Fidelity Disruptive Communications ETF

Fidelity Disruptive Communications ETF (FDCF) is an actively managed fund. Its managers pick about 37 stocks tied to social media, gaming, streaming and network infrastructure, led by Taiwan Semiconductor, Alphabet and Arista Networks. It is concentrated, with about 54% in its top 10 holdings as of August 31, 2026. It also costs more than index funds: 0.50% a year, against 0.09% for Vanguard Communication Services ETF (VOX).

• Over the year to Oct 27, 2026, FDCF returned +0.7%, 7th of 9 among similar funds.
• Its worst full calendar year was 2025 (+27.4%); its best was 2024 (+28.4%).
• The deepest fall in its price history was 22.5% (Feb 13, 2025 to Apr 8, 2025), recovered by Jun 5, 2025.

As of Aug 31, 2026, the fund held 37 securities; the ten largest made up 53.94% of assets.

By sector

• Over the three months to Aug 31, 2026, investors withdrew a net $4.8M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: -1.30%, -3.17%, +4.08%.

FDCF does not track an index. Fidelity's managers aim to keep at least 80% of assets in "disruptive communications" companies. These are firms with new ways of doing business that could push aside established players. The prospectus lists social media, interactive gaming, streaming, metaverse and web 3.0, next-generation digital infrastructure, and connected devices such as 5G and cloud networking. A company can qualify by meeting one or more of five tests. Examples include a new business model, being early to market, or patents with high potential impact. Holdings can come from any sector and any country, and can be growth or value stocks.

To choose stocks, the managers use fundamental analysis, which means studying each company's finances and position in its industry. Quantitative models then help size each position. The prospectus describes no fixed rebalancing schedule. Turnover was 23%, so roughly a quarter of the portfolio changes in a typical year. The fund is "non-diversified": the law lets it put more money into fewer companies than a diversified fund could.

As of August 31, 2026, it held 37 companies. The top 10 made up 53.94% of assets. Taiwan Semiconductor was about 10.2%, Alphabet 7.9%, Arista Networks 6.8%, Nvidia 5.9% and Meta Platforms 5.6%. It also held privately owned Space Exploration Technologies (SpaceX) at about 2.7%. About 74% was in US companies. The fund held no derivatives and 1.68% in cash.

• FDCF charges 0.5% a year, versus an average of 0.48% for the similar funds below (4th of 9, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $51 in the first year and $628 over 10 years (assuming a 5% annual return).

FDCF is a concentrated, actively managed bet on communications and technology stocks that has swung more than the broad market, so it fits best as a small side position.

FDCF could add growth exposure to chipmakers, internet platforms and streaming companies alongside a broad core fund. It moves more than the market. Its beta was 1.35 for the year to October 27, 2026, which means it tended to rise or fall about a third more than the market. The prospectus shows a 39.25% loss in 2022, its worst calendar year. That year included a 24.16% drop in the quarter ended June 30, 2022. In daily prices covering about 3.4 years, its deepest fall was 22.5%, from February 13 to April 8, 2025. It recovered by June 5, 2025. Anyone forced to sell in a slump like that would lock in the loss.

Income is minimal: the yield was 0.06% as of October 27, 2026, paid once a year. Under the SEC's standard example, $10,000 would cost about $628 in fees over 10 years. Past results don't predict future returns, and a plan should look at the whole portfolio, not one fund.

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