Fidelity ZERO Total Market Index Fund is comprised of a pair of zero-fee index mutual funds covering the U.S. and international stock markets.
The Fidelity ZERO Market Index Fund has attracted $1 billion with its two portfolios in only its first month.
One portfolio is the Fidelity ZERO Total Market Index Fund (FZROX), which brought in $753 million. The other is Fidelity ZERO International Index Fund (FZILX), and its numbers are now at $234 million.
Fidelity has definitely made a dent in the market. The day Fidelity announced the no-fee fund early in August; it saw fund companies being hit. The Federated Investors, Legg Mason, and Franklin Resources all were down 5 percent the days Fidelity announced its Fidelity ZERO Total Market Index Fund no-fee fund.
Although it has done very well out of the gate, Fidelity has a ways to go to catch up Vanguard’s stock market ETF which just hit $100 billion.
Vanguard’s Total Stock Market (VTI) is one of only 3 ETFs to reach $100 billion asset mark. Joining iShares Core S&P 500 ETF (IVV) and State Street Global Advisors S&P 500 SPDR (SPY).
Right now Fidelity’s total stock market index fund is at $900 million in assets.
Fidelity ZERO Total Market Index Fund is the only one with no management fee.
Vanguard, Schwab and Back Rock’s iShares all have low fees in the ETF and index fund.
Experts will argue that the word “zero” fees is not a positive thing when it comes to investments. But right now with the intense fee wars in the fund world, the word “zero” has become a selling point.
If you talk to the experts they will all caution you to choose funds wisely and not choose funds based on fees alone.
Investing is an age-old art, and particularly attractive in this case with no fees, encouraging investors to buy in more frequently.
Savvy investors know it’s all about the performance of their whole portfolio and not just a few no-fee investments.
Fidelity ZERO Total Market Index Fund