Dave Ramsey Mutual Funds for a Fidelity Roth IRA

Someone asks:

I recently opened a Roth IRA with Fidelity. What are some good Fidelity funds that follow Dave Ramsey’s model?

I’ve begun investing in FBGRX for large-cap growth and FECGX for small-cap growth. I’m looking for mid-cap and international options, especially good funds in the four categories overall.

Dave Ramsey’s 4 Mutual Fund Types

Before you can build a portfolio based on Dave Ramsey’s investing strategy, you must first decide which mutual funds to include.

Luckily, we have that list handy. Dave recommends to spread your investments evenly among the four categories listed below:

  • Growth (25%)
  • Growth and Income (25%)
  • Aggressive Growth (25%)
  • International (25%)

Which Fidelity Funds to Choose?

Fidelity has a large selection of mutual funds that meet Dave Ramsey’s 4 mutual fund types.

Fidelity Blue Chip Growth Fund (FBGRX)

FBGRX is a growth mutual fund from Fidelity. It invests at least 80% in blue chip companies.

  • Expense ratio: 0.79%
  • Morningstar category: Large Blend
  • Minimum to Invest: $0.00
  • Dividend distribution: September, December
  • Similar Large-cap funds: FXAIX, FCNTX, FZROX, FSKAX, FNILX

FBGRX Top 10 Holdings

COMPANY SYMBOL TOTAL NET ASSETS
Apple Inc. AAPL 9.12%
Amazon Inc. AMZN 6.75%
Microsoft Corp. MSFT 6.75%
NVIDIA Corp. NVDA 6.51%
Alphabet Inc. Cl A GOOGL 6.18%
Meta Platforms Inc. FB 3.87%
Tesla Inc. TSLA 3.69%
Marvell Technology Inc. MRVL 2.77%
Salesforce Inc. CRM 1.79%
Lowe’s Cos. LOW 1.52%

Fidelity Extended Market Index Fund (FSMAX)

Fidelity’s FSMAX mutual fund seeks to provide investment results that track the total return of mid- to small-cap US companies.

  • Expense ratio: 0.035%
  • Morningstar category: Mid-Cap Growth
  • Minimum to Invest: $0.00
  • Dividend distribution: April and December

FSMAX Top 10 Holdings

COMPANY SYMBOL TOTAL NET ASSETS
Blackstone Inc. BX 1.19%
Block Inc. SQ 1.02%
Snowflake Inc. SNOW 0.95%
Uber Technologies Inc. UBER 0.76%
Marvell Technology Inc. MRVL 0.72%
Airbnb Inc. Cl A ABNB 0.71%
lululemon athletica inc. LULU 0.66%
Palo Alto Networks Inc. PANW 0.65%
Workday Inc. Cl A WDAY 0.64%
Snap Inc. SNAP 0.61%

Fidelity Small Cap Index Fund (FSSNX)

Fidelity’s FSSNX is a small-cap mutual fund that invests 80% of its assets in stocks from the Russell 2000 Index.

  • Expense ratio: 0.025%
  • Morningstar category: Small Blend
  • Minimum to Invest: $0.00
  • Dividend distribution: June and December
  • Similar Small-cap funds: FCPGX and VISGX

FSSNX Top 10 Holdings

COMPANY SYMBOL TOTAL NET ASSETS
AMC Entertainment Holdings Inc. Cl A AMC 0.58%
Asana Inc. Cl A ASAN 0.32%
Crocs Inc. CROX 0.32%
Ovintiv Inc. OVV 0.31%
Tetra Tech Inc. TTEK 0.30%
Lattice Semiconductor Corp. LSCC 0.30%
Intellia Therapeutics Inc. NTLA 0.29%
Avis Budget Group Inc. CAR 0.27%
Silicon Laboratories Inc. SLAB 0.27%
Saia Inc. SAIA 0.27%

Fidelity ZERO International Index Fund (FZILX)

FZILX is a no-fee fund from Fidelity with a focus on international companies. It tracks the total return of foreign developed and emerging stock markets.

  • Expense ratio: 0.00%
  • Morningstar category: Foreign Large Blend
  • Minimum to Invest: $0.00
  • Dividend distribution: December
  • Top 10 holdings: Taiwan Semiconductor, Nestle, Tencent, Samsung Electronics, ASML, Roche Holdings, Toyota Motor, LVMH, Alibaba, and Novartis.
  • Similar International funds: FSPSX and FEMKX.

FZILX Top 10 Holdings

COMPANY SYMBOL TOTAL NET ASSETS
Taiwan Semiconductor Manufacturing Co Ltd ORD 2330 1.43%
Nestle S.A. NSRGF 1.27%
Tencent Holdings Ltd. TCTZF 1.25%
ASML Holding N.V. ASMLF 1.16%
Samsung Electronics Co. Ltd. SSNLF 1.09%
Roche Holding AG Part. Cert. RHHVF 0.97%
Alibaba Group Holding Ltd. ADR BABA 0.83%
Toyota Motor Corp. TOYOF 0.81%
LVMH Moet Hennessy Louis Vuitton SE LVMHF 0.74%
Novartis AG NVSEF 0.69%

How Each Fund Performed in the Last 5 Years

Funds Fidelity® Blue Chip Growth Fund Fidelity® Extended Market Index Fund Fidelity® Small Cap Index Fund Fidelity® ZERO International Index Fund
1 month -1.10% +0.57% +2.21% +3.83%
3 months +6.96% +0.71% +2.10% +2.02%
6 months +7.16% -2.61% -2.40% -0.93%
1 year +22.71% +12.41% +14.71% +8.21%
3 years +38.49% +23.89% +20.05% +13.50%
5 years +29.58% +15.30% +12.11%

How are you building your portfolio?


Tyler W:

Fidelity is great at waving loads and transaction fees. I use Fidelity and am currently in FSCSX, MACGX, QUASX, and MIOPX. Fidelity waived the fees on all of them, and I’m considering switching to CPOAX, which they also waive the fees on.

Daniel S:

FOCPX is solid. That’s probably the best one I use that aligns with Dave 100%. They have good index funds, but many of their top performers are sector funds, and Dave doesn’t recommend those.

Aaron M:

Just so that you’re aware of it, you can buy Vanguard ETFs commission-free on the Fidelity platform. You can also buy the Vanguard mutual funds for a transaction fee ($75 per trade). I tend to prefer the Vanguard funds over Fidelity funds.

The following allocation will more or less correspond to Dave’s categories, with 25% in each:

  • VOO (Vanguard S&P 500 ETF)
  • VO (Vanguard Mid Cap ETF)
  • VB (Vanguard Small-Cap ETF)
  • VXUS (Vanguard Ex-US International ETF)

Each of those also has mutual fund equivalents if you prefer to steer clear of ETFs (as Dave tends to advise).

Coke S:

For me, I’m 29 years old, so it varies. I do 40% large-cap 30%, mid-cap 20%, small-cap 10% international. This would be considered very aggressive.

Mike L:

My portfolio:

  • Growth & Income: FXAIX
  • Growth: FSMDX
  • Aggressive Growth: FSSNX
  • International: FTIHX

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Hi! I'm Diego, 38, and I currently reside in New York. I work as a financial analyst. I primarily focus on initiatives involving research and data analysis.

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