The 5 Best Fidelity Index Funds for Investors Today

Index funds are known for being generally low-cost investments that offer instant diversification. So they can work for investors who don’t have much time or know-how to carefully pick individual stocks for their own portfolios.

Fidelity Investments, one of the largest brokerage firms in the country, is known for offering some of the most competitive index funds on the market. So let’s take a look at some of the best Fidelity index funds for investors today.

Fidelity 500 Index Fund

The average annual return of the S&P 500 is about 10%.

Net assets: $599.3 billion

Expense ratio: 0.015%

Average annual return at end of quarter life: 11.04%

The Fidelity 500 currently has a Morningstar rating of 5/5 stars. It aims to mimic the performance of the S&P 500, an index containing the largest and best performing US companies. It is also considered a general indicator of the general stock market. The average historical return of the S&P 500 is about 10%.

The Fidelity 500’s three-year average annual return is 11.90%, and its five-year average annual return is 15.96%.

Fidelity Mid Cap Index Fund

Fidelity is known for its low-fee index funds.

Net assets: $36.4 billion

Expense ratio: 0.025%

Average annual return at end of quarter life: 12.48%

The Fidelity Mid Cap Index Fund tracks the Russell Midcap Index, which contains the smallest 800 companies in the Russell 1000. It currently has a 3-star Morningstar rating.

This type of fund can complement portfolios that already have exposure to large companies, leaving room for firms with the potential to become those large companies. It has an impressive one-year average annual return of 29.29% and a 10-year average annual return of 10.19%.

Fidelity US Bond Index Fund

Index funds provide instant diversification.

Net assets: $60.04 billion

Expense ratio: 0.025%

Average annual return at end of quarter life: 5.12%

The Fidelity US Bond Index Fund tracks the Bloomberg US Aggregate Bond Index, which is designed to reflect the US investment grade bond market. This could add diversification to a stock-heavy portfolio.

It has a Morningstar rating of ⅗ stars. While its three-year average annual return is -1.39%, its 10-year average return is 1.82%.

Fidelity Multi-Asset Index Fund

It is important to diversify a portfolio with multiple asset classes.

Net assets: $8.69 billion

Expense ratio: 0.11%

Average annual return at end of quarter life: 6.50%

The Fidelity Multi-Asset Index Fund holds a mix of domestic and international stocks and bonds. This can add global exposure and diversification to your portfolio.

This fund currently has a Morningstar rating of ⅘ stars. It has a five-year average annual return of 10.51%.

Fidelity Small Cap Index Fund

Many small companies have the potential to become the powerhouses of tomorrow.

Net assets: $27.45 billion

Expense ratio: 0.025%

Average annual return at end of quarter life: 10.98%

Many small companies also have potential. And the Fidelity Small Cap Index Fund could provide exposure to these firms. The fund tracks the Russell 2000, which contains the smallest stocks in the Russell index. Although investing in small companies can have a degree of risk, this fund can give you exposure to some of the key players of tomorrow.

The Fidelity Small Cap Index Fund has a 10-year average annualized return of 8.93% and a one-year average return of 26.84%. It has a current Morningstar rating of 4 stars.

Why we covered this

Weigh the pros and cons of index funds carefully before investing.

Index mutual funds offer instant diversification and many come with very low expense ratios, which could mean you keep more of your return. To help you build a portfolio using Fidelity funds, we’ve developed a guide to our take on the best Fidelity Index funds today.

If you want to learn more about Fidelity, check out our regularly updated list of Fidelity Investments guides, news and coverage.

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