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Best Fidelity Index Funds to Invest In: Diversified Portfolio Options

September 5, 2023 by JoyAnswer.org, Category : Finance

What are some of the best fidelity index funds to invest in?Explore some of the best Fidelity index funds to consider for building a diversified investment portfolio, based on performance and goals.


Best Fidelity Index Funds to Invest In: Diversified Portfolio Options

What are some of the best fidelity index funds to invest in?

Investing in index funds can be a smart and cost-effective way to build a diversified investment portfolio. Fidelity Investments offers a range of index funds that can help you achieve diversification across various asset classes. Below, we'll explore some of the best Fidelity index funds for building a diversified portfolio.

1. Fidelity Total Market Index Fund (FSKAX):

  • This fund aims to replicate the performance of the entire U.S. stock market, providing exposure to both large-cap and small-cap stocks.
  • It's an excellent core holding for U.S. equity exposure.

2. Fidelity 500 Index Fund (FXAIX):

  • This fund tracks the S&P 500 Index, which includes 500 of the largest U.S. companies.
  • It's a great choice for investors looking for exposure to large-cap U.S. stocks.

3. Fidelity Extended Market Index Fund (FSMAX):

  • This fund complements the Fidelity Total Market Index Fund by providing exposure to mid-cap and small-cap U.S. stocks not included in the S&P 500.
  • It helps achieve broader market coverage.

4. Fidelity International Index Fund (FSIIX):

  • For international diversification, this fund tracks the MSCI EAFE Index, which includes large and mid-cap stocks from developed markets outside the U.S.
  • It's a good option for adding international equity exposure.

5. Fidelity Emerging Markets Index Fund (FPADX):

  • Investors seeking exposure to emerging market equities can consider this fund, which tracks the MSCI Emerging Markets Index.
  • It provides diversification in developing economies.

6. Fidelity U.S. Bond Index Fund (FXNAX):

  • To include fixed income in your portfolio, this fund tracks the Bloomberg Barclays U.S. Aggregate Bond Index.
  • It offers diversification in the U.S. bond market.

7. Fidelity U.S. Treasury Bond Index Fund (FNBGX):

  • If you prefer a focus on U.S. Treasury securities, this fund tracks the Bloomberg Barclays U.S. Treasury Index.
  • It provides exposure to U.S. government bonds.

8. Fidelity Real Estate Index Fund (FSRVX):

  • For real estate exposure, this fund tracks the performance of the Dow Jones U.S. Select REIT Index.
  • It can be a way to diversify into real estate investment trusts (REITs).

9. Fidelity ESG Index Fund (ESGV):

  • For socially responsible investing, this fund tracks an ESG (Environmental, Social, Governance) index.
  • It aligns with ethical and sustainable investment principles.

10. Fidelity Global ex U.S. Index Fund (FSGGX):- This fund provides exposure to global equities, excluding U.S. companies.- It can help diversify your portfolio beyond U.S. borders.

Remember that while index funds offer diversification, you should still consider your investment goals, risk tolerance, and time horizon when constructing your portfolio. It's often a good idea to consult with a financial advisor or do thorough research to ensure that your investment choices align with your financial objectives. Additionally, expense ratios and fees should be taken into account when selecting index funds, as lower fees can improve your overall returns over time.

Tags Fidelity Index Funds , Investment Recommendations

People also ask

  • What is the best index fund at Fidelity?

    At Fidelity, the index fund of choice to get broad U.S. bond exposure is FXNAX (ER 0.025%). If you use ETFs, the commission-free iShares ETF is AGG (ER 0.05%). The third component of the classic three-fund portfolio is international stocks. You have four great international stock index fund options at Fidelity.
    Explore Fidelity's top index fund options for investors. Learn about the features, performance, and benefits of various index funds offered by Fidelity Investments. ...Continue reading

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