Fidelity Investments (ZERO index fund review)

by | Sep 19, 2022 | Fidelity IRA | 14 comments




So are you considering investing in Fidelity Investments ZERO index funds, but need some more information as to whether it would be one of the solid investments in your portfolio? I’ve got you covered. #fidelity #indexfunds #investing

In this video, I will be covering just what all of the talk is about regarding Fidelity Investments ZERO fee index funds.

Fidelity Investments have long been known as one of the premiere brokers, offering low expense ratio inex funds, as well as actively managed funds.

We also know that ndex funds have always been cheap, with fees ranging from about 0.25 percent to as little as 0.04 percent. But their costs hit bottom with the launch of Fidelity Investments four funds that charge absolutely nothing.

“There are no hidden fees,” says Robert Beauregard, a spokesman for Fidelity, which introduced these products. “Investors will not pay any expenses.”

The funds—which the company says have already attracted $2.25 billion—include Fidelity Zero Large Cap Index Fund,
Fidelity Zero Extended Market Index Fund
Fidelity Zero Total Market Index Fund
Fidelity Zero International Index Fund

All four appear to mirror S&P indexes that their names don’t reference, ostensibly so Fidelity can avoid paying a license fee.

So should you opt for Fidelity Investments zero-fee funds?
Maybe, but “make sure you get the full picture and understand where the profit motives of the issuers may lie, either in that product or other products they may market to you once you’re in this zero-cost fund,” says Chris Kerchoff, CEO of financial advice firm Plancorp.

See also  Higher Education Retirement Plans: Exploring TIAA's Traditional Annuity Options

There are always costs associated with running a fund, even one that passively tracks an index as offered here through Fidelity Investments. So if the shares are offered with no charge for management, the investment company is subsidizing those costs as a marketing expense to attract customers to its other products, which do charge fees.

This begs the question however, are these funds offered by Fidelity Investments actually good investments, or are they a ploy.

Let’s find out on this video!!

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DISCLAIMERS & DISCLOSURES

This content is for education and entertainment purposes only. Tray does not provide tax or investment advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. All investing involves risk, including the possible loss of principal.
Credit to BJT Online…(read more)


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14 Comments

  1. Alex S

    Already have in VTI with Fidelity. I wish Fidelity has zero ETF. Thanks, Tray.

  2. William Droes

    I recently started a roth IRA for fidelity. I’m struggling to decide between these zero funds and some of their other funds that still have very small expense ratios, such as FSKAX or FXAIX. Any recommendations? So basically are there any advantages with those other funds instead of using the zero funds you talked about?

  3. 1972saigon

    Hello Tray, my eight year old daughter has 9K sitting in a bank account. I"m going to take the money and put it into one of the following funds VFIAX, VTI or VOO. I think it is pointless to have this money sitting around in a savings account. Do you think this is a good idea?

  4. Carla Lott

    subscribedddd nowww

  5. Franklin Hubbard

    have u invested so much buddy?

  6. Cerys Smart

    invest at ur own risk

  7. Jack Butler

    this could be a false claim

  8. ITV Donetsk

    Не нравится

  9. DatswhatiDrew

    Haha I didn't smash the like button so that I could still have my phone. I did however nicely tap it lol. Anywho, you have a point with the Fidelity Zero index funds.The expense ratio is less with Fidelity. I suppose it depends on the length of time one holds these for if it was vanguard on the s&p 500 over 30 years that's around $40,000 extra in money you could of had with the same fidelity fund.

  10. Ollie Young

    wow the returns are pretty good

  11. Jay Cee

    I just happen to invest in both FZROX and FZILX comprising of 75 percent and 25 percent respectively in one of my taxable accounts. Informative video and thanks for sharing.

  12. DayVids Days

    Great video! I dig the love for Fidelity funds 🙂 .

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