Fidelity Index Funds Performance Review and Comparison

Fidelity Index Funds have consistently delivered strong returns over the years, making them a popular choice among investors.

The Fidelity 500 Index Fund has a 10-year average annual return of 13.4%, outperforming the S&P 500 Index.

One of the key factors contributing to the fund's success is its low expense ratio of 0.015%, which is significantly lower than many actively managed funds.

This low cost has allowed investors to keep more of their returns, resulting in higher net returns over time.

Fidelity's Total Stock Market Index Fund has also been a top performer, with a 10-year average annual return of 12.3%.

Fidelity index funds offer low costs due to their passively managed approach, which enables companies to keep operating expenses low and translate into lower fees for investors.

You might get lucky for a year or two, but it's unlikely you'll be the next Warren Buffett.

Index funds provide diversification by including hundreds or even thousands of stocks or bonds across various sectors and sizes, reducing the risk of any one stock derailing your portfolio's performance.

Two-thirds of actively managed funds underperform an index fund, according to Princeton finance professor Burton Malkiel.

Standard & Poor's annual reports show that index funds consistently outperform actively managed funds.

Index funds can offer a more reliable and stable investment option compared to actively managed funds.

Index funds can also provide a wide range of exposure to various sectors and sizes, making them a great option for investors looking to diversify their portfolio.

Fidelity Index Funds are a great option for investors looking to diversify their portfolio and keep costs low. They offer a wide range of funds that track various indexes, such as the MSCI EAFE Index.

One of the key benefits of Fidelity Index Funds is their low cost. The Fidelity International Index Fund, for example, has an expense ratio of just 0.04%. This is significantly lower than actively managed funds, which often come with higher fees.

Index funds also provide diversification, which can help reduce the risk of any one stock derailing your portfolio's performance. The Fidelity International Index Fund, for instance, holds over 750 stocks across 16 countries, including pharmaceutical giants like Novo Nordisk and AstraZeneca.

Here are some key facts about the Fidelity International Index Fund:

The fund's top three countries by weighting are Japan, the U.K., and France, with Europe accounting for two-thirds of the fund's exposure. The top three sectors are financials, industrials, and healthcare.

Overall, Fidelity Index Funds are a great option for investors looking to keep costs low and diversify their portfolio.

When comparing Fidelity index funds, tax efficiency is a crucial aspect to consider. According to a reader's comment, VOO is slightly more tax efficient than FXAIX, but the difference is not drastic.

Tax loss harvesting is a feature that allows investors to sell securities at a loss and buy similar ones at a lower cost, reducing tax liability. On Fidelity, ETFs like VOO can be used for tax loss harvesting in seconds, whereas mutual funds like FXAIX have a settlement period overnight.

The cost difference between FNILX and FXAIX is notable, with FNILX having lower fees. However, FXAIX has an edge in long-term performance. The two funds have similar holdings, making the decision between them a close call.

Here's a brief comparison of the two funds:

Ultimately, the choice between FNILX and FXAIX depends on individual investment goals and preferences. Some investors might consider splitting their investment between the two funds, as suggested by an article author.

Fidelity index funds are known for their low cost due to their passive management approach, which keeps operating expenses low and translates into lower fees for investors.

The performance of Fidelity index funds is comparable to that of actively managed funds, with about two-thirds of active managers underperforming an index fund each year.

One of the key benefits of index funds is their diversification, which reduces the risk of any one stock derailing your portfolio's performance by including hundreds or even thousands of stocks or bonds across a range of sectors and sizes.

Here are the annual returns for Fidelity index funds from 2020 to 2025:

Please remember that past performance is not a guide to future returns.

The S&P 1500 Composite Stock Market ETF is a large blend fund that tracks the performance of the S&P Composite 1500 Index.

It has $9.3 billion in assets under management and a dividend yield of 1.3%. The ETF uses a sampling strategy, which means it doesn't have to buy all of the stocks in the index; it only has to replicate its performance.

SPTM has 1,510 holdings, with an average stock having estimated earnings growth of 14.6% for the next three to five years. The average P/E ratio is 26.6, a P/B ratio of 4.4, and a weighted average market cap of $968.1 billion.

The top 10 holdings account for around 33% of its $9.3 billion net assets and include mega-cap stocks like Apple, Nvidia, Microsoft, Amazon.com, and Meta Platforms.

Its sector weightings are dominated by technology (30.5%), financials (13.7%), and healthcare (11%).

Here are the key statistics for the S&P 1500 Composite Stock Market ETF:

Morningstar gives the ETF a four-star rating over three-, five-, and 10-year periods, with an annualized return from inception of 8.1%.

We've taken a close look at the Fidelity Index World fund, and our analysis is based on the latest data available. The fund's investment objective is to achieve long-term capital growth by closely matching the performance of the MSCI World Index.

The fund's portfolio composition is quite similar to that of FXAIX and VOO, with a nearly identical composition of their top 10 holdings. In fact, the top 10 holdings for FXAIX and VOO account for 30.76% and 30.75% of the portfolios, respectively.

One of the key benefits of index funds is their low cost. As we mentioned earlier, FXAIX has an expense ratio of 0.02%, which is slightly lower than VOO's 0.03% expense ratio. This may not seem like a big difference, but it can add up over time.

Index funds also offer diversification, which can reduce the risk of any one stock derailing your portfolio's performance. As we saw in the portfolio composition comparison, FXAIX and VOO have a similar diversification strategy, with each category falling within less than 1% of the other.

Tax efficiency is another important consideration when it comes to index funds. While both FXAIX and VOO are efficient, VOO is slightly more tax-efficient since it generates less capital gains. This can be a significant advantage for investors who are looking to minimize their tax liability.

Ultimately, the choice between FXAIX and VOO will depend on your individual investment goals and preferences. Both funds have their strengths and weaknesses, and it's essential to consider these factors before making a decision.

Here's a brief comparison of the two funds:

As you can see, the difference in expense ratios between the two funds is marginal, but VOO's slightly higher tax efficiency may be a deciding factor for some investors.

When comparing the performance of VOO and FXAIX, we can see that they have similar returns, with the largest difference in annual total returns being only 0.05% from 2014 to 2022.

VOO and FXAIX have consistently similar annual total returns, with FXAIX slightly outperforming VOO in most years. For example, in 2021, FXAIX returned 28.69%, while VOO returned 28.66%.

The difference in dividend yield between VOO and FXAIX is slightly larger than the difference in total returns. Since 2013, FXAIX has outperformed VOO in 7 out of 11 years, with an average outperformance of 0.50% between 2015 and 2017.

Here's a comparison of the cumulative total returns of VOO and FXAIX:

As you can see, the cumulative total returns of VOO and FXAIX are very similar, with FXAIX slightly outperforming VOO in most years.

It's worth noting that the difference in dividend yield between VOO and FXAIX is relatively small, but it's larger than the difference in total returns. If you're looking for a fund with a slightly higher dividend yield, FXAIX might be a good option.

Trading and liquidity are crucial aspects to consider when choosing between VOO and FXAIX. VOO is more tradable and liquid compared to FXAIX because it can be bought and sold throughout the day at any time during market hours.

One drawback of trading ETFs like VOO is that they typically trade at prices slightly different from their Net Asset Value (NAV), resulting in a bid-ask spread. This means you'll likely pay a premium compared to the actual market value.

FXAIX, on the other hand, can only be traded at the end of the day based on NAV, making it less liquid compared to VOO. However, it offers the benefit of dollar cost-averaging rules to automate your investing.

The choice between VOO and FXAIX depends on your investment style and strategy. If you're an investor who likes to trade daily or change positions frequently, VOO is the better option.

Investing in Fidelity index funds can be a great way to grow your wealth over time. Both VOO and FXAIX offer similar returns as the S&P 500 by investing in a large blend of approximately 500 common stocks.

The choice between VOO and FXAIX depends on your investment strategy and preferred trading preference. VOO offers more trading flexibility, allowing you to buy and sell when the market is open, whereas FXAIX might be a better option if you prefer to buy and hold.

If you already have a brokerage account with one firm, it might be best to invest in the option that aligns with your current portfolio for ease of use and tracking. This can make managing your investments much simpler and more efficient.

The S&P 500 Dividend Aristocrats ETF is a great option for those looking to invest in a diversified portfolio of large-cap value stocks. It tracks the performance of the S&P 500 Dividend Aristocrats Index, which includes 67 companies that have increased their annual dividends for at least 25 consecutive years.

The index fund invests in all 67 eligible stocks, with a weighted average market cap of $102.5 billion. The top two sectors by weighting are consumer staples (24.2%) and industrials (23.3%). The fund's expenses are 0.35%.

The S&P 500 Dividend Aristocrats Index is reconstituted yearly in January and rebalanced four times in January, April, July, and October. The U.S. accounts for 93.6% of the portfolio, with the U.K. (3.2%), Ireland (1.6%), and Switzerland (1.6%) accounting for the rest.

Here are the key statistics for the ProShares S&P 500 Dividend Aristocrats ETF:

The fund's five-year annualized total return (price plus dividends) is 10.7%, trailing both the S&P 500 and its large-cap value peers. Morningstar gives NOBL a four-star ranking for its performance over the past five years.

The Schwab US Small-Cap ETF (SCHA) is a great option for investors looking to tap into the small-cap market. It tracks the performance of the Dow Jones U.S. Small-Cap Total Stock Market Index, a subset of the Dow Jones U.S. Total Stock Market Index.

With around 1,750 holdings, SCHA provides a diversified portfolio that's hard to beat. The ETF has a portfolio turnover of 12%, which is relatively low, indicating that the fund's managers are holding onto their positions for a while.

SCHA was launched in November 2009, and has since provided an annualized return of 11.6%. This is slightly better than the S&P 500's 10.6% annualized return over the same time frame.

The ETF's expenses are a mere 0.04%, making it a very cost-effective option for investors. This low expense ratio can add up to significant savings over time.

Here are the top 3 sectors by weighting in the SCHA ETF:

The top 10 holdings in the ETF account for less than 3% of its $18.2 billion in net assets, making it a well-diversified portfolio.

If you're considering investing in FSKAX, you should know that it has a slightly higher expense ratio compared to FZROX.

FSKAX is a more diversified portfolio, which can be beneficial for investors who want to spread their risk.

However, FZROX has higher returns, making it a better choice for investors who prioritize performance.

Ultimately, the decision between FSKAX and FZROX comes down to your individual investment goals and preferences.

Here are some key differences between the two funds:

It's worth noting that FSKAX and FZROX are both excellent tax-loss harvesting partners, especially if you're investing in a taxable account at Fidelity.

You may also want to consider starting with FZROX due to its higher returns, but it's essential to evaluate your own investment strategy and goals before making a decision.