Introduction to FSPGX
Are you searching for a mutual fund that offers exposure to large-cap growth stocks with minimal costs? The Fidelity Large Cap Growth Index Fund, or FSPGX, could be the answer.
Managed by Fidelity Investments, FSPGX aims to track the Russell 1000 Growth Index, which includes leading U.S. companies with strong growth potential. With $31.23 billion in assets under management as of recent data, FSPGX is a popular choice for investors seeking long-term growth.
This article explores FSPGX in depth, covering its performance, holdings, fees, risks, and suitability, helping you decide if it fits your investment goals.
Overview of FSPGX
The Fidelity Large Cap Growth Index Fund (FSPGX) was launched on June 7, 2016, under the Fidelity Investments umbrella, a trusted name in the industry. Its primary goal is to replicate the performance of the Russell 1000 Growth Index, a market capitalization-weighted index focusing on large-cap U.S. stocks with growth characteristics.
By investing at least 80% of its assets in securities within this index, FSPGX provides exposure to sectors like technology, consumer discretionary, and healthcare. As a passively managed fund, FSPGX keeps costs low by mirroring the index rather than actively selecting stocks, making it an efficient choice for investors.
Performance Analysis of FSPGX
Performance is a key consideration when evaluating mutual funds. As of recent data, FSPGX’s net asset value (NAV) is $39.07, with a 1-day return of -0.03%. Over the past year, FSPGX has achieved a return of 14.46%, which is solid but trails the category average of 41.70%.
Over longer periods, the fund shines, with a 3-year annualized return of 15.59% and a 5-year return of 17.20%. These figures suggest FSPGX offers consistent growth for long-term investors, though it may not always lead its peers. Past performance doesn’t guarantee future results, so consider your investment timeline carefully.
| Year | FSPGX Return (%) | Category Average (%) |
| 2024 | 33.26 | – |
| 2023 | 42.77 | – |
| 2022 | -29.17 | – |
| 2021 | 27.58 | – |
| 2020 | 38.43 | 35.86 |
FSPGX ranks 26th in its category for 1-year performance and 10th for 5-year performance, indicating strong long-term results.
However, its year-to-date return of -8.37% lags behind the category’s 12.38%, highlighting its sensitivity to market fluctuations. Investors should weigh these metrics against their risk tolerance and goals.
Holdings of FSPGX
Understanding a fund’s holdings is essential for assessing its investment strategy. FSPGX mirrors the Russell 1000 Growth Index, with its top 10 holdings comprising 56.7% of the portfolio. These include:
- Apple Inc. (11.97%)
- Microsoft Corp. (10.23%)
- NVIDIA Corp. (9.30%)
- Amazon.com Inc. (6.60%)
- Meta Platforms Inc. Class A (4.24%)
- Alphabet Inc. Class A (3.36%)
- Broadcom Inc. (2.89%)
- Alphabet Inc. Class C (2.80%)
- Tesla Inc. (2.78%)
- Eli Lilly and Co. (2.55%)
These companies, primarily in technology and consumer discretionary sectors, drive FSPGX’s growth potential. The heavy weighting in tech giants like Apple and Microsoft aligns with the index’s focus on high-growth firms but also increases exposure to sector-specific risks.
Fees and Expenses
Low fees are a hallmark of index funds, and FSPGX excels in this area. Its adjusted expense ratio is 0.035%, well below the category average of 1.01%. This cost efficiency ensures more of your investment contributes to returns rather than fees.
Additionally, FSPGX offers a dividend yield of 0.40%, providing a modest income stream alongside capital growth. For long-term investors, low fees can significantly enhance returns over time, making FSPGX an attractive option for cost-conscious investors.
| Metric | FSPGX | Category Average |
| Expense Ratio | 0.035% | 1.01% |
| Dividend Yield | 0.40% | – |
Risk and Volatility
Investing in FSPGX involves risks, particularly due to its focus on growth stocks. The fund’s 5-year beta is 1.10, indicating slightly higher volatility than the broader market. Morningstar rates FSPGX’s risk as “Above Average,” reflecting the inherent volatility of growth-oriented investments.
While this can lead to significant gains, it also means potential for larger losses during market downturns. Investors should consider their risk tolerance and ensure FSPGX aligns with their financial objectives, especially if they prefer stability over growth.
Suitability for Investors
FSPGX is ideal for investors seeking long-term capital appreciation and comfortable with above-average risk. Its focus on large-cap growth stocks makes it suitable for those who believe in the continued outperformance of companies like Apple and NVIDIA.
However, conservative investors or those with short-term goals may find the fund’s volatility too high. FSPGX fits well in a diversified portfolio, particularly for retirement accounts with long investment horizons. Always consult a financial advisor to ensure it matches your risk profile and goals.
Comparison with Similar Funds
FSPGX competes with other large-cap growth funds, such as the Vanguard Growth Index Fund (VUG) and Schwab U.S. Large-Cap Growth ETF (SCHG). While VUG has a slightly higher expense ratio, it offers a longer track record.
SCHG, an ETF, provides intraday trading flexibility. FSPGX’s low fees and solid performance make it competitive, but investors should compare these options based on fees, performance, and investment style to find the best fit.
FAQs about FSPGX
What is the minimum investment for FSPGX?
FSPGX has no minimum initial investment for certain accounts, like retirement plans, but other account types may have requirements. Check with Fidelity Investments for details.
Does FSPGX pay dividends?
Yes, FSPGX pays dividends with a yield of 0.40%, offering a small income stream.
What is the expense ratio of FSPGX?
The adjusted expense ratio is 0.035%, significantly lower than the category average.
How has FSPGX performed over 5 years?
FSPGX has a 5-year annualized return of 17.20%, ranking it among the top in its category.
Is FSPGX suitable for retirement?
FSPGX can be a strong addition to a retirement portfolio for long-term growth investors.
Conclusion
The Fidelity Large Cap Growth Index Fund (FSPGX) offers a compelling option for investors seeking exposure to large-cap growth stocks. Its low expense ratio of 0.035%, solid 5-year return of 17.20%, and focus on leading companies like Apple and Microsoft make it attractive for long-term growth.
However, its above-average risk and volatility may not suit everyone. Consider your financial goals and risk tolerance before investing. If FSPGX aligns with your strategy, explore it further with Fidelity Investments to enhance your portfolio’s growth potential.
