Fidelity offers a broad range of index funds with no annual fees, giving investors a straightforward path to low-cost diversified investing. The firm pioneered commission-free index fund investing and continues to expand its lineup with competitive options across major asset classes.
Fidelity's zero-fee index funds track major benchmarks including the S&P 500, total stock market, and international equities. These funds charge no expense ratios, meaning your money grows without annual drag. The most popular option, Fidelity ZERO Large Cap Index Fund (FNILX), tracks the S&P 500 with no cost to investors. Similarly, Fidelity ZERO Total Market Index Fund (FZROX) provides broad U.S. stock exposure across large, mid, and small-cap companies, also at zero cost.
Beyond the ZERO lineup, Fidelity offers additional index funds with minimal fees. Fidelity Emerging Markets Equity Fund (FEMKX) charges 0.39% annually, while Fidelity Total International Stock Fund (FTIHX) costs 0.20% per year. These options allow investors to build global portfolios without excessive expense ratios eating into returns.
Fidelity's index funds work well within both taxable and retirement accounts. The zero-fee options prove especially valuable for long-term holders who benefit from compound growth without annual charges. Even the higher-cost international funds remain competitive against industry peers.
Choosing between Fidelity's options depends on your investment goals. New investors typically start with FZROX for complete U.S. market exposure or split between FZROX and FTIHX for domestic and international diversification. Experienced investors might layer in sector-specific or emerging market funds based on their portfolio strategy.
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