Index funds are comparatively safer investments than other financial assets such as currencies, commodities, and cryptocurrencies. These are attractive investment options for individual investors who like to generate passive income without participating in frequent trades. These funds enjoy considerable returns over a particular period with only small management fees.
Fidelity Large Cap Growth Index Fund is one of the most popular index funds. However, it is worth checking several data, including performance, history, fees, etc., to learn the potentiality before making any investment decisions.
What is the Fidelity Large-Cap Growth Index Fund (FSPGX)?
It is a mutual index fund that seeks to provide corresponding results of the total return amount of the large-capitalization stocks of the United States companies. This fund usually invests 80% of its assets in securities that are worth over 10.03B in assets in total.
It belongs to the significant growth category; the fund family is Fidelity investments, and the portfolio style is “growth.” The advisor of this fund lends securities to generate incomes for this fund. This fund involves investing in securities, including the Russell 1000® Growth Index, a market capitalization-weighted index, and the designing purpose is to measure the performance of the large-cap growth segment of the United States equity market.
This fund invests in several sectors, including technology, finance, retail trade, health, non-durable, energy, etc. Meanwhile, the top ten holdings of this fund include Apple Inc., Microsoft Corp., Amazon.com Inc., Tesla Inc., etc.
History of the fund
This fund has been operating for over five years as the inception date is 6 Jun 2016. Since its inception, the lead manager of this fund has been Deane Gyllenhaal, who worked as a senior portfolio manager at Hartford Investment Management before joining this fund.
The fund price is floating near $25.89 today at writing. The dividend frequency of this fund is semiannual. Fidelity Investments is a popular name among many investors worldwide for its brokerage platform. It is very responsive to investors’ concerns and effective that several Fidelity managers have investments in the funds, which is a sign of conviction.
Rankings info
Checking on ranking info is essential when choosing an index fund as this info can assure you about the fund’s potentiality. Many organizations do this ranking by observing and comparing several data with many other funds of a similar category. Morningstar is a famous organization that gives ratings on stars. A five-star rating to the top 10%, the next 22.5% gets a four-star rating, and the next 35% receives a three-star rating.
FSPGX receives an overall four-star rating from morningstar.
Trailing total returns
The return info helps investors to make investment decisions as all investments occur in expectations of returns. The YTD return of this fund remains negative at -12.65%. Meanwhile, the 1-Y return is 12.71%, 3-years return is 22.95%, and the 5-years return is 20.06%.
The trailing total return for one month is 2.1%, which is 11.62% for a three-month duration, and for six months, that is 12.91%.
We are attaching the past quarterly return info chart below for a better understanding.
Performance measurement
Tracking performance info helps to understand the asset potentiality. Let’sLet’s look at the chart below that contains the performance overview of the fund.
While measuring performance, it is worth checking the trailing return vs. benchmark chart to understand better.
We are attaching a hypothetical growth chart of FSPGX below that shows a sharp rise in the past years.
Now check on the calendar year total return chart that contains other info.
Anyway, past performance doesn’t guarantee any future profits, but choosing assets with good performance is essential. Now we are attaching the cumulative return chart of FSPGX.
Fees and costs
Fees are comparatively low for FSPGX among other index funds in a similar category, and the expense ratio of this fund FSPGX is 0.04%.
There are no minimum investment amounts, so you can invest any amount you want and enjoy considerable returns over the period by paying only a tiny amount of management fees.
Risk measurement
Foreign securities matter to many factors such as economic and political risks, currency exchange rate, interest rate, etc. Several factors affect the price fluctuations of the foreign market, stock market, equity markets, etc., including political issues, market or economic developments, regulatory issues, etc. Risk factors of these index funds vary with several factors, including time duration, simple selection, and transaction costs. Any investor should also consider index addition and deletion data while choosing an index fund to invest in.
The alpha ratio of FSPGX is 0.35, and the beta value is 1.02. Meanwhile, the standard deviation value is 5.44.
Volatility measurements
This fund holds shares of many large companies that have been operating all over the globe. The beta value of FSPGX is 1.00. Meanwhile, the Sharpe Ratio is 1.34, and the Standard Deviation value is 19.10.
The volatility info confirms that the fund FSPGX is sufficiently volatile to make an investment and generate an impressive return over a specific period.
FSPGX 2022 forecast
Forecasting any asset price’s future price requires sufficient research and analysis. We researched the Fidelity Large-Cap Growth Index fund while making forecasts and checking on all available data about this fund, including historical performance, risk factors, costs, etc.
This fund’s last considerable decline during the Covid-19 pandemic time, and then it recovered and continues to increase more. According to our research, this fund can be a potential investment in the following years if any uncertain events don’t occur.
Final thought
We highlight all essential info about the fund FSPGX in this article. This fund can be a potential investment for anyone to generate passive income over a particular period. We suggest checking on several factors, including investment amount, investment duration, return expectations, etc., while deciding to invest in this fund.
