Fidelity 500 Index
FXAIX (NASDAQ)
The Fidelity 500 Index (FXAIX) offers a low-cost entry into the U.S. large-cap market with an expense ratio of just 0.015%. Investors can benefit from a 1-year return of 15.64% and an impressive 5-year return of 85.66%, making it an attractive option for those seeking broad market exposure. With a dividend yield of 1.12%, this fund stands out for its ability to provide reliable income while tracking the performance of the S&P 500.
Pros:
- Ultra-low expense ratio
- Tracks S&P 500 effectively
Cons:
- Market risk exposure
- Dependence on large-cap performance
The Fidelity 500 Index (FXAIX) may be suitable for investors looking for a cost-effective way to gain exposure to the U.S. large-cap market, particularly those who prioritize long-term growth and reliable income through dividends. Its strong historical performance and low expense ratio make it a compelling option for both novice and seasoned investors aiming to track the S&P 500.