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Fidelity Offers Low Cost Equity and Bond Index Funds
For investors looking for both choice and value, Fidelity offers a full line-up of low cost equity and bond index funds.
How Do Index Funds Work?
An index fund is designed to track the performance of a specific stock or bond index. For example the Fidelity Spartan 500 Index Fund seeks investment results that correspond to the total return (i.e., the combination of capital changes and income) of common stocks as represented by the Standard & Poor's 500 Index.
- Become a Fidelity customer
- Transfer index fund assets from another firm
- View our low cost equity and bond index funds
- Call 1-800-FIDELITY or find an Investor Center
Fidelity's Index Funds
| Domestic Equity | |
|---|---|
|
Investor Class (fees set at 10 basis points) |
Fidelity Advantage Class (fees set at 7 basis points)1 |
| Spartan® 500 Index Fund | Spartan® 500 Index Fund |
| Spartan® Extended Market Index Fund | Spartan® Extended Market Index Fund |
| Spartan® Total Market Index Fund | Spartan® Total Market Index Fund |
| Spartan® US Equity Index Fund | Spartan® US Equity Index Fund |
| International Equity | |
|
Investor Class (fees fixed at 20 basis points - currently offered at 10) |
Fidelity Advantage Class (fees fixed at 17 basis points - currently offered at 7) |
| Spartan® International Index Fund2 | Spartan® International Index Fund2 |
| Bond | |
|
Investor Class (fees set at 20 basis points) |
Fidelity Advantage Class (fees set at 10 basis points) |
| Spartan® Short-Term Treasury Bond Index Fund | Spartan® Short-Term Treasury Bond Index Fund |
| Spartan® Intermediate Treasury Bond Index Fund | Spartan® Intermediate Treasury Bond Index Fund |
|
Spartan® Long-Term Treasury Bond Index Fund |
Spartan® Long-Term Treasury Bond Index Fund |
You're eligible for Fidelity Advantage Class shares if you have $100,000 or more invested in a single position in a Spartan index fund.
Other Funds
In addition, Fidelity offers two other index funds:
Fidelity Four-In-One Index Fund – Invest in a combination of four Fidelity stock and bond index funds.
Fidelity Nasdaq Composite Index Fund – For investors seeking a total return that corresponds to that of the Nasdaq Composite Index.
Why Costs Matter for Index Funds?
Since an index fund will generally hold all of the component securities of the index, in theory the fund will lag behind the performance of the index by its expense ratio (other factors will also impact the performance both positively and negatively). Therefore, the expense ratio is generally recognized as the most important factor in choosing between similar index funds.
Why Invest in Index Funds at Fidelity?
- Choice – With a broad lineup of equity and bond index funds, Fidelity has the depth of index products to meet almost any customer need. View our low cost equity index funds and bond index funds.
- Value – Fidelity equity index funds are priced as low as just 7 basis points1 (0.07%) and our Bond Index funds are priced as low as 10 basis points. Unlike actively managed funds, an index fund's performance relative to its benchmark is typically directly tied the fund’s cost. Therefore, Fidelity adds value to indexing by offering index funds with some of the lowest costs in the industry.
- Advantage – Most Fidelity index funds have two classes – Investor and Fidelity Advantage. Each class invests in the same "pool" (or investment portfolio) of securities and has the same investment objectives and policies the Fidelity Advantage Class has a lower expense ratio.
- The Fidelity Advantage Classes of the Spartan 500 Index Fund, Spartan US Equity Index Funds, Spartan Total Market Index Fund, and Spartan Extended Market Index Funds are contractually capped at 0.07%, which cannot be increased without shareholder vote.
- You must consider that the Spartan International Index Fund Investor Class and Fidelity Advantage Class, which track the MSCI EAFE™, currently have expense ratios of 10 bps and 7 bps, respectively, because the fund's investment advisor has agreed, voluntarily and indefinitely, to reimburse the fund classes to the extent that annual operating expenses exceed 10 bps and 7 bps, respectively. This arrangement may be discontinued at any time. Absent such reimbursement, fund class expenses are contractually limited to 20 bps and 17 bps, respectively. All things being equal, a fund with lower expenses may offer higher returns than a fund with higher expenses.
All indices referenced are unmanaged and you may not invest directly in an index.
Before investing, consider the fund's investment objectives, risks, charges and expenses. Contact Fidelity for a prospectus containing this information. Read it carefully.
Fidelity Distributors Corporation, 82 Devonshire Street, Boston, MA 02109
