Fidelity Select Fundranker

Fundranker Blog—Nasdaq Composite vs S&P 500

Nasdaq Composite vs S&P 500

Here at Fidelity Select Fundranker, we track the Nasdaq Composite and the S&P 500 Indexes so that we can compare their returns to Fundranker Top Eight Model Portfolio returns. We have tracked the S&P 500 Index since January, 1997, using Fidelity’s Spartan 500 Index Fund (FSMKX), and we have tracked the Nasdaq Composit Index since October, 2003, using Fidelity’s Nasdaq Composite Index Fund (FNCMX), which began operations in September, 2003. We began our Nasdaq Composite Index tracking portfolio on September 30, 2003, with the number of shares of FNCMX that gave it the same dollar balance as our S&P 500 tracking portfolio had on September 30, 2003.

As of April 22, for the first time since January, 2004, our Nasdaq Composite Index tracking portfolio’s value surpassed our S&P 500 tracking portfolio’s value. The Nasdaq Composite Index is heavily weighted toward technology stocks, which have been some of the best performers during the recent rally. This strength in technology stocks has propelled several Select technology funds into our Top Eight Model Portfolio, and at this point in April, it looks like another one or two Select technology funds may join the Top Eight Model Portfolio for May. Perhaps this strength in technology will provide the leadership needed to begin our recovery from recession as well as returning the Top Eight Model Portfolio to its customary role of outperforming the indexes.

Posted 4/23/09 1:04pm ET in Fundranker, Market