Best Fidelity ETFs and Zero-Fee Funds
Fidelity offers zero-fee index funds and competitive ETFs. Here are their best products and the catch with the free ones.
Don't have time? Here's what you need to know:
- 1Fidelity's zero-fee funds (FZROX, FZILX) genuinely charge 0.00% but are not portable to other brokers
- 2FXAIX (S&P 500, 0.015%) is the cheapest S&P 500 fund available — cheaper than VOO
- 3Most of Fidelity's best products are mutual funds, not ETFs
- 4Use Fidelity's zero funds for long-term accounts; use VTI/VOO for portability
Fidelity's Zero-Fee Funds: Really Free, With a Catch
Fidelity made headlines in 2018 by launching the first zero-expense-ratio index funds: FZROX (Zero Total Market, 0.00%), FZILX (Zero International, 0.00%), and FNILX (Zero Large Cap, 0.00%). These are mutual funds, not ETFs. They genuinely charge nothing — Fidelity earns money through securities lending and by keeping customers on their platform.
The catch: these zero-fee funds track proprietary Fidelity indices, not the standard CRSP or S&P indices. FZROX holds about 2,500 stocks vs VTI's 4,000+. The missing stocks are mostly micro-caps worth very little, so performance is nearly identical. The real limitation: zero funds can only be held at Fidelity. Transfer to another broker requires selling.
Best Fidelity Funds Ranked
Note: most of Fidelity's best funds are mutual funds, not ETFs. Fidelity's ETF lineup is smaller and less competitive. Their mutual funds are often cheaper than Vanguard's ETF equivalents — FXAIX at 0.015% beats VOO at 0.03%.
| Fund | Type | Expense Ratio | Vanguard Equivalent | Key Difference |
|---|---|---|---|---|
| FZROX | Zero Total Market (MF) | 0.00% | VTI (0.03%) | Free, but fewer holdings and not portable |
| FSKAX | Total Market Index (MF) | 0.015% | VTI (0.03%) | Cheaper than VTI, similar coverage |
| FXAIX | S&P 500 Index (MF) | 0.015% | VOO (0.03%) | Cheapest S&P 500 fund available |
| FTIHX | Total International (MF) | 0.06% | VXUS (0.07%) | Slightly cheaper than VXUS |
| FBALX | Balanced Fund (MF) | 0.49% | VBIAX (0.07%) | Active management — higher cost |
| FZILX | Zero International (MF) | 0.00% | VXUS (0.07%) | Free, but proprietary index |
Fidelity vs Vanguard: Which Platform Wins?
For pure cost: Fidelity's zero funds and index mutual funds are cheaper than Vanguard's ETFs. For portability: Vanguard's ETFs can be held at any broker. For user experience: Fidelity's app and website are generally rated better than Vanguard's. For fractional ETF shares: Fidelity offers them; Vanguard does not (for ETFs).
A practical approach: if you use Fidelity as your broker, buy FSKAX (0.015%) instead of VTI (0.03%) for your core U.S. holding — it is cheaper and functionally identical. If you might switch brokers in the future, buy VTI since it is portable.
Tip: Fidelity's zero-fee funds work best for Roth IRAs and accounts you plan to keep at Fidelity long-term. For taxable accounts where you might eventually transfer to another broker, use standard index mutual funds or ETFs instead.
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Frequently Asked Questions
Are Fidelity's zero funds too good to be true?
They are genuinely free of expense ratios. Fidelity makes money by lending out the securities in the fund and by keeping your assets on their platform. The trade-off is slightly fewer holdings and no portability to other brokers.
FZROX or VTI — which should I buy at Fidelity?
FZROX if you plan to stay at Fidelity long-term (0.00% fee). VTI if you might transfer to another broker someday (0.03% fee but fully portable). FSKAX (0.015%) is the middle ground — cheaper than VTI, broader than FZROX, and available at Fidelity.
Can I buy Vanguard ETFs at Fidelity?
Yes — all Vanguard ETFs trade commission-free at Fidelity. You can build a pure Vanguard portfolio at Fidelity if you prefer their platform and customer service. Many investors do exactly this.
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Alex Harrington
CFA Level II Candidate, Finance & Economics
Alex Harrington is an independent ETF researcher and personal finance writer with over 8 years of experience analyzing exchange-traded funds. A CFA Level II candidate with a background in economics, Alex has reviewed 800+ ETFs and helped thousands of beginners build their first investment portfolios through clear, jargon-free education.
This content is for educational purposes only and does not constitute financial advice. Past performance does not guarantee future results. Consult a licensed financial advisor before making investment decisions.