Fidelity Australian High Conviction Active ETF Details May 2026 Holdings: BHP and CBA Comprise Over 30% of Portfolio

BHP Group and Commonwealth Bank Dominate FHCO Portfolio with 17% and 13.3% Allocations

As of 31 May 2026, the Fidelity Australian High Conviction Active ETF's largest holdings are BHP Group Limited at 17.0% and Commonwealth Bank of Australia at 13.3%, cumulatively accounting for just over 30% of the fund’s total exposure. This concentration reflects a high-conviction investment approach, where the portfolio manager opts for significant overweight positions in companies expected to deliver superior risk-adjusted returns relative to the broader Australian equity market.

BHP Group’s leading position underscores its status as Australia’s largest listed company by market capitalization and its role as a globally diversified miner with substantial exposure to iron ore, copper, and other commodities. Commonwealth Bank of Australia, known as Australia’s most profitable retail bank, anchors the financial sector allocation. Together, these holdings indicate that FIL Responsible Entity (Australia) Limited maintained a portfolio strongly tilted towards resources and financials through the end of May 2026.

National Australia Bank, Macquarie Group, and Goodman Group Complete the Top Five Holdings

National Australia Bank Ltd holds the third-largest position at 8.6%, with Macquarie Group Ltd close behind at 8.3%, bringing the combined financial sector exposure among the top four holdings to approximately 43.2%. The inclusion of both NAB, a traditional retail bank, and Macquarie Group, a diversified global financial services firm, reflects broad confidence in the Australian financial sector’s prospects rather than a narrow banking focus.

Goodman Group, an ASX-listed industrial property and logistics real estate investment trust, rounds out the top five with a 6.6% weighting. Its presence alongside major banks and BHP adds a real assets component to the portfolio. Goodman’s significant global exposure to data centers and logistics positions it as one of the more growth-oriented top holdings. Together, the top five holdings represent roughly 53.8% of the fund, highlighting the concentrated nature of the strategy.

Mid-Tier Holdings Include QBE Insurance, Northern Star, and Lynas Rare Earths

Beyond the top five, the fund holds notable positions in QBE Insurance Group Ltd at 5.0%, Northern Star Resources Ltd at 4.5%, and Lynas Rare Earths Ltd at 3.9%. QBE provides diversified insurance sector exposure complementing the banking holdings. Northern Star, Australia’s largest gold miner, and Lynas Rare Earths, the only major rare earths producer outside China, contribute significant allocations to the resources and critical minerals theme.

Lynas Rare Earths represents a distinctive high-conviction investment due to its unique role in the global rare earth supply chain and the geopolitical emphasis on securing non-Chinese sources of critical materials. Holding Lynas alongside Northern Star suggests the portfolio manager seeks both defensive commodity exposure and strategic thematic positioning within the resources segment.

Industrials and Consumer Defensive Exposure from Orica, Ventia, and Woolworths

Orica Ltd, a global explosives and blasting services provider, is held at 3.8%, while Ventia Services Group Pty Ltd, an infrastructure services company operating mainly in Australia and New Zealand, is included at 3.0%. These positions add an industrials dimension that complements the resources and financials tilt, with both companies generating revenue from mining and infrastructure sectors.

Woolworths Group Ltd, at 2.9%, provides consumer staples exposure and adds defensive earnings quality to the portfolio. Combined, Orica, Ventia, and Woolworths account for approximately 9.7% of the fund, illustrating the strategy’s balance between cyclical and stable, cash-generative businesses.

Smaller Technology and Growth Holdings Include TechnologyOne, WiseTech Global, and REA Group

The portfolio contains a selection of Australian technology and growth stocks at modest weights compared to financials and resources. TechnologyOne Limited is allocated 2.1%, WiseTech Global Ltd 1.5%, and REA Group Ltd 1.4%, collectively representing about 5.0% of the fund. This indicates the manager retains exposure to the Australian technology sector without the same conviction as in dominant resource and financial holdings.

Car Group Ltd, formerly carsales.com, is held at 2.6%, adding a digital automotive marketplace to the technology-adjacent exposure. These digital and software companies provide the portfolio with earnings growth potential and exposure to Australia’s structural shift toward technology-enabled services.

Healthcare Exposure Limited to Cochlear and Pro Medicus

The healthcare sector has a relatively small presence in the FHCO portfolio as of 31 May 2026. Cochlear Ltd, a global hearing implant manufacturer and prominent Australian healthcare exporter, is held at 1.3%. Pro Medicus Ltd, a radiology software company and recent ASX standout, is included at 0.5%. Together, these healthcare positions make up approximately 1.8% of the fund.

The modest healthcare allocation may reflect a deliberate underweighting of a sector that has traded at elevated valuations, particularly for Pro Medicus, or a preference for higher conviction opportunities elsewhere. No specific commentary on sector allocation rationale was provided in the announcement.

Charter Hall Real Estate and Iress Add Diversification Across Property and Fintech

The fund holds two Charter Hall positions: Charter Hall Retail REIT at 1.8% and Charter Hall Group Stapled at 1.3%, totaling roughly 3.1% exposure. This dual investment in both the fund manager and a retail property vehicle suggests a strategic approach to Australian real estate, combining asset manager leverage with REIT income characteristics.

Iress Ltd, a financial technology company offering trading, market data, and financial planning software, is held at 1.7%. Having undergone significant restructuring, Iress’s inclusion at this weight implies the portfolio manager sees value in its repositioned business model. No forward guidance or individual holding commentary was disclosed.

Smaller Conviction Positions Include Judo Capital, Santos, and Universal Store

Judo Capital Holdings Ltd, an ASX-listed business bank focused on SMEs, and Santos Ltd, a major Australian oil and gas producer, each hold 1.7% of the fund. Universal Store Holdings Ltd, a specialty retail apparel chain, rounds out this group at 1.1%. These positions add layers to the financial sector exposure, energy commodity exposure, and small-cap consumer discretionary exposure respectively.

Judo Capital complements the major banks NAB and CBA by offering growth-oriented financial sector exposure. Santos provides energy sector diversification distinct from mining, while Universal Store represents a small-cap consumer retail conviction at the portfolio’s margins.

Zip Co, Steadfast Group, and Minimal Holdings in Salt Lake Potash and Southern Cross Payments

Zip Co Ltd, a buy-now-pay-later and consumer finance firm, and Steadfast Group Ltd, a general insurance broker network, each represent 0.9% of the portfolio. These smaller positions add approximately 1.8% of additional financial sector-related exposure and reflect lower conviction or more speculative bets consistent with the fund’s high-conviction framework, where position size correlates with manager confidence.

Salt Lake Potash Ltd and Southern Cross Payments Ltd are listed at 0.0% weight, indicating residual or legacy holdings that may not have been fully exited or are too small to register above zero in reporting. The fund held 2.6% uninvested cash as of May 2026, maintaining a liquidity buffer.

Implications of the May 2026 FHCO Portfolio Disclosure for Investors

The monthly portfolio disclosure by FIL Responsible Entity (Australia) Limited, mandated for active ETFs on the ASX, enhances transparency around underlying holdings. For current and prospective FHCO investors, the May 2026 report confirms a portfolio heavily concentrated in Australia’s largest and most liquid equity segments—primarily major banks, BHP, and large-cap industrials—while selectively maintaining exposure to technology, healthcare, and emerging financial services.

Investors should monitor upcoming disclosures for changes in the sizing of top holdings, especially BHP and Commonwealth Bank, which together constitute nearly one-third of the fund. Shifts away from resources or financials or increased allocations to technology or healthcare would indicate evolving macro or sector convictions by the manager. The immediate market impact of this disclosure was not evident from public sources. The responsible entity advises that the information was prepared without considering individual investor objectives or financial circumstances, and investors should consult the relevant Product Disclosure Statement before making investment decisions.