It may pull from a shorter list of securities, but those 500 stocks are the top-performing companies in the US. That means each stock in the FSKAX index fund represents a slice of the market's best.
When you invest in a total stock market index fund, you are essentially buying a particular slice of the stock market, and not just one or a few individual stocks. FSKAX provides exposure to a wide range of companies across various sectors, leading to diversification and reduced risk.
Jesse Cramer's 'lazy investing' strategy is simple: 'Own a few funds, keep costs low, keep it diversified, and then rebalance on a regular basis.' FSKAX perfectly aligns with this strategy, allowing investors to achieve their financial goals while keeping the investment process hassle-free.
FSKAX does have a slightly higher expense ratio, so FZROX is a better choice if you're trying to avoid fees. But if you're looking for a more established fund with a proven track record, FSKAX is worth considering.
Last year was particularly challenging for many investors. Recession fears sent the S&P 500 (^GSPC -0.12%) and the Nasdaq Composite (^IXIC) into a downward spiral. However, FSKAX managed to outperform the market, showcasing its resilience during uncertain times.
When looking through Fidelity's fund options for your IRA, FSKAX and FXNAX are good options to start with. FSKAX provides exposure to stocks, while FXNAX focuses on bonds. This combination can help manage your tax-cost ratio while providing a balanced investment portfolio.
These funds can help manage your tax-cost ratio while providing stock and bond exposure. FSKAX, with its broad market representation, offers potential growth, while FXNAX, with its bond holdings, provides stability and income.
At the end of the day, it really comes down to your investing plan and the investment brokerage you prefer. If you like Fidelity and its offerings, FSKAX can be an excellent choice to include in your portfolio.
The large number of mutual funds has little to do with serving investors' best interests. Here are two red flags investors can use to avoid potential pitfalls: high expense ratios and lack of diversification. FSKAX, on the other hand, offers low expenses and broad market exposure.
