Fidelity’s Zero-Fee FZROX Yields 81.75% Over Five Years Vs S&P 500’s 75.69%
Fidelity’s FZROX returned 18.48% one year and 81.75% five years with a 0.00% expense ratio, beating SPY’s 17.69% and 75.69%. The fund tracks a proprietary broad U.S. market index with top weights in Apple, Nvidia and Microsoft but is only offered through Fidelity accounts and must be liquidated for transfer.
1. Performance Comparison
FZROX returned 18.48% over the past year and 81.75% over five years, compared with SPY’s 17.69% and 75.69% and VTI’s 17.67% and 65.3%. This performance shows that the zero-fee fund has matched or outpaced established broad-market benchmarks without sacrifice.
2. Zero-Fee Structure
Since its August 2018 launch, FZROX has maintained a 0.00% expense ratio by tracking Fidelity’s proprietary U.S. Total Investable Market Index and avoiding licensing fees from external index providers. This structure eliminates management fees entirely, lowering long-term compounding costs.
3. Portfolio Composition
The fund holds a diversified slice of the U.S. equity market, with Information Technology representing 31.8% of assets and top positions in Apple, Nvidia and Microsoft. It also includes broad exposure to mid-, small- and micro-cap companies to capture overall market growth.
4. Custodian Lock-In
FZROX shares are only available within Fidelity accounts and cannot be transferred in-kind to other brokerages. Investors seeking to move assets outside Fidelity must liquidate FZROX, potentially triggering taxable events in taxable accounts.