Fidelity Nasdaq Composite Index ETF: A Comprehensive Guide

The Fidelity Nasdaq Composite Index ETF is a popular investment option for those looking to tap into the growth of the tech sector. It tracks the Nasdaq Composite Index, which includes over 3,000 stocks.

This ETF is designed to provide broad exposure to the Nasdaq market, with a basket of stocks representing a wide range of industries. The fund is managed by Fidelity, a well-established and reputable investment company.

The Fidelity Nasdaq Composite Index ETF has a low expense ratio, making it an attractive option for cost-conscious investors.

The Fidelity Nasdaq Composite Index ETF is a great option for investors looking for a low-cost way to track the Nasdaq Composite Index. Its expense ratio is 0.29%, which is 71% lower than its category average.

This low expense ratio translates to higher returns for investors, as high annual expense ratios can reduce your rate of return. In the month of December 2024, the fund returned 0.5%, earning it a grade of A in the Large Growth category.

The fund's low expense ratio is a major advantage, especially compared to active management funds that often come with higher expense ratios. Portfolio turnover is also relatively low, at 5%, which means the fund holds its assets for around 0.2 years.

This low portfolio turnover rate helps keep expenses down and can lead to more consistent returns. The fund's recent return of 0.5% in December 2024 is a great example of this, beating the Large Growth category average return of -1.2%.

The Fidelity Nasdaq Composite Index ETF is a passively managed U.S. Equity Large Growth exchange-traded fund (ETF). It was launched in 2003 by Fidelity Investments.

The ETF tracks the performance of the Nasdaq Composite Index, which has 2835 securities in its portfolio. The top 10 holdings constitute 56.8% of the fund's assets.

Fidelity Nasdaq Composite Index ETF is a diversified fund that meets the SEC requirement. It is not considered to have an ESG focus with its investment selection and management.

The ETF has 3.3% of its portfolio invested in foreign issues, with 96.7% allocated to domestic stock. It does not hold any bonds, preferred stocks, or cash.

The Fidelity Nasdaq Composite Index ETF is a low-cost and efficient way to invest in the Nasdaq Composite Index.

The Fidelity Nasdaq Composite Index ETF has an impressive expense ratio of 0.29%, which is 71% lower than its category average. This makes the fund's expense ratio grade an A.

High annual expense ratios can significantly reduce your rate of return, and excessive fees can be difficult to overcome.

A low portfolio turnover rate of 5% indicates that the fund holds its assets for a relatively long period, resulting in lower expenses and potentially higher aftertax returns.

In the month of December 2024, the fund returned 0.5%, earning it a grade of A, as the Large Growth category had an average return of -1.2%.

The fund's A grade indicates that its return is in the highest 20% for that time period compared to all funds in the Large Growth category.

The Fidelity Nasdaq Composite Index ETF has a long history, dating back to 2001. It was created to track the Nasdaq Composite Index, which includes over 3,000 stocks listed on the Nasdaq exchange.

The index is market-capitalization-weighted, meaning that larger companies have a greater impact on its performance. This weightage is updated daily to reflect changes in the market.

The ETF has been in existence for over two decades, giving investors a chance to participate in the growth of the tech-heavy Nasdaq market. Its performance has been relatively stable over the years, with some fluctuations during economic downturns.

The Nasdaq Composite Index has historically been more volatile than the S&P 500, but it has also provided higher returns over the long term. This is due to the index's focus on growth stocks, which tend to be more sensitive to market conditions.

Since its inception, the Fidelity Nasdaq Composite Index ETF has attracted a significant following among investors seeking exposure to the tech sector. Its low expense ratio and ability to track the Nasdaq Composite Index make it an attractive option for those looking to invest in this market.