Fidelity Target Date Funds Expense Ratio Guide

Fidelity's Fidelity Freedom Funds have an expense ratio range of 0.015% to 0.35%, depending on the specific fund.

These funds are designed to automatically adjust their asset allocation as you get closer to retirement, making them a low-maintenance option for investors.

The expense ratio for Fidelity Freedom 2060 Fund is 0.035%, which is relatively low compared to other target date funds.

This low expense ratio can help you keep more of your hard-earned money, rather than paying high fees to investment managers.

Fidelity Freedom Blend 2040 has an expense ratio of 0.49%, which is 28% lower than its category average.

High portfolio turnover can result in higher expenses and lower after-tax returns, but Fidelity Freedom Blend 2040 has a relatively low portfolio turnover rate of 15%.

The average portfolio turnover rate for the Target-Date 2040 category is 24%, indicating that Fidelity Freedom Blend 2040 holds its assets for a longer period.

In January 2025, Fidelity Freedom Blend 2040 returned 3.2%, earning it a grade of B compared to the Target-Date 2040 category's average return of 2.9%.

Fidelity Freedom Blend 2040's expense ratio grade is a B, indicating that it is average compared to funds in the Target-Date 2040 category.

Active management normally comes with higher expense ratios than passive index management, which is why it's essential to compare fund expense ratios against the category averages for meaningful assessments.

Fidelity Freedom Blend 2040's low expense ratio makes it an attractive option for investors looking to minimize their costs and maximize their returns.