FIDELITY ZERO INDEX FUNDS // How to build your portfolio with Fidelity ZERO index funds and pitfalls to look out for. Can you really invest for free with Fidelity ZERO index funds (FZROX, FNILX, FZIPX, FLIPX)? Watch this video to learn how Fidelity ZERO index funds compare to Fidelity’s regular index funds, which Fidelity ZERO index funds to buy, and how much to buy of each!
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This content is for education and entertainment purposes only. Rose 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.
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The world of investing can seem daunting for beginners, especially when they encounter brokerage fees and other charges that can eat into their profits. Luckily, Fidelity ZERO Index Funds offer a no-fee solution that allows investors to make long-term investments without incurring any additional costs.
Fidelity Investment, one of the largest asset managers in the world with over $2.7 trillion in assets under management, launched its zero-fee index funds in August 2018. The company launched not just one, but four different index funds that track well-known stock and bond indices, making it easy for investors to diversify their portfolios.
The Fidelity ZERO Total Market Index Fund (FZROX) tracks the performance of the total U.S. stock market, while the Fidelity ZERO International Index Fund (FZILX) follows the results of foreign markets. The Fidelity ZERO Large Cap Index Fund (FNILX) is focused on big publicly-traded companies in the U.S, while the Fidelity ZERO Extended Market Index Fund (FZIPX) concentrates on smaller public companies.
One of the advantages of investing in Fidelity’s zero-fee index funds is that investors don’t have to worry about managing their investment actively. Instead, they merely track the intended market indexes, which reduces costs related to investment research and advisory. Consequently, investors can enjoy significant savings that can improve their overall returns in the long run.
Another benefit of investing in these zero-fee index funds is their low expense ratio. While many mutual funds and exchange-traded funds have expense ratios that range from 0.25% to 1% or more, Fidelity’s ZERO funds charge zero fees. This means investors get to keep 100% of their earnings without paying any of it back to the fund.
It’s worth noting that Fidelity zero-fee index funds are ideal for investors who want to make long-term investments or hold their investments for an extended period. Though the funds may not experience high returns in the short term, their diversity and lower expense ratios make them a solid choice for investors looking to build a diverse portfolio.
In conclusion, Fidelity ZERO index funds offer an excellent alternative for investors who want to make long-term investments without having to worry about fees and high expenses. With its well-balanced and diversified portfolio, investors can trust that these funds can provide value for their investment in the long run.
Despite Zero Expense ratio of Fidelity Zero funds, fidelity is still making net profit over Vanguard Ultra Low expense ratio funds…
How?
Fidelity Zero funds are paying dividends once in a year instead of every quarter that Vanguard funds are doing.
If you have setup auto dividend reinvestment (most people have already) then it will impact returns over the long term as investment grows over time.
When vanguard funds pays first quarter dividend then that dividend will earn dividends in the next three quarters whereas fidelity keeps those dividends with them for more than 9 months and earn returns on them and only pays original dividends at the end of the year.
This amount difference is small or even negative for investment less than $10,000 but as funds grows the value it starts accumulating and makes huge difference over the long term.
So I’ll still continue using Vanguard Index Funds over Fidelity until they fix this which I think will never happen.
Thanks so much for your input and help.
Hello, and thank you for this educational and amazing video. If I can give you a quick recap of who I am and what I need maybe you can suggest to me where to start. I am 56 years old I don’t have 401(k) plan or any retirement account. I want to start fidelity account small and start my retirement plan and slowly build it up and in time. when I open the account which one is the best one for me to start with because I’m a conservative person. I’m not a very aggressive investor
You are sooo helpful. Thank you. My question is can you keep adding more money when you want?
Rose do you ever speak about charles schwab ?
Great!!
Thanks
yikes the Botswana part. Jesus.
Excellent video!! But what about the Management Fee (the IA Frim that manages the Fund)? Is that a separate fee?
Good job
Link for the cheatsheet is not working
Happy Asian American Heritage Month.!
Do you have a linked in?
Hello Rose Please give me equivalent of Index funds to ETF funds Vanguard or Fidelity FSKAX, FSPSX, FPADX, FUAMX, FIPDX, FSRNX. You recommended these funds . Unfortunately I am not allowed to buy Index funds but allowed to buy ETF. Thank you very much.
The Botswana joke….yikes…..
Do you have onlyfans ?
Could you suggest a bond fund to match with our stock fund?
My left ear receiving all the love. 🙂
loved this video!! thank you 🙂
I just read the chapter on Sleep & Zakaria in "Richer, Wiser, Happier." They made a substantial sum from investing in a company in Zimbabwe and some other obscure international markets where there were extremely undervalued opportunities. I know that international index funds probably aren't looking for risky investments like that. But it made me wonder if there is some sort of aggressive international fund that invests in some higher risk foreign stocks that might be undervalued.
What’s up with the Botswana comment? That didn’t land well. Love this channel but, yuck.
New Person who is interested to invest. What is Bond? What is stocks? Is there a video on it?
Thank you Rose.
Is it just me, or does anyone else also notice that the audio plays only in left side?
I’m not investing I just came to see this beautiful girl
No dividend?
I've really enjoyed your channel and have been learning so much. But the comment about Botswana and the imagery with the Lion King was extremely rude and offensive.
Fire insight. Appreciate it
Wow, great video. Needed this
How about dividends on those ?
Great video!! 🙂
Can you comment on the fact that fidelity zero mutual funds give dividends only once a year
Bonds funds are junk….and they are WAY more volatile than stock funds…..when interest rates rise…they will plummet. Why not just buy short term bonds yourself.
You are informed and smart! Thank you!
Hello , How can I open an account with Fidelity ?
@Investing With Rose Congratulations for making $2 M this year and for being featured in the WSJ. Could you make a video on currency trading someday?
Legend