Fidelity Zero Index Funds Analysis and Review

Fidelity Zero Index Funds offer a unique investment opportunity with no management fees. This means you can invest in a diversified portfolio without paying for the fund manager's services.

The Fidelity Zero Large Cap Index Fund has an expense ratio of 0%, making it an attractive option for investors looking to minimize costs. With no fees, you can keep more of your investment returns.

Fidelity Zero Index Funds are designed to track a specific market index, providing broad diversification and reducing the risk of individual stock picking. This approach can help you achieve long-term investment goals.

The Fidelity Zero Total Market Index Fund offers exposure to the entire US stock market, covering over 3,000 individual stocks. This provides a comprehensive investment portfolio with minimal effort required.

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Fidelity Zero Index Funds offer a unique investment opportunity for those looking for low-cost index funds. The Fidelity Zero Extended Market Index Fund (FZIPX) tracks the Fidelity U.S. Extended Investable Market Index, focusing on U.S. mid- and small-cap stocks.

This fund is designed to track a subset of the Fidelity U.S. Total Investable Market Index, excluding the 500 largest companies. The Fidelity U.S. Extended Investable Market Index is limited to 2,500 companies.

One of the closest comparisons to the Fidelity U.S. Extended Investable Market Index is the Dow Jones U.S. Completion Total Stock Market Index. The primary difference is that the Fidelity index is limited to 2,500 companies, whereas the Dow Jones index has just under 3,500 companies.

The Fidelity Zero Total Market Index Fund (FZROX) tracks the Fidelity U.S. Total Investable Market Index, which is a combination of the Large Cap and Extended Market indexes. This index is limited to 3,000 companies.

The Fidelity U.S. Total Investable Market Index is not an exact match to the Dow Jones U.S. Total Stock Market Index, as the Dow Jones index tracks nearly 4,000 companies.

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In the world of Fidelity Zero Index Funds, performance metrics are a key area of focus. The funds have delivered impressive returns over the years, with a Performance Current Year of 0.72% and a Performance since Inception of 127.84%.

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One notable metric is the High 1 Year return, which stands at 21.92%. This suggests that the fund has experienced significant growth over the past year. In contrast, the Maximum Loss 1 Year is -4.03%, indicating that the fund has also faced significant downturns.

Here are some key performance metrics for Fidelity Zero Index Funds:

Overall, these metrics suggest that Fidelity Zero Index Funds have delivered strong performance over the years, with some notable ups and downs along the way.

Comparing fund performance can be a daunting task, but it's essential to understand how your investments are doing. To make a fair comparison, you need to look at the returns of the funds.

Fidelity's ZERO funds are compared to their close counterparts, which charge a fee, but it's generally 6 basis points or less. This is a crucial factor to consider when evaluating the value of free funds.

To get a better understanding, each of Fidelity's ZERO funds is compared with a close counterpart offered by Fidelity. This helps to determine if the Fidelity indexes used by the ZERO funds are generating the same or better returns.

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Performance metrics are a crucial aspect of evaluating investment funds. A fund's performance can be measured in various ways, including its returns, risk, and volatility.

The current year's performance of a fund can be a good indicator of its overall health. For instance, if a fund's current year performance is 0.72%, it suggests that the fund has not performed exceptionally well in the current year.

Risk-adjusted returns are another important metric to consider. A fund's risk-adjusted return measures its return relative to its risk. For example, the Fidelity ZERO Large Cap Index Fund (FZILX) has a 3-year risk-adjusted return of 3.60%, which indicates that the fund has generated a decent return while taking on a relatively low level of risk.

Here are some key performance metrics for Fidelity ZERO funds:

The tracking error of a fund is also an important metric to consider. It measures the difference between the fund's return and the return of its benchmark index. For example, the Fidelity ZERO Large Cap Index Fund (FZILX) has a 1-year tracking error of 0.07%, which suggests that the fund has closely tracked its benchmark index.

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A fund's correlation with its benchmark index is also an important metric to consider. It measures the degree to which the fund's return is related to the return of its benchmark index. For instance, the Fidelity ZERO Large Cap Index Fund (FZILX) has a 1-year correlation of 100.00%, which suggests that the fund's return is highly correlated with the return of its benchmark index.

The information ratio of a fund measures its return relative to its risk. For example, the Fidelity ZERO Large Cap Index Fund (FZILX) has a 1-year information ratio of 0.10%, which indicates that the fund has generated a relatively low return while taking on a relatively high level of risk.

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The Fidelity ZERO Total Market Index Fund has a relatively short history, having been launched on August 3, 2018. It's a part of the Fidelity Group of Funds.

The fund is managed by Robert Regan, and it's denominated in USD, making it a great option for US-based investors. It's also worth noting that the fund is available in other share classes, but the specifics of these classes are not provided.

Here's a breakdown of the fund's sector allocations:

Fidelity's Total Market Index fund (FSKAX) charges just 1.5 basis points, a relatively low fee compared to other funds.

The FSKAX fund gives investors exposure to over 3,700 stocks, a wide diversification that can help manage risk.

While the ZERO Total Market fund (FZROX) holds about 2,600 equity holdings, FSKAX has managed to edge out its performance by 2 basis points.

The comparable performance between FZROX and FSKAX is likely driven by the similar returns amongst the largest U.S. companies in these cap-weighted funds.

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If you're considering Fidelity's FZILX and FTIHX funds, you should know that FTIHX charges 6 basis points.

FTIHX tracks the MSCI ACWI ex USA Investable Market index.

The style box for FTIHX and the ZERO International Index are nearly identical.

FTIHX holds over 4,700 stocks, a significant difference from the ZERO fund's 2,400 stocks.

FTIHX has edged out the ZERO fund in performance so far.

The Fidelity ZERO Large Cap Index Fund tracks the Fidelity U.S. Large Cap Index, which is a float-adjusted market capitalization-weighted index.

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This index focuses on the U.S. large capitalization equity market and tracks the top 500 companies. However, it can have fewer companies based on liquidity and investing screens used by Fidelity.

Companies with capitalizations under $75 million or limited trading volume are excluded from the index. It can also include more than 500 stocks if some companies have multiple share classes.

The index is rebalanced annually on the third Friday in February, so it's essential to keep track of this date.

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The Fidelity ZERO Extended Market Index Fund (FZIPX) is a type of zero-fee fund that offers a cost-effective way to invest in the market.

It tracks the Fidelity U.S. Extended Investable Market Index, which is designed to track U.S. mid- and small-cap stocks. This means it excludes the 500 largest companies in the market.

The primary difference between this index and the Dow Jones U.S. Completion Total Stock Market Index is the number of companies it includes, with the Fidelity index limited to 2,500 companies compared to the Dow Jones index's 3,500 companies.

Investors should consider the benefits and limitations of zero-fee funds like FZIPX within a diversified investment strategy.

This fund is a great option for those looking to invest in a broader range of companies, but it's essential to weigh its pros and cons before making a decision.

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The Total Market Index is a broad-based index that tracks the performance of a wide range of companies. It's designed to provide a comprehensive snapshot of the US stock market.

Fidelity ZERO Total Market Index Fund (FZROX) tracks the Fidelity U.S. Total Investable Market Index, which is a combination of the Large Cap and Extended Market indexes. This index is limited to 3,000 companies.

The Dow Jones U.S. Total Stock Market Index is a similar index that tracks nearly 4,000 companies, making it a more extensive representation of the US stock market.

Here's a comparison of the two indexes:

The Total Market Index is designed to provide a broad representation of the US stock market, but it's essential to understand its limitations and how it fits into a diversified investment strategy.

The Fidelity ZERO International Index Fund (FZILX) is a great option for investors looking to diversify their portfolio. It tracks the Fidelity Global ex. U.S. Index, which is designed to track mid- and large-cap companies headquartered outside the U.S.

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This fund is managed by Louis Bottari, who has a wealth of experience in investment management. The fund's inception date was August 3, 2018.

The fund's index is created by selecting the top 90% of stocks as measured by market cap in each country. This is similar to the MSCI ACWI Ex USA Index, which holds about 4,700 companies, but the Fidelity index holds about 2,300 companies.

The fund's currency is USD, and it's domiciled in the US. It's a great option for investors looking to gain exposure to international markets without incurring high fees.

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Fidelity ZERO International Index Fund has a legal name of Fidelity ZERO International Index Fund and was launched on August 3, 2018. The fund is managed by Louis Bottari and is part of the Fidelity Group of Funds.

The fund's shares outstanding are not available, and it has a share class of Other. It is domiciled in the US and trades in USD.

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Here are some key details about Fidelity's zero-fee funds:

Fidelity's zero-fee funds have been a game-changer in the investment industry, making it more accessible and affordable for individuals to invest in the stock market. The funds have eliminated the barrier of entry fees and have set a new standard in the industry.

The Fidelity ZERO Total Market Index Fund was also launched on August 3, 2018, and is managed by Robert Regan. It has a similar structure to the International Index Fund but focuses on the US market.

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The Government sector holds a significant 5.07% weighting in the overall bond portfolio. This is a substantial allocation, indicating a strong focus on government-backed investments.

Cash & Equivalents is another notable sector, making up 2.82% of the portfolio. Its Return Low is a relatively high -1.87%, suggesting some volatility in this area.

Corporate bonds are a smaller part of the portfolio, with a 0.33% weighting. Interestingly, its Return High is 100.00%, showing the potential for high returns in this sector.

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Securitized and Municipal bonds both have a 0% weighting, indicating a lack of investment in these areas.

Derivatives are a unique sector, making up -0.07% of the portfolio. Its FZILX % Rank is a high 94.65%, suggesting it's a key factor in the overall portfolio performance.

Here's a quick summary of the Bond Sector Breakdown:

When investing in bonds, it's essential to consider the geographic breakdown of your portfolio. The US holds a significant 0.08% weighting in our bond portfolio.

The US segment has a return range of 0.00% to 87.90%. This indicates that the US bonds have the potential for significant returns.

Non-US investments, on the other hand, have a much lower weighting of 0.00%. However, they still offer a return range of 0.00% to 8.52%.

Here's a breakdown of the geographic weighting and return ranges for US and Non-US investments:

The Non-US segment ranks 7th in the FZILX % Rank with 7.86%. This suggests that while the returns may not be as high as those in the US, the Non-US bonds still offer a competitive position in the portfolio.

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Let's take a closer look at the Net Income Ratio of FZROX. The Net Income Ratio is 1.37%, which is significantly higher than the Category Low of -54.00%.

FZROX's Net Income Ratio is actually the 9th highest in its category, with a percentage rank of 9.58%.

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The operational fees for Fidelity's index funds are relatively low, with the management fee ranging from 0.00% to 1.65% of the fund's assets under management (AUM).

One notable aspect of Fidelity's index funds is that they don't charge an expense ratio, which is a common fee for actively managed funds.

The 12b-1 fee, which is a sales fee, is not applicable to Fidelity's index funds.

Administrative fees also vary, ranging from 0.01% to 1.00% of AUM.

Here's a breakdown of the operational fees:

Fidelity's index funds also offer competitive distribution yields, with the dividend yield ranging from 1.2% to 1.37% of the fund's AUM.

Operational fees can be a significant expense for investors. In the case of FZILX, the expense ratio is not applicable, but other fees are present.

The management fee for FZILX is 0.00% of the assets under management (AUM), which is a relatively low fee. In comparison, the high end of the category return is 19.62%.

FZILX also has an administrative fee, but only for certain scenarios, with a low end of 0.01% of AUM.

Trading fees are another consideration for investors. For FZROX, the maximum redemption fee is 0.25% of AUM, which is relatively low compared to the high end of 2.00%.

Here's a breakdown of the fees for FZILX and FZROX:

Distributions are a crucial aspect of investing, and understanding how they work can make a big difference in your overall returns.

FZROX distributes its returns annually, with a 3-year annualized total return of 8.8% and a 5-year annualized total return of 13.4%.

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The distribution frequency is consistent, with capital gains distributed annually and net income distributed at a ratio of 1.37%.

Dividend yields are another important consideration, with FZROX offering a dividend yield of 1.2%.

Here's a summary of the distribution details:

The Fidelity Zero Large Cap Index Fund (FZROX) has a relatively low concentration of assets in its top 10 holdings, with only 30.48% of its net assets invested in these positions.

This is a good thing, as it reduces the risk of a single holding tanking the entire fund. By spreading out its investments, FZROX can provide more stable returns over the long term.

According to the concentration analysis, FZROX has 2576 holdings, which is a significant number. This diversification helps to minimize risk and increase potential returns.

Here's a brief comparison of FZROX's concentration metrics:

This comparison shows that FZROX's net assets and number of holdings are significantly higher than those of the Category Low, but lower than those of the Category High.

Stock geographic breakdowns can reveal a lot about a fund's concentration and risk profile. A fund with a high weighting to non-US stocks, like FZILX with 94.77%, may be more exposed to international market fluctuations.

This can be a concern for investors who want to minimize their risk. On the other hand, a fund with a high weighting to US stocks, like FZROX with 99.76%, may be more insulated from international market volatility.

However, it's worth noting that even with a high weighting to US stocks, there's still potential for significant returns. FZROX's return high is 105.79%, indicating that the fund has the potential for substantial growth.

The geographic breakdown can also give us an idea of the fund's performance compared to its peers. FZILX's FZILX % Rank is 30.50%, indicating that it's performing relatively well in its category. In contrast, FZROX's FZROX % Rank is 14.77%, suggesting that it's slightly underperforming compared to its peers.

Here's a comparison of the geographic breakdowns for FZILX and FZROX:

Concentration Analysis is a crucial aspect of understanding the risk associated with a fund. FZROX has a net asset size of $23.9 billion.

This fund holds a significant number of stocks, with 2576 holdings in its portfolio. The net assets in the top 10 holdings account for a substantial 7.28 billion dollars, which is 30.48% of the fund's total net assets.

The concentration of the fund's holdings can be seen in its weighting of the top 10 holdings, which is 30.48%. This is a relatively high concentration, but it's essential to consider the context and the fund's overall strategy.

To put this into perspective, Category Low has a net asset size of only $2.34 million, while Category High has a net asset size of $1.84 trillion. This highlights the vast difference in scale between these categories.

Here's a comparison of the concentration of the fund's holdings with its category counterparts:

The fund's concentration can be seen as relatively high, but it's essential to consider the context and the fund's overall strategy.

FZROX, Fidelity's zero-fee index fund, offers a comprehensive view of the U.S. stock market, with a broad exposure that mitigates individual stock volatility.

The fund's sector breakdown is impressive, with Technology holding the largest weighting at 24.41%. This is followed closely by Healthcare at 13.88%.

Here's a breakdown of the sector weights in FZROX:

The dividend yield of FZROX is 1.17%, which ranks 51.91% in the category.

Fidelity's Large Cap ZERO fund, Fnilx, is similar to its S&P 500 index fund, Fxaix, in terms of style boxes and top 10 holdings.

The notable difference is in the percentage held of each of the top 10 companies, with Fnilx having a different distribution.

Fnilx has outperformed Fxaix since its launch in 2018, despite Fxaix's 1.5 basis point fee.

The ZERO Large Cap fund's performance data is limited, but it's a promising start for investors looking for a low-cost option.

The fund's ability to outperform Fxaix is a key consideration for those seeking a low-cost S&P 500 index fund.

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The Fidelity Zero Index Funds offer a range of sector-specific investments, each with its own weighting and potential returns.

The Financial Services sector has the highest weighting in FZILX, at 19.96%, with a return potential of 47.75%.

The Technology sector has a significant weighting in FZROX, at 24.41%, with a return potential of 48.94%.

The Industrials sector has a return potential of 99.49% in FZILX, which is one of the highest among all sectors.

The Healthcare sector has a return potential of 52.29% in FZROX, making it one of the top-performing sectors.

The Consumer Cyclical sector has a return potential of 36.36% in FZILX, which is relatively high compared to other sectors.

Here's a summary of the sector weightings and return potentials for FZILX and FZROX:

The Utilities sector has a relatively low weighting in both FZILX and FZROX, at 3.14% and 2.77% respectively.

The Real Estate sector has a low weighting in FZROX, at 3.91%, but a relatively high return potential of 31.91%.

The Energy sector has a low weighting in both FZILX and FZROX, at 5.55% and 4.22% respectively.

The Basic Materials sector has a low weighting in FZROX, at 2.68%, but a relatively high return potential of 25.70%.

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Fzrox, mirroring the Fidelity U.S. Total Investable Market Index, encapsulates a comprehensive array of U.S. stocks, providing an all-encompassing view of the U.S. stock market's performance.

The fund's broad exposure mitigates individual stock volatility, offering a balanced investment portfolio that provides investors with a simple yet effective investment solution.

Fzrox has a total of 2,576 holdings, which is a significant number compared to its category peers, with some funds having as few as 2 holdings.

Here's a comparison of Fzrox's holdings with its category peers:

The primary allure of Fzrox lies in its cost-effectiveness, with a zero-fee structure that eliminates management fees and allows investors to enjoy the full potential of market returns without deductions.

Fzrox's passive management approach minimizes turnover and trading costs, enhancing net returns.

The fund's net assets in the top 10 holdings account for 11.62% of the total, with a weighting of 30.48% in the top 10 holdings.

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