FZROX
FIDELITY ZERO TOTAL MARKET INDEX FUND
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Any reason not to swap to a cheaper index fund within my ROTH IRA?
Okay Portfolio Going Into 2024? [23 YOLD Looking for long term investments]
Can't buy FZROX on 401k account (This fund is closed to new investors)
Should a Roth IRA make use of a Large Cap Growth fund in your 20s?
Best aggressive investment strategy/fund type (long-time horizon)
The "average" returns of an index fund aren't average at all
Should I invest in VTI or FZROX as my choice of etf?
36 years old - $1.35MM Net Worth - How would you optimize my wealth?
I just turned 17 and have made around 15000 dollars working as a server. This is mostly saved. Any recommendations investing?
Fidelity's Limited Automatic Investing Options vs Having More Accounts
30 y.o what can I do to better my "portfolio" for retirement
Early 40's, Recent Windfall, heavy on annuities - Looking for advice on the below
Why is FZROX $14.60 and FSKAX $115.64 if they track the same index?
Want to Roll Over Current Index Funds into FZROX/FZILX - Thoughts?
Thoughts on this Breakout of Fidelity funds? - Goal is fairly aggressive growth
Thoughts on this Breakout of Fidelity funds? - Goal is fairly aggressive growth
3-Fund Portfolio Comparison: Vanguard, Schwab, Fidelity
What is exactly meant when people say "IRA grows tax free"?
Advice for an overwhelmed 18-year-old! (Roth IRA's and more!)
Does it make sense to hold the lower ticker price of two similar funds in order to capitalize on greater dividends?
Are fidelity Zero funds really a good deal? There’s gotta be some hidden costs, right?
Portfolio suggestions for Roth that I can no longer contribute to
Could Fidelity be hiding the fees of its zero ER funds?
My Fidelity brokerage is invested in FZROX. Should I liquidate all of it?
What's the point of a bond fund if the NAV still fluctuates so much? (versus owning individual bonds)
Holding FXAIX and FZROX in my taxable brokerage. Any point in adding or switching to VOO/VTI?
How to divide my Fidelity zero index funds?
Using Fidelity Zero expense ratio mutual funds as a cash like position for trading
Help with Benchmarking Portfolio Against S&P 500 factoring in Dividends (SPY vs SPXTR)
Should I see my FZROX shares and put them into its equivalent ETF instead?
Mentions
Just a little reality check on the endless NVDA posts - if you own FZROX - and unless you are a day trader you should - it holds 7.46% NVDA.
Hi guys, I made a Fidelity roth ira account recently. I am planning to do automatic monthly contributions and invest that money each month. What is the best portfolio I can have for investing in that account? I am 22 years old and just started my first full time job a few months ago. I want to do long term investing. At the moment, I'm inching towrds investing in index funds within the roth ira (70% into FZROX and 30% into FZILX). Or do you think I should invest in ETFs instead?
Money management tips: [https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/) Book suggestion: I Will Teach You To Be Rich by Ramit Sethi You will have plenty of time to invest after you graduate from college, right now you are investing in your education so you can get a well paying career. Stack as much cash as you can now in a HYSA. Cash is king for a new college graduate that may have a lot of expenses coming up (furniture, clothing for work, car, deposits for an apartment, etc). If you can graduate college with little to no debt and a good cash amount, you will be ahead of the game. When you are ready to invest I would open a Roth IRA with Fidelity and just do a simple portfolio: 80% Fidelity Zero Total Market Index Fund (FZROX) 20% Fidelity Zero International Index Fund (FZILX) [https://www.fidelity.com/mutual-funds/investing-ideas/index-funds](https://www.fidelity.com/mutual-funds/investing-ideas/index-funds) The above is a global portfolio that includes large caps stocks (like those in the S&P 500), mid and small cap stocks, growth and value stocks, dividend stocks, tech stocks, international stocks. All that to say you would not need to add any other fund.
VTSAX or FZROX. You don’t have to know anything about them other than they are total market index funds.
Mostly either RSSB or FZROX + FZILX (these 2 in a ratio that is within reasonable rounding range of VT: I believe VT is currently about 36 or 37% international, so I aim for FZILX to be between 35 and 40%).
Do you hold SPY, VTI, VOO, FZROX (or anything thousand of similar S&P500 or US total stock market indexes)? If so you are invested in PLTR.
In taxable accounts there are concerns with capital gains passed on from index funds, dividends passed on from index funds, and capital gains from selling index funds. Index funds can be mutual funds or ETF’s. ETF’s are generally considered more tax efficient, but a stock index mutual fund can be just as tax efficient as an ETF. To be most tax efficient in a taxable account, I recommend low turnover, low cost, and low yield index funds \[an example is Fidelity’s FZROX total stock market that has only a 1% turnover ratio\]. With bond index funds, I would recommend a municipal/state specific fund to reduce your tax burden. Vanguard has a 50/50 tax-managed balance index fund that I invest in. It’s specifically put together to be tax efficient. You can do it yourself, especially if your state of residence has a bond fund available, buy pairing a tax efficient index fund with your state specific bond fund. The Vanguard 50/50 ticker is VTMFX.
1. Open a Roth IRA 2. Deposit whatever amount you can. 3. Buy FZROX 4. Buy $25 more, every week, forever 5. Increase amount whenever you’ve got a little extra That’s it. At your age, you don’t have to do any more than that to retire comfortably.
Fidelity. FZROX. Keep programming and never leave home. Retire at 35. Enjoy your life. Don't join us working stiffs. It's scary out here.
>With stocks at all time highs and probably overvalued and an AI bubble forming, am I crazy If you really believed this, then why aren't you liquidating your FZROX SCHD QQQM? They would bound to tank if such event happened, especially QQQM. If I only had a penny for every "I have $1m in the stock market today, but it's way overvalued and bound to tank, how should I invest this new $100k cash I have available?". I'd be asking "what should I do with the 1m invested?".
I don’t, I just FZROX and chill, I use all the free time not worrying about stocks to work on my physical health (lost 100lb).
I don’t, I just FZROX and chill, I use all the free time not worrying about stocks to work on my physical health (lost 100lb).
Fidelity is perfect for your son - they have zero-fee index funds (FZROX, FXAIX), great app for individual stock trading if he wants that, easy Roth IRA setup, and excellent customer service for beginners. Just clarify: a "Roth IRA" is already the account type (can't have both "traditional" and "Roth" versions of a Roth) - you probably mean he should max the Roth IRA ($7k/year) and maybe open a regular taxable brokerage account for additional investing beyond that limit. At $9-11k/month with no benefits, he should be socking away at least $2-3k/month - max that Roth IRA immediately, then put the rest in a taxable account with boring index funds like FXAIX (80-90%) and let him play with individual stocks (10-20%) so he scratches that itch without blowing up. His age is an insane advantage - every dollar he invests now is worth like $10-20 at retirement!
Ok. With that amount of money I would invest it all in index funds like VOO or FZROX if you have Fidelity. I am not an advisor. People typically sock away hundreds of thousands in index funds and then “play” with single digit thousands in companies they are *guessing* will outperform. You seem to be doing it backwards, and I gently suggest you rethink that.
Just look up FZROX for 1, 5 & 10 year returns. It's a total market index fund. It replicates the total returns of the US stock market to a very close degree. You don't invest in Schwab or Fidelity. You use those brokerages to invest into index funds that are diversified and mimic the entire US stock market.
Nope! Not for index funds. In fact FZROX is 100% free. Not even expense ratios. Too good to be true? It's because it's a loss leader for Fidelity hoping you will pay for their other services. You do not have to purchase any of their other services. Fidelity, Schwab and Vanguard are the 3 most recommended brokerages.
Been there done that, bought $20k of FZROX on Friday
Fidelity All Day. Why: Great Funds you can't get off platform like zero fees FZROX. Perhaps the best actively managed growth fund in Fidelity Contrafund. It will grow with you: Want an annuity with for 30 basis points and no surrender fees: Fidelity has that. Cash management, yes. Kids accout: Yes. Access to Pre-IPO venture Capital investments: Yes or you are an accredited investor. Sweep Account SPAXX pays 3.8% on cash.. what does Schwab pay. Local branches. Great customer service. Robust, well organized website.
100% DCA into FZROX, the same thing we do every night Pinky
Posted. Largest absolute gains come from FZROX, ITOT, and FZILX, which are broad index ETFs. Next biggest winners are NVDA and IBIT, both stocks and calls/leaps
Money management tips: [https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/) I keep a Roth IRA at Fidelity (you must have earned income from a job to invest in a Roth IRA) and an individual brokerage account at Robinhood, my RH account is just for my "fun account" where I invest in individual stocks (I invest only a small portion of my money into the fun account). My Roth IRA I invest in broad based index funds (like FZROX and FZILX). [https://www.fidelity.com/mutual-funds/investing-ideas/index-funds](https://www.fidelity.com/mutual-funds/investing-ideas/index-funds)
Save as much money as you can, and consistently invest in passive index funds like VOO, VTI, FZROX, regardless of whether the market is high or low. Set it, and forget it until 18 years from now.
Why is the $8k in FXAIX but the $46k in VOO, which is the same index? This is inside a retirement account so the tax inefficiency of capital gains distribution of mutual funds is moot. Keep it simple. Since you want growth, skip SCHD and just stick with one growth index fund. And since you have Fidelity, consider their Zero funds instead, like FNILX or FZROX. The amount to convert depends on your taxable income. If you have plenty of room in the 12% bracket and you have time, then convert only up to the top of the bracket. If you're solidly in the 22% bracket then there's not much tax savings left so you might as well use up the 22% and 24%.
My advice... Low to no fee S&P 500 like FXAIX or broader market exposure like FZROX. GLD or GLDM for holding value of investments (5-10%). Buy in a routine manner when markets are up or down. Dollar cost averaging. Use an S&P 500 calculator to see what to expect over time. It keeps you focused. Keep 10% of your wealth for rainy day fund. Buy cars you can afford to buy with cash. Pay off your credit card every month (when eligible). Develop a budget and monitor your monthly spending against it. Live within your means. Don't lend friends or family money. Don't share your wealth information with them. Focus on developing marketable skills. Do this for 10+ years to develop good habits and you'll likely be on a path to retire early. Just my 2 cents. I'm not a financial planner or a licensed broker.
I've been investing for a bit over a year now with a combination of FXIAX & FBGRX. IRA is in FZROX & FZILX; like another commentor
FXAIX is great, I prefer a combination of FZROX and FZILX in my IRA, can't port them to other brokers if you transfer from Fidelity though.
Key Considerations for Taxable Accounts for Teens Tax Efficiency: ETFs (VTI) > Mutual Funds (FZROX). ETFs rarely generate "capital gains distributions," resulting in lower long-term tax liabilities in a taxable account. Flexibility: ETFs can be easily transferred between different brokerage firms and are easy to sell. FZROX can only be traded within Fidelity. Automated Investing: Mutual funds are better suited for "automatic dollar-cost averaging" investments. While ETFs can also be used for this, you need to set up automatic purchases. Capital Gains Tax: Whether it's FZROX or VTI, capital gains tax will be triggered when you sell and make a profit. The main difference lies in whether the fund's internal portfolio rebalancing and dividend distributions are allocated to your account.
VTI and FZROX are like Coke vs Pepsi—same market, tiny differences. VTI is portable if you ever leave Fidelity. FZROX is locked to Fidelity. Either way you’ll end up with the whole US market. Pick one, keep buying, don’t sweat it.
> FZROX is a mutual fund and VTI is an ETF but which one is better These two funds have virtually identical performance. So not a factor. > and whats really the difference between an ETF and mutual fund? Mutual funds are generally simpler: price once per day. ETFs trade intraday like a stock. > I don’t plan to change my brokerage with Fidelity This is really the only important part of the conversation: what happens if you *do* decide (or need) to change from Fidelity? Well, because FZROX is proprietary to Fidelity, you’d need to sell it before you could ever transfer. This triggers capital gains tax. Conversely, VTI is portable and can be moved from Fidelity to anywhere, sans tax. > but I am more worried about which one would grow more Virtually identical > and capital gains taxes. Virtually identical
The two are so close it's hardly wroth debating, especially if your portfolio is anywhere below the mid-8 figures. FZROX is basically free however can't be moved outside of Fidelity. VTI has a 0.03 expense ratio ($300 for every million invested) but portable to any brokerage. Also VTI is an ETF which trades like a stock which can have issues with trying to buy a fraction of a share. FZROX is a conventional mutual fund that lets you buy in whole dollars. So basically for your purposes, they're both just fine. I do VTI myself but only because I don't bank with Fidelity. I say for someone starting out like yourself, FZROX is just fine.
if taxable, pour money into FSPGX. Growth is better for taxable. If this is tax deferred, stick with FNILX and FZROX.
[https://www.reddit.com/r/personalfinance/wiki/commontopics/](https://www.reddit.com/r/personalfinance/wiki/commontopics/) (money management tips) If you decide to open a Roth IRA, I would open one with Fidelity and simply invest 80% in FZROX and 20% in FZILX. It's as simple as that. [https://www.fidelity.com/mutual-funds/investing-ideas/index-funds](https://www.fidelity.com/mutual-funds/investing-ideas/index-funds) I would follow this strategy until you are nearing retirement, then I would add a bond component. [https://www.bogleheads.org/forum/viewtopic.php?t=328019](https://www.bogleheads.org/forum/viewtopic.php?t=328019) My investing strategy is a three fund portfolio minus the bond fund: [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio) Book suggestion: I Will Teach You To Be Rich by Ramit Sethi
If you are with Fidelity, FZROX is great (zero expenses). Otherwise, VTI. 85-100% depending on how simple you want your investing BF to be. If 85%, out the other 15% in an aggressive growth fund to try and get some outsized returns. VIGAX has a nice track record and low expenses.
You can go with FZROX or FSKAX. That will be C and S in one fund. The FXAIX and FSMAX works too.
Hi All, Not sure if this is the right place to post, but I want some opinions/advice on my current investing situation and what exactly I am investing into where. I am a mid-20s adult and live in a MCOL - HCOL cost of living area as a remote worker. I make \~ $85,000/year from my salary. Below is my investment breakdown: ***Bi-Weekly Paycheck: $3,302.52*** **Pre-Tax Investments** * 10% of Paycheck into 401(k) through Fidelity (FXAIX): $330.25/paycheck * Company Match (50% on first 6%): $99.08/paycheck **Tax Payments** * State/Federal Taxes: $723.74/paycheck ***Post-Tax Paycheck Balance: $2,248.53*** **Post-Tax Investments** * 10% of Post-Tax Paycheck into Personal Portfolio: $224.85/paycheck * 70% into FZROX: \~ $157.40 * 30% into FZILX: \~ $67.46 * Max Roth IRA: $269.23/paycheck * 70% into VTI: \~ $188.46 * 30% into VXUS: \~ $80.77 ***"Take Home" Paycheck: $1,754.44*** The $1,754.44 goes into my Checking Account. Once a month, I move $715.55 (10% of monthly salary) from my Checking Account to my Savings Account (variable APY, but \~4% right now). I accumulate \~ $8,586.55 in my savings a year from this. Let me know if anyone has any suggestions or questions. I appreciate the input in advance!
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
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.
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
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)
FSKAX has an ER of 0.015%, whereas FZROX is 0. Calling them high fee is misleading.
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.
FZROX is great in tax-advantaged accounts. Just don't own it in taxable though since it's not portable.
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.
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).
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.
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.
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.
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.)
[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)
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
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.
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.
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.
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!
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
FZROX is a one stop shop total market fund with 0 expense ratio. It's a loss leader for Fidelity.
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.
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.
Why not FZROX for even less expense ratio (zero) and more total market diversity? It's a one stop shop for me personally.
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.
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.)
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.
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).
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.
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/
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?
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?
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.
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.
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.
FZROX and chill. Open a brokerage account if you want to have “play” money.
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.
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.
About 50-60% of my salary is RSUs and I live off the base and invest all RSUs into FZROX
Sell all on vest and move into FZROX, been doing this for years, has worked out well
I have it all in FZROX, over $1M now, set it and forget it, a wise philosopher once said
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.
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.
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.
The bulk of your portfolio should be index funds. VTSAX, FZROX and SWTSX give good diverse exposure.
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.
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.
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)?
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.
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.
I put my excess money into FZROX and then sleep soundly at night, the end
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
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?
Buy SPDR every month. or FXAIX. Or FZROX.
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.
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!