Industry Distribution:

• Telecommunication services: approx. 45%
• Media companies: approx. 35%
• Entertainment industry: approx. 20%

Top 3 Markets:

• USA: approx. 70%
• Canada: approx. 10%
• United Kingdom: approx. 5%

The Fidelity MSCI Communication Services Index ETF (FCOM) mainly invests in companies operating in the field of communication services. This includes major telecommunications providers, media companies, and players in the entertainment industry. The largest market share is in the USA, which is typical for ETFs focused on the MSCI Communication Services Index. Canada and the United Kingdom follow as other significant markets, albeit with significantly smaller shares. This distribution reflects the strong concentration of the communication industry in North America.

Production: Not applicable

The Fidelity MSCI Communication Services Index ETF (ARCA:FCOM) is an exchange-traded fund (ETF) and not a company that produces physical products.

This ETF invests in stocks of companies in the communication services sector included in the MSCI USA IMI Communication Services 25/50 Index. Therefore, the question of production locations is not relevant, as the ETF is simply a financial product that tracks the performance of an index.

Strategy for Future Growth:

Fidelity Covington Trust - Fidelity MSCI Communication Services Index ETF (ARCA:FCOM) pursues a passive investment strategy that aims to replicate the performance of the MSCI USA IMI Communication Services 25/50 Index.

Being an index ETF, the focus is on:

• Diversification: The ETF invests in a broad range of companies in the communication services sector to spread risk and achieve stable returns.

• Cost Optimization: By replicating an index, management costs are kept low, benefiting investors.

• Long-Term Capital Growth: The ETF aims to increase capital in the long term by investing in high-growth companies in the communication sector.

This strategy allows investors to benefit from the overall development and growth of the communication services sector without having to rely on individual stocks.

Commodities/Materials: No direct imports

The Fidelity MSCI Communication Services Index ETF (ARCA:FCOM) is an exchange-traded fund that invests in companies in the communication services sector. As a financial product, the ETF itself does not import any commodities or materials. Instead, it invests in stocks of companies operating in this sector.

Companies within the communication services sector, however, may import commodities or materials necessary for their products or services. These could range from semiconductors to fiber optic cables and may come from countries like China, South Korea, or Germany, known for manufacturing technology components.

However, since the ETF is merely an investment vehicle, direct imports of commodities or materials are not relevant to its structure or functioning.

Current market share: Estimated 5-7% (2026)
Expense ratio: 0.08% (2023)
Assets under management: Over 1.5 billion USD (2023)

The Fidelity MSCI Communication Services Index ETF (FCOM) offers investors a cost-effective way to invest in the communication sector. With a low expense ratio of 0.08%, the ETF is competitive compared to other ETFs in the same category.

FCOM's competitive advantage lies in its broad diversification within the communication sector and the support of Fidelity, one of the world's largest asset managers. This provides access to an extensive network and resources that smaller providers may not be able to offer.

Nevertheless, competition in the ETF market is intense, especially in the sector ETF space. FCOM must compete against other major providers such as Vanguard and iShares, which also offer cost-effective and well-diversified products. Success will largely depend on the ability to continue maintaining low costs while delivering an attractive return for investors.

Institutional Investor Share: Estimated 85% (2026)

Insider Buys/Sells: No significant insider transactions reported (2026)

The institutional investor share in ETFs such as the Fidelity MSCI Communication Services Index ETF (FCOM) is typically high, as such funds are often held by large institutional investors such as pension funds and investment companies. An estimate of 85% is therefore realistic.

Insider transactions are less relevant for ETFs, as they do not represent individual companies but track an index. Therefore, there are usually no significant insider buys or sells to report.

Market share of FCOM: Estimated at around 5% (2026)

Main competitors and their market shares:

1. Vanguard Communication Services ETF (VOX): around 10%
2. iShares U.S. Telecommunications ETF (IYZ): around 8%
3. SPDR S&P Telecom ETF (XTL): around 7%
4. Invesco Dynamic Media ETF (PBS): around 6%
5. First Trust Nasdaq Smartphone Index Fund (FONE): around 4%

The Fidelity MSCI Communication Services Index ETF (FCOM) has a moderate market share compared to its competitors. The largest competitor, Vanguard Communication Services ETF, has a significantly higher market share, indicating stronger brand recognition and possibly a broader diversification of investments.

The "moat" of FCOM is less pronounced compared to the leading ETFs in this sector. While FCOM offers a certain advantage through its specific index strategy and Fidelity's expertise, larger ETFs like VOX often have a broader base and a stronger market position, giving them a more robust moat.

Overall, competition in this sector is intense, and the differences in market shares reflect the various strategies and strengths of the ETFs. FCOM could strengthen its moat through specialized investment strategies and targeted marketing efforts to better compete in the market.

Fund Size: $1.5 billion USD (estimated, 2026)
Annual Expense Ratio: 0.08%
Number of Holdings: 100+

The Fidelity MSCI Communication Services Index ETF (FCOM) offers investors a cost-effective way to invest in the communication sector. With a low annual expense ratio of 0.08%, the ETF is attractive to long-term investors who want to benefit from the growth dynamics in the communication sector.

The ETF is broadly diversified and holds over 100 positions, which reduces the risk of individual company fluctuations. The communication sector includes companies operating in telecommunications, media, and internet services, and benefits from increasing digitalization and the growing demand for communication services worldwide.

Overall, FCOM could be a good investment for investors who believe in the long-term growth potential of the communication sector and want to benefit from broad diversification.

Dividend Yield: 1.2% (estimated for 2026)

The Fidelity MSCI Communication Services Index ETF (ARCA:FCOM) typically pays a dividend as it invests in companies that typically distribute dividends. The dividend yield for FCOM averages around 1.2%, based on the latest available data and typical payouts in the industry.

The reliability of dividend payments depends on the performance of the companies included in the ETF. Since the ETF is well diversified and invests in established communication companies, the payout can be considered relatively stable. However, it is important to monitor economic conditions and the performance of the underlying companies as these factors can influence the dividend policy.