Fidelity Series Global ex U.S. Index Fund (FSGEX)

Overview

This fund is designed for investors looking to diversify their investment portfolio outside of the United States by focusing on a wide range of assets from around the world, excluding the USA. It strategically invests a significant portion of its assets, at least 80%, in securities that are included in the MSCI All Country World Index (ACWI) ex USA. This index represents a broad spectrum of stocks across developed and emerging markets outside of the United States. The investment approach is a blend of following the index closely while utilizing statistical sampling techniques to optimize the portfolio. These techniques consider various factors such as company size (capitalization), industry sector allocations, dividend yields, valuation multiples like price/earnings (P/E) and price/book (P/B) ratios, earnings growth expectations, geographical distributions, and the impacts of foreign taxes. By employing such a methodical approach, the fund aims to approximate the returns of the benchmark index, thereby offering investors a comprehensive exposure to international markets.

Products and Services

• MSCI ACWI ex USA Index Tracking Investments
  

  This product involves investing directly in securities that are part of the MSCI All Country World Index ex USA. It allows investors to gain broad exposure to international equity markets across both developed and emerging economies, minus the United States. The fund's investment strategy ensures that a minimum of 80% of its assets are allocated to these securities or to depositary receipts (such as ADRs) that represent such securities. Through this fund, investors have a structured approach to diversifying their investment across a wide spectrum of countries, industries, and companies outside the US.

• Statistical Sampling Strategy for Portfolio Optimization
  

  This service involves the use of advanced statistical techniques to replicate the performance of the MSCI ACWI ex USA Index. These techniques include analyzing factors like capitalization for size representation, industry exposures for sectorial balance, dividend yield for income potential, price-to-earnings (P/E) ratio and price-to-book (P/B) ratio for valuation, earnings growth for profit potential, country weightings for geographical diversification, and the effect of foreign taxes on returns. The objective is to closely match the returns of the index, thereby reducing the tracking error and efficiently managing the portfolio's risk-reward profile.