Fidelity index fund security lending in 2018
Fidelity stock index funds earn additional income by lending securities to qualified institutional borrowers.A fund’s expenses are paid out of fund earnings. Given that the US tax code gives a tax preference to dividends that qualify for lower tax rates, it is prudent for fund managers to allocate non-qualified income to fund expenses. The table below shows the amount of security lending income earned by each fund in fiscal year 2018 and calculates its percentage ratio to total annual fund expenses.
2018 Fidelity security lending income 
|Fund||Net security lending income||Total fund expenses||% of fund expenses|
Fidelity Zero Index funds
Fidelity added four zero expense index funds in fiscal year 2018. The security lending income, fund expenses, and the percentage of fund expenses covered by security lending income are tabulated below.
|Fund||Net Security Lending Income||Total Fund Expenses||% of Fund Expenses|
|Zero Total Market||7,520||458||1641.92%|
|Zero Large Cap||6||7||85.71%|