What are the Fidelity ZERO funds?

Fidelity ZERO funds are a family of index mutual funds with 0.00% expense ratios — no annual cost to hold them. The four funds are: FZROX (Fidelity ZERO Total Market Index Fund), FZILX (Fidelity ZERO International Index Fund), FZRPX (Fidelity ZERO Extended Market Index Fund), and FZIPX (Fidelity ZERO International Index Fund - developed markets). All have $0 investment minimums.

Can I transfer Fidelity ZERO funds to another brokerage?

No — this is the biggest catch. Fidelity ZERO funds are proprietary to Fidelity and cannot be transferred in-kind to another brokerage. If you ever move your account to Vanguard, Schwab, or any other platform, you would need to sell your ZERO fund positions first, potentially triggering a taxable event in a non-retirement account. In an IRA, the tax impact is deferred, so this is less of a concern.

Are Fidelity ZERO funds better than Vanguard or Schwab index funds?

On cost, yes — 0.00% beats Vanguard's 0.03% (VTSAX) and Schwab's 0.03% (SWTSX) on a $100,000 investment by $30 per year. On portability, no — ZERO funds are Fidelity-only. For most long-term IRA investors who plan to stay at Fidelity, ZERO funds are the most cost-effective option available anywhere.

What index do Fidelity ZERO funds track?

Fidelity ZERO funds do not track standard third-party indexes (like the S&P 500 or MSCI). Instead, they track Fidelity's own proprietary indexes, which are designed to be broadly similar to comparable Vanguard and Schwab funds. FZROX tracks the Fidelity U.S. Total Investable Market Index (similar to CRSP Total Market), and FZILX tracks the Fidelity Global ex U.S. Index.

Fidelity ZERO Index Funds 2026 — FZROX, FZILX and True Zero-Cost Investing

Fidelity ZERO index funds charge a 0.00% expense ratio — the lowest cost of any mutual fund available to individual investors. The core two funds are FZROX (US total market) and FZILX (international developed markets), both with no minimum investment. On a $100,000 portfolio, switching from a 0.03% Vanguard or Schwab fund to a Fidelity ZERO fund saves $30 per year — a modest amount annually, but compounding over decades.

The key caveat: Fidelity ZERO funds are proprietary and cannot be transferred to another brokerage. If you ever leave Fidelity, you must sell first, which may trigger capital gains taxes in a taxable account.

The Four Fidelity ZERO Funds

Fund	Ticker	What It Tracks	Expense Ratio	Minimum
Fidelity ZERO Total Market Index	FZROX	US total stock market	0.00%	$0
Fidelity ZERO International Index	FZILX	International developed markets	0.00%	$0
Fidelity ZERO Extended Market Index	FZRPX	US mid- and small-cap stocks	0.00%	$0
Fidelity ZERO International Index (Dev.)	FZIPX	International developed ex-US	0.00%	$0

For most investors building a simple portfolio, FZROX and FZILX are the two relevant funds.

FZROX vs. VTI vs. SCHB: How Much Does the Fee Difference Matter?

All three funds track the total US stock market. The cost difference is:

Fund	Expense Ratio	Annual Cost on $100K	Annual Cost on $500K
FZROX (Fidelity)	0.00%	$0	$0
VTI (Vanguard)	0.03%	$30	$150
SCHB (Schwab)	0.03%	$30	$150
SWTSX (Schwab mutual fund)	0.03%	$30	$150

The difference is small in absolute dollar terms — $30/year on $100,000. But over 30 years at 7% growth, that $30/year compounds into approximately $2,800 more in your account. On $500,000, the ZERO advantage over 30 years grows to roughly $14,000.

These are real numbers, but the portability cost (having to sell if you leave Fidelity) is also real. For IRA accounts where you plan to stay at Fidelity long-term, FZROX and FZILX are the clear optimal choice. For taxable accounts where you might want flexibility to transfer in-kind, VTI and SCHB are the more portable alternatives.

A Simple Two-Fund ZERO Portfolio

A global diversified portfolio using only Fidelity ZERO funds:

Fund	Allocation	What It Provides
FZROX	70%	US total stock market
FZILX	30%	International diversification

This portfolio holds over 5,000 companies worldwide at 0.00% annual cost. It is more broadly diversified than an S&P 500-only portfolio (FZROX includes mid- and small-cap US stocks, not just the 500 largest).

Add bonds as you approach retirement: Consider adding a bond fund like FXNAX (Fidelity U.S. Bond Index Fund, 0.025% expense ratio) or the iShares Core U.S. Aggregate Bond ETF (AGG) for fixed income. FXNAX is not a ZERO fund but is still very low cost.

Are FZROX and FZILX Safe to Own Long-Term?

The most common concern about Fidelity ZERO funds is the use of proprietary indexes rather than standard third-party benchmarks (CRSP, MSCI, Russell). Fidelity controls its own indexes, raising theoretical questions about index methodology changes.

In practice, since their 2018 launch, FZROX and FZILX have tracked the US and international markets closely, with performance differences vs. VTI and VEA attributable almost entirely to the fee savings.

Historical performance note: FZROX (US total market) has slightly outperformed VTI since inception due entirely to the expense ratio advantage. FZILX performance relative to VXUS varies more due to different index composition (FZILX is developed markets only; VXUS includes emerging markets).

Who Should Use Fidelity ZERO Funds?

Situation	Use ZERO Funds?	Reason
Fidelity IRA, plan to stay long-term	Yes	Maximum cost efficiency, portability not an issue in IRA
Fidelity taxable account, long-term holder	Probably	Low tracking error, but consider portability
May transfer to another broker later	No	VTI/SCHB are transferable in-kind
Non-Fidelity account	No	Unavailable outside Fidelity

For the complete Fidelity brokerage overview, see the Fidelity review. For IRA details at Fidelity, see the Fidelity IRA guide. To compare costs across all major brokerages, see best brokerage accounts.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy