Top 5 Fidelity Index Funds for a Long-Term Investment Strategy

by | Apr 11, 2023 | SEP IRA | 33 comments




In this video, we’ll go over the 5 best Fidelity Index Funds to invest in. These are the top index funds from Fidelity that you can buy and hold forever to help you reach Financial Independence sooner. 100% of my investment portfolio is loaded up with index funds just like these because they’re simple, reliable, and can easily double, triple, or even quadruple in price if you hold them for long periods of time.

I always suggest buying and holding these index funds for as long as possible because the stock market is very volatile in the short term. If any of these investments happen to underperform in the short term then don’t automatically sell off your positions. Patience is the most important part of investing.

This is the biggest problem with the Fidelity Zero Fee Index Funds:

You can use any of these funds to build a 2 and 3 fund portfolio.
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Fidelity 500 Index Fund FXAIX – This fund tracks the S&P 500 which is made up of the 500 largest U.S. stocks, based on market cap. FXAIX is for anyone who is looking to match the performance of those largest U.S. stocks. Because they make up 80% of the total U.S. market cap, they’re what really moves the markets.

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Fidelity Total Market Index Fund FSKAX – FSKAX does exactly what the name says- invests in the total U.S. stock market. That means your money is invested among pretty much every U.S.-based stock out there. This fund is for the person who wants the stability that comes with investing into those biggest 500 companies while still gaining exposure to those up-and-coming mid and small-cap stocks as well.

Fidelity Total International Index Fund FTIHX – The Fidelity Total International Index Fund is just like the Total U.S. Index fund except the international fund holds stocks that exist outside of the United States. This fund seeks to provide investment results that match the total return of foreign developed and emerging stock markets. FTIHX specifically tracks the MSCI All Country World Index ex USA, which covers about 85% of global equities outside of the United States. By investing in FTIHX your money is diversified among different countries, regions, sectors, and even currencies.

Fidelity U.S. Bond Index Fund FXNAX – It tracks the Bloomberg U.S. Aggregate Bond Index which holds a mixture of U.S. Treasuries, corporate bonds, and mortgage-backed securities. If you’re someone who is building a 3 fund portfolio then you’re going to need a bond fund. This is a great index fund to fill the gap in that type of strategy.

Fidelity Real Estate Index Fund FSRNX – If you’re looking to invest in a real estate fund then don’t choose this Fidelity fund because it’s not that good. Instead, invest in the Vanguard Real Estate ETF VNQ. You can purchase that index fund on the Fidelity investment platform.

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Disclaimer: This video is for entertainment purposes only. Everyone’s situation is different so do your own research before making any decisions with your money. If you need help then contact a Certified Financial Fiduciary before trying anything that is mentioned in this video. I prefer a Fiduciary financial advisor that charges an hourly fee as opposed to an ongoing fee based on a % of your portfolio. Always remember that incentives determine the type of advice they give you so one that charges an hourly fee is less likely to be problematic.

#Fidelity #Investing #IndexFunds…(read more)


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As an investor, it is important to find quality investments that can be held for a long time. Fidelity index funds are one of the best options for long-term investors. These funds aim to track a particular index, such as the S&P 500, and mimic its performance. Here are 5 Fidelity index funds that are excellent choices for buy and hold investors.

1. Fidelity 500 Index Fund – This is a popular index fund that tracks the S&P 500. The fund has low fees and consistently performs well. The Fidelity 500 Index Fund is a great choice for investors who want exposure to large-cap U.S. stocks.

2. Fidelity Total Market Index Fund – This fund tracks the Dow Jones U.S. Total Stock Market Index. It holds a broad range of stocks and provides exposure to the entire U.S. market. The Fidelity Total Market Index Fund has low fees and is a great choice for investors who want broad exposure to the U.S. stock market.

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3. Fidelity Global ex U.S. Index Fund – This index fund tracks the MSCI World ex USA Investable Market Index. It provides exposure to international stocks, excluding the U.S. market. The Fidelity Global ex U.S. Index Fund has low fees and is a great choice for investors who want to diversify their portfolio with international stocks.

4. Fidelity Small Cap Index Fund – This fund tracks the Russell 2000 Index, which is made up of small-cap U.S. stocks. The Fidelity Small Cap Index Fund provides exposure to smaller companies that can have higher growth potential. It has low fees and is a great choice for investors who want exposure to small-cap U.S. stocks.

5. Fidelity Real Estate Investment Portfolio – This fund tracks the MSCI USA IMI Real Estate Index. It provides exposure to the U.S. real estate market. Real estate can provide diversification to a portfolio and this fund is a great choice for investors who want exposure to the U.S. real estate market.

In conclusion, Fidelity index funds are a great option for long-term investors who are looking for quality investments. These funds have low fees, long-term track records, and provide the simplicity of index investing. The 5 Fidelity index funds highlighted above offer diversified exposure to the U.S. and international markets, as well as the real estate market. These funds are excellent choices for buy and hold investors who want to take a passive approach to investing while still potentially reaping the rewards of market growth over the long term.

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33 Comments

  1. Ofthewoods

    Thanks for sharing your knowledge. I have fidelity as my broker. What are your thoughts on dividend ETFs?

  2. Joaquin Patino

    Do people own both the total index funds and S&P500?

  3. Jackson Billy

    Hey…you get your silver youtube plaque? Apply for that if not. I enjoy your videos. They have been very helpful.

  4. Daddy Sun

    Hello I'm new to fidelity. I contacted their reps about a strategy and based on the answers I gave them to some of the questions they asked me they came up with the the Fasmx. I just wanted to know your thoughts on this particular fund. I told them that I would consider it, but that I still wanted to invest in other things

  5. Craig Dozier

    FX..AIX. OR. FX. IAX.
    THATS THE FIRST ONE YOU MENTIONED BUT YOU WROTE AIX IN THE VIDEO

  6. Logan

    But what if America collapses in the next 5 years? That would suck wouldn't it

    That's hilarious I posted this at the beginning… Call me a conspiracy theorist I guess… Lol

  7. Nathan Morgan

    2007 + 3.5 recovery years
    2000 +4.17 recover years
    2020 + 0.33 recovery years

    So, of the past 22 years, 8 or 36% of those years were completely lost. We need to find a better system for late life survival than this.

  8. Auric Goldfinger

    Choose 2 and only 2. One S&P 500 or total U S market ( I prefer S&P 500 because of more favorable tax ramifications, although this can be argued).
    Then one bond fund – intermediate duration, muni treasury, corporate or mixed, depending on tax bracket.
    No international needed. The S& P gets over 40% of its profits from outside the USA. Political unknowns and currency fluctuations make internationals less necessary and desirable.
    But what do I know. I’ve only done this for 40 years

  9. Angel of A Million Years

    Jarred- google the top 20 nations with the highest per capita GDP growth rates and you will see that the US in not in the top 20. Does a fund exists that only buys firms in these high GDP growth nations? IF not , this should be a fund. Name it HIGH PER CAPITA GDP GROWTH FUND!! What are your thoughts? THANKS

  10. Matt32

    Basic data on Fidelity funds on their websites fund screener shows their are better funds than these, and that's looking at 10 year and inception numbers. Would be better off making a video showing people how to extrapolate the data themselves.

  11. Willie P

    Bonds of 1% returns.. might as well put that in a savings account for easier access at that point.

  12. Jacob Boone

    Phenomenal video!! Very in depth but not to the point of confusion. Perfect for my level of understanding. Thank you!

  13. Raphaelus13

    If the 5 and 10 year return of FXNAX is lower than what High Yield saving accounts are providing (>3.4%) are the later a better alternative?

  14. Vanessa Gomez

    I am so grateful I came across to your videos, I am a new investor and watching your videos has given me a good outlook of the stock market. I love the way you layout everything, I can understand it better so thank you!!

  15. Ruben Monroy

    So it's totally fine to invest in all 5 of these? (im new to investing)

  16. L J

    I'm a single mother, 36, and am just now contributing to 401k as my job offers Fidelity. I'm reading the pamphlet provided, and it's all overwhelming, I don't know which investment I should choose even after listening to this video. I thought about just doing Robinhood… I may be working until I die, but I want my children to be OK.

  17. Charles Smilinich

    Can you do a video on Principal? My company is using them for 401k.

  18. Riley Jaensch

    What 3 should I choose for my Roth ira? I’m 21 and don’t mind the aggressive growth or aggressive approach since I’m young. I was looking at doing the 3 fund portfolio, however, I don’t want to have bonds in my portfolio rn and was wondering your thoughts? I can’t decide between fxaix and fskax

  19. Maury Knows

    Doom and gloom people aren’t tinfoil hat nutjobs!!! They’ve done their research and they know how to connect the dots. The US is done. We have already reached the point t of no return. You sheep will understand SOON. Mark my words.

  20. ALI’SLoad

    I have a silly question, since I am new to investing. I understand the funds, but how much do you buy? I’m confused about that.

  21. Dextet King

    I’m working on my second 401k from NORA they are offering Fidelity top funds I like the index

  22. Tom Stanley

    FZROX? A zero cost fidelity total market index fund. I don’t know the intricacies, but why would you choose the one with fees?

  23. Rachel

    I've been doing 70% FSKAX and 30% FTIHX b/c with just two stocks you get everything

  24. Travis Adams

    Have you read Blackrocks report on the "New Order"? It doesn't look good for stocks. Bonds are starting too look sexy. For Fidelity IRA's would you consider moving more assets to FASAMX or FFANX?

  25. Sharee A

    Hi! Since the VNQ is an ETF rather than a mutual fund based index fund, does that mean I have to monitor and trade daily or can I hold on to in for retirement like I would for a more traditional index fund? Sorry I am new to investing and am trying to figure it out. Sorry if that is a dumb question/makes no sense…

  26. jetseattle

    I like FTEC!

  27. life is great

    I’m currently holding fxaix, fsmex & fsmax.

  28. Todd Hatch

    Thanks for your insight! I had added fxaix and fskax last year after my own research and to hear you recommend it couldn't make me happier!!

  29. Alfredo Arenas

    Great video? Does anybody knows why International Funds have such a TERRIBLE rate of return?

  30. Iren Molnar

    Why not SPY??

  31. D LG

    Personally, I don't hold any bonds in my portfolio and I don't plan to until I retire, and even then it'll be a relatively small allocation. I prefer an all stock portfolio with a larger than average cash reserve. The cash reserve makes it less risky and you don't have stagnant bonds acting as a drag on growth. Also, in my opinion, NO ONE who is saving for retirement should have a portfolio without some dedicated small cap and mid cap exposure, and not just in a total market fund which weights them too low.

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