The 8 Best Fidelity Index Funds to Invest in 2025

As of April 2025, Fidelity offers a range of index funds that cater to various investment strategies, risk tolerances, and financial goals. These funds are known for their low expense ratios, diversified holdings, and strong historical performance.

Listed are eight of the best Fidelity index funds to consider, each selected for their strong performance, minimal fees, and alignment with different investment goals.

Best Fidelity Index Funds to Invest in 2025 (April Edition)

1) Fidelity 500 Index Fund (FXAIX)

FXAIX is widely regarded as one of the most dependable long-term index funds. It mirrors the performance of the S&P 500, which means it offers exposure to top-tier U.S. companies like Apple, Microsoft, Amazon, and Nvidia. Its ultra-low expense ratio of just 0.015% makes it a cost-effective way to tap into the collective performance of America's most powerful corporations.

In April 2025, despite market volatility, the S&P 500 continues to show resilience due to strong earnings and robust consumer demand. For investors seeking steady growth and a solid foundation for their portfolio, FXAIX remains a top-tier choice.

2) Fidelity ZERO Large Cap Index Fund (FNILX)

FNILX is part of Fidelity's revolutionary "ZERO" series, eliminating expense ratios. It tracks the Fidelity U.S. Large Cap Index, designed to offer similar exposure to the S&P 500 without licensing costs. This makes FNILX ideal for beginner investors who want cost savings without sacrificing quality.

In 2025, large-cap stocks continue to outperform due to their strong balance sheets and ability to weather economic headwinds. FNILX's zero fees allow compounding returns to work even harder, particularly for long-term investors.

3) Fidelity Total Market Index Fund (FSKAX)

FSKAX is the ultimate all-in-one solution for those seeking comprehensive market exposure. Unlike funds focusing solely on large-cap stocks, FSKAX includes small and mid-cap stocks.

In the current market climate, where small caps show signs of a resurgence following inflation adjustments and rate stability, having exposure across all market capitalisations provides both growth potential and balanced risk. Its low expense ratio and broad diversification make it an essential building block for any diversified portfolio.

4) Fidelity ZERO Total Market Index Fund (FZROX)

FZROX, similar to FSKAX, provides total U.S. market exposure without an expense ratio. It's particularly appealing for new investors or those with smaller portfolios who want instant diversification at zero cost.

As 2025 economic conditions shift toward steady recovery and sector rotation becomes more common, accessing every segment of the U.S. equity market through FZROX offers a built-in hedge against volatility in any single sector.

5) Fidelity Large Cap Growth Index Fund (FSPGX)

FSPGX focuses on growth-oriented large-cap companies, often leaders in innovation and disruption — think tech, digital services, and healthcare innovation. With sectors like AI, cloud computing, and biotechnology driving equity performance in 2025, FSPGX captures the essence of future-forward growth.

Its diversified allocation to high-momentum companies allows investors to ride market upswings with strong capital appreciation potential, although with slightly more volatility than a core index fund.

6) Fidelity Mid Cap Index Fund (FSMDX)

Mid-cap stocks often strike the perfect balance between small caps' growth potential and the stability of large caps. FSMDX offers focused exposure to this often-overlooked segment, which historically has delivered strong returns during periods of economic expansion.

In 2025, mid-cap companies will benefit from increased merger activity and sector-specific rebounds, particularly in industrials and fintech. Adding FSMDX can enhance portfolio diversification while positioning investors to benefit from dynamic, high-growth enterprises.

7) Fidelity Freedom Index 2025 Fund (FQIFX)

FQIFX is ideal for investors approaching retirement or those seeking a set-it-and-forget-it option. It's a target-date fund that automatically adjusts its asset mix, reducing exposure to riskier equities and increasing bonds as retirement approaches.

This fund provides a smart blend of growth and preservation for those planning to retire in 2025 or soon after. Its design eliminates the need for manual rebalancing, and in the current macroeconomic environment —where stability and capital protection are increasingly valued — FQIFX is a stress-free, well-structured solution.

8) Fidelity ZERO International Index Fund (FZILX)

FZILX offers zero-fee access to internationally developed and emerging markets. While domestic equities dominate many portfolios, 2025 presents renewed opportunities abroad, especially in Asia and Europe, where growth is rebounding and currencies are strengthening relative to the U.S. dollar.

With no expense ratio, FZILX is a cost-efficient way to gain global exposure and offset home-country bias. International diversification is crucial in today's interconnected economy, and FZILX makes that affordable and accessible.

Conclusion

In conclusion, when selecting index funds, it's essential to consider factors such as investment goals, risk tolerance, and time horizon. Fidelity's suite of index funds offers diversified options to meet various investment needs.

These eight best Fidelity index funds represent core, growth, international, and retirement-focused strategies. Whether starting your investment journey, planning for retirement, or rebalancing an existing portfolio, these funds provide strong foundations, growth potential, and cost efficiency in April 2025.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.