Fidelity Total Market Index is one of the funds favored by investors looking for a simple way to gain broad exposure to the U.S. stock market. Rather than trying to actively pick winning stocks, the fund aims to closely track the performance of the overall American market, covering hundreds or even thousands of companies — from major technology giants to smaller publicly traded businesses.
When investors refer to Fidelity Total Market Index, they are usually talking about the Fidelity Total Market Index Fund, which trades under the ticker FSKAX. The fund is managed by Fidelity Investments and tracks the Dow Jones U.S. Total Stock Market Index. According to S&P Dow Jones Indices, this benchmark is designed to measure the performance of publicly traded U.S. stocks across the market.
What Is Fidelity Total Market Index?
The Fidelity Total Market Index Fund is a passively managed U.S. equity fund. That means it does not attempt to outperform the market by selecting individual stocks. Instead, it seeks to replicate the composition and performance of its benchmark index.
Fidelity states that the fund normally invests at least 80% of its assets in stocks included in the Dow Jones U.S. Total Stock Market Index.
This is what separates it from funds focused only on the largest American corporations. While the S&P 500 primarily tracks large-cap companies, Fidelity Total Market Index has a broader scope. Its portfolio includes large-, mid-, and small-cap U.S. companies. With a single investment, investors gain exposure to nearly the entire U.S. stock market.
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How Does FSKAX Work?
The principle behind FSKAX is straightforward. If the U.S. stock market as a whole rises, the value of the fund should generally rise at a similar pace. If U.S. equities decline, the fund is expected to fall as well.
For this reason, FSKAX is not designed for short-term speculation. Instead, it is often used as a core holding in long-term investment portfolios.
The fund is weighted by market capitalization, meaning the largest companies make up the biggest portions of the portfolio. Although the fund holds thousands of stocks, its performance is still heavily influenced by major technology firms.
Based on recent data, the fund’s largest holdings include companies such as Nvidia, Apple, Microsoft, Amazon, Alphabet, Broadcom, Meta Platforms, Tesla, and Berkshire Hathaway.
The top 10 positions account for roughly one-third of the portfolio, while the fund holds approximately 3,786 stocks in total.
This is important from a risk perspective. Fidelity Total Market Index appears highly diversified, but due to the enormous size of today’s technology giants, investors still have significant exposure to the tech sector.
Costs: Why Fidelity Total Market Index Is Popular
One of the biggest advantages of Fidelity Total Market Index is its extremely low cost structure.
According to Fidelity, FSKAX has both a gross and net expense ratio of just 0.015% annually. In practical terms, an investor with $10,000 invested in the fund would pay approximately $1.50 per year in management fees.
Low fees matter enormously in long-term investing. The difference between a fund charging 0.015% annually and an actively managed fund charging around 1% can become substantial over decades.
With index funds, investors are not paying for a manager’s attempt to beat the market. Instead, they are paying for inexpensive and efficient market exposure.
Fidelity Total Market Index Performance
Past performance never guarantees future results, but broad index funds are often evaluated based on how consistently they track their benchmark.
According to Fidelity data, as of April 30, 2026, FSKAX delivered an average annual return of 31.36% over the past year, 21.42% annually over three years, 11.87% annually over five years, and 14.72% annually over ten years.
These numbers reflect an exceptionally strong period for U.S. equities, especially large technology companies.
However, investors should not assume this pace will continue indefinitely. The U.S. stock market has experienced a long bull run, and funds like FSKAX can also face significant declines during weaker market periods.
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Who Is Fidelity Total Market Index Best For?
Fidelity Total Market Index may appeal primarily to investors who want long-term exposure to U.S. equities without selecting individual stocks themselves.
A typical investor might be someone who believes in the long-term strength of the U.S. economy, prefers low fees, and values simplicity over building a complex portfolio.
The fund can serve as the core equity component of a portfolio. Investors may combine it with international stocks, bonds, cash, or more conservative assets depending on their age, investment horizon, and risk tolerance.
On the other hand, it may not be ideal for investors seeking global diversification in a single product. FSKAX focuses exclusively on the United States rather than worldwide markets.
Investors looking for exposure to Europe, Japan, emerging markets, or other regions would typically need additional funds or ETFs.
What Are the Main Risks?
The largest risk is equity market risk. Fidelity Total Market Index invests in stocks, whose values can fluctuate significantly. During major market downturns, the fund may lose tens of percent in value.
Another key risk is concentration in the United States. Although the U.S. market remains the world’s largest and most influential, it is not immune to economic or market weakness.
If U.S. equities underperform other regions for an extended period, the fund’s results would likely suffer as well.
Fidelity Total Market Index vs. S&P 500
A common question is whether investors should own the entire U.S. market or simply track the S&P 500.
The main difference lies in diversification. The S&P 500 focuses primarily on large American corporations, while Fidelity Total Market Index also includes mid- and small-cap companies.
In practice, the performance of these funds is often relatively similar because large companies dominate the U.S. market by value.
Still, total market funds can provide somewhat broader diversification. Investors gain exposure not only to major corporations but also to the potential growth of smaller businesses.
Is Fidelity Total Market Index Worth It?
Fidelity Total Market Index can be a highly efficient solution for investors seeking low-cost, long-term exposure to the U.S. stock market.
It offers broad diversification, extremely low fees, and a simple investment strategy that avoids the complexity of selecting individual stocks.
However, it is not a risk-free investment. Investors must be prepared for stock market volatility, strong exposure to the U.S. economy, currency fluctuations, and the dominant influence of major technology companies.
For European investors, accessibility may also be an important consideration, since certain U.S. mutual funds are not always easily available to retail investors outside the United States.
Ultimately, Fidelity Total Market Index is not a magical investment product. It is a low-cost and straightforward tool for investors who want to bet on the long-term growth of the U.S. stock market as a whole. Within a diversified portfolio, it can serve as a strong foundation when combined with other asset classes and regions.
