Zero Fee Funds Have Arrived

401k, retirement, zero fees, fidelity

It was only a matter of time.

Zero. Zilch. Nada.

Fidelity kicked it up a notch (or down)—at least when it comes to index funds. Earlier this week, the investing behemoth announced“a series of industry-changing moves that will give investors unparalleled value, simplicity and choice” are coming, namely a no-fee fund.

The Boston-based company added the new fund options to its lineup on Fidelity.com.

The Zero Expense Ratio Fidelity ZERO Index Funds (FZROX) and Fidelity ZERO International Index Fund (FZILX) are the industry’s first self-indexed mutual funds with a zero expense ratio that are available directly to individual investors.

“This means investors will pay a 0.00 percent fee, regardless of how much they invest in either fund, while gaining exposure to nearly the entire global stock market,” Fidelity explained in its statement.

The company announced several other enhancements, as well, including:

“With this action, 100 percent of Fidelity’s stock and bond index mutual funds and sector ETFs will have total net expenses lower than all of Vanguard’s comparable funds that are available to individuals, advisors and institutional investors,” the company noted in its statement. “In addition, Fidelity beats Schwab’s prices for nine of 10 comparable index mutual funds (and is tied on the 10th index mutual fund).”

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