What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
The thing is these indexes can be tracking the same stocks, they just don’t use the index trademarked name. Vanguard does same thing with their “500” fund, it follow sp 500 but doesn’t use the name to keep fees low, most large brokerages have funds like this but aren’t scrutinized the same.
I like the total stock market zero fund it performed similar to the pay indexes in up markets and when markets are down at least you're not paying to lose money.
Very educational and well-articulated Rob. I, too, am curious how my Zeroes will compare long term with my comparable holdings in Vanguard and only time will tell. Some say we’re splitting hairs at this point, but I find this all quite interesting. Thank you for the work you’re doing!
This video is insightful. & helpful. There are so many “flashy” videos out here that lack the in depth information viewers like I look for. Thank you for sharing this.
@@23janneter Absolutely. But the FNILX is performing substantially better than FZROX the last few years. Large cap is outperforming the total market, basically.
I have both FXAIX ($143.06) and FNILX ($14.52). I see the FNILX not for its dividends but for its potential growth. It may not claim to follow the S&P500, so long as it has the same companies and in similar percentages it should have a similar performance. If in 10 years the fund price is similar to the current price of FXAIX, I think it is worth the investment during its infancy.
Fidelity Zero funds all pay out dividends only once a year in December, where there fee base ones are pay out quarterly. Are they making money on the dividends since they only pay the lump sum once a year?
My hope is that Fidelity offers a ZERO Fund for Bonds and hopefully many more competitive ZERO mutual funds. I am undeterred by their proprietary methodology. They add competitive pressure to the marketplace and all benefit from that.
Yes, your correct not enough data right now. However as long as it continues to beats my personal goal of minimum 8%-12% return I good. Obviously keeping an eye on your quarterly statement is always a good thing. Remember that its in the ballpark to follow the overall market. If it falls slightly short and as long as it doesn't go below my above mentioned expectations I can call it a win.
Excellent video Rob. I add your video to a recent post by Nick Doyle on this site. I'm sincerely impressed by your background, going from trial atty to financial counselor. Thanks for this wonderful and deep expose on the Zero fee Fidelity Funds.
Excellent video Rob! This topic is very timely for me as just yesterday I had conversation with a Fidelity financial advisor and asked a very similar question that your analysis addresses. My question was comparing the Fidelity Large Cap No Cost Index Fund to the Vanguard S & P 500 Index Fund. The short answer was that the two funds are close to being identical which doesn’t seem to be supported by your analysis, albeit, even though you are comparing funds within the Fidelity family of funds. Anyway, I’m very impressed with the research you’ve conducted and presented in this video. Great job Rob!
Yes, I agree, there is now just about 5 years or data. How about also comparing the ZEROs to some of their Vanguard counterparts as well as some comparable ETFs?
Interestingly, if you look at it again, one year later, the results are different. Zero Large Cap loses slightly, Zero extended market, total market, and International wins slightly. I know the basis points are minimal on the non-ZERO funds, but over time, maybe the ZERO basis points works out. Portfolio differences are not that great. Probably still too early to tell. I have most of my retirement money in ZERO funds. I know the index fund fees are minimal, but ZERO is still ZERO and I hate paying fees in a down market.
It’s my understanding that if you own Fidelity Zero (FZ) funds and one day, for some reason, you decide to move from Fidelity to Schwab, you cannot transfer the FZ funds to Schwab (or to any other broker). You’d have to sell them, take the tax hit, then purchase new funds. Sound right?
@@alexanderb4465 I've seen this criticism. But couldn't you just exchange the Zero fund for a fund that can be transferred? FNILX becomes FXAIX with a simple exchange.
How does Fidelity make money on these 0% funds? They are not a charity, they are in business to make money. I have wondered if they have put some of their costs into the transaction fees. Is there anyway to compare transaction fees between funds?
You can find transaction fees in the Statement of Additional Information. That said, I'm guessing thy view the cost as a marketing expense. And because the track their own proprietary indexes, costs are minimal.
Make money from interest free loan from shareholders who get dividends once a year instead of four times. They can invest the borrowed money to make interest before distributing back to shareholders.
Hi Rob, would you recommend Fidelity Zero funds today (7/7/24) since they have been generating a very competitive return over many years and now have a longer history of performance you can review? Best regards, Doug
Hi Rob. I thought that the CAGR already accounted for the expense ratio. In other works, isn't the CAGR the return after expenses are already subtracted out?
Here's the article with links to references in the video: robberger.com/fidelity-zero-funds-review/
What are the best strategies to protect my portfolio? I've heard that a downturn will devastate the financial market, so I'm concerned about my $200k stock portfolio.
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
My CFA NICOLE ANASTASIA PLUMLEE a renowned figure in her line of work. I recommend researching her credentials further... She has many years of experience and is a valuable resource for anyone looking to navigate the financial market..
I appreciate it. After searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
The thing is these indexes can be tracking the same stocks, they just don’t use the index trademarked name. Vanguard does same thing with their “500” fund, it follow sp 500 but doesn’t use the name to keep fees low, most large brokerages have funds like this but aren’t scrutinized the same.
Love the work behind the opinion. No emotion, just facts.
simply explained, but also very thorough and well-researched-perfect!
I like the total stock market zero fund it performed similar to the pay indexes in up markets and when markets are down at least you're not paying to lose money.
Very educational and well-articulated Rob. I, too, am curious how my Zeroes will compare long term with my comparable holdings in Vanguard and only time will tell. Some say we’re splitting hairs at this point, but I find this all quite interesting. Thank you for the work you’re doing!
Another thing to mention is that some of the zero funds pay out dividends once a year vs other funds that pay out quarterly.
This video is insightful. & helpful. There are so many “flashy” videos out here that lack the in depth information viewers like I look for. Thank you for sharing this.
I invested $10K in FNILX in May 21. 4 months later it is at $11K. Excellent video. Thank You
Do you recommend fzrox and fnilx for a Roth ira?
@@23janneter Absolutely. But the FNILX is performing substantially better than FZROX the last few years. Large cap is outperforming the total market, basically.
The logic is clear. People come to Fidelity because of zero funds and then end up adding up other funds with expenses
Exactly. It's a loss leader.
I have both FXAIX ($143.06) and FNILX ($14.52). I see the FNILX not for its dividends but for its potential growth. It may not claim to follow the S&P500, so long as it has the same companies and in similar percentages it should have a similar performance. If in 10 years the fund price is similar to the current price of FXAIX, I think it is worth the investment during its infancy.
Fidelity Zero funds all pay out dividends only once a year in December, where there fee base ones are pay out quarterly. Are they making money on the dividends since they only pay the lump sum once a year?
Was wondering about this exact thing a few days ago. Perfect timing!
My hope is that Fidelity offers a ZERO Fund for Bonds and hopefully many more competitive ZERO mutual funds. I am undeterred by their proprietary methodology. They add competitive pressure to the marketplace and all benefit from that.
Me too. I have FXNAX in my taxable account.
Yes, your correct not enough data right now. However as long as it continues to beats my personal goal of minimum 8%-12% return I good. Obviously keeping an eye on your quarterly statement is always a good thing. Remember that its in the ballpark to follow the overall market. If it falls slightly short and as long as it doesn't go below my above mentioned expectations I can call it a win.
Wow this is a very solid video and very solid work and research presented in a simple format. Very informative, thank you!
Excellent video Rob. I add your video to a recent post by Nick Doyle on this site. I'm sincerely impressed by your background, going from trial atty to financial counselor. Thanks for this wonderful and deep expose on the Zero fee Fidelity Funds.
Excellent video Rob! This topic is very timely for me as just yesterday I had conversation with a Fidelity financial advisor and asked a very similar question that your analysis addresses. My question was comparing the Fidelity Large Cap No Cost Index Fund to the Vanguard S & P 500 Index Fund. The short answer was that the two funds are close to being identical which doesn’t seem to be supported by your analysis, albeit, even though you are comparing funds within the Fidelity family of funds. Anyway, I’m very impressed with the research you’ve conducted and presented in this video. Great job Rob!
Almost 2024 I think this concept of ZERO has changed. Do you think you can make another updated comparison for today?
Yes, I agree, there is now just about 5 years or data. How about also comparing the ZEROs to some of their Vanguard counterparts as well as some comparable ETFs?
Thanks for the detailed research into this!
Thank you for the thorough and detailed analysis. I found it very helpful.
Thanks for the explanation of these funds.
Great video, Rob! Very timely, per usual.
Interestingly, if you look at it again, one year later, the results are different. Zero Large Cap loses slightly, Zero extended market, total market, and International wins slightly. I know the basis points are minimal on the non-ZERO funds, but over time, maybe the ZERO basis points works out. Portfolio differences are not that great. Probably still too early to tell. I have most of my retirement money in ZERO funds. I know the index fund fees are minimal, but ZERO is still ZERO and I hate paying fees in a down market.
The zero extended fund is designed to mimic the Vanguard Small Cap Index Fund, not the fund you compared it to.
You do a great job Rob. Wish I could have a beer with you. Thanks.
Great review of these funds Rob
Another superb and informative video. Thank you for your in-depth information about The Zero funds.
It’s my understanding that if you own Fidelity Zero (FZ) funds and one day, for some reason, you decide to move from Fidelity to Schwab, you cannot transfer the FZ funds to Schwab (or to any other broker). You’d have to sell them, take the tax hit, then purchase new funds. Sound right?
Yes. The fidelity zero funds can only be held in fidelity account
@@alexanderb4465 I've seen this criticism. But couldn't you just exchange the Zero fund for a fund that can be transferred? FNILX becomes FXAIX with a simple exchange.
Wouldn't the CAGR include the fund expenses? I've never been able to verify this for index funds, since fees are so tiny.
@@merrymerkin That's what I've assumed. Thanks!
All the performance shown are after expenses.
Thanx for the video I was stuck on which to choose now I know which ones
Rob, do you favor equal weighted or market cap weighted funds for a retiree?
Subscribed! Starting them now.
For a brokerage account would an ETF be more tax efficient than the zero funds?
How does Fidelity make money on these 0% funds? They are not a charity, they are in business to make money. I have wondered if they have put some of their costs into the transaction fees. Is there anyway to compare transaction fees between funds?
You can find transaction fees in the Statement of Additional Information. That said, I'm guessing thy view the cost as a marketing expense. And because the track their own proprietary indexes, costs are minimal.
They don't
Make money from interest free loan from shareholders who get dividends once a year instead of four times. They can invest the borrowed money to make interest before distributing back to shareholders.
These funds are loss leaders. Fidelity makes money by obtaining you as a customer, and hopefully by selling other products to you later on.
Tried all but the extended market zero fund. Eventually transferred money to traditional funds. Need the extra dividends to reinvest.
I have FZROX and it’s as good as any total market fund.
Hi Rob, would you recommend Fidelity Zero funds today (7/7/24) since they have been generating a very competitive return over many years and now have a longer history of performance you can review? Best regards, Doug
Hi Rob. I thought that the CAGR already accounted for the expense ratio. In other works, isn't the CAGR the return after expenses are already subtracted out?
Yes.
Seems to me the Fidelity 500 fund (FXAIX) is one to have.
Very insightful
Thank you Rob 👍
Vanguard is still the/my winning choice. Nice work though Rob!
If you're already in the zero funds, is it worth moving it to the regular funds or just add new contributions to the regular funds?
No, free is the better option.
Just add to new fund. I would wait till I have at least $1,000 in old fund that I will keep. Then add to new one. Diversified portfolio lowers risk.
Great video, thank you!
So the return CAGR is net of the expense ratio fee? I have always wondered that.
Excellent!
Excellent
Very helpful
What do you think now that the 0 fee funds are out performing the standard funds at Fidelity
Another nagging question answered by the best UA-cam channel money can buy. Thanks Rob!
Is SFY similar?
Heard about you from your interview with Todd
Do your comparisons include dividends?
Portfolio visualizer allows to compare with and without dividends reinvested, so, yes.
Yes.
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👍🏾
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FZROX 💪
Have another look at these funds. FNILX is outperforming it. Substantially.
Well looks like they closed the Zero index funds to new investors
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I’d love to know your take on FZDXX