Fidelity Small Cap Index Fund Q1 2025 Commentary

2025-05-07 07:50:00 ET

Summary

• Fidelity Small Cap Index Fund is a diversified domestic small-cap equity strategy that seeks to closely track the returns and characteristics of the Russell 2000 Index.
• The fund finished the first quarter about in line with the -9.48% result of the Russell 2000 Index.
• Amid rising volatility, the index posted a notable gain through February 19, but then sharply reversed course and fell solidly into negative territory by the end of the quarter, particularly dragged down by growth stocks and smaller-caps.

Investment Approach

• Fidelity® Small Cap Index Fund is a diversified domestic small-cap equity strategy that seeks to closely track the returns and characteristics of the Russell 2000® Index.
• The Russell 2000® Index is a market-capitalization-weighted index designed to measure the performance of the smallest 2,000 companies in the Russell 3000® Index.
• The fund aims to hold each constituent security at approximately the same weight as the index, but may also employ an optimization approach that relies on historical data and correlations to build a portfolio of securities that closely matches the composition and characteristics of the benchmark. As part of this approach, a proxy security may be used in instances where it may be suboptimal or impractical to hold the same security as the index, such as foreign ownership restrictions, round-lot size constraints, compliance limitations, and liquidity and tax issues.

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