Is the fidelity real estate index fund Right for Your Portfolio? A Comprehensive Review

Are you looking to diversify your investment portfolio with a real estate component? The fidelity real estate index fund could be the answer.

As the name implies, this fund tracks an index of real estate stocks, providing investors with exposure to the performance of the real estate sector, without the hassle of actually owning physical property.

So, is the fidelity real estate index fund right for your portfolio? Here's a comprehensive review:

Firstly, it's important to note that this fund has a low expense ratio of 0.07%, making it an affordable option for investors. Plus, as it's a passively-managed fund, there are no manager fees to worry about.

Performance-wise, the fidelity real estate index fund has generally performed well over the past few years, keeping up with or outperforming its benchmark index. Of course, past performance is not indicative of future results, so it's important to keep that in mind.

One potential downside to this fund is that it is heavily weighted in a few large real estate companies, such as Simon Property Group and Prologis. This means that if these companies underperform, it could drag down the overall performance of the fund.

Overall, the fidelity real estate index fund could be a good addition to a diversified investment portfolio. Its low expense ratio, performance track record, and exposure to the real estate sector make it an appealing option for many investors.

If you're interested in learning more about this fund, talk to your financial advisor or head to the Fidelity website to read up on the fund's prospectus.

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