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How To Build a 3 Fund Portfolio at Fidelity in 2025

Last Updated: July 17, 2023 5 Comments – 2 min. read

This post will walk you through how to build a Bogleheads 3 Fund Portfolio using Fidelity index mutual funds.

Interested in more Lazy Portfolios? See the full list here.

Disclosure:  Some of the links on this page are referral links. At no additional cost to you, if you choose to make a purchase or sign up for a service after clicking through those links, I may receive a small commission. This allows me to continue producing high-quality content on this site and pays for the occasional cup of coffee. I have first-hand experience with every product or service I recommend, and I recommend them because I genuinely believe they are useful, not because of the commission I may get. Read more here.

Contents

  • Fidelity 3 Fund Portfolio Video
  • Introduction – Bogleheads 3 Fund Portfolio
  • How To Build a Fidelity 3 Fund Portfolio

Fidelity 3 Fund Portfolio Video

Prefer video? Watch it here:

Introduction – Bogleheads 3 Fund Portfolio

If you've arrived here, hopefully the Bogleheads 3 Fund Portfolio needs no introduction. I've got more details on it in a separate post here. The late John Bogle was considered the “father of index investing” and espoused the benefits of low cost indexing over more expensive active management or stock picking that are very likely to underperform the market.

The 3 Fund Portfolio is a lazy portfolio that allows investors to save big on both time and fees with its simplicity using 3 broadly diversified index funds: a total U.S. stock market fund, a total international stock market fund, and a total U.S. bond market fund. With this portfolio there's no need to constantly monitor holdings or do any trading other than maybe rebalancing once annually.

Fidelity is at the forefront of the race to zero for fees on index funds, especially with their line of ZERO funds. They have a proven track record as a reliable broker.

Now let's go through the exact steps to build a 3 Fund Portfolio at Fidelity

How To Build a Fidelity 3 Fund Portfolio

So first we want to choose funds to use.

For U.S. stocks, we want a fund that captures the total U.S. stock market. At Fidelity we can do that with FSKAX, the Fidelity Total Market Index Fund, or if you prefer one of Fidelity's ZERO fund with zero fees, FZROX. Just remember those ZERO funds cannot be bought or transferred outside of Fidelity.

U.S. stocks don't consistently outperform every other country in the world, so we want to add the international stock market as well. We can do that with FSGGX, the Fidelity Global ex US Index Fund. The comparable ZERO fund here would be FZILX.

Bonds tend to be uncorrelated to stocks and offer a diversification benefit to the portfolio. Most Bogleheads prefer to use the total U.S. bond market. Fidelity's total U.S. bond market fund is FXNAX.

The next step is to choose your asset allocation. This is going to be based on your personal goals, time horizon, and risk tolerance. Only you can decide those things, but a reasonable one-size-fits-most allocation would be 80% stocks and 20% bonds. U.S. stocks comprise a little more than half of the global stock market, so putting it all together, our hypothetical Fidelity 3 fund portfolio might look like this:

50% U.S. stocks with FSKAX or FZROX
30% International stocks with FSGGX or FZILX
20% U.S. bonds with FXNAX

Remember to periodically rebalance your portfolio as allocations shift; annually is fine.


What does your Fidelity 3 fund portfolio look like? Let me know in the comments.

Are you nearing or in retirement? Use my link here to get a free holistic financial plan and to take advantage of 25% exclusive savings on financial planning and wealth management services from fiduciary advisors at Retirable to manage your savings, spend smarter, and navigate key decisions.

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Disclosures:  None.

Interested in more Lazy Portfolios? See the full list here.

Disclaimer:  While I love diving into investing-related data and playing around with backtests, this is not financial advice, investing advice, or tax advice. The information on this website is for informational, educational, and entertainment purposes only. Investment products discussed (ETFs, mutual funds, etc.) are for illustrative purposes only. It is not a research report. It is not a recommendation to buy, sell, or otherwise transact in any of the products mentioned. I always attempt to ensure the accuracy of information presented but that accuracy cannot be guaranteed. Do your own due diligence. I mention M1 Finance a lot around here. M1 does not provide investment advice, and this is not an offer or solicitation of an offer, or advice to buy or sell any security, and you are encouraged to consult your personal investment, legal, and tax advisors. Hypothetical examples used, such as historical backtests, do not reflect any specific investments, are for illustrative purposes only, and should not be considered an offer to buy or sell any products. All investing involves risk, including the risk of losing the money you invest. Past performance does not guarantee future results. Opinions are my own and do not represent those of other parties mentioned. Read my lengthier disclaimer here.

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Are you nearing or in retirement? Use my link here to get a free holistic financial plan and to take advantage of 25% exclusive savings on financial planning and wealth management services from fiduciary advisors at Retirable to manage your savings, spend smarter, and navigate key decisions.

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About John Williamson, APMA®

Analytical data nerd, investing enthusiast, fintech consultant, Boglehead, and Oxford comma advocate. I'm not a big fan of social media, but you can find me on LinkedIn and Reddit.

Reader Interactions

Comments

  1. Jessica says

    May 3, 2024 at 10:19 am

    Age 19, just started Fidelity Roth, and have FXAIX, S&P 500. But want to start long-term taxable fidelity account as well. Is this 3 pronged approach recommended for both Roth & Taxable? If so, thinking about 80% Total Stock market, plus 20% International. Please help! Young, hungry, but humble.

    Reply
  2. Andrew says

    May 4, 2023 at 9:33 am

    I read what you wrote about the value of long term treasuries in a diversified portfolio in your explanation of the ginger ale portfolio. What would you think about Fidelity’s long term treasury bond fund (FNBGX) here instead of FXNAX?

    Reply
    • John Williamson, APMA® says

      May 4, 2023 at 6:21 pm

      Only you can decide if that’s appropriate for you.

      Reply
  3. Elliot says

    March 31, 2023 at 4:26 pm

    Why not use FTIHX? From what I’ve ready FSGGX or FZILX do not offer as much exposure to small cap international.

    Reply
    • John Williamson says

      March 31, 2023 at 6:55 pm

      That works too.

      Reply

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