Fidelity Zero-Fee Index Funds
Fidelity made some news last week by announcing it now charges nothing for two new major stock index funds.The two funds are called Fidelity ZERO Total Market Index Fund (FZROX) and Fidelity ZERO International Index Fund (FZILX). Both funds are tracking Fidelity newly created proprietary indices — FZROX is based on Fidelity U.S. Total Investable Market Index while FZILX is based on Fidelity Global ex U.S. Index.
Marketing plot aside, perhaps more importantly, Fidelity also announced that it has substantially reduced the expense ratios of its existing index funds. Unlike the two zero-fee funds, these funds have existed for a while and they are tracking some well known indices. In a show of how low the expense ratios are, Fidelity compares them with Vanguard funds:
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