ETF Research Center

The Fidelity MSCI Health Care Index ETF is an exchange-traded fund incorporated in the USA. The ETF seeks to provide investment returns that correspond, before fees and expenses, generally to the performance of the MSCI USA IMI Health Care Index.

FUND BASICS
Category	US Equities
Fund Sponsor	FMR LLC
Website	www.fidelity.com
Inception date	Oct 24, 2013
Assets (mns)	$1,792
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	Yes

SECTOR BREAKDOWN

CONSTITUENT BREAKDOWN
No. of constituents	360
Wgt avg mkt cap (mns)	$128,615
Large cap (>$10bn)	87.7%
Mid cap ($2-10bn)	8.2%
Small cap (<$2bn)	4.1%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	44.0 %
JOHNSON & JOHNSON	8.6 %
UNITEDHEALTH GROUP INC	6.2 %
MERCK & CO. INC.	5.1 %
PFIZER INC	4.9 %
MEDTRONIC PLC	3.5 %
ABBOTT LABORATORIES	3.4 %
BRISTOL-MYERS SQUIBB CO	3.4 %
AMGEN INC	3.2 %
THERMO FISHER SCIENTIFIC INC	3.0 %
ABBVIE INC	2.8 %

TOP COUNTRY EXPOSURE
	UNITED STATES	93.1 %
	IRELAND	5.8 %
	BRITAIN	0.5 %
	NETHERLANDS	0.1 %
	SWITZERLAND	0.1 %
	CAYMAN ISLANDS	0.0 %
	CANADA	0.0 %
	PUERTO RICO	0.0 %
	SINGAPORE	0.0 %

HISTORICAL PERFORMANCE info

	Custom date range	Compare to
	thru

Standardized Annual Returns (thru December 31)
Year-to-date	1 year	5 years	10 years	Since Incep.
22.0%	22.0%	10.4%	--	13.5%

Market Correlations
versus...	Beta	R-squared
S&P500	0.92	67%
MSCI EAFE	0.80	42%
MSCI Emg. Mkts.	0.57	37%

Technical Indicators
Recent close	$51.04
30d moving avg.	$49.52
Annualized volatility	13.6%
Short interest (ETF)	0.1%
Short interest (Underlying)	2.9%
Relative strength (RSI)	74

Liquidity measures
Avg. volume (thou.)	144
Turnover	0.4%
Bid/Ask (% of price)	0.06%
ADV underlying (mns)	$27,868

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FHLC

Expense:

8 bp

ALTAR Score™:

5.5%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FHLC
Ticker	Fund Name	Overlap¹ vs FHLC (%)	Expense ratio (bp)	Savings vs FHLC (bp)	ALTAR Score™ (%)	ALTAR vs FHLC (%)
VHT	Vanguard Health Care	98.1	10	-2	5.5	+0.1
IYH	iShares US Healthcare	91.9	43	-35	5.9	+0.4
XLV	Health Care Select Sector SPDR	85.2	13	-5	6.8	+1.3
JHMH	John Hancock Multifactor Health Care	77.4	40	-32	6.3	+0.8
IXJ	iShares S&P Global Healthcare	67.8	46	-38	6.0	+0.5
IEHS	iShares Evolved U.S. Healthcare Staples	57.6	18	-10	5.6	+0.1
RYH	Invesco S&P Equal Weight Healthcare	55.3	40	-32	6.7	+1.2
IEIH	iShares Evolved U.S. Innovative Healthcare	51.5	18	-10	3.8	-1.7
FXH	First Trust Health Care Alphadex	40.3	63	-55	6.7	+1.2
PBE	Invesco Dynamic Biotechnology & Genome	35.7	57	-49	10.5	+5.0
PJP	Invesco Dynamic Pharmaceuticals	35.7	56	-48	10.5	+5.0
FTXH	First Trust Nasdaq Pharmaceuticals	33.9	60	-52	4.1	-1.4
GDNA	Goldman Sachs Motif Human Evolution	29.5	50	-42	1.0	-4.5
IHE	iShares DJ US Pharmaceuticals	29.0	42	-34	4.9	-0.6
LNGR	Global X Longevity Thematic	27.7	50	-42	3.2	-2.2
PPH	VanEck Vectors Pharmaceuticals	27.1	36	-28	8.9	+3.4
IHI	iShares DJ US Medical Devices	26.4	43	-35	3.6	-1.9
DURA	VanEck Vectors Morningstar Durable Dividend	24.4	29	-21	6.5	+1.0
HLAL	Wahed FTSE USA Shariah	23.7	50	-42	5.3	-0.2
XPH	SPDR S&P Pharmaceuticals ETF	23.6	35	-27	4.5	-1.0

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%.

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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

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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 Health Care
Relative to:	S&P500	MSCI EAFE	MSCI Emg. Mkts.	Other ETF:

NEUTRAL

Average appreciation potential. A rating of NEUTRAL is assigned to ETFs with ALTAR Scores in the middle quintile (ranking between 40%-60%) of their category. This indicates that valuations adequately reflect the fundamentals of stocks in these funds.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	19.7	%
Divided by: Fwd. P/BV	3.5	x
Less: Expense ratio	8	bp
Equals: ALTAR Score	5.5	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.39	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.