Index – Finance Master

The Lipstick Index

admin — Tue, 09 Jun 2026 23:06:30 +0000

What Is the Lipstick Index?

The Lipstick Index is a term coined by Leonard Lauder, former chairman of Estée Lauder, during the early 2000s recession. It describes the phenomenon where consumers, during economic downturns, opt for affordable luxuries like lipstick instead of more expensive items. This behavior suggests that even in tough times, people seek minor indulgences to boost morale.

Lipstick Sales vs. Market Performance: June 2024–May 2025

Analyzing the period from June 2024 to May 2025 reveals intriguing trends:

Lipstick sales experienced consistent growth, averaging around 2% month-over-month increases.
The S&P 500 displayed volatility, with notable declines in March (-5.97%) and April (-0.51%) 2025, before rebounding in May (+5.92%).
Recession prediction models peaked in March 2025 at a 45% probability, indicating heightened economic uncertainty.

This divergence suggests that while investor confidence wavered, consumer spending on small luxuries remained resilient.

The Lipstick Index in Action: Visualizing the Data

Key Observations:

March 2025: As recession risk peaked and the S&P 500 declined sharply, lipstick sales growth remained positive. Even a very small increase in sales at the bottom of the market
April–May 2025: Despite market volatility, lipstick sales continued their upward trend, highlighting consumer inclination towards affordable indulgences during uncertain times.

Michael Burry’s Strategic Shift: Doubling Down on Estée Lauder

In a notable move, Michael Burry, renowned for predicting the 2008 financial crisis, has restructured his investment portfolio:

Scion Asset Management, Burry’s firm, doubled its stake in Estée Lauder, acquiring 200,000 shares valued at approximately $13.2 million, according to their latest 13F filing
Concurrently, Burry liquidated most of his other holdings, including significant positions in Chinese tech companies, and initiated bearish bets against firms like Nvidia .

This concentrated investment suggests Burry’s confidence in Estée Lauder’s potential resilience amid economic downturns.

Interpreting Burry’s Move: A Bet on the Lipstick Index?

Burry’s focus on Estée Lauder aligns with the principles of the Lipstick Index:

Consumer Behavior: Even during economic hardships, consumers tend to indulge in small luxuries, such as cosmetics.
Market Resilience: The beauty industry, particularly companies like Estée Lauder, often demonstrates stability during market downturns.

By investing heavily in Estée Lauder, Burry appears to be banking on the enduring demand for affordable luxuries, even as broader markets face volatility.

Investment & Marketing Implications

For Investors:

Estée Lauder (EL) and similar beauty companies may offer defensive investment opportunities during economic downturns.
Monitoring consumer behavior trends can provide insights into resilient sectors.

Limitations of the Lipstick Index

While the Lipstick Index offers valuable insights, it’s essential to consider its limitations:

Evolving Consumer Preferences: Shifts towards skincare and wellness products may influence traditional lipstick sales. So while it may not be just Lipstick going up, but other “value” or affordable and feel good items. Instead of the $200 perfume, it’s the $20 eye shadow.
Global Market Dynamics: Factors like supply chain disruptions and geopolitical tensions can impact the beauty industry.

Final Thoughts

The convergence of consistent lipstick sales growth, market volatility, and Michael Burry’s strategic investment in Estée Lauder underscores the relevance of the Lipstick Index in 2025. As consumers continue to seek comfort in small luxuries, and investors adjust their portfolios accordingly, the beauty industry remains a focal point in understanding economic and consumer behavior trends.

Read Next: Why is the US Dollar Losing Value?

Hey there! I’m Russ Amy, here at IU I dive into all things money, tech, and occasionally, music, or other interests and how they relate to investments. Way back in 2008, I started exploring the world of investing when the financial scene was pretty rocky. It was a tough time to start, but it taught me loads about how to be smart with money and investments.

I’m into stocks, options, and the exciting world of cryptocurrencies. Plus, I can’t get enough of the latest tech gadgets and trends. I believe that staying updated with technology is key for anyone interested in making wise investment choices today.

Technology is changing our world by the minute, from blockchain revolutionizing how money moves around to artificial intelligence reshaping jobs. I think it’s crucial to keep up with these changes, or risk being left behind.

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12 Best Fidelity Index Funds in 2026

admin — Sun, 07 Jun 2026 12:57:15 +0000

Like other legacy brokers, Fidelity has a big collection of index funds to choose from. Some track broad market indexes, while others are more niche, targeting growth stocks, value stocks or emerging markets.

We’ve compiled the best Fidelity index funds based on cost, performance and popularity.

4 free Fidelity index funds

An expense ratio is a fee that covers the cost of a fund’s management. In 2018, Fidelity began offering something no other broker had before: index funds with no expense ratios.

This is made possible in part because these funds are based on indexes created by Fidelity, which is cheaper than tracking outside indexes. These funds are also considered to be a way for Fidelity to draw in new customers, who may eventually purchase other assets or services that Fidelity can profit from.

Here are the four Fidelity index funds that make up its ZERO family in order of one-year performance.


	Fidelity ZERO Extended Market Index Fund
	Fidelity ZERO International Index Fund
	Fidelity ZERO Total Market Index Fund
	Fidelity ZERO Large Cap Index Fund
Source: Morningstar. Data is current as of June 3, 2026, and is intended for informational purposes only.

The benefit of a free index fund

Index funds with no expense ratios are still rare eight years after Fidelity introduced the concept. The only other broker that offers free index funds is E*TRADE.

According to Investment Company Institute research, the average expense ratio for an index fund in 2025 was 0.05%. That may not sound like much, but even a small expense can eat into your returns over time.

Let’s say you plan to retire in 30 years and contribute $7,500 per year to your IRA until then. We’ll assume an average return rate of 6%. A 0.05% expense ratio turns into more than $6,400 over that time period. That’s $6,400 that could have been working for you in the market instead of going toward fees.

One thing to note: Fidelity’s free index funds are only available to people who have a Fidelity account — you can’t access them through other brokers.

5 best-performing Fidelity index funds

Below are the best Fidelity index funds in terms of one-year performance, plus each fund’s expense ratio. We’ve excluded Fidelity SAI and Flex index funds from this list, as they’re only available to clients of Fidelity’s paid services.


Fidelity Emerging Markets Index Fund (FPADX)
Fidelity Small Cap Value Index Fund (FISVX)
Fidelity Small Cap Index Fund (FSSNX)
Fidelity Small Cap Growth Index Fund (FECGX)
Fidelity Nasdaq Composite Index Fund (FNCMX)
Source: Morningstar. Data is current as of June 3, 2026, and is intended for informational purposes only.

You may notice that small-cap index funds show up frequently on this list

A small-cap company is generally defined as having a market capitalization between $250 million and $2 billion.

. They’re generally composed of newer companies with high potential for growth, so it’s no surprise that they’re among the Fidelity index funds with the highest one-year returns.

While investing in a fund is generally less risky than investing in a single company, there is still some risk that can come with investing in small-cap funds like these. Opening yourself up to higher potential returns can also mean opening yourself up to bigger potential losses. Spreading your investments across different market caps is one way to further diversify your portfolio and limit risk.

3 popular Fidelity index funds

A cheap or high-performing index fund doesn’t always equate to it being a fan favorite. To get a sense of the broker’s most popular index funds, we looked for ones with the highest assets under management.

Fidelity 500 Index Fund: $791.7 billion.
Fidelity Total Market Index Fund: $131.7 billion.
Fidelity International Index Fund: $81.5 billion.

Here’s how the top three funds compare in returns and expense ratios.


Fidelity 500 Index Fund (FXAIX)
Fidelity Total Market Index Fund (FSKAX)
Fidelity International Index Fund (FSPSX)
Source: Morningstar. Data is current as of June 3, 2026, and is intended for informational purposes only.

Frequently asked questions

Do Fidelity index funds have minimums?

Unlike some of its competitors, Fidelity does not require a minimum to invest in its proprietary index funds. You can get started investing with any amount of your choosing.

How do I buy a Fidelity index fund?

You can buy Fidelity index funds by opening a brokerage account with the provider. If you already have a 401(k) with Fidelity, the process of opening a brokerage account is streamlined. If you don’t have an existing account, the process of setting one up is fairly similar to setting up an online bank account — it requires some personal information and takes about 15 minutes.

You may be able to buy Fidelity index funds through a different broker, but there will likely be fees in doing so.

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