Fidelity's S&P Tracking Investment Option: A Smart Choice?

The Fidelity 500 Index Fund (FXAIX) tracks the S&P 500 index, which covers about 80% of the investable market capitalization of the U.S. equity market. The S&P 500 is widely regarded as a good addition to retirement portfolios because it is broadly diversified across all sectors and can withstand volatility due to its lack of focus on any one industry. The fund aims to provide results that align with the performance of common stocks publicly traded in the United States. As of November 27, 2023, the fund had assets totalling almost $407.60 billion invested in 508 different holdings. The fund has returned 10.14% over the past year, 10.35% over three years, 11.00% over five years, and 11.17% over the past decade. The fund has an expense ratio of 0.02%.

The Fidelity 500 Index Fund tracks the S&P 500 index

The Fidelity 500 Index Fund is an investment fund that tracks the S&P 500 index, which is considered one of the main benchmarks for US stocks. The S&P 500 index covers about 80% of the US equity market's investable market capitalization.

The fund seeks to replicate the performance of the S&P 500 Index, which includes 500 large common stocks traded in the US stock market. The fund invests a minimum of 80% of its assets in common stocks included in this index. As of November 27, 2023, the fund had assets of almost $407.60 billion invested in 508 different holdings.

The fund is managed by Geode Capital Management and has been in operation since October 2005. It has returned 10.14% over the past year, 10.35% over three years, 11.00% over five years, and 11.17% over the past decade.

The fund has an expense ratio of 0.02%, which is significantly lower than the category average of 0.85%. However, it is important to note that index funds are subject to the volatility of the stock market, and the performance of the fund may vary from the index it tracks due to transaction costs and additional fees.

Overall, the Fidelity 500 Index Fund offers investors a way to diversify their portfolios across all sectors and mitigate the risk associated with focusing on a single industry.

FXAIX is the code for the Fidelity 500 Index Fund

The Fidelity 500 Index Fund is a good option for investors looking to track the performance of the S&P 500 index. The fund is managed by Geode Capital Management and seeks to replicate the performance of the S&P 500, investing at least 80% of its assets in common stocks included in the index. As of November 27, 2023, the fund had assets totaling almost $407.6 billion invested in 508 different holdings. The fund's expense ratio is 0.02%, which is lower than the category average of 0.85%.

The fund can be a core large-cap holding in an investor's portfolio and is recommended by many experts as a good addition to retirement portfolios due to its broad diversification across all sectors and ability to withstand volatility.

The fund has returned 10-11% over the past year, 3 years, 5 years and 10 years

The Fidelity 500 Index Fund has demonstrated strong and consistent returns over the past year, three years, five years, and ten years, ranging from 10.14% to 11.17%. As of 27 November 2023, the fund had assets totalling almost $407.60 billion invested in 508 different holdings. The fund's performance over the years has been as follows:

• 10.14% over the past year
• 10.35% over the past three years
• 11.00% over the past five years
• 11.17% over the past decade

The fund, which launched in October 2005, is managed by Geode Capital Management and seeks to replicate the performance of the S&P 500 Index, representing the performance of 500 large common stocks traded in the US stock market. The fund's consistent returns make it an attractive option for investors seeking long-term growth opportunities.

The fund has an expense ratio of 0.02%

The Fidelity 500 Index Fund (FXAIX) is an investment choice that tracks the S&P 500 index. The fund has an expense ratio of 0.02%, which is significantly lower than the category average of 0.85%. This low-cost structure, coupled with no minimums on the initial investment, makes FXAIX a competitive option for investors interested in tracking the S&P 500 index.

The expense ratio of 0.02% means that investors are charged $0.20 for every $1000 invested in the fund. This is an extremely low fee compared to similar funds in the market. For example, the average expense ratio for large blend funds is 0.5%, which is 25 times higher than that of the Fidelity 500 Index Fund.

The low expense ratio of the Fidelity 500 Index Fund can be attributed to its passive management style. As an index fund, it seeks to replicate the performance of the S&P 500 Index by investing at least 80% of its assets in common stocks included in this index. The fund's passive management style also means that it may have lower performance than actively managed funds, as transaction costs and additional fees can impact its returns.

The fund has a strong performance history, returning 10.14% over the past year, 10.35% over three years, 11.00% over five years, and 11.17% over the past decade. With assets totaling almost $407.60 billion invested in 508 different holdings as of November 27, 2023, the Fidelity 500 Index Fund is a well-established and diversified investment choice for those looking to track the S&P 500.

The fund is passively managed

The Fidelity 500 Index Fund is passively managed. This means that the fund is not actively managed by a fund manager, but instead tracks the performance of the S&P 500 index, which represents the performance of 500 large common stocks traded in the U.S. stock market.

The fund's goal is to replicate the performance of the S&P 500 Index, which is one of the main benchmarks for U.S. stocks. The index covers about 80% of the investable market capitalization of the U.S. equity market and is widely regarded as a good addition to retirement portfolios due to its broad diversification across all sectors.

As a passively managed fund, the performance of the Fidelity 500 Index Fund could be lower than that of an actively managed fund. The fund's performance may also vary from the index it tracks due to transaction costs, additional fees, and other factors.

The fund has a low expense ratio of 0.02%, compared to a category average of 0.85%. This low-cost structure, coupled with no minimums on the initial investment, makes the Fidelity 500 Index Fund a cost-effective option for investors interested in tracking the S&P 500 index.

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