7 Best Fidelity Index Funds for Beginners (2025 List)

7 Best Fidelity Index Funds for Beginners (2025 List)

Index funds are arguably the best approach when it comes to investing in the stock market for most people. As Warren Buffett himself noted, you don’t need to pick stocks to become a millionaire; investing in low-fee index funds is often the optimal strategy. Fidelity, with its diverse offerings ranging from crypto ETFs to Fidelity Zero Index Mutual Funds, truly has something for everyone.

This guide will walk you through the seven best Fidelity index funds and ETFs worth considering, along with step-by-step instructions on how to invest.

1. Fidelity 500 Index Fund (FXAIX)

• Benchmark: Aims to replicate the performance of the S&P 500 Index as closely as possible. The S&P 500 tracks the 500 largest publicly traded U.S. companies and is market-value weighted, meaning larger companies have more influence.
• Holdings: A significant portion (around 34%) is allocated to its top 10 holdings, dominated by tech giants like Apple, Microsoft, and Nvidia. Information Technology makes up almost 31% of the sector allocation.
• Expenses: Extremely low net expense ratio of 0.015%, which is even half the cost of Vanguard’s S&P 500 ETF (VOO) at 0.03%.
• Key Feature: Exclusively available for purchase through the Fidelity Investment platform. It’s a top choice for broad, low-cost U.S. equity exposure.

2. Fidelity Large Cap Growth Index Fund (FSPGX)

• Benchmark: Aims to replicate the performance of the Russell 1000 Growth Index.
• Holdings: Features a much higher weight in Information Technology (around 48%) compared to the S&P 500 fund, with an even greater concentration in big tech growth names like Apple, Microsoft, and Nvidia within its top holdings.
• Key Feature: This is a more aggressive investment. While it could offer higher potential returns in a strong economy, it may experience larger drops during bear markets due to increased risk.
• Expenses: Net expense ratio of 0.035%, still very inexpensive relative to industry averages.
• Purchase: Exclusive to the Fidelity platform.

3. Fidelity US Bond Index Fund (FXNAX)

• Benchmark: Tracks the performance of the overall U.S. bond market.
• Holdings: Composed of approximately 42% U.S. Treasuries (safest bonds), 26% corporate bonds, and 25% mortgage-backed securities (MBS). Around 93.7% U.S. exposure, 6.3% foreign bond exposure. Roughly 70% is in top-tier U.S. Government bonds, with the rest in investment-grade categories (Triple B or better).
• Key Feature: As you get older, allocating a portion of your portfolio to bonds can limit downside potential during market corrections or crashes. Bonds offer less return potential than stocks but are significantly less risky.
• Investment Rule: Many follow the “120 rule”: subtract your current age from 120 to determine the percentage you might allocate to stocks, with the rest in bonds. (e.g., 35 years old = 85% stocks, 15% bonds).
• Expenses: Net expense ratio of 0.025%, very reasonable.
• Purchase: Exclusive to Fidelity. (Note: The Fidelity Total Bond ETF, FBND, is available through any brokerage account).

4. Fidelity ZERO Total Market Index Fund (FZROX)

• Benchmark: Aims to provide broad exposure to a large portion of the entire U.S. stock market, including a blend of large, mid, and small-cap companies, holding 2,624 individual stocks.
• Key Feature: As one of Fidelity’s “Zero Index Mutual Funds,” it boasts zero minimums to invest and zero expenses for fund management, making it extremely popular.
• Holdings: Similar sector spread to the Fidelity 500 fund (around 30% in Information Technology), but with less concentration in the top 10 due to its broader market exposure to thousands of companies. This makes it slightly more aggressive than the Fidelity 500 fund.
• Expenses: Net expense ratio of 0.00%.
• Purchase: Exclusive to the Fidelity platform.

5. Fidelity ZERO International Index Fund (FZILX)

• Benchmark: Aims to provide broad exposure to the international stock market, excluding the U.S. Stock Market.
• Holdings: Top sectors include Financials, Industrials, Information Technology, and Consumer Discretionary. Country diversification is led by Japan, followed by the UK, Canada, France, etc.
• Key Feature: Suitable for those who prefer to diversify their portfolios outside of just U.S. equities. However, remember the U.S. stock market has historically been the best-performing market long-term, so this is often used as a “garnish” to a well-rounded portfolio.
• Expenses: Net expense ratio of 0.00%.
• Purchase: Exclusive to the Fidelity platform.

6. Fidelity Wise Origin Bitcoin Fund (FBTC)

• Benchmark: Has a 100% allocation into Bitcoin.
• Key Feature: A very popular method for gaining exposure to Bitcoin without needing to go through a crypto exchange or manage self-custody.
• Expenses: Net expense ratio of 0.25%. While higher than the previous index funds, it reflects its newness and the nature of crypto investments.
• Purchase: Available for purchase through any brokerage platform (e.g., Robinhood).

7. Fidelity MSCI Information Technology Index ETF (FTEC)

• Benchmark: Aims to replicate the MSCI USA Information Technology Index, which tracks the performance of large and mid-cap U.S. equities within the information technology sector.
• Holdings: Highly concentrated in big tech growth companies like Apple (17.5%), Microsoft (15.5%), and Nvidia (15%). Information Technology makes up 99.63% of its sector exposure.
• Key Feature: A diversified investment into U.S. tech giants. Ideal if you are bullish on the long-term growth of the technology sector.
• Expenses: Net expense ratio of 0.08%.
• Purchase: Available for purchase through any brokerage platform.

How to Invest via Fidelity or Brokerage Platforms

To buy a Fidelity ETF (e.g., FBTC) using Robinhood:

1. Log in to your Robinhood account (or sign up and deposit funds).
2. Use the search icon to type in the ETF symbol (e.g., FBTC).
3. Click “Buy,” enter the dollar amount you wish to invest, and swipe up to confirm the order.

To buy a Fidelity Index Mutual Fund (e.g., FXAIX) using the Fidelity App:

1. Log in to your Fidelity account and navigate to your individual account.
2. Click the search icon and type in the fund symbol (e.g., FXAIX) or the full fund name.
3. On the fund’s page, click “Buy.”
4. Choose a one-time purchase or set up recurring investments, then enter the amount.
5. Preview and place the order.
6. Note: Mutual fund orders are typically settled at the end of the trading day and will reflect in your account the following business day.

Investing in index funds offers a straightforward and effective way for beginners to participate in stock market growth without the complexities of picking individual stocks. Fidelity provides a wide range of low-cost, and even zero-fee, index funds, along with emerging crypto ETFs, catering to various investment preferences and risk tolerances.

Regardless of which fund you choose, always conduct your own research and make investment decisions based on your personal financial situation and goals.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, and past performance is not indicative of future results.