Fidelity Total Stock Index: The Ultimate Guide to FSTVX

The Fidelity Total Stock Market Index Fund (FSTVX) is a passively managed mutual fund that tracks the performance of the entire U.S. stock market, as measured by the CRSP US Total Market Index. With over $346.5 billion in assets under management, FSTVX is one of the largest and most popular index funds in the world.

Key Features of FSTVX

• Low expense ratio: FSTVX has an expense ratio of just 0.04%, making it one of the most affordable ways to invest in the entire U.S. stock market.
• Diversification: FSTVX holds over 3,000 stocks, which provides investors with broad exposure to the U.S. economy.
• Long-term performance: FSTVX has outperformed the majority of actively managed funds over the long term.

Benefits of Investing in FSTVX

• Simplicity: FSTVX is a simple and easy way to invest in the U.S. stock market. There is no need to pick individual stocks or time the market.
• Cost-effectiveness: FSTVX's low expense ratio makes it a cost-effective way to invest.
• Tax-efficiency: FSTVX is a tax-efficient investment, as it is structured as an index fund.

Drawbacks of Investing in FSTVX

• No potential for outsized returns: FSTVX is a passively managed fund, which means that it tracks the performance of the index it follows. As a result, it is unlikely to generate outsized returns.
• Market risk: FSTVX is subject to market risk, which means that the value of the fund can fluctuate with the stock market.

How to Invest in FSTVX

FSTVX can be purchased through a variety of investment platforms, including Fidelity Investments, Vanguard, and Charles Schwab. The minimum investment amount is $100.

Common Mistakes to Avoid

• Investing too much in FSTVX: FSTVX should be part of a diversified investment portfolio. Investors should not invest more than 20-30% of their portfolio in FSTVX.
• Trying to time the market: It is impossible to time the market. Investors should invest in FSTVX for the long term, regardless of market conditions.
• Selling FSTVX during a market downturn: Investors should not sell FSTVX during a market downturn. The stock market has always rebounded from past downturns.

Pros and Cons of Investing in FSTVX

Pros:

• Low expense ratio
• Diversification
• Long-term performance

Cons:

• No potential for outsized returns
• Market risk

FAQs

1. What is the expense ratio of FSTVX?

The expense ratio of FSTVX is 0.04%.

2. How many stocks does FSTVX hold?

FSTVX holds over 3,000 stocks.

3. What is the minimum investment amount for FSTVX?

The minimum investment amount for FSTVX is $100.

4. Can I invest in FSTVX through my 401(k)?

Yes, FSTVX is available through many 401(k) plans.

5. What is the average annual return of FSTVX?

The average annual return of FSTVX for the past 10 years is 10.9%.

6. What is the risk level of FSTVX?

FSTVX has a moderate risk level.

7. Should I invest in FSTVX if I am a beginner?

Yes, FSTVX is a good option for beginner investors, as it is a simple and cost-effective way to invest in the U.S. stock market.

8. How often does FSTVX pay dividends?

FSTVX pays dividends quarterly.

Applications of FSTVX

FSTVX can be used in a variety of applications, including:

• Core holding in a diversified portfolio: FSTVX can be used as a core holding in a diversified portfolio for investors who want exposure to the entire U.S. stock market.
• Index fund investing: FSTVX can be used as a low-cost way to implement an index fund investment strategy.
• Target-date funds: FSTVX is often used as a component of target-date funds, which are designed to provide investors with a mix of stocks and bonds that automatically rebalances over time.
• Retirement planning: FSTVX can be used as part of a retirement savings plan, as it provides investors with both growth potential and diversification.

Tables

Table 1: Key Facts About FSTVX

Table 2: Performance of FSTVX vs. the S&P 500

Table 3: Sector Allocation of FSTVX

Table 4: Top 10 Holdings of FSTVX