N-CSRS 1 main.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21990

Fidelity Commonwealth Trust II
 (Exact name of registrant as specified in charter)

82 Devonshire St., Boston, Massachusetts 02109
 (Address of principal executive offices)       (Zip code)

Stephen D. Fisher, Secretary

82 Devonshire St.

Boston, Massachusetts 02109
(Name and address of agent for service)

Registrant's telephone number, including area code: 617-563-7000

Date of fiscal year end:

February 28

 

 

Date of reporting period:

August 31, 2008

Item 1. Reports to Stockholders

Fidelity®
Large Cap Growth Enhanced Index
Large Cap Value Enhanced Index
Large Cap Core Enhanced Index
Mid Cap Enhanced Index
Small Cap Enhanced Index
International Enhanced Index
Funds

Semiannual Report

(2_fidelity_logos) (Registered_Trademark)

August 31, 2008

Contents

Chairman's Message

3

Ned Johnson's message to shareholders

Shareholder Expense Example

4

An example of shareholder expenses

 

Fidelity Large Cap Growth Enhanced Index Fund

5

Investment Changes

 

6

Investments

 

11

Financial Statements

 

Fidelity Large Cap Value Enhanced Index Fund

13

Investment Changes

 

14

Investments

 

19

Financial Statements

 

Fidelity Large Cap Core Enhanced Index Fund

21

Investment Changes

 

22

Investments

 

27

Financial Statements

 

 

 

Fidelity Mid Cap Enhanced Index Fund

29

Investment Changes

 

30

Investments

 

36

Financial Statements

 

Fidelity Small Cap Enhanced Index Fund

38

Investment Changes

 

39

Investments

 

45

Financial Statements

 

Fidelity International Enhanced Index Fund

47

Investment Changes

 

48

Investments

 

53

Financial Statements

 

Notes

55

Notes to the Financial Statements

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com (search for "proxy voting guidelines") or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

Geode is a registered trademark of Geode Capital Management, LLC.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other third party marks appearing herein are the property of their respective owners.

All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company.

This report and the financial statements contained herein are submitted for the general information of the shareholders of the funds. This report is not authorized for distribution to prospective investors in the funds unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the funds nor Fidelity Distributors Corporation is a bank.

Semiannual Report

Chairman's Message

Dear Shareholder:

Most domestic and international equity indexes continued to dwell in negative territory, pressured by unfavorable credit-market conditions, particularly in the United States. On the upside, investment-grade bonds and money markets generally have served investors well so far this year. Financial markets are always unpredictable, but there are a number of time-tested principles that can put the historical odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies

indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,

/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Semiannual Report

Shareholder Expense Example

As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including redemption fees, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2008 to August 31, 2008).

Actual Expenses

The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. An annual index fund fee of $10 that is charged once a year may apply for certain accounts with a value of less than $10,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. An annual index fund fee of $10 that is charged once a year may apply for certain accounts with a value of less than $10,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, each Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

 

Beginning
Account Value
March 1, 2008

Ending
Account Value
August 31, 2008

Expenses Paid
During Period*
March 1, 2008
to August 31, 2008

Fidelity Large Cap Growth Enhanced Index Fund

 

 

 

Actual

$ 1,000.00

$ 1,002.20

$ 2.27

HypotheticalA

$ 1,000.00

$ 1,022.94

$ 2.29

Fidelity Large Cap Value Enhanced Index Fund

 

 

 

Actual

$ 1,000.00

$ 943.40

$ 2.20

HypotheticalA

$ 1,000.00

$ 1,022.94

$ 2.29

Fidelity Large Cap Core Enhanced Index Fund

 

 

 

Actual

$ 1,000.00

$ 978.20

$ 2.24

HypotheticalA

$ 1,000.00

$ 1,022.94

$ 2.29

Fidelity Mid Cap Enhanced Index Fund

 

 

 

Actual

$ 1,000.00

$ 1,004.40

$ 3.03

HypotheticalA

$ 1,000.00

$ 1,022.18

$ 3.06

Fidelity Small Cap Enhanced Index Fund

 

 

 

Actual

$ 1,000.00

$ 1,050.50

$ 3.46

HypotheticalA

$ 1,000.00

$ 1,021.83

$ 3.41

Fidelity International Enhanced Index Fund

 

 

 

Actual

$ 1,000.00

$ 892.70

$ 2.96

HypotheticalA

$ 1,000.00

$ 1,022.08

$ 3.16

A 5% return per year before expenses

* Expenses are equal to each Fund's annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

 

Annualized
Expense Ratio

Fidelity Large Cap Growth Enhanced Index Fund

.45%

Fidelity Large Cap Value Enhanced Index Fund

.45%

Fidelity Large Cap Core Enhanced Index Fund

.45%

Fidelity Mid Cap Enhanced Index Fund

.60%

Fidelity Small Cap Enhanced Index Fund

.67%

Fidelity International Enhanced Index Fund

.62%

Semiannual Report

Fidelity Large Cap Growth Enhanced Index Fund

Investment Changes (Unaudited)

Top Ten Stocks as of August 31, 2008

 

% of fund's
net assets

% of fund's net assets
6 months ago

Microsoft Corp.

3.4

3.4

International Business Machines Corp.

2.7

2.2

Hewlett-Packard Co.

2.2

1.9

Cisco Systems, Inc.

2.2

2.1

Apple, Inc.

2.1

1.7

Wal-Mart Stores, Inc.

2.0

1.5

Intel Corp.

2.0

1.7

Schlumberger Ltd. (NY Shares)

1.7

1.5

PepsiCo, Inc.

1.6

1.2

Exxon Mobil Corp.

1.6

1.5

 

21.5

 

Market Sectors as of August 31, 2008

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

28.4

27.3

Health Care

13.8

16.9

Industrials

13.1

12.2

Consumer Staples

11.6

11.4

Energy

10.3

8.3

Consumer Discretionary

10.1

10.1

Materials

4.8

4.1

Financials

4.3

5.5

Utilities

1.3

0.8

Telecommunication Services

0.9

0.9

Semiannual Report

Fidelity Large Cap Growth Enhanced Index Fund

Investments August 31, 2008 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 98.6%

Shares

Value

CONSUMER DISCRETIONARY - 10.1%

Auto Components - 0.2%

Autoliv, Inc.

1,209

$ 46,414

Diversified Consumer Services - 1.1%

Apollo Group, Inc. Class A (non-vtg.) (a)

2,275

144,872

ITT Educational Services, Inc. (a)

1,585

140,922

Weight Watchers International, Inc.

1,673

66,251

 

352,045

Hotels, Restaurants & Leisure - 1.7%

Choice Hotels International, Inc.

1,070

28,879

McDonald's Corp.

6,142

381,111

Yum! Brands, Inc.

3,821

136,333

 

546,323

Household Durables - 0.2%

NVR, Inc. (a)(d)

130

77,705

Internet & Catalog Retail - 0.3%

Amazon.com, Inc. (a)

1,100

88,891

Media - 2.5%

Comcast Corp. Class A

3,519

74,532

DISH Network Corp. Class A (a)

2,515

70,948

Liberty Media Corp. - Entertainment Class A (a)

640

17,786

McGraw-Hill Companies, Inc.

3,120

133,661

News Corp. Class A

8,562

121,238

Omnicom Group, Inc.

3,941

167,059

The Walt Disney Co.

4,529

146,513

Viacom, Inc. Class B (non-vtg.) (a)

1,690

49,821

 

781,558

Multiline Retail - 0.9%

Big Lots, Inc. (a)

3,325

98,320

Dollar Tree, Inc. (a)

1,700

65,212

Target Corp.

2,263

119,984

 

283,516

Specialty Retail - 2.5%

Aeropostale, Inc. (a)

3,326

115,944

American Eagle Outfitters, Inc.

1,211

18,226

AutoZone, Inc. (a)

825

113,215

Gamestop Corp. Class A (a)

3,432

150,562

RadioShack Corp.

5,074

96,457

Ross Stores, Inc.

2,250

90,473

TJX Companies, Inc.

6,029

218,491

 

803,368

Textiles, Apparel & Luxury Goods - 0.7%

NIKE, Inc. Class B

2,370

143,646

Warnaco Group, Inc. (a)

1,250

64,463

 

208,109

TOTAL CONSUMER DISCRETIONARY

3,187,929

CONSUMER STAPLES - 11.6%

Beverages - 3.0%

Anheuser-Busch Companies, Inc.

500

33,930

 

Shares

Value

PepsiCo, Inc.

7,209

$ 493,672

The Coca-Cola Co.

8,087

421,090

 

948,692

Food & Staples Retailing - 3.5%

Costco Wholesale Corp.

541

36,279

CVS Caremark Corp.

1,200

43,920

Kroger Co.

5,935

163,925

Longs Drug Stores Corp.

1,985

142,225

Wal-Mart Stores, Inc.

10,588

625,433

Walgreen Co.

2,574

93,771

 

1,105,553

Food Products - 0.9%

General Mills, Inc.

2,000

132,360

Wm. Wrigley Jr. Co.

1,925

152,999

 

285,359

Household Products - 1.9%

Church & Dwight Co., Inc.

1,650

103,125

Colgate-Palmolive Co.

1,590

120,888

Kimberly-Clark Corp.

145

8,944

Procter & Gamble Co.

5,478

382,200

 

615,157

Personal Products - 0.2%

Herbalife Ltd.

985

46,394

Tobacco - 2.1%

Altria Group, Inc.

7,190

151,206

Philip Morris International, Inc.

8,673

465,740

UST, Inc.

1,000

53,590

 

670,536

TOTAL CONSUMER STAPLES

3,671,691

ENERGY - 10.3%

Energy Equipment & Services - 5.9%

Baker Hughes, Inc.

395

31,604

Cameron International Corp. (a)

1,840

85,726

Dresser-Rand Group, Inc. (a)

3,570

144,799

ENSCO International, Inc.

2,228

151,014

FMC Technologies, Inc. (a)

1,775

95,069

Halliburton Co.

5,561

244,350

National Oilwell Varco, Inc. (a)

3,376

248,912

Schlumberger Ltd. (NY Shares)

5,662

533,474

Tidewater, Inc.

1,704

103,382

Transocean, Inc. (a)

1,724

219,293

Weatherford International Ltd. (a)

922

35,571

 

1,893,194

Oil, Gas & Consumable Fuels - 4.4%

Alpha Natural Resources, Inc. (a)

350

34,685

Chevron Corp.

1,045

90,204

ConocoPhillips

595

49,093

Continental Resources, Inc. (a)

800

40,136

EOG Resources, Inc.

155

16,185

Exxon Mobil Corp.

6,118

489,501

Common Stocks - continued

Shares

Value

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Foundation Coal Holdings, Inc.

750

$ 44,363

Hess Corp.

715

74,868

Massey Energy Co.

1,615

106,525

McMoRan Exploration Co. (a)

1,500

41,025

Occidental Petroleum Corp.

3,065

243,238

Valero Energy Corp.

1,793

62,325

W&T Offshore, Inc.

694

24,401

Walter Industries, Inc.

650

60,970

Williams Companies, Inc.

310

9,576

 

1,387,095

TOTAL ENERGY

3,280,289

FINANCIALS - 4.3%

Capital Markets - 1.8%

Bank of New York Mellon Corp.

1,300

44,993

Charles Schwab Corp.

2,300

55,177

Franklin Resources, Inc.

206

21,527

Goldman Sachs Group, Inc.

520

85,264

MF Global Ltd. (a)(d)

9,000

66,330

Northern Trust Corp.

1,530

122,997

optionsXpress Holdings, Inc.

550

12,689

State Street Corp.

1,350

91,355

T. Rowe Price Group, Inc.

499

29,621

TD Ameritrade Holding Corp. (a)

2,200

44,946

 

574,899

Consumer Finance - 0.4%

American Express Co.

2,591

102,811

Diversified Financial Services - 0.3%

JPMorgan Chase & Co.

1,136

43,725

NYSE Euronext

1,357

55,081

 

98,806

Insurance - 0.9%

AFLAC, Inc.

1,650

93,555

Prudential Financial, Inc.

898

66,192

The Chubb Corp.

1,265

60,733

The Travelers Companies, Inc.

1,640

72,422

 

292,902

Real Estate Investment Trusts - 0.7%

Annaly Capital Management, Inc.

3,250

48,620

Boston Properties, Inc.

200

20,494

Mack-Cali Realty Corp.

1,000

40,420

National Retail Properties, Inc. (d)

850

19,287

ProLogis Trust

2,045

88,058

 

216,879

Real Estate Management & Development - 0.2%

Jones Lang LaSalle, Inc.

1,116

55,577

 

Shares

Value

Thrifts & Mortgage Finance - 0.0%

Freddie Mac

1,440

$ 6,494

TOTAL FINANCIALS

1,348,368

HEALTH CARE - 13.8%

Biotechnology - 2.7%

Biogen Idec, Inc. (a)

1,151

58,620

Celgene Corp. (a)

1,000

69,300

Cephalon, Inc. (a)(d)

1,510

115,696

Genentech, Inc. (a)

1,360

134,300

Genzyme Corp. (a)

1,975

154,643

Gilead Sciences, Inc. (a)

4,945

260,503

OSI Pharmaceuticals, Inc. (a)

1,390

70,195

 

863,257

Health Care Equipment & Supplies - 2.7%

Baxter International, Inc.

4,841

328,026

Edwards Lifesciences Corp. (a)

1,125

66,611

Kinetic Concepts, Inc. (a)(d)

2,500

87,900

Medtronic, Inc.

6,566

358,504

St. Jude Medical, Inc. (a)

500

22,915

 

863,956

Health Care Providers & Services - 2.7%

Aetna, Inc.

1,500

64,710

AmerisourceBergen Corp.

1,350

55,364

Express Scripts, Inc. (a)

2,704

198,501

Laboratory Corp. of America Holdings (a)

1,554

113,675

McKesson Corp.

2,350

135,783

Medco Health Solutions, Inc. (a)

3,325

155,776

WellPoint, Inc. (a)

2,481

130,972

 

854,781

Life Sciences Tools & Services - 1.1%

Applied Biosystems, Inc.

1,657

60,464

Invitrogen Corp. (a)

3,280

139,269

Waters Corp. (a)

2,240

152,880

 

352,613

Pharmaceuticals - 4.6%

Abbott Laboratories

8,153

468,227

Bristol-Myers Squibb Co.

6,221

132,756

Eli Lilly & Co.

2,810

131,087

Johnson & Johnson

5,351

376,871

Merck & Co., Inc.

1,600

57,072

Pfizer, Inc.

2,165

41,373

Schering-Plough Corp.

9,163

177,762

Wyeth

1,470

63,622

 

1,448,770

TOTAL HEALTH CARE

4,383,377

Common Stocks - continued

Shares

Value

INDUSTRIALS - 13.1%

Aerospace & Defense - 4.7%

General Dynamics Corp.

750

$ 69,225

Goodrich Corp.

1,310

67,138

Honeywell International, Inc.

4,450

223,257

L-3 Communications Holdings, Inc.

1,550

161,107

Lockheed Martin Corp.

2,649

308,450

Northrop Grumman Corp.

1,000

68,850

Precision Castparts Corp.

567

58,548

Raytheon Co.

2,310

138,577

The Boeing Co.

3,658

239,818

TransDigm Group, Inc. (a)

900

33,804

United Technologies Corp.

2,030

133,148

 

1,501,922

Air Freight & Logistics - 0.4%

C.H. Robinson Worldwide, Inc.

140

7,295

United Parcel Service, Inc. Class B

1,933

123,944

 

131,239

Building Products - 0.1%

Lennox International, Inc.

705

26,085

Commercial Services & Supplies - 0.1%

Covanta Holding Corp. (a)

1,250

34,775

Construction & Engineering - 1.0%

EMCOR Group, Inc. (a)

4,365

148,716

Fluor Corp.

1,860

149,042

KBR, Inc.

789

19,370

 

317,128

Electrical Equipment - 1.3%

Acuity Brands, Inc.

2,093

91,066

Emerson Electric Co.

5,548

259,646

EnerSys (a)

500

14,060

GrafTech International Ltd. (a)

1,400

28,448

 

393,220

Industrial Conglomerates - 0.8%

3M Co.

2,385

170,766

McDermott International, Inc. (a)

2,534

88,006

 

258,772

Machinery - 2.9%

Actuant Corp. Class A

1,200

37,860

Bucyrus International, Inc. Class A

1,400

97,790

Caterpillar, Inc.

2,558

180,927

Deere & Co.

650

45,871

Eaton Corp.

1,363

99,744

Flowserve Corp.

743

98,165

Gardner Denver, Inc. (a)

1,355

61,165

John Bean Technologies Corp. (a)

445

5,785

Joy Global, Inc.

1,719

122,118

Manitowoc Co., Inc.

3,640

91,655

 

Shares

Value

Nordson Corp.

297

$ 15,928

Parker Hannifin Corp.

1,173

75,154

 

932,162

Road & Rail - 1.8%

Burlington Northern Santa Fe Corp.

500

53,700

Con-way, Inc.

1,685

82,734

CSX Corp.

1,680

108,662

Norfolk Southern Corp.

2,405

176,840

Union Pacific Corp.

1,750

146,825

 

568,761

TOTAL INDUSTRIALS

4,164,064

INFORMATION TECHNOLOGY - 28.4%

Communications Equipment - 4.1%

Adtran, Inc.

1,660

37,848

Cisco Systems, Inc. (a)

28,716

690,620

Corning, Inc.

4,404

90,458

Harris Corp.

900

47,124

QUALCOMM, Inc.

8,540

449,631

 

1,315,681

Computers & Peripherals - 8.9%

Apple, Inc. (a)

3,965

672,186

Dell, Inc. (a)

7,990

173,623

EMC Corp. (a)

12,984

198,396

Hewlett-Packard Co.

14,759

692,492

International Business Machines Corp.

6,976

849,188

NetApp, Inc. (a)

4,080

103,958

Seagate Technology

1,765

26,316

Teradata Corp. (a)

3,660

89,926

 

2,806,085

Electronic Equipment & Instruments - 0.4%

Mettler-Toledo International, Inc. (a)

1,300

136,760

Internet Software & Services - 1.9%

eBay, Inc. (a)

3,600

89,748

Google, Inc. Class A (sub. vtg.) (a)

1,044

483,675

Yahoo!, Inc. (a)

2,212

42,869

 

616,292

IT Services - 2.7%

Accenture Ltd. Class A

4,110

169,990

Alliance Data Systems Corp. (a)(d)

1,265

81,264

Automatic Data Processing, Inc.

1,750

77,665

Fiserv, Inc. (a)

1,410

73,123

MasterCard, Inc. Class A

525

127,339

The Western Union Co.

8,318

229,743

Total System Services, Inc.

1,129

22,490

Visa, Inc.

818

62,086

 

843,700

Semiconductors & Semiconductor Equipment - 4.1%

Amkor Technology, Inc. (a)(d)

4,610

34,621

Applied Materials, Inc.

9,427

168,932

Integrated Device Technology, Inc. (a)

2,500

26,475

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - continued

Intel Corp.

27,098

$ 619,731

Linear Technology Corp.

2,620

85,517

Marvell Technology Group Ltd. (a)

2,908

41,032

MEMC Electronic Materials, Inc. (a)

400

19,636

National Semiconductor Corp.

6,370

136,509

Texas Instruments, Inc.

6,459

158,310

 

1,290,763

Software - 6.3%

Adobe Systems, Inc. (a)

5,215

223,358

BMC Software, Inc. (a)

2,500

81,400

CA, Inc.

1,530

36,582

McAfee, Inc. (a)

4,070

161,009

Microsoft Corp.

39,010

1,064,574

Oracle Corp. (a)

19,158

420,135

Solera Holdings, Inc. (a)

281

8,663

 

1,995,721

TOTAL INFORMATION TECHNOLOGY

9,005,002

MATERIALS - 4.8%

Chemicals - 2.9%

Airgas, Inc.

1,300

77,012

Celanese Corp. Class A

2,750

106,040

E.I. du Pont de Nemours & Co.

851

37,818

Lubrizol Corp.

2,430

128,766

Monsanto Co.

3,497

399,532

Praxair, Inc.

284

25,515

The Mosaic Co.

1,400

149,436

 

924,119

Containers & Packaging - 0.7%

Crown Holdings, Inc. (a)

1,910

52,983

Greif, Inc. Class A

1,050

72,566

Owens-Illinois, Inc. (a)

2,041

91,029

 

216,578

Metals & Mining - 1.2%

AK Steel Holding Corp.

2,201

115,795

Alcoa, Inc.

84

2,699

Cleveland-Cliffs, Inc. (d)

150

15,183

Freeport-McMoRan Copper & Gold, Inc. Class B

780

69,670

Nucor Corp.

1,760

92,400

Reliance Steel & Aluminum Co.

675

38,482

Southern Copper Corp. (d)

1,710

43,656

 

377,885

TOTAL MATERIALS

1,518,582

 

Shares

Value

TELECOMMUNICATION SERVICES - 0.9%

Diversified Telecommunication Services - 0.9%

CenturyTel, Inc.

1,680

$ 64,898

Frontier Communications Corp.

6,755

84,910

Windstream Corp.

10,510

130,534

 

280,342

UTILITIES - 1.3%

Electric Utilities - 0.7%

DPL, Inc.

3,000

74,460

Edison International

750

34,440

Exelon Corp.

908

68,972

Pepco Holdings, Inc.

1,850

46,898

 

224,770

Gas Utilities - 0.1%

Energen Corp.

815

45,510

Multi-Utilities - 0.5%

Dominion Resources, Inc.

800

34,824

Public Service Enterprise Group, Inc.

2,915

118,845

 

153,669

TOTAL UTILITIES

423,949

TOTAL COMMON STOCKS

(Cost $31,946,763)

31,263,593

Investment Companies - 0.8%

 

 

 

 

iShares Russell 1000 Growth Index ETF
(Cost $236,848)

4,300

234,995

Money Market Funds - 1.6%

 

 

 

 

Fidelity Securities Lending Cash Central Fund, 2.35% (b)(c)
(Cost $516,910)

516,910

516,910

TOTAL INVESTMENT PORTFOLIO - 101.0%

(Cost $32,700,521)

32,015,498

NET OTHER ASSETS - (1.0)%

(311,398)

NET ASSETS - 100%

$ 31,704,100

Legend

(a) Non-income producing

(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

(c) Investment made with cash collateral received from securities on loan.

(d) Security or a portion of the security is on loan at period end.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund

Income earned

Fidelity Securities Lending Cash Central Fund

$ 665

Other Information

The following is a summary of the inputs used, as of August 31, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities

32,015,498

32,015,498

-

-

Income Tax Information

At February 29, 2008, the fund had a capital loss carryforward of approximately $298,456 all of which will expire on February 29, 2016.

The fund intends to elect to defer to its fiscal year ending February 28, 2009 approximately $382,471 of losses recognized during the period November 1, 2007 to February 29, 2008.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Large Cap Growth Enhanced Index Fund

Financial Statements

Statement of Assets and Liabilities

  

August 31, 2008 (Unaudited)

 

 

 

Assets

Investment in securities, at value (including securities loaned of $500,021) - See accompanying schedule:

Unaffiliated issuers (cost $32,183,611)

$ 31,498,588

 

Fidelity Central Funds (cost $516,910)

516,910

 

Total Investments (cost $32,700,521)

 

$ 32,015,498

Receivable for investments sold

4,399,744

Receivable for fund shares sold

201,565

Dividends receivable

51,624

Interest receivable

140

Distributions receivable from Fidelity Central Funds

261

Total assets

36,668,832

 

 

 

Liabilities

Payable to custodian bank

$ 4,184,454

Payable for investments purchased

236,848

Payable for fund shares redeemed

13,377

Accrued management fee

8,785

Other affiliated payables

4,358

Collateral on securities loaned, at value

516,910

Total liabilities

4,964,732

 

 

 

Net Assets

$ 31,704,100

Net Assets consist of:

 

Paid in capital

$ 35,665,021

Undistributed net investment income

159,207

Accumulated undistributed net realized gain (loss) on investments

(3,435,105)

Net unrealized appreciation (depreciation) on investments

(685,023)

Net Assets, for 3,425,166 shares outstanding

$ 31,704,100

Net Asset Value, offering price and redemption price per share ($31,704,100 ÷ 3,425,166 shares)

$ 9.26

Statement of Operations

 

Six months ended August 31, 2008 (Unaudited)

 

  

  

Investment Income

  

  

Dividends

 

$ 244,108

Interest

 

692

Income from Fidelity Central Funds

 

665

Total income

 

245,465

 

 

 

Expenses

Management fee

$ 51,948

Transfer agent fees

26,752

Independent trustees' compensation

1,555

Total expenses

80,255

Net investment income (loss)

165,210

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

 

(2,687,404)

Change in net unrealized appreciation (depreciation) on investment securities

2,574,911

Net gain (loss)

(112,493)

Net increase (decrease) in net assets resulting from operations

$ 52,717

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Large Cap Growth Enhanced Index Fund
Financial Statements - continued

Statement of Changes in Net Assets

  

Six months ended August 31, 2008 (Unaudited)

For the period
April 19, 2007 (commencement of operations) to February 29, 2008

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 165,210

$ 220,123

Net realized gain (loss)

(2,687,404)

(747,701)

Change in net unrealized appreciation (depreciation)

2,574,911

(3,259,934)

Net increase (decrease) in net assets resulting from operations

52,717

(3,787,512)

Distributions to shareholders from net investment income

(37,260)

(187,061)

Share transactions
Proceeds from sales of shares

6,997,797

52,976,622

Reinvestment of distributions

35,588

176,444

Cost of shares redeemed

(10,287,101)

(14,236,134)

Net increase (decrease) in net assets resulting from share transactions

(3,253,716)

38,916,932

Total increase (decrease) in net assets

(3,238,259)

34,942,359

 

 

 

Net Assets

Beginning of period

34,942,359

-

End of period (including undistributed net investment income of $159,207 and undistributed net investment income of $33,062, respectively)

$ 31,704,100

$ 34,942,359

Other Information

Shares

Sold

741,720

5,174,309

Issued in reinvestment of distributions

3,852

17,081

Redeemed

(1,098,824)

(1,412,972)

Net increase (decrease)

(353,252)

3,778,418

Financial Highlights

 

Six months ended August 31, 2008
Year ended
February 29,
 
(Unaudited)
2008G

Selected Per-Share Data

 

 

Net asset value, beginning of period

$ 9.25

$ 10.00

Income from Investment Operations

 

 

Net investment income (loss)D

  .04

.08

Net realized and unrealized gain (loss)

  (.02)

(.78)

Total from investment operations

  .02

(.70)

Distributions from net investment income

  (.01)

(.05)

Net asset value, end of period

$ 9.26

$ 9.25

Total Return B, C

  .22%

(7.05)%

Ratios to Average Net Assets E, H

 

 

Expenses before reductions

  .45% A

.45%A

Expenses net of fee waivers, if any

  .45%A

.45%A

Expenses net of all reductions

  .45%A

.45%A

Net investment income (loss)

  .93%A

.89%A

Supplemental Data

 

 

Net assets, end of period (000 omitted)

$ 31,704

$ 34,942

Portfolio turnover rate F

  73%A

36%A

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Calculated based on average shares outstanding during the period.

E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G For the period April 19, 2007 (commencement of operations) to February 29, 2008.

H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Large Cap Value Enhanced Index Fund

Investment Changes (Unaudited)

Top Ten Stocks as of August 31, 2008

 

% of fund's
net assets

% of fund's net assets
6 months ago

Exxon Mobil Corp.

5.8

6.3

General Electric Co.

4.2

4.4

Chevron Corp.

3.2

3.3

AT&T, Inc.

3.0

3.4

iShares Russell 1000 Value Index ETF

2.7

0.5

Pfizer, Inc.

2.5

2.7

Johnson & Johnson

2.3

1.7

Bank of America Corp.

2.3

2.8

JPMorgan Chase & Co.

2.1

2.3

ConocoPhillips

2.0

2.0

 

30.1

 

Market Sectors as of August 31, 2008

 

% of fund's
net assets

% of fund's net assets
6 months ago

Financials

25.1

27.4

Energy

15.6

17.4

Health Care

11.7

7.6

Industrials

9.3

11.0

Consumer Staples

8.4

8.9

Consumer Discretionary

7.6

6.7

Utilities

6.1

6.1

Telecommunication Services

5.8

6.1

Materials

3.9

5.3

Information Technology

3.2

2.7

Semiannual Report

Fidelity Large Cap Value Enhanced Index Fund

Investments August 31, 2008 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 96.7%

Shares

Value

CONSUMER DISCRETIONARY - 7.6%

Automobiles - 0.1%

General Motors Corp. (d)

2,236

$ 22,360

Diversified Consumer Services - 0.4%

ITT Educational Services, Inc. (a)

905

80,464

Weight Watchers International, Inc.

827

32,749

 

113,213

Hotels, Restaurants & Leisure - 0.9%

Darden Restaurants, Inc.

1,147

33,596

Interval Leisure Group, Inc. (a)

555

7,209

McDonald's Corp.

3,718

230,702

 

271,507

Household Durables - 0.1%

Fortune Brands, Inc.

725

42,645

Internet & Catalog Retail - 0.0%

HSN, Inc. (a)

555

8,131

Ticketmaster (a)

555

11,894

 

20,025

Media - 3.8%

CBS Corp. Class B

6,283

101,659

Comcast Corp. Class A

9,500

201,210

DISH Network Corp. Class A (a)

1,329

37,491

Meredith Corp.

2,378

67,488

News Corp. Class A

6,370

90,199

Omnicom Group, Inc.

1,412

59,855

The Walt Disney Co.

10,731

347,148

Time Warner, Inc.

15,353

251,329

 

1,156,379

Multiline Retail - 0.8%

Big Lots, Inc. (a)

5,621

166,213

Dollar Tree, Inc. (a)

1,932

74,112

 

240,325

Specialty Retail - 1.5%

AnnTaylor Stores Corp. (a)

2,656

64,488

Gap, Inc.

6,603

128,428

Home Depot, Inc.

5,015

136,007

Lowe's Companies, Inc.

3,140

77,370

RadioShack Corp.

2,718

51,669

 

457,962

TOTAL CONSUMER DISCRETIONARY

2,324,416

CONSUMER STAPLES - 8.4%

Beverages - 1.0%

Anheuser-Busch Companies, Inc.

1,449

98,329

PepsiCo, Inc.

459

31,432

The Coca-Cola Co.

3,490

181,724

 

311,485

Food & Staples Retailing - 2.3%

BJ's Wholesale Club, Inc. (a)

3,516

133,713

CVS Caremark Corp.

3,173

116,132

 

Shares

Value

Kroger Co.

6,556

$ 181,077

Safeway, Inc.

3,696

97,353

SUPERVALU, Inc.

1,588

36,826

Wal-Mart Stores, Inc.

2,197

129,777

 

694,878

Food Products - 1.9%

Archer Daniels Midland Co.

1,577

40,150

General Mills, Inc.

4,001

264,786

H.J. Heinz Co.

785

39,501

Kraft Foods, Inc. Class A

5,605

176,614

Sara Lee Corp.

3,291

44,429

 

565,480

Household Products - 2.1%

Kimberly-Clark Corp.

341

21,033

Procter & Gamble Co.

8,816

615,092

 

636,125

Tobacco - 1.1%

Altria Group, Inc.

4,291

90,240

Lorillard, Inc. (a)

392

28,318

Philip Morris International, Inc.

1,515

81,356

Reynolds American, Inc.

2,832

150,039

 

349,953

TOTAL CONSUMER STAPLES

2,557,921

ENERGY - 15.6%

Energy Equipment & Services - 0.9%

ENSCO International, Inc.

1,634

110,753

Halliburton Co.

1,955

85,903

Tidewater, Inc.

1,180

71,591

 

268,247

Oil, Gas & Consumable Fuels - 14.7%

Anadarko Petroleum Corp.

1,530

94,447

Apache Corp.

1,086

124,217

Chevron Corp.

11,305

975,848

ConocoPhillips

7,522

620,640

Devon Energy Corp.

1,522

155,320

EOG Resources, Inc.

305

31,848

Exxon Mobil Corp.

22,160

1,773,014

Frontline Ltd. (NY Shares)

556

33,588

Hess Corp.

757

79,265

Marathon Oil Corp.

3,424

154,320

Noble Energy, Inc.

1,876

134,565

Occidental Petroleum Corp.

921

73,091

Spectra Energy Corp.

7,382

195,328

W&T Offshore, Inc.

1,540

54,146

 

4,499,637

TOTAL ENERGY

4,767,884

Common Stocks - continued

Shares

Value

FINANCIALS - 25.1%

Capital Markets - 5.1%

Allied Capital Corp. (d)

2,899

$ 42,760

Apollo Investment Corp.

3,111

55,065

Bank of New York Mellon Corp.

5,321

184,160

Goldman Sachs Group, Inc.

2,355

386,149

Invesco Ltd.

2,779

71,226

Knight Capital Group, Inc. Class A (a)

7,150

123,266

Lehman Brothers Holdings, Inc.

2,585

41,593

Merrill Lynch & Co., Inc.

4,236

120,091

Morgan Stanley (d)

4,762

194,432

Northern Trust Corp.

163

13,104

Raymond James Financial, Inc. (d)

4,831

148,940

State Street Corp.

1,388

93,926

TD Ameritrade Holding Corp. (a)

3,985

81,414

 

1,556,126

Commercial Banks - 4.5%

BB&T Corp. (d)

5,091

152,730

Fifth Third Bancorp (d)

2,532

39,955

PNC Financial Services Group, Inc.

1,538

110,659

Regions Financial Corp.

7,110

65,910

SunTrust Banks, Inc.

862

36,109

U.S. Bancorp, Delaware

8,191

260,965

UMB Financial Corp.

845

43,965

Wachovia Corp.

10,533

167,369

Wells Fargo & Co.

15,946

482,685

 

1,360,347

Consumer Finance - 0.5%

Capital One Financial Corp. (d)

1,965

86,735

Discover Financial Services

4,560

75,012

 

161,747

Diversified Financial Services - 6.0%

Bank of America Corp.

22,019

685,672

Citigroup, Inc.

25,343

481,264

JPMorgan Chase & Co.

16,922

651,328

 

1,818,264

Insurance - 5.6%

ACE Ltd.

2,727

143,467

Allstate Corp.

1,580

71,305

American International Group, Inc.

11,049

237,443

Arch Capital Group Ltd. (a)

1,379

96,199

Aspen Insurance Holdings Ltd.

3,741

101,381

Axis Capital Holdings Ltd.

3,269

109,283

Genworth Financial, Inc. Class A (non-vtg.)

1,958

31,426

Hartford Financial Services Group, Inc.

849

53,555

Loews Corp.

1,570

68,185

MetLife, Inc.

1,942

105,256

PartnerRe Ltd.

841

57,953

Platinum Underwriters Holdings Ltd.

1,886

68,179

Prudential Financial, Inc.

962

70,909

The Chubb Corp.

1,948

93,523

 

Shares

Value

The Travelers Companies, Inc.

3,888

$ 171,694

Unum Group

6,039

153,451

W.R. Berkley Corp.

3,085

72,683

XL Capital Ltd. Class A

907

18,231

 

1,724,123

Real Estate Investment Trusts - 3.1%

AMB Property Corp. (SBI) (d)

1,315

59,688

Annaly Capital Management, Inc.

4,864

72,765

Boston Properties, Inc.

1,057

108,311

CBL & Associates Properties, Inc.

3,985

86,435

Colonial Properties Trust (SBI) (d)

2,153

40,713

Equity Residential (SBI)

898

37,896

HCP, Inc.

969

35,097

Hospitality Properties Trust (SBI)

4,002

90,765

Host Hotels & Resorts, Inc.

2,327

33,276

HRPT Properties Trust (SBI)

6,884

52,181

Mid-America Apartment Communities, Inc.

604

30,297

ProLogis Trust

1,167

50,251

Public Storage

302

26,673

SL Green Realty Corp.

788

67,768

Vornado Realty Trust

1,668

165,899

 

958,015

Thrifts & Mortgage Finance - 0.3%

Fannie Mae

4,972

34,008

Hudson City Bancorp, Inc.

1,804

33,266

New York Community Bancorp, Inc. (d)

1,690

27,868

Tree.com, Inc. (a)

92

699

 

95,841

TOTAL FINANCIALS

7,674,463

HEALTH CARE - 11.7%

Biotechnology - 1.1%

Amgen, Inc. (a)

4,227

265,667

Biogen Idec, Inc. (a)

1,390

70,793

 

336,460

Health Care Equipment & Supplies - 0.5%

Boston Scientific Corp. (a)

6,582

82,670

Covidien Ltd.

1,449

78,347

 

161,017

Health Care Providers & Services - 2.1%

Health Management Associates, Inc. Class A (a)

19,318

112,238

HealthSouth Corp. (a)

5,138

92,433

LifePoint Hospitals, Inc. (a)

2,535

85,531

Owens & Minor, Inc.

950

43,814

UnitedHealth Group, Inc.

1,456

44,335

WellPoint, Inc. (a)

4,782

252,442

 

630,793

Life Sciences Tools & Services - 0.3%

Thermo Fisher Scientific, Inc. (a)

1,300

78,728

Common Stocks - continued

Shares

Value

HEALTH CARE - continued

Pharmaceuticals - 7.7%

Eli Lilly & Co.

3,688

$ 172,045

Johnson & Johnson

10,076

709,653

King Pharmaceuticals, Inc. (a)

15,138

173,179

Merck & Co., Inc.

7,304

260,534

Pfizer, Inc.

40,012

764,629

Wyeth

6,410

277,425

 

2,357,465

TOTAL HEALTH CARE

3,564,463

INDUSTRIALS - 9.3%

Aerospace & Defense - 2.1%

General Dynamics Corp.

1,936

178,693

Honeywell International, Inc.

1,090

54,685

Lockheed Martin Corp.

706

82,207

Northrop Grumman Corp.

930

64,031

Raytheon Co.

1,536

92,145

The Boeing Co.

837

54,874

United Technologies Corp.

1,742

114,258

 

640,893

Air Freight & Logistics - 0.4%

FedEx Corp.

1,509

124,975

Airlines - 0.3%

Southwest Airlines Co.

5,500

83,765

Commercial Services & Supplies - 0.6%

Allied Waste Industries, Inc. (a)

13,330

179,155

Construction & Engineering - 0.2%

Foster Wheeler Ltd. (a)

1,479

73,492

Industrial Conglomerates - 4.4%

General Electric Co.

46,045

1,293,865

Tyco International Ltd.

1,112

47,683

 

1,341,548

Machinery - 0.7%

Eaton Corp.

1,212

88,694

Gardner Denver, Inc. (a)

2,629

118,673

 

207,367

Road & Rail - 0.5%

CSX Corp.

483

31,240

Norfolk Southern Corp.

1,268

93,236

Union Pacific Corp.

402

33,728

 

158,204

Trading Companies & Distributors - 0.1%

United Rentals, Inc.

1,958

31,700

TOTAL INDUSTRIALS

2,841,099

INFORMATION TECHNOLOGY - 3.2%

Computers & Peripherals - 0.8%

Hewlett-Packard Co.

2,690

126,215

 

Shares

Value

International Business Machines Corp.

911

$ 110,896

Seagate Technology

1,584

23,617

 

260,728

Electronic Equipment & Instruments - 0.6%

Jabil Circuit, Inc.

5,797

97,737

Tyco Electronics Ltd.

2,308

75,956

 

173,693

Internet Software & Services - 0.1%

IAC/InterActiveCorp (a)

1,388

23,041

IT Services - 0.2%

The Western Union Co.

2,815

77,750

Semiconductors & Semiconductor Equipment - 0.9%

Amkor Technology, Inc. (a)(d)

12,669

95,144

Integrated Device Technology, Inc. (a)

5,074

53,734

LSI Corp. (a)

6,762

44,967

National Semiconductor Corp.

3,623

77,641

 

271,486

Software - 0.6%

CA, Inc.

3,623

86,626

Symantec Corp. (a)

4,106

91,605

 

178,231

TOTAL INFORMATION TECHNOLOGY

984,929

MATERIALS - 3.9%

Chemicals - 2.4%

Celanese Corp. Class A

2,752

106,117

CF Industries Holdings, Inc.

574

87,478

Dow Chemical Co.

2,297

78,397

E.I. du Pont de Nemours & Co.

3,637

161,628

H.B. Fuller Co.

2,281

59,466

Lubrizol Corp.

2,821

149,485

Terra Industries, Inc.

1,556

78,189

 

720,760

Containers & Packaging - 0.4%

Greif, Inc. Class A

1,820

125,780

Metals & Mining - 1.0%

Freeport-McMoRan Copper & Gold, Inc. Class B

1,349

120,493

Nucor Corp.

1,026

53,865

Reliance Steel & Aluminum Co.

1,249

71,205

United States Steel Corp.

522

69,463

 

315,026

Paper & Forest Products - 0.1%

International Paper Co.

1,269

34,326

TOTAL MATERIALS

1,195,892

TELECOMMUNICATION SERVICES - 5.8%

Diversified Telecommunication Services - 5.4%

AT&T, Inc.

28,551

913,346

Common Stocks - continued

Shares

Value

TELECOMMUNICATION SERVICES - continued

Diversified Telecommunication Services - continued

CenturyTel, Inc.

3,684

$ 142,313

Verizon Communications, Inc.

17,157

602,554

 

1,658,213

Wireless Telecommunication Services - 0.4%

Sprint Nextel Corp.

13,285

115,845

TOTAL TELECOMMUNICATION SERVICES

1,774,058

UTILITIES - 6.1%

Electric Utilities - 3.0%

American Electric Power Co., Inc.

1,899

74,137

DPL, Inc.

1,744

43,286

Duke Energy Corp.

8,369

145,955

Edison International

4,406

202,324

Exelon Corp.

701

53,248

FirstEnergy Corp.

1,134

82,374

FPL Group, Inc.

1,865

112,012

Progress Energy, Inc.

1,268

55,386

Southern Co.

3,649

136,874

 

905,596

Gas Utilities - 0.3%

Energen Corp.

1,548

86,440

Multi-Utilities - 2.8%

Alliant Energy Corp.

2,930

102,404

Dominion Resources, Inc.

4,618

201,022

DTE Energy Co.

2,235

94,228

MDU Resources Group, Inc.

5,337

176,334

Public Service Enterprise Group, Inc.

3,438

140,167

Sempra Energy

2,543

147,291

 

861,446

TOTAL UTILITIES

1,853,482

TOTAL COMMON STOCKS

(Cost $33,183,609)

29,538,607

Investment Companies - 2.7%

Shares

Value

iShares Russell 1000 Value Index ETF (d)
(Cost $799,530)

11,616

$ 807,660

Money Market Funds - 4.3%

 

 

 

 

Dreyfus Cash Management, 2.66% (e)

69,804

69,804

Fidelity Securities Lending Cash Central Fund, 2.35% (b)(c)

1,234,094

1,234,094

TOTAL MONEY MARKET FUNDS

(Cost $1,303,898)

1,303,898

TOTAL INVESTMENT PORTFOLIO - 103.7%

(Cost $35,287,037)

31,650,165

NET OTHER ASSETS - (3.7)%

(1,115,471)

NET ASSETS - 100%

$ 30,534,694

Legend

(a) Non-income producing

(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

(c) Investment made with cash collateral received from securities on loan.

(d) Security or a portion of the security is on loan at period end.

(e) The rate quoted is the annualized seven-day yield at period end.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund

Income earned

Fidelity Securities Lending Cash Central Fund

$ 1,981

Other Information

The following is a summary of the inputs used, as of August 31, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities

31,650,165

31,650,165

-

-

Income Tax Information

At February 29, 2008, the fund had a capital loss carryforward of approximately $514,035 all of which will expire on February 29, 2016.

The fund intends to elect to defer to its fiscal year ending February 28, 2009 approximately $266,294 of losses recognized during the period November 1, 2007 to February 29, 2008.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Large Cap Value Enhanced Index Fund

Financial Statements

Statement of Assets and Liabilities

  

August 31, 2008 (Unaudited)

 

 

 

Assets

Investment in securities, at value (including securities loaned of $1,200,309) - See accompanying schedule:

Unaffiliated issuers (cost $34,052,943)

$ 30,416,071

 

Fidelity Central Funds (cost $1,234,094)

1,234,094

 

Total Investments (cost $35,287,037)

 

$ 31,650,165

Receivable for investments sold

206,034

Receivable for fund shares sold

52,684

Dividends receivable

76,086

Interest receivable

143

Distributions receivable from Fidelity Central Funds

1,183

Total assets

31,986,295

 

 

 

Liabilities

Payable for investments purchased

$ 206,128

Payable for fund shares redeemed

149

Accrued management fee

7,509

Other affiliated payables

3,721

Collateral on securities loaned, at value

1,234,094

Total liabilities

1,451,601

 

 

 

Net Assets

$ 30,534,694

Net Assets consist of:

 

Paid in capital

$ 35,690,559

Undistributed net investment income

278,643

Accumulated undistributed net realized gain (loss) on investments

(1,797,636)

Net unrealized appreciation (depreciation) on investments

(3,636,872)

Net Assets, for 3,742,615 shares outstanding

$ 30,534,694

Net Asset Value, offering price and redemption price per share ($30,534,694 ÷ 3,742,615 shares)

$ 8.16

Statement of Operations

 

Six months ended August 31, 2008 (Unaudited)

 

  

  

Investment Income

  

  

Dividends

 

$ 354,247

Interest

 

1,138

Income from Fidelity Central Funds

 

1,981

Total income

 

357,366

 

 

 

Expenses

Management fee

$ 38,591

Transfer agent fees

19,862

Independent trustees' compensation

1,135

Total expenses before reductions

59,588

Expense reductions

(12)

59,576

Net investment income (loss)

297,790

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

 

(969,865)

Change in net unrealized appreciation (depreciation) on investment securities

(637,237)

Net gain (loss)

(1,607,102)

Net increase (decrease) in net assets resulting from operations

$ (1,309,312)

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Changes in Net Assets

  

Six months ended August 31, 2008 (Unaudited)

For the period
April 17, 2007 (commencement of operations) to
February 29, 2008

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 297,790

$ 392,932

Net realized gain (loss)

(969,865)

(827,022)

Change in net unrealized appreciation (depreciation)

(637,237)

(2,999,635)

Net increase (decrease) in net assets resulting from operations

(1,309,312)

(3,433,725)

Distributions to shareholders from net investment income

(88,349)

(320,661)

Share transactions
Proceeds from sales of shares

12,972,025

39,722,635

Reinvestment of distributions

85,480

307,682

Cost of shares redeemed

(5,504,627)

(11,896,454)

Net increase (decrease) in net assets resulting from share transactions

7,552,878

28,133,863

Total increase (decrease) in net assets

6,155,217

24,379,477

 

 

 

Net Assets

Beginning of period

24,379,477

-

End of period (including undistributed net investment income of $278,643 and undistributed net investment income of $73,019, respectively)

$ 30,534,694

$ 24,379,477

Other Information

Shares

Sold

1,574,355

3,987,621

Issued in reinvestment of distributions

9,951

32,593

Redeemed

(648,873)

(1,213,032)

Net increase (decrease)

935,433

2,807,182

Financial Highlights

 

Six months ended August 31, 2008
Year ended February 29,
 
(Unaudited)
2008 G

Selected Per-Share Data

 

 

Net asset value, beginning of period

$ 8.68

$ 10.00

Income from Investment Operations

 

 

Net investment income (loss) D

  .10

.18

Net realized and unrealized gain (loss)

  (.59)

(1.37)

Total from investment operations

  (.49)

(1.19)

Distributions from net investment income

  (.03)

(.13)

Net asset value, end of period

$ 8.16

$ 8.68

Total Return B, C

  (5.66)%

(12.00)%

Ratios to Average Net Assets E, H

 

 

Expenses before reductions

  .45%A

.45%A

Expenses net of fee waivers, if any

  .45%A

.45%A

Expenses net of all reductions

  .45%A

.45%A

Net investment income (loss)

  2.25%A

2.12%A

Supplemental Data

 

 

Net assets, end of period (000 omitted)

$ 30,535

$ 24,379

Portfolio turnover rate F

  71%A

65%A

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Calculated based on average shares outstanding during the period.

E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G For the period April 19, 2007 (commencement of operations) to February 29, 2008.

H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Large Cap Core Enhanced Index Fund

Investment Changes (Unaudited)

Top Ten Stocks as of August 31, 2008

 

% of fund's
net assets

% of fund's net assets
6 months ago

Exxon Mobil Corp.

3.9

4.4

General Electric Co.

2.3

2.8

Johnson & Johnson

2.1

1.5

Microsoft Corp.

2.1

2.2

Chevron Corp.

2.0

2.1

Procter & Gamble Co.

1.8

1.8

International Business Machines Corp.

1.8

1.9

AT&T, Inc.

1.6

1.8

Pfizer, Inc.

1.5

1.5

Hewlett-Packard Co.

1.5

1.5

 

20.6

 

Market Sectors as of August 31, 2008

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

16.4

15.8

Financials

13.5

15.4

Energy

13.5

13.5

Health Care

12.6

12.6

Industrials

11.2

11.6

Consumer Staples

10.4

11.8

Consumer Discretionary

8.3

7.6

Telecommunication Services

4.0

3.7

Materials

3.5

3.8

Utilities

3.1

2.5

Semiannual Report

Fidelity Large Cap Core Enhanced Index Fund

Investments August 31, 2008 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 96.5%

Shares

Value

CONSUMER DISCRETIONARY - 8.3%

Automobiles - 0.0%

General Motors Corp. (d)

52,000

$ 520,000

Diversified Consumer Services - 0.6%

Apollo Group, Inc. Class A (non-vtg.) (a)

48,138

3,065,428

Weight Watchers International, Inc.

84,793

3,357,803

 

6,423,231

Hotels, Restaurants & Leisure - 1.5%

Darden Restaurants, Inc.

121,053

3,545,642

McDonald's Corp.

195,211

12,112,843

 

15,658,485

Internet & Catalog Retail - 0.1%

Amazon.com, Inc. (a)

11,086

895,860

Media - 3.0%

CBS Corp. Class B

235,851

3,816,069

Comcast Corp. Class A

142,736

3,023,148

News Corp. Class A

186,821

2,645,385

Omnicom Group, Inc.

112,666

4,775,912

The Walt Disney Co.

303,652

9,823,142

Time Warner, Inc.

322,406

5,277,786

Viacom, Inc. Class B (non-vtg.) (a)

55,114

1,624,761

 

30,986,203

Multiline Retail - 0.8%

Big Lots, Inc. (a)(d)

172,613

5,104,166

Family Dollar Stores, Inc.

64,757

1,613,744

Target Corp.

21,026

1,114,799

 

7,832,709

Specialty Retail - 2.1%

AutoZone, Inc. (a)

41,525

5,698,476

Gap, Inc.

238,919

4,646,975

Home Depot, Inc.

81,598

2,212,938

Lowe's Companies, Inc.

35,128

865,554

RadioShack Corp.

94,590

1,798,156

TJX Companies, Inc.

163,341

5,919,478

 

21,141,577

Textiles, Apparel & Luxury Goods - 0.2%

NIKE, Inc. Class B

32,479

1,968,552

TOTAL CONSUMER DISCRETIONARY

85,426,617

CONSUMER STAPLES - 10.4%

Beverages - 2.4%

Anheuser-Busch Companies, Inc.

60,057

4,075,468

PepsiCo, Inc.

135,369

9,270,069

The Coca-Cola Co.

208,150

10,838,371

 

24,183,908

Food & Staples Retailing - 3.1%

BJ's Wholesale Club, Inc. (a)

107,089

4,072,595

CVS Caremark Corp.

128,707

4,710,676

Kroger Co.

208,633

5,762,443

Safeway, Inc.

50,721

1,335,991

 

Shares

Value

SUPERVALU, Inc.

26,170

$ 606,882

Sysco Corp.

50,000

1,591,500

Wal-Mart Stores, Inc.

216,485

12,787,769

Walgreen Co.

30,255

1,102,190

 

31,970,046

Food Products - 0.9%

General Mills, Inc.

108,413

7,174,772

Kraft Foods, Inc. Class A

63,446

1,999,183

 

9,173,955

Household Products - 2.1%

Colgate-Palmolive Co.

42,860

3,258,646

Procter & Gamble Co.

265,935

18,554,285

 

21,812,931

Tobacco - 1.9%

Altria Group, Inc.

253,365

5,328,266

Lorillard, Inc. (a)

15,000

1,083,600

Philip Morris International, Inc.

252,932

13,582,448

 

19,994,314

TOTAL CONSUMER STAPLES

107,135,154

ENERGY - 13.5%

Energy Equipment & Services - 3.2%

ENSCO International, Inc.

65,065

4,410,106

Halliburton Co.

160,486

7,051,755

National Oilwell Varco, Inc. (a)

84,853

6,256,212

Schlumberger Ltd. (NY Shares)

100,571

9,475,800

Tidewater, Inc.

29,007

1,759,855

Transocean, Inc. (a)

29,594

3,764,357

 

32,718,085

Oil, Gas & Consumable Fuels - 10.3%

Anadarko Petroleum Corp.

47,074

2,905,878

Apache Corp.

18,185

2,080,000

Chevron Corp.

234,448

20,237,551

ConocoPhillips

149,080

12,300,591

Devon Energy Corp.

17,680

1,804,244

Exxon Mobil Corp.

504,077

40,331,196

Hess Corp.

24,827

2,599,635

Marathon Oil Corp.

60,555

2,729,214

Noble Energy, Inc.

51,746

3,711,741

Occidental Petroleum Corp.

104,682

8,307,564

Spectra Energy Corp.

203,053

5,372,782

Stone Energy Corp. (a)

28,955

1,380,285

W&T Offshore, Inc.

49,809

1,751,284

 

105,511,965

TOTAL ENERGY

138,230,050

FINANCIALS - 13.5%

Capital Markets - 3.2%

Bank of New York Mellon Corp.

110,205

3,814,195

Charles Schwab Corp.

41,000

983,590

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Capital Markets - continued

Goldman Sachs Group, Inc.

59,611

$ 9,774,416

Invesco Ltd.

39,306

1,007,413

Knight Capital Group, Inc. Class A (a)

146,482

2,525,350

Lehman Brothers Holdings, Inc.

65,000

1,045,850

Merrill Lynch & Co., Inc.

73,379

2,080,295

Morgan Stanley (d)

84,565

3,452,789

Northern Trust Corp.

49,000

3,939,110

State Street Corp.

31,692

2,144,598

TD Ameritrade Holding Corp. (a)

132,411

2,705,157

 

33,472,763

Commercial Banks - 1.9%

BB&T Corp. (d)

62,229

1,866,870

Fifth Third Bancorp (d)

45,000

710,100

PNC Financial Services Group, Inc.

25,746

1,852,425

Regions Financial Corp.

40,112

371,838

U.S. Bancorp, Delaware

128,930

4,107,710

Wachovia Corp.

134,493

2,137,094

Wells Fargo & Co.

286,335

8,667,360

 

19,713,397

Consumer Finance - 0.7%

American Express Co.

93,291

3,701,787

Capital One Financial Corp. (d)

40,943

1,807,224

Discover Financial Services

111,677

1,837,087

 

7,346,098

Diversified Financial Services - 3.2%

Bank of America Corp.

405,749

12,635,024

Citigroup, Inc.

427,210

8,112,718

JPMorgan Chase & Co.

307,533

11,836,945

 

32,584,687

Insurance - 2.9%

ACE Ltd.

62,270

3,276,025

AFLAC, Inc.

42,487

2,409,013

American International Group, Inc.

237,589

5,105,788

Arch Capital Group Ltd. (a)

36,364

2,536,753

Aspen Insurance Holdings Ltd.

152,393

4,129,850

Hartford Financial Services Group, Inc.

26,022

1,641,468

Loews Corp.

33,104

1,437,707

MetLife, Inc.

64,102

3,474,328

Prudential Financial, Inc.

17,398

1,282,407

The Chubb Corp.

30,047

1,442,556

The Travelers Companies, Inc.

53,000

2,340,480

W.R. Berkley Corp.

16,527

389,376

 

29,465,751

Real Estate Investment Trusts - 1.5%

Boston Properties, Inc.

26,897

2,756,136

Hospitality Properties Trust (SBI)

112,138

2,543,290

National Retail Properties, Inc. (d)

82,996

1,883,179

ProLogis Trust

53,131

2,287,821

 

Shares

Value

SL Green Realty Corp.

16,039

$ 1,379,354

Vornado Realty Trust

45,206

4,496,189

 

15,345,969

Thrifts & Mortgage Finance - 0.1%

Fannie Mae

95,000

649,800

Freddie Mac

12,784

57,656

 

707,456

TOTAL FINANCIALS

138,636,121

HEALTH CARE - 12.6%

Biotechnology - 0.8%

Amgen, Inc. (a)

69,354

4,358,899

Gilead Sciences, Inc. (a)

65,080

3,428,414

 

7,787,313

Health Care Equipment & Supplies - 1.8%

Baxter International, Inc.

112,453

7,619,815

Boston Scientific Corp. (a)

118,948

1,493,987

Covidien Ltd.

45,000

2,433,150

Kinetic Concepts, Inc. (a)(d)

31,099

1,093,441

Medtronic, Inc.

98,930

5,401,578

 

18,041,971

Health Care Providers & Services - 1.2%

Aetna, Inc.

31,546

1,360,894

Express Scripts, Inc. (a)

88,198

6,474,615

UnitedHealth Group, Inc.

82,145

2,501,315

WellPoint, Inc. (a)

46,809

2,471,047

 

12,807,871

Health Care Technology - 0.4%

IMS Health, Inc.

207,491

4,610,450

Life Sciences Tools & Services - 1.4%

Applied Biosystems, Inc.

150,677

5,498,204

Invitrogen Corp. (a)

128,673

5,463,456

Thermo Fisher Scientific, Inc. (a)

48,505

2,937,463

 

13,899,123

Pharmaceuticals - 7.0%

Abbott Laboratories

114,841

6,595,319

Bristol-Myers Squibb Co.

150,858

3,219,310

Eli Lilly & Co.

161,329

7,525,998

Johnson & Johnson

305,526

21,518,196

King Pharmaceuticals, Inc. (a)

170,043

1,945,292

Merck & Co., Inc.

219,548

7,831,277

Pfizer, Inc.

817,678

15,625,827

Schering-Plough Corp.

147,419

2,859,929

Warner Chilcott Ltd. (a)

74,279

1,188,464

Wyeth

75,375

3,262,230

 

71,571,842

TOTAL HEALTH CARE

128,718,570

Common Stocks - continued

Shares

Value

INDUSTRIALS - 11.2%

Aerospace & Defense - 3.4%

General Dynamics Corp.

14,779

$ 1,364,102

Honeywell International, Inc.

159,784

8,016,363

Lockheed Martin Corp.

53,865

6,272,041

Northrop Grumman Corp.

15,376

1,058,638

Raytheon Co.

80,765

4,845,092

The Boeing Co.

116,954

7,667,504

United Technologies Corp.

90,193

5,915,759

 

35,139,499

Air Freight & Logistics - 0.8%

FedEx Corp.

28,000

2,318,960

United Parcel Service, Inc. Class B

90,077

5,775,737

 

8,094,697

Commercial Services & Supplies - 0.7%

Allied Waste Industries, Inc. (a)

402,612

5,411,105

Deluxe Corp.

86,524

1,428,511

 

6,839,616

Construction & Engineering - 0.2%

Foster Wheeler Ltd. (a)

49,655

2,467,357

Electrical Equipment - 0.8%

Acuity Brands, Inc.

45,762

1,991,105

Emerson Electric Co.

125,215

5,860,062

 

7,851,167

Industrial Conglomerates - 3.0%

3M Co.

73,571

5,267,684

General Electric Co.

849,531

23,871,821

Tyco International Ltd.

40,978

1,757,137

 

30,896,642

Machinery - 1.1%

Caterpillar, Inc.

83,717

5,921,303

Deere & Co.

13,764

971,325

Eaton Corp.

34,702

2,539,492

Gardner Denver, Inc. (a)

36,888

1,665,124

 

11,097,244

Road & Rail - 1.2%

CSX Corp.

61,812

3,998,000

Norfolk Southern Corp.

61,718

4,538,125

Union Pacific Corp.

44,246

3,712,239

 

12,248,364

TOTAL INDUSTRIALS

114,634,586

INFORMATION TECHNOLOGY - 16.4%

Communications Equipment - 2.2%

Cisco Systems, Inc. (a)

577,419

13,886,927

Corning, Inc.

143,819

2,954,042

QUALCOMM, Inc.

102,272

5,384,621

 

22,225,590

 

Shares

Value

Computers & Peripherals - 5.3%

Apple, Inc. (a)

79,533

$ 13,483,229

Dell, Inc. (a)

178,373

3,876,045

EMC Corp. (a)

83,301

1,272,839

Hewlett-Packard Co.

323,654

15,185,846

International Business Machines Corp.

151,691

18,465,345

Lexmark International, Inc. Class A (a)

68,352

2,458,621

 

54,741,925

Electronic Equipment & Instruments - 0.4%

Mettler-Toledo International, Inc. (a)

23,943

2,518,804

Tyco Electronics Ltd.

47,082

1,549,469

 

4,068,273

Internet Software & Services - 1.3%

eBay, Inc. (a)

207,725

5,178,584

Google, Inc. Class A (sub. vtg.) (a)

18,680

8,654,257

 

13,832,841

IT Services - 0.8%

MasterCard, Inc. Class A

7,209

1,748,543

The Western Union Co.

222,806

6,153,902

 

7,902,445

Office Electronics - 0.2%

Xerox Corp.

110,705

1,542,121

Semiconductors & Semiconductor Equipment - 1.7%

Amkor Technology, Inc. (a)(d)

398,728

2,994,447

Intel Corp.

394,112

9,013,341

National Semiconductor Corp.

132,549

2,840,525

NVIDIA Corp. (a)

40,932

517,380

Texas Instruments, Inc.

99,645

2,442,299

 

17,807,992

Software - 4.5%

Adobe Systems, Inc. (a)

132,515

5,675,617

BMC Software, Inc. (a)

166,752

5,429,445

Microsoft Corp.

780,004

21,286,309

Oracle Corp. (a)

524,792

11,508,689

Symantec Corp. (a)

77,584

1,730,899

 

45,630,959

TOTAL INFORMATION TECHNOLOGY

167,752,146

MATERIALS - 3.5%

Chemicals - 1.9%

Celanese Corp. Class A

86,580

3,338,525

CF Industries Holdings, Inc.

16,472

2,510,333

Lubrizol Corp.

49,888

2,643,565

Monsanto Co.

73,326

8,377,496

Terra Industries, Inc.

51,135

2,569,534

 

19,439,453

Metals & Mining - 1.6%

AK Steel Holding Corp.

46,497

2,446,207

Freeport-McMoRan Copper & Gold, Inc. Class B

57,468

5,133,042

Common Stocks - continued

Shares

Value

MATERIALS - continued

Metals & Mining - continued

Nucor Corp.

86,261

$ 4,528,703

Southern Copper Corp. (d)

24,357

621,834

United States Steel Corp.

27,449

3,652,638

 

16,382,424

TOTAL MATERIALS

35,821,877

TELECOMMUNICATION SERVICES - 4.0%

Diversified Telecommunication Services - 3.8%

AT&T, Inc.

513,273

16,419,603

CenturyTel, Inc.

132,790

5,129,678

Embarq Corp.

15,434

727,867

Qwest Communications International, Inc.

290,388

1,097,667

Verizon Communications, Inc.

335,489

11,782,374

Windstream Corp.

287,401

3,569,520

 

38,726,709

Wireless Telecommunication Services - 0.2%

Sprint Nextel Corp.

253,422

2,209,840

TOTAL TELECOMMUNICATION SERVICES

40,936,549

UTILITIES - 3.1%

Electric Utilities - 1.6%

American Electric Power Co., Inc.

32,694

1,276,374

Edison International

101,912

4,679,799

Entergy Corp.

16,000

1,654,240

Exelon Corp.

57,912

4,398,996

FPL Group, Inc.

33,863

2,033,812

Southern Co.

68,634

2,574,461

 

16,617,682

Independent Power Producers & Energy Traders - 0.3%

Mirant Corp. (a)

94,691

2,800,960

Multi-Utilities - 1.2%

Dominion Resources, Inc.

80,843

3,519,096

DTE Energy Co.

62,069

2,616,829

Public Service Enterprise Group, Inc.

63,226

2,577,724

Sempra Energy

62,506

3,620,348

 

12,333,997

TOTAL UTILITIES

31,752,639

TOTAL COMMON STOCKS

(Cost $1,076,217,118)

989,044,309

U.S. Treasury Obligations - 0.2%

 

Principal Amount

 

U.S. Treasury Bills, yield at date of purchase 1.78% 9/25/08 (e)
(Cost $2,496,927)

$ 2,500,000

2,497,485

Money Market Funds - 4.8%

Shares

Value

Dreyfus Cash Management, 2.66% (f)

32,102,705

$ 32,102,705

Fidelity Securities Lending Cash Central Fund, 2.35% (b)(c)

17,561,115

17,561,115

TOTAL MONEY MARKET FUNDS

(Cost $49,663,820)

49,663,820

TOTAL INVESTMENT PORTFOLIO - 101.5%

(Cost $1,128,377,865)

1,041,205,614

NET OTHER ASSETS - (1.5)%

(15,856,081)

NET ASSETS - 100%

$ 1,025,349,533

Futures Contracts

 

Expiration Date

Underlying Face Amount at Value

Unrealized Appreciation/
(Depreciation)

Purchased

Equity Index Contracts

173 CME E-mini S&P 500 Index Contracts

Sept. 2008

$ 11,094,490

$ (253,820)

78 CME S&P 500 Index Contracts

Sept. 2008

25,010,700

260,449

TOTAL EQUITY INDEX CONTRACTS

$ 36,105,190

$ 6,629

 

The face value of futures purchased as a percentage of net assets - 3.5%

Legend

(a) Non-income producing

(b) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

(c) Investment made with cash collateral received from securities on loan.

(d) Security or a portion of the security is on loan at period end.

(e) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $2,497,485.

(f) The rate quoted is the annualized seven-day yield at period end.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund

Income earned

Fidelity Securities Lending Cash Central Fund

$ 26,424

Other Information

The following is a summary of the inputs used, as of August 31, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities

1,041,205,614

1,038,708,129

2,497,485

-

Other Financial Instruments*

6,629

6,629

-

-

*Other financial instruments include Futures Contracts.

Income Tax Information

At February 29, 2008, the fund had a capital loss carryforward of approximately $391,157 all of which will expire on February 29, 2016.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Large Cap Core Enhanced Index Fund

Financial Statements

Statement of Assets and Liabilities

  

August 31, 2008 (Unaudited)

 

 

 

Assets

Investment in securities, at value (including securities loaned of $16,998,841) - See accompanying schedule:

Unaffiliated issuers (cost $1,110,816,750)

$ 1,023,644,499

 

Fidelity Central Funds (cost $17,561,115)

17,561,115

 

Total Investments (cost $1,128,377,865)

 

$ 1,041,205,614

Receivable for fund shares sold

376,973

Dividends receivable

2,219,882

Distributions receivable from Fidelity Central Funds

18,720

Total assets

1,043,821,189

 

 

 

Liabilities

Payable for fund shares redeemed

$ 94,134

Accrued management fee

254,995

Payable for daily variation on futures contracts

433,951

Other affiliated payables

127,461

Collateral on securities loaned, at value

17,561,115

Total liabilities

18,471,656

 

 

 

Net Assets

$ 1,025,349,533

Net Assets consist of:

 

Paid in capital

$ 1,149,554,777

Undistributed net investment income

7,017,466

Accumulated undistributed net realized gain (loss) on investments

(44,057,088)

Net unrealized appreciation (depreciation) on investments

(87,165,622)

Net Assets, for 114,330,200 shares outstanding

$ 1,025,349,533

Net Asset Value, offering price and redemption price per share ($1,025,349,533 ÷ 114,330,200 shares)

$ 8.97

Statement of Operations

 

Six months ended August 31, 2008 (Unaudited)

 

  

  

Investment Income

  

  

Dividends

 

$ 9,791,344

Interest

 

292,957

Income from Fidelity Central Funds

 

26,424

Total income

 

10,110,725

 

 

 

Expenses

Management fee

$ 1,393,195

Transfer agent fees

717,588

Independent trustees' compensation

41,981

Total expenses before reductions

2,152,764

Expense reductions

(638)

2,152,126

Net investment income (loss)

7,958,599

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

(38,726,932)

Futures contracts

(2,819,184)

Total net realized gain (loss)

 

(41,546,116)

Change in net unrealized appreciation (depreciation) on:

Investment securities

5,667,905

Futures contracts

512,409

Total change in net unrealized appreciation (depreciation)

 

6,180,314

Net gain (loss)

(35,365,802)

Net increase (decrease) in net assets resulting from operations

$ (27,407,203)

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Large Cap Core Enhanced Index Fund
Financial Statements - continued

Statement of Changes in Net Assets

  

Six months ended August 31, 2008 (Unaudited)

For the period
April 19, 2007 (commencement of operations) to
February 29, 2008

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 7,958,599

$ 5,239,172

Net realized gain (loss)

(41,546,116)

(2,510,972)

Change in net unrealized appreciation (depreciation)

6,180,314

(93,345,936)

Net increase (decrease) in net assets resulting from operations

(27,407,203)

(90,617,736)

Distributions to shareholders from net investment income

(2,834,017)

(3,331,983)

Share transactions
Proceeds from sales of shares

251,740,067

988,996,519

Reinvestment of distributions

2,829,883

3,320,538

Cost of shares redeemed

(33,501,981)

(63,844,554)

Net increase (decrease) in net assets resulting from share transactions

221,067,969

928,472,503

Total increase (decrease) in net assets

190,826,749

834,522,784

 

 

 

Net Assets

Beginning of period

834,522,784

-

End of period (including undistributed net investment income of $7,017,466 and undistributed net investment income of $1,907,189, respectively)

$ 1,025,349,533

$ 834,522,784

Other Information

Shares

Sold

26,883,793

96,918,399

Issued in reinvestment of distributions

308,266

326,503

Redeemed

(3,614,425)

(6,492,336)

Net increase (decrease)

23,577,634

90,752,566

Financial Highlights

 

Six months ended August 31, 2008
Year ended
February 29,
 
(Unaudited)
2008 G

Selected Per-Share Data

 

 

Net asset value, beginning of period

$ 9.20

$ 10.00

Income from Investment Operations

 

 

Net investment income (loss) D

  .08

.15

Net realized and unrealized gain (loss)

  (.28)

(.90)

Total from investment operations

  (.20)

(.75)

Distributions from net investment income

  (.03)

(.05)

Net asset value, end of period

$ 8.97

$ 9.20

Total Return B, C

  (2.18)%

(7.59)%

Ratios to Average Net Assets E, H

 

 

Expenses before reductions

  .45% A

.45%A

Expenses net of fee waivers, if any

  .45%A

.45%A

Expenses net of all reductions

  .45%A

.45%A

Net investment income (loss)

  1.66%A

1.83%A

Supplemental Data

 

 

Net assets, end of period (000 omitted)

$ 1,025,350

$ 834,523

Portfolio turnover rate F

  39%A

5%A

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Calculated based on average shares outstanding during the period.

E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G For the period April 19, 2007 (commencement of operations) to February 29, 2008.

H Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Mid Cap Enhanced Index Fund

Investment Changes (Unaudited)

Top Ten Stocks as of August 31, 2008

 

% of fund's
net assets

% of fund's net assets
6 months ago

iShares Russell Midcap Index ETF

2.5

2.2

Northern Trust Corp.

0.7

0.1

H.J. Heinz Co.

0.7

0.7

St. Jude Medical, Inc.

0.7

0.7

Yum! Brands, Inc.

0.7

0.7

TJX Companies, Inc.

0.7

0.7

Spectra Energy Corp.

0.7

0.4

Express Scripts, Inc.

0.7

0.6

American Tower Corp. Class A

0.6

0.7

L-3 Communications Holdings, Inc.

0.6

0.7

 

8.6

 

Market Sectors as of August 31, 2008

 

% of fund's
net assets

% of fund's net assets
6 months ago

Financials

16.3

14.7

Consumer Discretionary

13.8

13.0

Information Technology

13.3

13.7

Industrials

11.4

14.4

Health Care

9.3

9.7

Energy

8.6

10.8

Utilities

7.5

6.8

Consumer Staples

5.6

6.8

Materials

4.9

5.4

Telecommunication Services

2.7

2.3

Semiannual Report

Fidelity Mid Cap Enhanced Index Fund

Investments August 31, 2008 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 93.4%

Shares

Value

CONSUMER DISCRETIONARY - 13.8%

Auto Components - 0.3%

Autoliv, Inc.

750

$ 28,793

Automobiles - 0.3%

Ford Motor Co. (a)

7,079

31,572

Harley-Davidson, Inc.

216

8,592

 

40,164

Diversified Consumer Services - 2.0%

Apollo Group, Inc. Class A (non-vtg.) (a)

985

62,725

DeVry, Inc.

545

28,111

H&R Block, Inc.

1,050

26,817

ITT Educational Services, Inc. (a)

470

41,788

Service Corp. International

3,315

33,846

Sotheby's Class A (ltd. vtg.)

420

11,315

Weight Watchers International, Inc.

560

22,176

 

226,778

Hotels, Restaurants & Leisure - 1.3%

Interval Leisure Group, Inc. (a)

307

3,988

Starbucks Corp. (a)

550

8,558

Starwood Hotels & Resorts Worldwide, Inc.

990

35,888

Tim Hortons, Inc.

652

20,512

Yum! Brands, Inc.

2,205

78,674

 

147,620

Household Durables - 0.7%

D.R. Horton, Inc.

2,000

24,920

Fortune Brands, Inc.

12

706

Jarden Corp. (a)

1,300

33,371

NVR, Inc. (a)

40

23,909

Tempur-Pedic International, Inc.

309

3,495

 

86,401

Internet & Catalog Retail - 0.4%

Expedia, Inc. (a)

1,920

33,907

HSN, Inc. (a)

307

4,498

Liberty Media Corp. - Interactive Series A (a)

400

5,436

Ticketmaster (a)

307

6,579

 

50,420

Leisure Equipment & Products - 0.4%

Hasbro, Inc.

1,200

44,880

Polaris Industries, Inc.

150

6,764

 

51,644

Media - 2.6%

Cablevision Systems Corp. - NY Group Class A

600

19,362

CBS Corp. Class B

500

8,090

DISH Network Corp. Class A (a)

1,535

43,302

Interactive Data Corp.

820

24,682

John Wiley & Sons, Inc. Class A

660

31,403

Liberty Global, Inc. Class A (a)

980

34,476

Liberty Media Corp.:

Capital Series A (a)

45

731

Entertainment Class A (a)

1,315

36,544

 

Shares

Value

McGraw-Hill Companies, Inc.

875

$ 37,485

Meredith Corp.

350

9,933

Scholastic Corp.

260

6,786

Scripps Networks Interactive, Inc. Class A

745

30,947

Sirius XM Radio, Inc. (a)

12,500

16,625

 

300,366

Multiline Retail - 1.0%

Big Lots, Inc. (a)

1,350

39,920

JCPenney Co., Inc.

600

23,382

Kohl's Corp. (a)

190

9,342

Macy's, Inc.

2,238

46,595

 

119,239

Specialty Retail - 4.2%

Abercrombie & Fitch Co. Class A

301

15,787

Aeropostale, Inc. (a)

1,020

35,557

AutoZone, Inc. (a)

420

57,637

Barnes & Noble, Inc.

660

16,322

Bed Bath & Beyond, Inc. (a)

165

5,059

Gamestop Corp. Class A (a)

1,175

51,547

Gap, Inc.

3,270

63,602

RadioShack Corp.

1,600

30,416

Ross Stores, Inc.

1,215

48,855

Sherwin-Williams Co.

655

38,350

Tiffany & Co., Inc.

965

42,624

TJX Companies, Inc.

2,150

77,916

 

483,672

Textiles, Apparel & Luxury Goods - 0.6%

Coach, Inc. (a)

690

20,003

Deckers Outdoor Corp. (a)

195

22,170

Hanesbrands, Inc. (a)

585

13,946

VF Corp.

220

17,435

 

73,554

TOTAL CONSUMER DISCRETIONARY

1,608,651

CONSUMER STAPLES - 5.6%

Beverages - 0.9%

Brown-Forman Corp. Class B (non-vtg.)

570

41,046

Dr Pepper Snapple Group, Inc. (a)

1,870

46,208

Pepsi Bottling Group, Inc.

650

19,227

 

106,481

Food & Staples Retailing - 1.2%

BJ's Wholesale Club, Inc. (a)

705

26,811

Casey's General Stores, Inc.

1,150

33,350

Longs Drug Stores Corp.

630

45,140

SUPERVALU, Inc.

1,505

34,901

 

140,202

Food Products - 1.7%

Bunge Ltd.

37

3,306

ConAgra Foods, Inc.

100

2,127

Darling International, Inc. (a)

1,380

18,947

Flowers Foods, Inc.

1,055

27,894

Common Stocks - continued

Shares

Value

CONSUMER STAPLES - continued

Food Products - continued

H.J. Heinz Co.

1,635

$ 82,273

Hormel Foods Corp.

730

26,032

McCormick & Co., Inc. (non-vtg.)

665

26,899

Sara Lee Corp.

126

1,701

Wm. Wrigley Jr. Co.

151

12,001

 

201,180

Household Products - 0.5%

Church & Dwight Co., Inc.

775

48,438

Energizer Holdings, Inc. (a)

81

6,880

 

55,318

Personal Products - 0.7%

Avon Products, Inc.

600

25,698

Estee Lauder Companies, Inc. Class A

238

11,845

Herbalife Ltd.

770

36,267

 

73,810

Tobacco - 0.6%

Lorillard, Inc. (a)

150

10,836

Reynolds American, Inc.

373

19,762

UST, Inc.

730

39,121

 

69,719

TOTAL CONSUMER STAPLES

646,710

ENERGY - 8.6%

Energy Equipment & Services - 3.4%

Cameron International Corp. (a)

935

43,562

Dresser-Rand Group, Inc. (a)

715

29,000

ENSCO International, Inc.

835

56,596

FMC Technologies, Inc. (a)

795

42,580

Nabors Industries Ltd. (a)

245

8,722

National Oilwell Varco, Inc. (a)

570

42,026

Noble Corp.

1,140

57,331

Patterson-UTI Energy, Inc.

1,100

31,262

Pride International, Inc. (a)

800

30,728

Smith International, Inc.

594

41,402

T-3 Energy Services, Inc. (a)

250

13,958

 

397,167

Oil, Gas & Consumable Fuels - 5.2%

Arch Coal, Inc.

120

6,509

Chesapeake Energy Corp.

446

21,586

Cimarex Energy Co.

480

26,659

CONSOL Energy, Inc.

505

34,194

Continental Resources, Inc. (a)

480

24,082

El Paso Corp.

2,480

41,565

Frontline Ltd. (NY Shares)

590

35,642

Hess Corp.

250

26,178

Holly Corp.

370

11,840

Massey Energy Co.

545

35,948

Murphy Oil Corp.

595

46,725

Noble Energy, Inc.

800

57,384

 

Shares

Value

Peabody Energy Corp.

159

$ 10,009

Southwestern Energy Co. (a)

500

19,185

Spectra Energy Corp.

2,930

77,528

Stone Energy Corp. (a)

460

21,928

Sunoco, Inc.

410

18,196

W&T Offshore, Inc.

595

20,920

Walter Industries, Inc.

495

46,431

Williams Companies, Inc.

760

23,476

 

605,985

TOTAL ENERGY

1,003,152

FINANCIALS - 16.3%

Capital Markets - 2.5%

American Capital Ltd.

1,000

21,740

Ameriprise Financial, Inc.

695

31,240

Knight Capital Group, Inc. Class A (a)

1,155

19,912

Northern Trust Corp.

1,040

83,606

optionsXpress Holdings, Inc.

510

11,766

Raymond James Financial, Inc.

845

26,051

T. Rowe Price Group, Inc.

1,000

59,360

TD Ameritrade Holding Corp. (a)

2,040

41,677

 

295,352

Commercial Banks - 2.3%

Banco Latin Americano de Exporaciones SA (BLADEX) Series E

2,235

40,454

BancorpSouth, Inc.

645

14,848

Bank of Hawaii Corp.

650

34,372

Comerica, Inc.

980

27,528

Fifth Third Bancorp

2,500

39,450

First Horizon National Corp.

500

5,615

Fulton Financial Corp.

3,310

35,285

KeyCorp

561

6,738

M&T Bank Corp.

640

45,658

Zions Bancorp

600

16,104

 

266,052

Consumer Finance - 0.2%

SLM Corp. (a)

1,400

23,114

Diversified Financial Services - 0.7%

CIT Group, Inc.

246

2,536

Interactive Brokers Group, Inc. (a)

1,005

27,437

IntercontinentalExchange, Inc. (a)

235

20,687

The NASDAQ Stock Market, Inc. (a)

955

31,219

 

81,879

Insurance - 4.6%

Allied World Assurance Co. Holdings Ltd.

895

34,565

American Financial Group, Inc.

1,205

34,379

Aon Corp.

522

24,790

Arch Capital Group Ltd. (a)

625

43,600

Aspen Insurance Holdings Ltd.

900

24,390

Assurant, Inc.

600

35,058

Axis Capital Holdings Ltd.

1,075

35,937

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Insurance - continued

Genworth Financial, Inc. Class A (non-vtg.)

233

$ 3,740

Marsh & McLennan Companies, Inc.

365

11,654

MBIA, Inc.

2,500

40,550

PartnerRe Ltd.

500

34,455

Principal Financial Group, Inc.

153

7,006

Progressive Corp.

1,400

25,858

RenaissanceRe Holdings Ltd.

480

24,341

Torchmark Corp.

645

38,532

Transatlantic Holdings, Inc.

480

28,848

Unum Group

2,035

51,709

W.R. Berkley Corp.

1,145

26,976

XL Capital Ltd. Class A

500

10,050

 

536,438

Real Estate Investment Trusts - 5.1%

AMB Property Corp. (SBI)

580

26,326

Annaly Capital Management, Inc.

3,135

46,900

Boston Properties, Inc.

610

62,507

Duke Realty LP

980

24,529

Equity Residential (SBI)

300

12,660

Hospitality Properties Trust (SBI)

1,335

30,278

Host Hotels & Resorts, Inc.

2,030

29,029

Kimco Realty Corp.

291

10,808

Liberty Property Trust (SBI)

990

37,382

Mid-America Apartment Communities, Inc.

410

20,566

National Retail Properties, Inc.

900

20,421

Nationwide Health Properties, Inc.

715

24,610

NorthStar Realty Finance Corp.

3,815

27,277

ProLogis Trust

1,180

50,811

Public Storage

250

22,080

Regency Centers Corp.

425

26,337

SL Green Realty Corp.

400

34,400

The Macerich Co.

405

25,082

Vornado Realty Trust

600

59,676

 

591,679

Real Estate Management & Development - 0.2%

Jones Lang LaSalle, Inc.

500

24,900

Thrifts & Mortgage Finance - 0.7%

Astoria Financial Corp.

1,500

32,775

Hudson City Bancorp, Inc.

1,400

25,816

MGIC Investment Corp.

500

4,205

New York Community Bancorp, Inc.

1,000

16,490

Tree.com, Inc. (a)

51

388

 

79,674

TOTAL FINANCIALS

1,899,088

 

Shares

Value

HEALTH CARE - 9.3%

Biotechnology - 0.8%

Biogen Idec, Inc. (a)

460

$ 23,428

Cubist Pharmaceuticals, Inc. (a)

685

15,091

Martek Biosciences (a)

615

20,547

OSI Pharmaceuticals, Inc. (a)

655

33,078

 

92,144

Health Care Equipment & Supplies - 2.0%

C.R. Bard, Inc.

390

36,446

DENTSPLY International, Inc.

1,005

39,386

Edwards Lifesciences Corp. (a)

670

39,671

Kinetic Concepts, Inc. (a)

695

24,436

Masimo Corp.

379

15,149

St. Jude Medical, Inc. (a)

1,720

78,828

 

233,916

Health Care Providers & Services - 3.0%

AMERIGROUP Corp. (a)

775

20,057

AmerisourceBergen Corp.

700

28,707

CIGNA Corp.

1,390

58,213

Express Scripts, Inc. (a)

1,050

77,081

Humana, Inc. (a)

560

25,984

Laboratory Corp. of America Holdings (a)

590

43,159

Lincare Holdings, Inc. (a)

850

28,050

Owens & Minor, Inc.

570

26,288

Quest Diagnostics, Inc.

720

38,916

 

346,455

Health Care Technology - 0.2%

IMS Health, Inc.

1,110

24,664

Life Sciences Tools & Services - 1.6%

Applied Biosystems, Inc.

1,480

54,005

Invitrogen Corp. (a)

965

40,974

Thermo Fisher Scientific, Inc. (a)

620

37,547

Waters Corp. (a)

785

53,576

 

186,102

Pharmaceuticals - 1.7%

Allergan, Inc.

1,130

63,133

Endo Pharmaceuticals Holdings, Inc. (a)

640

14,541

Forest Laboratories, Inc. (a)

1,495

53,357

Perrigo Co.

1,030

36,040

Warner Chilcott Ltd. (a)

1,880

30,080

 

197,151

TOTAL HEALTH CARE

1,080,432

INDUSTRIALS - 11.4%

Aerospace & Defense - 2.0%

DRS Technologies, Inc.

535

42,597

Goodrich Corp.

965

49,456

L-3 Communications Holdings, Inc.

705

73,278

Precision Castparts Corp.

330

34,076

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Aerospace & Defense - continued

Rockwell Collins, Inc.

252

$ 13,253

TransDigm Group, Inc. (a)

430

16,151

 

228,811

Air Freight & Logistics - 0.3%

C.H. Robinson Worldwide, Inc.

660

34,393

Airlines - 0.0%

Republic Airways Holdings, Inc. (a)

560

4,838

Building Products - 0.4%

Lennox International, Inc.

620

22,940

Masco Corp.

1,083

20,642

 

43,582

Commercial Services & Supplies - 1.6%

Comfort Systems USA, Inc.

1,455

22,174

Covanta Holding Corp. (a)

735

20,448

Deluxe Corp.

251

4,144

Herman Miller, Inc.

755

21,246

Manpower, Inc.

626

30,086

Pitney Bowes, Inc.

1,260

43,029

R.R. Donnelley & Sons Co.

1,450

40,426

 

181,553

Construction & Engineering - 1.6%

EMCOR Group, Inc. (a)

1,285

43,780

Fluor Corp.

860

68,912

Foster Wheeler Ltd. (a)

825

40,994

Jacobs Engineering Group, Inc. (a)

111

8,194

KBR, Inc.

579

14,214

Perini Corp. (a)

370

9,883

 

185,977

Electrical Equipment - 1.4%

Acuity Brands, Inc.

515

22,408

Cooper Industries Ltd. Class A

1,205

57,406

Hubbell, Inc. Class B

363

15,794

Roper Industries, Inc.

610

36,039

Thomas & Betts Corp. (a)

660

30,413

 

162,060

Industrial Conglomerates - 0.3%

McDermott International, Inc. (a)

1,180

40,981

Machinery - 3.1%

Actuant Corp. Class A

825

26,029

AGCO Corp. (a)

795

48,996

Cummins, Inc.

390

25,412

Dover Corp.

1,225

60,491

Eaton Corp.

570

41,713

Flowserve Corp.

390

51,527

Gardner Denver, Inc. (a)

595

26,858

ITT Corp.

68

4,335

John Bean Technologies Corp. (a)

171

2,223

 

Shares

Value

Manitowoc Co., Inc.

1,050

$ 26,439

Parker Hannifin Corp.

820

52,537

 

366,560

Road & Rail - 0.4%

Arkansas Best Corp.

440

15,233

CSX Corp.

515

33,310

 

48,543

Trading Companies & Distributors - 0.3%

W.W. Grainger, Inc.

355

31,961

TOTAL INDUSTRIALS

1,329,259

INFORMATION TECHNOLOGY - 13.3%

Communications Equipment - 1.0%

ADC Telecommunications, Inc. (a)

920

9,430

Harris Corp.

725

37,961

Juniper Networks, Inc. (a)

2,570

66,049

 

113,440

Computers & Peripherals - 1.5%

Lexmark International, Inc. Class A (a)

1,240

44,603

NetApp, Inc. (a)

2,090

53,253

Seagate Technology

1,755

26,167

Teradata Corp. (a)

1,450

35,627

Western Digital Corp. (a)

660

17,992

 

177,642

Electronic Equipment & Instruments - 0.9%

Agilent Technologies, Inc. (a)

1,715

59,613

Arrow Electronics, Inc. (a)

500

16,595

Mettler-Toledo International, Inc. (a)

245

25,774

 

101,982

Internet Software & Services - 0.1%

IAC/InterActiveCorp (a)

769

12,765

IT Services - 2.2%

Affiliated Computer Services, Inc. Class A (a)

500

26,620

Alliance Data Systems Corp. (a)

560

35,974

Computer Sciences Corp. (a)

725

34,097

Fiserv, Inc. (a)

590

30,597

Hewitt Associates, Inc. Class A (a)

1,140

45,839

MasterCard, Inc. Class A

105

25,468

Metavante Holding Co. (a)

1,675

39,597

Paychex, Inc.

90

3,067

SAIC, Inc. (a)

955

19,148

 

260,407

Office Electronics - 0.4%

Xerox Corp.

3,670

51,123

Semiconductors & Semiconductor Equipment - 3.8%

Altera Corp.

2,455

55,581

Amkor Technology, Inc. (a)

2,440

18,324

Broadcom Corp. Class A (a)

2,460

59,188

Integrated Device Technology, Inc. (a)

2,150

22,769

Linear Technology Corp.

1,370

44,717

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Semiconductors & Semiconductor Equipment - continued

LSI Corp. (a)

6,350

$ 42,228

Marvell Technology Group Ltd. (a)

1,500

21,165

MEMC Electronic Materials, Inc. (a)

570

27,981

Microchip Technology, Inc.

1,355

43,374

National Semiconductor Corp.

1,800

38,574

NVIDIA Corp. (a)

2,410

30,462

Xilinx, Inc.

1,255

32,605

 

436,968

Software - 3.4%

Autodesk, Inc. (a)

1,585

56,315

BMC Software, Inc. (a)

1,140

37,118

CA, Inc.

2,440

58,340

Cadence Design Systems, Inc. (a)

2,200

17,578

Compuware Corp. (a)

4,045

46,234

Electronic Arts, Inc. (a)

167

8,151

Intuit, Inc. (a)

1,435

43,150

Jack Henry & Associates, Inc.

750

15,023

Net 1 UEPS Technologies, Inc. (a)

1,140

30,575

Salesforce.com, Inc. (a)

550

30,811

Sybase, Inc. (a)

680

23,399

Synopsys, Inc. (a)

1,545

33,264

 

399,958

TOTAL INFORMATION TECHNOLOGY

1,554,285

MATERIALS - 4.9%

Chemicals - 2.7%

Air Products & Chemicals, Inc.

170

15,615

Airgas, Inc.

585

34,655

Celanese Corp. Class A

950

36,632

Eastman Chemical Co.

580

34,986

Lubrizol Corp.

665

35,238

PPG Industries, Inc.

20

1,257

RPM International, Inc.

1,985

42,876

Sigma Aldrich Corp.

805

45,692

Terra Industries, Inc.

915

45,979

The Mosaic Co.

230

24,550

 

317,480

Containers & Packaging - 0.8%

Ball Corp.

205

9,414

Owens-Illinois, Inc. (a)

755

33,673

Rock-Tenn Co. Class A

580

21,274

Sonoco Products Co.

735

25,402

 

89,763

Metals & Mining - 1.3%

AK Steel Holding Corp.

715

37,616

Carpenter Technology Corp.

292

11,333

Freeport-McMoRan Copper & Gold, Inc. Class B

260

23,223

Reliance Steel & Aluminum Co.

630

35,916

 

Shares

Value

Steel Dynamics, Inc.

530

$ 13,160

United States Steel Corp.

190

25,283

 

146,531

Paper & Forest Products - 0.1%

International Paper Co.

500

13,525

TOTAL MATERIALS

567,299

TELECOMMUNICATION SERVICES - 2.7%

Diversified Telecommunication Services - 1.5%

CenturyTel, Inc.

1,120

43,266

Cincinnati Bell, Inc. (a)

6,560

25,584

Embarq Corp.

580

27,353

Qwest Communications International, Inc.

8,820

33,340

Windstream Corp.

3,870

48,065

 

177,608

Wireless Telecommunication Services - 1.2%

American Tower Corp. Class A (a)

1,780

73,567

Crown Castle International Corp. (a)

1,150

43,010

Telephone & Data Systems, Inc.

480

18,432

U.S. Cellular Corp. (a)

130

6,799

 

141,808

TOTAL TELECOMMUNICATION SERVICES

319,416

UTILITIES - 7.5%

Electric Utilities - 1.9%

American Electric Power Co., Inc.

1,355

52,899

DPL, Inc.

1,450

35,989

Edison International

1,400

64,288

Northeast Utilities

111

2,985

Pepco Holdings, Inc.

1,200

30,420

PPL Corp.

510

22,323

Progress Energy, Inc.

85

3,713

Sierra Pacific Resources

1,460

16,410

 

229,027

Gas Utilities - 0.9%

Energen Corp.

680

37,971

National Fuel Gas Co. New Jersey

710

33,590

Questar Corp.

200

10,378

Southern Union Co.

1,016

26,477

 

108,416

Independent Power Producers & Energy Traders - 0.8%

AES Corp. (a)

430

6,562

Constellation Energy Group, Inc.

165

11,007

Common Stocks - continued

Shares

Value

UTILITIES - continued

Independent Power Producers & Energy Traders - continued

Mirant Corp. (a)

960

$ 28,397

NRG Energy, Inc. (a)

1,200

45,168

 

91,134

Multi-Utilities - 3.9%

Alliant Energy Corp.

1,120

39,144

Ameren Corp.

1,055

44,162

CenterPoint Energy, Inc.

2,150

34,142

CMS Energy Corp.

1,147

15,565

Consolidated Edison, Inc.

880

35,992

DTE Energy Co.

1,000

42,160

MDU Resources Group, Inc.

1,310

43,282

PG&E Corp.

306

12,647

SCANA Corp.

990

38,808

Sempra Energy

1,100

63,712

TECO Energy, Inc.

1,675

29,882

Vectren Corp.

384

10,652

Xcel Energy, Inc.

1,990

40,815

 

450,963

TOTAL UTILITIES

879,540

TOTAL COMMON STOCKS

(Cost $11,431,902)

10,887,832

Investment Companies - 2.5%

 

 

 

 

iShares Russell Midcap Index ETF
(Cost $289,301)

3,118

295,485

U.S. Treasury Obligations - 0.2%

 

Principal Amount

 

U.S. Treasury Bills, yield at date of purchase 1.78% 9/25/08 (b)
(Cost $19,975)

$ 20,000

19,980

Money Market Funds - 4.5%

Shares

Value

Dreyfus Cash Management, 2.66% (c)
(Cost $526,906)

526,906

$ 526,906

TOTAL INVESTMENT PORTFOLIO - 100.6%

(Cost $12,268,084)

11,730,203

NET OTHER ASSETS - (0.6)%

(72,202)

NET ASSETS - 100%

$ 11,658,001

Futures Contracts

Expiration Date

Underlying Face Amount at Value

Unrealized Appreciation/(Depreciation)

Purchased

Equity Index Contracts

5 CME E-mini S&P MidCap 400 Index Contracts

Sept. 2008

$ 408,000

$ 6,534

 

The face value of futures purchased as a percentage of net assets - 3.5%

Legend

(a) Non-income producing

(b) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $19,980.

(c) The rate quoted is the annualized seven-day yield at period end.

Other Information

The following is a summary of the inputs used, as of August 31, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities

11,730,203

11,710,223

19,980

-

Other Financial Instruments*

6,534

6,534

-

-

*Other financial instruments include Futures Contracts.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Mid Cap Enhanced Index Fund

Financial Statements

Statement of Assets and Liabilities

  

August 31, 2008 (Unaudited)

 

 

 

Assets

Investment in securities, at value - See accompanying schedule:

Unaffiliated issuers (cost $12,268,084)

 

$ 11,730,203

Cash

31,672

Receivable for fund shares sold

22,818

Dividends receivable

11,910

Interest receivable

986

Total assets

11,797,589

 

 

 

Liabilities

Payable for investments purchased

$ 120,351

Payable for fund shares redeemed

10,066

Accrued management fee

4,179

Payable for daily variation on futures contracts

3,600

Other affiliated payables

1,392

Total liabilities

139,588

 

 

 

Net Assets

$ 11,658,001

Net Assets consist of:

 

Paid in capital

$ 12,305,220

Undistributed net investment income

40,683

Accumulated undistributed net realized gain (loss) on investments

(156,555)

Net unrealized appreciation (depreciation) on investments

(531,347)

Net Assets, for 1,270,514 shares outstanding

$ 11,658,001

Net Asset Value, offering price and redemption price per share ($11,658,001 ÷ 1,270,514 shares)

$ 9.18

Statement of Operations

 

Six months ended August 31, 2008 (Unaudited)

 

  

  

Investment Income

  

  

Dividends

 

$ 64,111

Interest

 

5,717

Total income

 

69,828

 

 

 

Expenses

Management fee

$ 19,869

Transfer agent fees

6,574

Independent trustees' compensation

384

Total expenses before reductions

26,827

Expense reductions

(15)

26,812

Net investment income (loss)

43,016

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

(137,139)

Futures contracts

(7,051)

Total net realized gain (loss)

 

(144,190)

Change in net unrealized appreciation (depreciation) on:

Investment securities

(103,549)

Futures contracts

6,534

Total change in net unrealized appreciation (depreciation)

 

(97,015)

Net gain (loss)

(241,205)

Net increase (decrease) in net assets resulting from operations

$ (198,189)

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Changes in Net Assets

  

Six months ended August 31, 2008 (Unaudited)

For the period
December 20, 2007
(commencement of operations) to
February 29, 2008

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 43,016

$ 12,807

Net realized gain (loss)

(144,190)

(12,365)

Change in net unrealized appreciation (depreciation)

(97,015)

(434,332)

Net increase (decrease) in net assets resulting from operations

(198,189)

(433,890)

Distributions to shareholders from net investment income

(15,140)

-

Share transactions
Proceeds from sales of shares

7,146,445

6,410,673

Reinvestment of distributions

15,071

-

Cost of shares redeemed

(1,257,969)

(9,623)

Net increase (decrease) in net assets resulting from share transactions

5,903,547

6,401,050

Redemption fees

551

72

Total increase (decrease) in net assets

5,690,769

5,967,232

 

 

 

Net Assets

Beginning of period

5,967,232

-

End of period (including undistributed net investment income of $40,683 and undistributed net investment income of $12,807, respectively)

$ 11,658,001

$ 5,967,232

Other Information

Shares

Sold

754,735

652,156

Issued in reinvestment of distributions

1,645

-

Redeemed

(136,975)

(1,047)

Net increase (decrease)

619,405

651,109

Financial Highlights

 

Six months ended August 31, 2008
Year ended February 29,
 
(Unaudited)
2008 E

Selected Per-Share Data

 

 

Net asset value, beginning of period

$ 9.16

$ 10.00

Income from Investment Operations

 

 

Net investment income (loss) D

  .04

.02

Net realized and unrealized gain (loss)

  - G

(.86)

Total from investment operations

  .04

(.84)

Distributions from net investment income

  (.02)

-

Redemption fees added to paid in capital D, G

  -

-

Net asset value, end of period

$ 9.18

$ 9.16

Total Return B, C

  .44%

(8.40)%

Ratios to Average Net Assets F

 

 

Expenses before reductions

  .60% A

.60%A

Expenses net of fee waivers, if any

  .60%A

.60%A

Expenses net of all reductions

  .60%A

.60%A

Net investment income (loss)

  .95%A

1.25%A

Supplemental Data

 

 

Net assets, end of period (000 omitted)

$ 11,658

$ 5,967

Portfolio turnover rate

  72%A

16%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Calculated based on average shares outstanding during the period.

E For the period December 20, 2007 (commencement of operations) to February 29, 2008.

F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

G Amount represents less than $.01 per share.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Small Cap Enhanced Index Fund

Investment Changes (Unaudited)

Top Ten Stocks as of August 31, 2008

 

% of fund's
net assets

% of fund's net assets
6 months ago

Wabtec Corp.

0.7

0.5

Ralcorp Holdings, Inc.

0.7

0.5

Woodward Governor Co.

0.6

0.4

EMCOR Group, Inc.

0.6

0.4

Watson Wyatt Worldwide, Inc. Class A

0.6

0.5

Esterline Technologies Corp.

0.6

0.0

Sybase, Inc.

0.6

0.2

Casey's General Stores, Inc.

0.6

0.3

McMoRan Exploration Co.

0.6

0.0

Brady Corp. Class A

0.5

0.0

 

6.1

 

Market Sectors as of August 31, 2008

 

% of fund's
net assets

% of fund's net assets
6 months ago

Industrials

17.5

14.4

Financials

17.2

17.9

Information Technology

16.4

17.4

Health Care

12.8

13.1

Consumer Discretionary

11.0

14.5

Energy

6.2

6.4

Materials

4.3

6.7

Consumer Staples

3.6

3.4

Utilities

2.3

2.0

Telecommunication Services

2.2

2.2

Semiannual Report

Fidelity Small Cap Enhanced Index Fund

Investments August 31, 2008 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 93.5%

Shares

Value

CONSUMER DISCRETIONARY - 11.0%

Auto Components - 1.1%

ATC Technology Corp. (a)

2,722

$ 65,927

Cooper Tire & Rubber Co.

2,445

23,374

Drew Industries, Inc. (a)

1,365

21,881

Fuel Systems Solutions, Inc. (a)

741

38,406

Lear Corp. (a)

676

8,491

Stoneridge, Inc. (a)

5,439

69,075

Superior Industries International, Inc.

500

8,785

 

235,939

Diversified Consumer Services - 1.2%

American Public Education, Inc.

1,072

47,918

DeVry, Inc.

1,021

52,663

Jackson Hewitt Tax Service, Inc.

604

10,371

Sotheby's Class A (ltd. vtg.)

1,630

43,912

Stewart Enterprises, Inc. Class A

5,251

49,149

Strayer Education, Inc.

280

58,755

 

262,768

Hotels, Restaurants & Leisure - 1.9%

Bally Technologies, Inc. (a)

2,342

80,167

Bob Evans Farms, Inc.

3,412

95,775

Buffalo Wild Wings, Inc. (a)

1,703

61,444

Denny's Corp. (a)

27,470

76,916

Jack in the Box, Inc. (a)

603

14,309

Papa John's International, Inc. (a)

2,322

64,830

Speedway Motorsports, Inc.

370

8,188

 

401,629

Household Durables - 0.5%

Furniture Brands International, Inc.

3,382

30,269

Tupperware Brands Corp.

1,476

52,723

Universal Electronics, Inc. (a)

870

22,811

 

105,803

Internet & Catalog Retail - 0.6%

Netflix, Inc. (a)

2,701

83,299

NutriSystem, Inc.

1,686

33,501

 

116,800

Leisure Equipment & Products - 0.2%

Polaris Industries, Inc.

759

34,223

Media - 1.4%

Belo Corp. Series A

8,023

58,809

Cox Radio, Inc. Class A (a)

2,276

25,377

Interactive Data Corp.

3,197

96,230

LIN TV Corp. Class A (a)

4,940

30,381

Marvel Entertainment, Inc. (a)

1,315

44,539

Sinclair Broadcast Group, Inc. Class A

4,334

30,728

 

286,064

Specialty Retail - 2.9%

Aeropostale, Inc. (a)

3,327

115,979

Christopher & Banks Corp.

1,486

14,295

Dress Barn, Inc. (a)

2,894

47,056

Finish Line, Inc. Class A

5,584

67,511

 

Shares

Value

Genesco, Inc. (a)

3,099

$ 113,454

Gymboree Corp. (a)

1,683

66,058

Jo-Ann Stores, Inc. (a)

2,059

51,413

Midas, Inc. (a)

1,256

18,049

The Buckle, Inc.

525

27,263

Wet Seal, Inc. Class A (a)

18,448

86,890

 

607,968

Textiles, Apparel & Luxury Goods - 1.2%

Deckers Outdoor Corp. (a)

473

53,775

Fossil, Inc. (a)

1,663

49,757

Lululemon Athletica, Inc. (a)

793

15,360

Maidenform Brands, Inc. (a)

1,255

18,951

Perry Ellis International, Inc. (a)

2,986

50,941

Quiksilver, Inc. (a)

7,129

54,965

 

243,749

TOTAL CONSUMER DISCRETIONARY

2,294,943

CONSUMER STAPLES - 3.6%

Food & Staples Retailing - 1.5%

Casey's General Stores, Inc.

4,283

124,207

Longs Drug Stores Corp.

1,500

107,475

Nash-Finch Co.

2,177

88,647

 

320,329

Food Products - 1.6%

Darling International, Inc. (a)

4,090

56,156

Flowers Foods, Inc.

4,124

109,039

Ralcorp Holdings, Inc. (a)

2,291

140,667

TreeHouse Foods, Inc. (a)

805

22,347

 

328,209

Personal Products - 0.5%

Chattem, Inc. (a)

957

67,105

Prestige Brands Holdings, Inc. (a)

4,275

40,613

 

107,718

TOTAL CONSUMER STAPLES

756,256

ENERGY - 6.2%

Energy Equipment & Services - 2.1%

Complete Production Services, Inc. (a)

2,084

61,582

Grey Wolf, Inc. (a)

12,890

112,272

Gulfmark Offshore, Inc. (a)

1,334

66,833

IHS, Inc. Class A (a)

170

10,907

Newpark Resources, Inc. (a)

4,767

40,901

Oil States International, Inc. (a)

654

36,382

T-3 Energy Services, Inc. (a)

510

28,473

Trico Marine Services, Inc. (a)

1,271

30,186

Willbros Group, Inc. (a)

1,405

58,181

 

445,717

Oil, Gas & Consumable Fuels - 4.1%

Abraxas Petroleum Corp. (a)

3,790

13,682

Berry Petroleum Co. Class A

2,633

109,585

Common Stocks - continued

Shares

Value

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Callon Petroleum Co. (a)

1,334

$ 26,507

Concho Resources, Inc.

2,357

77,003

Endeavor International Corp. (a)

16,930

29,120

Gasco Energy, Inc. (a)

6,134

16,132

Gran Tierra Energy, Inc. (a)

3,000

14,700

Mariner Energy, Inc. (a)

1,027

29,875

McMoRan Exploration Co. (a)

4,290

117,332

Nordic American Tanker Shipping Ltd.

2,850

100,263

Penn Virginia Corp.

922

61,018

Stone Energy Corp. (a)

2,008

95,721

Swift Energy Co. (a)

1,031

48,158

Teekay Tankers Ltd.

4,298

86,605

Whiting Petroleum Corp. (a)

303

29,161

 

854,862

TOTAL ENERGY

1,300,579

FINANCIALS - 17.2%

Capital Markets - 2.2%

Apollo Investment Corp.

160

2,832

BlackRock Kelso Capital Corp.

4,310

48,229

Hercules Technology Growth Capital, Inc.

3,507

36,508

Knight Capital Group, Inc. Class A (a)

3,914

67,477

MCG Capital Corp.

1,164

4,051

MVC Capital, Inc.

3,157

47,134

optionsXpress Holdings, Inc.

3,183

73,432

Patriot Capital Funding, Inc.

414

3,072

PennantPark Investment Corp.

3,897

31,137

Penson Worldwide, Inc. (a)

2,433

40,996

Prospect Capital Corp.

6,196

86,744

Waddell & Reed Financial, Inc. Class A

550

17,710

 

459,322

Commercial Banks - 5.3%

City Bank Lynnwood, Washington

131

1,592

Columbia Banking Systems, Inc.

2,496

34,944

Community Bank System, Inc.

2,865

64,749

Community Trust Bancorp, Inc.

133

4,461

First Bancorp, Puerto Rico

5,826

55,056

First Financial Bancorp, Ohio

2,143

27,902

First Financial Bankshares, Inc.

835

40,973

Glacier Bancorp, Inc.

4,938

105,278

Green Bankshares, Inc.

646

9,981

Home Bancshares, Inc.

2,466

59,258

Lakeland Financial Corp.

1,516

30,881

MainSource Financial Group, Inc.

1,599

28,958

National Penn Bancshares, Inc.

6,157

87,922

Old Second Bancorp, Inc.

2,620

44,357

Oriental Financial Group, Inc.

4,720

81,562

Pacific Capital Bancorp

4,204

61,841

 

Shares

Value

Pennsylvania Communication Bancorp, Inc. (a)

851

$ 23,794

Renasant Corp.

1,621

30,653

S&T Bancorp, Inc.

2,450

82,222

Sandy Spring Bancorp, Inc.

693

12,405

Santander Bancorp

4,753

52,188

Smithtown Bancorp, Inc.

1,551

29,485

Suffolk Bancorp

1,795

63,776

Tompkins Financial Corp.

510

23,093

Virginia Commerce Bancorp, Inc.

3,291

17,376

WesBanco, Inc.

1,968

48,767

 

1,123,474

Consumer Finance - 0.3%

Dollar Financial Corp. (a)

2,112

38,607

EZCORP, Inc. (non-vtg.) Class A (a)

1,750

27,283

 

65,890

Diversified Financial Services - 0.2%

Encore Capital Group, Inc. (a)

3,746

47,574

Insurance - 3.0%

Amerisafe, Inc. (a)

5,102

94,336

Aspen Insurance Holdings Ltd.

1,891

51,246

Assured Guaranty Ltd.

2,326

37,821

Darwin Professional Underwriters, Inc. (a)

1,648

52,126

FBL Financial Group, Inc. Class A

513

11,773

Harleysville Group, Inc.

890

32,280

IPC Holdings Ltd.

1,266

40,094

Maiden Holdings Ltd.

6,009

39,179

Max Capital Group Ltd.

852

22,152

Navigators Group, Inc. (a)

1,028

53,867

Platinum Underwriters Holdings Ltd.

1,539

55,635

RLI Corp.

1,542

86,213

SeaBright Insurance Holdings, Inc. (a)

3,716

45,112

 

621,834

Real Estate Investment Trusts - 5.1%

Alexandria Real Estate Equities, Inc.

142

15,295

Ashford Hospitality Trust, Inc.

6,935

31,485

BioMed Realty Trust, Inc.

3,443

92,204

Capstead Mortgage Corp.

2,250

26,415

Digital Realty Trust, Inc.

528

24,219

Extra Space Storage, Inc.

3,715

58,511

First Industrial Realty Trust, Inc.

728

17,174

Highwoods Properties, Inc. (SBI)

2,312

83,856

Home Properties, Inc.

638

33,655

LaSalle Hotel Properties (SBI)

1,940

50,576

Lexington Corporate Properties Trust

4,946

73,745

Mission West Properties, Inc.

2,334

22,733

National Retail Properties, Inc.

3,974

90,170

Nationwide Health Properties, Inc.

1,202

41,373

NorthStar Realty Finance Corp.

9,819

70,206

Omega Healthcare Investors, Inc.

4,253

75,874

Parkway Properties, Inc.

1,014

36,474

Common Stocks - continued

Shares

Value

FINANCIALS - continued

Real Estate Investment Trusts - continued

Pennsylvania Real Estate Investment Trust (SBI)

1,385

$ 27,492

PS Business Parks, Inc.

790

42,526

Realty Income Corp.

2,077

53,337

Senior Housing Properties Trust (SBI)

927

20,097

Sunstone Hotel Investors, Inc.

5,778

81,932

 

1,069,349

Thrifts & Mortgage Finance - 1.1%

First Niagara Financial Group, Inc.

3,774

56,459

Flushing Financial Corp.

500

8,695

Ocwen Financial Corp. (a)

11,612

80,936

Provident Financial Services, Inc.

3,813

58,148

United Financial Bancorp, Inc.

1,551

19,837

 

224,075

TOTAL FINANCIALS

3,611,518

HEALTH CARE - 12.8%

Biotechnology - 2.9%

Alexion Pharmaceuticals, Inc. (a)

320

14,426

Alnylam Pharmaceuticals, Inc. (a)

2,317

68,699

ARIAD Pharmaceuticals, Inc. (a)

14,748

45,866

BioMarin Pharmaceutical, Inc. (a)

895

26,975

Cubist Pharmaceuticals, Inc. (a)

2,008

44,236

GTx, Inc. (a)

696

12,326

Isis Pharmaceuticals, Inc. (a)

4,951

87,534

Martek Biosciences (a)

1,502

50,182

Medarex, Inc. (a)

3,600

26,568

Momenta Pharmaceuticals, Inc. (a)

1,910

27,389

ONYX Pharmaceuticals, Inc. (a)

224

9,155

OSI Pharmaceuticals, Inc. (a)

2,039

102,970

Regeneron Pharmaceuticals, Inc. (a)

942

20,460

Seattle Genetics, Inc. (a)

1,576

17,572

Synta Pharmaceuticals Corp. (a)

4,359

38,621

Targacept, Inc. (a)

1,576

14,420

Theravance, Inc. (a)

500

6,815

 

614,214

Health Care Equipment & Supplies - 3.8%

American Medical Systems Holdings, Inc. (a)

3,647

64,917

Cardiac Science Corp. (a)

3,083

31,601

CONMED Corp. (a)

1,511

48,292

Cryolife, Inc. (a)

4,565

72,036

Invacare Corp.

2,929

74,484

Masimo Corp.

2,496

99,765

Meridian Bioscience, Inc.

2,220

63,092

Merit Medical Systems, Inc. (a)

4,184

81,002

Quidel Corp. (a)

4,450

86,998

 

Shares

Value

Somanetics Corp. (a)

3,507

$ 86,974

Steris Corp.

2,486

91,410

 

800,571

Health Care Providers & Services - 4.1%

Amedisys, Inc. (a)

823

43,800

AMERIGROUP Corp. (a)

815

21,092

AMN Healthcare Services, Inc. (a)

4,526

85,994

AmSurg Corp. (a)

1,640

44,460

Apria Healthcare Group, Inc. (a)

1,213

23,993

Centene Corp. (a)

2,090

47,192

Chemed Corp.

1,453

63,554

Cross Country Healthcare, Inc. (a)

2,492

39,050

Hanger Orthopedic Group, Inc. (a)

1,996

33,792

HealthSouth Corp. (a)

5,126

92,217

Magellan Health Services, Inc. (a)

759

33,062

Medcath Corp. (a)

527

11,209

Molina Healthcare, Inc. (a)

2,948

92,774

Owens & Minor, Inc.

2,331

107,506

PharMerica Corp. (a)

3,466

82,040

RehabCare Group, Inc. (a)

1,439

26,391

 

848,126

Life Sciences Tools & Services - 0.9%

Albany Molecular Research, Inc. (a)

1,842

32,106

Bio-Rad Laboratories, Inc. Class A (a)

461

49,604

Dionex Corp. (a)

811

52,869

eResearchTechnology, Inc. (a)

1,978

26,683

Kendle International, Inc. (a)

537

26,555

 

187,817

Pharmaceuticals - 1.1%

Adolor Corp. (a)

3,825

12,470

DepoMed, Inc. (a)

6,989

30,542

Medicis Pharmaceutical Corp. Class A

2,585

53,535

Noven Pharmaceuticals, Inc. (a)

3,271

40,397

Pain Therapeutics, Inc. (a)

2,194

20,514

Sciele Pharma, Inc.

1,909

36,786

ViroPharma, Inc. (a)

2,844

41,665

XenoPort, Inc. (a)

75

3,662

 

239,571

TOTAL HEALTH CARE

2,690,299

INDUSTRIALS - 17.5%

Aerospace & Defense - 2.3%

Ceradyne, Inc. (a)

543

24,468

Cubic Corp.

2,242

62,081

Curtiss-Wright Corp.

350

18,855

Esterline Technologies Corp. (a)

2,223

125,577

Hexcel Corp. (a)

1,955

40,625

Teledyne Technologies, Inc. (a)

1,786

111,321

TransDigm Group, Inc. (a)

2,711

101,825

 

484,752

Common Stocks - continued

Shares

Value

INDUSTRIALS - continued

Air Freight & Logistics - 1.1%

Atlas Air Worldwide Holdings, Inc. (a)

1,321

$ 76,275

Hub Group, Inc. Class A (a)

2,605

104,044

Pacer International, Inc.

2,533

53,396

 

233,715

Airlines - 0.2%

SkyWest, Inc.

2,358

40,298

Building Products - 0.8%

Gibraltar Industries, Inc.

4,073

87,610

Insteel Industries, Inc.

4,588

78,455

 

166,065

Commercial Services & Supplies - 3.5%

Administaff, Inc.

724

19,838

Cenveo, Inc. (a)

7,891

81,830

Comfort Systems USA, Inc.

5,703

86,914

Comsys IT Partners, Inc. (a)

2,499

29,588

CoStar Group, Inc. (a)

730

38,551

Deluxe Corp.

1,655

27,324

Heidrick & Struggles International, Inc.

1,615

49,031

Knoll, Inc.

3,195

52,622

Korn/Ferry International (a)

1,062

18,882

MPS Group, Inc. (a)

5,660

65,203

Navigant Consulting, Inc. (a)

2,559

44,296

On Assignment, Inc. (a)

9,787

92,487

Waste Connections, Inc. (a)

225

8,170

Watson Wyatt Worldwide, Inc. Class A

2,150

125,969

 

740,705

Construction & Engineering - 1.3%

EMCOR Group, Inc. (a)

3,726

126,945

MasTec, Inc. (a)

4,785

67,564

Perini Corp. (a)

2,685

71,716

 

266,225

Electrical Equipment - 2.9%

Acuity Brands, Inc.

927

40,334

Belden, Inc.

1,505

55,294

Brady Corp. Class A

3,179

116,701

Encore Wire Corp.

1,200

22,884

GrafTech International Ltd. (a)

4,982

101,234

II-VI, Inc. (a)

2,199

96,558

Regal-Beloit Corp.

923

43,335

Woodward Governor Co.

2,831

131,160

 

607,500

Machinery - 4.0%

Actuant Corp. Class A

2,077

65,529

CIRCOR International, Inc.

1,524

91,836

Columbus McKinnon Corp. (NY Shares) (a)

2,887

78,786

Gorman-Rupp Co.

330

13,276

Graham Corp.

362

33,811

Middleby Corp. (a)

951

50,745

 

Shares

Value

Nordson Corp.

1,526

$ 81,839

Robbins & Myers, Inc.

2,021

90,642

TriMas Corp. (a)

3,571

27,604

Valmont Industries, Inc.

350

37,359

Wabtec Corp.

2,408

142,241

Watts Water Technologies, Inc. Class A

2,636

74,941

Xerium Technologies, Inc.

5,664

43,669

 

832,278

Road & Rail - 0.7%

Arkansas Best Corp.

1,773

61,381

Werner Enterprises, Inc.

3,330

75,957

 

137,338

Trading Companies & Distributors - 0.7%

Applied Industrial Technologies, Inc.

1,809

52,660

Beacon Roofing Supply, Inc. (a)

6,077

98,934

 

151,594

TOTAL INDUSTRIALS

3,660,470

INFORMATION TECHNOLOGY - 16.4%

Communications Equipment - 3.1%

3Com Corp. (a)

39,612

83,977

Adtran, Inc.

2,762

62,974

BigBand Networks, Inc. (a)

12,526

43,966

Blue Coat Systems, Inc. (a)

2,591

48,193

Emulex Corp. (a)

3,860

51,801

Foundry Networks, Inc. (a)

3,816

70,176

Infinera Corp. (a)

2,718

29,952

NETGEAR, Inc. (a)

612

10,312

Polycom, Inc. (a)

2,886

80,923

Powerwave Technologies, Inc. (a)

9,235

46,637

Tekelec (a)

6,101

100,117

ViaSat, Inc. (a)

330

8,656

 

637,684

Computers & Peripherals - 0.9%

Electronics for Imaging, Inc. (a)

3,475

57,650

Intevac, Inc. (a)

542

5,518

Isilon Systems, Inc. (a)

7,627

38,593

Novatel Wireless, Inc. (a)

5,985

37,287

Rackable Systems, Inc. (a)

3,885

40,249

 

179,297

Electronic Equipment & Instruments - 2.0%

Anixter International, Inc. (a)

1,140

84,143

Checkpoint Systems, Inc. (a)

2,338

49,776

CTS Corp.

4,099

54,271

Insight Enterprises, Inc. (a)

3,954

65,795

Mercury Computer Systems, Inc. (a)

3,802

35,169

Sanmina-SCI Corp. (a)

26,602

62,515

Technitrol, Inc.

2,855

45,138

TTM Technologies, Inc. (a)

1,972

23,625

 

420,432

Common Stocks - continued

Shares

Value

INFORMATION TECHNOLOGY - continued

Internet Software & Services - 2.1%

Chordiant Software, Inc. (a)

4,708

$ 28,013

EarthLink, Inc. (a)

7,126

66,414

Greenfield Online, Inc. (a)

4,096

71,066

InfoSpace, Inc.

5,445

63,707

Interwoven, Inc. (a)

3,222

47,428

j2 Global Communications, Inc. (a)

320

7,894

LoopNet, Inc. (a)

4,202

44,793

NIC, Inc.

1,225

8,477

SonicWALL, Inc. (a)

1,810

11,837

United Online, Inc.

6,466

68,087

Vignette Corp. (a)

1,695

23,103

 

440,819

IT Services - 1.2%

Acxiom Corp.

5,620

81,209

CSG Systems International, Inc. (a)

1,494

28,237

Global Cash Access Holdings, Inc. (a)

3,375

20,216

Maximus, Inc.

906

33,522

SAIC, Inc. (a)

2,883

57,804

Sapient Corp. (a)

4,225

39,166

 

260,154

Semiconductors & Semiconductor Equipment - 3.2%

Advanced Energy Industries, Inc. (a)

828

13,356

Amkor Technology, Inc. (a)

7,831

58,811

Applied Micro Circuits Corp. (a)

6,374

50,737

Atheros Communications, Inc. (a)

3,265

106,472

MKS Instruments, Inc. (a)

1,675

37,755

ON Semiconductor Corp. (a)

2,742

25,967

PMC-Sierra, Inc. (a)

3,939

35,451

Silicon Image, Inc. (a)

11,276

78,143

Skyworks Solutions, Inc. (a)

9,803

95,089

TriQuint Semiconductor, Inc. (a)

14,491

91,148

Ultratech, Inc. (a)

1,424

21,146

Veeco Instruments, Inc. (a)

3,189

53,607

 

667,682

Software - 3.9%

Ansys, Inc. (a)

1,003

44,483

Jack Henry & Associates, Inc.

3,277

65,638

JDA Software Group, Inc. (a)

3,787

69,037

Macrovision Solutions Corp. (a)

1,380

21,418

Manhattan Associates, Inc. (a)

1,992

48,824

MICROS Systems, Inc. (a)

1,067

32,885

MicroStrategy, Inc. Class A (a)

215

13,794

Net 1 UEPS Technologies, Inc. (a)

1,056

28,322

Parametric Technology Corp. (a)

4,434

89,035

Quest Software, Inc. (a)

1,955

28,914

Secure Computing Corp. (a)

2,375

10,165

Solera Holdings, Inc. (a)

3,560

109,755

SPSS, Inc. (a)

2,059

65,023

Sybase, Inc. (a)

3,626

124,771

 

Shares

Value

TIBCO Software, Inc. (a)

2,471

$ 20,237

Vasco Data Security International, Inc. (a)

3,803

52,557

 

824,858

TOTAL INFORMATION TECHNOLOGY

3,430,926

MATERIALS - 4.3%

Chemicals - 1.4%

H.B. Fuller Co.

3,263

85,066

Hercules, Inc.

1,640

35,342

Innophos Holdings, Inc.

2,214

83,003

Innospec, Inc.

1,860

29,183

PolyOne Corp. (a)

6,948

57,043

W.R. Grace & Co. (a)

410

10,779

 

300,416

Containers & Packaging - 0.9%

Rock-Tenn Co. Class A

2,166

79,449

Silgan Holdings, Inc.

2,159

113,002

 

192,451

Metals & Mining - 1.3%

Compass Minerals International, Inc.

1,372

95,038

Universal Stainless & Alloy Products, Inc. (a)

2,082

75,264

Worthington Industries, Inc.

5,101

89,778

 

260,080

Paper & Forest Products - 0.7%

Buckeye Technologies, Inc. (a)

5,526

50,894

Glatfelter

5,487

80,494

Mercer International, Inc. (SBI) (a)

2,294

14,016

 

145,404

TOTAL MATERIALS

898,351

TELECOMMUNICATION SERVICES - 2.2%

Diversified Telecommunication Services - 1.6%

Cincinnati Bell, Inc. (a)

26,963

105,156

Consolidated Communications Holdings, Inc.

3,279

49,546

Iowa Telecommunication Services, Inc.

4,354

80,070

NTELOS Holdings Corp.

3,514

104,542

 

339,314

Wireless Telecommunication Services - 0.6%

Syniverse Holdings, Inc. (a)

4,994

82,850

USA Mobility, Inc.

3,645

41,079

 

123,929

TOTAL TELECOMMUNICATION SERVICES

463,243

UTILITIES - 2.3%

Electric Utilities - 0.9%

Central Vermont Public Service Corp.

500

12,150

El Paso Electric Co. (a)

3,024

64,381

Common Stocks - continued

Shares

Value

UTILITIES - continued

Electric Utilities - continued

Portland General Electric Co.

3,577

$ 91,643

Westar Energy, Inc.

491

11,121

 

179,295

Gas Utilities - 0.7%

New Jersey Resources Corp.

767

27,750

Northwest Natural Gas Co.

835

40,690

Southwest Gas Corp.

420

12,747

WGL Holdings, Inc.

2,305

74,221

 

155,408

Independent Power Producers & Energy Traders - 0.1%

Black Hills Corp.

690

23,329

Multi-Utilities - 0.2%

Avista Corp.

2,321

51,758

Water Utilities - 0.4%

American States Water Co.

1,884

74,437

TOTAL UTILITIES

484,227

TOTAL COMMON STOCKS

(Cost $19,380,914)

19,590,812

U.S. Treasury Obligations - 0.6%

 

Principal Amount

 

U.S. Treasury Bills, yield at date of purchase 1.78% 9/25/08 (b)
(Cost $129,840)

$ 130,000

129,869

Money Market Funds - 4.2%

Shares

Value

Dreyfus Cash Management, 2.66% (c)
(Cost $882,614)

882,614

$ 882,614

TOTAL INVESTMENT PORTFOLIO - 98.3%

(Cost $20,393,368)

20,603,295

NET OTHER ASSETS - 1.7%

361,507

NET ASSETS - 100%

$ 20,964,802

Futures Contracts

Expiration Date

Underlying Face Amount at Value

Unrealized Appreciation/(Depreciation)

Purchased

Equity Index Contracts

17 CME E-mini Russell 2000 Index Contracts

Sept. 2008

$ 1,257,830

$ 41,590

 

The face value of futures purchased as a percentage of net assets - 6%

Legend

(a) Non-income producing

(b) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $129,869.

(c) The rate quoted is the annualized seven-day yield at period end.

Other Information

The following is a summary of the inputs used, as of August 31, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities

20,603,295

20,473,426

129,869

-

Other Financial Instruments*

41,590

41,590

-

-

*Other financial instruments include Futures Contracts.

Income Tax Information

The fund intends to elect to defer to its fiscal year ending February 28, 2009 approximately $68,445 of losses recognized during the period November 1, 2007 to February 29, 2008.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity Small Cap Enhanced Index Fund

Financial Statements

Statement of Assets and Liabilities

  

August 31, 2008 (Unaudited)

 

 

 

Assets

Investment in securities, at value - See accompanying schedule:

Unaffiliated issuers (cost $20,393,368)

 

$ 20,603,295

Receivable for fund shares sold

401,790

Dividends receivable

13,199

Interest receivable

4,209

Total assets

21,022,493

 

 

 

Liabilities

Payable for investments purchased

$ 41,317

Accrued management fee

7,560

Payable for daily variation on futures contracts

6,633

Other affiliated payables

2,181

Total liabilities

57,691

 

 

 

Net Assets

$ 20,964,802

Net Assets consist of:

 

Paid in capital

$ 21,001,171

Undistributed net investment income

43,412

Accumulated undistributed net realized gain (loss) on investments

(331,297)

Net unrealized appreciation (depreciation) on investments

251,516

Net Assets, for 2,214,225 shares outstanding

$ 20,964,802

Net Asset Value, offering price and redemption price per share ($20,964,802 ÷ 2,214,225 shares)

$ 9.47

Statement of Operations

 

Six months ended August 31, 2008 (Unaudited)

 

  

  

Investment Income

  

  

Dividends

 

$ 65,945

Interest

 

16,376

Total income

 

82,321

 

 

 

Expenses

Management fee

$ 28,713

Transfer agent fees

8,372

Independent trustees' compensation

458

Total expenses before reductions

37,543

Expense reductions

(7)

37,536

Net investment income (loss)

44,785

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

(210,627)

Futures contracts

(50,510)

Total net realized gain (loss)

 

(261,137)

Change in net unrealized appreciation (depreciation) on:

Investment securities

661,483

Futures contracts

44,622

Total change in net unrealized appreciation (depreciation)

 

706,105

Net gain (loss)

444,968

Net increase (decrease) in net assets resulting from operations

$ 489,753

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Statement of Changes in Net Assets

  

Six months ended August 31, 2008 (Unaudited)

For the period December 20, 2007 (commencement of operations) to
February 29, 2008

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 44,785

$ 12,670

Net realized gain (loss)

(261,137)

(70,893)

Change in net unrealized appreciation (depreciation)

706,105

(454,589)

Net increase (decrease) in net assets resulting from operations

489,753

(512,812)

Distributions to shareholders from net investment income

(13,310)

-

Share transactions
Proceeds from sales of shares

14,896,354

6,870,474

Reinvestment of distributions

12,941

-

Cost of shares redeemed

(767,843)

(15,000)

Net increase (decrease) in net assets resulting from share transactions

14,141,452

6,855,474

Redemption fees

4,020

225

Total increase (decrease) in net assets

14,621,915

6,342,887

 

 

 

Net Assets

Beginning of period

6,342,887

-

End of period (including undistributed net investment income of $43,412 and undistributed net investment income of $11,937, respectively)

$ 20,964,802

$ 6,342,887

Other Information

Shares

Sold

1,593,971

704,199

Issued in reinvestment of distributions

1,439

-

Redeemed

(83,730)

(1,654)

Net increase (decrease)

1,511,680

702,545

Financial Highlights

 

Six months ended August 31, 2008
Year ended February 29,
 
(Unaudited)
2008 E

Selected Per-Share Data

 

 

Net asset value, beginning of period

$ 9.03

$ 10.00

Income from Investment Operations

 

 

Net investment income (loss) D

  .04

.02

Net realized and unrealized gain (loss)

  .42

(.99)

Total from investment operations

  .46

(.97)

Distributions from net investment income

  (.02)

-

Redemption fees added to paid in capital D, G

  -

-

Net asset value, end of period

$ 9.47

$ 9.03

Total Return B, C

  5.05%

(9.70)%

Ratios to Average Net Assets F

 

 

Expenses before reductions

  .67% A

.67%A

Expenses net of fee waivers, if any

  .67%A

.67%A

Expenses net of all reductions

  .67%A

.67%A

Net investment income (loss)

  .80%A

1.19%A

Supplemental Data

 

 

Net assets, end of period (000 omitted)

$ 20,965

$ 6,343

Portfolio turnover rate

  147%A

16%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Calculated based on average shares outstanding during the period.

E For the period December 20, 2007 (commencement of operations) to February 29, 2008.

F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

G Amount represents less than $.01 per share.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity International Enhanced Index Fund

Investment Changes (Unaudited)

Geographic Diversification (% of fund's net assets)

As of August 31, 2008

fid40

Japan

19.2%

 

fid42

United Kingdom

17.4%

 

fid44

United States of America

14.6%

 

fid46

France

8.2%

 

fid48

Germany

7.8%

 

fid50

Switzerland

6.4%

 

fid52

Australia

4.5%

 

fid54

Spain

3.7%

 

fid56

Netherlands

2.4%

 

fid58

Other

15.8%

 

fid60

Percentages are adjusted for the effect of futures contracts, if applicable.

As of February 29, 2008

fid40

United Kingdom

20.4%

 

fid42

Japan

18.4%

 

fid44

Germany

9.6%

 

fid46

United States of America

9.4%

 

fid48

France

8.7%

 

fid50

Switzerland

5.8%

 

fid52

Australia

4.9%

 

fid54

Spain

3.4%

 

fid56

Italy

3.0%

 

fid58

Other

16.4%

 

fid72

Percentages are adjusted for the effect of futures contracts, if applicable.

Asset Allocation

 

% of fund's
net assets

% of fund's net assets
6 months ago

Investment Companies

1.4

4.1

Stocks and Equity Futures

98.3

96.2

Short-Term Investments and Net Other Assets

0.3

(0.3)

Percentages are adjusted for the effect of futures contracts, if applicable.

Top Ten Stocks as of August 31, 2008

 

% of fund's
net assets

% of fund's net assets
6 months ago

iShares MSCI EAFE Index ETF (United States of America, Investment Companies)

1.4

4.1

Novartis AG (Reg.) (Switzerland, Pharmaceuticals)

1.4

0.7

BP PLC (United Kingdom, Oil, Gas & Consumable Fuels)

1.2

1.3

Total SA Series B (France, Oil, Gas & Consumable Fuels)

1.1

1.2

HSBC Holdings PLC (United Kingdom) (Reg.) (United Kingdom, Commercial Banks)

1.1

1.1

Nestle SA (Reg.) (Switzerland, Food Products)

1.1

1.4

Telefonica SA (Spain, Diversified Telecommunication Services)

1.1

0.7

Vodafone Group PLC (United Kingdom, Wireless Telecommunication Services)

1.0

1.3

Toyota Motor Corp. (Japan, Automobiles)

0.9

1.0

BHP Billiton Ltd. (Australia, Metals & Mining)

0.9

0.9

 

11.2

Market Sectors as of August 31, 2008

 

% of fund's
net assets

% of fund's net assets
6 months ago

Financials

19.9

21.7

Industrials

10.6

10.4

Consumer Discretionary

10.0

9.7

Materials

9.1

8.9

Health Care

7.5

5.2

Energy

7.3

6.9

Consumer Staples

6.8

7.3

Telecommunication Services

5.5

5.7

Utilities

4.9

5.5

Information Technology

4.2

4.1

Semiannual Report

Fidelity International Enhanced Index Fund

Investments August 31, 2008 (Unaudited)

Showing Percentage of Net Assets

Common Stocks - 85.6%

Shares

Value

Australia - 4.5%

ASX Ltd.

506

$ 15,361

Australia & New Zealand Banking Group Ltd.

271

3,865

Babcock & Brown Ltd.

1,620

3,449

BHP Billiton Ltd.

2,778

97,551

Commonwealth Bank of Australia

1,000

36,403

Computershare Ltd.

2,662

20,683

CSL Ltd.

350

12,335

DEXUS Property Group unit

7,260

9,225

Incitec Pivot Ltd.

161

22,064

Leighton Holdings Ltd.

463

18,488

Macquarie Group Ltd.

352

13,309

National Australia Bank Ltd.

360

7,572

Newcrest Mining Ltd.

1,090

25,641

Qantas Airways Ltd.

4,787

13,891

Rio Tinto Ltd.

325

35,576

Santos Ltd.

500

8,628

Telstra Corp. Ltd.

8,790

32,828

Toll Holdings Ltd.

2,200

13,146

Virgin Blue Holdings Ltd.

2,200

1,086

Westpac Banking Corp.

294

5,944

Woodside Petroleum Ltd.

702

38,000

Woolworths Ltd.

2,255

54,906

TOTAL AUSTRALIA

489,951

Austria - 1.0%

Erste Bank AG

650

39,075

OMV AG

170

10,913

Raiffeisen International Bank Holding AG

250

27,502

Vienna Insurance Group

265

16,560

voestalpine AG

251

13,646

TOTAL AUSTRIA

107,696

Belgium - 0.8%

Colruyt NV

97

26,492

Fortis

772

10,736

KBC Groupe SA

228

21,764

Mobistar SA

225

16,714

Umicore SA

200

8,793

TOTAL BELGIUM

84,499

China - 0.3%

Tencent Holdings Ltd.

3,800

32,622

Denmark - 1.3%

Carlsberg AS Series B

300

26,643

East Asiatic Co. Ltd.

350

21,205

Novo Nordisk AS Series B

550

30,996

Sydbank AS

350

11,411

Vestas Wind Systems AS (a)

350

47,642

TOTAL DENMARK

137,897

Finland - 1.4%

Fortum Oyj

300

12,340

 

Shares

Value

KCI Konecranes Oyj

613

$ 20,332

Nokia Corp.

3,041

76,133

Outokumpu Oyj (A Shares)

370

8,912

Rautaruukki Oyj (K Shares)

420

14,337

Wartsila Corp.

322

18,587

TOTAL FINLAND

150,641

France - 8.2%

Accor SA

341

22,635

Aeroports de Paris

260

22,739

Atos Origin SA

100

5,395

AXA SA

1,047

33,405

BNP Paribas SA

491

44,282

Carrefour SA

200

10,600

Casino Guichard Perrachon et Compagnie

235

23,090

CNP Assurances

105

12,629

Credit Agricole SA

1,185

25,241

Dassault Systemes SA

130

7,880

Eurazeo SA

42

4,137

France Telecom SA

2,454

72,351

GDF Suez

1,322

76,409

Groupe Danone

45

3,142

Klepierre SA

325

13,011

L'Air Liquide SA

79

9,620

L'Oreal SA

21

2,092

Lafarge SA (Bearer)

212

25,694

Legrand SA

1,005

25,800

PagesJaunes Groupe SA

1,573

22,614

Peugeot Citroen SA

382

18,223

Sanofi-Aventis

704

49,942

SCOR SE

1,210

27,992

Societe Des Autoroutes Paris-Rhin-Rhone

207

17,967

Societe Generale Series A

228

22,108

Suez Environnement SA (a)

185

5,314

Technip SA

446

36,737

Total SA Series B

1,660

119,240

Unibail-Rodamco

210

43,778

Veolia Environnement

180

9,677

VINCI SA

121

6,896

Vivendi

1,650

63,997

TOTAL FRANCE

884,637

Germany - 7.8%

Adidas-Salomon AG

283

16,627

Allianz AG (Reg.)

310

51,635

Altana AG

1,407

22,498

BASF AG

1,270

73,366

Bayer AG

810

64,176

Bilfinger Berger AG

242

17,079

Commerzbank AG

773

22,781

Daimler AG (Reg.)

1,041

60,676

Deutsche Bank AG

146

12,398

Common Stocks - continued

Shares

Value

Germany - continued

Deutsche Boerse AG

309

$ 29,382

Deutsche Postbank AG

120

7,856

Deutsche Telekom AG (Reg.)

1,316

21,789

E.ON AG

1,626

95,053

GEA Group AG

427

13,467

MAN AG

254

24,909

Muenchener Rueckversicherungs-Gesellschaft AG (Reg.)

350

54,516

RWE AG

579

62,539

Salzgitter AG

167

25,747

SAP AG

138

7,732

Siemens AG (Reg.)

453

49,169

Thyssenkrupp AG

460

23,085

TUI AG

856

17,065

Volkswagen AG

145

43,392

Wacker Chemie AG

129

23,795

TOTAL GERMANY

840,732

Greece - 0.9%

Alpha Bank AE

560

14,360

Coca-Cola Hellenic Bottling Co. SA

785

19,231

Greek Organization of Football Prognostics SA

500

17,603

National Bank of Greece SA

618

27,469

Public Power Corp. of Greece

710

17,956

TOTAL GREECE

96,619

Hong Kong - 2.3%

Bank of East Asia Ltd.

4,800

19,158

BOC Hong Kong Holdings Ltd.

13,500

30,271

Citic International Financial Holdings Ltd. (a)

18,900

15,256

Esprit Holdings Ltd.

3,700

30,815

Hang Lung Group Ltd.

4,000

17,169

Hang Seng Bank Ltd.

2,100

41,733

Hong Kong Exchanges & Clearing Ltd.

1,000

13,069

Hutchison Whampoa Ltd.

3,000

28,041

Sun Hung Kai Properties Ltd.

2,495

34,398

Tingyi (Cayman Island) Holding Corp.

14,000

16,808

Wharf Holdings Ltd.

1,000

3,652

TOTAL HONG KONG

250,370

Ireland - 0.2%

Elan Corp. PLC (a)

120

1,623

Elan Corp. PLC (a)

140

1,909

Paddy Power PLC:

(Ireland)

848

19,879

(United Kingdom)

45

1,052

TOTAL IRELAND

24,463

Italy - 2.1%

A2A SpA

5,853

18,331

Assicurazioni Generali SpA

839

28,025

 

Shares

Value

Banca Carige SpA

5,869

$ 19,656

Enel SpA

1,016

9,352

ENI SpA

1,314

42,620

Fiat SpA

1,522

23,635

Intesa Sanpaolo SpA

2,124

11,444

Mediaset SpA

3,550

25,882

Mediobanca SpA

1,100

15,717

Telecom Italia SpA

806

1,296

UniCredit SpA

3,863

20,877

Unipol Gruppo Finanziario SpA

5,000

12,506

TOTAL ITALY

229,341

Japan - 19.2%

Aeon Co. Ltd.

500

5,735

Aisin Seiki Co. Ltd.

500

13,164

Alfresa Holdings Corp.

100

6,503

Asahi Glass Co. Ltd.

2,000

21,233

Astellas Pharma, Inc.

1,100

49,548

Canon, Inc.

1,100

49,330

Central Japan Ry Co.

4

41,553

Chuo Mitsui Trust Holdings, Inc.

4,000

22,054

Citizen Holdings Co. Ltd.

400

2,762

Daiichi Sankyo Co. Ltd.

600

18,052

Daiwa House Industry Co. Ltd.

2,000

19,654

Denso Corp.

800

20,740

Eisai Co. Ltd.

600

23,862

Fuji Electric Holdings Co. Ltd.

5,000

11,775

Fujifilm Holdings Corp.

900

24,766

Furukawa Electric Co. Ltd.

7,000

36,098

Hankyu Hanshin Holdings, Inc.

1,000

4,405

Hitachi Cable Ltd.

5,000

18,010

Hitachi Ltd.

4,000

29,461

Hokkaido Electric Power Co., Inc.

300

6,704

Hokuhoku Financial Group, Inc.

1,000

2,391

Honda Motor Co. Ltd.

1,200

38,975

Inpex Holdings, Inc.

2

21,779

Ishikawajima-Harima Heavy Industries Co. Ltd.

11,000

18,830

Itochu Corp.

4,000

32,181

Japan Tobacco, Inc.

6

28,477

JFE Holdings, Inc.

1,000

42,262

Kansai Electric Power Co., Inc.

900

22,086

KDDI Corp.

7

40,764

Kyushu Electric Power Co., Inc.

900

19,819

Leopalace21 Corp.

700

7,126

Makita Corp.

500

12,925

Matsushita Electric Industrial Co. Ltd.

2,000

41,110

Matsushita Electric Works Co. Ltd.

2,000

18,487

Mitsubishi Corp.

200

5,494

Mitsubishi Electric Corp.

4,000

33,925

Mitsubishi Materials Corp.

3,000

10,646

Mitsubishi UFJ Financial Group, Inc.

9,700

73,734

Mitsubishi UFJ Lease & Finance Co. Ltd.

610

21,358

Mitsui & Co. Ltd.

2,000

34,100

Common Stocks - continued

Shares

Value

Japan - continued

Mitsui O.S.K. Lines Ltd.

2,000

$ 23,705

Mizuho Financial Group, Inc.

15

63,857

Nidec Corp.

100

6,722

Nikon Corp.

2,000

64,915

Nintendo Co. Ltd.

150

73,320

Nippon Electric Glass Co. Ltd.

2,000

26,679

Nippon Mining Holdings, Inc.

1,000

5,555

Nippon Oil Corp.

3,000

18,712

Nippon Telegraph & Telephone Corp.

7

34,415

Nomura Real Estate Holdings, Inc.

900

18,445

NTT Data Corp.

5

20,524

NTT DoCoMo, Inc.

5

7,880

Olympus Corp.

2,000

64,983

Omron Corp.

100

1,758

ORIX Corp.

290

35,330

Osaka Gas Co. Ltd.

2,000

7,277

Resona Holdings, Inc.

10

11,640

Sankyo Co. Ltd. (Gunma)

200

9,470

Sanyo Electric Co. Ltd. (a)

15,000

29,910

Seiko Epson Corp.

300

8,655

Sekisui Chemical Co. Ltd.

3,000

18,581

Shikoku Electric Power Co., Inc.

500

13,357

Shin-Etsu Chemical Co. Ltd.

600

33,380

Showa Denko KK

4,000

10,635

Sompo Japan Insurance, Inc.

3,000

27,051

Sony Corp.

600

22,938

Sumitomo Corp.

2,500

31,148

Sumitomo Electric Industries Ltd.

2,500

28,690

Sumitomo Heavy Industries Ltd.

2,000

9,726

Sumitomo Metal Mining Co. Ltd.

500

6,371

Sumitomo Mitsui Financial Group, Inc.

9

54,491

Suzuki Motor Corp.

2,000

42,153

Takeda Pharmaceutical Co. Ltd.

1,300

67,916

TDK Corp.

300

17,380

Tokyo Electric Power Co.

200

5,706

Tokyu Land Corp.

3,000

12,657

Toshiba Corp.

3,000

16,734

Toyo Suisan Kaisha Ltd.

1,500

37,409

Toyota Motor Corp.

2,200

98,165

Yahoo! Japan Corp.

33

12,648

Yamazaki Baking Co. Ltd.

2,000

23,597

TOTAL JAPAN

2,076,363

Luxembourg - 0.5%

ArcelorMittal SA (France)

634

49,999

Netherlands - 2.4%

Akzo Nobel NV

484

29,650

EADS NV

1,330

29,910

Heineken Holding NV (A Shares)

538

23,921

ING Groep NV (Certificaten Van Aandelen)

769

23,956

Koninklijke Ahold NV

3,015

37,727

 

Shares

Value

Koninklijke KPN NV

950

$ 16,166

Koninklijke Philips Electronics NV

258

8,382

Reed Elsevier NV

1,950

32,696

Royal DSM NV

490

28,271

Unilever NV (Certificaten Van Aandelen)

959

26,511

TOTAL NETHERLANDS

257,190

Norway - 1.2%

DnB Nor ASA

2,000

23,270

Norsk Hydro ASA

1,000

10,695

Petroleum Geo-Services ASA (a)

800

17,296

StatoilHydro ASA

1,150

35,519

Telenor ASA

1,300

20,519

Yara International ASA

420

26,176

TOTAL NORWAY

133,475

Portugal - 0.6%

Banco Espirito Santo SA (BES) (Reg.)

810

10,480

Energias de Portugal SA

5,337

27,167

Portugal Telecom SGPS SA (Reg.)

2,710

28,385

TOTAL PORTUGAL

66,032

Singapore - 1.0%

CapitaLand Ltd.

2,000

6,182

Cosco Corp. Singapore Ltd.

6,000

9,738

Jardine Cycle & Carriage Ltd.

3,564

44,868

Keppel Corp. Ltd.

3,000

21,043

SembCorp Industries Ltd.

3,000

8,807

SembCorp Marine Ltd.

5,000

13,408

Singapore Airlines Ltd.

500

5,370

Singapore Exchange Ltd.

500

2,240

TOTAL SINGAPORE

111,656

Spain - 3.7%

Banco Bilbao Vizcaya Argentaria SA

2,596

43,801

Banco de Sabadell SA

600

4,683

Banco Santander SA

4,410

74,962

Corporacion Mapfre SA (Reg.)

3,745

17,964

EDP Renovaveis SA

60

613

Gamesa Corporacion Tecnologica, SA

409

19,421

Gas Natural SDG SA Series E

438

20,342

Gestevision Telecinco SA

300

3,873

Iberdrola SA

2,789

33,713

Repsol YPF SA

1,353

41,846

Telefonica SA

4,685

115,752

Union Fenosa SA

1,092

27,793

TOTAL SPAIN

404,763

Sweden - 2.0%

Alfa Laval AB

1,300

17,834

H&M Hennes & Mauritz AB (B Shares)

1,005

49,851

Investor AB (B Shares)

1,200

25,344

Nordea Bank AB

2,400

31,957

Scania AB (B Shares)

1,200

17,253

Common Stocks - continued

Shares

Value

Sweden - continued

Skandinaviska Enskilda Banken AB (A Shares)

700

$ 12,560

Swedbank AB (A Shares)

1,800

31,738

Telefonaktiebolaget LM Ericsson (B Shares)

200

2,283

TeliaSonera AB

4,500

31,459

TOTAL SWEDEN

220,279

Switzerland - 6.4%

ABB Ltd. (Reg.)

2,660

65,558

Baloise Holdings AG (Reg.)

40

3,433

Compagnie Financiere Richemont unit

553

32,315

Credit Suisse Group (Reg.)

297

13,775

EFG International

100

3,042

Holcim Ltd. (Reg.)

53

3,819

Julius Baer Holding AG

145

8,862

Logitech International SA (Reg.) (a)

400

10,663

Nestle SA (Reg.)

2,650

116,954

Novartis AG (Reg.)

2,630

146,507

Pargesa Holding SA

270

27,951

Roche Holding AG (participation certificate)

465

78,542

Sonova Holding AG

319

23,175

Swiss Life Holding AG

104

18,983

Swiss Reinsurance Co. (Reg.)

584

36,036

Syngenta AG (Switzerland)

47

12,610

The Swatch Group AG (Bearer)

35

8,264

UBS AG (For. Reg.)

1,134

24,648

Zurich Financial Services AG (Reg.)

209

54,755

TOTAL SWITZERLAND

689,892

United Kingdom - 17.4%

AMEC PLC

1,416

21,805

Anglo American PLC (United Kingdom)

1,500

80,149

Antofagasta PLC

2,250

25,402

AstraZeneca PLC sponsored ADR

667

32,483

Aviva PLC

3,010

28,223

BAE Systems PLC

5,160

45,137

Barclays PLC

2,795

17,880

BG Group PLC

4,020

89,305

BHP Billiton PLC

2,064

64,621

BP PLC

13,078

125,669

British American Tobacco PLC

2,004

67,687

British Land Co. PLC

1,107

15,443

BT Group PLC

1,294

4,060

Cadbury PLC

1,753

20,174

Capita Group PLC

1,320

17,031

Centrica PLC

6,324

37,715

Compass Group PLC

4,645

31,024

Davis Service Group PLC

3,089

19,196

De La Rue PLC

1,830

29,365

Diageo PLC

2,463

45,478

 

Shares

Value

GlaxoSmithKline PLC sponsored ADR

1,774

$ 83,325

HBOS PLC

955

5,495

HSBC Holdings PLC (United Kingdom) (Reg.)

7,470

117,509

Imperial Tobacco Group PLC

496

16,379

Johnson Matthey PLC

722

21,421

Land Securities Group PLC

1,050

26,024

Lloyds TSB Group PLC

1,387

7,678

Marks & Spencer Group PLC

2,122

10,142

National Express Group PLC Class L

1,075

20,374

National Grid PLC

800

10,417

NEXT PLC

743

14,366

Prudential PLC

663

6,621

Reckitt Benckiser Group PLC

1,163

58,900

Reed Elsevier PLC

2,702

30,751

Rio Tinto PLC (Reg.)

620

58,841

Royal Bank of Scotland Group PLC

16,696

71,427

Royal Dutch Shell PLC:

Class A (United Kingdom)

2,445

85,595

Class B

1,815

62,396

SABMiller PLC

226

4,864

Segro PLC

540

4,320

Smiths Group PLC

1,202

25,082

Stagecoach Group PLC

6,362

37,072

Standard Chartered PLC (United Kingdom)

1,649

44,807

Standard Life PLC

2,000

9,148

Tesco PLC

2,531

17,597

Tomkins PLC

6,358

17,235

Unilever PLC

214

5,739

United Business Media Ltd.

582

6,311

Vedanta Resources PLC

630

20,907

Vodafone Group PLC

44,460

113,591

William Morrison Supermarkets PLC

3,900

20,078

Xstrata PLC

625

34,922

TOTAL UNITED KINGDOM

1,887,181

United States of America - 0.4%

Synthes, Inc.

294

40,715

TOTAL COMMON STOCKS

(Cost $10,774,844)

9,267,013

Nonconvertible Preferred Stocks - 0.2%

 

 

 

 

Italy - 0.2%

Telecom Italia SpA (Risp)
(Cost $31,488)

15,131

19,300

Investment Companies - 1.4%

 

 

 

 

United States of America - 1.4%

iShares MSCI EAFE Index ETF
(Cost $162,260)

2,470

157,019

Government Obligations - 0.7%

 

Principal Amount

Value

United States of America - 0.7%

U.S. Treasury Bills, yield at date of purchase 1.78% 9/25/08 (b)
(Cost $79,902)

$ 80,000

$ 79,920

Money Market Funds - 10.9%

Shares

 

Dreyfus Cash Management, 2.66% (c)
(Cost $1,174,674)

1,174,674

1,174,674

TOTAL INVESTMENT PORTFOLIO - 98.8%

(Cost $12,223,168)

10,697,926

NET OTHER ASSETS - 1.2%

127,189

NET ASSETS - 100%

$ 10,825,115

Futures Contracts

Expiration Date

Underlying Face Amount at Value

Unrealized Appreciation/
(Depreciation)

Purchased

Equity Index Contracts

15 CME E-mini MSCI EAFE Index Contracts

Sept. 2008

$ 1,353,750

$ (113,140)

 

The face value of futures purchased as a percentage of net assets - 12.5%

Legend

(a) Non-income producing

(b) Security or a portion of the security was pledged to cover margin requirements for futures contracts. At the period end, the value of securities pledged amounted to $79,920.

(c) The rate quoted is the annualized seven-day yield at period end.

Other Information

The following is a summary of the inputs used, as of August 31, 2008, involving the Fund's assets carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the table below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description

Total

Level 1

Level 2

Level 3

Investments in Securities

10,697,926

6,707,671

3,990,255

-

Other Financial Instruments*

(113,140)

(113,140)

-

-

*Other financial instruments include Futures Contracts.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity International Enhanced Index Fund

Financial Statements

Statement of Assets and Liabilities

  

August 31, 2008 (Unaudited)

 

 

 

Assets

Investment in securities, at value - See accompanying schedule:

Unaffiliated issuers (cost $12,223,168)

 

$ 10,697,926

Foreign currency held at value (cost $73,480)

71,857

Receivable for fund shares sold

34,101

Dividends receivable

31,265

Interest receivable

2,479

Total assets

10,837,628

 

 

 

Liabilities

Payable for investments purchased

$ 410

Accrued management fee

4,172

Transfer agent fee payable

1,331

Payable for daily variation on futures contracts

6,600

Total liabilities

12,513

 

 

 

Net Assets

$ 10,825,115

Net Assets consist of:

 

Paid in capital

$ 12,542,851

Undistributed net investment income

177,891

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(254,233)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

(1,641,394)

Net Assets, for 1,301,452 shares outstanding

$ 10,825,115

Net Asset Value, offering price and redemption price per share ($10,825,115 ÷ 1,301,452 shares)

$ 8.32

Statement of Operations

 

Six months ended August 31, 2008 (Unaudited)

 

  

  

Investment Income

  

  

Dividends

 

$ 213,418

Interest

 

15,046

 

 

228,464

Less foreign taxes withheld

 

(19,775)

Total income

 

208,689

 

 

 

Expenses

Management fee

$ 22,875

Transfer agent fees

7,427

Independent trustees' compensation

433

Total expenses before reductions

30,735

Expense reductions

(2)

30,733

Net investment income (loss)

177,956

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

(29,941)

Foreign currency transactions

(11,067)

Futures contracts

(141,114)

Total net realized gain (loss)

 

(182,122)

Change in net unrealized appreciation (depreciation) on:

Investment securities

(1,218,405)

Assets and liabilities in foreign currencies

(3,712)

Futures contracts

(109,904)

Total change in net unrealized appreciation (depreciation)

 

(1,332,021)

Net gain (loss)

(1,514,143)

Net increase (decrease) in net assets resulting from operations

$ (1,336,187)

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Fidelity International Enhanced Index Fund
Financial Statements - continued

Statement of Changes in Net Assets

  

Six months ended August 31, 2008 (Unaudited)

For the period December 20, 2007 (commencement of operations) to
February 29, 2008

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 177,956

$ 18,521

Net realized gain (loss)

(182,122)

(62,818)

Change in net unrealized appreciation (depreciation)

(1,332,021)

(309,373)

Net increase (decrease) in net assets resulting from operations

(1,336,187)

(353,670)

Distributions to shareholders from net investment income

(18,586)

-

Distributions to shareholders from net realized gain

(9,293)

-

Total distributions

(27,879)

-

Share transactions
Proceeds from sales of shares

6,625,662

7,796,232

Reinvestment of distributions

27,221

-

Cost of shares redeemed

(1,737,062)

(169,952)

Net increase (decrease) in net assets resulting from share transactions

4,915,821

7,626,280

Redemption fees

100

650

Total increase (decrease) in net assets

3,551,855

7,273,260

 

 

 

Net Assets

Beginning of period

7,273,260

-

End of period (including undistributed net investment income of $177,891 and undistributed net investment income of $18,521, respectively)

$ 10,825,115

$ 7,273,260

Other Information

Shares

Sold

714,820

795,634

Issued in reinvestment of distributions

2,902

-

Redeemed

(193,754)

(18,150)

Net increase (decrease)

523,968

777,484

Financial Highlights

 

Six months ended August 31, 2008
Year ended February 29,
 
(Unaudited)
2008 E

Selected Per-Share Data

 

 

Net asset value, beginning of period

$ 9.35

$ 10.00

Income from Investment Operations

 

 

Net investment income (loss) D

  .16

.03

Net realized and unrealized gain (loss)

  (1.16)

(.68)

Total from investment operations

  (1.00)

(.65)

Distributions from net investment income

  (.02)

-

Distributions from net realized gain

  (.01)

-

Total distributions

  (.03)

-

Redemption fees added to paid in capital D, G

  -

-

Net asset value, end of period

$ 8.32

$ 9.35

Total Return B, C

  (10.73)%

(6.50)%

Ratios to Average Net Assets F

 

 

Expenses before reductions

  .62% A

.62%A

Expenses net of fee waivers, if any

  .62%A

.62%A

Expenses net of all reductions

  .62%A

.62%A

Net investment income (loss)

  3.58%A

1.58%A

Supplemental Data

 

 

Net assets, end of period (000 omitted)

$ 10,825

$ 7,273

Portfolio turnover rate

  45%A

15%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Calculated based on average shares outstanding during the period.

E For the period December 20, 2007 (commencement of operations) to February 29, 2008.

F Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.

G Amount represents less than $.01 per share.

See accompanying notes which are an integral part of the financial statements.

Semiannual Report

Notes to Financial Statements

For the period ended August 31, 2008 (Unaudited)

1. Organization.

Fidelity Large Cap Growth Enhanced Index Fund, Fidelity Large Cap Value Enhanced Index Fund, Fidelity Large Cap Core Enhanced Index Fund, Fidelity Mid Cap Enhanced Index Fund, Fidelity Small Cap Enhanced Index Fund and Fidelity International Enhanced Index Fund (the Funds) are funds of Fidelity Commonwealth Trust II (the trust) and are authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Delaware statutory trust.

2. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. The following summarizes the significant accounting policies of the Funds:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. Wherever possible, each Fund uses independent pricing services approved by the Board of Trustees to value their investments.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price. Futures contracts are valued at the settlement price established each day by the board of trade or exchange on which they are traded. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value.

When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality, and developments in foreign markets which are monitored by evaluating the performance of ADRs, futures contracts and exchange-traded funds. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value of securities used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Funds are subject to the provisions of Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" (SFAS 157), effective with the beginning of the Funds' fiscal year. SFAS 157 establishes a hierarchy that prioritizes the inputs to valuation techniques giving the highest priority to readily available unadjusted quoted prices in active markets for identical assets (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements) when market prices are not readily available or reliable. The three levels of the hierarchy under SFAS 157 are described below:

Level 1

Quoted prices in active markets for identical securities.

Level 2

Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk and others.

Level 3

Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment at the end of the period), unobservable inputs may be used. Unobservable inputs reflect the Fund's own assumptions about the factors market participants would use in pricing an investment, and would be based on the best information available.

Changes in valuation techniques may result in transfers in or out of an investment's assigned level within the hierarchy.

The aggregate value by input level, as of August 31, 2008, for each Fund's investments is included at the end of each Fund's Schedule of Investments.

Foreign Currency. Certain Funds may use foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

2. Significant Accounting Policies - continued

Investment Transactions and Income. For financial reporting purposes, the Funds' investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Funds are informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Funds estimate the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain.

Expenses. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. Each Fund is subject to the provisions of FASB Interpretation No. 48, Accounting for Uncertainties in Income Taxes (FIN 48). FIN 48 sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken in a tax return. The implementation of FIN 48 did not result in any unrecognized tax benefits in the accompanying financial statements. Each of the Funds' prior federal tax returns remains subject to examination by the Internal Revenue Service (IRS). Foreign taxes are provided for based on each Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, certain Funds claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to futures transactions, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investments and unrealized appreciation (depreciation) as of period end were as follows for each Fund:

 

Cost for Federal Income Tax Purposes

Unrealized Appreciation

Unrealized Depreciation

Net Unrealized Appreciation/
(Depreciation)

Fidelity Large Cap Growth Enhanced Index Fund

$ 32,713,612

$ 2,263,765

$ (2,961,879)

$ (698,114)

Fidelity Large Cap Value Enhanced Index Fund

35,461,307

1,171,736

(4,982,878)

(3,811,142)

Fidelity Large Cap Core Enhanced Index Fund

1,131,198,108

41,310,838

(131,303,332)

(89,992,494)

Fidelity Mid Cap Enhanced Index Fund

12,292,657

519,028

(1,081,482)

(562,454)

Fidelity Small Cap Enhanced Index Fund

20,399,709

1,281,333

(1,077,747)

203,586

Fidelity International Enhanced Index Fund

12,235,506

163,390

(1,700,970)

(1,537,580)

Short Term Trading (Redemption) Fees. Shares held in Fidelity Small Cap Enhanced Index Fund less than 90 days are subject to a redemption fee equal to 1.50% of the proceeds of the redeemed shares. Shares held in Fidelity Mid Cap Enhanced Index Fund and Fidelity International Enhanced Index Fund less than 30 days are subject to a redemption fee equal to 0.75% and 1.00%, respectively, of the proceeds of the redeemed shares. All redemption fees are retained by the Funds and accounted for as an addition to paid in capital.

New Accounting Pronouncement. In March 2008, Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities (SFAS 161), was issued and is effective for reporting periods beginning after November 15, 2008. SFAS 161 requires enhanced disclosures to provide information about the reasons the Funds invest in derivative instruments, the accounting treatment and the effect derivatives have on financial performance.

Semiannual Report

3. Operating Policies.

Futures Contracts. Certain Funds may use futures contracts to manage their exposure to the stock market. Buying futures tends to increase a fund's exposure to the underlying instrument, while selling futures tends to decrease a fund's exposure to the underlying instrument or hedge other fund investments. Upon entering into a futures contract, a fund is required to deposit with a clearing broker, no later than the following business day, an amount ("initial margin") equal to a certain percentage of the face value of the contract. The initial margin may be in the form of cash or securities and is transferred to a segregated account on settlement date. Subsequent payments ("variation margin") are made or received by a fund depending on the daily fluctuations in the value of the futures contract and are accounted for as unrealized gains or losses. Realized gains (losses) are recorded upon the expiration or closing of the futures contract. Securities deposited to meet margin requirements are identified in each applicable fund's Schedule of Investments. Futures contracts involve, to varying degrees, risk of loss in excess of any futures variation margin reflected in each applicable fund's Statement of Assets and Liabilities. The underlying face amount at value of any open futures contracts at period end is shown in each applicable fund's Schedule of Investments under the caption "Futures Contracts." This amount reflects each contract's exposure to the underlying instrument at period end. Losses may arise from changes in the value of the underlying instruments or if the counterparties do not perform under the contract's terms.

4. Purchases and Sales of Investments.

Purchases and sales of securities other than short-term securities, are noted in the table below.

 

Purchases ($)

Sales ($)

Fidelity Large Cap Growth Enhanced Index Fund

12,789,230

16,074,005

Fidelity Large Cap Value Enhanced Index Fund

17,272,947

9,537,700

Fidelity Large Cap Core Enhanced Index Fund

415,800,629

182,073,222

Fidelity Mid Cap Enhanced Index Fund

9,155,508

3,158,393

Fidelity Small Cap Enhanced Index Fund

21,831,395

8,062,707

Fidelity International Enhanced Index Fund

7,376,175

2,014,428

5. Fees and Other Transactions with Affiliates.

Management Fee and Expense Contract. Strategic Advisers®, Inc. (Strategic Advisers), an affiliate of FMR, provides the Funds with investment management related services. For these services, the Funds pay a monthly management fee to Strategic Advisers. Under the management contract, Strategic Advisers pays all other fund-level expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. The management fee paid to Strategic Advisers by the Funds is reduced by an amount equal to the fees and expenses paid by the Funds to the independent Trustees. Each Fund's management fee is equal to the following annual rate of average net assets:

Fidelity Large Cap Growth Enhanced Index Fund

.30%

Fidelity Large Cap Value Enhanced Index Fund

.30%

Fidelity Large Cap Core Enhanced Index Fund

.30%

Fidelity Mid Cap Enhanced Index Fund

.45%

Fidelity Small Cap Enhanced Index Fund

.52%

Fidelity International Enhanced Index Fund

.47%

In addition, under the expense contract, Strategic Advisers pays class-level expenses of each of the Funds so that the total expenses do not exceed certain amounts of each fund's average net assets with certain exceptions, as noted in the following table:

Fidelity Large Cap Growth Enhanced Index Fund

.45%

Fidelity Large Cap Value Enhanced Index Fund

.45%

Fidelity Large Cap Core Enhanced Index Fund

.45%

Fidelity Mid Cap Enhanced Index Fund

.60%

Fidelity Small Cap Enhanced Index Fund

.67%

Fidelity International Enhanced Index Fund

.62%

Semiannual Report

Notes to Financial Statements (Unaudited) - continued

5. Fees and Other Transactions with Affiliates - continued

Sub-Adviser. Geode® Capital Management, LLC (Geode), serves as sub-adviser for the Funds. Geode provides discretionary investment advisory services to the Funds and is paid by Strategic Advisers for providing these services.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the Funds' transfer, dividend disbursing and shareholder servicing agent. FIIOC receives account fees and asset-based fees that vary according to type of account. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. Under the expense contract, each fund paid transfer agent fees at the annualized rate of 0.15% of average net assets.

6. Investments in Fidelity Central Funds.

The Funds may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Schedule of Investments list each of the Fidelity Central Funds held at period end as an investment of each Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds.

The Fidelity Securities Lending Cash Central Fund seeks preservation of capital and current income and is managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the SEC's web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds are available on the SEC's web site or upon request.

7. Security Lending.

Certain Funds lend portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, each applicable Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount not less than 100% of the market value of the loaned securities during the period of the loan. The market value of the loaned securities is determined at the close of business of the Funds and any additional required collateral is delivered to the Funds on the next business day. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on each applicable Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented on each applicable Fund's Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to:

Fidelity Large Cap Growth Enhanced Index Fund

$ 665

Fidelity Large Cap Value Enhanced Index Fund

1,981

Fidelity Large Cap Core Enhanced Index Fund

26,424

8. Expense Reductions.

Through arrangements with each applicable Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.

 

Expense
reduction

 

 

Fidelity Large Cap Value Enhanced Index Fund

$ 12

Fidelity Large Cap Core Enhanced Index Fund

638

Fidelity Mid Cap Enhanced Index Fund

15

Fidelity Small Cap Enhanced Index Fund

7

Fidelity International Enhanced Index Fund

2

Semiannual Report

9. Other.

The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.

At the end of the period, FMR or its affiliates were owner of record of more than 10% of the outstanding shares of the following funds:

Fund

Affiliated %

 

 

Fidelity Large Cap Growth Enhanced Index Fund

15%

Fidelity Large Cap Value Enhanced Index Fund

14%

Fidelity Mid Cap Enhanced Index Fund

40%

Fidelity Small Cap Enhanced Index Fund

23%

Fidelity International Enhanced Index Fund

39%

Semiannual Report

Investment Adviser

Strategic Advisers, Inc.
Boston, MA

Investment Sub-Adviser

Geode Capital Management, LLC
Boston, MA

General Distributor

Fidelity Distributors Corporation
Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.
Boston, MA 

Fidelity Service Company, Inc.
Boston, MA 

Custodian

Mellon Bank, N.A.
Pittsburgh, PA

The Fidelity Telephone Connection

Mutual Fund 24-Hour Service

Exchanges/Redemptions
and Account Assistance 1-800-544-6666

Product Information 1-800-544-6666

Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)

TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)

Fidelity Automated Service
Telephone (FAST®) fid74 1-800-544-5555

fid74 Automated line for quickest service 

GEI-USAN-1008
1.855141.101

fid77

Item 2. Code of Ethics

Not applicable.

Item 3. Audit Committee Financial Expert

Not applicable.

Item 4. Principal Accountant Fees and Services

Not applicable.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Investments

(a) Not applicable.

(b) Not applicable

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

There were no material changes to the procedures by which shareholders may recommend nominees to the Fidelity Commonwealth Trust II's Board of Trustees.

Item 11. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the Fidelity Commonwealth Trust II's (the "Trust") disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the Trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(a)(ii) There was no change in the Trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust's internal control over financial reporting.

Item 12. Exhibits

(a)

(1)

Not applicable.

(a)

(2)

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)

(3)

Not applicable.

(b)

 

Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Fidelity Commonwealth Trust II

By:

/s/ Mark Osterheld

 

Mark Osterheld

 

President and Treasurer

 

 

Date:

October 29, 2008

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/ Mark Osterheld

 

Mark Osterheld

 

President and Treasurer

 

 

Date:

October 29, 2008

By:

/s/Jeffrey Christian

 

Jeffrey Christian

 

Chief Financial Officer

 

 

Date:

October 29, 2008