BOSTON--(BUSINESS WIRE)--Fidelity Investments®, one of the largest financial service providers with more than $7 trillion in total client assets, today announced it will launch two additional zero expense ratio index mutual funds – Fidelity ZERO Large Cap Index Fund (FNILX) and Fidelity ZERO Extended Market Index Fund (FZIPX). The funds, which reaffirm Fidelity’s commitment to providing investors with unparalleled clarity, value and choice, will be available to individual investors with no investment minimums on Fidelity.com starting September 18, 2018.
Fidelity’s ZERO funds, the only zero expense ratio index mutual funds available directly to individual investors, now provide market exposures representative of over two-thirds of industry index assets giving investors the broader choice of market coverage they need. Since launching on August 2, 2018, Fidelity’s first two zero expense ratio funds – Fidelity ZERO Total Market Index Fund (FZROX) and Fidelity ZERO International Index Fund (FZILX) – have grown to more than $1 billion in assets1.
“Fidelity has consistently used its leadership position and scale to improve value for consumers,” said Kathleen Murphy, president of Fidelity Investments’ personal investing business. “Our ZERO fund line-up is the most recent example, bringing innovation and value to investors, and we’re pleased so many investors have taken advantage of this offering.”
In addition to the new funds, Fidelity recently announced ground-breaking changes that provide more value to investors, including zero minimums for account opening, zero investment minimums on Fidelity retail and advisor mutual funds and 529 plans2, zero account fees, zero domestic money movement fees and significantly reduced index pricing. Fidelity has a long-standing commitment to use its leadership and scale to consistently deliver enhanced value to investors. For example, as Fidelity has doubled its index mutual fund assets, the firm also systematically reduced index mutual fund pricing by nearly 50 percent to provide greater value to investors. Notably, as Fidelity passed on the benefit of its scale to investors, all of its stock and bond index funds and sector ETFs have total net expenses lower than all of Vanguard’s comparable funds3.
This is one more example of a long history of Fidelity providing customers with enhanced value based on its leadership position and scale, including providing a number of services for free or at a very low cost, such as Fidelity’s no annual fee 2 percent cash back credit card; free debit card and ATM fee reimbursement4; free check writing and bill pay; free portfolio review at any of Fidelity’s nationwide network of investor centers; free asset allocation models for diversified and income portfolios; and transparent bond pricing at $1 per contract5.
New Fidelity ZERO Index Funds
Consistent with Fidelity ZERO Total Market Index Fund and Fidelity ZERO International Index Fund, investors will pay a 0.00% fee for the new funds, regardless of how much they invest in either fund.
- Fidelity ZERO Large Cap Index Fund: The fund will seek to provide investment results that correspond to the total return of stocks of large-capitalization U.S. companies.
- Fidelity ZERO Extended Market Index Fund: The fund will seek to provide investment results that correspond to the total return of stocks of mid- to small-capitalization U.S. companies.
The following charts compare Fidelity’s new mutual funds relative to competitors’ comparative funds:
| Firm | Fidelity | Vanguard | Charles Schwab | |||
| Fund name |
Fidelity ZERO Large Cap |
Vanguard 500 Index |
Schwab S&P 500 |
|||
| Net Expenses | 0.00% | 0.14% | 0.03% | |||
| Investment Minimum | $0 | $3,000 | $0 |
| Firm | Fidelity* | Vanguard | Charles Schwab | |||
| Fund names |
Fidelity ZERO Extended |
Vanguard Extended |
N/A | |||
| Net Expenses | 0.00% | 0.21% | ||||
| Investment Minimum | $0 | $3,000 |
| Firm | Fidelity | Vanguard | Charles Schwab | |||
| Fund name |
Fidelity ZERO Total |
Vanguard Total Stock |
Schwab Total Stock |
|||
| Net Expenses | 0.00% | 0.14% | 0.03% | |||
| Investment Minimum | $0 | $3,000 | $0 |
| Firm | Fidelity* | Vanguard | Charles Schwab | |||
| Fund names |
Fidelity ZERO |
Vanguard FTSE All- |
Schwab |
|||
| Net Expenses | 0.00% | 0.23% | 0.06% | |||
| Investment Minimum | $0 | $3,000 | $0 |
* Comparisons based on fund expense ratios only. Please consider other important factors including that each fund’s investment objectives, strategy, and index tracked to achieve its goals may differ, as well as each fund’s features and risks.
Please see this appendix for additional details on competitive pricing comparisons.
About Fidelity Investments
Fidelity’s mission is to inspire better futures and deliver better outcomes for the customers and businesses we serve. With assets under administration of $7.2 trillion, including managed assets of $2.6 trillion as of July 31, 2018, we focus on meeting the unique needs of a diverse set of customers: helping more than 27 million people invest their own life savings, 23,000 businesses manage employee benefit programs, as well as providing more than 12,500 financial advisory firms with investment and technology solutions to invest their own clients’ money. Privately held for 70 years, Fidelity employs more than 40,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit www.fidelity.com/about.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
Past performance is no guarantee of future results.
Zero account fees and minimums are available for retail brokerage accounts only. Expenses charged by investments, (e.g., funds and managed accounts, and certain HSAs) and commissions, interest charges, or other expenses for transactions may still apply. All Fidelity funds that previously required investment minimums of $10k or less, and in stock and bond index fund classes that previously had minimums of $100 million or less, now have zero minimums. See the fund's prospectus and Fidelity.com/commissions for further details.
Fidelity now offers the Fidelity ZERO Total Market Index Fund (FZROX), Fidelity ZERO International Index Fund (FZILX), Fidelty ZERO Large Cap Index Fund (FNILX), and Fidelity ZERO Extended Market Index Fund (FZIPX) available to individual retail investors who purchase their shares through a Fidelity brokerage account.
Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets.
In general, the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk, and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so holding them until maturity to avoid losses caused by price volatility is not possible. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
You will earn 2 Points per dollar in eligible net purchases (net purchases are purchases minus credits and returns) that you charge. Account must be open and in good standing to earn and redeem rewards and benefits. Upon approval, refer to your Program Rules for additional information. You may not redeem Reward Points, and you will immediately lose all of your Reward Points, if your Account is closed to future transactions (including, but not limited to, due to Program misuse, failure to pay, bankruptcy, or death). Reward Points will not expire as long as your Account remains open. Certain transactions are not eligible for Reward Points, including Advances (as defined in the Agreement, including wire transfers, travelers checks, money orders, foreign cash transactions, betting transactions, lottery tickets and ATM disbursements), Annual Fee, convenience checks, balance transfers, unauthorized or fraudulent charges, overdraft advances, interest charges, fees, credit insurance charges, transactions to fund certain prepaid card products, U.S. Mint purchases, or transactions to purchase cash convertible items. The 2% cash back rewards value applies only to Points redeemed for a deposit into an eligible Fidelity account. The redemption value is different if you choose to redeem your Points for other rewards such as travel options, merchandise, gift cards, and/or statement credit. Other restrictions apply. Full details appear in the Program Rules new card customers receive with their card. Establishment or ownership of a Fidelity account or other relationship with Fidelity Investments is not required to obtain a card or to be eligible to use Points to obtain any rewards offered under the program other than Fidelity Rewards. Eligible accounts for cash back include most nonretirement registrations as well as Traditional IRA, Roth IRA, Rollover IRA, SEP IRA, Fidelity Charitable® Giving Account®, Fidelity HSA®, and Fidelity-managed 529 College Savings Plan accounts. The ability to contribute to an IRA or 529 college savings plan account is subject to IRS rules and specific program policies, including those on eligibility and annual and maximum contribution limits. Full details appear in the Program Guidelines new card customers receive with their card. Contributions to Fidelity Charitable® are generally eligible for a federal income tax charitable deduction. Please consult with your tax advisor. The list of eligible registration types may change without notice at Fidelity’s sole discretion. For more information about whether a particular registration is eligible, please call 1-800-FIDELITY (800-343-3548).
The creditor and issuer of this card is Elan Financial Services, pursuant to license from Visa U.S.A. Inc.
Fidelity, Fidelity Investments, Fidelity Investments and the pyramid logo, are registered service marks of FMR LLC.
The third party trademarks appearing herein are the property of their respective owners.
Investing in stock involves risks, including the loss of principal.
Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem
Street, Smithfield, RI 02917
Fidelity Investments Institutional Services Company, Inc.
500 Salem
Street, Smithfield, RI 02917
National Financial Services LLC, Member NYSE, SIPC,
200 Seaport
Boulevard, Boston, MA 02110
859083.1.0
© 2018 FMR LLC. All rights reserved.
1 As of August 31, 2018.
2 Minimums have been
eliminated for funds that previously required an initial investment of
$10,000 or less, as well as for stock and bond index funds that
previously had minimums up to $100 million. A very small number of
institutionally-priced fixed income and Freedom Index funds will
maintain their current investment minimums.
3 Fidelity
beats Vanguard on expenses on 18 of 18 comparable stock and bond index
funds, across all Vanguard share classes with a minimum investment of
less than $3 billion. Total expense ratios as of August 1, 2018.
4
All Fidelity ATM withdrawal fees will be waived for your Fidelity® Cash
Management Account. In addition, your account will automatically be
reimbursed for all ATM fees charged by other institutions while using a
Fidelity® Visa® Gold Check Card linked to your account at any ATM
displaying the Visa®, Plus®, or Star® logos. The reimbursement will be
credited to the account the same day the ATM fee is debited from the
account. Please note that there is a foreign transaction fee of 1% that
is not waived, which will be included in the amount charged to your
account. The Fidelity® Visa® Gold Check Card is issued by PNC Bank,
N.A., and the check card program is administered by BNY Mellon
Investment Servicing Trust Company. These entities are not affiliated
with each other or with Fidelity Investments. Visa is a registered
trademark of Visa International Service Association, and is used by PNC
Bank pursuant to a license from Visa U.S.A. Inc.
5 $1
mark-up per bond compares to certain competitors whose online prices for
corporate and municipal bonds were found to be an average of $13 more,
per bond.
