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 811-21990
Fidelity Commonwealth Trust II
(Exact name of registrant as specified in charter)
245 Summer St., Boston, MA 02210
(Address of principal executive offices) (Zip code)
Cynthia Lo Bessette, 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: | February 28 |
Date of reporting period: | August 31, 2021 |
Item 1.
Reports to Stockholders
Fidelity® Small Cap Enhanced Index Fund
Semi-Annual Report
August 31, 2021
Contents
Board Approval of Investment Advisory Contracts and Management Fees |
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 1-800-544-8544 to request a free copy of the proxy voting guidelines.
The fund is not in any way connected to or sponsored, endorsed, sold or promoted by the London Stock Exchange Group plc and its group undertakings (collectively, the “LSE Group”). The LSE Group does not accept any liability whatsoever to any person arising out of the use of the fund or the underlying data.
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. © 2021 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.
Note to Shareholders:
Early in 2020, the outbreak and spread of COVID-19 emerged as a public health emergency that had a major influence on financial markets, primarily based on its impact on the global economy and corporate earnings. On March 11, 2020, the World Health Organization declared the COVID-19 outbreak a pandemic, citing sustained risk of further global spread. The pandemic prompted a number of measures to limit the spread of COVID-19, including travel and border restrictions, quarantines, and restrictions on large gatherings. In turn, these resulted in lower consumer activity, diminished demand for a wide range of products and services, disruption in manufacturing and supply chains, and – given the wide variability in outcomes regarding the outbreak – significant market uncertainty and volatility. To help stem the turmoil, the U.S. government took unprecedented action – in concert with the U.S. Federal Reserve and central banks around the world – to help support consumers, businesses, and the broader economy, and to limit disruption to the financial system.
In general, the overall impact of the pandemic lessened in 2021, amid a resilient economy and widespread distribution of three COVID-19 vaccines granted emergency use authorization from the U.S. Food and Drug Administration (FDA) early in the year. Still, the situation remains dynamic, and the extent and duration of its influence on financial markets and the economy is highly uncertain, due in part to a recent spike in cases based on highly contagious variants of the coronavirus.
Extreme events such as the COVID-19 crisis are exogenous shocks that can have significant adverse effects on mutual funds and their investments. Although multiple asset classes may be affected by market disruption, the duration and impact may not be the same for all types of assets. Fidelity is committed to helping you stay informed amid news about COVID-19 and during increased market volatility, and we continue to take extra steps to be responsive to customer needs. We encourage you to visit us online, where we offer ongoing updates, commentary, and analysis on the markets and our funds.
Investment Summary (Unaudited)
Top Ten Stocks as of August 31, 2021
% of fund's net assets | |
Synaptics, Inc. | 0.8 |
EMCOR Group, Inc. | 0.7 |
Scientific Games Corp. Class A | 0.7 |
National Storage Affiliates Trust | 0.7 |
AMC Entertainment Holdings, Inc. Class A | 0.7 |
Lattice Semiconductor Corp. | 0.7 |
Atkore, Inc. | 0.7 |
CommVault Systems, Inc. | 0.7 |
Agree Realty Corp. | 0.6 |
Box, Inc. Class A | 0.6 |
6.9 |
Top Market Sectors as of August 31, 2021
% of fund's net assets | |
Health Care | 19.9 |
Information Technology | 15.3 |
Financials | 14.6 |
Industrials | 14.4 |
Consumer Discretionary | 11.6 |
Real Estate | 7.4 |
Energy | 4.3 |
Materials | 3.8 |
Communication Services | 3.6 |
Consumer Staples | 1.8 |
Asset Allocation (% of fund's net assets)
As of August 31, 2021* | ||
Stocks and Equity Futures | 100.0% |
* Foreign investments - 4.9%
Schedule of Investments August 31, 2021 (Unaudited)
Showing Percentage of Net Assets
Common Stocks - 98.0% | |||
Shares | Value | ||
COMMUNICATION SERVICES - 3.6% | |||
Diversified Telecommunication Services - 1.2% | |||
Bandwidth, Inc. (a) | 7,049 | $725,342 | |
Cogent Communications Group, Inc. (b) | 31,311 | 2,272,552 | |
Consolidated Communications Holdings, Inc. (a) | 104,175 | 965,702 | |
Iridium Communications, Inc. (a)(b) | 62,166 | 2,767,009 | |
Liberty Latin America Ltd. Class C (a)(b) | 34,245 | 492,786 | |
Ooma, Inc. (a) | 83,256 | 1,581,864 | |
8,805,255 | |||
Entertainment - 1.0% | |||
AMC Entertainment Holdings, Inc. Class A (a)(b) | 107,972 | 5,088,720 | |
Lions Gate Entertainment Corp.: | |||
Class A (a)(b) | 76,230 | 984,892 | |
Class B (a) | 86,511 | 1,017,369 | |
7,090,981 | |||
Interactive Media & Services - 0.5% | |||
fuboTV, Inc. (a)(b) | 18,147 | 528,985 | |
TrueCar, Inc. (a) | 216,791 | 910,522 | |
Yelp, Inc. (a)(b) | 52,353 | 2,016,114 | |
Zedge, Inc. (a) | 20,492 | 320,495 | |
3,776,116 | |||
Media - 0.5% | |||
AMC Networks, Inc. Class A (a)(b) | 27,468 | 1,305,554 | |
iHeartMedia, Inc. (a) | 17,035 | 423,831 | |
TechTarget, Inc. (a) | 4,625 | 391,183 | |
Tegna, Inc. | 10,526 | 186,521 | |
WideOpenWest, Inc. (a) | 80,666 | 1,711,733 | |
4,018,822 | |||
Wireless Telecommunication Services - 0.4% | |||
Gogo, Inc. (a) | 119,183 | 1,603,011 | |
Telephone & Data Systems, Inc. | 66,383 | 1,348,903 | |
2,951,914 | |||
TOTAL COMMUNICATION SERVICES | 26,643,088 | ||
CONSUMER DISCRETIONARY - 11.6% | |||
Auto Components - 0.3% | |||
Cooper-Standard Holding, Inc. (a) | 8,017 | 186,636 | |
Modine Manufacturing Co. (a) | 66,885 | 832,049 | |
Tenneco, Inc. (a) | 52,848 | 824,429 | |
Visteon Corp. (a) | 1,950 | 206,076 | |
2,049,190 | |||
Automobiles - 0.1% | |||
Fisker, Inc. (a) | 13,093 | 182,647 | |
Winnebago Industries, Inc. | 7,463 | 519,574 | |
702,221 | |||
Diversified Consumer Services - 0.8% | |||
2U, Inc. (a)(b) | 81,646 | 3,023,351 | |
Adtalem Global Education, Inc. (a) | 30,592 | 1,131,904 | |
American Public Education, Inc. (a)(b) | 13,696 | 360,205 | |
Stride, Inc. (a)(b) | 52,274 | 1,789,862 | |
6,305,322 | |||
Hotels, Restaurants & Leisure - 2.5% | |||
Bloomin' Brands, Inc. (a)(b) | 88,729 | 2,377,050 | |
Del Taco Restaurants, Inc. | 46,902 | 412,738 | |
GAN Ltd. (a)(b) | 30,757 | 525,945 | |
Hilton Grand Vacations, Inc. (a) | 4,147 | 181,182 | |
International Game Technology PLC (a) | 79,415 | 1,706,628 | |
Papa John's International, Inc. | 5,667 | 722,713 | |
RCI Hospitality Holdings, Inc. (b) | 9,647 | 623,293 | |
Red Rock Resorts, Inc. (a)(b) | 9,843 | 460,751 | |
Scientific Games Corp. Class A (a) | 71,012 | 5,137,718 | |
Shake Shack, Inc. Class A (a)(b) | 26,897 | 2,333,315 | |
Wingstop, Inc. (b) | 22,935 | 3,943,215 | |
18,424,548 | |||
Household Durables - 2.3% | |||
Cavco Industries, Inc. (a) | 5,731 | 1,464,271 | |
Century Communities, Inc. | 13,054 | 915,085 | |
Flexsteel Industries, Inc. (b) | 18,297 | 638,931 | |
GoPro, Inc. Class A (a) | 104,275 | 1,039,622 | |
Green Brick Partners, Inc. (a)(b) | 37,643 | 940,699 | |
Installed Building Products, Inc. | 6,958 | 864,044 | |
KB Home | 7,372 | 317,217 | |
M.D.C. Holdings, Inc. (b) | 44,055 | 2,301,874 | |
M/I Homes, Inc. (a) | 48,792 | 3,141,717 | |
Meritage Homes Corp. (a) | 16,389 | 1,828,029 | |
TopBuild Corp. (a) | 9,304 | 2,035,622 | |
TRI Pointe Homes, Inc. (a) | 74,574 | 1,772,624 | |
17,259,735 | |||
Internet & Direct Marketing Retail - 1.0% | |||
Overstock.com, Inc. (a)(b) | 6,367 | 459,379 | |
Quotient Technology, Inc. (a) | 157,756 | 1,145,309 | |
Revolve Group, Inc. (a) | 16,412 | 943,034 | |
Shutterstock, Inc. | 33,193 | 3,825,825 | |
Stamps.com, Inc. (a) | 2,162 | 711,082 | |
Stitch Fix, Inc. (a) | 13,543 | 567,587 | |
7,652,216 | |||
Leisure Products - 1.0% | |||
Johnson Outdoors, Inc. Class A (b) | 16,123 | 1,850,759 | |
Malibu Boats, Inc. Class A (a) | 5,967 | 427,237 | |
Smith & Wesson Brands, Inc. | 55,914 | 1,349,205 | |
Sturm, Ruger & Co., Inc. | 17,691 | 1,383,259 | |
Vista Outdoor, Inc. (a) | 56,053 | 2,289,765 | |
7,300,225 | |||
Multiline Retail - 0.3% | |||
Big Lots, Inc. (b) | 5,026 | 244,565 | |
Dillard's, Inc. Class A (b) | 4,570 | 870,402 | |
Macy's, Inc. (b) | 61,689 | 1,381,217 | |
2,496,184 | |||
Specialty Retail - 2.8% | |||
Abercrombie & Fitch Co. Class A (a) | 22,783 | 814,720 | |
Academy Sports & Outdoors, Inc. | 33,145 | 1,467,329 | |
Asbury Automotive Group, Inc. (a)(b) | 11,432 | 2,129,096 | |
Bed Bath & Beyond, Inc. (a)(b) | 12,841 | 353,641 | |
Group 1 Automotive, Inc. (b) | 21,501 | 3,557,125 | |
Hibbett, Inc. | 16,412 | 1,570,464 | |
Lithia Motors, Inc. Class A (sub. vtg.) | 894 | 296,182 | |
Murphy U.S.A., Inc. | 8,494 | 1,318,948 | |
Rent-A-Center, Inc. | 67,232 | 4,240,995 | |
Shoe Carnival, Inc. (b) | 47,415 | 1,815,046 | |
Signet Jewelers Ltd. | 13,146 | 1,041,163 | |
Sonic Automotive, Inc. Class A (sub. vtg.) (b) | 46,564 | 2,353,345 | |
20,958,054 | |||
Textiles, Apparel & Luxury Goods - 0.5% | |||
Crocs, Inc. (a) | 12,070 | 1,723,837 | |
Deckers Outdoor Corp. (a) | 601 | 251,488 | |
Kontoor Brands, Inc. (b) | 10,063 | 542,999 | |
Lakeland Industries, Inc. (a)(b) | 23,640 | 564,287 | |
Rocky Brands, Inc. | 7,381 | 366,688 | |
3,449,299 | |||
TOTAL CONSUMER DISCRETIONARY | 86,596,994 | ||
CONSUMER STAPLES - 1.8% | |||
Beverages - 0.4% | |||
Celsius Holdings, Inc. (a) | 3,107 | 254,028 | |
Coca-Cola Bottling Co. Consolidated | 2,856 | 1,159,993 | |
MGP Ingredients, Inc. (b) | 7,086 | 462,716 | |
Primo Water Corp. (b) | 77,548 | 1,377,252 | |
3,253,989 | |||
Food & Staples Retailing - 0.5% | |||
BJ's Wholesale Club Holdings, Inc. (a) | 11,267 | 638,388 | |
Ingles Markets, Inc. Class A | 14,824 | 1,006,401 | |
Natural Grocers by Vitamin Cottage, Inc. | 22,015 | 266,161 | |
PriceSmart, Inc. | 7,420 | 627,806 | |
Sprouts Farmers Market LLC (a) | 24,351 | 606,340 | |
Weis Markets, Inc. (b) | 6,874 | 391,474 | |
3,536,570 | |||
Food Products - 0.2% | |||
Darling Ingredients, Inc. (a) | 5,110 | 380,695 | |
John B. Sanfilippo & Son, Inc. | 7,169 | 609,293 | |
Sanderson Farms, Inc. | 985 | 193,553 | |
1,183,541 | |||
Household Products - 0.0% | |||
Central Garden & Pet Co. (a) | 2,397 | 110,382 | |
Central Garden & Pet Co. Class A (non-vtg.) (a) | 4,547 | 189,473 | |
299,855 | |||
Personal Products - 0.6% | |||
MediFast, Inc. | 9,039 | 2,059,988 | |
Nu Skin Enterprises, Inc. Class A | 37,049 | 1,875,420 | |
USANA Health Sciences, Inc. (a)(b) | 9,621 | 933,526 | |
4,868,934 | |||
Tobacco - 0.1% | |||
Vector Group Ltd. | 32,898 | 494,128 | |
TOTAL CONSUMER STAPLES | 13,637,017 | ||
ENERGY - 4.3% | |||
Energy Equipment & Services - 0.8% | |||
Archrock, Inc. (b) | 74,095 | 569,050 | |
Helix Energy Solutions Group, Inc. (a)(b) | 216,910 | 815,582 | |
Helmerich & Payne, Inc. (b) | 8,249 | 222,063 | |
Nabors Industries Ltd. (a)(b) | 27,460 | 2,315,976 | |
Nabors Industries Ltd. warrants 6/11/26 (a) | 10,764 | 62,431 | |
Oceaneering International, Inc. (a) | 113,547 | 1,396,628 | |
Oil States International, Inc. (a) | 63,538 | 372,333 | |
U.S. Silica Holdings, Inc. (a) | 64,798 | 568,926 | |
6,322,989 | |||
Oil, Gas & Consumable Fuels - 3.5% | |||
Antero Resources Corp. (a) | 56,686 | 777,732 | |
Bonanza Creek Energy, Inc. | 14,170 | 550,930 | |
Centennial Resource Development, Inc. Class A (a)(b) | 114,584 | 584,378 | |
CNX Resources Corp. (a) | 36,772 | 417,730 | |
Comstock Resources, Inc. (a) | 183,091 | 1,082,068 | |
DHT Holdings, Inc. | 155,266 | 858,621 | |
Earthstone Energy, Inc. (a) | 17,697 | 146,354 | |
Golar LNG Ltd. (a) | 74,511 | 838,249 | |
Green Plains, Inc. (a)(b) | 10,786 | 378,589 | |
International Seaways, Inc. (b) | 54,111 | 930,709 | |
Kosmos Energy Ltd. (a)(b) | 539,469 | 1,273,147 | |
Magnolia Oil & Gas Corp. Class A | 54,064 | 847,724 | |
Matador Resources Co. (b) | 69,323 | 1,993,036 | |
Meta Materials, Inc. (a)(b) | 114,110 | 530,612 | |
Murphy Oil Corp. | 17,712 | 376,557 | |
Nordic American Tanker Shipping Ltd. (b) | 175,191 | 415,203 | |
PBF Energy, Inc. Class A (a)(b) | 105,980 | 1,102,192 | |
Peabody Energy Corp. (a)(b) | 59,235 | 946,575 | |
Penn Virginia Corp. (a)(b) | 14,178 | 293,485 | |
Range Resources Corp. (a) | 55,631 | 813,325 | |
Renewable Energy Group, Inc. (a) | 35,093 | 1,699,203 | |
Scorpio Tankers, Inc. | 18,738 | 303,743 | |
SFL Corp. Ltd. | 401,173 | 3,221,419 | |
SM Energy Co. | 156,920 | 2,997,172 | |
Talos Energy, Inc. (a)(b) | 30,092 | 373,141 | |
Tellurian, Inc. (a)(b) | 201,906 | 644,080 | |
Uranium Energy Corp. (a)(b) | 291,392 | 731,394 | |
W&T Offshore, Inc. (a)(b) | 264,496 | 862,257 | |
World Fuel Services Corp. | 6,684 | 216,294 | |
26,205,919 | |||
TOTAL ENERGY | 32,528,908 | ||
FINANCIALS - 14.6% | |||
Banks - 6.6% | |||
1st Source Corp. | 14,701 | 690,947 | |
Banc of California, Inc. (b) | 64,231 | 1,154,231 | |
BancFirst Corp. | 40,474 | 2,289,209 | |
Berkshire Hills Bancorp, Inc. | 15,517 | 397,701 | |
Capital City Bank Group, Inc. | 2,442 | 56,630 | |
Cathay General Bancorp | 52,804 | 2,100,543 | |
CIT Group, Inc. (b) | 8,257 | 457,603 | |
Community Trust Bancorp, Inc. | 8,634 | 359,692 | |
Eagle Bancorp, Inc. | 3,739 | 215,740 | |
Financial Institutions, Inc. | 18,529 | 588,481 | |
First Bancorp, Puerto Rico | 207,257 | 2,638,382 | |
First Commonwealth Financial Corp. | 21,662 | 292,870 | |
First Financial Bankshares, Inc. (b) | 62,494 | 2,975,964 | |
First Interstate Bancsystem, Inc. | 17,014 | 749,637 | |
Flushing Financial Corp. | 6,893 | 158,056 | |
Fulton Financial Corp. | 193,784 | 3,071,476 | |
Glacier Bancorp, Inc. | 67,079 | 3,572,628 | |
Great Southern Bancorp, Inc. | 27,687 | 1,508,111 | |
Great Western Bancorp, Inc. | 7,727 | 239,228 | |
Hancock Whitney Corp. | 79,464 | 3,652,165 | |
Hilltop Holdings, Inc. | 80,679 | 2,700,326 | |
Independent Bank Group, Inc. (b) | 15,086 | 1,062,507 | |
International Bancshares Corp. | 78,828 | 3,301,317 | |
Investors Bancorp, Inc. | 5,038 | 72,094 | |
Lakeland Financial Corp. (b) | 10,767 | 715,036 | |
Mercantile Bank Corp. | 3,473 | 108,358 | |
Midland States Bancorp, Inc. | 11,254 | 284,726 | |
Nicolet Bankshares, Inc. (a)(b) | 3,042 | 232,439 | |
OFG Bancorp | 48,585 | 1,156,809 | |
Park National Corp. | 4,527 | 530,745 | |
Peapack-Gladstone Financial Corp. | 13,620 | 453,682 | |
Sandy Spring Bancorp, Inc. (b) | 9,451 | 411,780 | |
ServisFirst Bancshares, Inc. | 13,902 | 1,020,685 | |
Sierra Bancorp | 17,630 | 448,155 | |
Silvergate Capital Corp. (a) | 7,151 | 807,920 | |
Southside Bancshares, Inc. | 12,823 | 483,299 | |
Texas Capital Bancshares, Inc. (a) | 6,557 | 445,810 | |
Tompkins Financial Corp. | 5,096 | 405,591 | |
Trico Bancshares | 9,000 | 355,950 | |
Trustmark Corp. (b) | 14,991 | 474,015 | |
UMB Financial Corp. | 26,349 | 2,413,041 | |
United Community Bank, Inc. | 48,910 | 1,475,615 | |
Univest Corp. of Pennsylvania | 15,294 | 414,162 | |
Valley National Bancorp | 87,612 | 1,142,460 | |
Washington Trust Bancorp, Inc. | 4,627 | 246,434 | |
WesBanco, Inc. (b) | 27,481 | 934,354 | |
49,266,604 | |||
Capital Markets - 3.0% | |||
Artisan Partners Asset Management, Inc. | 88,638 | 4,605,630 | |
B. Riley Financial, Inc. (b) | 5,999 | 393,174 | |
Cohen & Steers, Inc. | 31,946 | 2,801,984 | |
Cowen Group, Inc. Class A (b) | 13,555 | 488,522 | |
Donnelley Financial Solutions, Inc. (a)(b) | 6,163 | 205,536 | |
Federated Hermes, Inc. | 88,408 | 2,990,843 | |
Focus Financial Partners, Inc. Class A (a) | 40,646 | 2,108,714 | |
Oppenheimer Holdings, Inc. Class A (non-vtg.) (b) | 45,246 | 2,108,011 | |
Piper Jaffray Companies | 12,957 | 1,851,814 | |
Stifel Financial Corp. | 43,009 | 2,971,922 | |
StoneX Group, Inc. (a) | 24,704 | 1,721,622 | |
22,247,772 | |||
Consumer Finance - 1.5% | |||
Green Dot Corp. Class A (a)(b) | 64,525 | 3,370,786 | |
LendingClub Corp. (a) | 61,629 | 1,914,197 | |
Nelnet, Inc. Class A | 44,932 | 3,634,100 | |
PRA Group, Inc. (a)(b) | 30,515 | 1,281,630 | |
PROG Holdings, Inc. | 11,934 | 564,717 | |
Regional Management Corp. | 6,688 | 397,468 | |
11,162,898 | |||
Diversified Financial Services - 0.0% | |||
Marlin Business Services Corp. | 20,562 | 457,505 | |
Insurance - 1.7% | |||
Amerisafe, Inc. | 21,852 | 1,257,583 | |
Crawford & Co. Class B | 903 | 8,533 | |
Employers Holdings, Inc. | 10,732 | 441,836 | |
Horace Mann Educators Corp. | 30,012 | 1,230,492 | |
MetroMile, Inc. (a)(b) | 85,580 | 342,320 | |
ProAssurance Corp. | 19,189 | 489,320 | |
Selective Insurance Group, Inc. | 49,171 | 4,109,220 | |
Trupanion, Inc. (a)(b) | 49,927 | 4,572,315 | |
12,451,619 | |||
Mortgage Real Estate Investment Trusts - 0.9% | |||
Apollo Commercial Real Estate Finance, Inc. | 78,354 | 1,218,405 | |
Arbor Realty Trust, Inc. | 154,969 | 2,832,833 | |
Blackstone Mortgage Trust, Inc. | 7,662 | 251,390 | |
BrightSpire Capital, Inc. | 20,591 | 206,322 | |
Granite Point Mortgage Trust, Inc. | 17,792 | 244,818 | |
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 32,680 | 1,972,892 | |
Invesco Mortgage Capital, Inc. | 127,321 | 397,242 | |
7,123,902 | |||
Thrifts & Mortgage Finance - 0.9% | |||
Essent Group Ltd. | 9,320 | 438,786 | |
Federal Agricultural Mortgage Corp. Class C (non-vtg.) | 10,327 | 1,011,013 | |
Northwest Bancshares, Inc. | 71,402 | 929,654 | |
Premier Financial Corp. (b) | 11,144 | 338,778 | |
Radian Group, Inc. | 99,827 | 2,358,912 | |
Washington Federal, Inc. | 38,307 | 1,275,623 | |
Waterstone Financial, Inc. | 34,548 | 700,633 | |
7,053,399 | |||
TOTAL FINANCIALS | 109,763,699 | ||
HEALTH CARE - 19.9% | |||
Biotechnology - 10.1% | |||
Adverum Biotechnologies, Inc. (a)(b) | 173,968 | 422,742 | |
Affimed NV (a) | 81,785 | 575,766 | |
Agenus, Inc. (a)(b) | 153,334 | 946,071 | |
Agios Pharmaceuticals, Inc. (a)(b) | 26,256 | 1,173,118 | |
Akebia Therapeutics, Inc. (a)(b) | 142,905 | 420,141 | |
Alkermes PLC (a)(b) | 56,441 | 1,764,346 | |
Allakos, Inc. (a) | 4,157 | 370,638 | |
Allogene Therapeutics, Inc. (a)(b) | 17,284 | 412,223 | |
ALX Oncology Holdings, Inc. (a)(b) | 7,779 | 544,530 | |
Amicus Therapeutics, Inc. (a) | 52,198 | 594,535 | |
AnaptysBio, Inc. (a)(b) | 16,483 | 422,130 | |
Anavex Life Sciences Corp. (a)(b) | 28,899 | 563,242 | |
Anika Therapeutics, Inc. (a) | 8,145 | 351,294 | |
Apellis Pharmaceuticals, Inc. (a) | 21,413 | 1,410,046 | |
Arbutus Biopharma Corp. (a)(b) | 105,053 | 360,332 | |
Arcturus Therapeutics Holdings, Inc. (a)(b) | 8,078 | 442,755 | |
Arcus Biosciences, Inc. (a)(b) | 17,002 | 495,948 | |
Arena Pharmaceuticals, Inc. (a) | 10,544 | 557,988 | |
Arrowhead Pharmaceuticals, Inc. (a) | 21,447 | 1,439,523 | |
Assembly Biosciences, Inc. (a) | 88,168 | 335,038 | |
Atara Biotherapeutics, Inc. (a) | 40,902 | 612,712 | |
Athersys, Inc. (a)(b) | 163,380 | 274,478 | |
Atreca, Inc. (a)(b) | 71,252 | 418,249 | |
AVROBIO, Inc. (a) | 31,407 | 209,171 | |
Beam Therapeutics, Inc. (a)(b) | 17,643 | 1,956,962 | |
BioCryst Pharmaceuticals, Inc. (a)(b) | 33,890 | 539,529 | |
Biohaven Pharmaceutical Holding Co. Ltd. (a) | 10,743 | 1,409,911 | |
BioXcel Therapeutics, Inc. (a) | 10,726 | 315,881 | |
bluebird bio, Inc. (a)(b) | 30,692 | 561,664 | |
Blueprint Medicines Corp. (a) | 11,473 | 1,070,087 | |
BridgeBio Pharma, Inc. (a)(b) | 21,270 | 1,065,840 | |
C4 Therapeutics, Inc. | 18,643 | 748,144 | |
Calithera Biosciences, Inc. (a)(b) | 94,521 | 231,576 | |
CareDx, Inc. (a) | 8,193 | 600,383 | |
Catalyst Biosciences, Inc. (a) | 41,797 | 191,430 | |
Catalyst Pharmaceutical Partners, Inc. (a) | 124,637 | 686,750 | |
Chimerix, Inc. (a) | 90,011 | 639,078 | |
Clovis Oncology, Inc. (a)(b) | 86,036 | 414,694 | |
Coherus BioSciences, Inc. (a)(b) | 38,070 | 608,359 | |
Concert Pharmaceuticals, Inc. (a)(b) | 56,409 | 213,790 | |
Corbus Pharmaceuticals Holdings, Inc. (a) | 248,721 | 320,850 | |
Cortexyme, Inc. (a)(b) | 1,487 | 143,198 | |
Cue Biopharma, Inc. (a)(b) | 14,110 | 169,179 | |
Curis, Inc. (a)(b) | 55,807 | 493,892 | |
Cytokinetics, Inc. (a)(b) | 7,996 | 263,628 | |
CytomX Therapeutics, Inc. (a)(b) | 70,291 | 359,890 | |
Deciphera Pharmaceuticals, Inc. (a)(b) | 13,203 | 415,895 | |
Denali Therapeutics, Inc. (a) | 17,767 | 945,204 | |
Eagle Pharmaceuticals, Inc. (a)(b) | 7,987 | 426,266 | |
Editas Medicine, Inc. (a)(b) | 25,098 | 1,595,982 | |
Eiger Biopharmaceuticals, Inc. (a) | 20,599 | 167,676 | |
Emergent BioSolutions, Inc. (a) | 19,152 | 1,208,108 | |
Epizyme, Inc. (a)(b) | 89,585 | 462,259 | |
Fate Therapeutics, Inc. (a)(b) | 22,691 | 1,662,116 | |
FibroGen, Inc. (a)(b) | 47,225 | 549,227 | |
Flexion Therapeutics, Inc. (a)(b) | 58,767 | 351,427 | |
Fortress Biotech, Inc. (a) | 54,189 | 178,282 | |
Global Blood Therapeutics, Inc. (a)(b) | 27,392 | 785,876 | |
Gossamer Bio, Inc. (a)(b) | 35,737 | 355,226 | |
Gritstone Bio, Inc. (a)(b) | 38,908 | 357,954 | |
Gt Biopharma, Inc. (a) | 26,827 | 238,492 | |
Halozyme Therapeutics, Inc. (a) | 48,220 | 2,024,758 | |
Harpoon Therapeutics, Inc. (a)(b) | 42,867 | 406,379 | |
Heron Therapeutics, Inc. (a)(b) | 49,008 | 571,923 | |
Homology Medicines, Inc. (a)(b) | 29,391 | 211,321 | |
ImmunoGen, Inc. (a) | 126,027 | 762,463 | |
Immunovant, Inc. (a)(b) | 38,293 | 331,617 | |
Infinity Pharmaceuticals, Inc. (a)(b) | 169,523 | 600,111 | |
Insmed, Inc. (a) | 18,592 | 521,320 | |
Intellia Therapeutics, Inc. (a) | 19,800 | 3,178,494 | |
Intercept Pharmaceuticals, Inc. (a)(b) | 28,209 | 420,596 | |
Invitae Corp. (a)(b) | 56,043 | 1,660,554 | |
Ironwood Pharmaceuticals, Inc. Class A (a)(b) | 77,256 | 1,012,054 | |
Jounce Therapeutics, Inc. (a)(b) | 30,159 | 187,589 | |
Karuna Therapeutics, Inc. (a) | 1,827 | 217,230 | |
Karyopharm Therapeutics, Inc. (a)(b) | 91,693 | 531,819 | |
Kiniksa Pharmaceuticals Ltd. (a)(b) | 33,545 | 421,996 | |
Kodiak Sciences, Inc. (a)(b) | 5,428 | 511,209 | |
La Jolla Pharmaceutical Co. (a)(b) | 58,403 | 245,877 | |
Lexicon Pharmaceuticals, Inc. (a)(b) | 79,058 | 373,154 | |
Ligand Pharmaceuticals, Inc. Class B (a)(b) | 1,933 | 255,736 | |
Macrogenics, Inc. (a)(b) | 29,516 | 696,873 | |
Madrigal Pharmaceuticals, Inc. (a)(b) | 6,675 | 552,356 | |
Minerva Neurosciences, Inc. (a)(b) | 113,073 | 208,054 | |
Mirati Therapeutics, Inc. (a) | 3,839 | 651,593 | |
Molecular Templates, Inc. (a) | 16,983 | 110,729 | |
Mustang Bio, Inc. (a)(b) | 69,880 | 212,435 | |
Myriad Genetics, Inc. (a) | 23,240 | 831,527 | |
Natera, Inc. (a) | 6,577 | 778,914 | |
Novavax, Inc. (a) | 2,949 | 703,454 | |
Ocugen, Inc. (a)(b) | 58,104 | 441,009 | |
Oncternal Therapeutics, Inc. rights (a)(c) | 1,148 | 0 | |
Opko Health, Inc. (a)(b) | 189,351 | 730,895 | |
ORIC Pharmaceuticals, Inc. (a)(b) | 16,662 | 368,064 | |
Ovid Therapeutics, Inc. (a)(b) | 59,108 | 208,651 | |
Pieris Pharmaceuticals, Inc. (a)(b) | 81,145 | 437,372 | |
Praxis Precision Medicines, Inc. | 12,843 | 255,190 | |
Precigen, Inc. (a)(b) | 80,881 | 489,330 | |
Precision BioSciences, Inc. (a)(b) | 34,886 | 438,517 | |
Protagonist Therapeutics, Inc. (a)(b) | 5,199 | 252,152 | |
Prothena Corp. PLC (a) | 2,456 | 164,847 | |
PTC Therapeutics, Inc. (a) | 24,489 | 1,068,945 | |
Puma Biotechnology, Inc. (a)(b) | 41,309 | 312,709 | |
Radius Health, Inc. (a) | 28,614 | 396,590 | |
RAPT Therapeutics, Inc. (a) | 8,963 | 293,090 | |
REGENXBIO, Inc. (a) | 9,230 | 298,129 | |
Rigel Pharmaceuticals, Inc. (a)(b) | 123,558 | 469,520 | |
Rubius Therapeutics, Inc. (a)(b) | 13,791 | 299,541 | |
Sana Biotechnology, Inc. (b) | 14,999 | 359,826 | |
Sangamo Therapeutics, Inc. (a) | 56,207 | 557,011 | |
Selecta Biosciences, Inc. (a)(b) | 85,524 | 371,174 | |
Seres Therapeutics, Inc. (a) | 62,770 | 402,356 | |
Solid Biosciences, Inc. (a) | 50,858 | 137,825 | |
Springworks Therapeutics, Inc. (a)(b) | 2,228 | 167,323 | |
Surface Oncology, Inc. (a)(b) | 60,289 | 381,629 | |
Syndax Pharmaceuticals, Inc. (a)(b) | 16,506 | 288,690 | |
TG Therapeutics, Inc. (a)(b) | 42,959 | 1,162,900 | |
Travere Therapeutics, Inc. (a) | 32,838 | 716,854 | |
Turning Point Therapeutics, Inc. (a) | 6,954 | 535,597 | |
Twist Bioscience Corp. (a)(b) | 14,901 | 1,686,942 | |
Ultragenyx Pharmaceutical, Inc. (a) | 7,954 | 765,891 | |
Vanda Pharmaceuticals, Inc. (a)(b) | 33,738 | 564,774 | |
Veracyte, Inc. (a)(b) | 10,799 | 519,540 | |
Vericel Corp. (a) | 4,534 | 245,607 | |
Vir Biotechnology, Inc. (a) | 23,439 | 1,208,046 | |
Voyager Therapeutics, Inc. (a)(b) | 31,223 | 101,787 | |
Xbiotech, Inc. | 12,960 | 206,971 | |
Xencor, Inc. (a)(b) | 8,121 | 275,058 | |
Zentalis Pharmaceuticals, Inc. (a) | 10,198 | 695,402 | |
75,289,610 | |||
Health Care Equipment & Supplies - 3.5% | |||
Accuray, Inc. (a)(b) | 188,629 | 767,720 | |
Alphatec Holdings, Inc. (a) | 81,415 | 1,178,889 | |
Atricure, Inc. (a) | 31,084 | 2,288,404 | |
Butterfly Network, Inc. Class A (a)(b) | 35,436 | 437,989 | |
Cardiovascular Systems, Inc. (a) | 59,866 | 2,142,604 | |
Cerus Corp. (a)(b) | 205,077 | 1,322,747 | |
CryoPort, Inc. (a) | 3,970 | 252,373 | |
Cutera, Inc. (a)(b) | 9,361 | 465,616 | |
Inari Medical, Inc. (a) | 3,481 | 284,955 | |
Integer Holdings Corp. (a)(b) | 8,799 | 869,253 | |
Invacare Corp. (a)(b) | 23,957 | 202,676 | |
iRhythm Technologies, Inc. (a) | 21,975 | 1,050,405 | |
Lantheus Holdings, Inc. (a) | 56,080 | 1,478,830 | |
LeMaitre Vascular, Inc. (b) | 12,940 | 732,663 | |
LivaNova PLC (a) | 4,068 | 336,383 | |
Meridian Bioscience, Inc. (a) | 56,754 | 1,148,701 | |
Novocure Ltd. (a) | 5,161 | 692,658 | |
Ortho Clinical Diagnostics Holdings PLC | 122,646 | 2,506,884 | |
Orthofix International NV (a) | 21,423 | 908,335 | |
OrthoPediatrics Corp. (a) | 9,974 | 699,177 | |
Shockwave Medical, Inc. (a) | 4,525 | 969,300 | |
Staar Surgical Co. (a) | 10,710 | 1,654,374 | |
SurModics, Inc. (a) | 44,575 | 2,677,620 | |
Tandem Diabetes Care, Inc. (a) | 7,532 | 844,864 | |
25,913,420 | |||
Health Care Providers & Services - 2.6% | |||
AdaptHealth Corp. (a) | 14,583 | 350,575 | |
Amedisys, Inc. (a) | 2,472 | 453,488 | |
Brookdale Senior Living, Inc. (a) | 139,790 | 1,020,467 | |
Corvel Corp. (a)(b) | 18,463 | 3,042,887 | |
Fulgent Genetics, Inc. (a)(b) | 6,579 | 600,268 | |
Modivcare, Inc. (a) | 9,247 | 1,824,063 | |
National Healthcare Corp. | 27,159 | 2,005,692 | |
Owens & Minor, Inc. | 13,802 | 514,539 | |
Patterson Companies, Inc. | 40,454 | 1,239,511 | |
Select Medical Holdings Corp. | 110,066 | 3,804,982 | |
Tenet Healthcare Corp. (a) | 54,965 | 4,141,613 | |
The Ensign Group, Inc. | 6,190 | 505,537 | |
19,503,622 | |||
Health Care Technology - 1.5% | |||
Allscripts Healthcare Solutions, Inc. (a)(b) | 242,598 | 3,726,305 | |
American Well Corp. | 75,521 | 808,830 | |
Castlight Health, Inc. Class B (a) | 173,219 | 313,526 | |
HealthStream, Inc. (a) | 20,733 | 630,076 | |
Inspire Medical Systems, Inc. (a) | 4,984 | 1,114,223 | |
Nextgen Healthcare, Inc. (a) | 168,234 | 2,567,251 | |
OptimizeRx Corp. (a)(b) | 18,057 | 1,195,012 | |
Phreesia, Inc. (a) | 11,910 | 852,161 | |
Schrodinger, Inc. (a) | 4,942 | 294,988 | |
11,502,372 | |||
Life Sciences Tools & Services - 0.9% | |||
Berkeley Lights, Inc. (a)(b) | 19,858 | 706,150 | |
Fluidigm Corp. (a)(b) | 50,336 | 362,923 | |
Medpace Holdings, Inc. (a) | 10,951 | 1,996,915 | |
Nanostring Technologies, Inc. (a)(b) | 16,500 | 960,300 | |
NeoGenomics, Inc. (a)(b) | 21,075 | 1,024,667 | |
Pacific Biosciences of California, Inc. (a) | 51,112 | 1,600,317 | |
Quanterix Corp. (a) | 8,297 | 423,562 | |
7,074,834 | |||
Pharmaceuticals - 1.3% | |||
Amneal Pharmaceuticals, Inc. (a)(b) | 77,432 | 436,716 | |
Amphastar Pharmaceuticals, Inc. (a) | 24,292 | 477,581 | |
Arvinas Holding Co. LLC (a) | 7,091 | 611,315 | |
Atea Pharmaceuticals, Inc. | 4,788 | 142,299 | |
Cara Therapeutics, Inc. (a)(b) | 37,388 | 589,983 | |
Cassava Sciences, Inc. (a)(b) | 6,742 | 383,283 | |
Corcept Therapeutics, Inc. (a)(b) | 36,938 | 786,041 | |
Endo International PLC (a) | 159,886 | 366,139 | |
Esperion Therapeutics, Inc. (a)(b) | 24,355 | 317,102 | |
Intra-Cellular Therapies, Inc. (a) | 8,719 | 289,471 | |
Liquidia Technologies, Inc. (a) | 49,712 | 132,731 | |
NGM Biopharmaceuticals, Inc. (a) | 14,175 | 309,440 | |
Odonate Therapeutics, Inc. (a) | 72,556 | 251,769 | |
Pacira Biosciences, Inc. (a) | 15,300 | 907,137 | |
Prestige Brands Holdings, Inc. (a) | 18,756 | 1,076,407 | |
Reata Pharmaceuticals, Inc. (a)(b) | 4,230 | 450,537 | |
Supernus Pharmaceuticals, Inc. (a) | 25,838 | 711,320 | |
Theravance Biopharma, Inc. (a) | 57,914 | 480,686 | |
WAVE Life Sciences (a)(b) | 41,740 | 264,214 | |
Zogenix, Inc. (a)(b) | 34,181 | 506,221 | |
9,490,392 | |||
TOTAL HEALTH CARE | 148,774,250 | ||
INDUSTRIALS - 14.4% | |||
Aerospace & Defense - 0.9% | |||
AAR Corp. (a) | 79,341 | 2,685,693 | |
Astronics Corp. (a) | 47,850 | 639,276 | |
Moog, Inc. Class A | 16,880 | 1,340,947 | |
Parsons Corp. (a)(b) | 63,346 | 2,244,349 | |
6,910,265 | |||
Air Freight & Logistics - 0.1% | |||
Atlas Air Worldwide Holdings, Inc. (a) | 7,806 | 571,165 | |
Airlines - 0.2% | |||
Mesa Air Group, Inc. (a) | 136,432 | 1,088,727 | |
SkyWest, Inc. (a) | 8,446 | 394,006 | |
1,482,733 | |||
Building Products - 1.1% | |||
Cornerstone Building Brands, Inc. (a) | 87,660 | 1,456,909 | |
Quanex Building Products Corp. | 60,006 | 1,413,741 | |
Resideo Technologies, Inc. (a) | 35,081 | 1,131,011 | |
Simpson Manufacturing Co. Ltd. | 11,167 | 1,263,546 | |
UFP Industries, Inc. | 42,544 | 3,194,204 | |
8,459,411 | |||
Commercial Services & Supplies - 1.6% | |||
ABM Industries, Inc. | 43,358 | 2,147,088 | |
Brady Corp. Class A | 42,336 | 2,257,779 | |
BrightView Holdings, Inc. (a)(b) | 10,986 | 168,415 | |
Cimpress PLC (a) | 7,162 | 680,247 | |
Healthcare Services Group, Inc. | 15,734 | 411,601 | |
Kimball International, Inc. Class B | 61,035 | 761,106 | |
Tetra Tech, Inc. | 8,115 | 1,167,262 | |
UniFirst Corp. | 17,911 | 4,102,873 | |
11,696,371 | |||
Construction & Engineering - 1.0% | |||
Comfort Systems U.S.A., Inc. | 5,426 | 412,267 | |
EMCOR Group, Inc. | 45,517 | 5,530,316 | |
Great Lakes Dredge & Dock Corp. (a)(b) | 36,449 | 550,744 | |
MYR Group, Inc. (a) | 3,433 | 357,066 | |
Primoris Services Corp. | 15,480 | 397,836 | |
7,248,229 | |||
Electrical Equipment - 2.0% | |||
Atkore, Inc. (a) | 53,336 | 4,947,981 | |
AZZ, Inc. | 21,861 | 1,170,657 | |
Encore Wire Corp. | 31,942 | 2,715,389 | |
EnerSys | 30,059 | 2,542,691 | |
FuelCell Energy, Inc. (a)(b) | 48,563 | 303,033 | |
Generac Holdings, Inc. (a) | 4,928 | 2,153,437 | |
Preformed Line Products Co. | 12,841 | 900,411 | |
14,733,599 | |||
Machinery - 2.9% | |||
Albany International Corp. Class A | 3,362 | 263,345 | |
Altra Industrial Motion Corp. | 22,575 | 1,321,992 | |
CIRCOR International, Inc. (a) | 10,340 | 369,655 | |
Columbus McKinnon Corp. (NY Shares) | 4,650 | 214,133 | |
Desktop Metal, Inc. (a)(b) | 53,004 | 439,933 | |
Energy Recovery, Inc. (a) | 10,814 | 220,930 | |
EnPro Industries, Inc. | 25,940 | 2,218,129 | |
Evoqua Water Technologies Corp. (a)(b) | 41,890 | 1,630,359 | |
Franklin Electric Co., Inc. | 2,659 | 225,962 | |
Gorman-Rupp Co. (b) | 6,777 | 237,669 | |
Helios Technologies, Inc. | 7,760 | 633,371 | |
Hurco Companies, Inc. | 20,022 | 668,134 | |
Hyliion Holdings Corp. Class A (a)(b) | 24,734 | 218,401 | |
Hyster-Yale Materials Handling Class A | 13,044 | 764,509 | |
Kennametal, Inc. (b) | 22,932 | 852,612 | |
L.B. Foster Co. Class A (a) | 6,670 | 113,724 | |
Manitowoc Co., Inc. (a) | 28,648 | 694,714 | |
Mueller Industries, Inc. | 45,510 | 2,030,201 | |
Nikola Corp. (a)(b) | 29,536 | 308,060 | |
Proto Labs, Inc. (a) | 8,545 | 633,697 | |
REV Group, Inc. | 46,634 | 758,269 | |
Rexnord Corp. (b) | 63,970 | 3,886,817 | |
SPX Flow, Inc. | 1,782 | 143,504 | |
Tennant Co. (b) | 4,980 | 368,420 | |
Terex Corp. (b) | 14,238 | 726,850 | |
The Greenbrier Companies, Inc. (b) | 14,237 | 627,852 | |
Watts Water Technologies, Inc. Class A (b) | 9,089 | 1,559,400 | |
22,130,642 | |||
Marine - 0.3% | |||
Costamare, Inc. | 58,779 | 845,242 | |
Matson, Inc. (b) | 5,361 | 424,430 | |
Safe Bulkers, Inc. (a) | 169,302 | 683,980 | |
1,953,652 | |||
Professional Services - 1.7% | |||
Barrett Business Services, Inc. | 5,205 | 403,388 | |
CRA International, Inc. (b) | 5,408 | 502,890 | |
Heidrick & Struggles International, Inc. | 49,896 | 2,156,505 | |
Kforce, Inc. | 61,064 | 3,567,359 | |
Korn Ferry | 13,493 | 953,820 | |
ManTech International Corp. Class A | 8,847 | 700,417 | |
TriNet Group, Inc. (a) | 18,931 | 1,743,166 | |
Upwork, Inc. (a) | 67,511 | 3,018,417 | |
13,045,962 | |||
Road & Rail - 0.5% | |||
ArcBest Corp. | 18,592 | 1,240,644 | |
Marten Transport Ltd. | 87,207 | 1,359,557 | |
Saia, Inc. (a) | 5,911 | 1,419,408 | |
4,019,609 | |||
Trading Companies & Distributors - 2.1% | |||
Applied Industrial Technologies, Inc. | 30,543 | 2,712,524 | |
Boise Cascade Co. | 67,868 | 3,926,164 | |
Global Industrial Co. (b) | 38,077 | 1,465,584 | |
GMS, Inc. (a) | 44,600 | 2,203,686 | |
Herc Holdings, Inc. (a) | 9,961 | 1,309,373 | |
Rush Enterprises, Inc. Class A | 87,993 | 3,880,491 | |
Veritiv Corp. (a) | 5,948 | 533,357 | |
16,031,179 | |||
TOTAL INDUSTRIALS | 108,282,817 | ||
INFORMATION TECHNOLOGY - 15.3% | |||
Communications Equipment - 0.9% | |||
ADTRAN, Inc. (b) | 22,476 | 464,354 | |
Calix, Inc. (a) | 98,266 | 4,579,196 | |
Digi International, Inc. (a)(b) | 9,634 | 211,755 | |
Extreme Networks, Inc. (a) | 107,547 | 1,164,734 | |
Inseego Corp. (a)(b) | 56,835 | 477,414 | |
6,897,453 | |||
Electronic Equipment & Components - 1.3% | |||
Badger Meter, Inc. | 1,940 | 207,755 | |
ePlus, Inc. (a) | 6,922 | 749,099 | |
II-VI, Inc. (a)(b) | 24,400 | 1,536,712 | |
Insight Enterprises, Inc. (a) | 18,342 | 1,887,208 | |
Kimball Electronics, Inc. (a) | 68,148 | 1,647,137 | |
Methode Electronics, Inc. Class A | 1,197 | 55,744 | |
MicroVision, Inc. (a)(b) | 17,951 | 264,418 | |
PC Connection, Inc. | 18,741 | 907,252 | |
Plexus Corp. (a) | 2,286 | 209,923 | |
ScanSource, Inc. (a) | 38,430 | 1,367,339 | |
Vishay Intertechnology, Inc. | 45,409 | 997,636 | |
9,830,223 | |||
IT Services - 1.5% | |||
Conduent, Inc. (a) | 36,260 | 264,698 | |
CSG Systems International, Inc. | 25,931 | 1,250,134 | |
EVERTEC, Inc. | 31,120 | 1,439,300 | |
ExlService Holdings, Inc. (a) | 25,249 | 3,109,162 | |
Limelight Networks, Inc. (a)(b) | 118,434 | 319,772 | |
Maximus, Inc. | 17,694 | 1,540,970 | |
MoneyGram International, Inc. (a) | 202,950 | 1,824,521 | |
Perficient, Inc. (a) | 9,248 | 1,102,547 | |
10,851,104 | |||
Semiconductors & Semiconductor Equipment - 3.9% | |||
Alpha & Omega Semiconductor Ltd. (a) | 34,305 | 996,560 | |
Ambarella, Inc. (a) | 19,211 | 1,989,683 | |
Amkor Technology, Inc. | 85,492 | 2,348,465 | |
Cirrus Logic, Inc. (a) | 28,997 | 2,426,179 | |
Diodes, Inc. (a) | 29,124 | 2,820,077 | |
Lattice Semiconductor Corp. (a) | 80,391 | 4,993,889 | |
NeoPhotonics Corp. (a) | 236,763 | 2,211,366 | |
Photronics, Inc. (a) | 26,152 | 394,111 | |
Power Integrations, Inc. | 15,138 | 1,644,592 | |
Semtech Corp. (a) | 46,948 | 3,282,604 | |
Synaptics, Inc. (a) | 31,039 | 5,890,586 | |
Veeco Instruments, Inc. (a)(b) | 11,534 | 262,860 | |
29,260,972 | |||
Software - 7.1% | |||
A10 Networks, Inc. (a) | 79,071 | 1,098,296 | |
Agilysys, Inc. (a) | 71,815 | 4,081,246 | |
Alarm.com Holdings, Inc. (a) | 15,833 | 1,335,197 | |
Appian Corp. Class A (a)(b) | 9,444 | 1,012,397 | |
Asana, Inc. (a) | 27,663 | 2,089,940 | |
BlackLine, Inc. (a) | 32,403 | 3,535,167 | |
Bottomline Technologies, Inc. (a) | 40,203 | 1,699,381 | |
Box, Inc. Class A (a) | 183,956 | 4,742,386 | |
Cloudera, Inc. (a) | 6,077 | 96,807 | |
CommVault Systems, Inc. (a) | 60,559 | 4,903,462 | |
Cornerstone OnDemand, Inc. (a) | 2,807 | 160,841 | |
Domo, Inc. Class B (a) | 39,543 | 3,539,099 | |
Marathon Digital Holdings, Inc. (a)(b) | 11,029 | 447,667 | |
MicroStrategy, Inc. Class A (a)(b) | 2,252 | 1,563,564 | |
Mimecast Ltd. (a) | 30,110 | 2,101,979 | |
Progress Software Corp. (b) | 71,889 | 3,347,152 | |
Q2 Holdings, Inc. (a)(b) | 29,856 | 2,630,015 | |
Qualys, Inc. (a) | 35,414 | 4,156,895 | |
Rapid7, Inc. (a) | 2,823 | 343,051 | |
Riot Blockchain, Inc. (a)(b) | 9,959 | 371,670 | |
SecureWorks Corp. (a)(b) | 31,495 | 644,388 | |
Sprout Social, Inc. (a) | 10,541 | 1,281,786 | |
SPS Commerce, Inc. (a)(b) | 27,336 | 3,704,848 | |
Tenable Holdings, Inc. (a) | 9,373 | 415,880 | |
Upland Software, Inc. (a) | 16,455 | 641,416 | |
Verint Systems, Inc. (a) | 24,182 | 1,079,484 | |
Vonage Holdings Corp. (a) | 58,256 | 821,410 | |
Zuora, Inc. (a) | 82,623 | 1,402,939 | |
53,248,363 | |||
Technology Hardware, Storage & Peripherals - 0.6% | |||
3D Systems Corp. (a)(b) | 28,953 | 881,329 | |
Avid Technology, Inc. (a) | 113,207 | 2,921,873 | |
Diebold Nixdorf, Inc. (a)(b) | 48,881 | 531,825 | |
4,335,027 | |||
TOTAL INFORMATION TECHNOLOGY | 114,423,142 | ||
MATERIALS - 3.8% | |||
Chemicals - 0.9% | |||
Avient Corp. | 45,724 | 2,381,763 | |
FutureFuel Corp. | 47,346 | 379,241 | |
Innospec, Inc. | 4,583 | 428,969 | |
Rayonier Advanced Materials, Inc. (a) | 56,261 | 397,203 | |
Stepan Co. | 25,647 | 3,015,061 | |
6,602,237 | |||
Containers & Packaging - 0.4% | |||
Myers Industries, Inc. | 135,063 | 3,079,436 | |
Metals & Mining - 2.0% | |||
Alcoa Corp. (a) | 30,400 | 1,348,848 | |
Arconic Corp. (a) | 91,521 | 3,156,559 | |
Cleveland-Cliffs, Inc. (a) | 50,045 | 1,174,556 | |
Coeur d'Alene Mines Corp. (a)(b) | 124,888 | 880,460 | |
Commercial Metals Co. | 92,481 | 3,016,730 | |
Constellium NV (a) | 34,257 | 692,677 | |
Hecla Mining Co. | 75,611 | 465,008 | |
Materion Corp. | 7,963 | 581,538 | |
Novagold Resources, Inc. (a) | 22,458 | 162,371 | |
United States Steel Corp. | 37,796 | 1,011,043 | |
Worthington Industries, Inc. | 47,724 | 2,765,606 | |
15,255,396 | |||
Paper & Forest Products - 0.5% | |||
Louisiana-Pacific Corp. | 46,461 | 2,947,486 | |
Schweitzer-Mauduit International, Inc. | 15,211 | 582,125 | |
3,529,611 | |||
TOTAL MATERIALS | 28,466,680 | ||
REAL ESTATE - 7.4% | |||
Equity Real Estate Investment Trusts (REITs) - 6.2% | |||
Agree Realty Corp. | 64,365 | 4,798,411 | |
Alexanders, Inc. | 1,922 | 511,829 | |
American Assets Trust, Inc. | 90,665 | 3,610,280 | |
American Finance Trust, Inc. | 138,198 | 1,191,267 | |
CareTrust (REIT), Inc. | 16,768 | 368,728 | |
CatchMark Timber Trust, Inc. | 15,197 | 175,373 | |
Centerspace | 5,667 | 573,387 | |
City Office REIT, Inc. | 16,572 | 264,655 | |
Digitalbridge Group, Inc. (a)(b) | 172,300 | 1,188,870 | |
Diversified Healthcare Trust (SBI) | 156,677 | 587,539 | |
Easterly Government Properties, Inc. | 28,852 | 616,567 | |
EastGroup Properties, Inc. | 15,858 | 2,858,563 | |
Equity Commonwealth | 56,724 | 1,494,110 | |
Essential Properties Realty Trust, Inc. | 28,072 | 909,814 | |
Farmland Partners, Inc. | 11,525 | 141,181 | |
Four Corners Property Trust, Inc. | 29,720 | 850,289 | |
Gladstone Land Corp. | 10,425 | 245,509 | |
Global Net Lease, Inc. | 95,110 | 1,616,870 | |
Healthcare Realty Trust, Inc. | 61,041 | 1,833,061 | |
Independence Realty Trust, Inc. | 27,905 | 571,494 | |
Kite Realty Group Trust | 36,148 | 732,358 | |
Lexington Corporate Properties Trust | 26,736 | 361,738 | |
National Storage Affiliates Trust | 89,033 | 5,097,139 | |
Preferred Apartment Communities, Inc. Class A | 78,102 | 974,713 | |
PS Business Parks, Inc. | 24,881 | 3,912,040 | |
QTS Realty Trust, Inc. Class A | 6,913 | 539,076 | |
RLJ Lodging Trust | 37,538 | 541,673 | |
Safehold, Inc. | 4,618 | 413,819 | |
Stag Industrial, Inc. | 68,409 | 2,890,280 | |
Terreno Realty Corp. | 63,803 | 4,262,678 | |
The GEO Group, Inc. (b) | 216,409 | 1,677,170 | |
The Macerich Co. (b) | 32,548 | 555,920 | |
Universal Health Realty Income Trust (SBI) | 4,949 | 293,129 | |
Xenia Hotels & Resorts, Inc. (a) | 13,931 | 242,678 | |
46,902,208 | |||
Real Estate Management & Development - 1.2% | |||
Cushman & Wakefield PLC (a) | 45,640 | 827,910 | |
eXp World Holdings, Inc. (b) | 23,734 | 1,088,204 | |
Marcus & Millichap, Inc. (a) | 37,075 | 1,454,082 | |
Newmark Group, Inc. | 156,577 | 2,132,579 | |
RE/MAX Holdings, Inc. | 18,286 | 612,398 | |
The RMR Group, Inc. | 57,710 | 2,674,281 | |
8,789,454 | |||
TOTAL REAL ESTATE | 55,691,662 | ||
UTILITIES - 1.3% | |||
Electric Utilities - 0.3% | |||
Allete, Inc. | 9,953 | 671,031 | |
MGE Energy, Inc. | 780 | 62,821 | |
Otter Tail Corp. | 22,980 | 1,260,913 | |
PNM Resources, Inc. | 5,638 | 279,081 | |
2,273,846 | |||
Gas Utilities - 0.0% | |||
South Jersey Industries, Inc. (b) | 9,128 | 226,466 | |
Independent Power and Renewable Electricity Producers - 0.5% | |||
Clearway Energy, Inc. Class A | 89,294 | 2,655,604 | |
Ormat Technologies, Inc. (b) | 12,336 | 877,460 | |
Sunnova Energy International, Inc. (a) | 14,039 | 508,212 | |
4,041,276 | |||
Multi-Utilities - 0.2% | |||
Avista Corp. | 14,945 | 625,448 | |
Black Hills Corp. (b) | 6,638 | 466,851 | |
1,092,299 | |||
Water Utilities - 0.3% | |||
American States Water Co. | 10,765 | 992,641 | |
California Water Service Group (b) | 16,296 | 1,035,611 | |
2,028,252 | |||
TOTAL UTILITIES | 9,662,139 | ||
TOTAL COMMON STOCKS | |||
(Cost $561,167,682) | 734,470,396 | ||
Money Market Funds - 18.2% | |||
Fidelity Cash Central Fund 0.06% (d) | 15,148,684 | 15,151,714 | |
Fidelity Securities Lending Cash Central Fund 0.06% (d)(e) | 121,308,736 | 121,320,867 | |
TOTAL MONEY MARKET FUNDS | |||
(Cost $136,470,335) | 136,472,581 | ||
TOTAL INVESTMENT IN SECURITIES - 116.2% | |||
(Cost $697,638,017) | 870,942,977 | ||
NET OTHER ASSETS (LIABILITIES) - (16.2)% | (121,366,891) | ||
NET ASSETS - 100% | $749,576,086 |
Futures Contracts | |||||
Number of contracts | Expiration Date | Notional Amount | Value | Unrealized Appreciation/(Depreciation) | |
Purchased | |||||
Equity Index Contracts | |||||
CME E-mini Russell 2000 Index Contracts (United States) | 134 | Sept. 2021 | $15,217,040 | $553,854 | $553,854 |
The notional amount of futures purchased as a percentage of Net Assets is 2.0%
Legend
(a) Non-income producing
(b) Security or a portion of the security is on loan at period end.
(c) Level 3 security
(d) 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 are available on the SEC's website or upon request.
(e) 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.
Fund | Value, beginning of period | Purchases | Sales Proceeds | Dividend Income | Realized Gain/Loss | Change in Unrealized appreciation (depreciation) | Value, end of period | % ownership, end of period |
Fidelity Cash Central Fund 0.06% | $20,591,573 | $82,243,004 | $87,682,863 | $6,196 | $-- | $-- | $15,151,714 | 0.0% |
Fidelity Securities Lending Cash Central Fund 0.06% | 31,312,480 | 260,295,220 | 170,286,834 | 69,758 | -- | 1 | 121,320,867 | 0.4% |
Total | $51,904,053 | $342,538,224 | $257,969,697 | $75,954 | $-- | $1 | $136,472,581 |
Amounts in the 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. Amount 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 payments received for lending certain types of securities.
Investment Valuation
The following is a summary of the inputs used, as of August 31, 2021, 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: | ||||
Equities: | ||||
Communication Services | $26,643,088 | $26,643,088 | $-- | $-- |
Consumer Discretionary | 86,596,994 | 86,596,994 | -- | -- |
Consumer Staples | 13,637,017 | 13,637,017 | -- | -- |
Energy | 32,528,908 | 32,528,908 | -- | -- |
Financials | 109,763,699 | 109,763,699 | -- | -- |
Health Care | 148,774,250 | 148,774,250 | -- | -- |
Industrials | 108,282,817 | 108,282,817 | -- | -- |
Information Technology | 114,423,142 | 114,423,142 | -- | -- |
Materials | 28,466,680 | 28,466,680 | -- | -- |
Real Estate | 55,691,662 | 55,691,662 | -- | -- |
Utilities | 9,662,139 | 9,662,139 | -- | -- |
Money Market Funds | 136,472,581 | 136,472,581 | -- | -- |
Total Investments in Securities: | $870,942,977 | $870,942,977 | $-- | $-- |
Derivative Instruments: | ||||
Assets | ||||
Futures Contracts | $553,854 | $553,854 | $-- | $-- |
Total Assets | $553,854 | $553,854 | $-- | $-- |
Total Derivative Instruments: | $553,854 | $553,854 | $-- | $-- |
Value of Derivative Instruments
The following table is a summary of the Fund's value of derivative instruments by primary risk exposure as of August 31, 2021. For additional information on derivative instruments, please refer to the Derivative Instruments section in the accompanying Notes to Financial Statements.
Primary Risk Exposure / Derivative Type | Value | |
Asset | Liability | |
Equity Risk | ||
Futures Contracts(a) | $553,854 | $0 |
Total Equity Risk | 553,854 | 0 |
Total Value of Derivatives | $553,854 | $0 |
(a) Reflects gross cumulative appreciation (depreciation) on futures contracts as presented in the Schedule of Investments. In the Statement of Assets and Liabilities, the period end daily variation margin is included in receivable or payable for daily variation margin on futures contracts, and the net cumulative appreciation (depreciation) is included in Total accumulated earnings (loss).
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
August 31, 2021 (Unaudited) | ||
Assets | ||
Investment in securities, at value (including securities loaned of $119,063,302) — See accompanying schedule: Unaffiliated issuers (cost $561,167,682) | $734,470,396 | |
Fidelity Central Funds (cost $136,470,335) | 136,472,581 | |
Total Investment in Securities (cost $697,638,017) | $870,942,977 | |
Segregated cash with brokers for derivative instruments | 916,500 | |
Receivable for investments sold | 12,644,205 | |
Receivable for fund shares sold | 179,876 | |
Dividends receivable | 434,444 | |
Distributions receivable from Fidelity Central Funds | 14,215 | |
Receivable for daily variation margin on futures contracts | 29,890 | |
Total assets | 885,162,107 | |
Liabilities | ||
Payable for investments purchased | $13,266,356 | |
Payable for fund shares redeemed | 613,415 | |
Accrued management fee | 391,528 | |
Collateral on securities loaned | 121,314,722 | |
Total liabilities | 135,586,021 | |
Net Assets | $749,576,086 | |
Net Assets consist of: | ||
Paid in capital | $490,968,026 | |
Total accumulated earnings (loss) | 258,608,060 | |
Net Assets | $749,576,086 | |
Net Asset Value, offering price and redemption price per share ($749,576,086 ÷ 41,085,842 shares) | $18.24 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
Six months ended August 31, 2021 (Unaudited) | ||
Investment Income | ||
Dividends | $3,544,643 | |
Interest | 613 | |
Income from Fidelity Central Funds (including $69,758 from security lending) | 75,954 | |
Total income | 3,621,210 | |
Expenses | ||
Management fee | $2,373,638 | |
Independent trustees' fees and expenses | 1,348 | |
Total expenses before reductions | 2,374,986 | |
Expense reductions | (22) | |
Total expenses after reductions | 2,374,964 | |
Net investment income (loss) | 1,246,246 | |
Realized and Unrealized Gain (Loss) | ||
Net realized gain (loss) on: | ||
Investment securities: | ||
Unaffiliated issuers | 86,549,084 | |
Futures contracts | (353,019) | |
Total net realized gain (loss) | 86,196,065 | |
Change in net unrealized appreciation (depreciation) on: | ||
Investment securities: | ||
Unaffiliated issuers | (42,524,006) | |
Fidelity Central Funds | 1 | |
Futures contracts | (192,049) | |
Total change in net unrealized appreciation (depreciation) | (42,716,054) | |
Net gain (loss) | 43,480,011 | |
Net increase (decrease) in net assets resulting from operations | $44,726,257 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
Six months ended August 31, 2021 (Unaudited) | Year ended February 28, 2021 | |
Increase (Decrease) in Net Assets | ||
Operations | ||
Net investment income (loss) | $1,246,246 | $3,121,778 |
Net realized gain (loss) | 86,196,065 | 22,432,266 |
Change in net unrealized appreciation (depreciation) | (42,716,054) | 200,911,676 |
Net increase (decrease) in net assets resulting from operations | 44,726,257 | 226,465,720 |
Distributions to shareholders | (7,176,576) | (3,468,457) |
Share transactions | ||
Proceeds from sales of shares | 118,794,133 | 106,402,264 |
Reinvestment of distributions | 6,806,263 | 3,296,821 |
Cost of shares redeemed | (102,704,537) | (159,526,301) |
Net increase (decrease) in net assets resulting from share transactions | 22,895,859 | (49,827,216) |
Total increase (decrease) in net assets | 60,445,540 | 173,170,047 |
Net Assets | ||
Beginning of period | 689,130,546 | 515,960,499 |
End of period | $749,576,086 | $689,130,546 |
Other Information | ||
Shares | ||
Sold | 6,649,113 | 7,884,913 |
Issued in reinvestment of distributions | 387,160 | 214,777 |
Redeemed | (5,798,408) | (13,863,858) |
Net increase (decrease) | 1,237,865 | (5,764,168) |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights
Fidelity Small Cap Enhanced Index Fund
Six months ended (Unaudited) August 31, | Years endedFebruary 28, | |||||
2021 | 2021 | 2020 A | 2019 | 2018 | 2017 | |
Selected Per–Share Data | ||||||
Net asset value, beginning of period | $17.29 | $11.31 | $12.57 | $13.81 | $14.32 | $10.99 |
Income from Investment Operations | ||||||
Net investment income (loss)B | .03 | .08 | .12 | .11 | .12 | .12 |
Net realized and unrealized gain (loss) | 1.09 | 5.99 | (1.26) | .31 | .56 | 3.31 |
Total from investment operations | 1.12 | 6.07 | (1.14) | .42 | .68 | 3.43 |
Distributions from net investment income | – | (.09) | (.12) | (.12) | (.13) | (.10) |
Distributions from net realized gain | (.17) | – | – | (1.54) | (1.06) | – |
Total distributions | (.17) | (.09) | (.12) | (1.66) | (1.19) | (.10) |
Redemption fees added to paid in capitalB | – | – | – | – | – | –C |
Net asset value, end of period | $18.24 | $17.29 | $11.31 | $12.57 | $13.81 | $14.32 |
Total ReturnD,E | 6.53% | 53.78% | (9.18)% | 4.01% | 4.95% | 31.15% |
Ratios to Average Net AssetsF,G | ||||||
Expenses before reductions | .64%H | .64% | .64% | .64% | .64% | .67% |
Expenses net of fee waivers, if any | .64%H | .64% | .64% | .64% | .64% | .67% |
Expenses net of all reductions | .64%H | .64% | .64% | .64% | .64% | .67% |
Net investment income (loss) | .34%H | .62% | .94% | .84% | .89% | .93% |
Supplemental Data | ||||||
Net assets, end of period (000 omitted) | $749,576 | $689,131 | $515,960 | $701,171 | $762,811 | $1,210,189 |
Portfolio turnover rateI | 77%H | 44% | 79% | 88% | 100% | 76% |
A For the year ended February 29.
B Calculated based on average shares outstanding during the period.
C Amount represents less than $.005 per share.
D Total returns for periods of less than one year are not annualized.
E Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
F Fees 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.
G Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed, waived, or reduced through arrangements with the investment advisor, 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.
H Annualized
I Amount does not include the portfolio activity of any underlying mutual funds or exchange-traded funds (ETFs).
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements (Unaudited)
For the period ended August 31, 2021
1. Organization.
Fidelity Small Cap Enhanced Index Fund (the Fund) is a fund of Fidelity Commonwealth Trust II (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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 Delaware statutory trust.
2. 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. 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 (ETFs) 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 Board of Trustees (the Board) has delegated the day to day responsibility for the valuation of the Fund's investments to the Fair Value Committee (the Committee) established by the Fund's investment adviser. In accordance with valuation policies and procedures approved by the Board, the Fund attempts to obtain prices from one or more third party pricing vendors 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 procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market or investment specific events. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and reports to the Board on the Committee's activities and fair value determinations. The Board monitors the appropriateness of the procedures used in valuing the Fund's investments and ratifies the fair value determinations of the Committee.
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 – 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:
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 vendor 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.
Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded and are categorized as Level 1 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 August 31, 2021 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 of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time 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 include proceeds received from litigation. 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. Certain distributions received by the Fund represent a return of capital or capital gain. The Fund determines 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. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities 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, 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. 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.
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 futures contracts, passive foreign investment companies (PFIC), market discount, capital loss carryforwards, partnerships (including allocations from Fidelity Central Funds), 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:
Gross unrealized appreciation | $205,195,067 |
Gross unrealized depreciation | (32,488,462) |
Net unrealized appreciation (depreciation) | $172,706,605 |
Tax cost | $698,790,226 |
The Fund elected to defer to its next fiscal year approximately $567,862 of ordinary losses recognized during the period January 1, 2021 to February 28, 2021.
3. Derivative Instruments.
Risk Exposures and the Use of Derivative Instruments. The Fund's investment objective allows the Fund to enter into various types of derivative contracts, including futures contracts. Derivatives are investments whose value is primarily derived from underlying assets, indices or reference rates and may be transacted on an exchange or over-the-counter (OTC). Derivatives may involve a future commitment to buy or sell a specified asset based on specified terms, to exchange future cash flows at periodic intervals based on a notional principal amount, or for one party to make one or more payments upon the occurrence of specified events in exchange for periodic payments from the other party.
The Fund used derivatives to increase returns and to manage exposure to certain risks as defined below. The success of any strategy involving derivatives depends on analysis of numerous economic factors, and if the strategies for investment do not work as intended, the Fund may not achieve its objectives.
The Fund's use of derivatives increased or decreased its exposure to the following risk:
Equity Risk | Equity risk relates to the fluctuations in the value of financial instruments as a result of changes in market prices (other than those arising from interest rate risk or foreign exchange risk), whether caused by factors specific to an individual investment, its issuer, or all factors affecting all instruments traded in a market or market segment. |
The Fund is also exposed to additional risks from investing in derivatives, such as liquidity risk and counterparty credit risk. Liquidity risk is the risk that the Fund will be unable to close out the derivative in the open market in a timely manner. Counterparty credit risk is the risk that the counterparty will not be able to fulfill its obligation to the Fund. Counterparty credit risk related to exchange-traded futures contracts may be mitigated by the protection provided by the exchange on which they trade.
Investing in derivatives may involve greater risks than investing in the underlying assets directly and, to varying degrees, may involve risk of loss in excess of any initial investment and collateral received and amounts recognized in the Statement of Assets and Liabilities. In addition, there may be the risk that the change in value of the derivative contract does not correspond to the change in value of the underlying instrument.
Futures Contracts. A futures contract is an agreement between two parties to buy or sell a specified underlying instrument for a fixed price at a specified future date. The Fund used futures contracts to manage its exposure to the stock market.
Upon entering into a futures contract, a fund is required to deposit either cash or securities (initial margin) with a clearing broker in an amount equal to a certain percentage of the face value of the contract. Futures contracts are marked-to-market daily and subsequent daily payments (variation margin) are made or received by a fund depending on the daily fluctuations in the value of the futures contracts and are recorded as unrealized appreciation or (depreciation). This receivable and/or payable, if any, is included in daily variation margin on futures contracts in the Statement of Assets and Liabilities. Realized gain or (loss) is recorded upon the expiration or closing of a futures contract. The net realized gain (loss) and change in net unrealized appreciation (depreciation) on futures contracts during the period is presented in the Statement of Operations.
Any open futures contracts at period end are presented in the Schedule of Investments under the caption "Futures Contracts". The notional amount at value reflects each contract's exposure to the underlying instrument or index at period end and is representative of volume of activity during the period. Cash deposited to meet initial margin requirements is presented as segregated cash with brokers for derivative instruments in the Statement of Assets and Liabilities.
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 Small Cap Enhanced Index Fund | 301,940,918 | 277,608,310 |
5. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company LLC (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The Fund pays an all-inclusive management fee based on annual rate of .64% of the Fund's average net assets; and the investment adviser pays all ordinary operating expenses of the Fund, except fees and expenses of the independent Trustees and certain miscellaneous expenses such as proxy and shareholder meeting expenses. The management fee is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.
Sub-Adviser. Geode Capital Management, LLC (Geode), serves as sub-adviser for the Funds. Geode provides discretionary investment advisory services to the Funds and is paid by the investment adviser for providing these services.
Interfund Trades. Funds may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. 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.
6. 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 Ratio(a) |
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% to .01% |
(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.
7. Committed Line of Credit.
Certain Funds participate with other funds managed by the investment adviser or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The commitment fees on the pro-rata portion of the line of credit are borne by the investment adviser. During the period, there were no borrowings on this line of credit.
8. 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, a fund receives 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 market value of the loaned securities during the period of the loan. The market 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. 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 and any lending agent fees associated with the loan, plus any premium payments received for lending certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. 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 Small Cap Enhanced Index Fund | $7,041 | $188 | $437,250 |
9. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's expenses by $22.
10. Other.
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, the fund may also enter into contracts that provide general indemnifications. The fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the fund. The risk of material loss from such claims is considered remote.
11. Coronavirus (COVID-19) Pandemic.
An outbreak of COVID-19 first detected in China during December 2019 has since spread globally and was declared a pandemic by the World Health Organization during March 2020. Developments that disrupt global economies and financial markets, such as the COVID-19 pandemic, may magnify factors that affect the Fund's performance.
Shareholder Expense Example
As a shareholder, you incur two types of costs: (1) transaction costs, which may include sales charges (loads) on purchase payments or redemption proceeds, as applicable and (2) ongoing costs, which generally include management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2021 to August 31, 2021).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class/Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. If any fund is a shareholder of any underlying mutual funds or exchange-traded funds (ETFs) (the Underlying Funds), such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses incurred presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. If any fund is a shareholder of any Underlying Funds, such fund indirectly bears its proportional share of the expenses of the Underlying Funds in addition to the direct expenses as presented in the table. These fees and expenses are not included in the annualized expense ratio used to calculate the expense estimate in the table below.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annualized Expense Ratio-A | Beginning Account Value March 1, 2021 | Ending Account Value August 31, 2021 | Expenses Paid During Period-B March 1, 2021 to August 31, 2021 | |
Fidelity Small Cap Enhanced Index Fund | .64% | |||
Actual | $1,000.00 | $1,065.30 | $3.33 | |
Hypothetical-C | $1,000.00 | $1,021.98 | $3.26 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/ 365 (to reflect the one-half year period). The fees and expenses of any Underlying Funds are not included in each annualized expense ratio.
C 5% return per year before expenses
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity Small Cap Enhanced Index Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract with Fidelity Management & Research Company LLC (FMR) and the sub-advisory agreement (Sub-Advisory Agreement) for the fund with Geode Capital Management, LLC (Geode) (together, the Advisory Contracts). FMR and Geode 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 has established various standing committees (Committees), each composed of and chaired by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. The Board, acting directly and through its Committees, 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 2021 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 of the fund's management fee and total expense ratio relative to peer funds; (iii) the total costs of the services provided by and the profits realized by Fidelity and Geode 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.In considering whether to renew the Advisory Contracts for the fund, 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. The Board's decision to renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, was aware that shareholders of the fund have a broad range of investment choices available to them, including a wide choice among funds offered by Fidelity's competitors, and that the fund's shareholders, who have the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, which is part of the Fidelity family of funds.Nature, Extent, and Quality of Services Provided. The Board considered staffing as it relates to the fund, including the backgrounds of investment personnel of Fidelity and Geode, and also considered the fund's investment objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups and with senior management of Geode. The Board considered the structure of the investment personnel compensation programs and whether the structures provide 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.The Trustees also discussed with representatives of Fidelity, at meetings throughout the year, Fidelity's role in, among other things, overseeing compliance with federal securities laws and other applicable requirements by Geode with respect to the fund and monitoring and overseeing the performance and investment capabilities of Geode. The Trustees considered that the Board had received from Fidelity periodic reports about its oversight and due diligence processes, as well as periodic reports regarding the performance of Geode.The Board also considered the nature, extent and quality of services provided by Geode. The Trustees noted that under the Sub-Advisory Agreement, subject to oversight by Fidelity, Geode is responsible for, among other things, identifying investments and arranging for execution of portfolio transactions to implement the fund's investment strategy. In addition, the Trustees noted that Geode is responsible for providing such reporting as may be requested by Fidelity to fulfill its oversight responsibilities discussed above.Resources Dedicated to Investment Management and Support Services. The Board and the Fund Oversight and Research Committees reviewed the general qualifications and capabilities of Fidelity's and Geode's investment staffs, including their size, education, experience, and resources, as well as Fidelity's and Geode's approach to recruiting, training, managing, and compensating investment personnel. The Board considered that Fidelity's and Geode's investment professionals have extensive resources, tools and capabilities 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. Additionally, in its deliberations, the Board considered Fidelity's and Geode's trading, risk management, compliance, and technology and operations capabilities and resources, which are integral parts of the investment management process. The Board also considered Fidelity's and Geode's investments in business continuity planning, and their success in continuously providing services to the fund notwithstanding the severe disruptions caused by the COVID-19 pandemic.Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and by FMR's affiliates under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the supervision of third party service providers, principally custodians, subcustodians, and pricing vendors; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers.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, and the expanded availability of Fidelity Investor Centers.Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits 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 mutual fund investor services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over the previous year that benefited particular funds, including: (i) continuing to dedicate additional resources to Fidelity's investment research process, which includes meetings with management of issuers of securities in which the funds invest, and to the support of the senior management team that oversees asset management; (ii) continuing efforts to enhance Fidelity's global research capabilities; (iii) launching new funds and ETFs with innovative structures, strategies and pricing and making other enhancements to meet client needs; (iv) launching new share classes of existing funds; (v) eliminating purchase minimums and broadening eligibility requirements for certain funds and share classes; (vi) approving the reduction in the holding period for the Class C to Class A conversion policy; (vii) reducing management fees and total expenses for certain target date funds and classes and index funds; (viii) lowering expenses for certain existing funds and classes by implementing or lowering expense caps; (ix) rationalizing product lines and gaining increased efficiencies from fund mergers, liquidations, and share class consolidations; (x) continuing to develop, acquire and implement systems and technology to improve services to the funds and shareholders, strengthen information security, and increase efficiency; and (xi) continuing to implement enhancements to further strengthen Fidelity's product line to increase investors' probability of success in achieving their investment goals, including retirement income goals.Investment Performance. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of compliance with its investment restrictions and its performance history.The Board took into account discussions that occur at Board meetings throughout the year with representatives of the Investment Advisers about 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 considers annualized return information for the fund for different time periods, measured against an appropriate securities market index (benchmark index) and an appropriate peer group of funds with similar objectives (peer group). In its evaluation of fund investment performance, the Board gave particular attention to information indicating changes in performance of certain Fidelity funds for specific time periods and discussed with the Investment Advisers the reasons for any overperformance or underperformance.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. In general, the Independent Trustees believe that fund performance should be evaluated based on net performance (after fees and expenses) of both the highest performing and lowest performing fund share classes, where applicable, compared to appropriate benchmark indices, over appropriate time periods that may include full market cycles, and compared to peer groups, as applicable, over the same periods, taking into account relevant factors including the following: general market conditions; issuer-specific information; and fund cash flows and other factors.The Independent Trustees recognize that shareholders evaluate performance on a net basis over their own holding periods, for which one-, three-, and five-year periods are often used as a proxy. For this reason, the performance information reviewed by the Board also included net cumulative total return information for the fund and an appropriate benchmark index and peer group for the most recent one-, three-, and five-year periods ended September 30, 2020, as shown below. Returns are shown compared to the 25th percentile (top of box, 75% beaten) and 75th percentile (bottom of box, 25% beaten) of the peer universe.Fidelity Small Cap Enhanced Index Fund
Fidelity Small Cap Enhanced Index Fund
The Board considered that a new management contract for the fund that implemented an all-inclusive management fee structure had taken effect April 1, 2017, following approval by shareholders. Under this new fee structure, the management fee rate for the fund increased from 0.52% to 0.64%, and FMR now pays all other expenses of the fund with limited exceptions. The Board noted that as a result of the new fee structure, total expenses incurred by shareholders decreased. The Board also noted that the comparisons for 2015 and later reflect a revised Total Mapped Group that no longer includes funds with micro-cap objectives and that Fidelity believes this Total Mapped Group is a more appropriate comparison because the fund does not have a micro-cap objective.
SCE-SANN-1021
1.9885267.104
Item 2.
Code of Ethics
Not applicable.
Item 3.
Audit Committee Financial Expert
Not applicable.
Item 4.
Principal Accountant Fees and Services
Not applicable.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
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 Fidelity Commonwealth Trust II’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Commonwealth Trust II’s (the “Trust”) 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 12.
Disclosure of Securities Lending Activities for Closed-End Management
Investment Companies
Not applicable.
Item 13.
Exhibits
(a) | (1) | Not applicable. |
(a) | (2) | |
(a) | (3) | Not applicable. |
(b) |
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 Commonwealth Trust II
By: | /s/Stacie M. Smith |
Stacie M. Smith | |
President and Treasurer | |
Date: | October 21, 2021 |
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 | |
Date: | October 21, 2021 |
By: | /s/John J. Burke III |
John J. Burke III | |
Chief Financial Officer | |
Date: | October 21, 2021 |