FTIHX vs. FZILX: Comparing Fidelity International Funds

Someone asks:

Can someone suggest a good Fidelity mutual fund with international exposure? I found FTIHX and FZILX, but which one do I invest in?

FTIHX vs FZILX: Fund Objective

The Fidelity Total International Index Fund (FTIHX) is a mutual fund that invests in a wide range of international companies. It provides exposure to the performance of the MSCI All Country World Index, which includes more than 3,600 stocks from about 20 countries.

Similar to FTIHX, The Fidelity ZERO International Index Fund (FZILX) is a diversified index fund that invests in global stock markets outside of the United States. The fund was launched in 2018 as part of Fidelity’s “zero expense ratio” Index Funds.

FTIHX vs FZILX: Expense Ratio

As suggested by its name, FZILX charges nothing. Investors who invest in Fidelity ZERO International Index Fund pay no fees to the fund manager.

Meanwhile, with FTIHX, the expense ratio is 0.06%. This is relatively low compared to other mutual funds.

FTIHX vs FZILX: Top 10 Holdings

FTIHX Top 10 Holdings

Taiwan Semiconductor Manufacturing Co Ltd ORD23301.70%
Nestle S.A.NSRGF1.18%
Tencent Holdings Ltd.TCTZF1.08%
ASML Holding N.V.ASMLF1.06%
Samsung Electronics Co. Ltd.SSNLF0.88%
Roche Holding AG Part. Cert.RHHVF0.81%
Alibaba Group Holding Ltd.BABAF0.78%
LVMH Moet Hennessy Louis Vuitton SELVMHF0.69%
Toyota Motor Corp.TOYOF0.60%
Novo Nordisk A/S Series BNONOF0.58%

FZILX Top 10 Holdings

Taiwan Semiconductor Manufacturing Co Ltd ORD23301.43%
Nestle S.A.NSRGF1.27%
Tencent Holdings Ltd.TCTZF1.25%
ASML Holding N.V.ASMLF1.16%
Samsung Electronics Co. Ltd.SSNLF1.09%
Roche Holding AG Part. Cert.RHHVF0.97%
Alibaba Group Holding Ltd. ADRBABA0.83%
Toyota Motor Corp.TOYOF0.81%
LVMH Moet Hennessy Louis Vuitton SELVMHF0.74%
Novartis AGNVSEF0.69%

As of 11/30/2021

As you can see, 90% of their top holdings are the same, just different portfolio weights.

FTIHX vs FZILX: Dividend Yield

The dividend yield of FTIHX is 2.63%. The fund pays dividends to shareholders every December.

FZILX also have the same distribution schedule. The dividend yield of Fidelity ZERO International Index Fund is 2.68%.

FTIHX vs FZILX: Annual Return

FundsFidelity® ZERO International Index FundFidelity® Total International Index Fund
1 month+3.83%+3.80%
3 months+2.02%+2.01%
6 months-0.93%-1.08%
1 year+8.21%+8.47%
3 years+13.50%+13.54%
5 years+9.85%

Which is Better, FTIHX or FZILX?

There are more similarities between FTIHX and FZILX than there are differences.

The only differences between the two mutual funds are that one is a newcomer with no expense fee while the other has been around longer (since 2016) but charges a small fee.

There is no point in having both FTIHX and FZILX in your portfolio. The two are incredibly similar to each other.

In addition to these two international funds, there are also FSPSX and FEMKX.

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Hi! I'm Diego, 38, and I currently reside in New York. I work as a financial analyst. I primarily focus on initiatives involving research and data analysis.

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