Best Fidelity ETFs and Index Funds: Complete 2026 Guide

Fidelity offers some of the lowest-cost ETFs and index funds in 2026. Providing options for investors seeking affordable, diversified portfolios. With over $17 trillion in assets under administration, Fidelity's lineup includes zero-expense ratio funds, broad market coverage, and tax-efficient options. Here's what you need to know:

• Top Picks: Fidelity ZERO funds (FNILX, FZROX) have no expense ratios, while FXAIX and FSKAX offer broad market exposure at 0.015% annually.
• Growth Focus: FTEC (tech-focused ETF) and FSPGX (large-cap growth) provide exposure to sectors including AI and technology.
• Income Options: FDVV invests in dividend-paying stocks, while bond funds like FXNAX and FNSOX provide income through interest payments.
• Performance Highlights: FNILX returned +15.79% over the past year, and FZROX delivered +15.51%, reported positive returns over the past year.
• Tax Efficiency: Fidelity's index funds are designed with low turnover and "in-kind" transactions to minimize taxable gains.

Whether you're building a diversified retirement portfolio or looking for sector-specific exposure, Fidelity offers diverse funds to fit your goals. Below, we dive into fund details, performance, and strategies to maximize returns in 2026.

7 Best Fidelity Index Funds For Beginners

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Fidelity ZERO Index Funds

Fidelity's ZERO Index Funds offer a 0.00% expense ratio with no account fees for retail brokerage accounts, making them an attractive option for cost-conscious investors.

How does Fidelity manage this? Instead of relying on third-party benchmarks like the S&P 500, they use proprietary indexes. Rob Berger, Founding Editor of Forbes Money Advisor, explains:

"The catch is that the funds track proprietary indexes Fidelity created. That means, for example, that the Fidelity ZERO Large Cap index fund does NOT track the S&P 500, as one might expect."

This approach eliminates licensing fees, helping Fidelity maintain its zero-cost model while delivering tax-efficient investment options.

For example, if you invested $100,000 in FZROX for 30 years with a 5% annual return, this would result in a hypothetical difference of $5,034 more compared to a similar fund with a 0.04% fee. FZROX, covering about 2,600 stocks, offers broad exposure, though it holds fewer stocks than FSKAX, which spans over 3,700. However, transferring these funds "in-kind" to another brokerage would trigger capital gains taxes.

Here’s a closer look at the ZERO funds and their performance.

Fidelity ZERO Large Cap Index Fund (FNILX)

FNILX targets the largest 800 U.S. companies by market capitalization, providing exposure to the country’s biggest and most established firms. As of January 31, 2026, the fund delivered:

• 1-year return: +15.79%
• 3-year annualized return: +21.42%
• 5-year annualized return: +14.52%.

Morningstar has awarded FNILX a 4-star rating for its risk-adjusted performance in the Large Blend category. It ranks #386 out of 2,754 funds in the Growth & Income peer group for 5-year performance.

FNILX provides exposure to large-cap companies for long-term portfolios. While it closely resembles the S&P 500 in composition, it tracks the Fidelity U.S. Large Cap Index to avoid licensing fees. In 2025, the fund returned 17.82%, though it started 2026 slightly down at -0.33% year-to-date as of February 13, 2026.

Fidelity ZERO Total Market Index Fund (FZROX)

FZROX provides comprehensive U.S. equity exposure, including large-, mid-, and small-cap stocks. With $33.5 billion in assets as of February 2026, this fund provides broad U.S. equity market exposure. Morningstar has given it a Gold Medalist Rating and a 3-star overall rating. Its returns as of January 31, 2026, include:

• 1-year return: +15.51%
• 3-year annualized return: +20.29%
• 5-year annualized return: +13.75%.

The fund invests at least 80% of its assets in the Fidelity U.S. Total Investable Market Index, with 34.7% concentrated in its top 10 holdings. Mega-cap tech companies dominate the portfolio, with NVIDIA Corp alone accounting for 6.88%. In 2025, FZROX returned 17.24% and began 2026 with a modest gain of +0.38% through February 13.

Fidelity ZERO Extended Market Index Fund (FZIPX)

FZIPX focuses on mid- and small-cap stocks, tracking around 2,500 companies compared to the nearly 3,500 in the fee-based FSMAX. It has earned a Bronze Medalist Rating from Morningstar and a 3-star overall rating. As of January 31, 2026, it ranks in the top 21% of Small Blend funds for 3-year performance.

The fund has shown strong returns recently, with a +7.01% year-to-date return as of February 13, 2026, outperforming large-cap funds during a period of rising momentum among smaller companies. Over the past few years, it delivered:

• 2025 return: 12.53%
• 2024 return: 12.39%
• 2023 return: 18.14%.

FZIPX can be used to complement portfolios focused on large-cap stocks or alongside FNILX for broader domestic equity exposure.

Fidelity Stock Index Funds

Fidelity's stock index funds offer a mix of extremely low fees and extensive market exposure by tracking benchmarks like the S&P 500. These funds complement Fidelity's ZERO lineup by covering broader market segments and offering growth opportunities, with expense ratios starting as low as 0.015%. They provide access to thousands of U.S. stocks across various market capitalizations, Providing low-cost, diversified exposure to U.S. stocks.

Fidelity 500 Index Fund (FXAIX)

The Fidelity 500 Index Fund (FXAIX) mirrors the S&P 500 Index, giving investors exposure to roughly 500 of the largest U.S. companies. As of early 2026, the fund manages around $752.97 billion in assets and charges an exceptionally low expense ratio of 0.015% - just $1.50 annually for every $10,000 invested.

Performance-wise, FXAIX delivered a 1-year return of +16.33%, a 5-year annualized return of +14.97%, and a 10-year annualized return of +15.56% as of January 31, 2026. Morningstar awarded the fund a 4-star rating, placing it among the top 22.5% of Large Blend funds based on returns. With a turnover rate of just 2.00% and a trailing twelve-month yield of 1.10%, the fund has a low turnover rate of 2.00%, which may contribute to tax efficiency.

The fund's portfolio leans heavily on Information Technology, which makes up 33.37% of its holdings. Its top investments include NVIDIA (7.84%), Apple (6.47%), and Microsoft (5.40%). Brendan McCann, an Associate Analyst at Morningstar, commented:

"Fidelity S&P 500 accurately represents the large-cap US stock market, allowing its low fee and efficient portfolio to carve out a long-term edge."

In 2025, FXAIX closely tracked its benchmark, returning 17.86% compared to the S&P 500 Index's 17.88%.

Fidelity's Total Market Index Fund (FSKAX) provides broader market exposure.

Fidelity Total Market Index Fund (FSKAX)

FSKAX is designed for investors who want comprehensive exposure to the U.S. equity market. It tracks the Dow Jones U.S. Total Stock Market Index, encompassing 3,794 holdings across large-, mid-, and small-cap companies. With $125.06 billion in net assets and an expense ratio of just 0.015%, FSKAX provides exposure to the entire domestic stock market.

As of January 31, 2026, the fund posted a 1-year return of +15.34%, a 5-year annualized return of +13.51%, and a 10-year annualized return of +15.08%. Its top holdings include NVIDIA (6.92%), Apple (5.72%), and Microsoft (4.77%). With a turnover rate of 2.00% and after-tax 10-year returns of 13.75%, Its low turnover may make it more tax-efficient for some investors. Managed by Geode Capital Management since 2003, the fund has earned a Gold Medalist Rating from Morningstar for its well-regarded investment process and management team.

For those who prefer a more focused approach to growth, the Fidelity Large Cap Growth Index Fund Provides a targeted strategy.

Fidelity Large Cap Growth Index Fund (FSPGX)

FSPGX focuses on high-growth large-cap companies by tracking the Russell 1000 Growth Index. With $42.818 billion in assets and a 0.04% expense ratio, it tracks the Russell 1000 Growth Index, which includes innovative, technology-driven stocks.

As of January 31, 2026, FSPGX delivered a 1-year return of +14.49%, a 3-year annualized return of +27.03%, and a 5-year annualized return of +15.12%. It ranks in the top 10% of Large-Cap Growth funds over five years. The fund is highly concentrated, with 59.1% of its assets allocated to its top 10 holdings, which include NVIDIA (12.18%), Apple (11.09%), and Microsoft (10.11%). Morningstar awarded FSPGX a Silver Medalist Rating and noted that its low-cost structure Is consistent with its growth-oriented strategy.

With a Beta of 1.15, the fund is more volatile than the broader market, but its low turnover rate of 9% helps maintain tax efficiency.

Fidelity Bond Index Funds

Fidelity's bond index funds bring a layer of stability and income to a well-rounded 2026 portfolio. With their low fees and broad diversification, these funds are especially appealing in a market shaped by a federal funds rate hovering between 3.5% and 3.75% in 2025, which has kept bond yields attractive.

These funds are designed to track major bond market benchmarks and cater to different risk appetites based on duration - essentially, how sensitive a bond fund is to interest rate changes. Below, we dive into how FXNAX and FNSOX fulfill unique roles within a diversified portfolio.

Fidelity U.S. Bond Index Fund (FXNAX)

FXNAX tracks the Bloomberg U.S. Aggregate Bond Index, covering over 10,000 investment-grade bonds, including Treasuries, corporate bonds, and mortgage-backed securities. With $68.8 billion in net assets and an expense ratio of just 0.025%, it provides U.S. bond market exposure with a low expense ratio.

As of January 31, 2026, FXNAX delivered a 1-year return of +6.83% and offered a 30-day yield of 4.10%. Its effective duration of 5.79 years suggests that a 1% rise in interest rates would lead to a 5.79% decline in the fund's value. After a challenging -13.03% loss in 2022, the fund bounced back with a 7.13% return in 2025. Morningstar awarded FXNAX a Gold Medalist Rating, stating:

"A sound investment process and strong management team underpin Fidelity U.S. Bond Index's Morningstar Medalist Rating of Gold."

The fund features a turnover rate of 45%, with top holdings concentrated in U.S. Treasury Notes, FNMA, and GNMA, which together make up over 68% of the portfolio. FXNAX may appeal to investors seeking portfolio stability. Its 3-star Morningstar rating places it in the middle tier of the Intermediate Core Bond category.

Fidelity Short-Term Bond Index Fund (FNSOX)

FNSOX focuses on lower volatility by tracking the Bloomberg U.S. 1-5 Year Government/Credit Bond Index. With $3.6 billion in assets and a 0.03% expense ratio, this fund keeps a dollar-weighted average maturity of three years or less, which significantly reduces its sensitivity to interest rate changes.

As of January 31, 2026, FNSOX posted a 1-year return of +5.64% and a 30-day yield of 3.76%. Its effective duration of around 2.5 years makes it roughly half as sensitive to rate changes as FXNAX [30,32]. While FXNAX captures a broader bond market, FNSOX may be used in portfolios seeking reduced interest rate exposure. The fund holds 1,447 securities and has a 55% turnover rate.

Though FNSOX earned a 2-star Morningstar rating, it received a Silver Medalist Rating for its investment approach. Morningstar noted its "sizable cost advantage over competitors, priced within the lowest fee quintile among peers". Over the past five years, FNSOX achieved an annualized return of +1.58%.

Both FXNAX and FNSOX distribute monthly dividends, which are taxed as ordinary income. This makes them suitable for tax-advantaged accounts like IRAs or 401(k)s. FNSOX provides lower duration and yield, while FXNAX provides higher yield with moderate interest rate risk.

Fidelity Sector and Thematic ETFs

Expanding on the earlier discussion of broad-market and bond index funds, Fidelity's sector and thematic ETFs offer a more focused way to tap into specific industries and trends. These funds provide exposure to particular sectors and may be used to complement a broader portfolio. However, this narrower focus often comes with increased volatility. For instance, technology-focused funds have historically shown more dramatic price swings, while utilities tend to provide steadier performance. These ETFs are best used to complement core holdings rather than replace them.

Fidelity MSCI Information Technology Index ETF (FTEC)

FTEC tracks the MSCI USA IMI Information Technology Index. It and allocates at least 80% of its assets to U.S. technology securities, providing exposure to AI and mega-cap tech companies. With $16.1 billion in net assets and a low expense ratio of 0.08%, it offers cost-effective access to this dynamic sector. As of February 13, 2026, the fund was priced at $217.95, delivering a 1-year return of +22.21%.

Its top holdings - NVIDIA Corp. (17.51%), Apple Inc. (14.93%), Microsoft Corp. (12.22%), and Broadcom Inc. (4.47%) - make up almost 45% of the portfolio. While this concentration can amplify gains, it also increases risk. Over the past decade, FTEC reported a 22.98% return, and has a dividend yield of 0.44%.

Portfolio Manager Adam Benjamin shared his outlook on the fund’s trajectory:

"I expect the 'picks and shovels' that have brought the AI train this far - graphics processing units, high-speed memory, and data centers - to continue to be integral to successive improvements in 2026 and beyond."

AI infrastructure spending is projected to potentially exceed $2 trillion in 2026, with private-sector investments driving about 60% of recent U.S. economic growth. Add to that the S&P 500's forward P/E ratio of 21.95 - well above its 10-year average of 18.7 - and FTEC provides exposure to growth-oriented sectors such as semiconductors and AI software.

Fidelity High Dividend ETF (FDVV)

FDVV provides exposure to dividend-paying stocks and technology companies. This ETF blends high-yield stocks with market-cap weighting across sectors, creating a portfolio that includes both growth-oriented tech names like NVIDIA and Apple and more traditional, defensive high-yield stocks. It’s earned a five-star Morningstar rating and selects stocks primarily on dividend yield (70%), with dividend growth rate and payout ratio each contributing 15%.

As of February 12, 2026, FDVV had $8.5 billion in net assets, an expense ratio of 0.15%, and a 30-day SEC yield of 2.68%. Its top holdings - NVIDIA, Apple, Microsoft, and Broadcom - show its market-cap weighting approach, blending growth with income potential. The fund posted a 1-year return of +18.84% and a 5-year average annual return of 16.44%.

Financial analyst David Dierking highlighted the fund’s versatility:

"FDVV's tech exposure can help it if market momentum continues, but the allocations to higher-yielding cyclicals and defensive sectors can provide some protection if the market turns lower."

This balanced strategy is especially relevant in 2026, as market leadership is expected to diversify beyond the tech sector. Broader structural trends, such as the aging baby boomer population driving demand for dividend-paying stocks, and potential Federal Reserve rate cuts benefiting rate-sensitive areas like Real Estate and Financials, add to FDVV’s appeal.

Feature	FTEC (Information Technology)	FDVV (High Dividend)
Primary Goal	Tech sector growth & AI exposure	Income generation & tech momentum
Expense Ratio	0.08%	0.15%
30-Day SEC Yield	0.40%	2.68%
1-Year Return	+22.21%	+18.84%
5-Year Return	+17.33%	+16.44%
Top Holding	NVIDIA (17.51%)	NVIDIA (market-cap weighted)
Best For	Aggressive growth investors	Income-oriented investors seeking tech upside

Both FTEC and FDVV cater to different investment goals. FTEC offers targeted exposure to the tech sector, ideal for those ready to embrace higher volatility for growth potential. On the other hand, FDVV balances income generation with participation in tech-driven gains, Providing a blend of income generation and technology exposure. Before adding these ETFs to your portfolio, assess your overall strategy to ensure proper diversification across stocks and bonds and cost management.

Fidelity ETFs and Index Funds Comparison

Fidelity manages a staggering $4.4 trillion in assets and offers a diverse range of 75 ETFs alongside a wide array of mutual funds. This section breaks down key metrics to compare Fidelity funds for different investment objectives, including growth, income, or a balanced portfolio.

One standout feature of Fidelity's offerings is its low-cost structure. For instance, the ZERO funds (FNILX, FZROX) have an expense ratio of 0.00%, while core index mutual funds like FXAIX and FSKAX charge just 0.015% annually. Sector-focused ETFs, such as FTEC, maintain competitive costs at 0.084%, whereas bond ETFs like FBND come in higher at 0.36%.

Performance and risk levels differ widely depending on the fund's strategy. For example, FTEC has achieved over 100% returns over five years, but with a beta of 1.28, it is about 28% more volatile than the S&P 500. On the other hand, income-focused funds like FDVV and FIDI prioritize dividends, with yields of 2.9% and 4.34%, respectively. These funds trade some growth potential for consistent cash flow. Meanwhile, bond funds such as FXNAX and FBND offer yields exceeding 4%. However, they are sensitive to interest rate changes - FBND, with a duration of 5.8 years, could see a 5.8% price drop if rates rise by 1%.

The table below highlights these comparisons, showing the trade-offs between cost, performance, and risk:

Fund	Type	Expense Ratio	5-Year Return	Dividend Yield	AUM	Beta/Risk
FXAIX	Index Mutual Fund	0.015%	-	1.1%	$740.0B	Market
FNILX	Index Mutual Fund	0.00%	-	1.0%	$16.5B	Market
FSKAX	Index Mutual Fund	0.015%	-	1.0%	$122.8B	Market
FXNAX	Bond Index Fund	0.025%	-	4.1%	$68.2B	Low
FTEC	Tech Sector ETF	0.084%	>100%	0.4%	$16.9B	1.28
FDVV	High Dividend ETF	0.15%	-	2.9%	$8.4B	Moderate
ONEQ	Nasdaq ETF	0.21%	~16.3%	0.5%	$9.4B	High
FBND	Bond ETF	0.36%	-	4.5%	$24.1B	Low

The table underscores the choices available: low-cost index funds like FXAIX and FSKAX offer market-level returns with minimal fees, while specialized ETFs such as FTEC and ONEQ provide targeted exposure but come with higher volatility. Funds such as FTEC or ONEQ have higher volatility and potential returns, while bond funds like FXNAX or FBND offer income, with the choice depending on individual risk tolerance and investment timeline.

Using Mezzi to Optimize Fidelity Fund Portfolios

Managing a portfolio of Fidelity ETFs and index funds becomes far easier with tools tailored for active investors. Mezzi's platform offers features for portfolio analysis, tax optimization, and financial planning: advanced tax optimization, portfolio X‑Ray analysis, and financial calculators for aligning with your financial goals. These tools work seamlessly with Fidelity's low-cost options to enhance efficiency.

One of Mezzi's strongest offerings is its tax optimization feature. It monitors for wash sales across multiple accounts, which can result in additional tax liabilities. For reference, the top federal long-term capital gains tax rate in 2026 is 23.8% (including a 3.8% Medicare surtax), compared to a much steeper 40.8% short-term rate. Mezzi simplifies the process by automatically tracking holding periods to ensure your Fidelity investments qualify for the lower long-term rates. Additionally, it provides guidance on asset location strategies, providing guidance on asset location strategies, such as holding tax-efficient index funds and ETFs in taxable accounts and less tax-efficient assets, like bond funds, in tax-advantaged accounts like IRAs or 401(k)s. For 2026, IRA contribution limits are set at $7,500 (or $8,000 for those aged 50 and over), and 401(k) contributions cap at $24,500, with extra catch-up contributions available for eligible investors.

Mezzi also offers tools to help you better understand and manage your portfolio. The X‑Ray feature dives deep into your Fidelity fund holdings, highlighting hidden risks and concentration issues. It evaluates your asset allocation - spanning domestic stocks, foreign stocks, bonds, and short-term investments - assessing your portfolio's diversification and risk characteristics. For those juggling multiple Fidelity funds, this tool is invaluable for spotting overlapping positions that could unintentionally concentrate your portfolio in certain sectors.

To round out its offerings, Mezzi includes financial calculators designed to align your Fidelity investments with specific goals, such as retirement or education savings. These calculators take into account your portfolio’s current value, annual contributions, projected returns, and any associated fees. By showing how costs compound over time, the calculators provide insights usually reserved for professional financial planners, Providing tools for independent portfolio management.

Key Takeaways for 2026

Fidelity's 2026 lineup is designed to address various investor goals, whether you're focusing on growth, income, or retirement planning. FNILX and FZROX have 0% expense ratios and may serve as core holdings. If you're open to spending just a bit more - 0.015%, to be exact - FXAIX and FSKAX provide a similarly low-cost option with the added flexibility of portability to other brokerages. These funds have low expense ratios and provide broad-market exposure.

For those prioritizing income or specific sector investments, consider these options: FDVV reported a 2.9% dividend yield, while FBND reported a 4.5% SEC yield for bond-focused investors. If technology is your focus, FTEC provides exposure with an expense ratio of just 0.084%. For a blend of passive and active strategies, Fidelity's Enhanced ETFs, like FELG, leverage quantitative models to aim for modest outperformance over traditional indexes - aA strategy that has been recognized with a Gold rating by Morningstar.

Mike Hagopian from Fidelity's Quantitative Research team explains the appeal of these options:

"For many investors, using a low-cost option to get broad stock-market exposure makes all the sense in the world. Products that track indexes like the S&P 500® can offer a good starting point, but it may be possible to achieve different return outcomes, while maintaining similar benefits." - Mike Hagopian, Institutional Portfolio Manager, Fidelity's Quantitative Research and Investments team

Mezzi takes these benefits further by helping investors avoid costly wash sales, optimize asset location, and identify hidden risks using its X-Ray feature. Its built-in tax tools help reduce liabilities, while financial calculators expose the how expense ratios impact ETF returns. This integrated approach is designed to help align Fidelity investments with long-term financial goals, tying together the advantages discussed throughout this guide.

FAQs

Are Fidelity ZERO funds worth it if I might switch brokerages later?

Fidelity ZERO funds stand out because of their low or zero expense ratios, making them an attractive option for keeping investment costs down. However, if there’s a chance you might switch brokerages in the future, it’s worth considering a few potential challenges. These include whether the new brokerage offers these funds, how the transfer process might work, and if the funds are compatible with their platform. Taking the time to weigh these factors can ensure they fit well with your long-term investment plans.

How do I pick between FXAIX (S&P 500) and FSKAX (total market)?

The key distinction between FXAIX and FSKAX lies in their market coverage. FXAIX tracks the S&P 500, providing exposure to large-cap stocks.

On the other hand, FSKAX goes beyond just large caps. It represents the entire U.S. stock market, including small- and mid-cap stocks. This broader approach provides exposure to a wider range of companies across different sizes.

Both funds come with impressively low expense ratios of 0.015%, so the decision boils down to what you're aiming for: a concentrated focus on large-cap stocks with FXAIX or a more comprehensive market view with FSKAX.

Where should I hold bond funds like FXNAX or FNSOX for taxes?

To reduce your tax burden, consider keeping bond funds like FXNAX or FNSOX in tax-advantaged accounts. These funds typically generate fewer capital gains distributions.

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