fidelity extended market index vs. S&P 500: Which Should You Choose?

When it comes to investing, you want to make the best decision for your money. One big debate among investors is whether to choose the fidelity extended market index or the S&P 500. Both offer significant advantages, but which one is the right choice for you?

First, let's talk about the fidelity extended market index. This index tracks the performance of small, mid and large-cap companies outside of the S&P 500. Essentially, it's a way to diversify your portfolio beyond the largest 500 companies in the US. This can be a great option for those who are looking for more exposure to smaller, up-and-coming companies that have the potential for larger growth.

On the other hand, the S&P 500 is arguably the more well-known index. It includes the 500 largest companies in the US and is often used as a benchmark for the performance of the stock market. It's a more stable investment option, but may not have the same potential for growth as the fidelity extended market index.

So, which one should you choose? It ultimately depends on your investment goals and risk tolerance. If you're looking for potentially higher returns and are comfortable taking on a bit more risk, the fidelity extended market index may be the better choice. However, if you want a more stable investment option and prefer to stick with larger, established companies, then the S&P 500 may be the way to go.

Remember, it's important to do your research and consult with a financial advisor before making any investment decisions. But with options like the fidelity extended market index and the S&P 500, there are plenty of solid choices for investors.

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