Fidelity Commission Free ETFs and Investment Strategies

Fidelity offers a range of commission-free ETFs, including the Fidelity Zero Large Cap Index Fund (FNILX), which tracks the CRSP US Large Cap Index.

With no management fees or commissions, investors can save money and potentially earn higher returns over time.

Fidelity has a total of 75 commission-free ETFs, covering various asset classes and investment strategies.

By investing in these commission-free ETFs, you can diversify your portfolio and reduce your overall costs.

Fidelity Freedom Funds offer a convenient and low-cost way to invest for retirement. You can choose from a variety of funds with different target dates.

The Fidelity Freedom Index Funds are a great option, as they package other Fidelity index funds together. They're low-cost, broadly diversified, and automatically rebalanced.

You can start with just $1 and invest in a globally diversified portfolio. There's no minimum investment requirement for these funds.

Here are the Fidelity Freedom Index Funds available, each with a 0.12% net expense ratio:

Index funds are a popular choice for investors, and Fidelity offers a range of commission-free index funds. Fidelity's index funds have no minimum investment requirement, making them accessible to investors of all sizes.

One of the standout features of Fidelity's index funds is their low expense ratios. For example, the Fidelity Total Market Index Fund (FSKAX) has an expense ratio of only 0.015%, while the Fidelity ZERO Total Market Index Fund (FZROX) has a 0% expense ratio.

Fidelity also offers a range of international index funds, including the Fidelity Total International Index Fund (FTIHX) and the Fidelity ZERO International Index Fund (FZILX). These funds cover a broad range of international markets, including developed and emerging markets, and international small-caps.

If you prefer an ETF, you can consider options like the Vanguard Total International Stock ETF (VXUS) or the iShares Core MSCI Total International Stock ETF (IXUS), both of which cover the same broad international stock markets.

Here are some examples of Fidelity's index funds and their expense ratios:

Overall, Fidelity's index funds offer a convenient and cost-effective way to invest in the stock market, with a range of options to suit different investment goals and risk tolerance.

Fidelity Commission Free ETFs offers two types of investment model portfolios for participants: strategic asset allocation and tactical asset allocation.

A strategic asset allocation portfolio invests in a diversified portfolio of multiple assets, holding them without frequently changing the asset allocation weights.

This approach is great for long-term investors who want to ride out market fluctuations without making frequent adjustments.

A tactical asset allocation portfolio, on the other hand, dynamically adjusts stock and bond allocations to minimize losses during market stress.

This type of portfolio is ideal for investors who want to be more proactive in managing their investments during times of market volatility.

Both portfolios are proactively monitored and rebalanced on a monthly basis when needed, ensuring they remain in line with their target allocation.

Here are the key characteristics of each portfolio strategy:

The iShares Core MSCI Total International Stock ETF is a great pick for broad exposure to stocks listed in developed and emerging markets alike, tracking the MSCI ACWI ex-USA IMI index with an annual expense ratio of 0.11%.

Fidelity's index fund Fidelity Total International Index Fund has an expense ratio of 0.06%, making it a well-rounded fund that includes both developed and emerging markets and international small-caps.

The iShares Core MSCI Total International Stock ETF is a great pick for investors who want broad exposure to stocks listed in developed and emerging markets alike. It tracks the MSCI ACWI ex-USA IMI index, which includes nearly 6,200 stocks in markets all around the world.

This fund rolls up investments in developed markets and emerging markets into one fund, pairing up stocks in faster-growing emerging economies with stocks in slower-growing developed ones. At the time of writing, stocks in Japan made up 17% of the fund's assets.

An annual expense ratio of 0.11% makes this a very inexpensive way to invest in international stocks. The premium price for this fund amounts to a mere rounding error, just a few pennies per $100 invested.

Stocks in the United Kingdom and China made up 10% and 8% of the fund's assets, respectively. One could keep things simple and use this fund for all of his or her international stock exposure.

It's worth noting that international stock funds are pricier than domestic stock funds, but this fund's expense ratio is relatively low compared to others in the same category.

The iShares Core U.S. Aggregate Bond ETF tracks the Bloomberg Barclays US Aggregate Bond Index, holding nearly 6,500 bonds that represent the overwhelming majority of the bond market's total value.

This ETF invests roughly 72% of its assets in AAA-rated bonds, making it less correlated to stocks than other bond funds.

A one-percentage-point increase or decrease in interest rates would result in a six-percentage-point decrease or increase in the fund's value, given its average effective duration of less than six years.

Fidelity offers the Fidelity U.S. Bond Index Fund, which tracks the broad U.S. bond market, with an expense ratio of 0.025%.

The Vanguard Total Bond Market ETF (BND) is another option, with an expense ratio of 0.035%.

The iShares Core S&P Small-Cap ETF is a great option for investors looking to gain exposure to smaller companies. This ETF tracks the S&P SmallCap 600 index, which holds roughly 600 stocks that together comprise about 3% of the stock market's total value.

The index's components have a market capitalization of $450 million to $2.1 billion, which is relatively small compared to larger publicly traded companies. The S&P 500, S&P MidCap 400, and S&P SmallCap 600 indexes do not overlap, as each fund contains distinct stocks that are not included in another index.

The iShares Core S&P Small-Cap ETF is one of three commission-free iShares ETFs that can be used to create a very diverse portfolio of U.S. stocks at a very low cost. Along with the S&P 500 and S&P MidCap 400, the S&P SmallCap 600 index includes roughly 1,500 companies that make up 92% to 93% of all stock market value in the United States.

Here are the annualized 15-year returns for the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indexes: