Fidelity Electric Vehicles & Future Transportation Fund (FDRV)

Overview

The company operates a fund that focuses on investing in the burgeoning sector of electric and autonomous vehicles, including their components, technology, and energy systems. It aims to mirror the performance of a global index which captures companies at the forefront of transforming transportation. The investment strategy mandates that at least 80% of the fund's assets be allocated to securities within the index or in depositary receipts of those securities. This strategy underscores the fund's commitment to playing a significant role in the shift towards more sustainable and autonomous transportation solutions. Notably, the fund adopts a non-diversified investment approach, concentrating its investments in this niche yet rapidly evolving sector of the market.

Products and Services

• Securities Investment - The core service provided involves the investment in securities that are part of a carefully selected index. This index represents companies globally that are pioneering in the field of electric and/or autonomous vehicles, encompassing a wide range of market capitalization.

This strategic investment approach allows stakeholders to potentially benefit from the growth and innovation in the electric and autonomous vehicle industry. By investing in a mix of companies involved in vehicle production, component manufacturing, technology development, and energy system innovation, the fund seeks to capture the comprehensive value within this sector.

• Depositary Receipts Investment - In addition to direct securities, the fund invests in depositary receipts representing securities included in the index. These instruments allow the fund to hold shares in foreign companies more conveniently and efficiently.

Investing in depositary receipts broadens the fund's exposure to global markets, enhancing the opportunity to capitalize on the international aspect of the electric and autonomous vehicle industry. This also diversifies the investment portfolio beyond local markets, offering investors exposure to global technological advancements and growth in the sector.

• Non-Diversified Fund Structure - The fund's non-diversified structure means it concentrates its investments more heavily in fewer securities. This approach allows for potentially higher gains from specific investments but comes with an increased level of risk.

The decision to operate as a non-diversified fund is strategic, reflecting a focused commitment to the electric and autonomous vehicle sector. It enables the fund to invest more significantly in companies it deems as having substantial growth potential, aligning with the investors' desire to be at the forefront of transformative transportation technologies.