S&P 500 Fidelity Funds
Depending on your financial situation and goals, there are many different S&P 500
fidelity funds that you can choose from. Some of them are Vanguard, Fidelity,
Schwab, and Parnassus.
Vanguard Growth Index
Investing in the Vanguard Growth Index S&P 500 Fidelity Fund (VFINX) is a great way to diversify your portfolio. This fund invests in the S&P 500 index and focuses on large-cap growth stocks. Historically, this fund has outperformed its benchmark. This fund invests in stocks and bonds. It has a low expense ratio and offers a competitive dividend yield.
This fund is a passively managed index fund. Its main goal is to achieve a market level return while maintaining its low cost. The fund holds shares of over 500 companies. Its largest holdings are consumer service and industrial companies. It is not recommended for investors with an aggressive risk tolerance.
This fund has a minimum investment of $3,000. It is a balanced fund that invests in both stocks and bonds. The fund has a relatively low expense ratio of 0.04%. The fund is suitable for long-term investors with a low risk tolerance.
This fund invests in the S&P500 index, but also includes companies from emerging markets and developed markets. The fund has a relatively low minimum investment of $3,000. It also has a moderate risk allocation.
The fund holds shares of companies that are in the healthcare, technology, and financial services industries. This fund also has a low expense ratio.
The Fidelity 500 Index Fund is another passively managed fund. It holds shares of the S&P 500 index, along with shares of other companies that fall in the S&P 500 growth index. The fund offers a competitive dividend yield and historically outperformed its benchmark.
iShares Core S&P 500
iShares Core S&P 500 ETF is one of the largest S&P 500 index ETFs in the market. It has a 0.03% expense ratio. Its net assets are close to $295 billion. In the last month, the fund took in close to $6.6 billion.
iShares is not the only low-fee fund provider. Vanguard recently reached the $100 billion asset mark with its Total Stock Market ETF. The iShares S&P 500 ETF is designed differently than the Vanguard product.
The iShares S&P 500 is the largest S&P 500 index ETF by assets. It has a very low expense ratio and is comparable to the Vanguard product. However, iShares’ product may not be ideal for holding throughout 2022.
The SPDR S&P 500 ETF is another popular S&P 500 index fund. It tracks the index close to perfection. However, the fund has to trade out dozens of components a year based on changes in the index.
Fidelity offers a total stock market index fund with almost $900 million in assets. It also promotes iShares ETFs. iShares funds are powered by BlackRock’s portfolio management. BlackRock is an independent financial services company. BlackRock makes no warranty or guarantee about the data it provides.
State Street’s SPDR S&P 500 ETF recently passed the $100 billion asset mark. It has been trading dozens of times more frequently than Vanguard shares. The SPDR S&P 500 ETF holds dividends in cash. In some cases, dividends from the underlying holdings are subject to period over period volatility.
Schwab S&P 500 Index Fund
Whether you are looking for an entry-level fund or a seasoned investor, the Schwab S&P 500 Index Fund is a solid choice. It has a great performance history, as well as a nice 1.42% dividend yield.
The S&P 500 Index Fund tracks the 500 largest companies in the United States. The index is widely regarded as the premier benchmark for large cap stocks. The index covers about 80 percent of the investable market capitalization in the U.S. equity market.
The S&P 500 Index Fund is a great way to align your investments with your investment strategy. Unlike actively managed mutual funds, which require a lot of fund management and research, S&P 500 index funds have a relatively low expense ratio.
Although S&P 500 funds are low cost, they may not be the best option for all investors. For instance, the Charles Schwab fund has a slightly higher expense ratio than the Fidelity fund. In addition, some S&P 500 index funds charge high fees. Investors may also find that investing in an S&P 500 fund requires a brokerage account. They can buy the funds in round-dollar amounts. Some funds may have a minimum investment amount or a minimum amount of time to invest. Choosing the fund that is best for you is a matter of comparison shopping.
Investors with a long-term investment goal may want to consider investing in Schwab’s emerging market funds. Between 2012 and 2021, these funds delivered total returns of 67%.
Among actively managed funds, the Fidelity Contrafund (FCNTX) has consistently outperformed the S&P 500. With more than $109 billion in assets, this fund is one of the largest and best. But there are a few key issues to consider before choosing it as your main investment.
Fidelity Contrafund is an active domestic equity fund that seeks to provide long-term capital growth and stewardship of shareholder capital. The fund invests in mainly large U.S. equities, focusing on information technology and communications services. Its top holdings are Berkshire Hathaway, Apple, Facebook, and Amazon.
The Fidelity Contrafund is managed by William Danoff, who joined Fidelity in 1986 as a securities analyst. He holds a Master of Arts degree from Harvard University and a MBA from the University of Pennsylvania. Danoff has an investment objective of capital appreciation and growth stocks. He uses fundamental analysis to select investments.
The Fidelity Contrafund’s biggest holdings are Internet stocks. It also owns Alphabet (GOOGL) and Amazon. However, despite the fund’s large focus on Internet stocks, it still holds well-established, large companies.
The fund invests in large-cap stocks with above-average earnings growth. It holds more than 300 securities. Its largest holding is Facebook, with 5% of the portfolio. The rest of the portfolio is spread across technology, energy, and financial stocks. Fidelity Contrafund’s top five holdings account for 20% of the fund’s portfolio. This makes the fund less nimble than large growth funds.
Whether or not you have a hankering for a small taste of the good stuff, this fund is a no brainer. They make it their business to keep costs in check. Their flagship fund, the Parnassus S&P 500 fidelity, has an A-grade A+ rating from Morningstar. The fund’s sub-accounts include the Parnassus S&P Mid Cap Growth, the Parnassus S&P Small Cap, and the Parnassus S&P Large Cap. These funds represent the most popular and liquid stocks in the Parnassus universe.
Parnassus Investments is a privately held company. They are best known for their S&P 500 fidelity branded exchange traded funds. They have a knack for picking winners, and their portfolios boast an impressive list of illustrious investors. Some of the aforementioned stocks include Nike, IBM, and Apple. Besides their stock picks, they also have a knack for selecting lesser known companies with a proven track record. For instance, a tad over a year after their genesis, they made an offer to acquire a telecommunications company, but the company opted out. They have since gone on to acquire a number of notable names in the industry.
One thing to watch out for is the fund’s annual fee. In the midst of the recession, the fund’s smallest fund size is a tad over $3 billion. Nonetheless, the fund still manages to maintain an impressive average annual return of 10.1%. The icing on the cake is a relatively low turnover rate, which keeps trading costs down.
Fidelity Select Software & IT Services Portfolio
Among the many mutual fund choices available from Fidelity Investments, the S&P 500 fidelity select software & IT services portfolio is perhaps the most compelling. The fund has a sizable weight in the software and IT services sectors, with more than eighty percent of its assets in the industry. The fund also boasts a healthy roster of stellar fund managers who have managed to keep costs to a minimum. For the bargain hunter on a budget, the fidelity select software & IT services fund is an excellent choice. The fidelity select software & IT services fund has been a steadfast part of the Fidelity family of funds for over a decade. In fact, the fund has been ranked as the best Fidelity Fund since its inception. The fund’s performance has been exemplary, with the top five holdings posting gains in the past five years. The fund also boasts a low expense ratio of 0.92 percent. The fund is an excellent choice for any investment portfolio. The fund is particularly well-suited for long-term investors, such as yours truly. Among the fund’s strengths is its commitment to customer service. The fund also boasts a robust research and development department that has kept up with the industry’s best.