Fidelity’s Zero-Fee ETF Is Quietly Keeping Pace With the S&P 500 And Costs Absolutely Nothing

Core Insights - FZROX, Fidelity's Zero Total Market Index Fund, has maintained a 0.00% expense ratio since its launch in August 2018, making it a compelling option for investors looking for low-cost exposure to the U.S. equity market [2][6] - The fund is designed to track the entire American stock market, including large-cap and small-cap companies, through Fidelity's proprietary U.S. Total Investable Market Index [3][4] - Over the past year, FZROX has outperformed traditional benchmarks, returning 18.48% compared to 17.69% for SPY and 17.67% for VTI, and over five years, it returned 81.75%, surpassing VTI's 65.3% and SPY's 75.69% [5][6] Fund Structure and Strategy - FZROX does not employ options, leverage, or income-enhancement strategies, focusing solely on capital appreciation through ownership of American corporate earnings growth [4] - The fund's top holdings include major technology companies such as Apple, Nvidia, and Microsoft, with Information Technology making up 31.8% of its portfolio [4][6] - FZROX is exclusively available through Fidelity accounts and cannot be held in other brokerage accounts, which may affect investors considering switching custodians [4] Performance Analysis - The performance of FZROX has proven to be competitive, with the fund achieving significant returns without sacrificing performance due to its zero-cost structure [5][6] - The five-year performance comparison should be interpreted directionally due to different start dates, but overall, FZROX has shown strong results relative to its peers [5]