Fidelity US Equity Research Enhanced UCITS ETF

Investment rationale

This is an actively managed US equity UCITS ETF designed to achieve long-term capital growth from a portfolio primarily invested in US companies. It is an equity fund with a summary risk indicator of 4 out of 7 and a recommended holding period of 5 years. It may appeal to investors with basic knowledge and no or limited fund investing experience who seek capital growth over that period and understand they could lose some or all invested capital. Its role is as broad US equity exposure representative of the broad market index, with an enhanced research-driven and ESG-tilted approach.

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How the strategy works

The fund aims to achieve long-term capital growth from a portfolio primarily made up of equity securities of companies in the United States, and targets outperforming the MSCI USA (Net Total Return) Index by 1% annualised gross over 5 years or more. It invests primarily in equities of companies domiciled in, or exercising the predominant part of their economic activity in, the United States; the benchmark is the MSCI US (N) Index, which reflects large- and mid-cap US companies meeting MSCI size, liquidity and free-float criteria. The benchmark is used for investment selection, risk monitoring, performance comparison and carbon footprint comparison, and the fund may also invest in securities not included in the benchmark and in different proportions, although portfolio and performance are unlikely to vary significantly from it. The fund may use derivatives for efficient portfolio management and currency hedging purposes, follows an accumulating distribution policy with dividends reinvested, and is open-ended with a recommended holding period of 5 years.

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Investment philosophy

• The fund is actively managed using a quantitative approach, with the portfolio usually focused on the highest conviction stock recommendations identified by the Investment Manager’s research analysts.

• It invests primarily in US equities and seeks exposure representative of the broad market index, while excluding companies involved in certain activities and promoting environmental and/or social characteristics under SFDR Article 8.

• On an ongoing basis, the process considers environmental and social characteristics including carbon intensity, carbon emissions, energy efficiency, water and waste management, biodiversity, product safety, supply chain, health and safety, and human rights; the portfolio aims for an ESG score higher than the benchmark.

• The benchmark is the MSCI USA (Net Total Return) Index / MSCI US (N), used for investment selection, risk monitoring, performance and carbon footprint comparison, with limited discretion relative to the benchmark and an expectation that portfolio and performance will not vary significantly from it.

• As of 31.08.2026 the portfolio held 347 holdings across 346 issuers, was 99.4% invested in the USA, and had its largest sector weight in Information Technology at 38.8%; top positions included NVIDIA, Apple, Microsoft, Alphabet and Amazon.com.

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Distinctive features

The fund combines active management with broad-market US equity exposure in a UCITS ETF structure. The strategy uses both sustainable and fundamental research, excludes companies involved in certain activities, and aims to keep exposure representative of the broad market index. It carries ongoing charges of 0.20% and is listed on multiple exchanges and trading currencies including London Stock Exchange, SIX, Xetra and Borsa Italiana. As of 31 August 2026 the portfolio held 347 securities while maintaining a benchmark-aware profile.

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Risks

The summary risk indicator is 4 out of 7, described as a medium risk class, reflecting medium-level potential losses from future performance and the possibility that poor market conditions could affect the product’s capacity to pay. The value of the investment may fall as well as rise and investors may get back less than originally invested, with no protection from future market performance. Currency risk arises because payments may be received in a different currency, and returns may also increase or decrease as a result of exchange-rate fluctuations. Sustainability-related risk: the manager’s focus on issuers with sustainable characteristics may affect performance unfavourably versus similar funds without that focus, and those characteristics may change over time; the fund may also use derivatives for efficient portfolio management and currency hedging.

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Asset manager

The management company is FIL Investment Management (Luxembourg) S.à r.l. Ireland Branch. The fund itself is a sub-fund of Fidelity UCITS ICAV, domiciled in Ireland and authorised by the Central Bank of Ireland as a UCITS. The strategy uses Fidelity sustainable and fundamental research.

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