund's operating costs decrease as assets grow, or rise as assets decrease. The Board also noted that a committee created by it and the boards of other Fidelity funds periodically analyzes whether Fidelity attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale. The Board's consideration of these matters was informed by the most recent findings of the committee.
The Board concluded, taking into account the analysis of the committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' advisory contracts, the Board requested and received additional information on certain topics, including but not limited to: (i) fund flow and performance trends, in particular the underperformance of certain funds and strategies, and Fidelity's long-term strategies for certain funds; (ii) the operation of performance fees and the rationale for implementing performance fees on certain categories of funds but not others; (iii) Fidelity's pricing philosophy compared to competitors; (iv) fund profitability methodology and data; (v) evaluation of competitive fund data and peer group classifications and fee and expense comparisons, as well as the methodology used for fee and expense comparisons; (vi) the management fee and expense structures for different funds and classes and information about the differences between various fee and expense structures; and (vii) information regarding other accounts managed by Fidelity and the funds' sub-advisory arrangements.
Conclusion. Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board, including the Independent Trustees, concluded that each fund's advisory and sub-advisory fee arrangements are fair and reasonable in light of all of the surrounding circumstances and that each fund's Advisory Contracts should be renewed through May 31, 2026.
 |
1.9907221.101
DRA-ANN-0725
Item 8.
Changes in and Disagreements with Accountants for Open-End Management Investment Companies
See Item 7.
Item 9.
Proxy Disclosures for Open-End Management Investment Companies
See Item 7.
Item 10.
Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies
See Item 7.
Item 11.
Statement Regarding Basis for Approval of Investment Advisory Contract
See Item 7.
Item 12.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 13.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 14.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 15.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 16.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust’s internal control over financial reporting.
Item 17.
Disclosure of Securities Lending Activities for Closed-End Management Investment Companies
Not applicable.
Item 18.
Recovery of Erroneously Awarded Compensation
(a)
Not applicable.
(b)
Not applicable.
Item 19.
Exhibits
| (a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
| (a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
| (a) | (3) | Not applicable. |
| (b) | | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Covington Trust
| By: | /s/Stacie M. Smith |
| | Stacie M. Smith |
| | President and Treasurer (Principal Executive Officer) |
| | |
| Date: | July 23, 2025 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| By: | /s/Stacie M. Smith |
| | Stacie M. Smith |
| | President and Treasurer (Principal Executive Officer) |
| | |
| Date: | July 23, 2025 |
| By: | /s/Stephanie Caron |
| | Stephanie Caron |
| | Chief Financial Officer (Principal Financial Officer) |
| | |
| Date: | July 23, 2025 |
FAQ
What was the 1-year return for Fidelity Disruptors ETF (FDIF)?
FDIF’s NAV gained 14.68 % for the year ended 5/31/25, slightly ahead of the MSCI ACWI’s 14.02 %.
Which Disruptive ETF had the strongest performance in FY 2025?
The Disruptive Finance ETF led with a 1-year NAV return of 25.56 %.
How much does a $10,000 investment cost annually in these funds?
Underlying ETFs charge $50–$57 (0.50 %) per $10,000; FDIF’s reported cost was negligible (<$0.50).
What are the largest holdings in the Disruptive Technology ETF (FDTX)?
Top weights are Microsoft 6.4 %, NVIDIA 6.1 %, and TSMC ADR 5.2 %.
Were there any governance changes noted?
Yes. All six ETFs introduced a contractual cap on proxy and shareholder-meeting expenses during the period.
Fidelity Enhanced Emerging Markets ETF
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