Side-by-Side Comparison
| Metric | FZROX | VTI |
|---|---|---|
| Type | Mutual Fund | ETF |
| Expense Ratio | 0.00% | 3.00% |
| Holdings | 2,700 | 3,645 |
| Dividend Yield | 1.20% | 1.28% |
| Min Investment | None | None |
| Inception | 2018-08-02 | 2001-05-24 |
| Index Tracked | Fidelity U.S. Total Investable Market Index | CRSP US Total Market Index |
| AUM | $18B | $427B |
Fund data last updated: 2025-01-02. Expense ratios, holdings, and yields may change. Always verify with official sources.
Key Differences
- •FZROX has 0.00% expense ratio; VTI has 0.03%
- •VTI has more holdings (~3,600 vs ~2,700)
- •VTI tracks the industry-standard CRSP index; FZROX tracks Fidelity's proprietary index
- •FZROX is only available at Fidelity; VTI is available everywhere
Which Should You Choose?
Taxable Brokerage Account
If you're at Fidelity and plan to stay, FZROX saves you 0.03%. If you might transfer brokerages, VTI is more portable.
IRA (Traditional or Roth)
FZROX is great if at Fidelity. VTI if you want portability or might consolidate accounts elsewhere later.
401(k)
Use the lowest-cost total market option in your plan. Both are excellent if available.
JL Collins' Recommendation
JL Collins specifically recommends Vanguard funds (VTI/VTSAX) due to Vanguard's unique ownership structure (owned by its funds, therefore by investors). However, he acknowledges FZROX is a fine choice if you're at Fidelity.
Frequently Asked Questions
How can Fidelity offer a 0% expense ratio?
Fidelity uses zero-fee funds as a loss leader to attract customers. They make money from securities lending, cash management, and other products you might purchase. It's a legitimate business strategy.
Is FZROX as good as VTI?
For practical purposes, yes. Both track the total U.S. stock market. FZROX has slightly fewer holdings and tracks a proprietary index, but performance should be nearly identical.
Can I transfer FZROX to another broker?
No. FZROX is only available at Fidelity. If you transfer to another broker, you'd need to sell FZROX (potentially triggering taxes) and buy a comparable fund. VTI/VTSAX are portable.
What is the Fidelity U.S. Total Investable Market Index?
It's a proprietary index created by Fidelity that tracks approximately 2,700 U.S. stocks. It's designed to approximate the total U.S. stock market, similar to but not identical to the CRSP index VTI tracks.
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