A Simple Guide To Investing In Fidelity's Low-Cost Index Funds

Index funds are a popular investment option, offering ownership of a wide variety of stocks, greater diversification, and lower risk at a low cost. Fidelity index funds are no exception, offering some of the lowest prices in the industry, 24/7 customer service, and a wide range of choices. With a 0% expense ratio and no minimum investment, Fidelity's ZERO Large Cap Index Fund (FNILX) is a great option for investors looking for a broadly diversified index fund to serve as a core holding in their portfolio. For investors seeking a more tailored risk profile, Fidelity offers a range of other index funds, including the Mid Cap Index Fund (FSMDX) and the Small Cap Index Fund (FSSNX). With its diverse offerings, Fidelity has a low-cost index fund for every investor.

Fidelity ZERO Large Cap Index Fund (FNILX)

FNILX is a large-blend fund with a Morningstar Risk Rating that is average for its category. It has a 0% expense ratio and no minimum investment, meaning there are no minimums to open an account or to invest in FNILX. The fund's goal is to provide investment results that correspond to the total return of a broad range of large-capitalization U.S. companies. As of August 31, 2024, the fund's total assets were 11.0 billion USD, and the NAV / 1-Day Return was 20.68 / +0.73%.

To invest in the Fidelity ZERO Large Cap Index Fund (FNILX), you will need to open a Fidelity brokerage account if you don't already have one. You can do this through the Fidelity website or mobile app. Once you have a brokerage account, you can purchase shares of the fund. Remember to consider all important factors when investing, including fund fees, features, and objectives.

Fidelity ZERO Extended Market Index Fund (FZIPX)

The Fidelity ZERO Extended Market Index Fund (FZIPX) seeks to provide investment results that correspond to the total return of stocks of mid to small capitalization US companies. It invests in stocks included in the Fidelity US Extended Investable Market Index, which is float-adjusted and market cap-weighted to reflect the performance of US mid and small-cap stocks. The fund has a 0% expense ratio and no minimum investment amount.

Fidelity has been managing index funds for 30 years and is focused on tracking benchmark performance and delivering results that clients expect. They offer 24/7 customer service online or by phone and were named Barron's Best Online Broker in 2016, 2017, and 2018.

Before investing in any mutual fund or exchange-traded fund, be sure to review the fund's investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information, and read it carefully.

Fidelity ZERO Total Market Index Fund (FZROX)

FZROX seeks to provide investment results that correspond to the total return of a broad range of publicly traded companies in the US. It has a 0% expense ratio and no minimum investment, meaning that investors can buy shares without having to meet a minimum threshold. As of 1 October 2024, FZROX had a Morningstar Medalist Rating of Gold, with a 1-day return of -0.95% and total assets of 23.8 billion. The fund's share class type is No Load, and it has a low distribution fee level.

Fidelity ZERO International Index Fund (FZILX)

The Fidelity ZERO International Index Fund (FZILX) is an international index fund that offers investors exposure to a wide range of foreign developed and emerging stock markets. The fund seeks to provide investment results that correspond to the total return of these non-U.S. stocks, by investing primarily in securities included in the Fidelity Global ex U.S. Index and depositary receipts representing securities included in the index.

FZILX is a large blend fund with a Morningstar Medalist Rating of Gold as of August 31, 2024. This rating is based on the fund's sensible and clearly defined performance objective, strong management team, and low distribution fee level. The fund has returned 13.03% over the past year, 3.49% over the past three years, and 3.89% over the past five years.

FZILX has a 0% expense ratio and no minimum investment requirement, making it accessible to a wide range of investors. It is part of the suite of Fidelity ZERO index funds, which also includes the ZERO Large Cap Index Fund (FNILX), ZERO Extended Market Index Fund (FZIPX), and ZERO Total Market Index Fund (FZROX).

FZILX provides a low-cost, diversified investment option for investors seeking exposure to international stock markets. The fund's performance objective is to mirror the activity of the Fidelity Global ex U.S. Index, and it is not intended to outperform this index.

Fidelity 500 Index Fund (FXAIX)

The Fidelity 500 Index Fund (FXAIX) is an investment fund that tracks the S&P 500 index, a major benchmark for US stocks. The fund was launched in October 2005 and has since grown to include assets totalling almost $407.60 billion invested in 508 different holdings as of November 27, 2023. The fund has consistently returned strong percentages over the past year, three years, five years, and decade.

The FXAIX fund is passively managed and seeks to provide investment results that correspond to the performance of common stocks publicly traded in the United States. The fund has an expense ratio of 0.02%, which is significantly lower than the category average of 0.85%. This low expense ratio is a key feature of Fidelity's index funds, which offer some of the lowest prices in the industry.

FXAIX is managed by Geode Capital Management, led by a team of five managers. The team includes Louis Bottari, Peter Matthew, Deane Gyllenhaal, Robert Regan, and Payal Kapoor Gupta, who joined in 2019 following the retirement of longtime manager Patrick Waddell.

The fund can be a core large-cap holding in an investment portfolio. It is designed to replicate the performance of the S&P 500 Index, investing at least 80% of its assets in common stocks included in this index. The S&P 500 is known for its broad diversification across all sectors, which helps it withstand volatility by not focusing on any single industry.

Overall, the Fidelity 500 Index Fund (FXAIX) offers investors a low-cost, diversified option to track the performance of the US stock market, making it a good choice for long-term investors.

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