FULL DISCLOSURE:
I am not a financial advisor. This post is to provide information and not provide financial product advice. I discuss why I personally chose to invest in a stock, ETF, REIT, investment fund or cryptocurrency (which I have held for over a week) and also share information that is public about the following stock, ETF, REIT, investment fund or cryptocurrency and they are based on my own personal opinion.
I will not blog about any positions of stocks, ETFs or REITS and cryptocurrency which were initiated just within the last 72 hours of posting this blog article.
It is recommended that you should always consider visiting a financial advisor for independent financial advice before making investment decisions.
I do not work in the financial industry, so just because I write about it, doesn’t mean you should own it. So, consult with a financial advisor and do your due diligence, RESEARCH!
I am not receiving compensation by the company for this blog post.
I have no working relationship with any company whose stock, ETF, REIT or cryptocurrency mentioned in this blog post. Nor do I have a family member or friend who works with the company.
Typically, many investors who wanted diversification in their portfolio have invested in an index fund.
An index fun is a type of mutual fund or exchange-traded fund (ETF) with a portfolio constructed to match or track the components of a financial market index.
Typically, an index mutual fund is said to provide broad market exposure, low operating expenses and low portfolio turnover.
While they are great for diversification, low expense ratios, strong long-term returns and ideal for those who are buy and hold investors, they are also vulnerable to market swings and crashes, you are limited in gains and it does lack in flexibility.
But many who do believe in long term holding, invest in index funds and before, you would have to invest from $3,000 to $10,000 for an index fund.
But Fidelity introduced their zero expense ratio index mutual fund. These have a zero expense ratio index, there is no minimum to open an account, no account fees for retail brokerage accounts and creating an account and getting 24/7 live customer service is free.
While Fidelity has numerous $0K Minimum Investment Index Funds, the following four: FZROX, FNILX, FZIPX, FZILX have 0% expense ratio.
And I have to admit, I was a bit skeptical at first because if it sounds too much like a good thing, be wary of it.
But I do know that one positive is that Fidelity is a well-known financial company. I do know that the popular FZROX (Fidelity ZERO Total Market Index Fund) and FNILX (Fidelity ZERO SM Large Cap Index Fund) has holdings in Apple Inc., Microsoft Corp., Amazon.com, Facebook, Google, Tesla, Berkshire Hathaway Inc. (B), JPMorgan Chase & Co., Johnson & Johnson.
FZROX has a total of 2,635 holdings as of March 2021 and FNILX has 516 holdings as of March 2021.
While FZIPX (Fidelity ZERO Extended Market Index Fund) has holdings in American Airlines Group, L Brands, Hunt JB Transport Services, Dentsply Sirona Inc., Airbnb Inc., Whirlpool, Williams Sonoma Inc., Westrock Co., Snowflake, Molina Healthcare, while FZILX (Fidelity ZERO International Index Fund) focuses on Tencent Holdings Ltd., Alibaba Group Holdings, Taiwan Semiconductor MFG., Samsung, Nestle, ASML Holding, Roche, Novartis, Toyota Motor Corp., and LVMH Moet Hennessy Louis VU.
FZIPX has a total of 2119 holdings as of March 31, 2021. FZILX has 2,375 holdings as of March 31, 2021.
I have seen various YouTubers such as Graham Stephan advocate for FZROX and FZILX:
But I also have been following a family (known for their YouTube channel “Our Rich Journey”) who has invested in these for the past few years (and the fact they retired at the age of 39) and have posted updates on their investment and return.
I have to admit that watching their videos, because they show their growth overtime, made me want to give Fidelity Zero Expense Ratio Index Mutual Funds a try!
For FZROX, they invested $3,000 to purchase 349.243 shares at $8.59 a share (It was so much cheaper last year) and they invested $700 each month and their most recent was purchasing 49 shares at $14.45 shares and now have a total of 1,078.83 shares at $10.94 a share.
The total amount invested is $11,797.32 and the current value is $15.468.98 which is very good.
For FZILX, they invested $1,000 and bought 128.535 shares at $7.78 a share and in March 2021, bought 20.168 shares at $11.90 a share. So, they own a total of 417.962 shares at average price of $9.43 a share.
The total amount they invested was $3,941.82 and have a current value of $4,9277.77 which is great!
So, I wanted to try and see what happens when I invest in all four.
But using FZROX as an example, I invested $295.50 (20.065 shares) at $14.73 a share since the beginning of April. And since then, have seen it go up to $8.48 to a current value of $303.98.
FZROX will be my primary focus but I also wanted to try the other three.
For FNILX, I invested $109.30 (7.564 shares) at $14.45 and the current value is $113.08.
For FZILX, I invested $120 at $11.90 a share (10.088 shares) and the current value is now $123.77.
For FZIPX, I invested $75.20 at $13.21 a share (5.691 shares) and the current value is $77.96.
So, each of the four have received a gain in the past few weeks. So, I’m going to continue to put money each month towards the four and see how things go and I’ll do more posts to show how much has changed overtime.
