Fidelity Electric Vehicles and Future Transportation ETF

Fidelity Electric Vehicles and Future Transportation ETF (FDRV) is an index fund tracking about 50 companies worldwide tied to electric and self-driving vehicles, such as Tesla, Uber, BYD and NXP Semiconductors, using an index Fidelity designed. Its annual fee, or expense ratio, of 0.39% is below the 0.45% to 0.68% charged by three similar funds. However, it posted the weakest one- and three-year returns of the four funds as of October 27, 2026.

• Over the year to Oct 27, 2026, FDRV returned -12.6%, 4th of 4 among similar funds.
• Its 5-year annualized return was -10.6%.
• Its worst full calendar year was 2022 (-44.2%); its best was 2025 (+24.3%).
• The deepest fall in its price history was 63.9% (Nov 8, 2021 to Apr 8, 2025), not yet recovered.

As of Jun 30, 2026, the fund held 50 securities; the ten largest made up 41.36% of assets. It also reported 16.78% in a money-market fund, most likely cash collateral from lending out shares rather than uninvested money.

• Over the three months to Jun 30, 2026, investors withdrew a net $1.9M (creations minus redemptions, per the N-PORT report).
• Monthly total returns reported for that quarter: +18.89%, +8.03%, -6.77%.

FDRV aims to match, before fees, the Fidelity Electric Vehicles and Future Transportation Index, a rules-based index Fidelity created. The index draws from companies of any size worldwide that produce electric or self-driving vehicles, their parts, technology or energy systems, or pursue other changes to transportation. It holds about 25 “future transportation technologies” stocks and about 25 “future transportation enablers.”

After quality screens, stocks are ranked by market share, measured in dollar revenue, and by a relevance score that blends theme-related revenue with natural language processing (NLP), software that scans company documents for keywords. Companies earning over 50% of revenue from these activities, or holding at least 5% market share, make up at least 85% of the index; others generally get lower, capped weights. Each stock is weighted by adjusted market capitalization (stock market value), subject to caps. As of June 30, 2026, the top 10 holdings made up about 41% of assets.

The fund keeps at least 80% of assets in index stocks or depositary receipts (certificates representing foreign shares). It mostly replicates the index, holding its stocks directly, though it may skip some. Derivatives are allowed; on June 30, 2026, it held a tiny Nasdaq-100 futures position. Turnover was 51%, meaning about half the portfolio changed over a year. There is no leverage or options strategy.

• FDRV charges 0.39% a year, versus an average of 0.6% for the similar funds below (1st of 4, cheapest first).
• Using the prospectus's standard example, $10,000 invested would cost about $40 in the first year and $493 over 10 years (assuming a 5% annual return).

It is a narrow, volatile bet on one theme, with a meaningful stake in China and a 63.9% drop that had not been recovered as of October 27, 2026.

FDRV could add concentrated exposure to electric-vehicle and self-driving companies in the US, China and Europe, with steep swings. Launched in October 2021, it has no track record from the 2008 or 2020 crashes. In the 2022 bear market (January 3 to October 12) it fell 45.5%; 2022 was its worst calendar year, at -44.2%. Its deepest drop, 63.9% from November 8, 2021, to April 8, 2025, was not recovered as of October 27, 2026. Withdrawing from it during such a stretch would lock in large losses.

Income is modest: dividends are paid quarterly, and the trailing 12-month yield was 1.45% as of October 27, 2026. The 0.39% expense ratio, about $40 in year one on $10,000 under the SEC's standard example, is below the 0.60% average of three similar funds. Past results don't predict the future, and a plan should weigh the whole portfolio, not one fund.

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