Everything You Need to Know About Fidelity Zero ETFs

Fidelity Zero ETFs are a type of index fund that offers zero expense ratios, meaning you won't pay any fees to invest in them.

These ETFs track a specific market index, such as the S&P 500 or the Russell 2000, providing broad diversification and potentially lower costs.

The first Fidelity Zero ETF, FZROX, was launched in 2019 and tracks the Fidelity US Total Market Index.

Investors can use Fidelity Zero ETFs as a core holding in a diversified portfolio, potentially reducing costs and increasing returns over the long term.

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Fidelity ZERO funds are a game-changer for investors, offering zero fees and broad access to the global stock market.

These funds are designed to track the MSCI ACWI Ex USA Index, which includes the vast majority of the most valuable companies listed on international exchanges. The Fidelity ZERO International Index Fund has over 2,300 holdings.

The key difference between Fidelity's free ZERO fund and its almost-free Total fund is the number of holdings - the ZERO fund has fewer stocks, but still provides similar returns. In the fourth quarter of 2018, the ZERO fund modestly outperformed its comparable non-free Fidelity fund.

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By investing in these zero-fee funds, you can hold on to more of your returns, which is especially important when fees can eat into your investment gains over time. The Fidelity ZERO Total Market Index Fund, for example, allows you to own a piece of just about every investable stock in the U.S. and abroad.

Investors can combine the Fidelity ZERO International Index Fund with the Fidelity ZERO Total Market Index Fund to get a broad, diversified portfolio with zero fees and no minimums.

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Fidelity ZERO funds launched in 2018 with zero fees, making them an attractive option for investors looking to minimize costs.

The expense ratio for these funds is 0.00%, allowing investors to hold on to more of their returns.

Fidelity ZERO funds have attracted billions of dollars of assets in just a few years, demonstrating their popularity among investors.

These funds offer broad, diversified access to the global stock market with zero fees and no minimums.

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The Fidelity ZERO Large Cap Index Fund is designed to replicate the most popular stock index funds on the market, specifically the S&P 500 index funds.

This fund tracks the Fidelity U.S. Large Cap Index, which comprises a little more than 80% of the U.S. stock market's value.

At $227 million in assets, the Fidelity ZERO Large Cap Index Fund has a short operating history, but it's managed to perform roughly in line with the S&P 500 over the three-month period since its launch.

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Fidelity ZERO funds are a line of mutual funds that launched in 2018 with zero fees, meaning investors get to hold on to more of their returns.

The Fidelity ZERO Total Market Index Fund (FZROX) essentially invests in every single company listed on U.S. markets, excluding companies with a market cap of less than $75 million and six-month trading volume of less than $25 million.

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This fund has about 2,500 holdings and is as diverse as it gets, with large-cap stocks making up the majority of its portfolio.

Fidelity ZERO Large Cap Index Fund (FNILX) is designed to replicate the most popular stock index funds on the market, specifically the S&P 500 index funds.

It tracks the Fidelity U.S. Large Cap Index, which is comparable to the S&P 500, and has around 500 holdings.

Fidelity ZERO Extended Market Index Fund (FZIPX) seeks to track the Fidelity U.S. Extended Investable Market Index, which is composed of about 2,500 U.S. mid and small cap stocks.

Fidelity ZERO Total Market Index Fund (FZROX) is essentially a combination of FNILX and FZIPX, with close to 3,000 holdings across U.S. large, mid, and small caps.

The Fidelity ZERO International Index Fund (FZILX) captures international stocks outside the United States by tracking the Fidelity Global ex. U.S. Index, and is composed of about 2,500 mid and large cap stocks outside the U.S.

Fidelity ZERO funds have attracted billions of dollars of assets in just a few years, making them a popular choice for investors looking for low-cost access to the stock market.

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Fidelity offers a range of funds that are similar to their Zero ETFs, including those from their own fund family.

If you're looking for an alternative to FZROX, consider Fidelity's FNILX, which is extremely similar and tracks the ZERO Large Cap Index Fund.

Fidelity's Stock Selector All Cap Fund, symbol FDSSX, is also extremely similar to FZROX, making it a viable option for those seeking a similar investment strategy.

The Large-Cap Core Enhanced Index Fund, symbol FLCEX, is a very similar fund that tracks a large-cap index, similar to FZROX.

For those interested in sustainability, the U.S. Sustainability Index Fund, symbol FITLX, is a very similar fund that tracks a sustainable index, offering a similar investment approach to FZROX.

Here are some of the similar Fidelity funds:

Fidelity ZERO International Index Fund (FZILX) captures international stocks outside the United States by tracking the Fidelity Global ex. U.S. Index, and is composed of about 2,500 mid and large cap stocks outside the U.S.

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This fund is a game-changer because it's completely free, with no expense ratio or management fees. It's designed to invest in the vast majority of the most valuable companies listed on international exchanges.

The Fidelity ZERO International Index Fund has over 2,300 holdings, which is substantially fewer than the Fidelity Total International Index, which has nearly 4,700 holdings.

Despite having fewer holdings, the ZERO fund has shown similar performance to its non-free counterpart, with the ZERO fund modestly outperforming its comparable non-free Fidelity fund in the fourth quarter of 2018.

If you combine the Fidelity ZERO International Index Fund with the Fidelity ZERO Total Market Index Fund, you'll own a piece of just about every investable stock in the U.S. and abroad.

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If you're looking for funds similar to Fidelity's FNILX, you'll want to consider the Vanguard Large-Cap ETF (VV). This ETF is practically identical to FNILX, with a similar investment approach and portfolio composition.

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Vanguard also offers two other funds that are extremely similar to FNILX: the Large-Cap Index Fund Institutional Shares (VLISX) and the Large-Cap Index Fund Admiral Shares (VLCAX). These funds have the same investment objectives and strategies as FNILX, making them great alternatives.

Here are some of the funds that are similar to FNILX:

These funds offer a similar investment approach and portfolio composition to FNILX, making them great alternatives for investors looking for a similar investment experience.

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If you're considering investing in Fidelity's ZERO ETFs, you may be wondering how they stack up against other similar funds. Fidelity's ZERO Large Cap Index Fund (FNILX) is designed to replicate the S&P 500 index, but it has a short operating history and lags behind the index by about 0.08% over the past three months.

This fund is essentially a copycat of the S&P 500, and its performance will likely improve as it grows in size. At $227 million in assets, it doesn't have the scale to match the index as well as larger funds.

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If you're looking for alternatives to FZROX, you might consider the following funds, which are extremely similar to Fidelity's ZERO Large Cap Index Fund:

These funds are all very similar to FZROX, but each has its own unique characteristics. For example, the Stock Selector All Cap Fund has a slightly different investment strategy and a slightly higher expense ratio.

While Fidelity Zero ETFs have many benefits, there are some downsides to consider. One major drawback is the lack of a dividend yield, which means investors won't earn any income from the dividends.

The trading fees are also a consideration, although they are relatively low at 0.015% of the trade amount. However, this can still add up over time.

Another potential issue is the limited selection of Fidelity Zero ETFs, with only 12 options currently available. This may not be enough to cover all of your investment needs.

Fidelity Zero ETFs are not available for purchase through all brokerages, which may limit their accessibility.