FZROX

Metalsonicblackjesus

Hey I started with a portfolio very similar to yours but then I realized that at a young age (20s-30s), it does not make sense to hold Bonds and the international stuff really isnt helping much either. So I took my portfolio that looked like yours and condensed it down into this: Brokerage: ITOT/VTI: 80% CASH: 15% (park it in a high yield thing like money market or USFR ETF) Play money: 5% for taking riskier bets for fun Roth IRA: FZROX - 80% FZILX - 20% Once you get into your late 40s/50s, then you can start thinking about Bonds again. But at your age, I would skip it entirely. A lot of people would say just get rid of the international stuff entirely. I did in my Brokerage account, but I felt safer keeping some FZILX in my Roth just in case there are a few years where international beats US. At least I will have some exposure. It's not like it will be a huge switch, I cant imagine international will completely destroy US, but if it slightly outperforms a few years then it will feel good having that little bit of FZILX. And if it never outperforms US, at least I only have 20%.

greenpride32

I wouldn't go with BND at your age; you have plenty of time to ride out the ups and downs of growth equities. VXUS and FZILX underperform VTI and FZROX in the long run. The reason for this is the US has the largest economy and attracts the most capital investment (which helps to perpetuate the cycle). Also most of the leading US companies operate on a global scale, so it's not as though you only invested in one domestic economy. Over the course of the long run, the difference in CAGR will make a very meaningful difference in total return. My goal in investment is to grow my net worth as much as possible by making selections that have a proven track record; everything else (diversity) is secondary. You can compare VTI (US), VT (World including US) and VXUS (World minus US) - the more US weight the better the long term performance.

Kyzp

I get the ETF recommendations, but I buy Fidelity Index funds. They settle at the end of the day so that leaves you never worrying about share prices. Fidelity has very low expense ratios \[0% or 1.5%\] depending on if you want to invest in their proprietary funds or their tracking funds. My favorites are: FZROX; FSKAX; FXAIX; FNILX; and FZILX. I mostly invest in FZROX and FSKAX to get access to the total market in different forms. I then use FZILX for my international allocation. I like on a down day, I know where the fund will settle and I just put in a buy order right before closing. Super simple. Fidelity's website and App are the best in the business IMHO.

InvestingNerd2020

" I will Teach you how to be rich" by Ramit Sethi. Excellent book. Brokers: Either Fidelity or Charles Schwab. Investing operations for those earning less than $153k per year (including bonuses): - Contribute to your 401k/403B plan pre-tax up to the employer match. Usually 3-6%. - Build up to 3 months worth of your routine monthly survival income in a high yield savings account (HYSA) or Treasury fund within a taxable brokerage account. Make sure it has 3% or higher interest. This will be emergency savings. - After building up emergency savings, then open a Roth Individual Retirement Account (Roth IRA). It offers tax free retirement gains. Invest 80% Total USA fund and 20% International. For Fidelity that would be FZROX and FZILX. For Schwab that would be SWTSX and SWISX.

InvestingNerd2020

Devote 3 months to build up some emergency savings in a high yield savings account (HYSA). The easiest way to do this is to open a Capital One savings account with 3% interest. They also have a $250 checking account bonus if you make their 360 checking your main checking account. After building up 3 months of your routine monthly spending, open an account with Fidelity. Invest into a Roth Individual retirement account (Roth IRA) and start investing into FZROX and FTEC. You will need growth to make up for lost time, so the FTEC ETF will cover that until you turn 57. Setup automatic investing, so you don't have to remember to invest every bi-week or month. Focus on staying employed and don't stop investing until your late 50s. \- 70% FZROX (Total USA index mutual fund). This fund has a zero-expense ratio; which is extremely rare and great for consumers. \- 30% FTEC (Information technology Sector). This is an ETF.

InvestingNerd2020

Since you are living with your parents, focus on these things: \- Getting an education or trade skills. \- Build up emergency savings for your routine monthly spending (groceries/restaurants, car gas, car insurance, and cellphone bill). Put it in a high yield savings account (HYSA) or Treasury fund at Fidelity or Charles Schwab. You will need a taxable brokerage account for the Treasury fund. FDLXX with Fidelity or SNSXX with Charles Schwab. HYSA examples are Capital One, Amex, Marcus, and Wealthfront. Make sure it has 3% interest or more. \- After building up your emergency savings fund, start to invest into a Roth IRA. Again, either Fidelity or Charles Schwab. Within the Roth IRA, invest into a Total USA index mutual fund and set to auto invest after the initial investment. For Fidelity, FZROX. For Charles Schwab, SWTSX. The gains will be tax free in retirement. You just cannot pull them out until you are 59.5 years old. If you liquidate the funds and pull the money out before 59.5 years old, you will get hit with a 10% fee to the IRS.

Stock-Ad-4796

They're nearly identical so the overlap isnt really a problem. switching FZROX to something like FZILX or a bond fund for diversification makes more sense than worrying about redundancy between two funds tracking almost the same index.

Jealous_Bookkeeper20

That's because FZROX holds about 1,300 fewer small and micro caps. When mega-caps lead the market, it gets a slight relative boost from not holding those dragging names.

Naval_AV8R

There is no reason to fret over having both since they are in different account types. If you want a total market index fund in your Roth IRA, FZROX is a fine choice. It has slightly outperformed FSKAX. The two funds use slightly different approaches to approximate the total market. FZROX uses Fidelity’s proprietary mix of stocks.

Naval_AV8R

FZROX has slightly outperformed FSKAX.

DoinIt4DaShorteez

If they're the same, then overlap doesn't matter. It doesn't mean you have twice as much of stock X now than you would if you go with one or the other. It may be redundant but unless you want to be in other stuff, so what? If FSKAX is in a regular taxable account, don't sell it to switch to FZROX. If you only want to have to keep one ticker symbol in your head, sell the FZROX in the Roth and buy FSKAX. Unless you they let you do an "exchange" transaction where they sell one and they buy the other one the same day. That's better than you doing a sell and not being able to buy the other one until the next day.

taplar

FZROX is one of Fidelity's zero funds, so they lose some income with the lack of expense, but they hope to over come that by gaining customers. If you are planning to stay with them, no reason not to take advantage of it. FSKAX has a low expense ratio of 0.01%, but that's still not 0%.

Jealous_Bookkeeper20

Both are total market index funds. FZROX is the Fidelity Zero fund with about 2.6k holdings. FSKAX is the standard total market index with around 3.9k holdings. Their performance is almost identical, with a correlation close to 1.0. Overlap doesn't matter here because total market is already the core. To get actual diversification, you'd add international funds or bonds instead of swapping US total market funds. Since FZROX is in your Roth IRA, you can sell it tax free if you ever want to switch brokerages. You can't transfer proprietary Zero funds in kind to another broker, but inside a Roth it's easy to liquidate and move.

InvestingNerd2020

You can create a Roth IRA with Fidelity and invest $50 into their famous FZROX index mutual fund to start. Wait until the move is finished until you do anything else. Between starting a Roth IRA and the move, learn about index mutual funds, ETFs and typical order of investing operations. You can do this via YouTube or Investopedia. Typical investing order of operations: 401k employer match > emergency savings > Roth IRA if eligible > Taxable brokerage account or HSA.

InvisibleEar

FNILX isn't an SPX fund and FZROX isn't a total market fund but they perform basically the same.

sovereign_MD

If you’re willing to lock into a mutual fund for tax-advantaged, go for fidelity’s zero cost funds. FZROX, FZILX etc

TheHarb81

Everything into FZROX, I sleep so much better now

Suspicious-Fish7281

I went with total world market funds. I seek to own all the stocks and not just the 500 biggest US stocks provided by the S&P500. Most of my retirement money is with Fidelity, so specifically FZROX (US) and FZILX (International) in my tax advantaged accounts and FSKAX and FTIHX in my taxable brokerage. Bonds. I hold a bond fund FXNAX now because I am about 3 to 7 years out from retirement and want additional stability. I also want a different asset bucket to sell from in my withdrawal phase in retirement. Bonds historically have a better return than cash and better stability than stocks. Bonds also are mostly negatively correlated with the market. When the market goes down bonds tend to go up (we didn't see this in 08'). That said I am still only 20% bonds and likely won't increase that much. If you are further away from retirement than me then run less to no bonds. If you are risk adverse than run some bonds. I believe that is about all the diversity that you need. Small 1 or 2% hedge with precious metals is fine I guess. Reits are probably okay if you rent but if you own your home you probably already are overexposed to real estate. TIPS have their place as an additional safe income replacement for early retirement. Want to take 1 or 2% of your net worth a pick a single stock or 2 go ahead, have some fun. Don't over complicate it. Professional teams paid millions fail to beat the market by picking. I am not better than them and neither are you. Buy low expense total market funds consistently from a young age and in tax advantaged accounts when possible. Add bonds as your age and risk tolerance changes. It will be boring and slow but you will get there. See r/personalfinance and r/Bogleheads for more information.

GregorSamsanite

That's good news. So many retirement accounts have an S&P 500 component, and this might spare them from being looted. I have some in an S&P 500 index fund, but some others in other indexes with significant overlap that I'm not sure about. Normally they're all similar enough not to think about it too much, but in this corner case it could be a meaningful difference. For example I have FZROX, which uses Fidelity's own proprietary total market index, and it was hard to look up their policy here. I also have some in a direct indexing roboadvisor, which though it's unclear what they'll do by default, they do provide an option for opting out of individual stocks.

InvestingNerd2020

Sadly, no! Don't worry too much about it. Many of us holding any brand Total USA index mutual fund and Total USA ETF will get hit with SpaceX too in our top 10 holdings. Examples: VTI, ITOT, SCHB, FZROX, FKSAX, SWTSX, and VTSAX.

According-Dinner6190

Thank you for your insight, sir. This is what I'm in the mix between and upped the international as what you said. 80% FZROX 20% FZILX Or 70% FXAIX 15% AVUV 15% FZILX

Cruian

>Right now, my Roth IRA holds: Dollar amounts turned into percentages are far more useful than number of shares. >I know some people will point out that FZROX already contains most of the companies in the S&P 500, so there is overlap with FXAIX. It should be basically all, not just most. >However, I've noticed that FXAIX has consistently outperformed FZROX within my portfolio, which is why I'm considering giving it a larger allocation. Recent history (roughly 2010 through now) has largely favored large caps over small, but longer term may paint a different picture: 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/ Notice these all favor small over large. These can show recent-ish history that small caps can indeed over perform large for years at a time: * https://www.callan.com/wp-content/uploads/2018/01/Callan-PeriodicTbl_KeyInd_2018.pdf (PDF) or https://www.callan.com/wp-content/uploads/2020/01/Classic-Periodic-Table.pdf (PDF) or the archived versions if those don't work: http://web.archive.org/web/20201212205954/https://www.callan.com/wp-content/uploads/2018/01/Callan-PeriodicTbl_KeyInd_2018.pdf (PDF) & http://web.archive.org/web/20201205183933/https://www.callan.com/wp-content/uploads/2020/01/Classic-Periodic-Table.pdf (PDF) (Archived copies from Archive.org's Wayback Machine) While small may be the favored end of the size factor, even favored factors can go long periods (15+ years isn't unheard of) out of the spotlight.

TheHarb81

I’m not, 100% into FZROX, I just read WSB for the laughs, I got a family to support I can’t be taking risks that regards here take.

InvestingNerd2020

Yes! I even mentioned it in my post. FZROX is the most popular one. Even ETrade has started to offer their own proprietary Zero expense ratio index mutual funds too (ETTOX). Schwab's SWPPX is at .02% which is insanely low too. SWTSX is 0.03%.

paragonx29

FXAIX would be ok for FZROX. Very small ER as opposed to zero. The former carries a bit of small cap whereas FXAIX is straight S&P 500.

paragonx29

C'mon my man, you're a Fidelity guy. Your 3-fund should be: FZROX / FZILX / FXNAX 0 or low fee!

InvestingNerd2020

Helpful tips: \- Invest into a Target Date fund in your company 401k/403B up to the employer match. Example: The company says they will match 3% of your salary contribution, you invest 3% of your salary pre-taxes. Talk with HR about this. \- Next build emergency savings up to 3 months of your routine monthly spending. This helps you from selling your stock investments when an emergency shows up that need's money. Use a high yield savings account of 2% to 5% depending on the savings market. Capital One is the easiest to start. \- Open a Roth IRA with Fidelity if you are working a blue-collar job after building up your emergency savings. Easiest access and the lowest fees. Invest into FZROX. It is a Total USA index mutual fund with zero expense ratio. They also have good customer service with 24/hours call center. \- Learn about Actively managed mutual funds, Index mutual funds, Index Exchange Traded funds (normal ETFs), and actively managed Exchange Traded funds (Actively managed ETFs). You can read about it on Investopedia. [Index Funds Explained: How They Mirror Market Benchmarks](https://www.investopedia.com/terms/i/indexfund.asp) [ETFs](https://www.investopedia.com/etfs-4427784) Also, avoid day trading. Even people with a master's degree in business and work on this 50 hours per week can't beat a diverse index like the S&P 500 and Total USA market 90% of the time.

Grainger407

I will say this is not financial advice. It’s just what I do as someone who has a relative that’s a VP in WM at fidelity. As a 27 year old. I’ve maxed my Roth since I was 19. I have allocations in various funds through fidelity. Although most of it is in FZROX and FZLIX. 4 other random fidelity funds. I max my 401k every year. And rest of the $$ goes into a taxable brokerage mainly in VOO. But I sprinkle some other money into stocks I believe in. I was a very early adopter in NVDA in 2017 and so far so good. I just push 90% of my investing money into VOO/ FSKAX kinda redundant but. To answer your question. Yes. VTI and VOO are essentially the same thing. It’s kinda redundant as over the last 10 years VOO avg 15.6% and VTI 15.1% returns. I would and do just shove most of my money in VOO and forget it. VTI is a little more diversified as I’m sure you know but ideally you should pick one and stick with it. The returns between the two are marginal. *this is not financial advice* just IMO

Cruian

>VSUX VXUS Other than that: the rest is true. I believe we've seen VTI and FZROX trade places a few times in the past of what has done better since FZROX's inception.

InvestingNerd2020

0% net expense ratio. The only issue I see is lower dividend percentage. 0.5% for ETTOX. FZROX has 0.97%, SWTSX has 1.04%, and VTSAX has 1.05%.

InvestingNerd2020

1) If you are working and earn less than $153k per year, I highly advice opening a Roth IRA and invest a small amount ($50 per month) into a Total USA fund. Do this with one of the big 3 brokers. Those are: Fidelity, Charles Schwab, or Vanguard. Fidelity: FZROX. A Zero expense ratio index mutual fund. Mutual funds (Active or Index) are only good for retirement accounts. Schwab: SWTSX. An Index mutual fund. Vanguard: VTI. It is an index Exchange Traded Fund (ETF). A lot more flexible and transferable than an Index mutual fund, and more tax efficient outside retirement accounts. 2) Build up emergency savings with a high yield savings account online or Treasury Money market fund. Fidelity has FZFXX, Schwab has SNSXX, and Vanguard has the ETF version VBIL. For a high yield savings online, look into Capital One or a local credit Union. Currently around 3%. After building up 3 months of your routine expensives, then go harder into investing in your Roth IRA. The 2026 contribution limit is $7,500 ($625 per month). The IRS sets the limit every November for the next year.

Hydralli

Hi, I’m wanting to change investments from FXAIX to VT in my Roth IRA and was confused about wash sales and wanted to make sure I don’t trigger it. Currently I invest FZROX & FZILX in my HSA and VTI & VXUS in my Taxable weekly for both. Will selling my FXAIX in my Taxable account to buy VT trigger a wash sale as I’m buying similar funds in the other two accounts?

InvestingNerd2020

Assuming you are still eligible for a Roth IRA (Less than $153,000 per year income), follow the following order of operations: A) Max out your Roth IRA contribution ($7,500 per year or $625 per month) at a respectable broker. Fidelity, Charles Schwab, or Vanguard. Anyone will do. Just a style issue. Research via YouTube each and pick the one that resonates with you the most. Keep it simple with a Total USA index mutual fund. FZROX with Fidelity, SWTSX with Charles Schwab, or VTSAX with Vanguard. SoFi offers a Roth IRA with only ETFs. You can use ETF VTI. B) Any money left over ($4,075 per month) split between emergency funds in your HYSA at SoFi and taxable brokerage account. You can continue it with VTI in the taxable brokerage account. An alternative to your emergency fund is SGOV ETF for tax exemption from state income taxes in interest.

InvestingNerd2020

The best plan given your amount of money available to invest is: A) Open a Roth IRA with Fidelity or Charles Schwab and start investing into a Total USA fund. $625 per month in either FZROX with Fidelity or SWTSX with Charles Schwab. B) Open a taxable brokerage account with either one, and invest $1,000 into ETF "SCHB". It is a Total USA ETF. C) Leave the remaining $375 per month in a money market fund for emergency savings in your taxable brokerage account. Either SNSXX with Schwab or FZFXX w Fidelity. Warning ⚠️: It takes 1 business to pull the money out of a Money market fund. For weekend trips to Las Vegas or camping trips, pull it out on a Wednesday just in case. Same best practice for international trips to cash centric countries.

Machine8851

FZROX and FZILX are better because you pay no fees plus they perform a little better due to having less holdings.

InvestingNerd2020

Horrible for someone with 15 years until turning 60. Fire that guy. Just use FZROX at 70% and FZILX at 30%. Replace FZILX in 10 years with SCHD.

MeineGoethe

VT or VTI + VXUS. If you plan to only hold in Fidelity and a non tax account then you can use their 0 fee mutual funds FZROX + FZILX. If you only hold VOO then you’ll miss small/mid cap and international. I personally just hold VT because it’s a simple and covers everything.

Emotional-Power-7242

The asset class allocations are fine. Some of the funds are fine. Some of the funds have high fees, for example the Strategic Advisors funds have a fee of like 0.5%, which is on top of the 1.5% management fee you're already paying. So that part of the portfolio is actually paying a 2% fee. Just to demonstrate the tyranny of compounding fees, a 2% fee on a $50,000 investment over 30 years would come out to ~$90,000. The strategies these guys employ also lead to a high turnover rate, which adds even more fees and even more taxes if the money isn't in a 401k. Investing is simple and there is no reason to pay high fees. For example a portfolio of 50% FZROX and 20% FZLIX would essentially replicate the equities portion of this portfolio, for a whopping 0.0% fee. And those are Fidelity funds. For the bonds portion you could just do FSNAX, another Fidelity fund that charges a 0.025% fee. They will tell you that their plan will beat the market. It would have to beat the market by more than 2% annually to make it worth the fees. It will not beat the market by 2% annually. It is far more likely to underperform the market than beat it by 2%. But probably it will more or less perform the same as the market. So just buy the whole market and don't pay fees. FZROX is the entire US equities market, FZILX is the entire international equities market, FZNAX is the entire US bond market. A great option is to simply buy a low fee target retirement date fund, such as FIOFX (also from Fidelity). This is a fund for someone planning to retire in 2045. It charges a 0.12% fee. It is currently at 53% US equities/37% international equities/10% bonds. This is sort of a catch-all risk allocation for somebody 20 years from retirement. If you are planning on retiring sooner, or if you just would prefer a higher bond allocation, take FBIFX or FIHFX. FBIHX is for someone retiring in 2040 and is currently 47% US equities/33% international equities/20% bonds. FIHFX is for someone retiring in 2035 and is currently 38% US equities/27% international equities/35% bonds. They all move heavier in bonds as you get closer to retirement, so FIOHX will look like FBIHX in 5 years and then like FIHFX in 10 years. They're all the same fund essentially just for different tome horizons. Another option would be Wellington Fund from Vanguard, a 65% equities/35% bond fund from Vanguard. This is an actively managed fund with professional managers making decisions instead of following an index, if that makes you more comfortable. It has a 100 year track record of great performance, and for investments of over $50,000 charges a 0.16% fee. This fund does not adjust bond allocation over time, so you would maybe want to reasses risk tolerance after say 10 years, which you can do by talking to an advisor who charges one time for a consultation rather than managing for a fee. Essentially, a 1.5% fee is fucking crazy. And recommending funds charging 0.5% fees is just bad advice. This is extremely common with managers though, if you try a different manager they'll basically do the same thing. Just buy the market, yourself, using uncomplicated investment vehicles you're comfortable with, for very low fees. I would only recommend an active manager if you think you're the kind of person who will see on the news that the market crashed, freak out and sell everything. But even then I'd look for a manager who builds you a simple, low fee, low turnover portfolio.

NatureBoyJ1

Or FZROX for 0% fee. (FZROX has the disadvantage that you must sell it if you move to another brokerage. Not a problem in an IRA or pre-tax retirement fund, but not good for a standard brokerage account.)

InvestingNerd2020

Index mutual funds are fine, and don't have front-end nor back-end fees. Examples: \- VTSAX, SWTSX, or FZROX. However, ETFs are the better choice for taxable brokerage accounts.

InvestingNerd2020

Only issue is the Target Date fund. Too bond heavy for you to catch up. Recommendation: 70% Total USA and 30% Large cap growth in your IRA until you turn 55 years old. Reevaluate at 55 for safer choices. - FZROX 70% - FSPGX 30%.

sky905

Thanks i didn’t run the actual numbers as i may have focused too much on past performance and metrics but this is a good tip and 40% tech compared to 30% in FZROX is in line with what i was intending with this distribution.

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