A. Fidelity recently announced two index mutual funds that come with non investment minimums and a 0% expense ratio -
- Fidelity Zero Total Market Index (FZROX) - it tracks the U.S. stock market
- Fidelity Zero International Index (FZILX) - it tracks international stocks
What's the catch? There are two:
- The funds are available only to individual investors with Fidelity brokerage accounts.
- To save on management costs, Fidelity will not license indexes from outside providers but will instead benchmark the funds to indexes assembled by Fidelity.