Fidelity MSCI Communication Services Index ETF

Fidelity MSCI Communication Services Index ETF (FCOM) tracks the MSCI USA IMI Communication Services 25/50 Index. That index holds US social media, search, telecom, entertainment and video game companies. FCOM's expense ratio of 0.084% ranks 2nd lowest of 9 similar funds, against a peer average of 0.42%. The trade-off is concentration. As of July 31, 2026, Meta Platforms alone was 20.6% of assets, and the top 10 positions held 71%.

• Over the year to Oct 27, 2026, FCOM returned -5.8%, 5th of 9 among similar funds.
• Its 5-year annualized return was +5.8% and its 10-year +10.6%.
• In the 2020 COVID crash it fell 31.2% and regained its old high 4.4 months after the low.
• Its worst full calendar year was 2022 (-39.0%); its best was 2023 (+44.6%).
• The deepest fall in its price history was 46.7% (Sep 1, 2021 to Nov 9, 2022), recovered by Oct 4, 2024.

As of Jul 31, 2026, the fund held 88 securities; the ten largest made up 70.97% of assets.

By sector

• Over the three months to Jul 31, 2026, investors added a net $112.5M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +0.09%, -6.38%, -1.23%.

FCOM aims to match the MSCI USA IMI Communication Services 25/50 Index, before fees. The index covers US companies that the Global Industry Classification Standard (GICS) places in communication services. GICS is a widely used system for sorting companies by industry. This sector includes search engines and social media, movie, TV and cable companies, video game makers, advertising and publishing firms, and phone and wireless carriers. "IMI" stands for Investable Market Index, which means it includes mid-size and smaller companies as well as large ones.

The fund puts at least 80% of its assets in index securities. It uses "representative sampling": instead of buying every stock, it holds a sample chosen to match the index's company sizes, industry mix, price swings, yield and ease of trading. As of July 31, 2026, it held 88 issuers. Larger companies carry larger weights, within the index's "25/50" caps. These generally keep any one company at or below 25% and keep companies above 5% to 50% combined. Meta Platforms was 20.6%. Alphabet appeared twice, through two share classes, at 14.7% and 8.0%.

Starting December 11, 2025, derivatives that give similar exposure can count toward the 80% rule. As of July 31, 2026, the only one was a tiny stock futures position. The prospectus reports portfolio turnover of 13%. The fund is classified as non-diversified, so a few stocks can move its price a lot.

• FCOM charges 0.084% a year, versus an average of 0.42% for the similar funds below (2nd of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $9 in the first year and $108 over 10 years (assuming a 5% annual return).

FCOM holds a single sector led by a few very large stocks and lost 38.91% in 2022, so it suits a smaller slice around a broader core.

FCOM offers low-cost exposure to internet, media and telecom companies. In the SEC's standard $10,000 example, costs are $9 after one year and $108 after 10 years. Its swings are large. The fund launched in 2013, so it has no record from the 2008 crisis. In the 2020 COVID crash it fell 31.2% and recovered in about 4.4 months. In the 2022 bear market it fell 39.7% and did not recover until May 2024. Its deepest drop was 46.7%, from September 2021 to November 2022, and it took 22.8 months to make that back. Its worst calendar year was 2022, at -38.91%. Anyone who sold shares for spending money during that stretch would have locked in losses. Income is small: a 1.03% trailing yield as of October 27, 2026, paid quarterly. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.

Matched by holdings overlap from the latest N-PORT reports.