Fidelity Total Market Index ETF Investing Guide

The Fidelity Total Market Index ETF is a low-cost, broad-based ETF that tracks the CRSP US Total Market Index, which includes over 7,000 stocks, making it a great option for those looking to invest in the entire US stock market.

This ETF has an expense ratio of 0.015%, which is significantly lower than many actively managed funds.

By investing in the Fidelity Total Market Index ETF, you'll get exposure to the entire US stock market, including large-cap, mid-cap, and small-cap stocks.

The ETF's low costs and broad diversification make it an attractive option for long-term investors.

Fidelity Total Market Index ETF is a type of investment fund that tracks a broad range of U.S. stocks. It was launched by Fidelity Investments in 2018.

The fund is passively managed, meaning it doesn't try to beat the market through active trading. It invests at least 80% of its assets in common stocks included in the Fidelity U.S. Total Investable Market Index℠.

This index is designed to reflect the performance of the U.S. equity market, including large-, mid- and small-capitalization stocks. It's a float-adjusted market capitalization-weighted index, which means it weights its holdings based on the market value of the companies.

The investment seeks to provide investment results that correspond to the total return of a broad range of U.S. stocks.

Index funds are a passive management strategy that try to match the performance of a market index by buying stocks of every firm listed on it. They don't try to beat the market or earn higher returns compared to market averages.

Actively managed funds often underperform the market, while index funds match it. Only 40% of actively managed funds beat or matched the returns of the S&P 500 in 2023, according to SPIVA.

The Fidelity Total Market Index ETF is a low-cost investment option that tracks the performance of the S&P Total Market Index. It seeks to provide long-term growth by investing in a broad range of U.S. companies, from large to small.

Index funds are a type of investment that tries to match the performance of a specific market index, rather than trying to beat it.

These funds are considered passive management strategies, which means they don't require active decision-making about which investments to buy or sell.

Index funds are designed to be less volatile than individual stocks, making them a good option for balancing risk in a portfolio.

By tracking a broad market index, index funds can provide diversification and reduce the impact of market swings.

This passive approach can help investors avoid making emotional or impulsive investment decisions, which can be a major advantage in the long run.

Investing in Fidelity Total Market Index ETF can be a smart move for your portfolio. According to SPIVA, only 40% of actively managed funds beat or matched the returns of the S&P 500 in 2023.

Actively managed funds often underperform the market, while index funds match it. This is because fund managers rarely beat the market, and even if they do, it's highly unlikely they'll continue to do so over the long term.

Index funds like Fidelity Total Market Index ETF are passively managed, meaning they track a specific market index rather than trying to beat it. This approach typically brings investors better returns over the long term and costs less, as fees for actively managed investments tend to be higher.

One of the key benefits of investing in an index fund is its efficiency. Fidelity Total Market Index ETF has a low management fee combined with the tax efficiency of an ETF, making it a great option for investors looking to minimize their costs.

If you're looking to invest in the US stock market, Fidelity Total Market Index ETF is a great choice. It seeks to track the performance of the S&P Total Market Index, which is composed of some US companies ranging from large to small.

To give you a better idea of the types of indices available, here are some examples:

By investing in Fidelity Total Market Index ETF, you can target long-term growth and use it as the core of your portfolio.

The Fidelity Total Market Index ETF holds a large-cap blend portfolio, with some of its top 10 holdings making up about 28% of the fund as of the fourth quarter, 2024. These holdings include tech giants like Apple, Microsoft, and NVIDIA.

Here are the top 10 holdings of the Fidelity Total Market Index ETF:

Vanguard Total Stock Market Index Admiral Shares is a large-cap blend fund, as evidenced by its top 10 holdings, which make up about 30% of the fund as of the fourth quarter, 2024.

The fund's top holdings include Apple, Inc., Microsoft Corp., and NVIDIA, which collectively account for over 16% of the fund's total holdings.

Apple, Inc. (AAPL) is the largest holding in VTSAX, making up 6.14% of the fund.

Microsoft Corp. (MSFT) is the second-largest holding, accounting for 5.71% of the fund.

Here are the top 10 holdings in VTSAX, along with their respective percentages:

The Fidelity Total Market Index ETF holds a diverse range of stocks, making it a great option for investors looking to track the entire US equity market.

The top 10 holdings of the Fidelity Total Market Index ETF are similar to those of other total stock market index funds, with a significant portion of the portfolio allocated to large-cap stocks.

As of the fourth quarter of 2024, the top 10 holdings of the Fidelity Total Market Index ETF comprise about 28% of the portfolio, with Apple being the largest holding at 6.3% of the total.

Here are the top 10 holdings of the Fidelity Total Market Index ETF as of the fourth quarter of 2024:

These holdings are similar to those of other total stock market index funds, such as the Schwab Total Stock Market Index (SWTSX), which also holds a significant portion of its assets in large-cap stocks.

The MSCI Consumer Discretionary index is a benchmark for tracking the performance of consumer discretionary companies in the US market.

Fidelity's FDIS ETF tracks this index, specifically the MSCI USA IMI Consumer Discretionary 25/50 Index.

This index is a subset of the MSCI USA IMI Index, which is a comprehensive benchmark for the US market.

The MSCI USA IMI Consumer Discretionary 25/50 Index is designed to represent the performance of the consumer discretionary sector in the US market.

In this index, 25% of the stocks are from the largest companies and 50% are from the smaller ones, providing a balanced representation of the sector.

The Fidelity Total Market Index ETF has a very low expense ratio of 0.00%, which is 100% lower than its category average. This makes it a cost-effective option for investors.

The expense ratio measures how much of a fund's assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. This fund's low expense ratio is a significant advantage over actively managed funds and funds in the Large Blend category.

Fidelity ZERO Total Market Index has a portfolio turnover rate of 2%, indicating that it holds its assets for around 0.5 years, which is significantly lower than the average portfolio turnover of 44% for the Large Blend category.

The Fidelity ZERO Total Market Index expense ratio is remarkably low at 0.00%, which is 100% lower than its category average, making the fund expense ratio grade an A. This is a huge advantage for investors, as high annual expense ratios can reduce your rate of return.

In comparison, the average portfolio turnover rate for the Large Blend category is 44%, whereas Fidelity ZERO Total Market Index has a turnover rate of 2%, indicating that it holds its assets for around 0.5 years. This suggests that the fund is managed with a long-term perspective.

High portfolio turnover can translate to higher expenses and lower after-tax returns, so it's great to see that Fidelity ZERO Total Market Index has a low turnover rate. This, combined with its low expense ratio, makes it an attractive option for investors.

Here's a comparison of Fidelity ZERO Total Market Index with its category average:

As you can see, Fidelity ZERO Total Market Index has a significantly lower expense ratio and portfolio turnover rate compared to its category average. This suggests that the fund is well-managed and focused on providing long-term returns to its investors.

In December 2024, Fidelity ZERO Total Market Index returned -3.0%, earning it a grade of C, as the Large Blend category had an average return of -3.2%. While this return may not be the highest, it's still a respectable performance, especially considering the fund's low fees.

The Quality Factor is an investment strategy that prioritizes companies with higher profitability, stable cash flows, and good balance sheets.

This approach has a proven track record of outperforming peers over time, as seen in the performance of the Fidelity Quality Factor ETF.

Companies with these characteristics tend to have a strong foundation for long-term growth and stability.

This investment strategy focuses on the fundamentals of a company, rather than short-term market trends or speculation.

Investing $10,000 in the Fidelity Total Market Index ETF can be a great way to grow your wealth over time.

The ETF has a low expense ratio of 0.015%, which means you'll pay only $1.50 in fees for every $10,000 invested.

This low expense ratio can help your investment grow faster, as you're not losing money to high fees.

In the first year, your $10,000 investment could earn around $1,500 in returns, based on the ETF's historical performance.

This means your total balance would be around $11,500, a 15% increase in just one year.

The ETF's low fees and broad diversification can help you ride out market fluctuations and achieve long-term growth.

Over a five-year period, the ETF's historical returns suggest that a $10,000 investment could grow to around $13,700, assuming average annual returns.

This is a 37% increase in just five years, which is a significant boost to your wealth.

If you're considering the Fidelity Total Market Index ETF, you might also want to look into alternatives like Vanguard Total Stock Market Index Fund, which has a slightly lower expense ratio.

The Fidelity Total Market Index ETF has a broad market exposure, covering over 5,000 stocks, making it a good option for those looking for a diversified portfolio.

For those who want to invest in a specific sector, such as technology or healthcare, the Fidelity sector-specific ETFs might be a better fit, but keep in mind they come with higher fees.

Index funds and S&P 500 funds are two popular investment options that can help you achieve your financial goals. Index funds try to be the market by buying stocks of every firm listed on a market index, while S&P 500 funds focus on large-cap stocks.

The choice between an index fund and an S&P 500 fund depends on your investment goals and risk tolerance. If you want broader diversification, including small and mid-cap stocks, consider an index fund.

Total market funds, like index funds, offer a broader diversification of stocks, including smaller companies. This can lead to slightly higher volatility.

Historically, the long-term performance of total market funds and S&P 500 funds has been similar. However, their performance can diverge in shorter periods.

S&P 500 funds are often easier to understand and track, making them a simpler option for investors.

The Schwab Total Stock Market Index (SWTSX) is a great option for those looking for a comprehensive blend of large, small, and midsized corporations. It mirrors the performance of the entire U.S. equity market.

One of the benefits of the SWTSX is that it has no investment minimum, making it accessible to a wide range of investors. The fund's top 10 holdings comprise about 28% of the portfolio and include Apple, Microsoft, NVIDIA, Amazon, and Alphabet, among others.

Here are the top 10 holdings of the SWTSX as of the fourth quarter of 2024:

Note that the SWTSX has a significant weighting in its top 10 holdings, which may be a consideration for investors looking for more diversification.

If you're looking for a specific type of ETP, you can use a screener to view a complete list of active equity ETFs, but you'll need to log in first.

Fidelity offers a range of ETPs that can be screened using their tool, which requires a login to access the full list.

You can also consider other alternatives, but Fidelity's ETPs are a good place to start.

Their ETF Screener is a useful resource for finding the right ETP for your needs, and it's free to use once you're logged in.

You can use the Fidelity Total Market Index ETF as a core holding in a diversified investment portfolio. The ETF tracks the CRSP US Total Market Index, which includes over 3,000 stocks.

A long-term investment approach is suitable for this ETF, as it provides broad market exposure and can help ride out market fluctuations. This ETF is a good option for investors seeking to minimize fees and maximize returns over time.

Investors with a moderate risk tolerance may find the Fidelity Total Market Index ETF appealing, as it offers broad market exposure with relatively low fees. The ETF's low expense ratio makes it an attractive choice for long-term investors.

Consider your individual financial goals and risk tolerance when deciding whether to invest in the Fidelity Total Market Index ETF. The ETF's broad market exposure can help you achieve your long-term financial objectives.