MY EXACT Dividend Stock Portfolio — See it in M1 Finance! ||
In this video we are talking about Fidelity Index Funds and more specifically we are talking about 2 very popular Fidelity Index Funds: The Fidelity S&P 500 index funds FXAIX and the Fidelity Total Market Index Fund FSKAX. We will break down the performance of each of the Fidelity Index Funds, the composition of the holdings, what it means to be a capitalization weighted index fund and much more.
Exactly what I’ve been looking for, thanks!! I have an HSA, taxable, and Roth. Find myself struggling deciding between these and ROX.
Just buy FZROX
One issue is that while there are equal weighted ETFs, the combination of under performance to the cap weighted products with higher expense ratios makes things hard to stomach. Equal weight requires more trades to realize either in a fund or doing it yourself, so I think it will be hard for it to ever meet the performance of cap weighted funds unless the larger cap stocks just become terribly overvalued compared with the rest of the market. Outside of an ETF, there are tax performance issues for equal weight strategies too, especially as the trend for the higher cap stocks to perform well continues since you will be constantly selling appreciated shares of them off to buy other stocks with.
I think that is why just holding a midcap/smallcap/smidcap market cap weighted fund directly makes more sense, which is what I think you had advocated in the past(VOT, VBK, etc).
Agree that both of these will provide great growth. For those wanting a little more exposure to the extended market, you can use FXAIX & FSMAX to get a total market portfolio with the ability to dial the allocation up or down for both the S&P 500 portion and the extended market portion, as well as get a couple hundred more stocks as a kicker.
I’ve seen these funds compared with Scwab and Vanguard. Can you do a deep dive breakdown? Fidelity has their ZERO funds but there doesn’t seem to be much of a difference between those either.
Invest in both . Great returns so far. Slow and Steady.
So your overlapping the index you only need one just take FZROX
My company doesn’t provide the S&P 500 but they do provide the total market index fund. Which is pretty close. Thanks for the info brother.
It’s was a nice analysis .Helped me understand the chart too
Glad it helped! THANK YOU for watching and weighing in with a comment! =)
FSKAX has a turnover rate of 3% and pays out dividends semi-annually. Does this make it an attractive fund for a large investment (over six figures) in a taxable (brokerage) account?
Consider making a vid on the differences in terms of paying taxes with holding an index fund in taxa le accnt vs a tax protected accnt like a roth ira. Also maybe tell us how it is prolly better to hold an etf quivalent of an index fund we may like in a taxable so as to avoid paying taxes on the cap gains distrib that index funds pay out(which become a wash becuz the NAV of the fund drops equal to the pay out we get and were just stuck with paying taxes on the cap gain distribution) thnks
Does it make any sense to have both or should you be in only one?
GREAT QUESTION! The portfolios overlap A LOT — there is no HARM in holding both but you are not really getting added BENEFIT. Hope that helps! THANK YOU for watching!
I am a beginner investor and invested in both! still learning but happy I came across your channel!
Welcome aboard! THANK YOU for subscribing and watching!
Can you make a video on how and when to get access to the returns/dividends? Any time? Or at a specific age like the 401k? Thank you!
HI MARTHA! Getting access to the dividends is more about what type of account you are using. IF you are investing in a retirement account such as a Roth IRA, IRA or 401k then you cannot access this money unless you pay a penalty. IF you are investing in a taxable brokerage account then you can access the dividends immediately. Your brokerage account will give you the option to either reinvest dividends or have them paid to you. Hope that helps! THANK YOU for watching Martha and for leaving your $0.02 in the comments! 😎👍🏻
I’m planning to add sp500, international and small cap.. since these both kinda Overlap will work good having either one and 2 more
Thank you for the in depth comparison. This was very helpful!
Glad it was helpful Tafuny! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
Hello Joe! I am trying to decide between these two funds currently I invested in FSKAX with $3000, I am 22 and plan to keep putting in money till I retire and just feed off the compounding fund. I was wondering given my situation which one of these will give a higher return in the long run? Thank you!
GREAT QUESTION! Honestly both investments provide very similar returns. IF I had to choose one I would probably go with the Total Stock Market or perhaps the Fidelity ZERO Total Market for additional diversification. Hope that helps! THANK YOU for watching and for leaving your $0.02 in the comments! 😎👍🏻
@The Average Joe Investor Thank you!!
In your opinion is it risky to only invest in the fxaix? Since it is such a large portfolio of funds I think it has good diversification but I could be wrong. I’m still learning!
GREAT QUESTION! It definitely depends on your timeframe. IF you have a 20-30 year timeframe for investing and the market is down 40%, who cares. You don’t need the money right now. IF you are retiring soon then I would say it is DEFINITELY RISKY to have all of your money in the S&P 500. Hope I answered your question! THANK YOU for watching L S and for leaving your $0.02 in the comments! 😎👍🏻
Simple straight to the point love this video
THANK YOU for that feedback Don and for watching/leaving your $0.02 in the comments. I appreciate it! 😎👍🏻
Great video! It had me investigate my portfolio.
I have been invested in FXAIX and FBALX for years. I have 75% of my portfolio in 500 Index and 25% in Balanced. After watching this video I checked on my percentages of stocks in 500 Index. Zero percent in small cap, 15% in mid cap & 85% in large cap. Do you think it would make sense for me to trade my Balanced fund & buy FSMDX to give me more exposure to mid caps?
Hi Joe , thank you for this valuable information, I’m new here , so I was wondering if I should sell my funds from FXAIX and buy FSKAX intead ? Im trying to build my portfolio to have a more diversified one, also quite interested on international funds
Thank you for your channel and your information. You take the data and math to present facts, not hype. Much appeciated!