ETF Research Center

The Fidelity MSCI Financials 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 Financials Index.

FUND BASICS
Category	US Equities
Fund Sponsor	FMR LLC
Website	www.fidelity.com
Inception date	Oct 24, 2013
Assets (mns)	$1,105
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	408
Wgt avg mkt cap (mns)	$165,925
Large cap (>$10bn)	83.8%
Mid cap ($2-10bn)	11.8%
Small cap (<$2bn)	4.4%
Developed mkts	100.0%
Emerging mkts	0.0%

TOP TEN HOLDINGS
Total	42.8 %
JPMORGAN CHASE & CO	10.2 %
BANK OF AMERICA CORP	7.1 %
BERKSHIRE HATHAWAY INC-CL B	7.0 %
WELLS FARGO & CO	4.8 %
CITIGROUP INC	4.3 %
AMERICAN EXPRESS CO	2.2 %
US BANCORP	1.9 %
GOLDMAN SACHS GROUP INC	1.9 %
BB&T CORP	1.8 %
CME GROUP INC	1.7 %

TOP COUNTRY EXPOSURE
	UNITED STATES	94.4 %
	BRITAIN	1.9 %
	SWITZERLAND	1.6 %
	BERMUDA	1.6 %
	PUERTO RICO	0.2 %
	CAYMAN ISLANDS	0.1 %

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.
31.6%	31.6%	11.1%	--	12.3%

Market Correlations
versus...	Beta	R-squared
S&P500	1.11	75%
MSCI EAFE	0.99	50%
MSCI Emg. Mkts.	0.67	39%

Technical Indicators
Recent close	$44.81
30d moving avg.	$44.25
Annualized volatility	15.5%
Short interest (ETF)	0.1%
Short interest (Underlying)	2.2%
Relative strength (RSI)	64

Liquidity measures
Avg. volume (thou.)	103
Turnover	0.4%
Bid/Ask (% of price)	0.05%
ADV underlying (mns)	$15,285

Distributions

FINDING ALTERNATIVE FUNDS

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

Benchmark ticker:

FNCL

Expense:

8 bp

ALTAR Score™:

7.1%

ALTERNATIVE ETFs BASED ON OVERLAP WITH FNCL
Ticker	Fund Name	Overlap¹ vs FNCL (%)	Expense ratio (bp)	Savings vs FNCL (bp)	ALTAR Score™ (%)	ALTAR vs FNCL (%)
VFH	Vanguard Financials	98.6	10	-2	7.0	-0.0
XLF	Financials Select Sector SPDR	79.5	13	-5	6.7	-0.4
IEFN	iShares Evolved U.S. Financials	72.2	18	-10	7.1	+0.0
IYF	iShares DJ US Financials	67.8	42	-34	5.8	-1.2
RWW	Invesco S&P Financials Revenue	67.2	45	-37	7.0	-0.1
IYG	iShares DJ US Financial Services	66.5	42	-34	6.1	-1.0
JHMF	John Hancock Multifactor Financials	66.1	40	-32	6.3	-0.8
RYF	Invesco S&P Equal Weight Financials	51.5	40	-32	6.9	-0.1
IXG	iShares S&P Global Financial Sector	48.8	46	-38	8.0	+0.9
KBWB	Invesco KBW Bank Portfolio	37.2	35	-27	7.5	+0.4
FXO	First Trust Financial Alphadex	37.1	63	-55	7.5	+0.5
DFNL	Davis Select Financial	36.4	64	-56	6.6	-0.5
FTXO	First Trust Nasdaq Bank	32.1	60	-52	7.6	+0.5
SPVU	Invesco S&P 500 Value	30.6	13	-5	10.0	+3.0
IWX	iShares Russell Top 200 Value	26.3	20	-12	6.6	-0.5
PWV	Invesco Dynamic Large Cap Value	26.1	55	-47	8.1	+1.0
AMCA	iShares Russell 1000 Pure U.S. Revenue	23.9	15	-7	6.3	-0.8
DUSA	Davis Select U.S. Equity	23.8	63	-55	5.1	-2.0
VONV	Vanguard Russell 1000 Value	23.8	12	-4	6.7	-0.3
KBE	KBW Bank ETF	23.8	35	-27	7.9	+0.9

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

OVERWEIGHT

Above average appreciation potential. A rating of OVERWEIGHT is assigned to ETFs with ALTAR Scores in the 4th quintile (ranking higher than 60%-80%) of their category. Typically, funds in this category consist of stocks trading at attractive valuations and/or having above-average fundamentals.

ALTAR Score™

Calculation of ALTAR Score™
Avg. Return on Equity	10.4	%
Divided by: Fwd. P/BV	1.5	x
Less: Expense ratio	8	bp
Equals: ALTAR Score	7.1	%

More information on ALTAR Score™

MODERN PORTFOLIO THEORY info

CONSENSUS RECOMMENDATIONS: FUND CONSTITUENTS

COMPOSITE RATING	1.62	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.