Published on: 2025-04-11
Updated on: 2025-11-17
Looking to grow your wealth with low-cost, high-performance investments?
As of 17 November 2025, 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 500 Index Fund (FXAIX)
Fidelity ZERO Large Cap Index Fund (FNILX)
Fidelity Total Market Index Fund (FSKAX)
Fidelity ZERO Total Market Index Fund (FZROX)
Fidelity Large Cap Growth Index Fund (FSPGX)
Fidelity Mid Cap Index Fund (FSMDX)
Fidelity Freedom Index 2025 Fund (FQIFX)
Fidelity ZERO International Index Fund (FZILX)
| No. | Fund | Primary Focus | Expense Ratio / Fee | Notes (as of Nov 2025) |
|---|---|---|---|---|
| 1 | Fidelity 500 Index Fund (FXAIX) | Large-cap U.S. equities (S&P 500) | 0.015% | Ultra-low cost core holding; remains a foundational anchor for long-term portfolios. |
| 2 | Fidelity ZERO Large Cap Index Fund (FNILX) | Large-cap U.S. equities, zero-fee | 0.00% | Designed for cost-first investors; delivers broad large-cap exposure with no expense ratio. |
| 3 | Fidelity Total Market Index Fund (FSKAX) | All-cap U.S. equities | Low | Broad coverage across small-, mid-, and large-cap stocks for wide U.S. market diversification. |
| 4 | Fidelity ZERO Total Market Index Fund (FZROX) | All-cap U.S. equities, zero-fee | 0.00% | No-fee total market access; ideal for new investors seeking comprehensive U.S. exposure. |
| 5 | Fidelity Large Cap Growth Index Fund (FSPGX) | Growth-focused large-cap stocks | Moderate | Concentrated in innovation-driven companies; higher upside with added volatility. |
| 6 | Fidelity Mid Cap Index Fund (FSMDX) | Mid-cap U.S. equities | Moderate | Blends growth potential with stability; benefits from mid-cap cycles and dynamic businesses. |
| 7 | Fidelity Freedom Index 2025 Fund (FQIFX) | Target-date retirement (2025) | Moderate | Automatically adjusts asset mix as retirement approaches; fitting for near-retirees who prefer a hands-off strategy. |
| 8 | Fidelity ZERO International Index Fund (FZILX) | International developed & emerging markets, zero-fee | 0.00% | Offers global diversification at zero cost; expands exposure beyond U.S. markets. |
FXAIX remains one of the most reliable long-term index funds, tracking the S&P 500 to provide exposure to leading U.S. companies such as Apple, Microsoft, Amazon, and Nvidia.
Its ultra-low expense ratio of 0.015% makes it an extremely cost-efficient way to invest in the broader U.S. market.
As of November 2025, FXAIX continues to benefit from resilient corporate earnings, robust consumer spending, and ongoing technological innovation. For investors seeking steady growth and a strong foundation in their portfolio, FXAIX remains a top-tier choice.
FNILX is part of Fidelity's revolutionary "ZERO" series, eliminating expense ratios. It tracks the Fidelity U.S. Large Cap Index, designed to offer similar exposure to the S&P 500 without licensing costs.
This makes FNILX ideal for beginner investors who want cost savings without sacrificing quality.
In 2025, large-cap stocks continue to outperform due to their strong balance sheets and ability to weather economic headwinds. FNILX's zero fees allow compounding returns to work even harder, particularly for long-term investors.
FSKAX is the ultimate all-in-one solution for those seeking comprehensive market exposure. Unlike funds focusing solely on large-cap stocks, FSKAX includes small and mid-cap stocks.
In the current market climate, where small caps show signs of a resurgence following inflation adjustments and rate stability, having exposure across all market capitalisations provides both growth potential and balanced risk.
Its low expense ratio and broad diversification make it an essential building block for any diversified portfolio.
FZROX, similar to FSKAX, provides total U.S. market exposure without an expense ratio. It's particularly appealing for new investors or those with smaller portfolios who want instant diversification at zero cost.
As 2025 economic conditions shift toward steady recovery and sector rotation becomes more common, accessing every segment of the U.S. equity market through FZROX offers a built-in hedge against volatility in any single sector.
FSPGX targets growth-oriented large-cap companies, particularly leaders in technology, digital services, and healthcare innovation.
With sectors like AI, cloud computing, and biotechnology powering market performance in 2025, FSPGX offers exposure to companies shaping the future of growth investing.
Its diversified allocation to high-momentum firms allows investors to participate in market upswings with strong capital appreciation potential. While it carries slightly higher volatility than a core index fund, FSPGX remains a compelling choice for those seeking aggressive growth opportunities.
Mid-cap stocks offer a strategic balance between the growth potential of small caps and the stability of large caps. FSMDX provides targeted exposure to this often-overlooked segment, historically known for strong performance during periods of economic expansion.
As of 2025, mid-cap companies are expected to benefit from increased merger activity and sector-specific rebounds, particularly in industrials and fintech.
Including FSMDX in a portfolio can enhance diversification while positioning investors to capture growth from dynamic, high-potential enterprises.
FQIFX is designed for investors nearing retirement or seeking a hands-off investment approach. This target-date fund automatically adjusts its asset allocation, gradually reducing exposure to equities and increasing bonds as the 2025 retirement horizon approaches.
The fund offers a balanced mix of growth and capital preservation, eliminating the need for manual rebalancing.
In today’s market environment where stability and risk management are key, FQIFX provides a convenient, well-structured solution for investors focused on retirement readiness.
FZILX offers zero-fee access to internationally developed and emerging markets. While domestic equities dominate many portfolios, 2025 presents renewed opportunities abroad, especially in Asia and Europe, where growth is rebounding and currencies are strengthening relative to the U.S. dollar.
With no expense ratio, FZILX is a cost-efficient way to gain global exposure and offset home-country bias. International diversification is crucial in today's interconnected economy, and FZILX makes that affordable and accessible.
1. Treating ZERO Funds as S&P 500
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).
2. Ignoring Portability for Taxable Accounts
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.
3. Hyping the Fee Difference
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.
4. Misunderstanding Target Date Funds
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.
Fidelity’s index funds appear well-positioned heading into late 2025 and beyond, but the road ahead looks more balanced than explosive. U.S. stocks are still supported by a resilient economy and powerful themes like AI, cloud infrastructure, and data-center expansion, which helps funds such as FSPGX and FXAIX.
Yet high valuations mean future returns may be steadier rather than spectacular, making diversification more important.
This is where total-market, mid-cap, and zero-fee funds shine: mid-caps, in particular, could benefit from renewed M&A activity and cyclical rebounds.
International exposure through FZILX also becomes increasingly valuable as non-U.S. markets trade at significant discounts and show signs of recovery.
Target-date funds like FQIFX will keep shifting toward a more defensive blend of stocks and bonds as macro uncertainty lingers.
The overall outlook suggests that Fidelity’s lineup remains strong, but balanced, diversified allocations will likely outperform concentrated bets as global markets navigate slower growth, persistent inflation pressures, and ongoing geopolitical crosswinds.
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 but with zero fees, 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.
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 eight top Fidelity index funds represent core, growth, mid-cap, international, and retirement-focused strategies.
Whether you’re starting your investment journey, planning for retirement, or rebalancing an existing portfolio, these funds offer strong foundations, growth potential, and cost efficiency as of November 2025.
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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