FSKAX
Fidelity Total Market Index Fd
Broad Exposure with Strategic Focus
The Fidelity Total Market Index Fund (FSKAX) stands out for its comprehensive exposure to the U.S. stock market, investing at least 80% of its assets in common stocks included in the Wilshire 5000 Total Market Index. This strategic focus allows investors to benefit from the performance of a broad range of U.S. stocks, making it an attractive option for those seeking diversified market exposure. Managed by Fidelity Investments, a leader in the financial services industry, FSKAX is designed to provide investment results that correspond to the total return of the U.S. stock market. Its low expense ratio of 0.015% further enhances its appeal, offering cost-effective access to a wide array of equities. This fund is particularly suitable for investors looking for a blend of growth and income, as it aims to capture the overall market’s performance while maintaining a focus on long-term capital appreciation.
At A Glance
Executive Summary
FSKAX offers broad U.S. stock exposure with low costs, ideal for growth and income-focused investors.
– Low expense ratio of 0.015% enhances net returns. – Broad exposure to U.S. stocks through the Wilshire 5000 Index. – Strong historical performance with a 10-year return of 12.94%. – High correlation with benchmark ensures alignment with market trends.
– High exposure to large-cap stocks may limit diversification. – Limited international exposure with 99.21% in U.S. equities. – Potentially high volatility due to market cap concentration.
Performance Excellence in Diverse Market Conditions
FSKAX has demonstrated impressive performance across various time frames, consistently outperforming its benchmark, the Wilshire 5000 Total Market Index. With a 10-year annualized return of 12.94%, it has proven its ability to deliver strong results over the long term. The fund’s one-year return of 39.46% highlights its resilience and adaptability in capturing market upswings, particularly during periods of economic recovery. Compared to its category peers, FSKAX’s performance remains competitive, often surpassing similar funds in terms of returns. This success can be attributed to its strategic allocation across a broad spectrum of U.S. equities, allowing it to capitalize on growth opportunities in various sectors. The fund’s ability to maintain a high correlation with its benchmark ensures that it remains aligned with overall market trends, providing investors with a reliable option for consistent returns.
Navigating Risk with Precision
The Fidelity Total Market Index Fund exhibits a well-balanced risk profile, characterized by a beta of 1.03, indicating a slightly higher sensitivity to market movements compared to its benchmark. Its Sharpe ratio of 0.05 suggests moderate risk-adjusted returns, while the fund’s alpha of 0.62% reflects its ability to generate excess returns relative to the benchmark. With a standard deviation of 3.71%, FSKAX maintains a stable performance, minimizing volatility for investors. The fund’s high R-squared value of 99.23% indicates a strong correlation with the benchmark, ensuring that its performance closely mirrors market trends. Additionally, the fund’s downside risk, measured by a downside risk (UI) of 1.96, is managed effectively, providing investors with a level of protection against adverse market conditions. Overall, FSKAX’s risk management strategy is designed to balance growth potential with stability, making it a suitable choice for risk-conscious investors.
Strategic Holdings and Sector Allocation
FSKAX’s portfolio is strategically diversified across various sectors, with a significant allocation to technology (31.22%), financials (12.90%), and healthcare (11.73%). This sector allocation reflects the fund’s focus on capturing growth opportunities in key areas of the U.S. economy. The fund’s top holdings include industry giants such as Apple Inc., Microsoft Corp., and NVIDIA Corp., which collectively represent a substantial portion of the portfolio. This concentration in leading technology companies underscores the fund’s commitment to investing in high-growth sectors. Additionally, the fund’s allocation to other sectors such as industrials (8.75%) and communications (8.24%) further enhances its diversification, allowing it to benefit from a wide range of economic drivers. FSKAX’s strategic portfolio composition is designed to provide investors with exposure to both established and emerging market leaders, positioning the fund for long-term growth.
Yield and Income Strategy for Diverse Investors
With a yield of 1.14%, the Fidelity Total Market Index Fund offers a competitive income stream for investors seeking both growth and income. This yield is comparable to similar funds, making FSKAX an attractive option for income-focused investors. The fund’s income strategy is centered around its broad exposure to U.S. equities, allowing it to capture dividends from a diverse range of companies. This approach not only provides a steady income stream but also supports the fund’s growth objectives by reinvesting dividends to enhance total returns. For growth-focused investors, FSKAX’s yield complements its strong performance, offering a balanced approach to achieving long-term financial goals. Overall, the fund’s income strategy is designed to meet the needs of a wide range of investors, from those seeking regular income to those focused on capital appreciation.
Cost Efficiency Enhancing Returns
The Fidelity Total Market Index Fund is renowned for its cost-effectiveness, boasting an exceptionally low expense ratio of 0.015%. This minimal cost structure significantly enhances net returns, allowing investors to retain more of their earnings. Compared to category averages, FSKAX’s expense ratio is among the lowest, making it an attractive option for cost-conscious investors. The fund’s low fees are a testament to Fidelity Investments’ commitment to providing value to its clients, ensuring that investors can access a broad range of U.S. equities without incurring high costs. This cost efficiency is particularly beneficial for long-term investors, as it allows for greater compounding of returns over time. By minimizing expenses, FSKAX maximizes the potential for capital growth, making it a compelling choice for those seeking to optimize their investment returns.
Standing Out in a Competitive Landscape
In the competitive landscape of large-cap mutual funds, the Fidelity Total Market Index Fund distinguishes itself through its unique combination of low costs, broad market exposure, and strong performance. Compared to similar funds such as the Schwab Total Stock Market Index Fund (SWTSX) and the Vanguard Institutional Total Stock Market Index Fund (VITPX), FSKAX offers a competitive edge with its lower expense ratio and robust yield. While its peers also provide broad market exposure, FSKAX’s strategic focus on the Wilshire 5000 Total Market Index ensures comprehensive coverage of U.S. equities. This differentiator positions FSKAX as a versatile option for investors seeking a blend of growth and income. Additionally, the fund’s strong historical performance and effective risk management further enhance its appeal, making it a standout choice in the large-cap category.
Future Outlook
The Fidelity Total Market Index Fund is well-positioned for future growth, especially in bullish market conditions. Its broad exposure to U.S. equities makes it a strong candidate for investors seeking to capitalize on economic recovery and growth trends. However, in bearish markets, its high correlation with the benchmark may lead to increased volatility.
Tailored for Growth-Oriented Investors
The Fidelity Total Market Index Fund is ideally suited for growth-oriented investors with a moderate risk tolerance. Its strategic focus on U.S. equities provides ample opportunities for capital appreciation, while its low expense ratio ensures cost-effective access to a diverse range of stocks. The fund’s strong historical performance and competitive yield make it an attractive option for long-term investors seeking a balance between growth and income. FSKAX’s high correlation with the benchmark ensures alignment with market trends, making it a reliable choice for those looking to capitalize on economic growth. Additionally, the fund’s effective risk management strategy provides a level of stability, appealing to investors who prioritize both growth potential and risk mitigation. Overall, FSKAX is a compelling choice for investors seeking a well-rounded investment option that aligns with their financial goals.
Current Market Context and Implications
The current market environment presents both opportunities and challenges for the Fidelity Total Market Index Fund. With interest rates remaining relatively low, the fund’s focus on U.S. equities is well-positioned to benefit from continued economic growth and corporate earnings expansion. The technology sector, which constitutes a significant portion of the fund’s holdings, is poised for further growth as digital transformation accelerates across industries. However, potential tax implications and regulatory changes could impact certain sectors, necessitating careful monitoring. Additionally, geopolitical tensions and inflationary pressures may introduce volatility, underscoring the importance of the fund’s diversified approach. Overall, FSKAX’s strategic allocation and cost-effective structure make it a resilient choice in navigating the current market landscape.
Similar Securities
Vanguard Advice Select Dividend Gr Admrl – VADGX
Fidelity Growth & Income – FGRIX
Fidelity Series LargeCap Value Index Fd – FIOOX
Fidelity Growth Company – FDGRX
Fidelity Value Discovery-K6 – FDVKX
Fidelity Disciplined Equity – FDEQX
Fidelity Blue Chip Value – FBCVX
Fidelity MegaCap Stock – FGRTX
Fidelity SAI Sustainable Sector Fund – FIDJX
Fidelity Equity-Income – FEQIX
Disclaimer: The information provided on this website is for informational purposes only and should not be construed as financial, investment, or other professional advice. PeepFinance does not endorse or recommend any specific securities, investments, or strategies. The opinions expressed are solely those of the authors and are not intended to be used as the basis for any investment decisions. All investments carry risks, and readers are encouraged to conduct their own research or consult with a financial professional before making any financial decisions. PeepFinance and its authors are not responsible for any losses or damages arising from the use of this information.