Fidelity Extended Market Index Fund’s index construction leads to an unintentional but persistent growth tilt, which has landed the fund in the mid-cap growth Morningstar Category. As the strategy does not deliberately target growth stocks, we have downgraded its Process Pillar rating to Average from Above Average. As a result, we have downgraded its Morningstar Analyst Rating to Bronze from Silver. This reflects our confidence in its ability to outperform new category peers in the long run, despite its roundabout growth bias.
Will FSMAX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable FSMAX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the FSMAX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of FSMAX’s parent organization’s priorities and whether they’re in line with investors’ interests.