Index funds are known for being generally low-cost investments that offer instant diversification. So they may work for investors who don’t have much time or know-how to carefully pick individual stocks for their own portfolios.
Fidelity Investments, one of the country’s largest brokerage firms, is known for offering some of the most competitive index funds on the market. So let’s take a look at some of the best Fidelity index funds for investors today.
Fidelity 500 Index Fund
Net assets: $540.14 billion
Expense ratio: 0.015%
Lifetime quarter-end average annual return: 10.90%
The Fidelity 500 currently has a Morningstar rating of 5/5 stars. It aims to mimic the performance of the S&P 500, an index that contains the largest and highest performing companies in the U.S. It’s also considered a general indicator of the general stock market. The historic average return of the S&P 500 is around 10%.
The Fidelity 500’s average three-year annual return clocks in at 9.55% And the five-year average annual return stands at 15.79%.
Fidelity Mid Cap Index Fund
Net assets: $34.47 billion
Expense ratio: 0.025%
Lifetime quarter-end average annual return: 12.52%
The Fidelity Mid Cap Index Fund tracks the Russell Midcap Index, which contains the 800 smallest companies within the Russell 1000. It currently holds a Morningstar rating of ⅘ stars.
This type of fund can complement portfolios that already have exposure to large companies, leaving room for firms with potential to become those large companies. It holds an impressive one-year average annual return of 23.11% and a 10-year average annual return of 9.47%.
Fidelity U.S. Bond Index Fund
Net assets: $56.53 billion
Expense ratio: 0.025%
Lifetime quarter-end average annual return: 5.04%
The Fidelity U.S. Bond Index Fund tracks the Bloomberg U.S. Aggregate Bond Index, which is designed to reflect the investment-grade U.S. bond market. This could add diversification to a stock-heavy portfolio.
It has a Morningstar rating of ⅗ stars. While its average three-year annual return is -3.12%, its average 10-year return is 1.22%.
Fidelity Multi-Asset Index Fund
Net assets: $8.17 billion
Expense ratio: 0.11%
Lifetime quarter-end average annual return: 6.29%
The Fidelity Multi-Asset Index Fund holds a mix of both domestic and international stocks and bonds. This can add worldwide exposure and diversification to your portfolio.
This fund currently has a Morningstar rating of ⅘ stars. It has a five-year average annual return of 10.19%.
Fidelity Small Cap Index Fund
Net assets: $25.92 billion
Expense ratio: 0.025%
Lifetime quarter-end average annual return: 10.95%
Many small companies have potential too. And the Fidelity Small Cap Index Fund could offer exposure to these firms. The fund tracks the Russell 2000, which contains the smallest stocks in the Russell Index. While investing in small firms can come with a certain degree of risk, this fund could give you exposure to some of tomorrow’s key players.
The Fidelity Small Cap Index Fund has an average annual 10-year return of 7.82% and a one-year return of 20.19%. It holds a current Morningstar rating of ⅗ stars.
Why we covered this
Fidelity index funds offer instant diversification and many come with very low expense ratios which could mean you keep more of your returns. To help you build a portfolio using Fidelity funds, we developed a guide to our take on the best Fidelity Index Funds today.
If you want to learn more about Fidelity, check out our regularly-updated list of Fidelity Investments guides, news, and coverage.
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Author: Javier Simon
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