Fidelity Zero Fee Funds: Are They Really Free?

Did I read that word right? Free, you say? Whenever we hear the word “Free,” we think there must be some gimmick. There is something that they are trying to sell us to get our money, but is Fidelity giving us something free? What are these so-called Fidelity Zero Fee Funds? Why are they so popular?

Fidelity Zero Fee Funds:

There are four Fidelity Zero Fee Funds out there. They each have a specific part of the market they track. The cool thing is that there are zero fees attached to them.

This is probably the best of the Fidelity Zero Fee funds. People flock to this fund because it covers the total stock market index.

FNILX: Fidelity ZERO Large Cap Index Fund

FZROX: The Fidelity ZERO Total Market Index Fund

This is probably the biggest and most popular of the Fidelity Zero Fee funds. It has one thing that everyone wants, the S&P 500.

This fund is the small-caps fund to pair with the large caps fund. At this point, you could combine FNILX and FZIPX and create the fund FZROX. Those two funds would be equal to 2500 companies.  

FZIPX: Fidelity ZERO Extended Market Index Fund

FZILX: Fidelity ZERO International Index Fund

Why pay for an international index fund when you can get it for free. This fund will go after the most valuable companies in the world, and these are the companies that are like Toyota, TSMC, and Nestle, plus many others.

How Do these Fidelity Zero Fee Funds Make Money?

That is the question that you all may be wondering. These Zero Fee Funds are a way to get new customers in the door. These are things people need to take into considerations. Are these funds worth it? Will you save money on them?

The one thing that can hold people back is the lack of ETFs, and Vanguard can make ETFs of their most popular funds. VTI is an excellent ETF of VTSAX.

The Lack of ETF (Exchange Traded Funds)

If I were a beginner in investing, these Zero Fee Funds would be my gateway into the investing world. They would allow me to invest without costing me extra money.

Would I invest in the Zero Fee Funds?

Fidelity is hopeful to gain new people, loan out money to their customers, and create bonds. It is proving to create a buzz in the financial world. Sometimes that is all it takes. You need to think outside of the box. 

Final Thoughts on the Fidelity Zero Fee Funds

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