Fidelity's FZROX (Ticker: FZROX) is a total stock market index fund that has shaken up the investment industry since its launch nearly two years ago. As the first fee-free fund in the market, it has quickly amassed over $6 billion in assets and has become a popular choice for investors looking for low-cost core portfolio holdings.
If you're having trouble choosing between FSKAX vs. FZROX, it's important to know the similarities and differences between the two index funds. Both funds track the total U.S. stock market, but FSKAX charges a small expense ratio of 0.015% while FZROX has a 0% expense ratio. This means that FZROX is completely fee-free, making it an attractive option for investors who want to minimize costs.
When you invest in a total stock market index fund, you are adding exposure to the entire U.S. equity market to your portfolio. This can be a smart move for long-term investors who want to diversify their holdings and capture the broad market return. FZROX offers this exposure at no cost, making it an appealing choice for investors who want to keep expenses low.
But free expense ratios don't necessarily mean a free ride. While FZROX has no direct fees, investors may still incur other costs such as taxes and trading fees. It's important to understand the potential risks and costs associated with any investment before making a decision.
Fidelity's free funds, including FZROX, have been a huge success, but how do they compare to other index funds? For example, is FZROX better than Vanguard's total market ETF? While there are pros and cons to each fund, FZROX's 0% expense ratio gives it a competitive edge in terms of cost.
Long-term investors might prefer these low-cost Fidelity mutual funds as core portfolio holdings. In addition to FZROX, Fidelity offers other fee-free funds such as the Fidelity ZERO International Index Fund (Ticker: FZILX) and the Fidelity ZERO Large Cap Index Fund (Ticker: FNILX). These funds can be used to build a diversified portfolio that captures different segments of the market.
It's wild that a little over two years ago, FZROX didn't even exist. Now, it's a game-changing fund that has disrupted the investment industry. Fidelity's decision to offer a fee-free fund has put pressure on other fund managers to lower their fees and compete on cost.
So, should you invest in FZROX? As with any investment, it depends on your individual goals and risk tolerance. However, if you're looking for a low-cost way to gain exposure to the entire U.S. stock market, FZROX is definitely worth considering.
In conclusion, Fidelity's FZROX is a game-changing free total stock market fund that has disrupted the investment industry. As the first fee-free fund in the market, it has quickly amassed over $6 billion in assets and has become a popular choice for investors looking for low-cost core portfolio holdings. While free expense ratios don't necessarily mean a free ride, FZROX's 0% expense ratio gives it a competitive edge in terms of cost. Long-term investors might prefer these low-cost Fidelity mutual funds as core portfolio holdings. It's important to understand the potential risks and costs associated with any investment before making a decision. Get to know Fidelity's free funds before you invest in them.
