Fidelity Zero Fee Funds: Are They Really Free?

[{"selector":"#anim-791e7500-3be6-4a1c-b377-b948c0106058","keyframes":{"opacity":[0,1]},"delay":300,"duration":2500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d5a64bff-2453-4eec-a672-df785b4888ed","keyframes":{"transform":["translate3d(-119.59459%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":300,"duration":2500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

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?

[{"selector":"#anim-aa4d64bf-882d-4aad-a6f5-171873ff0542","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-c75327b2-2ade-4e54-9f5e-64a62b1b9a11","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}]

Fidelity Zero Fee Funds:

[{"selector":"#anim-7f565df6-bd22-4ca3-8d79-fdc8f8e5c510","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3a4a5a5d-a808-434a-89cd-348efd2ba0b8","keyframes":{"transform":["translate3d(94.24658%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1feb2c51-6ca7-4120-b1b4-43be4a7cd343","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-c5b09426-50f2-41e0-9bda-a22474c1ec51","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-6eece3fc-5fb0-40c6-80d4-6c635011242c","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b9e00aaa-09a1-4bc3-a590-fdc0f40e888b","keyframes":{"transform":["translate3d(126.84932%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

FZIPX: Fidelity ZERO Extended Market Index Fund

[{"selector":"#anim-4a7c4958-75da-4993-bf96-c76c33c1a527","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-f08c95d1-6325-427b-beee-e09577e5e9e3","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-26ffc7bb-9b95-4757-89f1-b9b317fdd4fa","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-456ef5c7-6f56-46c5-88c9-1c53e7b13a1f","keyframes":{"transform":["translate3d(-100%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] 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.

FZILX: Fidelity ZERO International Index Fund

[{"selector":"#anim-ae7d1ad7-942c-4e20-91b7-74c8a0ce240f","keyframes":{"transform":["translate3d(-116.61238%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c3b7f1cf-1372-4a98-bc62-7a3ee70d2e7a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9e67c037-78e7-4341-aa4b-29db2d845c09","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-a2da8f5e-4d21-4b5e-91a7-987b99f6388b","keyframes":{"transform":["translate3d(-115.16129%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-13b0c3d9-a8ee-4f28-b3cb-5740cf953faf","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d1a8a083-12dd-4241-a9c6-847aed3908f1","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

How Do these Fidelity Zero Fee Funds Make Money?

[{"selector":"#anim-440ebe97-c81f-4c41-9e16-d52cbd258ca0","keyframes":{"transform":["translate3d(-98.09524%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fb619a5c-fbc0-42bd-9feb-0e8c3f3b76bb","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-43cb2cda-44f4-451b-bb49-d80c408d7b06","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}]

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.

[{"selector":"#anim-db71a891-86a7-4f7a-9607-deb8cd50cdb7","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-29b00f34-deb1-4f75-bc65-1d8104633e5c","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-38a23c45-dda1-487c-9473-928c858a8d9f","keyframes":{"transform":["translate3d(-105.47945%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

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.

[{"selector":"#anim-1c3258be-9bc0-4412-b6b0-4179ddf48e59","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c3f51754-7008-42c3-819d-f2862c1c5d10","keyframes":{"transform":["translate3d(0px, 94.33848%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-b874ab3f-6fb3-45b3-9df8-cc1cfaf70c6d","keyframes":{"opacity":[0,1]},"delay":200,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-aecc9013-92ce-44d2-a529-a32241a5653e","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-da798443-9019-4015-8e36-44494e4af0f8","keyframes":{"opacity":[0,1]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ec1266fb-5351-477c-80d5-05cda5014b1d","keyframes":{"transform":["translate3d(99.15254%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

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.

[{"selector":"#anim-f57e586b-c102-49f9-b12f-ec843a858502","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-dd084141-c6e4-470a-8552-3e3d0c0f5938","keyframes":{"transform":["translate3d(-100%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-46ad3c94-4b3c-49ea-a1d2-c4525e3de90d","keyframes":{"opacity":[0,1]},"delay":200,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-14b95c09-011b-4614-860f-c6da56a19f6a","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0407904e-a7e3-4eed-8b50-88a73de1a379","keyframes":{"opacity":[0,1]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-21e5c3bc-6e8d-4515-8578-8323a7385c85","keyframes":{"transform":["translate3d(81.35592%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

Swipe Up To Read More About Fidelity Zero Fee Funds!

[{"selector":"#anim-67278ab6-26fe-45ee-8a6c-9bf3a8d0f561","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9c3eca62-07f1-4050-9914-2a3e95b99dba","keyframes":{"transform":["translate3d(0px, -118.66847%, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}]

More About money

[{"selector":"#anim-42adbb0c-cc6e-4ed5-be62-2046afbe1a05","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e53c5582-ba51-4b9b-81fd-4ef40616a80e","keyframes":{"transform":["translate3d(-132.41381%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-36a5284b-a953-4037-ba77-d5873f74f073","keyframes":{"opacity":[0,1]},"delay":400,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f110752c-3e22-4ada-8e44-2566d3ff2891","keyframes":{"transform":["translate3d(-199.50248%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":400,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-57896ee9-c051-48a0-9332-fc6f54db1145","keyframes":{"opacity":[0,1]},"delay":600,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-234001c0-fd5d-49ea-896e-130315361ca1","keyframes":{"transform":["translate3d(-133.10347%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":600,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0dbbfe4e-3d5b-45b9-8a84-421cec788030","keyframes":{"opacity":[0,1]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2f96d1fc-03b0-4190-b391-ed373880d408","keyframes":{"transform":["translate3d(-199.50248%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1000,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7aa63a18-089c-4697-8192-cd32b0d761b5","keyframes":{"opacity":[0,1]},"delay":1200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3f12ebbc-a1c8-4b33-9f7d-1000a586df0a","keyframes":{"transform":["translate3d(-132.41381%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a77b7ebc-4e33-4bd2-bea2-637dffec2ff6","keyframes":{"opacity":[0,1]},"delay":1700,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d6902627-50be-4383-ab19-0d7d40e65ebd","keyframes":{"transform":["translate3d(-199.50248%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1700,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-08b7082e-8b24-485e-87ee-0a128996bcfb","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1b069a20-1a25-4417-9fc1-9966f672a878","keyframes":{"opacity":[0,1]},"delay":900,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-4ff9b187-ca20-427d-ba3b-1fecac89848e","keyframes":{"opacity":[0,1]},"delay":1500,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1da8f07a-8223-41ea-baea-4a652b89b24b","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d95ac0b4-a206-43e4-adbf-a42a16135a6b","keyframes":{"transform":["translate3d(-132.41381%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-93542af4-c29b-4fee-934f-67e92729a38f","keyframes":{"opacity":[0,1]},"delay":800,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2a1ab2b9-08f2-402a-8191-45188d809cf8","keyframes":{"transform":["translate3d(-132.41381%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":800,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-3e153afa-9f8e-4ac0-abab-2e4c9e31939a","keyframes":{"opacity":[0,1]},"delay":1400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fffd82d2-0fc3-470c-9032-e76409f9028d","keyframes":{"transform":["translate3d(-132.41381%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":1400,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Stop Losing money to those pesky fees A 3 Fund Portfolio: The Simple Way To Invest VTSAX vs FZROX, who is the best?

Fidelity Zero Fee Funds: Are They Really Free?

Read More

Read More