Is Fidelity 500 Index Fund a good investment? (2024)

Is Fidelity 500 Index Fund a good investment?

Overall Rating

What is the return on Fidelity 500 Index Fund?

Return Type1 YrLife
FUND Fidelity® 500 Index Fund26.29%10.67%
PRIMARY BENCHMARK S&P 500 Close Popover26.29%10.80%
MORNINGSTAR CATEGORY AVERAGE Large Blend Close Popover22.32%--
AFTER TAXES ON DISTRIBUTIONS Close Popover
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Is Fidelity good for S&P 500?

An S&P 500 index fund can be used for a high-conviction, long-term bet on U.S. large-cap stocks. Our recommendation for the best overall S&P 500 index fund is the Fidelity 500 Index Fund (FXAIX). With a 0.015% expense ratio, this fund is the cheapest one on our list.

What is the forecast for the Fidelity 500 Index Fund?

The average price target for Fidelity 500 Index Fund is $190.07. This is based on 506 Wall Streets Analysts 12-month price targets, issued in the past 3 months. The highest analyst price target is $225.64 ,the lowest forecast is $156.37.

Is the index 500 a good investment?

S&P 500 index funds can help you instantly diversify your portfolio by providing exposure to some of the biggest companies in the U.S. Index funds in general are fairly inexpensive compared with other types of mutual funds, making them an attractive option for most investors.

Does Fidelity 500 Index pay dividends?

Last dividend for Fidelity 500 Index (FXAIX) as of Feb. 7, 2024 is 0.70 USD. The forward dividend yield for FXAIX as of Feb. 7, 2024 is 1.63%.

Is Fidelity 500 the same as S&P 500?

Fidelity® 500 Index Fund is a diversified domestic large-cap equity strategy that seeks to closely track the returns and characteristics of the S&P 500® index. The S&P 500® is a market-capitalization-weighted index designed to measure the performance of 500 large-cap U.S. companies.

Is Fidelity or Vanguard better for index funds?

If you want to actively trade within your accounts, Fidelity might be the better option. However, if you want to focus more on index investing, or you want to use a robo-advisor, Vanguard has a slight edge.

Is Fidelity investments better than Vanguard?

Vanguard and Fidelity are both retirement powerhouses, but Fidelity offers a more well-rounded platform that also caters to active traders. Arielle O'Shea leads the investing and taxes team at NerdWallet.

What is the best S&P 500 index fund to buy?

Best index funds to invest in
  • SPDR S&P 500 ETF Trust.
  • iShares Core S&P 500 ETF.
  • Schwab S&P 500 Index Fund.
  • Shelton NASDAQ-100 Index Direct.
  • Invesco QQQ Trust ETF.
  • Vanguard Russell 2000 ETF.
  • Vanguard Total Stock Market ETF.
  • SPDR Dow Jones Industrial Average ETF Trust.

Should I buy FXAIX now?

FXAIX has a 5-year annualized total return of 12.29% and it sits in the top third among its category peers. But if you are looking for a shorter time frame, it is also worth looking at its 3-year annualized total return of 14.59%, which places it in the top third during this time-frame.

Is Fidelity 500 Index Fund good for retirement?

The Fidelity 500 Index Fund — which Fidelity says is designed to track the S&P 500 — reported a 12-month return of 21.61% and a three-month return of -8.24%. The fund's performance was nearly identical to that of the index. Index funds make sense for the average investor looking toward retirement.

Is Fidelity good for index funds?

The Fidelity Mid Cap Index Fund has a gold-star rating from Morningstar, the research firm's highest rating.

What are 2 cons to investing in index funds?

Disadvantages include the lack of downside protection, no choice in index composition, and it cannot beat the market (by definition). To index invest, find an index, find a fund tracking that index, and then find a broker to buy shares in that fund.

Should I just invest in index funds?

Over the long term, index funds have generally outperformed other types of mutual funds. Other benefits of index funds include low fees, tax advantages (they generate less taxable income), and low risk (since they're highly diversified).

How much would $10,000 invested in S&P 500?

Assuming an average annual return rate of about 10% (a typical historical average), a $10,000 investment in the S&P 500 could potentially grow to approximately $25,937 over 10 years.

How much does the Fidelity S&P 500 Index Fund cost?

Fidelity® 500 Index Fund has an expense ratio of 0.02 percent.

Should I buy Spy or FXAIX?

SPY - Performance Comparison. The year-to-date returns for both stocks are quite close, with FXAIX having a 3.97% return and SPY slightly lower at 3.93%. Both investments have delivered pretty close results over the past 10 years, with FXAIX having a 12.85% annualized return and SPY not far behind at 12.69%.

Is Fidelity 500 Index Fund a mutual fund?

Lowest Cost S&P 500 Index Fund: Fidelity 500 Index Fund (FXAIX) FXAIX is a mutual fund. Because index-tracking funds will follow the performance of the index, one of, if not the, biggest determinant of long-term returns is how much it charges in fees.

What is the cheapest way to invest in the S&P 500?

If you want an inexpensive way to invest in S&P 500 ETFs, you can gain exposure through discount brokers. These financial professionals offer commission-free trading on all passive ETF products. But keep in mind that some brokers may impose minimum investment requirements.

What are the holdings in Fidelity 500 Index Fund?

Top 10 Holdings
CompanySymbolTotal Net Assets
Apple Inc.AAPL7.01%
Microsoft Corp.MSFT6.96%
Amazon.com Inc.AMZN3.44%
NVIDIA Corp.NVDA3.05%
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How to invest in S&P 500 for beginners?

How to invest in an S&P 500 index fund
  1. Find your S&P 500 index fund. It's actually easy to find an S&P 500 index fund, even if you're just starting to invest. ...
  2. Go to your investing account or open a new one. ...
  3. Determine how much you can afford to invest. ...
  4. Buy the index fund.
Oct 11, 2023

Why do people prefer Vanguard over Fidelity?

Performance and Cost. As the innovator of index funds, Vanguard offers an impressive range of index funds today with low expense ratios. Fidelity has a comparable selection of funds, but its fees generally aren't as competitive as Vanguard's.

What are the cons of Fidelity?

Fidelity Cons
  • No cryptocurrency trading.
  • No futures trading or paper trading.
  • Transaction fees for non-Fidelity mutual funds.
  • Small per-contract fee for options.
Jun 8, 2023

Should I switch from Fidelity to Vanguard?

In fact, Fidelity is our overall pick for the best online broker in 2022, so it is very hard to beat. All that said, Vanguard still offers some of the lowest-cost funds in the industry and will appeal to buy-and-hold investors, retirement savers, and investors who want access to professional advice.

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