ETF Research Center

FCOM seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Communication Services 25/50 Index.

FUND BASICS
Category	US Equities
Fund Sponsor	FMR LLC
Website	www.fidelity.com
Inception date	Oct 24, 2013
Assets (mns)	$462
Currency	USD
Expense ratio	8 bp
Distributions	Quarterly

FUND STRUCTURE
Regulation	Open-Ended Fund
Custodian	State Street Bank & Trust Co
Weighting	Market Cap
Index replication	Full
Uses derivatives	No
Options available	No

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	111
Wgt avg mkt cap (mns)	$351,914
Large cap (>$10bn)	83.2%
Mid cap ($2-10bn)	13.0%
Small cap (<$2bn)	3.8%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	68.4 %
FACEBOOK	14.6 %
ALPHABET INC. CLASS C	12.0 %
ALPHABET INC. CLASS A	11.4 %
AT&T INC	7.8 %
WALT DISNEY CO/THE	4.9 %
NETFLIX INC	4.6 %
VERIZON COMMUNICATIONS INC	4.3 %
COMCAST CORP-CL A	4.2 %
CHARTER COMMUNICATIONS, INC. CLASS	2.9 %
ACTIVISION BLIZZARD INC	1.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	99.0 %
	BRITAIN	0.8 %
	CANADA	0.2 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru October 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
19.9%	12.1%	8.1%	--	8.2%

Market Correlations
versus...	Beta	R-squared
S&P500	0.79	49%
MSCI EAFE	0.72	35%
MSCI Emg. Mkts.	0.41	19%

Technical Indicators
Recent close	$34.73
30d moving avg.	$34.08
Annualized volatility	13.6%
Short interest (ETF)	0.0%
Short interest (Underlying)	4.7%
Relative strength (RSI)	69

Liquidity measures
Avg. volume (thou.)	62
Turnover	0.5%
Bid/Ask (% of price)	0.11%
ADV underlying (mns)	$15,557

Distributions

FINDING ALTERNATIVE FUNDS

Below is a list of 20 potential alternatives to the Fidelity MSCI Communication Services ETF based on the alternatives' overlap in portfolio holdings with FCOM. Consider funds with lower expense ratios and/or higher ALTAR Score™ ratings as possible alternatives.

Benchmark ticker:

FCOM

Expense:

8 bp

ALTAR Score™:

5.2%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FCOM
Ticker	Fund Name	Overlap¹ vs FCOM (%)	Expense ratio (bp)	Savings vs FCOM (bp)	ALTAR Score™ (%)	ALTAR vs FCOM (%)
VOX	Vanguard Communication Services	95.3	10	-2	5.4	+0.2
XLC	Communication Services Select Sector SPDR	76.5	13	-5	6.4	+1.2
IXP	iShares S&P Global Comm. Services	67.7	46	-38	6.3	+1.1
JHCS	John Hancock Multifactor Media & Communications	63.3	40	-32	6.3	+1.1
EWCO	Invesco S&P 500 Equal Weight Comm. Services	47.8	40	-32	7.9	+2.7
IEME	iShares Evolved U.S. Media and Entertainment	40.1	18	-10	6.7	+1.5
PNQI	Invesco Nasdaq Internet	25.6	62	-54	2.8	-2.4
FDN	First Trust DJ Internet	24.6	52	-44	3.3	-1.9
IYC	iShares DJ US Consumer Services	22.3	42	-34	5.1	-0.1
TTTN	TigerShares China-U.S. Internet Titans	22.2	59	-51	3.9	-1.3
ENTR	ERShares Entrepreneur 30	21.9	49	-41	3.9	-1.3
QYLD	Global X NASDAQ 100 Covered Call ETF	21.8	60	-52	4.9	-0.3
QQQ	Invesco QQQ	20.9	20	-12	5.2	+0.0
TMFC	Motley Fool 100 Index	18.4	50	-42	4.4	-0.8
SOCL	Global X Social Media	18.4	65	-57	4.7	-0.5
IYZ	iShares U.S. Telecommunications	18.4	42	-34	8.2	+3.0
XLG	Invesco S&P Top 50	18.1	20	-12	5.2	-0.0
PBS	Invesco Dyn Media Port	17.9	63	-55	6.3	+1.1
IYW	iShares US Technology	17.8	42	-34	5.1	-0.1
IGM	iShares S&P N. American Technology	17.8	46	-38	4.6	-0.6

¹Overlap is the percentage of holdings by weight that are identical. For example, if Fund A has a 2% position in Apple, Inc. (AAPL) and Fund B has a 5% position, their overlapping position in AAPL is 2%.

Content on this tab for subscribers only**

RESULTS & ESTIMATES

	2014	2015	2016	2017	2018	2019E	2020E
Sales per share	**	**	**	**	**	**	**
Earnings per share	**	**	**	**	**	**	**
Dividends per share	**	**	**	**	**	**	**
Book value per share	**	**	**	**	**	**	**

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

Sales per share growth		**%	**%	**%	**%	**%	**%
EPS growth		**%	**%	**%	**%	**%	**%

OTHER FUNDAMENTAL METRICS

Long term EPS growth est.	**%		Debt-to-equity	**x
Asset turnover	**%		Assets-to-equity	**x

Return on equity

Revision activity*

*Six months ago = 100

Net margins

Compound annual growth rates

Content on this tab for subscribers only

VALUATION METRICS

	2018	2019E	2020E
Price-to-sales	**	**	**
Price-to-earnings	**	**	**
Price-to-cash flow	**	**	**
Price-to-growth	**	**	**
Price-to-book value	**	**	**
Yield	**	**	**

Historical valuation trends

Forward multiple:	Fidelity MSCI Communication Services
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

UNDERWEIGHT

Below average appreciation potential. A rating of UNDERWEIGHT is assigned to ETFs with ALTAR Scores in the 2nd quintile (ranking higher than only 20%-40%) of their category. Typically, funds in this category consist of stocks trading at relatively expensive valuations and/or having below-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	13.7	%
Divided by: Fwd. P/BV	2.6	x
Less: Expense ratio	8	bp
Equals: ALTAR Score	5.2	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.36	CATEGORY AVERAGE	1.55

The composite rating is a weighted average of analysts' consensus recommendations for individual ETF constituents, based on the following scale: BUY = 1; OVERWEIGHT = 1.5, HOLD = 2; UNDERWEIGHT = 2.5; and SELL = 3. Readers are cautioned that because analyst ratings tend to be inflated, the composite score may be more useful as a relative measure of sentiment between funds rather than as a stand-alone recommendation.