Published on: 2025-04-11
Updated on: 2026-01-08
Looking to grow your wealth with low-cost, high-performance investments?
As of January 2026, Fidelity Investments offers a broad selection of index funds tailored to different investment goals and risk profiles.
These funds continue to be recognized for their ultra‑low expense ratios, diversified holdings, and competitive performance in a low‑cost environment. In this updated list, we highlight eight of the best
Fidelity index funds are worth considering, each selected for their cost efficiency, diversification benefits, and suitability across various strategic allocations.
Fidelity ZERO Large Cap Index Fund (FNILX)
Fidelity ZERO Total Market Index Fund (FZROX)
Fidelity ZERO International Index Fund (FZILX)
Fidelity 500 Index Fund (FXAIX)
Fidelity Total Market Index Fund (FSKAX)
Fidelity Mid Cap Index Fund (FSMDX)
Fidelity U.S. Bond Index Fund (FXNAX)
Fidelity Large Cap Growth Index Fund (FSPGX)
Fidelity International Index Fund (FSPSX)
Fidelity Emerging Markets Index Fund (FPADX)
| Fund Name | Ticker | Expense Ratio | Primary Exposure | Remarks |
|---|---|---|---|---|
| Fidelity ZERO Large Cap Index Fund | FNILX | 0.00% | U.S. Large-Cap | Zero-fee large-cap exposure; best used inside Fidelity accounts and tax-advantaged plans. |
| Fidelity ZERO Total Market Index Fund | FZROX | 0.00% | U.S. Total Market | Zero-cost access to the full U.S. equity market; excellent long-term core holding. |
| Fidelity ZERO International Index Fund | FZILX | 0.00% | International (Ex-U.S.) | Zero-fee global diversification across developed and emerging markets. |
| Fidelity 500 Index Fund | FXAIX | 0.015% | U.S. Large-Cap (S&P 500) | Industry benchmark fund; highly liquid and structurally efficient core allocation. |
| Fidelity Total Market Index Fund | FSKAX | 0.015% | U.S. Total Market | Broad, all-cap U.S. exposure; preferred core fund for simplicity and scale. |
| Fidelity Mid Cap Index Fund | FSMDX | 0.025% | U.S. Mid-Cap | Diversifies beyond mega-caps; historically strong contributor to long-term returns. |
| Fidelity U.S. Bond Index Fund | FXNAX | 0.025% | U.S. Investment-Grade Bonds | Core fixed-income anchor; improved return profile in a higher-yield environment. |
| Fidelity Large Cap Growth Index Fund | FSPGX | 0.035% | U.S. Large-Cap Growth | Growth tilt toward technology and innovation-driven companies. |
| Fidelity International Index Fund | FSPSX | 0.035% | Developed Markets (Ex-U.S.) | Focused exposure to Europe and Asia; complements U.S.-centric portfolios. |
| Fidelity Emerging Markets Index Fund | FPADX | 0.075% | Emerging Markets | Higher-cost but strategic allocation to faster-growing global economies. |
FNILX offers broad exposure to U.S. large-cap equities, tracking a proprietary index with a composition similar to the S&P 500.
With a 0.00% expense ratio, FNILX is an excellent choice for cost-conscious investors seeking exposure to leading U.S. companies. In 2026, it remains a strong zero-fee option for tax-advantaged accounts such as IRAs, where portability is not a concern.
FZROX offers comprehensive exposure to the entire U.S. equity market for investors seeking broad diversification.
This fund includes large-, mid-, and small-cap stocks with no management fee. It is a strong core holding for Fidelity investors seeking cost efficiency and a straightforward investment approach.
FZILX provides international diversification by offering access to stocks in both developed and emerging markets. Its zero-fee structure helps balance a U.S.-focused portfolio.
In 2026, it remains an efficient option for global equity exposure without traditional fees.
FXAIX is a leading option for passive investing, closely tracking the S&P 500 Index and providing significant exposure to major companies such as Apple, Microsoft, and Nvidia.
With ultra-low tracking error and high liquidity, FXAIX is a foundational fund for long-term wealth building and exposure to the 500 largest U.S. companies.
FSKAX takes a total market approach, covering the full range of U.S. equities across all market capitalizations. It is an ideal single-fund solution for investors seeking broad diversification and tax efficiency in a brokerage account.
FSMDX tracks mid-cap companies, offering a balance of operational stability and growth potential.
Including FSMDX in a portfolio helps reduce concentration risk in mega-cap stocks and adds diversification through exposure to potential future market leaders.
As a premier fixed-income holding, FXNAX tracks the Bloomberg U.S. Aggregate Bond Index. It provides exposure to investment-grade debt, including U.S. Treasuries and corporate bonds. With yields remaining attractive in 2026, FXNAX is an essential tool for portfolio rebalancing, income generation, and capital preservation.
FSPGX targets investors seeking aggressive growth by focusing on U.S. companies with strong earnings momentum, particularly in technology and innovative sectors. It benefits from long-term trends in AI, software, and digital transformation.
FSPSX provides exposure to developed international markets outside the U.S. and Canada, mainly in Europe and the Pacific Basin. It helps manage geographic risk and offers stability against domestic market volatility.
FPADX tracks equities in developing nations, capturing growth from evolving global supply chains and demographic trends. In 2026, it is best used as a satellite allocation to add high-growth potential to a diversified portfolio.
The Mistake: Saying FNILX (ZERO fund) is the S&P 500.
The Fix: Clarify that ZERO funds (FNILX, FZROX, FZILX) use Fidelity's own custom indices. They perform similarly, but they aren't the official index funds (FXAIX, FSKAX).
The Mistake: Not mentioning that ZERO funds are hard to move.
The Fix: Stress that ZERO funds generally cannot be transferred "in-kind" (as the fund shares) to another brokerage. You usually must sell them first to transfer the cash, which triggers a taxable event in a regular brokerage account. For this reason, FXAIX is often safer for taxable accounts.
The Mistake: Making the 0.00% vs. 0.015% fee difference seem like a big deal.
The Fix: Point out that the cost difference is tiny, about $1.50 per year per $10,000 invested. The decision should be based on portability (see #2), not on saving pennies in fees.
The Mistake: Analyzing FQIFX (Target Date fund) like it's a single stock fund.
The Fix: Remind readers that this fund is an all-in-one retirement solution. It automatically holds a mix of stocks and bonds and adjusts its risk over time. It's for hands-off investors.
In early 2026, Fidelity’s index funds are shifting from a period of AI-driven enthusiasm to a focus on practical implementation, aligning with a market that is expanding beyond mega-cap dominance. U.S. equities continue to drive growth, supported by data-center expansion and AI adoption, but index funds such as FSPGX and FXAIX now face more disciplined earnings expectations.
Entering 2026, international exposure through FZILX is increasingly attractive. With the U.S. dollar peaking and non-U.S. markets trading at significant discounts, international equities can help offset domestic concentration risk.
Target-date funds such as FQIFX (Fidelity Freedom Index 2040) are adapting to persistent inflation near 3% by increasing allocations to inflation-sensitive assets and high-quality bonds, creating a more resilient defensive mix.
Ultimately, the 2026 outlook suggests that while Fidelity’s core offerings remain robust, the "winner-takes-all" dynamic is fading. Success in the coming year will likely favor balanced allocations that leverage cyclical rotations and global diversification to navigate a complex landscape of moderating growth, persistent price pressures, and shifting geopolitical fragmentation.
Fidelity funds are known for ultra-low expense ratios, diversified holdings, and strong historical performance, making them cost-efficient and reliable for long-term investing.
FXAIX tracks the S&P 500 with a very low expense ratio, while FNILX (Fidelity ZERO Large Cap Index Fund) also tracks large-cap U.S. stocks with zero fees, making it ideal for cost-conscious investors.
Yes. Funds like FZROX and FNILX offer broad market exposure at minimal or zero cost, making them beginner-friendly options for building a diversified portfolio.
Yes. Fidelity ZERO funds are fully diversified, long-term index funds managed with the same rigor as Fidelity’s traditional products. The zero expense ratio does not increase risk; the key consideration is portability, as these funds are best suited for investors who plan to keep assets at Fidelity.
Both are strong options. S&P 500 funds like FXAIX focus on large-cap U.S. stocks, while total market funds such as FSKAX or FZROX offer broader diversification by including mid- and small-cap companies.
When selecting index funds, it’s crucial to consider investment goals, risk tolerance, and time horizon. Fidelity’s range of index funds provides diversified options to meet a variety of investor needs.
These ten top Fidelity index funds represent core, growth, mid-cap, international, and retirement-focused strategies.
Whether you are beginning to invest, planning for retirement, or rebalancing your portfolio, these funds provide strong foundations, growth potential, and cost efficiency in 2026.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment, or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction, or investment strategy is suitable for any specific person.
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