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

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Mursili
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Joined: Tue May 15, 2012 8:32 pm

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

Post by Mursili » Thu Oct 11, 2018 10:39 am

SlowMovingInvestor wrote:
Thu Oct 11, 2018 10:17 am
I'm doing a little TLH, and plan to buy a Fido total market index fund.

I'm wondering whether to go with FSTVX (Fidelity® Total Market Index Fund) -- ER 0.015% or FZROX (Fidelity Zero Total Market).

FZROX has $1B in assets, which is pretty good for this short period. The ER difference is miniscule. I would guess it has fewer embedded capital gains, so more tax efficient. Slightly different indexes (it uses a Fido proprietary index, likely to avoid paying fees to Dow Jones).

I'm inclined to go with FZROX. Thoughts ?
No one knows. There is data presented in this thread indicating that the difference is negligible up to this point. Otherwise, the zero-fee fund is too new to compare. Of course, even with a comparison, past results do not predict the future.
When it comes to havoc, no one wreaks like me! - Dr. Heinz Doofenshmirtz

harikaried
Posts: 1237
Joined: Fri Mar 09, 2012 3:47 pm

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

Post by harikaried » Fri Oct 12, 2018 9:43 am

Tried switching to these ZERO funds in our self-employed 401k, and got:
The mutual fund you’re trying to buy is closed to new investments. Please use the Mutual Fund Evaluator to find an open fund or call 1-800-544-6666 for assistance.
I called them, and the person thought it should be available for SE401k accounts, but turns out within the last week, Fidelity is limiting these new funds to regular brokerage and IRA accounts.

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GoldStar
Posts: 526
Joined: Wed May 23, 2018 10:59 am

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

Post by GoldStar » Fri Oct 12, 2018 9:51 am

Mursili wrote:
Thu Oct 11, 2018 10:39 am
SlowMovingInvestor wrote:
Thu Oct 11, 2018 10:17 am
I'm doing a little TLH, and plan to buy a Fido total market index fund.

I'm wondering whether to go with FSTVX (Fidelity® Total Market Index Fund) -- ER 0.015% or FZROX (Fidelity Zero Total Market).

FZROX has $1B in assets, which is pretty good for this short period. The ER difference is miniscule. I would guess it has fewer embedded capital gains, so more tax efficient. Slightly different indexes (it uses a Fido proprietary index, likely to avoid paying fees to Dow Jones).

I'm inclined to go with FZROX. Thoughts ?
No one knows. There is data presented in this thread indicating that the difference is negligible up to this point. Otherwise, the zero-fee fund is too new to compare. Of course, even with a comparison, past results do not predict the future.
I'd go with the Zero fund at this point for new money. The one thing that you DO know is that the zero fund has a lower ER.

GeraniumLover
Posts: 117
Joined: Mon Feb 22, 2016 3:39 pm

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

Post by GeraniumLover » Fri Oct 12, 2018 7:11 pm

GoldStar wrote:
Fri Oct 12, 2018 9:51 am

I'd go with the Zero fund at this point for new money. The one thing that you DO know is that the zero fund has a lower ER.
Plus you know it doesn't have substantial unrealized gains that may have to be distributed and be subject to capital gains taxes

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