FZROX

harrison_wintergreen

There are two issues with those fund: - first as the other person mentioned, those mutual funds have much higher fees than alternatives. Fees will eat into your returns over time. There are better options with lower fees. - second, those two fund are very similar, both focused on larger American companies. links below. The top 10 stocks in both funds are very similar: Microsoft, Amazon, Nvidia, Broadcom, Apple ... so whoever sold you these funds didn't put much thought into the process. a better portfolio would be, maybe, (1) Larger US company fund; (2) smaller US company fund; (3) international company fund. these 3 would zig and zag differently, and would compliment each other better than two that are nearly identical. so my advice is similar to the other reply: fold both of those funds into FZROX or FXAIX or FSKAX (to use Fidelity examples), and add an international fund (FZILX, FSPSX) and possibly a fund focused on smaller US companies (FSSNX) ACAAX portfolio: https://www.morningstar.com/funds/xnas/acaax/portfolio FAGAX portfolio: https://www.morningstar.com/funds/xnas/fagax/portfolio

PashasMom

I'm going to propose a different kind of diversification, but hopefully one that will appeal to you. You have two very high expense, high turnover, actively managed funds. I would look for options that are low expense, low turnover, passively managed funds -- the kind that you can throw money at for the long term without stressing about whether one sector is doing better than another, the brilliant manager in charge of your fund has gone to a different company, etc. This is your buy and forget about it portion of your Roth. I am assuming you are a Fidelity customer or at least somewhere that you can buy Fidelity mutual funds without a fee. So, my proposals would be FNILX or FZROX -- depending on whether you want whole US market coverage or just large caps + either FSPSX or FZILX -- depending on whether you want your international holdings to be developed markets only or to include emerging markets.

username_taken1776

Formatting tip, if you add two rows (hit enter twice), it will start a new paragraph and makes your holdings easier to read: Roth IRA: 100% VT Employer Simple IRA: 100% SPIAX HSA: 100% FZROX Brokerage: SOFI, HIMS, NVO, VTI

MountainMistCalm

At 22 I would leave out bonds till I am closer to retirement, if I was in your shoes I would do: 80% FZROX and 20% FZILX It's that simple, the above is a global portfolio that include large cap stocks similar to those in the S&P 500, mid and small cap stocks, growth and value stocks, dividend stocks, international stocks. All that to say you don't need to add anything else except money. [https://www.fidelity.com/mutual-funds/investing-ideas/index-funds](https://www.fidelity.com/mutual-funds/investing-ideas/index-funds)

wandererarkhamknight

FSKAX has an ER of 0.015%, whereas FZROX is 0. Calling them high fee is misleading.

PeaceLvSpreadsheets

True YOLO? Vegas roulette table. Reality? I guess I'd do QQQ because it's slightly more risk/reward than FZROX but still not that risky.

Gimme_All_The_Foods

FZROX is great in tax-advantaged accounts. Just don't own it in taxable though since it's not portable.

DeeDee_Z

Inside of an IRA, the non-transferability of the "Fidelity Zero" funds (four of them) is a non-issue; if you have to or want to move to another brokerage you simply exchange them for Class A shares of an equivalent fund. I like FZROX better than FXAIX for what it -doesn't- own, actually.

SnS2500

Ignore the dividends and expense ratio, only the total return matters. But more to the point, the choice is the S&P500 versus the total US market. Either choice is reasonable. FXAIX has been +105% the past five years while FZROX has been +104%. Do not lose sleep over that choice (or just start by buying 50/50 if you want).

AccomplishedClub6

A 401k (retirement acct) is usually with your employer. If you no longer work for that employer and already moved it into a similar retirement account with a financial advisor, then I assume it is already set up as an IRA (retirement account). So yeah you just have to transfer the account to an equivalent IRA and invest the money in a low cost index fund like VOO or FZROX. Set it and forget it, no research needed.

thatdudejubei

Yeah the important thing is that you are starting young which is great. Don't over think it just go maybe 80 or 70 precent in FZROX and the rest in FZILX and move on with your life.

Gliese_667_Cc

Just get an IRA at Fidelity and put your money in FZROX (total market fund). Don’t pick individual stocks. Just buy and hold total market fund until retirement. That’snit.

srfdriver99

Unless you've maxed out both your 401(k) and your Roth IRA, there is no reason for the average Joe to have a regular brokerage account until close to retirement. That's a combined $30k/yr in savings before you start saving outside of the tax-advantaged accounts. Due to the way Roths are structured, you want your Roth IRA in the most aggressive growth plan possible. That means max stock, [FZROX or some other stock fund](https://totalrealreturns.com/n/FXAIX,VOO,FZROX,VTI). A [three-fund portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) is a good standard starting point. Note that this is your overall portfolio, you don't replicate this in each account. The Bogleheads wiki is full of useful information, I'm not going to go into detail on everything, but one key thing to remember is that if you have both Roth and Traditional accounts, the Roth ones are the optimal place for maximum growth/risk investments as there is no tax on the growth. Your investment order should be: 401(k) to max out the company matching portion -> self-controlled IRA to government limit -> 401(k) to government limit -> then and only then do you start your own brokerage account. (Of course, if you are saving for a down payment on a house or something similar, you may load up on short-term CDs in a bank account or something along those lines.)

gottemgottemgottem

[https://www.fidelity.com/mutual-funds/fidelity-funds/overview](https://www.fidelity.com/mutual-funds/fidelity-funds/overview) List of all fidelity funds. Go to section "index" (passively managed, low fees) Key funds: [FZROX](https://fundresearch.fidelity.com/mutual-funds/summary/31635T708) (zero fee/expense total market fund) [FZILX](https://fundresearch.fidelity.com/mutual-funds/summary/31635T609) (zero fee/expense international fund) FXNAX (US Bond market fund) Pick a ratio of these three, I do 60% FZROX 40% FZILX as I am young and not retiring soon. (This means I am 100% in stocks, but 70% of my stocks are US stocks and 30% are international stocks)

Happy_Ad9174

thank you, so for ex would just switching my VOO pick over for FZROX and then using FZILX be fine since I really dont have much to be adding in currently

thatdudejubei

Just do FZROX (fidelity's zero expense total US market fund) and FZILX and call it a day. If you just leave your money in VOO and continue on with FZROX it is not going to make a difference really especially if you only have only a little bit of money in it.

MesmorizedExplorer

Definitely FZROX (and FZILX for 0% fee in international) in a tax-advantaged account (Roth IRA, Roth 401k, etc.). If you put them in a regular IRA or 401k and want to move to another brokerage (Fidelity to Schwab/Vanguard/etc.), you'll have to pay fees on it.

IWantToPlayGame

FZROX and chill.

xiongchiamiov

It is generally considered a good idea to diversify widely across countries, yes, and FZROX would be a way to do that. Alternatively, consider [the fidelity index target date funds](https://institutional.fidelity.com/app/proxy/content?literatureURL=/9900844.PDF), which do this for you.

Unknown_Mando

Hi r/investing, I’m new to investing and using Fidelity for mid to long-term goals. I’ve been putting everything into FXAIX but am wondering if I should diversify with other index funds like FZROX or find something else with international exposure? Any advice is greatly appreciated. Thanks!

caltheham

If you’re referring to your 401k account in particular, your plan likely offers the ability to open a sub account within it called a self-directed brokerage account, this should open you up to the rest of the market of funds including fidelity’s free ones like FZROX that you are looking for

AccomplishedClub6

FZROX is a one stop shop total market fund with 0 expense ratio. It's a loss leader for Fidelity.

Wild_Capital7202

Your portfolio is quite aggressive, but it's a bit concentrated in individual stocks. Tesla and Amazon each hold over 20% each, which can be quite risky. I recommend placing the majority of your holdings in broad-based index funds (VOO/VXUS/FZROX), leaving a portion of your portfolio in individual stocks as a "passion position." Also, be sure to max out your Roth IRA annually, placing growth assets in it for the best future tax-free growth. Combined with global diversification and regular rebalancing, your retirement goals will be more stable.

Based_Commgnunism

The Fidelity mutual funds are good. FXAIX is S&P500. For total US market there's FSKAX and FZROX. The Vanguard equivalents VOO/VTI are also fine if you prefer an ETF. Or any of the other many low fee S&P500/total US funds. As to whether you prefer to hold S&P500 or total US it doesn't really matter as their performance is essentially the same. Total US market is technically more diversified so I'd go for that if you only plan to hold one US fund. For international there's FTIHX or FZILX, or VXUS. I'd recommend holding them at market cap weights, so 65% US and 35% international. That way you just own the whole market. Another option is to buy VT, which is 65% VOO/35% VXUS in a single fund. With VT your whole portfolio can be just one fund. This also eliminates the need to do an annual rebalance. There are good reasons to hold small cap value funds, both US and international, but you shouldn't do it unless you really understand the thesis and why you are holding it and how it has performed recently and historically.

AccomplishedClub6

Why not FZROX for even less expense ratio (zero) and more total market diversity? It's a one stop shop for me personally.

No-Acanthisitta7930

Yeah lol, your dad has somehow jumped ahead of ALL of hardcore Wall St. traders and just knooooows something is going down lol. Most of the time us (dumb money) is riding the coattails of stuff that was already known a day in advance. Or more! He doesn't have some inside scoop, and it seems you were savvy enough to realize it. Good on you. Instead you dollar cost average into a total market index fund, maybe FZROX (if its in a ROTH IRA, because it is non-portable), maybe some international, and just do that for the next 30 years. The results will be nothing short of magic.

DeeDee_Z

If you're at Fidelity, look at the four "Fidelity Zero" funds, see what their investment focus is. You might get rid of one or both of the Vanguard funds. (FZROX is Total Market. I don't remember the rest, but they're named along the same lines: FZIPX, FNILX, etc.)

MrCrunchwrap

I would just open your own HSA with Fidelity and every once in awhile you can rollover your employer one from Optum to Fidelity. I do this with my shitty employer HSA and I keep everything at Fidelity invested in FZROX. It’s worked out fantastically so far. 

andybmcc

FZILX is the zero international fund.  FTIHX is more diversified, so probably better.  It's still cheap.  That's a perfectly reasonable portfolio. I hold some FTIHX and FSKAX (similar to FZROX).

Based_Commgnunism

If you hate fees so much Fidelity has FZROX which is VTI but zero fee and FZILX which is VXUS but zero fee. The difference between zero and .03% ain't much though.

xiongchiamiov

You don't need FXAIX because that's already well included in FZROX, unless you're intentionality tilting towards US large cap. Most people say no bonds. I say consider it and decide for yourself: * https://www.whitecoatinvestor.com/in-defense-of-bonds/ * https://www.whitecoatinvestor.com/100-stock-portfolio/ * https://www.kitces.com/blog/stocks-for-the-long-run-siegal-mcquarrie-portfolio-investment-bonds-asset/

Likestoread25

Hello, I have 5% in FXIAX, 15% in FZILX and 80% in FZROX. I'm just focusing on adding more money into my stocks and letting it grow in the long term. I'm in my late 20s, should I change what I'm doing or other stocks I should get?

Gunnar0410

Im 18 and seeking some advice on my current Roth portfolio. I have about 5,750$ in FZROX and about 1,500$ in FZILX and a small amount of 300$ in QQQM. I have started putting money into QQQM because i like the growth potential and on the more aggressive side? I plan to continue investing into QQQM until I reach my contribution limit (800$ left). Are these 3 funds good or too much over lap?

Strannix123

You’ve got overlap, especially between **VOO** and **FZROX**—both are broad U.S. market plays—so yeah, it’s diversified but not truly *diversified*. If you're in for 15 years, consider tossing some of that $70K into **international (VXUS)** or **small-cap value (VBR)** to round things out and reduce redundancy. And if 2/3 of your reserves are just sitting in cash? That’s a lot of dead weight—time to make that money train move.

Kris_Mettew

VOO (S&P 500) and FZROX are heavily correlated, with FZROX simply adding small- and mid-cap exposure. SPMO tilts toward momentum, but it’s still drawn heavily from large-cap U.S. equities. In other words, you’re concentrated in one geography and asset class, which is fine for growth but not true diversification. With a 15-year horizon, you could put a portion of that additional 70k into global exposure, something like VXUS or a developed/emerging markets ETF, to hedge against U.S.-only risk. You might also consider a small allocation to bonds (BND or similar) to temper volatility, even if equities stay your core. As for cash, if you’re holding more than 6–12 months of expenses, you’re probably being too conservative, deploying more into the market makes sense given your long timeline.

JazzFestFreak

1. Vanguard • AUM: ~$8+ trillion • Known for: Low-cost index and actively managed funds, investor-owned structure. • Flagship Funds: • Vanguard Total Stock Market Index (VTSAX) • Vanguard 500 Index Fund (VFIAX) • Vanguard Total Bond Market Index (VBTLX) • All funds are no-load 2. Fidelity Investments • AUM: ~$4 trillion in mutual funds • Known for: Both active and passive funds, strong research platform. • Flagship Funds: • Fidelity 500 Index Fund (FXAIX) • Fidelity Contrafund (FCNTX) • Fidelity ZERO Total Market Index (FZROX – 0% expense ratio) • Most are no-load 3. T. Rowe Price • AUM: ~$1.4 trillion • Known for: Strong actively managed funds, long-term track records. • Flagship Funds: • T. Rowe Price Blue Chip Growth (TRBCX) • T. Rowe Price Growth Stock (PRGFX) • All funds are no-load I have been in TRowePrice since my early 20s and I am now nearly 60. Market timing is for suckers. And every time I think I can pick stocks, I relearn I am an idiot. Regular monthly money to fill your Roth account is the secret. Extra $ into funds for your savings. (Don’t forget to get your emergency funds set up) — I hope one day 55 year old remembers these days when you committed to your savings and thanks you.

kronikfumes

FZROX and chill. Open a brokerage account if you want to have “play” money.

TheHarb81

FZROX and chill

porncrank

Great info. I think some of us did a "set it and forget it" yeas ago given how low the expense with Vanguard was, but I will start building positions in the FZROX since I'm already a Fidelity customer. Selling off my VOO would trigger too much tax at the moment so I'm probably stuck with it for now.

greytoc

Fwiw - Vanguard hasn't had the lowest expense S&P 500 or total market fund in a long time. There are several mutual funds and ETFs which have lower expense ratio - for example SWPXX from Schwab. ETFs from SSgA like SPLG have a lower expense ratio than VOO. And total market US funds like Fidelity's FZROX have 0 expense ratio. The Fidelity large cap US fund which index's incredibly closely to the S&P 500 also has 0 expense ratio.

TheHarb81

About 50-60% of my salary is RSUs and I live off the base and invest all RSUs into FZROX

TheHarb81

Sell all on vest and move into FZROX, been doing this for years, has worked out well

TheHarb81

I have it all in FZROX, over $1M now, set it and forget it, a wise philosopher once said

gotwaffles

FZROX I believe is the fidelity 0 fee market fund or something? Just buy now. Unless you need the cash in the next 3-5 years, then keep as is.

reality72

Yes, fidelity got rid of fees back in 2019-2020. You may pay an expense fee depending on what index fund you purchase. Popular choices with low fees are VTI, VOO, FZROX, etc. They all have low expense ratios.

get_it_together1

You make enough to get free advice from brokerages like Fidelity if you want some advice. When I went to Fidelity in 2015 they told me they were considering pushing all US at the time, and that worked well, last year I went back and they suggested maybe something like 10-20% international if we wanted. Fidelity and Vanguard both have no-fee total US market funds if you want (FZROX and VTSAX). You can just do those funds if you don't want to think about it and you want more exposure to smaller companies than what's in the S&P 500. Definitely don't take gains, just buy into whatever other funds you want over time and rebalance that way.

LintItIs

The bulk of your portfolio should be index funds. VTSAX, FZROX and SWTSX give good diverse exposure.

No_Tale5373

Mutual Funds it is for most busy people. FNILX, FZROX from Fidelity - 0% fee indexed stock funds. If you're absolutely in love with ETFs, BKLC from BNY, also 0% fee.

Radiant-Decision-971

My ROTH maxes into FZROX currently. Granted there’s a lot of overlap there anyway but I figure with the SP I can ride up and down with the best of the markets companies exclusively.

f946x875

Circling back on this in case you care. I find it interesting. The effective advisory fee on my Morgan Stanley account is 1.4%. So my $113k with them costs me $1,582 annually vs $339/yr if it were invested in VTI (or theoretically $0/yr in a Fidelity Zero fund like FZROX). I thought it was interesting that the broker basically encouraged me to move the money somewhere cheaper in order to be invested in a total market index fund. But why they wouldn’t offer to do that for me? I’m guessing that means Morgan Stanley doesn’t offer discount investing under the flagship brand, since he suggested E-Trade (which they own)?

Historical_Low4458

This is actually a lot of large growth (and overweight in tech specifically) with a little mid cap mixed in. In this case, I do think you are overthinking it, and just simplify it with total market index fund, like FZROX, and then add some VOT if you want some more mid cap.

alijaniel

I'm 24, basically identical income situation and also still living at home. I can't make recommendations since I'm fairly new to this, but here's my current portfolio: \- $7,500 emergency fund - Fidelity SPAXX account earning 4% (7.5k is a bit excessive for my situation, considering going down to 5k) \- $2,000 checking - Fidelity SPAXX account earning 4% \- $15,000 Roth IRA - 60% FZROX (domestic), 40% FZILX (intl.) \- $22,000 taxable brokerage - 60% VTI (domestic), 40% VXUS (intl.) \- $3,000 crypto - 70% BTC, 30% ETH (purely speculative; probably not the greatest idea, but I only use excess budgeted money to fund this account) Something that's been really nice for me is setting up recurring transfers and investments using Fidelity. On the 1st of the month, a portion of my paycheck is sent to checking for expenses, and the rest is divided between taxable and retirement; just enough to max out my Roth by the end of the year. On the 2nd of the month, those funds automatically get invested. I only go in every few months to rebalance if I need to (i.e., maintain the 60/40 ratio) and put excess checking funds into the taxable account and cypto account.

TheHarb81

I put my excess money into FZROX and then sleep soundly at night, the end

alijaniel

If you’re willing to occasionally rebalance, 60/40 VTI/VXUS is objectively better because it’s a 99% match to VT and has lower expense ratios. FZROX/FZILX is even better if you’re willing to stick to Fidelity

HappyCaterpillar2409

FZROX

Machine8851

1% FZROX...

TheHarb81

FZROX

ThenThereWasThisNow

Curious, if you’re already in fidelity, why would you get VOO or VTI vs like FZROX ? the later two tracks the same portfolio minus 0.31% fee on Vanguard?

AlertThinker

Buy SPDR every month. or FXAIX. Or FZROX.

xiongchiamiov

There are a lot of different things going on here, without any specific question that I can see. So I'm going to just comment on things. > Wife and I invest $36k a year between our two retirement accounts (work) and 2 Roth IRA’s (max). My TSP and IRA is essentially 100% S&P 500 bc I’m in my low 20s. I would diversify that to avoid single country risk, personally. > Wife is late 20s and is a mix between S&P 500 and a target fund set for 2055. (default). That's going to bring her overweight to US large cap, since the TDF is assuming it is the only investment. > Our IRA’s are FXIAX 99% and 1% FZROX And even more US bias here. > Somehow she is up 14% on the year in her 403b, but didn’t know if target funds are the move? The expense ratios are somewhat high IMO. Six months of performance is useless data for longterm investing. You care about how these asset classes have performed for _decades_. Or if you're not going to build your own portfolio, just stop looking at performance of this account at all. How high is the expense ratio? How high are the alternatives? How long do you expect she'll stay at this employer? Sometimes it doesn't matter that much because it'll be only a few years and then you roll it over into a better plan. > Could invest more but we also want to live our lives lol. Just curious on what else I could be doing? I would suggest picking up a copy or two of the book Money for Couples and working through it together. It's not going to be quick; it is going to be work. But it will help you figure out direction, together. > HSA could be useful but I don’t pay for healthcare at all and should be covered for life (along with wife). Even if this is true, an HSA will act like a traditional IRA if you wait to withdraw until 65. > We have around $100k saved up and will continue to save here and there, as we do want to buy a house. Good. > No kids, no real plans for them either, still young tho. I would recommend that the two of you decide whether or not you want kids, regardless of _when_ that would happen. In fact, I recommend that before getting married because it's such a big important question, but we can only change the future. > Only debt is my wife’s car, $32k left. Depending on the rate of that, you may want to prioritize paying it off before doing some of your retirement savings: https://www.reddit.com/r/personalfinance/wiki/commontopics/ > May assume more debt, as I am eyeing a new Prius for longevity. I would recommend instead creating a "sinking fund". The way this works is you open a new bank account (I do this at our credit union because it takes only a few minutes), name it "prius fund", set up the automatic transfers into it as if you're paying for the car, and then once you have the cash, buy it. Then you don't pay any interest and don't get yourself trapped into more debt. > EDIT: I have a taxable brokerage account with $1k in it, but I’m not even sure why. It’s mostly ITOT for diversity and for tax benefits (I heard?). Decide if this money is part of retirement money, or house, or car, or school, or whatever, and then act on it accordingly.

ThePushaZeke

My opinion: Yes to mutual funds or ETF’s No to anything to prioritizes high dividend payments (where does this money come from? Are you as a shareholder basically just diluting/decreasing your stack just to be paid your portion of the money back?) VT is a really good single fund option VTI/VXUS is a really good 2 fund option More risk tolerance or want to add your own spin? Then maybe add some spice with factor-based ETF’s like value/growth or large/small cap (AVUV is a personal fav). There’s also maybe a specific industries or types assets you want to hold, such as real estate or crypto or precious metals. Nothing wrong with that but it’s an entirely different game than buying LOW COT broad index funds. My top rules: 1. Diversify well 2. No leverage (or leveraged ETFs) Note: fidelity has some great ZERO expense ratio funds that are well diversified FZROX is one of them! Good luck!

InvisibleEar

FZROX is (very slightly) one of the best possible investments because it's the total US market with no expense ratio. The downside of mutual funds only trading at the end of the day doesn't make a difference when you're slowly accumulating. Make sure you're doing this in a Roth IRA if possible.

InvisibleEar

I like Fidelity but it doesn't super matter. You can put any amount of money at a time into mutual funds like FXAIX, FZROX, FZILX or buy fractional shares of ETFs (slightly more of a hassle) like IVV, ITOT, IXUS.

Early_Apple_4142

My Roth is at 55k now and I do about half VOO/other sort of whole market stuff per year. VOO, FZROX, VTI, BRKB, QQQM are cumulatively right at half. The other half is spread out in the same handful of individual stocks that I've had the whole time. Most of your blue chip stuff, Amazon, Apple, Wells Fargo, Walmart, Coke, Facebook, that sort of stuff. I'll continue to add to the individual positions on a yearly basis but again about half goes into index funds. I don't see branching out or changing my methodology as I have out run the market for the last 5 years so I'll just keep it rolling until the indexes start beating me. I don't do anything obscure it's more of just bulking up on what are usually the top 10 in the indexes and overweighting those even more anyway.

DeeDee_Z

No reason not to use exactly the same investment advice as every other person who pops up here with a variant of the same question: 1) Fidelity's S&P500 tracker and chill; OR 2) Your brokerage's Total Market fund (FZROX for Fidelity).

Ok_Magician5303

You're off to a great start by taking advantage of your 401k, especially with a 4% employer match—that's free money and a solid foundation. Your fund choices show you're aiming for a socially responsible and globally diversified approach. Here's a quick breakdown of your allocation: Parnassus Core Equity (45%): Strong choice for a large-cap, ESG-aligned U.S. fund. It’s actively managed, so fees might be higher, but it has a solid long-term track record. EuroPacific Growth (35%): Good for international exposure, especially in developed markets. Keep in mind it’s also actively managed and can be volatile, but it balances your domestic-heavy IRA. Impax Small Cap (20%): Adds growth potential and diversity. Small caps can be more volatile but offer higher upside over time. Since you're already in Fidelity index funds (FZROX, FZILX) with your IRA, this mix adds active management and sector diversity. You're also staying away from bonds for now, which makes sense with a long time horizon and rising-rate concerns, but consider adding some in the future for stability as your portfolio grows. Overall, this looks like a well-thought-out allocation for a first 401k. Keep an eye on fund fees and re-evaluate annually. Good job getting started.

throwawayainteasy

>im trying to build wealth Statistically your best bet is to put your $3K, plus anything else you can spare over time, into a low cost, passive, broad market index fund. Something like ITOT/FZROX if you're with Fidelity or VTI/VTSAX if you're with Vanguard (other large brokers have their own equivalents). Trading individual stocks is much higher risk/reward. Doing the above is the most certain path to building wealth over the long term. Trading stocks/options can be very profitable, but the vast majority of people doing it fail to beat indexing. Index investing is slower, but it *will work* (assuming modern society as we know it doesn't collapse or the world markets turn into Japan's). If you're gonna go for option 2, the long-term strategy is to research companies and find decent small-to-mid sized ones you like for whatever reason and invest in them. For example, in the active portion of my portfolio, I'm banking on the changes to NASA's funding/operations to massively benefit contractors in the future. I'm holding decent amounts of BKSY and LUNR as they provide relatively niche services that I'm assuming are either going to either directly disproportionately benefit from a push to privatize space in the future, or they're going to get purchased by one of the bigger space companies (SpaceX, Blue Origin) who want to start providing NASA with the sorts of services they offer. I could have gone with RKLB, but I think they're pretty significantly overbought already and aren't as likely to see a big return (essentially a big increase in revenue for them has already been priced-in over the last year). Am I right? Maybe, and if I am I could see big returns. Will I be wrong? Also maybe, and even if I'm not wrong in an absolute sense my timing could be off such that by the time those tickers give be big returns, they could lag behind the overall return of the market if I had just put that money into ITOT instead. Similarly, I have a solid position in EUAD--an air defense ETF tracking European defense companies. I antipated a big buildup in EU military capabilities with the US being less of a solid NATO partner, so I made a bet accordingly. I'm up vs the market this year, but will I be over the next 5-10 years? Maybe, maybe not. That's why generally I keep 95% of my portfolio in index funds and bonds. Only 1-5% are active bets (ie, picking individual stocks to hold or options to buy/sell).

Rob1iam

Fidelity has been offering the same for years with their zero expense rate index mutual funds like FZROX. They don’t track the exact index that the mainstream funds do, they use a proprietary index to avoid having to pay licensing fees. The difference in composition and performance is so small it would never matter long term anyway. These products are loss leaders to get people to transfer to their brokerage platform. Fidelity’s zero funds are only available to fidelity users. l would imagine if E trade is offering zero expense index funds, it would be the same story.

spacefem

This would drive me crazy having little accounts here and there to remember - what do you mean you can’t withdraw it? Sure you can, it’s your money right? FZROX would be the second easiest thing.

TrashPanda_924

FXAIX is Fidelity’s S&P 500 fund. I would keep it but begin to accumulate FZROX which is their total market fund. You might benefit from checking out r/Bogleheads.

GaylrdFocker

>for some reason Because Fidelity has their own mutual funds. Every broker charges fees for buying a mutual fund that isn't theirs. VOO is fine, but can do FXAIX (their S&P500 fund) or FZROX (zero fee total us market fund) if you want a mutual fund.

Huge-Truck8207

Congrats on graduating! That’s an amazing gift from your grandma—and a smart one too. If you’re thinking long-term (20+ years), putting that $5,000 into a low-cost broad-market index fund is one of the best moves you can make. A few great options people often recommend: • Vanguard Total Stock Market Index Fund (VTSAX or VTI) – gives you exposure to the entire U.S. market • Vanguard S&P 500 ETF (VOO) – tracks the top 500 U.S. companies • Fidelity ZERO Total Market Index Fund (FZROX) – no fees, great for beginners • Schwab U.S. Broad Market ETF (SCHB) – another low-fee broad-market choice If you want a bit of diversification, you could consider: • 70% in a U.S. index fund (like VTI or VOO) • 20% in an international index fund (like VXUS or VEU) • 10% in a bond ETF (like BND) or high-yield savings/CD if you want a bit of stability Set it and forget it—with automatic reinvestment—and you’ll be thanking Grandma big time in 20 years. Also: if you’re using a Roth IRA for this (assuming you’re eligible), the long-term tax benefits could be huge. Whatever you choose, the key is starting early and sticking with it—and you’re already doing both. You’re way ahead of the game.

InvisibleEar

You could also do FZROX and FZILX but the difference probably doesn't matter.

Cruian

No financial penalty from Fidelity, just that they would force you to sell FZROX (and any FZILX, FNILX, and FZIPX) before moving. This isn't an issue in tax advantaged accounts like IRAs, as you'd just move the cash and buy in at the new brokerage.

Cruian

>Many years ago I rolled over some 401k funds into FDCAX and FDGRX. They seem to have significantly outperformed FZROX over the last 10 years Impossible, as FZROX only came out in 2018.

PHL1365

Many years ago I rolled over some 401k funds into FDCAX and FDGRX. They seem to have significantly outperformed FZROX over the last 10 years. I presume the historical returns included the fund expenses. 6 months ago, I moved half of my IRA from Fidelity to Schwab. I was able to stay in those funds without any sales charges or fees. If I bought more, then Schwab might charge some fees, I think. I don't know if FZROX would have transferred as easily.

logisticalgummy

I’m 100% FZROX

a1esso

FZROX isn’t talked about as much because it’s only available to Fidelity customers—but yes, the zero-fee is real. It’s Fidelity’s way to attract long-term investors to their platform. But you cant take with you if you leave Fidelity, so be aware

markeyjo

The AI I’m consulting told me to go almost exactly that lol. How come I don’t hear about FZROX more? No fees sounds like a lie somehow

Queasy-Ad727

Thoughts/advice on my wife's Roth IRA portfolio allocation. 70/30 - $FZROX/$FZILX Fidelity Total U.S. Stock Market / Fidelity Total International

hxrris23

It looks like people have already hashed out all of the reasons for why, so I’ll just add that if you really want to avoid paying an expense ratio you should consider FZROX. There is no expense ratio and being a total market index it gives you additional diversification over just buying the S&P500.

No-Acanthisitta7930

FZROX man. Low cost, total market index fund with no expense ratio.

One-Comfort-5534

I suppose the only real fear of lump summing it is that this is the top and there’s destined to be some pullback along the next X months. I’m torn on just doing it all at once. As far as my portfolio goes 401k 11 percent in a 2055 target date fund Max my ROTH IRA annually. All invested in FZROX Real estate portfolio that is very cash flow positive 50k in HYSA 20k left over to do with as I please but don’t want to be super hands on with stocks.

frosti_austi

**Looking for dividend funds/ETFS...** * 40 year old, currently living in Southeast Asia. * I do not currently have a paying job. * I want $2,500 in passive monthly income. * I receive my only income through rent \~$1,600 net monthly. I paid $370,000 in cash for a condo in 2022. It's probably only worth about $400-425,000 at this moment. The ROI is bad. * I have zero debt. I want to sell the condo and re-invest into dividend funds with a goal of getting $2,500 a month from dividends, after the sale of the property. Let's assume I will have $400,000 after the sale (I'm a realtor). I have $200,000 in other investments (50% between FTEC, FZROX, QQQ, FNILX, SCHG, FNCMX, ITOT) which I don't draw on for living expenses, but I don't mind reallocating. * What's the initial capital needed and selection of funds/etfs/stocks to get $2,500 in passive income after 2 months?

Dalewyn

>- 3.4k in my Roth IRA (Just started). Aggressively invested in a split between 6 ETF's: FBGRX, FBIOX, FOCPX, FSCSX, FSELX, and FSPTX. Would you be opposed to just investing simply in FZROX (Fidelity Zero Total Market Index Fund) instead? Do you have particular opinions in your investments rather than just buying the whole hay stack? >My main question is should I pause contribution to the Roth IRA to accelerate the home buying process? Roth IRA contributions can be withdrawn at any time for any reason without penalty, so if you really want to you can meet halfway and contribute to your Roth IRA as before and then pull out the contributions you made when you buy the house. You'll get to at least enjoy the potential growth free of tax. That being said though, you should look to reducing your general expenditure and/or increasing your income first. Make a budget, as the canned saying goes.

DigitalDensity

As someone investing for retirement and looking at 40+ years, I’m just gonna continue to buy my FZROX and FZILX and not worry about anything but continuing to DCA

India_ofcw8BG

I went from holding mutual funds like FZROX to holding SPY, VT and VOO. I sell and buy whenever I feel like now. It's not investing, I know. I'm keeping a close eye on presidential ramblings because that is what seems to be moving the market. I'm at -2% for the year while S&P 500 is -5%. I don't know if this stress is worth it. haha

ac106

Fidelity is pretty awesome as a [one stop shop](https://www.bogleheads.org/wiki/Fidelity:_one_stop_shop) They have excellent 24 hr customer service. The app is good. Better than Vanguard. Website is very good. The Cash Management Account is great as combo high yield savings/checking/BillPay account with check writing and a debit card. All ATM fees are refunded. The auto liquidation feature allows you to use a treasury money market (FDLXX) as a defacto core position (no state tax). You can also buy CDs with a CMA. Allows auto buys of fractional ETFs. Offers 529s, HSAs, DAFs etc. Fidelity Crypto allows direct custody and transfers of crypto. Good fixed income tools. Fidelity credit card is unlimited 2% if deposited into core position Local branches Fee free mutual funds. (FZROX, FZIPX, FNILX, FZILX) r/fidelityinvestments & r/fidelitycrypto are staffed by actual Fidelity employees who provide customer support. Cons: They put **very** long holds (10 **business** days/2 weeks) when you pull funds from another bank. If you push, it’s availible immediately or within a day. No Zelle No Plaid for linking ACH

StatisticalMan

Yes. Now it won't be automatically reported by the brokerage and very likely the IRS would never find out unless you were audited but yes absolutely wash sales can occur across accounts. Worse a wash sale created by a purchase (not sale) in a tax sheltered account doesn't delay the tax deduction it effectively erases it. For this reason a very simple workaround is just NEVER own the same assets in both taxable and tax sheltered accounts. For example I hold VTI + VXUS in taxable and FZROX in Roth IRA. Very similar assets but not substantially identical and thus by turning off dividend reinvestment in taxable it is impossible for a wash sale to happen short of me manually buying and selling.

ozovzk

I recently started a Roth IRA and have been doing 60% FZROX, 20% VXUS, 10% AVUV, 10% AVDV. Are the small caps worth it or should I simplify to just the first two? Or any other recs in general

Gunnar0410

So would I just sell all my current holdings in FXKAX and FXAIX and disregard my losses and then put it all in FZROX

Gunnar0410

Okay thank you! As people have mentioned should I own a smaller percentage of an international market fund along with FZROX?

DaemonTargaryen2024

[FZROX](https://fundresearch.fidelity.com/mutual-funds/composition/31635T708) is already nearly 30% tech. So same answer as above: unless you have a conscious reason for tilting heavier into tech and are okay with risking being wrong, the smarter play for average folks is just to own the whole market, which already includes tech

caashmerr

FSKAX and FZROX are both total market funds, so they are invested in more companies than FXAIX (which is only invested in 500 companie). FXAIX and FZROX are therefore theoretically more diversified and a better investment If you plan on staying with Fidelity, go with FZROX. If you think you might switch brokers in the future, go with FSKAX.

DaemonTargaryen2024

If you take the r/bogleheads approach you ought to match the global marketplace, so have 65% FZROX and 35% international, either FZILX or VXUS or something. But investing is a personal experience so if you’d rather go 90/10 that’s fine too. Just as long as you know you’re betting on the US to constantly outperform the rest of the world, which has been a winning bet the past 15 years, but anyone’s guess for the next 15+

Gunnar0410

Which fund would you recommend, FSKAX and FXAIX are basically the same. I’ve heard FZROX is best for Roth because of the tax free benefits

Gunnar0410

So about 90% into FZROX and 10% International funds?

BiblicalElder

It doesn't look like you have exposure to international stocks I like Fidelity as a platform, but I recommend Vanguard ETFs for you, as your expense ratio may end up being much lower. Fidelity is using these zero fee products to attract new customers, and then inevitably they end up in higher fee products in the longer term. Here is a potential allocation, since you favor US * 75% VTI (US equities) , or FZROX * 25% VXUS (international equities) * BND (when you turn 21, start adding 1% each year to this allocation) If it feels overwhelming, start with FRBDX, the 2070 target date fund Also, spread out your contributions over time, once a year might be too infrequent

DaemonTargaryen2024

Good start. A little redundant but not “bad” - FZROX is the total US stock market - FSKAK is *also* the total US stock market - FXAIX is the S&P 500 which comelroses 80% of the total US market So at minimum you can exchange FSKAK into FZROX. Arguably you should drop FXAIX too. And there’s an argument for some international stocks too. The US is ~65% of the world market cap, so there’s 35% of the marketplace you’re not visiting.

Natural-Cut-9601

This is extremely helpful! I use the FZROX as my Roth IRA and FXIAX and the others in my personal brokerage. So you’d say it’s best to offload that gold and invest it elsewhere and make back off on the two tech heavy funds and diversify out more. Since my target range is 25 plus years do you suggest any other funds?