Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)

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ruralavalon
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Re: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)

Post by ruralavalon » Wed Mar 27, 2019 6:43 pm

bck63 wrote:
Wed Mar 27, 2019 5:32 pm
Just noted that the Fidelity ZERO funds continue to do pretty well.

Fidelity ZERO International is currently 9.81% YTD, vs 10.00% for VTIAX

Fidelity ZERO Total Market Index is 13.33% YTD, and VTSAX has the identical return.

So far, so good.
So for international stocks Fidelity ZERO has a lower return by 0.19%, despite having an expense ratio lower by 0.11%.

So for U.S. stocks Fidelity ZERO has identical return, despite having an expense ratio lower by 0.04%.

Not enough experience so far for a real test. So far not impressive. A few hundredths of a percent difference in expense ratio seems unimportant so far.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link:Getting Started

UpperNwGuy
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Re: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)

Post by UpperNwGuy » Wed Mar 27, 2019 7:00 pm

Just read the last two posts:
— The first said the glass is half full.
— The second said the glass is half empty.

Ferdinand2014
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Joined: Mon Dec 17, 2018 6:49 pm

Re: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)

Post by Ferdinand2014 » Thu Mar 28, 2019 7:28 am

ruralavalon wrote:
Wed Mar 27, 2019 6:43 pm
bck63 wrote:
Wed Mar 27, 2019 5:32 pm
Just noted that the Fidelity ZERO funds continue to do pretty well.

Fidelity ZERO International is currently 9.81% YTD, vs 10.00% for VTIAX

Fidelity ZERO Total Market Index is 13.33% YTD, and VTSAX has the identical return.

So far, so good.
So for international stocks Fidelity ZERO has a lower return by 0.19%, despite having an expense ratio lower by 0.11%.

So for U.S. stocks Fidelity ZERO has identical return, despite having an expense ratio lower by 0.04%.

Not enough experience so far for a real test. So far not impressive. A few hundredths of a percent difference in expense ratio seems unimportant so far.
They are following different indexes. Apples to Oranges. Or maybe Mcintosh to Cortland is more like it. FZROX is tilted to large cap more than VTSAX. FZROX is half way between an S&P 500 and a total stock index. It has 2500 instead of 3300 stocks.
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

Ferdinand2014
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Joined: Mon Dec 17, 2018 6:49 pm

Re: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)

Post by Ferdinand2014 » Thu Mar 28, 2019 7:31 am

UpperNwGuy wrote:
Wed Mar 27, 2019 7:00 pm
Just read the last two posts:
— The first said the glass is half full.
— The second said the glass is half empty.
+1
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

fwellimort
Posts: 117
Joined: Tue Feb 12, 2019 9:41 am

Re: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)

Post by fwellimort » Thu Mar 28, 2019 7:41 am

https://www.reddit.com/r/Bogleheads/com ... urce=share

Sigh. FZILX does not follow a similar index as VTIAX. That is FTIHX.
You compare FZILX with VFWAX. Not VTIAX. VTIAX has small caps and more mid caps (more complete).

From reddit:
Pretty good.
Fund Inception was 8/2/2018. Let's look at fund performance from 8/30 to 1/30 and ignore most of the first month. The market is down, but we can still compare on Morningstar. Here's how a $10,000 investment would be doing:
- FZROX: $9,213.79 (the new domestic fund)
- VTSAX: $9,215.41 (closest Vanguard fund)
- FSKAX: $9,206.36 (the old Fidelity total stock market index fund)

Let's also compare FZILX for another data point:
- FZILX: $9,423.70 (the new international fund)
- VFWAX: $9,399.95 (closest Vanguard fund)
- FSGGX: $9,419.02 (the old Fidelity international large-cap and mid-cap stock market index fund)

TL;DR Looks fine to me.
I don't understand why this forum is so ready to bash on Fidelity. It is a great company just like Vanguard.

Ferdinand2014
Posts: 847
Joined: Mon Dec 17, 2018 6:49 pm

Re: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)

Post by Ferdinand2014 » Thu Mar 28, 2019 7:48 am

fwellimort wrote:
Thu Mar 28, 2019 7:41 am
https://www.reddit.com/r/Bogleheads/com ... urce=share

Sigh. FZILX does not follow a similar index as VTIAX. That is FTIHX.
You compare FZILX with VFWAX. Not VTIAX. VTIAX has small caps and more mid caps (more complete).

From reddit:
Pretty good.
Fund Inception was 8/2/2018. Let's look at fund performance from 8/30 to 1/30 and ignore most of the first month. The market is down, but we can still compare on Morningstar. Here's how a $10,000 investment would be doing:
- FZROX: $9,213.79 (the new domestic fund)
- VTSAX: $9,215.41 (closest Vanguard fund)
- FSKAX: $9,206.36 (the old Fidelity total stock market index fund)

Let's also compare FZILX for another data point:
- FZILX: $9,423.70 (the new international fund)
- VFWAX: $9,399.95 (closest Vanguard fund)
- FSGGX: $9,419.02 (the old Fidelity international large-cap and mid-cap stock market index fund)

TL;DR Looks fine to me.
I don't understand why this forum is so ready to bash on Fidelity. It is a great company just like Vanguard.
I love Fidelity. Great customer service, great website, many super low cost index funds. I don’t personally use the zero funds as I instead use FXAIX (Fidelity 500 fund).I agree when looking at the zero funds you need to compare proper benchmarks.
“You only find out who is swimming naked when the tide goes out.“ — Warren Buffett

Jack FFR1846
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Location: 26 miles, 385 yards west of Copley Square

Re: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)

Post by Jack FFR1846 » Thu Mar 28, 2019 7:54 am

Update on my split position as of Aug 6:

Wednesday, March 27

FSKAX: $333,797.85
FZROX: $333,930.96
Bogle: Smart Beta is stupid

bck63
Posts: 716
Joined: Fri Sep 28, 2018 4:59 pm

Re: Fidelity Files for Four Fidelity ZERO℠ Funds (0.00% ER)

Post by bck63 » Thu Mar 28, 2019 1:42 pm

Jack FFR1846 wrote:
Thu Mar 28, 2019 7:54 am
Update on my split position as of Aug 6:

Wednesday, March 27

FSKAX: $333,797.85
FZROX: $333,930.96
Thanks for the update Jack. As recent investor in FZROX I've been watching your posts with interest.

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