It was only a matter of time, but I don’t believe anyone expected Fidelity to be the first company to come out with zero fee funds.  Vanguard is usually the company most online think of and recommend when it comes to low fee funds.  Fidelity looked them square in the eye and said:  We can do better.

The two funds they created are:

The FZROX follows the United States total market.  The description from their site:  The fund seeks to provide investment results that correspond to the total return of a broad range of U.S. stocks.

The FZILX fund is their international fund: The fund seeks to provide investment results that correspond to the total return of foreign developed and emerging stock markets.

So what’s this mean for you and I?  More money kept in our accounts and especially when it comes to retirement and tax deferred accounts, the more money you keep, the more you can put compounding to work for you.

If you tend to follow the Boglehead Lazy Fund style of investing – simply put, a set it and forget it style of investing you would break these two funds up like this:

FZROX:  40% allocation

FZILX:  60% allocation

The purists will tell you that a true lazy fund portfolio will have it split up between three funds with a 33% allocation into each:  Bond Fund, US Market, International Market. 

I just don’t care for the bond funds currently (2018) as the interest rates are low and poised to go up.  As the rates go up, you’re principle will go down.

Now if you only had one fund to choose, I’d pick the US total market.

All in all this is great news for the small and average investor!

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