Why Diversification Matters: The Benefits of the fidelity extended market index

When it comes to investing, diversification is a key factor that can help mitigate risk and increase potential returns. One way to achieve diversification is through the fidelity extended market index.

The fidelity extended market index provides investors with exposure to a wide range of US mid- and small-cap stocks, beyond the scope of the S&P 500 index. By holding a blend of both large-cap and mid/small-cap stocks, investors can gain exposure to a broader range of companies and sectors, ultimately reducing their portfolio's overall volatility.

This index fund also offers low fees, making it a cost-effective way to achieve diversification in one's investment portfolio. Additionally, the fund has a strong track record of outperforming its benchmark, indicating its potential for above-average gains.

Overall, diversification is essential for any investor looking to build a well-rounded, resilient portfolio. The fidelity extended market index provides a simple and effective way to diversify and potentially boost returns, making it an attractive option for investors of all backgrounds.

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