Are you looking to invest in the S&P 500, one of the most popular and diversified stock market indices, but don’t know where to start? Look no further! In this comprehensive guide, we’ll walk you through the process of investing in the S&P 500 using the Fidelity app, a user-friendly and affordable platform for individual investors.
Why Invest in the S&P 500?
Before we dive into the process of investing in the S&P 500 with Fidelity, let’s first understand why this index is a popular choice among investors.
The S&P 500, also known as the Standard & Poor’s 500, is a stock market index that represents the market value of 500 large, publicly traded companies in the US. It’s widely considered to be a benchmark for the overall US stock market, making it a popular choice for investors who want to gain broad exposure to the market.
The benefits of investing in the S&P 500 include:
- Diversification: By investing in the S&P 500, you’ll gain exposure to a diverse range of companies across various industries, reducing your risk and increasing potential returns.
- Liquidity: The S&P 500 is one of the most liquid indices in the world, making it easy to buy and sell shares quickly and at a low cost.
- Historical performance: The S&P 500 has historically provided strong returns over the long term, making it a popular choice for long-term investors.
- Low costs: Investing in an S&P 500 index fund or ETF can be a cost-effective way to gain exposure to the market, with lower fees compared to actively managed funds.
Getting Started with Fidelity App
Now that we’ve covered the benefits of investing in the S&P 500, let’s move on to the process of getting started with the Fidelity app.
Fidelity is one of the largest and most reputable online brokerages in the US, offering a range of investment products, including index funds, ETFs, stocks, options, and more. The Fidelity app is available for both iOS and Android devices, making it easy to manage your investments on-the-go.
To get started with the Fidelity app, follow these steps:
Download and Install the App
- Go to the App Store (for iOS devices) or Google Play Store (for Android devices) and search for “Fidelity Investments”.
- Download and install the app on your device.
Open an Account
- Tap on “Open an Account” in the app and follow the prompts to create a new account.
- You’ll need to provide some personal and financial information, including your name, address, social security number, and employment details.
- Review and agree to Fidelity’s terms and conditions.
Fund Your Account
- Once your account is open, you’ll need to fund it with money to start investing.
- You can transfer funds from your bank account, wire money, or roll over an existing IRA or 401(k) account.
- The minimum account opening balance is $0, but you’ll need at least $250 to start investing in a brokerage account.
Investing in S&P 500 with Fidelity App
Now that you’ve set up your Fidelity account, it’s time to invest in the S&P 500. Here are the steps to follow:
Choose Your Investment Product
Fidelity offers a range of S&P 500 index funds and ETFs, each with its own unique features and benefits. Here are a few options to consider:
- Fidelity ZERO Large Cap Index Fund (FNILX): This is a zero-fee index fund that tracks the Fidelity US Large Cap Index, which is similar to the S&P 500.
- Fidelity 500 Index Fund (FUSAEX): This is a low-cost index fund that tracks the S&P 500 Index.
- Fidelity S&P 500 Index ETF (SPDR): This is an ETF that tracks the S&P 500 Index.
Place an Order
- Log in to the Fidelity app and tap on “Trade” at the bottom of the screen.
- Search for the investment product you want to buy, such as FNILX or FUSAEX.
- Enter the amount you want to invest and select “Buy”.
- Review and confirm your order.
Tips and Strategies for Investing in S&P 500 with Fidelity App
Here are some tips and strategies to keep in mind when investing in the S&P 500 with the Fidelity app:
Dollar-Cost Averaging
Dollar-cost averaging is a strategy that involves investing a fixed amount of money at regular intervals, regardless of the market’s performance. This can help you smooth out market volatility and avoid timing risks.
Long-Term Investing
The S&P 500 is a long-term investment. It’s essential to have a time horizon of at least five years, and preferably 10 years or more, to ride out market fluctuations and give your investments time to grow.
Monitor and Adjust
While the S&P 500 is a diversified index, it’s still important to monitor your investments regularly and rebalance your portfolio as needed. You can use the Fidelity app to track your investments and make adjustments to your portfolio.
Conclusion
Investing in the S&P 500 with the Fidelity app is a great way to gain broad exposure to the US stock market, with the potential for long-term growth and income. By following the steps outlined in this guide, you can get started with investing in the S&P 500 today.
Remember to always do your research, set clear financial goals, and develop a long-term investment strategy to help you achieve those goals. With the Fidelity app, you have the tools you need to take control of your investments and start building your wealth.
| Product | Fees | Minimum Investment |
|---|---|---|
| Fidelity ZERO Large Cap Index Fund (FNILX) | 0% | $0 |
| Fidelity 500 Index Fund (FUSAEX) | 0.015% | $2,500 |
| Fidelity S&P 500 Index ETF (SPDR) | 0.0945% | $0 |
Note: The fees and minimum investment amounts are subject to change and may not be up-to-date. Please check the Fidelity website for the most recent information.
What is the S&P 500, and why is it a good investment?
The S&P 500, also known as the Standard & Poor’s 500, is a stock market index that represents the market value of 500 large, publicly traded companies in the United States. It is widely considered to be a benchmark of the overall health of the US stock market and economy. The S&P 500 is a good investment because it provides broad diversification, as it includes companies from a wide range of industries and sectors. This diversification helps to reduce risk and increase the potential for long-term growth.
Investing in the S&P 500 can be an attractive option for beginners because it is a relatively stable and consistent investment. The index has a long history of providing returns that are higher than those of many other types of investments, such as bonds or savings accounts. Additionally, the S&P 500 is a widely followed and closely watched index, which means that there is a lot of information and analysis available to help inform investment decisions.
What is the Fidelity app, and how does it work?
The Fidelity app is a mobile application that allows users to buy, sell, and manage their investments from their smartphone or tablet. The app is available for both iOS and Android devices and can be downloaded from the App Store or Google Play Store. Through the app, users can access their Fidelity brokerage account and invest in a variety of assets, including stocks, bonds, mutual funds, and exchange-traded funds (ETFs).
The Fidelity app is designed to be user-friendly and easy to navigate, even for beginners. Users can use the app to place trades, check their account balances, and view their investment portfolios. The app also provides access to a range of investment research and analysis tools, including real-time market news and data. Additionally, the app offers a range of educational resources and investment guidance to help users make informed investment decisions.
How do I open a Fidelity account and start investing in the S&P 500?
To open a Fidelity account, users can download the Fidelity app and follow the prompts to create an account. This will involve providing some personal and financial information, as well as funding the account with money to invest. Once the account is open, users can use the app to browse the available investment options and select the S&P 500 index fund or ETF that they want to invest in.
To start investing in the S&P 500, users can then use the app to place a trade, specifying the amount of money they want to invest and the frequency of their investments. Fidelity offers a range of S&P 500 index funds and ETFs with different fees and investment minimums, so users can choose the option that best fits their investment goals and budget.
What are the fees associated with investing in the S&P 500 through Fidelity?
Fidelity offers a range of S&P 500 index funds and ETFs with different fees and investment minimums. The fees associated with investing in the S&P 500 through Fidelity will depend on the specific fund or ETF that is chosen. In general, index funds and ETFs tend to have lower fees than actively managed funds, as they track a particular market index rather than trying to beat it.
For example, Fidelity’s ZERO Large Cap Index Fund has an expense ratio of 0.015%, which means that for every $10,000 invested, the fund will charge $1.50 per year in fees. Fidelity’s 500 Index Fund has an expense ratio of 0.045%, which means that for every $10,000 invested, the fund will charge $4.50 per year in fees.
How much money do I need to start investing in the S&P 500 through Fidelity?
The amount of money needed to start investing in the S&P 500 through Fidelity will depend on the specific fund or ETF that is chosen. Some Fidelity funds and ETFs have a minimum investment requirement of $2,500 or more, while others have no minimum requirement at all.
For example, Fidelity’s ZERO Large Cap Index Fund has no minimum investment requirement, which means that users can start investing with as little as $1. Fidelity’s 500 Index Fund has a minimum investment requirement of $2,500. However, users can set up a systematic investment plan to invest a fixed amount of money on a regular schedule, such as monthly, which can help to reduce the upfront cost of investing.
Is investing in the S&P 500 through Fidelity a good option for beginners?
Yes, investing in the S&P 500 through Fidelity can be a good option for beginners. The S&P 500 is a widely followed and well-established index that provides broad diversification and has a long history of providing strong returns. Fidelity is a well-respected and established online brokerage firm that offers a range of investment options and tools to help users get started.
Fidelity’s app is also designed to be user-friendly and easy to navigate, even for beginners. The app provides access to a range of educational resources and investment guidance, which can help users make informed investment decisions. Additionally, Fidelity’s customer support is available 24/7 to answer any questions or concerns that users may have.
How do I manage my S&P 500 investment through the Fidelity app?
Managing an S&P 500 investment through the Fidelity app is relatively straightforward. Users can log in to the app and view their account balances and investment portfolios. From there, users can use the app to place trades, adjust their investment portfolios, and monitor their investment performance.
The Fidelity app also provides access to a range of investment research and analysis tools, which can help users stay informed and make informed investment decisions. Users can set up notifications and alerts to stay informed about market news and events that may affect their investments. Additionally, users can contact Fidelity’s customer support with any questions or concerns they may have.