Fidelity NASDAQ Composite Index ETF

The fund seeks to replicate the total return performance of the benchmark index, before fees and expenses, by investing in companies in the United States.

The sub-adviser’s investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team invests significantly in common stocks included in the Index.

The Index is designed to represent the performance of NASDAQ stocks.

The team employs statistical sampling techniques to replicate the returns of the index. The technique takes into account factors such as capitalization, industry exposures, dividend yield, and valuation multiples on the basis of earnings and book value.

Other factors in consideration are earnings growth and country weightings.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

The fund may also lend securities to earn income for the fund.