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Old 06-28-2020, 12:54 AM   #41
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Hello,


Fidelity no longer charges any fees to buy or sell ETFs.


https://www.fidelity.com/why-fidelity/pricing-fees
All ETFs, or just Fido’s ?
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Old 06-28-2020, 04:50 AM   #42
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All stocks and ETFs.
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Old 06-28-2020, 06:55 AM   #43
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Originally Posted by teejayevans View Post
All ETFs, or just Fido’s ?
All. In the past they had a deal with iShares only where they traded with no commission. But now it's all.

They do, however, have a small activity assessment fee still when selling an ETF ranging from $0.01 to $0.03 per $1000 of principal.

https://www.fidelity.com/etfs/overvi...%20investments.

Cheers.
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Old 06-28-2020, 02:35 PM   #44
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Yeah, as far as stock/ETF commissions, several app-based investment brokers had ways to trade free, and then someone not quite as small went commission-free, then in September/October Schwab did too, and the other big dominoes fell quickly. (Meaning Vanguard, Fidelity, TD Ameritrade, etc.)

There was a transition period there where several brokers had a program or family of ETFs that could be freely traded either freely or as part of a robo-advisor, but now market and limit orders for U.S. stocks & ETFs are free. (Well, depending on brokerage, but any brokerage who doesn't have free trades may not be around much longer.)
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Old 06-28-2020, 04:45 PM   #45
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We own a mix of Vanguard and iShares ETFs, all housed at Fidelity. I prefer ETFs in our taxable accounts due to minimal capital gain distributions. We own the same ETFs in tax-advantaged accounts just to keep the overall number of tickers to a minimum, and I do like intraday trading on the rare occasion that we make a trade. However, if I ever get around to it, I'll probably move all of our VTI positions in tax-advantaged to FZROX for the 0.0% ER. CGDs aren't a problem there. We own a lot of VTI and the compounded effect of the small ER difference is fairly substantial over 30 years. Definitely worth the 5 minutes to move it all.
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Old 06-28-2020, 06:54 PM   #46
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However, if I ever get around to it, I'll probably move all of our VTI positions in tax-advantaged to FZROX for the 0.0% ER. CGDs aren't a problem there. We own a lot of VTI and the compounded effect of the small ER difference is fairly substantial over 30 years. Definitely worth the 5 minutes to move it all.
At this point perhaps the tracking error is more of an issue than the expense ratio.

It used to be the case that Vanguard made up for the expense ratio by clever strategies such that their after expenses return was very nearly equal to the index return most of the time. It was only off by a few basis points, and this was back when their expense ratios were on the order of a dozen basis points. If they are still as clever, I would expect the Vanguard index funds to beat the index itself by 5-10 basis points.

I think FZROX is too new to know for sure what their tracking error will be.
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Old 06-29-2020, 05:56 AM   #47
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At this point perhaps the tracking error is more of an issue than the expense ratio.

It used to be the case that Vanguard made up for the expense ratio by clever strategies such that their after expenses return was very nearly equal to the index return most of the time. It was only off by a few basis points, and this was back when their expense ratios were on the order of a dozen basis points. If they are still as clever, I would expect the Vanguard index funds to beat the index itself by 5-10 basis points.

I think FZROX is too new to know for sure what their tracking error will be.
It's true that FZROX has little history. But Fidelity's index funds have a long history of fee offsets as well. This is not unique to Vanguard. Here's an article that compares Fidelity's zero funds (FZROX) to Vanguard (VTI) on several criteria. The writer grades them "even" on fee offsets or positive tracking error and provides some historical data to support that. Overall, he gives the nod to VTI, but primarily due to tax efficiency. Of course, that is a well-documented advantage for ETFs in general, which is why I'll continue to hold VTI in taxable accounts. But more importantly, it is not relevant for tax-advantaged accounts, which is where I'll hold FZROX.
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Old 06-29-2020, 06:17 AM   #48
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I think FZROX is too new to know for sure what their tracking error will be.
Based on some reading across the internet, especially in the early months of its existence, not everybody may realize that FZROX tracks a proprietary index created by (or for) Fidelity and, as such, is the only fund anywhere that tracks that index. So, it is important that it tracks its own index and I expect it will since both the fund and the index belong to Fidelity.

Now, it is a total market index, very similar to many other total market indices and comparing long term performance to those indices is important - time will tell. But there's no reason that FZROX should track those indices perfectly since it's not set up to.

My guess: In terms of performance, it will be well within envelope of other Total Stock Market funds, so unlikely to matter if held in a tax advantaged account. Key thing to watch out for if it's held in a taxable account and what its tax efficiency will be vs. other choices.
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Old 06-30-2020, 03:34 PM   #49
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I have the ETF equivalent of the mutual funds in my taxable portfolio. For one thing, it does not distribute capital gains so no surprises.
Also, one thing I really dislike about mutual funds is that if I buy/sell, i have no idea what the price for the transaction (or number of shares purchased) until after it is all over. I like being able to know the price of the ETF.
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Old 07-03-2020, 06:27 PM   #50
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My issue is the selection of investments. FBGRX doesn't have a comparable investments in an ETF
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