Fidelity 500 Index Fund: A Comprehensive Guide

Uncovering the Key Features and Performance of FXAIX

About the Fund

The Fidelity 500 Index Fund (FXAIX) is a mutual fund that tracks the performance of the Standard & Poor's 500 Index (S&P 500). The fund aims to provide investors with exposure to the overall U.S. stock market, and it typically invests at least 80% of its assets in common stocks included in the S&P 500.

Investment Objective and Strategy

The fund's investment objective is to provide investment results that correspond to the total performance of common stocks. To achieve this, the fund's portfolio managers use a passive investment strategy, which means they track the S&P 500 Index without attempting to outperform it.

Performance and Expense Ratio

FXAIX has a track record of consistent performance, mirroring the fluctuations of the S&P 500. The fund's expense ratio, which covers the costs associated with managing the fund, is 0.015%, making it one of the lowest-cost index funds in the industry.

Benefits and Considerations

Investing in FXAIX offers several benefits, including broad market exposure, low costs, and the potential for long-term growth. However, investors should also consider that the fund's performance is directly tied to the performance of the S&P 500, and it may experience volatility in line with the broader market.