Your Zero vs. Managed Experiment — Current Pairings
⚠ Timing Note — You May Have Sold at the Inflection Point
FZIPX lagged because of its asset class, not its structure. For roughly 5 years, the Magnificent 7 dominated returns — the S&P 500 gained ~98% from late 2022 lows vs. ~55% for small-cap indices. FZIPX had zero large-cap exposure by design. FSMAX had the same problem; it just costs 0.035% more for the same underperformance.
As of mid-2026, the narrative has reversed: small-cap growth is up +6.02% vs. large-cap growth's +0.13% YTD (Morningstar data). Institutional rotation out of mega-cap tech — driven by high AI capex spending and margin pressure — is underway. Worth knowing before redeploying away from the category entirely.
The Fidelity ZERO extended market lineup ends at FZIPX — there's no fifth ZERO fund to slot in here. The freed capital is best redeployed into a new category, not another extended market fund, since FSMAX already covers that exposure.
FCPGX
Fidelity Small Cap Growth Fund
Core Active
● Above Avg
Top Holdings (highly diversified — no single dominant position)
BrightSpring Health Services1.33%
200+ additional small-cap positionseach <1%
- The natural FZIPX upgrade. Same small-cap mandate — active management added 4.3 percentage points above the category YTD 2026. This is exactly the argument for paying 0.94% vs. 0%: when the manager is beating passive by that margin, the fee pays for itself many times over.
- The 2026 small-cap rotation is in its early innings. If institutional money continues rotating out of mega-cap AI into small-caps, FCPGX is positioned to capture that with selectivity rather than passive index weight.
- Maximum diversification within small-cap. No single holding dominates. Concentrated sector bets are spread across healthcare, tech, industrials, and energy — manager alpha comes from stock selection, not sector tilts.
- Higher ER than ZERO funds (0.94%) is the main trade-off. At +4.3pp of outperformance, the net-of-fee advantage is substantial. Watch annually to confirm it's still earning its keep.
The most direct like-for-like replacement for FZIPX — same asset class, active alpha on top. If you believe in small-cap growth for the next decade, this is the right vehicle.
FBGRX
Fidelity Blue Chip Growth Fund
Core Active
● Gold Medalist
Top Holdings — Top 10 = 58.9% of fund (May 2026)
NVDA — Nvidia Corp.14.74%
6–10: META, AVGO, NFLX, LLY, others~12.8% combined
- Fidelity's premier active large-cap growth fund, earning Gold Medalist status. 20.39% annualized over 10 years — beating the S&P 500 by a meaningful margin through active security selection among large-cap growth names.
- 229 holdings vs. FOCPX's narrower OTC focus. Both are growth-oriented, but FBGRX is more broadly diversified and includes NYSE-listed names. It's additive, not a duplicate. FOCPX leans tech/OTC; FBGRX leans winners across sectors.
- 1-year return of +35.12% reflects the AI and mega-cap growth cycle. Long-term 20.39% annualized is what matters most for a Roth IRA with a 20+ year runway. The active fee (0.61%) has consistently been earned back.
- If you can only add one fund from this list, FBGRX is the most versatile choice. Best for a meaningful allocation, not a small satellite.
Gold Medalist, 5 stars, 20% annualized over a decade. The best all-around active large-cap growth fund in Fidelity's lineup — and the most logical home for a significant portion of the FZIPX money.
FSELX
Fidelity Select Semiconductors Portfolio
Sector Satellite
● Gold Medalist
Top Holdings — Top 10 = 78.79% of fund (April 2026)
NVDA — Nvidia Corp.22.48%
AVGO — Broadcom Inc.13.34%
MRVL — Marvell Technology9.13%
NXPI — NXP Semiconductors6.29%
MPWR — Monolithic Power Systems6.25%
ON — ON Semiconductor5.61%
GFS — GlobalFoundries4.51%
LRCX — Lam Research, plus others~7.1% combined
- The best 10-year performer in Fidelity's entire fund lineup at 35.22% annualized. A $10,000 investment a decade ago is worth over $200,000 today. This is what AI-era semiconductor demand looks like from the fund side.
- 79% in the top 10 holdings — extreme concentration. This is both the strength and the risk. When semiconductors win (AI capex cycles), it wins enormously. When it corrects (export controls, cycle downturn), it corrects hard. Sized correctly, this is the highest-upside position in the list.
- Gold Medalist, 5 stars, $54.4B AUM. Not a niche fund — this is Fidelity's flagship semiconductor vehicle and institutional confidence is very high.
- Best used as a satellite: 10–20% of portfolio rather than a core position. Aggressive and appropriate for a 39-year-old Roth IRA with decades of runway. Do not size this as your primary fund.
Best 10-year fund in Fidelity's lineup. Own it as a high-conviction satellite, sized for the volatility you can stomach when semiconductors have a bad quarter.
FBIOX
Fidelity Select Biotechnology Portfolio
Sector Satellite
● Silver Medalist
Top Holdings — Top 10 = 48.11% · 88% biotech / 11% pharma
KRYS — Krystal Biotech10.58%
GILD — Gilead Sciences4.82%
ALNY — Alnylam Pharmaceuticals2.93%
PRAX — Praxis Precision Medicine2.47%
ASND — Ascendis Pharma2.04%
RVMD — Revolution Medicines2.02%
- The only healthcare sector exposure in the portfolio. FOCPX, FBGRX, FXAIX, FZROX — all are tech-heavy by weight. FBIOX is the one fund that adds genuine sector diversification away from tech.
- 216 holdings spanning gene therapy, rare disease, oncology, GLP-1 adjacency, and immunology. The GLP-1 era (LLY, Novo) has expanded interest and funding in adjacent biotech broadly — tailwind for the next decade.
- Silver Medalist, +34.20% 1-year. Not the speculative biotech of 2021 — FBIOX has significant large-cap pharma anchors (AbbVie, Amgen, Gilead) stabilizing the more speculative smaller positions.
- Appropriate as a 10–15% satellite alongside FBGRX or FSELX. More volatile than FBGRX but less concentrated than FSELX.
The best sector diversifier on this list — adds healthcare biotech exposure that's absent everywhere else in the portfolio. Silver Medalist with strong 1-year momentum heading into an active GLP-1/gene therapy decade.
FMILX
Fidelity New Millennium Fund
Flexible
● Silver Medalist
Top Holdings (April 30, 2026) — Top 10 = 41.9%
AVGO — Broadcom Inc.2.44%
XOM — ExxonMobil Corp.1.88%
Additional holdingsbalance
- The most interesting structural difference: SpaceX at 4.35%. This is a private company — one of the most valuable in the world and essentially inaccessible to retail investors without FMILX. That alone makes it worth owning a small amount for the private market exposure.
- Silver Medalist, go-anywhere mandate means the manager can hold anything — public, private, domestic, international, any cap size. Most concentrated position (NVDA) is only 8.6%, which is meaningfully less than FBGRX or FSELX.
- Main concern: lofty fees. Morningstar explicitly flags the expense ratio as its primary weakness. Above-average fees in a go-anywhere fund mean the manager has a higher bar to justify active selection. Watch the net-of-fee return vs. a simpler index fund.
- Best use: small allocation (5–10%) specifically for the SpaceX and private market angle. The public stock exposure largely overlaps with your existing holdings.
Own it for SpaceX — that's the unique value. It's the only retail-accessible path to private pre-IPO SpaceX exposure. Size it accordingly: small, purposeful, not a core position.
FSMDX
Fidelity Mid Cap Index Fund
Index Passive
● Gold Medalist
Top Holdings — Top 10 = ~7% · 806 holdings (Russell Midcap Index)
SNDK — SanDisk Corp.1.75%
WDC — Western Digital1.30%
VRT — Vertiv Holdings0.87%
PWR — Quanta Services0.76%
HWM — Howmet Aerospace0.75%
BNY — Bank of New York Mellon0.69%
- Gold Medalist, 5-star passive index at 0.025% ER. Tracks the Russell Midcap Index — ~806 stocks covering only the mid-cap segment of the US market. Not a ZERO fund (those track proprietary Fidelity indexes), but at 0.025%, the fee difference is negligible in practice.
- Critical distinction from FSMAX: FSMAX is a "completion" fund — everything NOT in the S&P 500 (mid + small + micro-cap, ~3,391 holdings). FSMDX is pure mid-cap only (~806 holdings) with zero small-cap or micro-cap exposure. Holding FNILX + FSMAX already gives broad mid-cap coverage; adding FSMDX deliberately overweights mid-caps. That's a specific thesis, not index neutrality.
- Top 10 holdings = only ~7% of the fund — the widest diversification on this list. Holdings read like a cross-section of the real US economy: data infrastructure (Corning, Vertiv, Ciena, Datadog), industrials (Howmet, Cummins, Quanta), storage (SanDisk, Western Digital), financials (BNY). Notably absent: any Magnificent 7 names.
- 1-year +17.1% trails FSMAX's 1-year (~19.7%) slightly, but FSMDX is intentionally narrower. The trade-off is less small-cap upside in exchange for less small-cap volatility — a smoother mid-cap ride.
- Best use case: You want deliberate mid-cap tilt over large-cap-heavy FNILX/FZROX, but cleaner than FSMAX's mid+small blend. Or you want a large+mid barbell alongside FNILX — targeted, not total-market. At 0.025%, the cost is not a barrier.
Gold Medalist passive mid-cap index at near-zero cost. Pure mid-cap exposure, maximum diversification, zero Magnificent-7 overlap. The surgical alternative to FSMAX if you want mid-cap upside without small-cap turbulence.