FidelityIndex

Fidelityindex is a fictional equity index created for illustrative purposes. It is described as a broad, rules-based benchmark intended to reflect the performance of a wide cross-section of U.S. publicly traded equities. The index is designed to be investable, transparent, and easy to replicate by passive investment vehicles and educational materials.

Methodology: The universe comprises U.S.-listed common stocks that meet basic liquidity screens. Securities are selected through a rules-based process and are weighted by market capitalization with caps to limit concentration. Rebalancing occurs quarterly to reflect new data while limiting turnover. A total-return variant includes the reinvestment of dividends, while a price-return variant excludes them.

Usage and variants: Fidelityindex serves as a benchmark for passive funds and as a teaching tool in discussions of index construction. Funds and ETFs may reference Fidelityindex Total Return for performance comparisons or Fidelityindex Price Return for price-only analysis. The index is meant to be simple to understand and cost-efficient to replicate, though replication costs and tracking error can still arise in practice.

Limitations and reception: As a fictitious construct, Fidelityindex is not tied to a real family of products and thus has no official track record. In real-world applications, similar indices face concerns such as sector balance, data quality, and methodological bias affecting comparability with other benchmarks.

See also: List of major stock indices; Index fund; Passive investing; Benchmarking.