FYI: Fees and expenses are no longer one of the most important factors to consider when choosing an index fund.
I thought I would never say that. But I also never thought that any index fund would reduce its expense ratio to zero. Yet that is exactly what Fidelity recently did with two index fund offerings — the Fidelity Zero Total Market Fund FZROX, -0.19% and the Fidelity Zero International Index Fund FZILX, -1.11% .
Financial advisers will inevitably get lots of inquiries from investors wanting to shift their index fund dollars into Fidelity’s new funds. That may or may not be a good idea. But advisers can perform a real public service by using the occasion of those inquiries to teach clients that the differences between the expense ratios between Fidelity and other low-cost offerings— such as those maintained by Vanguard or Schwab — are dwarfed by other considerations.
Regards,
Ted
https://www.marketwatch.com/story/saving-a-few-pennies-on-index-funds-could-cost-you-many-dollars-2018-09-05/print
