Understanding fidelity total market index: A Beginner's Guide

If you're new to the world of investing, understanding stock market indices can be confusing. One of the most popular indices is the fidelity total market index. This index tracks the performance of nearly all investable stocks in the US market, making it an ideal gauge of the overall health of the economy.

The fidelity total market index is weighted by market capitalization, meaning that larger companies have a greater impact on the index's performance. This is in contrast to other indices, like the S&P 500, which only tracks the performance of 500 large-cap stocks.

Investing in the fidelity total market index can provide broad exposure to the US equity market, making it a popular choice for passive investors. It also tends to have lower fees compared to actively managed funds, making it a cost-effective option for those looking to diversify their portfolios.

As with any investment, it's important to do your research before investing in the fidelity total market index. But if you're new to investing and looking for a simple way to gain exposure to the US equity market, this index is definitely worth considering.

So if you're interested in including the fidelity total market index in your investment portfolio, be sure to consult with a trusted financial advisor to determine the best course of action for your individual financial situation. Happy investing!

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