Fidelity Zero Question

[stygz]

I am thinking of building a Roth portfolio that consists of 2-3 of the Zero funds. While some of the history is short in their performance what is the downside to them versus the equivalent Fidelity fund that may be around a .02 expense ratio? I also notice the share price is much less. How does that play in?

I am simply looking at 3 or 4 funds to build a two Roth accounts.

 

[bloom2708]

Consider only stock index (zero) funds in your Roths. Put bonds in your pre-tax 401k or pre-tax Rollover IRA. No need for all funds in all places.

The share price means nothing for mutual funds. For ETFs the share price can mean a larger remainder, but most places allow fractional shares now.

 

[mathjak107]

The zero funds follow their own indexes , not the standard ones other funds use .

They would have to pay to use the standardized indexes so they created their own .

They are close but for someone who wants the actual holdings in something like the S&P 500 these holdings are a bit different

 

[Dtail]

Don't think you can go wrong either way. I followed the performance at first of their zero vs. non zero funds and it was very close. Not sure right now.

 

[braumeister]

I can look at M* and see that FZROX has a trailing TR slightly lower than the equivalent FXAIX, despite the zero ER. The difference is very small though.