New Investor Roth IRA Fund Selection

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Topic Author
dylphil21-1997
Posts: 43
Joined: Tue Sep 03, 2019 10:01 am

New Investor Roth IRA Fund Selection

Post by dylphil21-1997 »

Just started funding IRA, just wanted a quick critique of my fund selection. I do understand that I would need to liquidate my ZERO funds if I wanted to use another brokerage; but I don't foresee the need to switch brokerages.

60% FZROX (Fidelity ZERO Total Market Index Fund)
20% FNILX (Fidelity ZERO Large Cap Index)
20% FTIHX (Fidelity Total International Index Fund)

Thanks in advance.
NostraHistoria
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Joined: Sat May 01, 2021 2:53 pm

Re: New Investor Roth IRA Fund Selection

Post by NostraHistoria »

You FZILX for the last one.

I have all of those in my Roth IRA. You are golden.
Topic Author
dylphil21-1997
Posts: 43
Joined: Tue Sep 03, 2019 10:01 am

Re: New Investor Roth IRA Fund Selection

Post by dylphil21-1997 »

NostraHistoria wrote: Mon May 03, 2021 1:01 pm You FZILX for the last one.

I have all of those in my Roth IRA. You are golden.
I did FTIHX instead of FZILX because of small cap exposure. But correct me if I'm wrong!!
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retired@50
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Re: New Investor Roth IRA Fund Selection

Post by retired@50 »

dylphil21-1997 wrote: Mon May 03, 2021 12:34 pm Just started funding IRA, just wanted a quick critique of my fund selection. I do understand that I would need to liquidate my ZERO funds if I wanted to use another brokerage; but I don't foresee the need to switch brokerages.

60% FZROX (Fidelity ZERO Total Market Index Fund)
20% FNILX (Fidelity ZERO Large Cap Index)

20% FTIHX (Fidelity Total International Index Fund)

Thanks in advance.
Why the duplication of Total Market and Large Cap?

They are too similar to make much of a difference, why not just use Total Market?

Have you looked at the holdings within each fund?

Regards,
This is one person's opinion. Nothing more.
Topic Author
dylphil21-1997
Posts: 43
Joined: Tue Sep 03, 2019 10:01 am

Re: New Investor Roth IRA Fund Selection

Post by dylphil21-1997 »

retired@50 wrote: Mon May 03, 2021 1:08 pm
dylphil21-1997 wrote: Mon May 03, 2021 12:34 pm Just started funding IRA, just wanted a quick critique of my fund selection. I do understand that I would need to liquidate my ZERO funds if I wanted to use another brokerage; but I don't foresee the need to switch brokerages.

60% FZROX (Fidelity ZERO Total Market Index Fund)
20% FNILX (Fidelity ZERO Large Cap Index)

20% FTIHX (Fidelity Total International Index Fund)

Thanks in advance.
Why the duplication of Total Market and Large Cap?

They are too similar to make much of a difference, why not just use Total Market?

Have you looked at the holdings within each fund?

Regards,
i have now! I do see their holdings are strikingly similar. I guess I didn't do enough research.

So if I'm understanding correctly; all the funds that are in FNILX are in FZROX (and then some, of course)?
NostraHistoria
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Re: New Investor Roth IRA Fund Selection

Post by NostraHistoria »

Sorry. I thought you meant the Fidelity Zero International Fund. You are right.

I own all of the Zero funds. We will see how it ends up in the end.
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retired@50
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Re: New Investor Roth IRA Fund Selection

Post by retired@50 »

dylphil21-1997 wrote: Mon May 03, 2021 1:23 pm
i have now! I do see their holdings are strikingly similar. I guess I didn't do enough research.

So if I'm understanding correctly; all the funds that are in FNILX are in FZROX (and then some, of course)?
Precisely. The word "total" is meant to be instructive in this case.

While there are some differences in "total" market funds from Vanguard or iShares or Schwab, if you're with Fidelity you can either use FSKAX (3,658 stocks) or FZROX (2,635 stocks).

Since the ZERO funds are a unique creation of Fidelity, they use a "Fidelity in-house" index that was created by Fidelity. The FSKAX fund tracks the Dow Jones U.S. Total Stock Market Index, and that's why the fund holds more stocks, because that's how many stocks are in the Dow Jones created total market index.

TL/DR - look under the hood of any fund you intend to purchase, just to see what you're getting.

Regards,
This is one person's opinion. Nothing more.
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