Fidelity's Investment Strategy: Mirroring The Snp Performance

Fidelity is a well-rounded brokerage with a range of investment options. It offers no commissions on stock or ETF trades and a selection of no-expense-ratio index funds suited to both beginner and active investors. The company has a strong reputation for its mutual funds, with a large selection of no-transaction-fee funds, including its Fidelity Zero index funds, which have no expense ratio and no minimum investment requirement. These investor-friendly practices save customers a lot of money.

Fidelity also offers a substantial selection of bonds, including FDIC-insured CDs and bond funds, and over 100,000 individual bonds, such as corporate, municipal and government bonds. In addition, investors can trade stocks, mutual funds, ETFs, options, forex and three cryptocurrencies: Bitcoin, Ethereum and Litecoin.

Fidelity's investment options are enhanced by its strong customer service and highly-rated mobile app, making it a good choice for anyone looking for a flexible, low-cost brokerage.

Fidelity's mutual funds

Fidelity is a world leader in mutual funds with over 70 years of experience in the business. The company offers a wide range of mutual funds that cover all asset classes, from domestic equity to specialized sectors, allowing investors to find the right mix of funds to achieve their strategic investment goals.

One of the key advantages of Fidelity's mutual funds is the lack of minimum investment requirements, making them accessible to new and young investors. Additionally, Fidelity offers $0 transaction fees for its funds, allowing investors to buy and sell without worrying about added costs eating into their returns.

Fidelity also offers zero-expense-ratio index mutual funds, which allow investors to invest effectively free of charge, whether they seek exposure to U.S. or international stocks. The company's extensive global network of analysts and one of the largest research departments in the industry further enhance the appeal of Fidelity's mutual funds.

• Fidelity 500 Index Fund (FXAIX)
• Fidelity ZERO Large Cap Index Fund (FNILX)
• Fidelity Total Market Index Fund (FSKAX)
• Fidelity ZERO Total Market Index Fund (FZROX)
• Fidelity ZERO International Index Fund (FZILX)
• Fidelity Large Cap Growth Index Fund (FSPGX)
• Fidelity Real Estate Index Fund (FSRNX)

Fidelity's stock and bond index funds

The Fidelity ZERO Large Cap Index Fund (FNILX) seeks to provide investment results that correspond to the total return of a broad range of large-capitalization US companies. This fund has a 0% expense ratio and no minimum investment requirement. Similarly, the Fidelity ZERO Extended Market Index Fund (FZIPX) aims to provide returns corresponding to a broad range of mid- to small-capitalization US companies, also with no expenses or minimum investment. The Fidelity ZERO Total Market Index Fund (FZROX) offers investment results mirroring a wide range of publicly traded US companies, again with no expenses or minimum investment.

Fidelity also offers international stock index funds, such as the Fidelity ZERO International Index Fund (FZILX), which seeks to provide returns corresponding to foreign developed and emerging stocks, with a 0% expense ratio and no minimum investment. The Fidelity U.S. Bond Index Fund (FXNAX) is another option, with a focus on intermediate core bonds and a low expense ratio of 0.025%.

In addition to these funds, Fidelity provides a range of other domestic and international stock and bond index funds, allowing investors to choose based on their specific investment goals and preferences. With their experience, competitive expenses, and diverse product offerings, Fidelity's stock and bond index funds present a compelling option for investors seeking to mirror market indexes while enjoying the benefits of index investing.

Fidelity's sector ETFs

• Communication services
• Consumer discretionary
• Consumer staples
• Energy
• Financials
• Health care
• Industrials
• Information technology
• Materials
• Real estate
• Utilities

The cost of investing in large industry sectors (e.g., health care or energy) is generally less than the cost associated with more concentrated industries (e.g., oil service or nanotechnology). Historically, different industry sectors have exhibited different risk/reward characteristics. The technology sector tends to be the most volatile, while the utility sector is typically the least volatile.

Additionally, a diversified sector portfolio can be created using sector ETFs to mimic the overall stock market, allowing investors to fine-tune their portfolio to match their risk tolerance. However, industry sector ETFs tend to cost more than style ETFs, and there is research indicating that portfolios weighted towards small-cap stocks and value strategies tend to outperform the market.

Fidelity's zero-fee index funds

Fidelity offers a range of zero-fee index funds, which are index mutual funds with zero expense ratios and no minimum investment. These funds are designed to mirror the performance of a particular market index, such as the S&P 500, and do not aim to outperform the index. Here is a detailed overview of Fidelity's zero-fee index funds:

Fidelity® ZERO Large Cap Index Fund (FNILX)

This fund seeks to provide investment results that correspond to the total return of a broad range of large-capitalization U.S. companies. It has a 0% expense ratio and no minimum investment requirement.

Fidelity® ZERO Extended Market Index Fund (FZIPX)

The FZIPX fund aims to provide investment results that match the total return of mid- to small-capitalization U.S. companies across a diverse range of sectors. Like the FNILX fund, it also has a 0% expense ratio and no minimum investment.

Fidelity® ZERO Total Market Index Fund (FZROX)

The FZROX fund seeks to provide investment results that correspond to the total return of a broad range of publicly traded companies in the US. It covers a wide spectrum of companies, from large-cap to small-cap, offering investors exposure to various sectors of the US market. This fund also features a 0% expense ratio and no minimum investment requirement.

Fidelity® ZERO International Index Fund (FZILX)

The FZILX fund focuses on international markets, aiming to provide investment results that match the total return of foreign developed and emerging stocks. With a 0% expense ratio and no minimum investment, this fund offers investors a cost-effective way to gain exposure to international markets.

Fidelity's customer service

Fidelity offers 24/7 customer service to its clients. Customers can get in touch with the company through a variety of methods, including:

• A Virtual Assistant, which is an automated natural language search engine that helps customers find information on the Fidelity website.
• Live chat with the support team, available Monday to Friday from 8 am to 10 pm ET, and on weekends from 9 am to 4 pm ET.
• Phone, with specific phone numbers provided for different departments, such as 401(k), health savings, and college planning.
• Social media channels, including Reddit, Facebook, Twitter, Instagram, Discord, and YouTube.
• In-person meetings with a dedicated advisor to help build a financial plan.
• The Learning Center, which offers articles and videos on a range of financial topics.

Fidelity also provides a list of mailing addresses and phone numbers for customers to reach the right team for their specific needs.

Frequently asked questions