Video summary

The 5 Best Fidelity Funds for 2026 and Beyond

Main summary

Key takeaways

Finance

Finance-focused summary (5 Fidelity funds for 2026 and beyond)

The presenter frames the video around DIY investing on Fidelity with low costs, broad diversification, and a “buy and hold” mindset. They recommend a core portfolio that can include:

  • US stocks
  • International stocks
  • Bonds
  • Cash / cash-management
  • Optionally, target-date index funds for retirement

Key tickers / funds / instruments mentioned

US stocks (total market)

  • FSKAX — Fidelity Total Market Index Fund

    • Expense ratio: 0.015%
    • Tracks: Dow Jones US Total Stock Market Index
    • Holdings: ~4,000 companies
    • Minimum to start: none stated (per video)
    • Example return claim (as stated): “past decade” ~15% annualized; $10,000 → over $40,000 in a decade

  • FZROX — Fidelity Zero Total Market Index Fund

    • Expense ratio: 0%
    • Tracks: Fidelity US Total Investable Market Index (proprietary)
    • Holdings: ~2,500 companies (excludes most small caps)
    • Portability caution (tax implication): cannot transfer in-kind to another brokerage; must sell, which can trigger capital gains in a taxable account

International stocks

  • FTIHX — Fidelity Total International Index Fund

    • Expense ratio: 0.06% (≈ $6/year per $10,000)
    • Tracks: MSCI ACWI ex-USA Investable Market Index
    • Holdings: ~5,000 companies across developed + emerging markets
    • Examples mentioned: Taiwan Semiconductor, ASML, Nestle, Samsung

  • FZILX — Fidelity Zero International Index Fund

    • Expense ratio: 0%
    • Tracks: Fidelity proprietary global ex-US index
    • Holdings: ~2,000–2,500 companies
    • Focus: large + mid-cap international only (excludes small-cap international)
    • Portability caution (tax implication): same “must sell before leaving Fidelity” issue as FZROX

International allocation guidance (portfolio construction)

  • To match global market cap: up to 40% international
  • As a starting point: ~20%
  • Can be 0% (video stance: indirect international exposure already exists via US multinationals)

Bonds (core US aggregate exposure)

  • FXNAX — Fidelity US Bond Index Fund
    • Expense ratio: 0.025% (≈ $2.50/year per $10,000)
    • Tracks: Bloomberg US Aggregate Bond Index
    • Holdings: 8,000+ bonds including US Treasuries, corporate bonds, mortgage-backed securities

Bond role / risk-management framework (behavioral use)

  • Bonds are described as a behavioral strategy, not a growth strategy.
  • Purpose: reduce the likelihood of panic-selling during drawdowns; bonds may hold value or rise during equity crashes (as stated).
  • Suggested timing:
    • Likely no bonds needed in the 20s/30s/40s (video view)
    • Start adding about 5–10 years before retirement, gradually increasing
    • Retirement guideline: ~20% to 40% in bonds (varies by situation)

Cash / money market for short-term reserves

  • SPAXX — Fidelity Government Money Market Fund
    • Fidelity “default core position” via cash sweep when cash isn’t invested
    • Invests in: short-term US government securities + repurchase agreements
    • Target: stable $1/share
    • Yield mentioned: ~3.3% (as of video time)
    • Context comparison: bank savings mentioned as ~0.5% yield
    • Disclosure/caution: not FDIC-insured (unlike HYSA), though it invests in government-backed instruments
    • Role: preserves + earns modest interest; not framed as long-term wealth growth

Target-date / retirement funds (index-based family)

  • Fidelity Freedom Index Funds (target year selected by retirement)
    • Video distinguishes:
      • Fidelity Freedom Fund (active) — expense ratio ~0.71%
      • Fidelity Freedom Index Fund (index) — expense ratio ~0.12%
    • Explicit “index check” recommendation:
      • Must contain the word “Index” (e.g., Freedom Index 2050)
      • If expense ratio is > 0.2%, the video says you likely picked the wrong (active) version

Glide path methodology (step-by-step framework described)

  • Pick the fund year closest to expected retirement:
    • Example: retire ~2045 → Freedom Index 2045
    • Example: retire ~2055 → Freedom Index 2055
  • Mechanism over time:
    • Early years: heavily weighted to stocks, minimal bonds
    • Near retirement: gradually shifts toward bonds/stable assets
  • Described as a year-by-year glide path with automatic internal rebalancing
  • Underlying exposures in these funds:
    • US equity index fund
    • International equity index fund
    • Bond index fund

Methodologies / frameworks explicitly shared

  • Total market (US) core approach

    • Use broad index exposure to avoid stock/sector forecasting
    • Buy and hold; index rebalances as companies enter/exit the market

  • International diversification approach

    • Add an ex-US international index for diversification away from the US
    • Suggested allocation target: 0%–40% (with ~20% starting point)

  • Bond allocation and timing framework (behavioral risk management)

    • Bonds are for reducing behavioral risk (panic selling), not growth
    • Start bonds 5–10 years before retirement
    • Retirement bond allocation target: 20%–40%

  • Cash reserve placement

    • Use a government money market fund for short-term liquidity
    • Emphasis on access and yield vs savings accounts

  • Target-date index fund selection + glide path

    • Choose the correct index version by expense ratio/name
    • Select retirement year; rely on the glide path to reduce risk automatically

Key numbers and explicit recommendations/cautions

  • FSKAX expense ratio: 0.015% (≈ $1.50/year per $10k)
  • FSKAX return claim: ~15% annualized over a decade; $10,000 → >$40,000
  • FZROX expense ratio: 0%
    • Portability lock-in at Fidelity + potential taxable “sell” event when leaving
  • FTIHX expense ratio: 0.06% (≈ $6/year per $10k)
  • FTIHX holdings: ~5,000 companies across developed + emerging markets (ex-US)
  • FXNAX expense ratio: 0.025% (≈ $2.50/year per $10k)
  • SPAXX yield: ~3.3% and stable $1/share
  • SPAXX caution: not FDIC-insured
  • Freedom funds expense ratios: ~0.71% active vs ~0.12% index
  • Freedom fund selection rule: look for the word “Index”; avoid >0.2% expense ratio
  • Bond allocation guideline: start 5–10 years before retirement; retire with 20%–40% bonds
  • International allocation guideline: up to 40% global-weighted; ~20% starter

Disclosures / disclaimers

  • The provided subtitles (as given) did not include an explicit “not financial advice” disclaimer.

Presenters / sources mentioned

  • Tay — Financial Tortoise (presenter/channel)

  • Benchmarks / indices referenced for tracking:

    • Dow Jones US Total Stock Market Index
    • MSCI ACWI All Country World Index excluding USA Investable Market Index
    • Bloomberg US Aggregate Bond Index

Original video