Best Fidelity Mutual Funds

The best Fidelity index funds vary based on your individual investing needs and goals. This includes your risk profile, investment horizon, and how much money you have to invest. Additionally, you should consider fees, which are the charges that fund managers levy to cover regulatory and recordkeeping costs. Index mutual funds tend to have lower fees than actively managed funds, though ETFs are even cheaper. Fidelity is one of the oldest and largest brokerage firms in the United States and the record keeper for nearly two-thirds of all 401(k) plans. Despite its long history, it has consistently worked to lower its fees to stay competitive with Vanguard and other industry leaders.

In addition to offering some of the lowest fees in the market, Fidelity offers various index funds with comparatively low expenses. These include options tracking popular stock market indices like the S&P 500.

Best Fidelity Index Funds

Fidelity has a robust offering of index funds that follow stocks in all market cap sizes, international equity markets, bond indexes, and more. These funds can help you build an asset-allocated portfolio that aligns with your investing timeline, risk tolerance, and goals.

Conventional wisdom suggests that dividend-paying stocks will be pinched by rising interest rates, but that’s not always the case. For example, the Fidelity Dividend ETF for Rising Rates (NYSEARCA: FDRR) is a top-performing fund that uses a unique approach to find low-risk, high-yield dividend stocks. Its portfolio includes domestic stocks like megabank Wells Fargo & Co. (WFC) and health care diagnostics giant Danaher Corp. (DHR) while also providing exposure to foreign stocks such as Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) and Irish business services giant Accenture PLC (ACN).

One of the best Fidelity index funds is the Fidelity Contrafund (FCONX). While this fund won’t give you Ferrari-level performance, it will help you smooth out the market’s bumps with a Buick Riviera rather than a face-peeling V8. The fund has a long-term track record of outperforming the S&P 500 on a yearly basis. Familiar names like Microsoft (MSFT), Google – aka Alphabet – Amazon, and UnitedHealth Group (UNH) make up the top 10 holdings in this ETF.

The Fidelity Zero Large Cap Index Fund (FNILX) is another great option for those interested in a broad U.S. market index fund that charges a bare minimum expense ratio. This fund, which is often compared to VTSAX and QQQ, is led by veteran investor Will Dannoff. This fund has averaged around 16% in growth each year in the past ten years. It also has a strong reputation for beating the majority of actively managed funds in its category.