MY EXACT Dividend Stock Portfolio — See it in M1 Finance! ||
In this video we are talking about Fidelity Index Funds, but more specifically, the Fidelity one-fund index funds we talked about in the previous video about 6 different Fidelity Index Funds. The 3 Fidelity Funds we will be covering are the Fidelity S&P 500 Index Fund FXAIX, the Fidelity Total Market index fund FSKAX and the Fidelity NASDAQ Composite Index FNCMX.
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00:00 INTRODUCTION
01:18 OVERVIEW OF EACH INDEX FUND
02:48 EXPENSE RATIOS
04:22 SECTOR BREAKDOWN BY FUND
05:40 COMPOSITION OF EACH FUND
08:31 S&P 500 VS. TOTAL MARKET VS. NASDAQ
Thanks for putting in the work! Great video. It makes sense to not own more than one of these in a portfolio. Thoughts on adding a small percentage of FNCMX to FXAIX to take advantage of the higher growth? I’m not sure I’d want to go 100% into FNCMX but a part of me wants a piece of that increased growth. I do believe tech is the way of the future. We’ve said that for a few decades and it has proven to be true.
You could add both to your portfolio OR another option would be to add a sector ETF for Information Technology if you really want to add exposure there. Either way though you are going to double your exposure to Apple, Microsoft, Google, Etc. Hope that helps!
Love your videos. As a fidelity user , I would love to see more content on asset allocation and building a solid retirement portfolio. Thank you 🙏
GOOD TO KNOW! Thank you for the feedback!
I subscribed. Great content and analysis along with clear explanations. You covered a LOT of ground in less than 20 minutes. Do you feel 100% allocation to Fidelity’s S&P 500 fund would yield better returns than a Target Date Fund? Would love to see a similar video with that analysis and comparison. Thanks again!
GREAT QUESTION! I think that WILL BE a new video topic! I believe that the S&P 500 would out-perform, BUT i don’t know for sure. Stay on the lookout for that over the next 30 days or so. =)
THANK YOU for subscribing! I really appreciate it!
Look at the assets of Fidelity’s S&P 500 and Target Date Fund. They are completely different.
@David E. Vogel very good point. That is why I asked for the video with Average Joe’s analysis. He did a great job on this video, and a similar comparison would be very helpful for me, and hopefully many others. Thanks for the note!
@Ronnie Basu A target fund is for your goals:
downpayment for house
buy house with cash
retirement investment portfolio
The beginning of the target fund is a high risk portfolio (90 percent equities – 10 percent fixed income securities). The end of the target fund is a low risk portfolio (90 percent fixed income securities – 10 percent equities). The fund manager moves you gradually for high risk to low risk.
I don’t like the concept. You should determine your own risk tolerance. Its easy for you to adjust your risk one each year: sell equites – buy fixed income securities.
Hello, I subscribed and liked! From a diversication perspective, if your planning on investing around 1,500 monthly. Would you recommend investing in more than one index fund, or would you recommend splitting into 3 index funds?? (I currently have 3 index funds 500, Total Market, & Internationa]). Thank you for your feedback and appreciate all the free knowledge!
HI ROLANDO! I can’t really provide you financial advice since I am not licensed to do so, BUT what I WOULD DO is not own both the S&P 500 AND Total Stock Market since there is so much overlap. I am neutral on International but I think it’s definitely OK to diversify into International funds. Depending on how much time I have until retirement I might also include small/mid cap growth. HOPE THAT HELPS! Good luck with your investing journey!! 👍🏻😎
I subscribed! Thanks for the great content, I’m learning a lot. I’m super new to investing myself and I currently own 3 of the Fidelity ZERO funds (Large Cap, Extended Market, and International), would you consider that a good mix for a beginner?
Awesome! Thank you Kiara! Welcome to the Average Joe Investor community!
It depends on your allocation, or how much of your portfolio the fund is.
Great video! I appreciate the info. I have a question, why wouldn’t I want to overlap (or own shares from all 3)? Is it wrong to have all 3?
Thank you
GREAT QUESTION. You can certainly overlap if you want to all of the funds, but like I mentioned in the video, the underlying stocks are VERY SIMILAR, especially at the top weightings. Its not going to hurt you, but its also not really going to benefit you as much. THANK YOU for watching and leaving a comment. =)
@The Average Joe Investor Thank you for the quick and straight answer! I have subscribed after the first video lol
Thanks alot for helping the newbies.
New viewer and first time investor here. Love your enthusiasm and direct to the point presentations. Just finished your VTI vs. VOO comparison and now I’m here. Looking forward to building my knowledge with your videos. Thank you!
That is AWESOME Doug. I am excited for you! Please let me know any questions or feedback you have as well as any topics you would like to hear more about. =)
@The Average Joe Investor will do! Have a great weekend 🙂
I subscribed. Thanks for the analysis. I have FXAIX in my portfolio already for about 3 years. I never rebalance and not sure whether I need to. Please let me know. I contributed $500 every month. I am thinking about owning total index as well and fidelity zero index fund.
AWESOME! Thank you so much for joining the Average Joe Investor community! I don’t think you should feel COMPELLED to rebalance unless you are wanting to take more risk or take less risk. IF it were me and I wanted to take more risk, I would add in growth-oriented funds such as MGK or perhaps a mix of small and mid cap growth. You get a tad more diversification with FSKAX or Fidelity ZERO but given that both of them are cap-weighted index funds, you still end up with a significant weighting in the tope 10 holdings. At the end of the day, it will come down to what you want to accomplish and how long you have before you need the money. Hope that helps! THANK YOU for watching G C and for leaving your $0.02 in the comments! 😎👍🏻
The key question for a Fidelity customer interested in a S&P 500, extension US or total US stock fund is the FXAIX, FSMAX, FSKAX vs the corresponding Fidelity Zero expense ratio funds, FNILX, FZIPX, FZROX. If only someone were to publish a thorough analysis of whether Zero funds are a better or worse choice. Hmm…
Hint: consider not just total return but also divided reinvestment periodicity.
I think your hinting at this topic is enough to push me over the edge — it’s on the list! =P
Thanks Joe, I just subscribed to your channel. I find your videos very informative and valuable. Quick question, do you think is better to invest in Vanguard total market and SP 500 or Fidelity total market and Fidelity SP 500? Thanks for your thoughts.
I love watching your videos! You bring so much clarity and I really appreciate all of your visuals. I can’t imagine how much time it took to create all of those spreadsheets, but they were pretty amazing and informative!
Thank you so much for that feedback Kaleigh! YES, the spreadsheets take some time to build, but for me its the best way to learn and see the TRUTH that REAL DATA can uncover. THANK YOU for watching Kaleigh Lawrence and for leaving your $0.02 in the comments! 😎👍🏻
you prolly dont care at all but does anyone know of a method to get back into an Instagram account??
I was stupid forgot the login password. I love any tricks you can offer me.
I keep watching this video over and over to remind me that although the stock market has it’s ups and down, following this method will work for me for the next ten years. I think I’m going to try to invest in the NASDAQ Composite bc technology for the next ten years is going to change dramatically.
VERY NICE VIC! Good luck on your investing journey! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
If your 401k is through fidelity, is there one of these that you recommend allocating it towards? or is any of these diverse enough for your 401k
video was super helpful! but wasn’t sure if this was based on normal investing or 401k specially
HI LAUREN! Thank you for that feedback! =) I think any of the 3 could stand alone in our portfolio depending of course on what your goals are, when you need the money and your risk tolerance. They can work in a 401k or a taxable account just fine. Hope that helps Lauren! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Have you done russell 2000
Hello Joe, I subscribed and liked! I appreciate for all of your free lessons. When we choose an index fund should we look on the risk level rated by Morningstar also? Thank you.
GREAT QUESTION and THANK YOU so much for joining the Average Joe Investor community! I appreciate it! I NEVER look a the Morningstar ratings. I keep my index funds very straightforward and as passive as possible. Hope that helps! THANK YOU for watching T Truong and for leaving your $0.02 in the comments! 😎👍🏻
Great video! Keep ’em coming. You really break it down for us simple folks. FXAIX and FSKAX are my biggest funds in my Roth IRA. I’m planning on adding FNCMX or ONEQ to my portfolio soon.
THANK YOU for the feedback Kurt and GREAT JOB on your investing journey! =)
Of the three, I have FXAIX in my Traditional IRA…so far it’s treating me well, up about 1.66% this past month.
GLAD to hear it. =) THANK YOU for watching Forrest and for leaving your $0.02 in the comments! 😎👍🏻
@ Forrest Egan – I just got into FXAIX myself. I will roll with this for the foreseeable future, but also looking at adding something else just to diversify my portfolio just a little bit more. Definitely looking at a small and mid cap fund now to cover the entire demographic stock market..lol
I am a new investor and I started a taxable account just this month. It’s a bit scary because I have never done this all by myself without a financial advisor. Hoping to learn in the process of investing and I would like to teach my family and friends in the future. I picked 4 index funds and I have gained some money already in just 4 days.
AWESOME LUTONG! I am so happy that you STARTED investing. Please do not hesitate to reach out with any questions or concerns in the future. =) THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Thanks for all your hard work! This is my favorite channel so far. You do the research, you provide the facts and don’t speculate like a lot of the other channels that talk finance. I actually own FSKAX.
THANK YOU so much for that feedback! I really appreciate it. =) THANK YOU for watching and for leaving your $0.02 in the comments!
@The Average Joe Investor thank you! I went ahead and added the other two funds to my ROTH IRA. I love Fidelity and how we can buy fractional shares!
Just clicked that SUBSCRIBE button! Thanks for your amazing content. As a newbie in the investing world, your videos are incredibly helpful.
Generally, for a young investor with a relatively long time horizon, why would someone who wants just a 1 fund portfolio NOT go with FNCMX? It seems like a no-brainer? I see that it has a higher expense ratio but the gains would seem to outweigh the increase in expense ratio (assuming the past predicts the future but I know we can’t make that assumption)
AWESOME! Thank you so much for joining the Average Joe Investor community! Somebody may opt for the TOTAL MARKET or the S&P 500 to get more balance. NASDAQ is heavily tech-weighted which indeed has performed well the past 10 years BUT no guarantees tech leads the way in the next 5-10 years. Hope that helps! Please let me know going forward what investing topics you want to learn more about as well as any feedback/questions you have!
I love your videos! So simple and full of good information
Exactly what I was looking for. Thanks for putting up this informative analysis.