best fidelity index funds

Top Fidelity Index Funds: Get Your Slice of the Market Pie

When it comes to growing your hard-earned money, Fidelity Investments is like the crème de la crème of investment brokerages. And their index funds are the cream of the crop, offering a broad and easy way to invest in the entire stock market or a specific sector. Just like a slice of pizza, these funds give you a taste of the whole pie, without the hassle of picking and choosing individual stocks.

Top-Notch Index Funds: Fidelity’s Best Bets

Fidelity has a whole smorgasbord of index funds to choose from. Here are the top performers that’ll give you the biggest bang for your buck:

Fidelity 500 Index Fund (FXAIX)

If you’re looking for a slice of the S&P 500’s success story, this fund is your ticket. It’s like having a slice of the biggest pizza in town, with exposure to 500 of the biggest companies in the US. Over the past decade, it’s been growing like a weed, delivering an average return of over 10% per year.

Imagine this: you’re at a party and everyone’s eating slices of pizza. The FXAIX is like the VIP guest, getting the biggest slice and savoring every bite. It’s a no-brainer for anyone who wants to tap into the US stock market’s growth potential.

But hold your horses, there’s more to a good index fund than just performance. FXAIX is also a low-cost option, with an expense ratio of just 0.02%. That means more money in your pocket and less going to the fund managers. It’s like getting a pizza with extra toppings for the same price. Who doesn’t love a bargain?

Investing in FXAIX is like having a personal financial genie. It gives you access to the growth of the entire S&P 500, without the hassle of picking and choosing individual stocks. Just kick back, relax, and watch your money grow like a well-watered garden.

So, if you’re ready to get a slice of the US stock market’s success story, Fidelity 500 Index Fund (FXAIX) is the way to go. It’s like having a secret weapon in your investment portfolio, giving you the potential to grow your money while you sleep.

Best Fidelity Index Funds

If you’re in the market for an index fund that can help you build wealth over the long haul, you may want to consider Fidelity. Fidelity offers a wide range of index funds that track a variety of market indexes, from the S&P 500 to international markets. And because Fidelity is a low-cost provider, you can keep more of your hard-earned money working for you.

Here are a few of the best Fidelity index funds to consider:

Fees and Expenses

When choosing an index fund, it’s critical to think about fees and costs. These costs can eat into your returns over time, so it’s important to choose a fund with low fees. Fidelity index funds typically have low expense ratios, which can help to maximize returns over time. For example, the Fidelity 500 Index Fund has an expense ratio of just 0.015%, which means that you would pay just $1.50 for every $10,000 invested in the fund each year.

In contrast, some actively managed funds can have expense ratios of 1% or more. How much of a difference would that make over time? Let’s say you’re investing $10,000 per year and earning an 8% return. With a 0.015% expense ratio, you would have $185,914 after 20 years. With a 1% expense ratio, you would have $167,308. That’s a difference of more than $18,000!

Diversification

Another important factor to consider when choosing an index fund is diversification. Diversification is simply the practice of investing in a variety of assets to reduce risk. Fidelity index funds offer a high degree of diversification, which can help to reduce your risk of losing money. For example, the Fidelity 500 Index Fund invests in 500 of the largest companies in the United States. That means that your money is spread across a wide range of industries and sectors.

Long-Term Performance

When evaluating index funds, it’s important to look at their long-term performance. Fidelity index funds have a strong track record of outperforming their peers. For example, the Fidelity 500 Index Fund has outperformed the S&P 500 Index by an average of 0.5% per year over the past 10 years.