Big Problem With Fidelity Index Funds - Zero Fee Funds Explained

I would go with Fidelity anyway. Vanguard has way too many fees and they charge you about 30 per year for each mutual fund you own in each account.

I don’t see a problem with the zero funds index by fidelity

You lost me on the GMO unhealthy chicken 😊

Well its a no brainer that you get more for your dollars.

This is all new to me and this has been super helpful. Thank you.

Certainly no big problems and doubtful you made a case of even a minor problem especially when taking into account the investor drawn to the subject funds.

Ftihx is emerging and fidelity... But more fees (6%)

My husband has SHA and stocks portfolio through Fidelity and get charge $15 per month. Why is it?

1 year later from the time this video was made, FNILX is outperforming FXAIX. Loving my FNILX right now.

Fidelity® ZERO Large Cap Index Fund
MUTF: FNILX

Thank you so much for clarifying the cons, which we should know about (along with the possible pros).

Excellent review. Owning them in an IRA solves some of these problems. Also, how about comparing performance? The Zero fee funds seem to be doing fine from what have observed. Maybe even slightly outperforming the fee funds?

Thanks for the video! You compared turnover and # of holdings, but how about their performance?

You know I just found your vid’s and I like them. BUT, I’m a Fidelity guy and you know why I like FZROX it’s ZERO exp. Shit on them all you want, but I’m buying and buying.

Thanks Jarrad helpful video! I’m realizing now I’ve been investing in FZROX when I meant to be Investing in FSKAX. I am new to this whole investing thing. Do you know if Fidelity will charge fees or penalties if I want to transfer my funds from FZROX TO FSKAX?

Very informative! Lots of stuff I didn't know about! I'm not new to adding money to mutual funds, but I am new to the stuff outside the federal government (TSP). Subscribed!

What's your thought about the Fidelity Target Date Funds like Fidelity Freedom 2045 Fund?

Great job comparing funds. Really useful information to have. Learned a few things today.

My IRS is with Fidelity. Now I am scared. Should I be???

Helpful thank you

What would be a good investment app

Ftr nothing inherently wrong with GMOs

You're comparing funds with drastically different time tables. These zero funds have only been around the last few years. If you look at the volatility index during the covid period, it's obvious as to why a new fund to this period would see a higher turnover ratio as big swings occurred in equities. Additionally why you see low ratings such as the 3 they received from morning star which penalizes for volatility. Also in fairness even small expense ratios have exponential changes on portfolios over long careers. I like your videos but you're leaning click bait on this one.

What we need to know is how have the zero based funds done in comparison to the fee based funds since their inception.

Why do you have to attack my rotisserie chicken habit like that? Haha

Great video. I have been investing in the fidelity 2040 fund for 7 years. It appears to be a zero fee fund. It has a 23 turnover and has a rate fee of .75. If I understand your videos correctly, that is a very expensive fund with a very high turnover rate, I think I should be invested in fxaix which I understand has a higher volatility rate, but I've got two decades left to retirement. My difficulty as I don't quite understand when to remove the money from the 2040 program and place it in the FXAIX what are your thoughts?

I have been investing into these in my Roth IRA. Should I stop investing into them and just invest into their equivalent fee based funds?

Simple example why would you might need to change a platform: when I switched my job one of company’s mandatory terms was that all my investments must be under Fidelity umbrella

lol ... love the dig on cathy wood. ive never seen someone rise so quickly to fame for doing nothing

Sounds like a bittersweet situation. Wow, not sure to continue investing or not in zero-fee Index funds..

I knew this guy was knowledgeable when he mentioned unhealthy, corn-fed, gmo rotisserie chicken.
This is good to know though. Thanks for the info.

What I totally dislike about this fund is you cannot purchase limit orders! Also have to wait for purchase to be completed which means you don’t know what price you’re paying if the price moves when you do transaction. Makes me not want to purchase any other Fidelity products! If I’m stuck I will just wait it out. Platform is a fail compared to TD Ameritrade!

I got Charles schwab for my checking account also invest and i have no problem for now

I still not sure what happen to fidelity a years ago i watch video on you tube many people complain about fidelity

Lol. That Cathy wood quip. 😂🎉

What's with the cult-like hate directed at Cathy Wood? I don't understand why her managed funds get so much more hate than any managed fund family. It really bugs me.

The fee-based equivalent to the zero-fee international fund is the Fidelity Total International Index Fund (FTIHX).

Great video Jarrad. My understanding is also that the zero fee funds gives you the dividend once a year vs quarterly. Quarterly might be better specially when shares are at a discount like now. My apologies if you mentioned this and I missed it.

Meh those are in my Roth so I don't see any cons in my case

The dividend is also paid yearly and not quarterly. I still got the FZROX though because I want to keep it simple sweetie. I agree with you on the FSMAX though.

What if you have the zero base fund in a IRA account and you were to sell it would you still be stuck? as in paying capital gain. I'm assuming with Roth you wont be because you already paid the taxes when your putting money into it.

Thank you sir! Very glad of this information!

I'll follow u if you tell me where you got the t-shirt.

Their is NEVER a free lunch , especially w/o strings..

the dividend of these zero fee fund seems lower too

This video earned a like in the first 20 seconds. Great sense of humor!!

Is the dividend the same when comparing the 0 fee index funds to let’s say FXAIX?

I was just doing research and this helped me trust what I was learning. I didn't know that about the zero fee funds thanks!