Researching Fidelity Index Funds for Financial Independence

Which Fidelity Index Fund Should You Pick? | FSSNX FECGX FISVX | My Journey to Financial Independence

In this video I’ll discuss Fidelity Mutual Funds, specifically Fidelity’s small cap index funds. I’ll discuss what to do before investing, understanding your risk tolerance and building a diversified portfolio. Using the Fidelity Mutual Fund Screener, I’ll walk us through the holdings of Fidelity’s low cost small cap index funds: Fidelity® Small Cap Index Fund (FSSNX), Fidelity® Small Cap Growth Index Fund (FECGX), Fidelity® Small Cap Value Index Fund (FISVX). I’ll also talk about how to understand the risk of a fund as well as it’s fees and performance. I believe this video will be helpful all investors whether you are a beginner or more advanced. This includes folks transferring from Robinhood to other brokerages and opening Roth IRAs!

00:00 Introduction
01:02 Investing Prerequisites
01:48 Risk Tolerance & Portfolio Diversification
04:42 Using the Fidelity Mutual Fund Screener
09:12 Holdings (FSSNX, FECGX & FISVX)
12:49 Mutual Fund Risk & Fees
16:34 Performance

Disclaimer: This video is for entertainment purposes only. Remember investing involves risk and you should consult a financial professional before making decisions.

Small Cap Funds from other major US Brokerages are listed below for reference.

📈Vanguard Small Cap Funds:
VSMAX - Vanguard Small-Cap Index Fund Admiral Shares (VB is the ETF)
VSGAX - Vanguard Small-Cap Growth Index Fund Admiral Shares (VBK is the ETF)
VSIAX - Vanguard Small-Cap Value Index Fund Admiral Shares (VBR is the ETF)

💼Charles Schwab Small Cap Funds:
SCHA - Schwab US Small-Cap ETF
SWSSX - Schwab Small-Cap Index Fund®

Attributions: Photos, videos and illustrations are courtesy: Pixabay & Pexels.

Some of the risk concepts that are discussed in the video include: Sharpe Ratio, Beta, R-Squared, and Standard Deviation. There are also various index fund related fees to be aware of, namely expense ratio and turnover rate. While the turnover rate isn't a direct fee, it can result in higher operational costs for a fund. Clean energy companies such as Sunrun and Plug Power are well-represented in these funds. When researching an Index Fund also think about the dividend yield, fund manager (Geode Capital Management) and the Morningstar rating. You can see all of this and more in the Fidelity Mutual Fund Screener.