FZROX

Machine8851

Nice this is similar to what I do in addition to 2 more funds. But I do FZROX and FZILX in a brokerage as well

BeautifulAuthor9167

Go FZROX or FXAIX. If you want a target date, only use FIPFX to keep fees at rock bottom.

AlarmedGibbon

There's a Fidelity specific one, FZROX, that tracks the whole market and has literally zero management fees.

Fish_Out_of_Water00

At least do 7k in a Backdoor Roth with FZROX and FZILX. Whether it’ll continue to dip is anyone’s guess but time in the market beats timing the market. Don’t invest in those zero funds in taxable account though because you can’t transfer them if you decide to leave Fidelity.

InvisibleEar

FZROX because I'm already in Fidelity

Life_Eye_5457

If you are nervous put 1/2 in a MM, 1/2 in a stock fund that is sp 500, SPY for one, FZROX has 0 fees, this total market fund is mainly large caps. I am 100% in stocks and will remain that way for life . 8-12% returns make my wealth grow better than 2-4% At 12% you money will double every 6 yrs. At 2% your money doubles every 36 yrs. Do you want 6 doublings or 1 doubling. your 100k will be 200 k in 36 yrs in a CD making 2% Your 100k will be 6.4 million in SPY IN 36 YRS 12% roi.

Aggressive_Finish798

FZROX (Total Market): Broad U.S. exposure. FNILX (Large Cap): Similar to S&P 500. FZILX (International): Foreign developed/emerging markets. FZIPX (Extended Market): Mid/small-cap U.S. stocks.

External_Pattern9950

fidelity is solid for long-term investing but their active trader platform is clunky compared to IBKR or even schwab. the zero expense ratio index funds (FZROX, FZILX) are genuinely hard to beat. no other broker offers that. their cash management account is underrated too, basically a checking account with ATM fee reimbursement and automatic sweep into money market. where they fall short is options trading (the interface is painful) and real-time data (you need to pay for nasdaq level 2 separately). if you are mostly buying and holding index funds with occasional individual stock picks, fidelity is probably the best overall platform. if you are actively trading, IBKR wins on execution quality and commissions.

DigitalDensity

To elaborate on this, OP, FZROX is a zero-expense VTI and FZILX zero-expense VXUS. As others have said, this combination gets you (nearly) every publicly traded company. The only caveat here is you’d have to decide what you want your US vs Ex-US allocation to be which would be avoidable with VT. Something to note, these are not ETFs like how the Vanguard funds are. You place a buy or sell order for however much in dollars or shares and buy/sell when the NAV changes for the trading day. ETFs (VTI, VT, VXUS, etc) are bought and sold throughout the day. If you automate investments and don’t plan to actively trade the Roth IRA (which shouldn’t be done anyway), this is a non factor but I know some people get antsy about it. Last, these are Fidelity-locked. If you ever want to move your Roth IRA elsewhere, you’ll need to first sell the shares of the funds before you move the money elsewhere and buy the other ETFs/index funds in the other broker. In a tax sheltered account like a Roth IRA, this doesn’t really matter. In a taxable brokerage, this’ll force you to recognize gains or losses and to pay taxes on those gains. All that being said, I love my Fidelity Zero holdings and would definitely recommend them so long as you have no plans to move out of Fidelity any time soon.

livetotranscend

I do 70% FZROX and 30% FZILX and I'm up 23.96% over the past year and my all time return is 45.21% (been doing it this way for almost 2 years I think). Both of those funds are zero expense ratio funds and cover most the market, both domestic and international. Lately I've been thinking about adding a small percentage of SCHD but I'm not sure how best to work it in.

GregorSamsanite

QQQI has only been around for 2 years, during a bull market for big tech stocks. It's volatile, but doesn't have a long enough history to reflect it. The dividends are just financial engineering. The underlying stocks they own generally don't pay high dividends, but the fund pays out their growth like dividends instead of capital gains. In an IRA you don't have a reason to care about the tax implications of capital gains vs. dividends. Returns are returns, and the difference between dividends vs. capital gains is mostly psychological, especially when it's investing in the same underlying companies either way. I'd say just stick with your original plan of FZROX and FZILX. Those are broadly diversified and FZROX will contain plenty of the same big tech stocks that QQQI is investing in, so you'll be exposed enough to that, without extra concentration in a tech fund. 70/30 is a reasonable ratio. Market cap weighting would probably be a little closer to the 60-65/35-40 range, but close enough, and nobody can predict the future and tell you exactly which ratio is best. At your age it's fair to go all in on stocks as long as you have the temperament to not panic sell when there's inevitably a downturn. As you get closer to retirement you'll want to think a bit more about value preservation. But even in retirement, the target date funds often want you 50% in bonds which I would consider too high. Target date funds can be a reasonable option, and better than a lot of the mistakes people can make if they get too involved, but I wouldn't consider them optimal.

kronikfumes

Especially considering the last year performance of FZROX compared to FZILX.

Various_Couple_764

FZROX and FZILX iare a total market fund and interhnationonal market fund. FXAIX is just a S&P500 index fund. The stock in FXAIX are in FZROX. I would just go with FZROX and FZILX. Both are fidelity zero funds which are only available to fidelity customers and and have zero fees and expenses. IF you invest in these fund and max out your yearly deposit you will have about 2 million invested by age 60. But one issue with Roth accounts the deposit limit is very low. 7500 per year. If you could increase the deposit limit to 15000 you would have about 4 million by age 60. So it is worth it to make changes to get more money into the account. So I would consider adding a dividend fund to your account. dividends are cash profit sharing payment to investors in a company. And a Roth account allows unlimited dividend deposits into your account. I have a fund in my account QQQI. It has a dividend yield of 13% so it will generate a lot of cash Now you could invest all the cash in QQQI or your could collect the cash and and set up and automatic monthly transfers of the money into FZROX and FXIKX and QQQI. AND do an occasional rebalancing so that each fund will hav the same ammount of money..

Cruian

FDKLX is aggressive, it is 90% stock based. No matter what the age or timeline, not everyone can actually stomach a 100% stock based portfolio. The various investing subreddits see it all the time during even moderate drops of people that took on too much risk and want to bail on their strategy. The lucky ones post and get talked out of it before they go through with it. A single behavioral mistake like that could cost you more than the opportunity cost of bonds would. I wouldn't limit my US exposure to large caps only, I prefer total market style, so that'd be FZROX or FSKAX.

Cruian

International should be considered just as aggressive as FZROX.

dabrothergoose

I just do 100% FZROX in my roth, but you do your allocation to what you feel is best. I have many more decades of investing before retirement so I'm gonna go 100% in this for at least another 2 decades before I switch my percentage up to something like bonds or international.

ItsHowItisNow2

Well…I don’t know about “reliable” anything these days with big mouth DT soiling everything…my “reliables” are TQQQ at over 1000% profit, Apple, Oracle, NVDA (even now…I am at 47% profit), AMZN, FZROX, pharma stock, REIT’s and such…I never get to pay any income taxes

Crazy-Cat-Lad

And I believe they pay dividends once per year (at least the FZROX and FZILX that I did) instead of quarterly or monthly

Cruian

FZROX isn't an S&P fund of any sort, it is a US total market style fund that follows a Fidelity in house designed index. FNILX is closer to S&P 500, but again, uses a Fidelity in house designed index of 500 US large caps, not the S&P 500.

Cruian

Vanguard's VTI at 0.03% or VTSAX at 0.04% are higher than Fidelity's FSKAX at 0.015% or FZROX at 0.00%. Same story with VOO/VFIAX vs FXAIX.

pinprick58

I like Fidelity. They have an S&P index fund with zero fees. FZROX

Star_Stalker_Demon

First, stop kicking yourself. Starting at 25 with $3,000 is fantastic. You have decades of compounding ahead of you. You aren't late; you're actually ahead of the curve. As for the 'Big Three,' you truly can't go wrong with any of them, but here is the breakdown for someone in your shoes: Fidelity: Probably the best for beginners. They have 'Zero Expense Ratio' funds (like FZROX) which means you pay $0 in fees. Their app is also the most modern and user-friendly of the three. Vanguard: The 'OG' of index funds. Great if you just want to buy and forget. It’s owned by its fund shareholders, which is a cool structure, but their app/interface feels a bit dated compared to Fidelity. Schwab: Excellent customer service. If you ever plan on traveling, their checking account (linked to the brokerage) is legendary for ATM fee rebates worldwide. +1 My advice? Pick Fidelity. Their 'fractional shares' feature will let you invest every single dollar of that $3,000 immediately, even if the share price doesn't line up perfectly. Just pick a Total Market Fund or S&P 500 fund, set up an automatic monthly contribution, and go live your life

AdventurousFan8144

25 is not late. genuinely. someone telling you that at 25 is either 22 and feels clever or has never done the math on compound growth over 40 years. all three are fine, you won’t make a wrong choice. but if I had to pick for a beginner with $3k: Fidelity. the interface is cleaner for someone just starting, they have zero-fee index funds (FZROX, FZILX) which matter when you’re starting small, and their app is genuinely easy to use without feeling like you need a finance degree. just pick one, open the account today, put it in a broad market index fund, and set up automatic contributions. the broker matters way less than just starting.

joshbend

All three are excellent. the difference between them is pretty marginal, and picking one and starting matters way more than which one you pick. That said, Fidelity has a slight edge for beginners: their zero-fee index funds (FZROX for total US market, FZILX for international) have 0% expense ratios and $0 minimums. hard to beat. Vanguard funds like VTI are the industry benchmark but Fidelity's equivalents are essentially free. Schwab is solid too. At 25 with $3k, open a roth IRA at whichever you like and put it in a single total market fund. you're not late. someone who starts at 25 and contributes consistently for 40 years ends up in a completely different place than someone who waits.

No-Acanthisitta7930

I have been imparting this into my kids. Investing is THE best way fir the average Jane or Joe to achieve comfort. Period. A homeless person can start an investment account with Fidelity and throw 25 bucks into, I dunno, FZROX every week or two if able. Its not about the amount more than it is about the time that money has to compound. If you've got 5 bucks to spare then buy 5 bucks of a total market index fund. Got 10? 20? Cool, throw it in. Time is a commodity more precious than gold when it comes to investing, so just throw in what you can, when you can and the results will be nothing short of extraordinary.

DaemonTargaryen2024

* Option 1: globally diversified (slight US tilt) * Option 2: US-only, tilt towards US LC blend, US LC value, and tech. Long term, the smart bet is Option 1. >FZROX and FZILX gives broader diversification including small caps and international Correct >SPY QQQ SCHD is more us focused with a heavier tech and dividend tilt Correct. There's no logical reason to tilt towards dividend stocks. And the tech tilt can be enticing but careful chasing recent performance >QQQ has historically outperformed in tech driven markets but with more volatility Correct. After dot com it fell 80% and didn't recover for 16 years. Would you be okay holding onto QQQ if something similar happened again? >SCHD adds income through dividends Technically, but who cares about income when you're not retired? >but can lag in strong bull runs Yes. It also just underperforms long term, period.

WTFOMGBBQ

Open a fidelity account and put it into a market wide 0% fund like FZROX. Every year, try to max out a Roth IRA… if you get to the end of the year and you can’t dp that, sell stock from this fund and put it into your Roth IRA. If you dont know what the hell im talking about ask chat GPT to explain it..

Admirable-Ad-8402

If you want to be a passive investor and just leave it somewhere to grow I suggest low fee ETFs such as FZROX or FXAIX. Check out an investment calculator (https://www.calculator.net/investment-calculator.html) to understand how that investment might grow over time. If you assume ~10% growth with an initial investment of $110k after 20 years you could be sitting on $740K.

Amorphica

FZROX wont transfer. thats the only thing still left in my kids' fidelity accounts. fidelity funds are only on fidelity.

blind_homer

Fidelity. 0% fee total market funds (FZROX and FZILX) and automatic money market yields on cash (SPAXX). Upgrade to FZDXX (premium money market -- higher yield and lower fees) if you have $100k+ initial cash investment. Fwiw, Schwab has more history donating to Republicans (they also decamped from CA to TX), if that matters to you.

D74248

The issue with FZROX is that it cannot be transferred in-kind to another brokerage firm, so you're in a marriage with Fidelity that even the Pope cannot annul. And the same with gifting, if that ever enters the picture.

Life_Eye_5457

Do not buy BTC, it will head to zero, they are out of buyers. Most indexes will perform equal long term so if u buy one that is down u will win. I own 6 : BRKB(works like a fund they own 130 companies) , FZIPX-0 FEE Small cap, MDY -mid cap, Fnilx -0 fee Large cap. QQQ Or VGT -tech or nasdaq, Semiconductors -an Ai play- SMH. I do not rebalance to avoid taxes, so I could really own 1 of these only ,If I did rebalance, I would buy FZROX a zero fee total market fund.

SirGlass

I mean the market as a whole has been flat for about 1 moth its very normal Your really exposed to tech holding FSELX/GOOG, NDVA. AMZN, NFLX As those companies also make up a large part of FZROX as well

SeverHense

Anyone's portfolio down for the last 30 days? 75% ETFs: FZILX, FSELX, FZILX, FZROX. 20% Mag 7/"safe" stocks: GOOG, NDVA. AMZN, NFLX 5% funny money: FSAGX, XME, MU, FBTC. Should I better diversify?

Life_Eye_5457

every total market fund is now a large cap, i checked many of them eg iTOT and FZROX

OcelotWolf

I’ll do my part and buy $3 worth of FZROX in hopes of it being enough to push the price up for you

Admirable-Ad-8402

FXAIX or FZROX or 50/50. Low fees and a nice spread across the market. Let it roll!

williams5713

Got it. How about if you own something like FZROX?

arcademachin3

25k FZROX, 25k FZILX, 50k HYSA. 20k for home improvement, new car, speculative stock bets in the first year (pick one, this is the ceiling on your fun money). Then bleed the remaining 80k into the market 5k per month for 16 months into the two ETFS I listed at the start.

StatisticalMan

I prefer ETFs in taxable for a variety of reasons * usually lower ER * better tax efficiency * easier to tax loss harvest (sell VTI and buy ITOT) * universally portable For ETFs (as opposed to mutual funds) there is no downside to owning an ETF from a different fund family (i.e. Vanguard ETF at Schwab brokerage, Schwab ETF at Fidelity brokerage). In tax sheltered accounts it is largely a preference. My Roth IRA is simply 100% FZROX.

KumingaCarnage

Jeez $1500 in fees?! How many shares did you have at the time? Idk how I’d go about rolling over to FZROX since all I’ve got in FXAIX in my ROTH IRA

pinprick58

I agree most people should have the majority of their money in the S&P. However, you should look at Fidelity's FZROX. It is the same exact holdings as FXAIX but has **zero fees**. It was started by Fidelity to entice people from other brokerages to move their money to Fidelity. I switched mine to FZROX last year and saved $1500 in fees.

Raiddinn1

Buying a house outright isn't a terrible idea for a portion of the winnings. House values have crashed due to interest rate hikes and that's actually a good thing for someone buying with cash. You still have the opportunity to do a cash out refi later to get most of the money back once interest rates go down again (if they do). Setup a taxable brokerage account at a top three broker (Fidelity, Vanguard, Schwab) and move the rest of the winnings to the taxable account. Since you don't need the money, I suggest putting the rest of the money into a low fee S&P index fund or whole world created by that broker. Something like FZROX or VT. This money should make very solid returns over your lifetime. Use this as a stable base. There is no realistic way to become a billionaire other than founding a company that becomes very relevant to the lives of hundreds of millions of people, so you probably want to start working on getting the kind of skills that would allow you to do that in the next few decades of your employment.

InvisibleEar

Just do 80/20 FZROX FZILX

Double-Intention4308

> FZROX I don't think there's anything wrong with this split, but I think FZROX and FXIAX have pretty significant overlap and track each other pretty closely. It may be worth considering keeping just one or the other.

EarthWindandFlyers

Hey everyone. Just opened my Roth IRA, and am at the beginning of my investing journey. My employer does not offer a 401(k), so Roth IRA was my plan. After looking at this sub, reading, and watching some videos over the past couple weeks to try and make an informed decision on where to allocate my contributions. This is my plan for my portfolio on Fidelity: 70% FXIAX and 20% FTIHX and 10% FZROX. Is this a good plan, or am I missing something obvious? Thanks in advance everyone!

SeanWoold

I'd love to see that too, but VTI and VOO are probably already bottomed out. I don't know that I have ever seen an ETF below 3 BP. The only mutual funds I've seen below that are FZROX and FXAIX but those are loss leaders.

Think-Trouble623

FZROX (whatever flavor of total market you choose) and chill, brother.

Spare_Ad8851

FZROX and FXAIX are very similar as S&P500 is a big part of the total market, so you are not missing anything either way. It's 100% equity either way, so as aggressive as you can be kids have a $1,300 standard deduction, so they can realize up to $1,300 in passive income per year without filing returns or paying any tax. Some of that space will be taken out by dividends, but, depending on your balance, you can have some more tax free space left at year end. So you can sell your investments and buy them back the next day. Say you have $5,000 invested, they earned $250 in dividends throughout the year and also appreciated to $6,000. At the end of December you sell your FXAIX and buy it back, realizing $1,000 in capital gains and stepping up the cost basis to $6,000. Since the child's total income for the year is below $1,300 they don't have to pay anything

FunConcert1690

What do you mean by harvest gains? I’m not familiar with this term. Also, my Roth is currently set up with 80% FXAIX, 20% FZILX. I know this is a highly aggressive mix, but would you think being that aggressive with the UTMA is a bad idea? Having my Roth set up like this has done really well so I was originally planning on mirroring it for the UTMA. FZROX does offer better diversification with zero fees, do you feel like you are trading zero fees for less growth though?

Spare_Ad8851

I have UTMA at Fidelity so I use their zero fees funds - 65% in FZROX (total US market) and 35% in FZILX (international) I don't see the point in bonds for a "fun" money account with long maturity don't forget to harvest gains at the end of the year - it's not a lot, but with a few clicks you can step up their basis just a bit

sovereign_MD

I was 70/30 FZROX/FZILX and moved to 55/45

andybmcc

That's total US market, not world. Cap weighted S&P 500 and total US will perform similarly because of the weighting. FNILX is the zero mutual fund that resembles the S&P 500. The share prices is completely irrelevant. You can invest in partial mutual fund shares no problem at Fidelity. I would suggest investing in total US and an international fund. For Fidelity mutual funds, that's FZROX and FZILX for the zero funds or FSKAX and FTIHX for the normal (still extremely low fee) mutual funds.

FaithfulGaurdian

The SP500 has recently been slowing down due to growing concerns about an AI bubble as institutions have been pivoting away and into precious metals and international equities. I would recommend diversification and I personally would not put all of it in FXAIX. International equities in the past year have been on a tear and I would suggest some allocation into that. If she's with Fidelity, they offer FZILX which broadly tracks international equities and has an expense ratio of zero. They also offer another mutual fund with an zero expense ratio FZROX to track the whole US market if you're interested in expanding into midcaps and smallcaps.

Skepticalpositivity9

FZROX is total US market not total world market. I’d say FZROX if picking between them.

paragonx29

True. I own both FXAIX and FZROX, and they have nearly identical returns.

SnoopDoug523

FZILX + FZROX is the answer

fwiga

FZROX / FZILX split

Whiskerdots

Fidelity's zero fee index funds like FZROX are the ultimate set it and forget it investments. FNILX gives the same exposure to large caps as FXAIX but without the fees.

DeeDee_Z

For kids, I'd have my largest segment in the total market fund (FZROX). If you want to overweight large caps, add a smaller position in FNILX. The rest is just "how do you feel"? I'd probably include some international, but you don't have to. I don't think you need bonds at that age at all, but you might want some. Bottom line is, *"It don't bloody matter, within ±10%"*.

anonymousleans

Wow. That was a very helpful response. I appreciate it. Are there any specific Fidelity funds you’d recommend for the mid and small cap? Seems like some allocation of FXAIX (S&P500), FZROX (large, small, and mid), FZILX (International), and some small percentage of bonds would be good?

DaemonTargaryen2024

No that tech ETF is fine. I just mean it’ll be more volatile than your broad market FZROX type funds. If you’re comfortable with a little extra risk and reward, that’s generally fine

DaemonTargaryen2024

>50% FZROX (basically VOO but no fees?) VOO + smaller US companies, but basically yes >20% FZILX (international emerging markets with no fees)  emerging *and* developed markets >20% FTEC (fidelity tech etf) This is fine as long as you can stomach more volatility for a longer period of time >10% FESM (fidelity small cap) No need, since this is already covered in FZROX. Unless you're purposefully tilting towards small cap. Overall: looks good to me. I'd get into the market immediately. If you hadn't rolled over it's not like you would've moved all your 401k to cash.

buttflapper444

>Note its probably a coin toss what will do better, based on the random performance for the 1k stock that FSKAX holds that FZROX does not. It's insane that they added a thousand additional stocks and didn't see any change in performance at all. Like, how does that even work? I compared it year-over-year for the past 5 years. How can a thousand additional stocks being added results in almost no change?

Cruian

>also FZROX I believe will sample the index, not buy every single company , This is common to other US total market funds as well. The other day I found it on VTI/VTSAX 's prospectus for example, I'd fully expect to see the same in FSKAX's.

SirGlass

Well there should be a very slight difference in expense ratio of 0.015 but they do follow two different indexes FSKAX follows the dow jones USA total market index. Note index funds have to pay some "fees" to follow an index FZROX follows some Fidelity U.S. Total Investable Market Index. So slightly different indexes, also FZROX I believe will sample the index, not buy every single company , FZROX has approx 2500 holdings where FSKAX has approx 3700 So its simply the small differences in the indexes and holdings Note its probably a coin toss what will do better, based on the random performance for the 1k stock that FSKAX holds that FZROX does not.

harrison_wintergreen

according to Morningstar data, FZROX has slightly lower percentage in mid and small caps. this difference might explain the bit of FSKAX under-performance over the last few years. but if large company stocks slump and smaller company stocks rally, it's possible FSKAX might be the better investment. to see the portfolio holdings broken down by different measures to to Morningstar > search any fund ETF > portfolio > style measures > market cap https://www.morningstar.com/funds/xnas/fskax/portfolio

0raegano

Since FXAIX is S&P 500 and FZROX is total US, you still don’t think there is benefit to having both?

Emotional-Power-7242

FXAIX and FZROX are essentially the same thing. They have an 80%+ overlap and performance wise basically just track each other. So for simplicity sake best to pick one, sell the other, and put the money into the chosen one. Needs more FZILX. Really al you need is FXAIX (or FZROX) and FZILX.

MF266

If I wanted flexibility to move brokerages later, I’d lean ETFs in the taxable account. VOO for S&P exposure checks the box and avoids getting stuck with proprietary funds. In the Roth, I’d be more comfortable using FSKAX or FZROX since portability isn’t really a concern there and tax efficiency doesn’t matter

0raegano

Hello! I am new to investing and am looking for advice on growing my brokerage account. Context: * I just turned 26 * I have $45,000 in my 401k, and I contribute roughly $14,000 per year to this (this is including my employer match) * I started a Roth IRA last year and maxed it out. I also have 2026 maxed out already. I would like to build on my brokerage account for more accessible funds. I have $90,000 in a HYSA earning 4% APY. This is my down payment fund (70k for down payment and 20k for an emergency fund) I use Fidelity and my brokerage account has $10k in it. This is what I currently have: * FXAIX - $4,600 * FZROX - $2,500 * NVDA - $1,300 * IDMO - $1,000 * FZILX - $700 Like I said, I am new to investing but know some basics. I really don't want to have to monitor this daily, so I'm looking for more of a set-and-forget. Thank you :)

Emotional-Power-7242

All you need is FZROX and FZILX.

Flakmaster92

700k, been investing for 9 years, I’m 100% VTI and FZROX, it’s treated me quite well.

gaiaphas

I'm with fidelity and currently in FBGRX, FZROX, FZILX, and FNILX. I know Financial planning is based on goals, i plan on retiring early, how early? That remains to be seen. I put about 65-70% of what I invest into FBGRX and the rest is distributed evenly. Is there a fund or other plan I should go with?

arcanition

With $17,244.41 plopped into a low-cost broad S&P500 index fund like FZROX which has grown about 13.3% per year on average recently. Just for funsies, that $17,244.41 would have grown to... * ... $60,110 in 10 years * ... $209,530 in 20 years * ... $730,374 in 30 years * ... $2.5 million in 40 years * ... and $8.9 million in 50 years

Mindless_Machine_834

Isn't this apples and oranges? You don't know that FZROX will or will not underperform VTI (next 10 FZROX could be way better), but you DO know you save the expense ratio.

arcanition

My point wasn't "it's only $50k difference so it doesn't matter". My point was "the difference in holdings between FZROX & VTI (something you don't control) will be a much bigger difference than 0.03% annually, so it's not a significant factor". For example, the difference in performance of FZROX & VTI just over the past year is 0.38% (more than 10 times the significance).

No-Acanthisitta7930

Omg stop it with the gold thing on this sub! No, gold is a passive asset. It earns no compounding, no dividends, no cap gains. You buy it and it just sits there. An index fund on the other hand, compounds, meaning that even if your index fund makes ZERO GAINS, you still end up with more money. Avoid the stupid gold, open a Fidelity account and buy FZROX or FXAIX instead. Gold sucks.

HotfixLover

At your age, for a Roth IRA, the difference between ETFs and mutual funds isn’t that big. If you want to follow the Boglehead 3 fund, FZROX/FZILX is simpler and has no fees, but VTI/VXUS offers flexibility if you plan to move the account later.

arcanition

It really doesn't matter, one is an ultra-low expense ratio and the other has zero expense ratio. To show you how little it matters, consider a $1,000,000 holding that grows on average 8% per year: * After 10 years, the FZROX holding (0% expense ratio) would be at around $2,159,000 while the VTI holding (0.03% expense ratio) would be at around $2,153,000. * After 25 years, the FZROX holding (0% expense ratio) would be at around $6,849,000 while the VTI holding (0.03% expense ratio) would be at around $6,801,000. * After 50 years, the FZROX holding (0% expense ratio) would be at around $46,902,000 while the VTI holding (0.03% expense ratio) would be at around $46,255,000. So, is there a difference? Technically yes. But the miniscule differences in holdings between the two funds will vastly outweigh the 0.03% difference.

dooknuckduster

Either one will work. FZROX / FZILX, VTI / VXUS, ITOT / IXUS (blackrock iShares), etc

Cruian

>Initially I was leaning towards VTI/VXUS because ETFs are better for portability The Zero mutual funds would likely only add a market day or two to your move. That's so small I wouldn't worry about it. >and I like the ability to just sell during the day as opposed to waiting at the end of the day. For some people, that makes it more likely they commit a behavioral mistake. >However for FZROX/FZILX I learned that portability doesn’t matter as you can liquidate all the assets in a tax advantaged account before you move to another company. Correct. The performance difference between VTI/FZROX and VXUS/FZILX should be incredibly close to the point which is ahead may even trade places from time to time.

theeyeholeman1

Fidelity. $600 in FZROX, $400 in FZILX. DO NOT TOUCH IT

Beneficial_Toe_6050

RKLB. Dumped my FZROX and FZILX and bought RKLB when it was 6. Made a decent profit.

Cruian

Despite the name including the word "growth" and great recent returns, long term has tended to favor the complete opposite: small and value over large and growth. Factor investing starting points: * https://www.investopedia.com/terms/f/factor-investing.asp * https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF) * https://www.cbsnews.com/news/the-black-hole-of-investing/ * https://www.dimensional.com/ca-en/insights/when-its-value-versus-growth-history-is-on-values-side * But be aware that factor premiums can take a while to show up: https://www.reddit.com/r/Bogleheads/comments/1hmbwuw/what_every_longterm_investor_should_know_about/ * And from GwenRoll: https://www.reddit.com/r/ETFs/comments/1krd3fe/growth_does_no_one_know_what_the_hell_it_means/ >FTIHX at 20% feels like enough international exposure to avoid being 100% US, without dragging down returns too much if the US continues to outperform But waters them down if international continues to over perform (2025 favored ex-US). This isn't an uncommon event, over 40% of 10 year periods since 1970 have favored developed ex-US over the US, which isn't too far off from a coin flip. In fact, last I checked, many places were expecting markets to favor international over the US for the next decade or two (valuations playing a large role in that). >FSPGX is my "aggressive" bet. I know it overlaps with FSKAX, but I want to double down on growth/tech while I’m 22 As covered above, "growth" as a style has tended to under perform in the long run. You may be reducing your expected returns with this. Sector bets are uncompensated risk. An uncompensated risk is one that doesn't bring higher expected long term returns. Uncompensated risk should be avoided whenever possible. Compensated vs uncompensated risk: * https://www.whitecoatinvestor.com/uncompensated-risk/ * https://www.northerntrust.com/middle-east/insights-research/2024/wealth-management/compensated-portfolio-risk >But not all risks are compensated with an expected return premium. * https://www.pwlcapital.com/is-investing-risky-yes-and-no/ (Bold mine) >Uncompensated risk is very different; it is the risk specific to an individual company, **sector,** or country. What makes you think that tech is either the only sector still under valued or the only sector not over valued? >-​Is 20% International (FTIHX) a good middle ground? I see some people say 0% and others say 40% (market weight). I’m trying to find the sweet spot for maximum growth. This is impossible to tell ahead of time. Take a look at Figure 4 here: https://www.bogleheads.org/wiki/Domestic/International a 37ish year period where anything more than 10% US hurt your returns. Figure 2 shows roughly the same time length where the best returns were with 40-50% international (when we exclude emerging markets). >​Are there any specific "gotchas" or better fund equivalents at Fidelity I should be using instead (e.g., FZROX vs FSKAX)? Do you prefer the few hundred extra holdings or the very tiny expense ratio difference? Does it matter to you if FZROX follows an index Fidelity designed themselves?

Electronic_Team_4026

Hello, I am curious what the differences would be over the long term between these two investment options. Background: DINKWAD with extra money outside of Roth / 401k that I’d like to invest, and don’t see myself needing in the near future (over 5 years). My in-laws use a professional over at Edward Jones for their retirement and financial planning. My wife and I went to visit him and he proposed investment options at a 1.3% (if I remember correctly?) monthly fee. At the time, I said let’s do it. It’s done well, netting 13.79% YTD. I still have a personal account in fidelity invested in FZROX, which is netting 17.24% as of this writing (1.1.26). My question is this, is paying the 1.3% going to be worth it over the long run (assume 20 years until retirement age) to have someone manage this money versus me just throwing more cash into FZROX, which has a 0% expense ratio, thus free. In my brain, I feel like I know the answer. Ditch Edward jones and just invest it myself. But I’ve come to the hive mind for a clearer picture that I may be missing, as I’m far from an investor professional or even financially savvy.

Reasonable-Guest2392

Okay, the comments aren’t really helpful technically, but also helpful realistically. So as a new investor myself, 2 things I learn are 1)high reward comes with high risk, but high risk doesn’t necessarily contribute to high reward. 2)Everyone has a tolerance, and the right approach is unique. So set your own expectations. Personally for me 12-15% annual return! I tried to test different approaches (whatever comfortable). I tried to DCA FZROX and FZILX and small cap FZIPX for some months, and I didn’t know the small cap and sold for like 2% profit. I also tried to high dividends stocks due to recent price sink, like UPS, target, and high reputation PEPSI, also came across Verizon and PFE. So for those stocks, I buy gradually as well, I only add more if they sink, and when they rise like 5% in a week or so, I’ll sell, cuz annual returns already past my expectations 12-15%! I did hold a couple of times, for example Pepsi, reached 7% in 2 weeks but 2% still before I sold after 3 months! You do the maths. All above just make me stay in the track! The bonus is when I trade coreweave! When they tank like 20% in a week, I started to buy little by little, and when it pops up, I sell after couple of days, once made 12% and another time 22%! So the key for my “day trade” is NOT greedy! Buy dip sell high ONLY! Hope it helps. Good luck to all of us in 2026!

Cruian

There should be (at least essentially) zero overlap, as FZROX is US total market style and FZILX only covers outside the US. International small caps are missing, but those wouldn't receive much weight if they were present. You're a little light on the FZILX, as current global market cap for ex-US is between 35 and 40%, and common current recommendations I've seen tend to suggest 30-40% of stock be international. You aren't too far outside that though, so that's not too bad.

ThunderPantsGo

Up 20.5%. Not bad considering I held on to Chipotle and Apple too long. Besides those two which I sold in Q4 and purchased Google, everything else is FTEC, FZROX, and QQQM.

TheHarb81

17.17%, 100% in FZROX

moiax

I love FZROX in a Fidelity IRA. ETFs are generally better in taxable accounts (they are able to so some things to reduce/eliminate capital gains within the fund). Since the goal of an IRA is to let it simmer for a long time, it is unlikely that you are going to be playing with it or moving things around. FZROX is not a mutual fund that can not be moved outside of fidelity. If you do need to move the IRA, you can sell the fund within the IRA without any issue, since you won't be taxed at the time of selling, and then move the account.

blablahblah

The post is specifically asking about S&P 500 funds. S&P 500 is an index which tracks 500 large US companies, so all of the S&P 500 Index funds are going to be investing in those same 500 companies. FZROX tracks a different index, a total market index, which is why it wasn't mentioned here. While the S&P 500 only covers 500 large companies, FZROX tracks 3000 companies, big and small. Since the S&P index includes all of the biggest companies, most of FZROX's value is made up of the same companies that are in the S&P 500, but it is more diversified than these other funds.

No-Money-5104

i have FZROX, is that good or bad?

Sufficient-Curve-853

If you use Fidelity as a brokerage and plan to stick with them I can't think of any reason not to own their 4 zero ER mutual funds - FZROX, FNILX, FZIPX and FZILX. Sure there is some redundancy but you would have covered total US, Large Cap US, Mid and Small Cap US and the rest of the world in Developed and Emerging Markets. DCA'ing into those for the young is almost stealing compared to the options available say in the early 1970s.

ratedsar

I recently fired / was fired from EJ. I inherited a small account with SPIAX, which the original purchaser paid a 5% load for and I was paying a 0.58% annual fee for.  The advisor pitched moving into QQQ fund (which would have outperformed SPIAX) with the funds and their new 1% aum fee or 2% per trade (etc). I just let SPIAX drip for 4 years.  Finally, he wasn't making money from me, so he transferred me to national to do anything. he fired me. That's right, I have to talk to someone I've never met to manage my money at a firm that is pitching a personal relationship. Well, now I moved the SPIAX to Fidelity next to a 401k and Cash Sweep plan, now it'll DRIP into FZROX, saving .58% a year, and reduce the number of tax forms I file. The kicker, fidelity has a free advisor that is close to where I live for the basics.

TheHarb81

I don’t need help, I invest in FZROX and don’t worry or waste time

Zigxy

FZROX if you have Fidelity VTI or VOO perfectly fine too

Sick0h

I’m 80% FZROX 20% FZILX in the retirement account from a former employer, just left the money there since I like having access to those funds over my newer employers 401k choices. I’m basically 80/20 total market/international in 401k as well, just had to piece it all together differently and don’t get that sweet 0% expense ratio.

Sick0h

Off topic, but if you have any of your non retard gambling money with Fidelity and are using index funds, their zero expense funds are actually pretty sick. FZROX is basically total US market index fund with 0 expense ratio. VTI already has low expense ratio and there is obviously the inability to trade it quickly like with an ETF/inability to transfer it to a different broker. But if it’s a buy and hold 20-30 year situation, I like keeping those few extra pennies.

AccomplishedClub6

In a Fidelity account you can just get FZROX for 0 expense ratio total market fund. Perfect if you have a retirement account.