andrew adams

Fidelity ZERO Large Cap Index Fund Review

The Fidelity ZERO Total Market Index Fund is designed to track the entire U.S. equity market. It charges no fees and earns four stars from Morningstar. The fund is very similar to the Fidelity ZERO Large Cap Index Fund, but it adds mid-cap and small-cap stocks. It is also relatively low-cost, with a 0% expense ratio. But before you buy, you should know what you're getting yourself into.

 Fidelity ZERO Large Cap Index Fund

Fidelity's ZERO Large Cap Index Fund doesn't track the S&P 500 or Nasdaq-100. Instead, it tracks the Fidelity U.S. Large Cap Index, which tracks the largest companies in the United States. Because the fund doesn't track the S&P, Fidelity can keep costs low. But if you're not sure which index to choose, you can also invest in the Vanguard Completion Index Fund, which has about 3,000 stocks but no S&P 500 index.

Whether or not you choose to invest in a Fidelity fund depends on your investment goals and risk tolerance. Before investing, make sure you understand all the risks and fees involved before deciding which one to buy. It's also a good idea to read up on the fund company's history. Vanguard, for example, sometimes increases fees during bear markets.

Fidelity's large range of mutual funds also includes ultra-low cost index funds. This is a big plus, since low fees and expense ratios eat into returns. Although the return on many investments is uncertain, expenses are one way to keep costs low. Lower expenses mean more money in your pocket and in your portfolio. So, before investing in a Fidelity ZERO Large Cap Index Fund, keep these things in mind.

FNILX Dividend

The fund currently pays a dividend of 1.11%. 

Top 10 FNILX Holdings

  1. AAPL
  2. MSFT
  3. AMZN
  4. TSLA
  5. GOOGL
  6. GOOG
  7. NVDA
  8. BRK/B
  9. META
  10. UNH

These top 10 holdings are weighted at 28.8% of the overall portfolio. 

If you're an investor looking for a low-cost way to gain exposure to the U.S. large-cap stock market, you may want to consider the Fidelity Zero Large Cap Index Fund (FNILX). As an exchange-traded fund (ETF), it offers broad diversification and low expense ratios, making it an attractive investment option for passive investors.

What is FNILX?

FNILX is an ETF that tracks the performance of the Fidelity U.S. Large Cap Index, which is composed of the largest 500 companies in the U.S. by market capitalization. The fund aims to provide investors with a diversified portfolio of large-cap stocks, including some of the most well-known companies such as Apple, Microsoft, Amazon, and Facebook.

Why invest in FNILX?

  • Low expenses: As a passive investment, FNILX has very low expense ratios, which means more of your money is invested in the fund and less goes toward fees and expenses.

  • Diversification: With FNILX, you get exposure to a broad range of large-cap stocks, which helps to spread risk across a diverse range of companies and industries.

  • Easy access: FNILX is available to buy and sell on most major brokerage platforms, making it easy to invest in and manage.

  • Tax efficiency: ETFs are generally more tax-efficient than mutual funds, as they tend to generate fewer capital gains.

Does Fidelity Zero Large Cap index pay dividends?

Yes, FNILX pays dividends on a quarterly basis, making it an attractive option for investors seeking regular income.

How does Fidelity make money on Fidelity zero?

Fidelity makes money on FNILX by charging a management fee, which is deducted from the fund's assets under management. However, as a passive ETF, FNILX has a very low expense ratio, which means Fidelity's management fee is also very low.

What does the Fidelity Zero Large Cap index track?

FNILX tracks the performance of the Fidelity U.S. Large Cap Index, which is composed of the largest 500 companies in the U.S. by market capitalization. The index is designed to be a broad representation of the U.S. large-cap stock market.

Is FNILX passive or active?

FNILX is a passive ETF, which means it is designed to track the performance of an index rather than try to beat it. This makes it a good choice for investors who prefer a buy-and-hold strategy and want exposure to a diversified portfolio of large-cap stocks.

Conclusion

If you're looking for a low-cost, passive way to invest in the U.S. large-cap stock market, FNILX is definitely worth considering. With its low expenses, broad diversification, and easy accessibility, it offers investors an attractive option for long-term investment.

FAQ

Why invest in FNILX? FNILX offers low expenses, diversification, easy accessibility, and tax efficiency, making it an attractive option for long-term investment.

Does Fidelity Zero Large Cap index pay dividends? Yes, FNILX pays dividends on a quarterly basis.

How does Fidelity make money on Fidelity zero? Fidelity makes money on FNILX by charging a management fee, which is deducted from the fund's assets under management.

What does the Fidelity Zero Large Cap index track? FNILX tracks the performance of the Fidelity U.S. Large Cap Index, which is composed of the largest 500 companies in the U.S. by market capitalization.

Is FNILX passive or active?

FNILX is a passive ETF, designed to track the performance of an index rather than try to beat it. This makes it a good choice for investors who prefer a buy-and-hold strategy and want exposure to a diversified portfolio of large-cap stocks.

Leave a comment