So I was thinking of going either FZROX or FNILX for my Roth IRA fund since 10 percent bonds is way too much for a 22 year old like myself, and the two funds above come up a lot during my questions.
Problem is, which one is better? I’m going to be retiring on this stuff in like 43-44 years, so whatever nets me the most dough is the one I’ll pick.
One more thing, how do you rebalance in a Roth IRA? Can you just transfer shares from a stock fund to a bond fund, do you sell it, or what?
- FNILX and FZROX are classified as Fidelity’s ZERO Index Fund. This means they have no expense ratio.
- Both mutual funds have had similar performance and returns in the last 5 years. 64.24% and 62.85%, respectively.
- They also have the same dividend distribution schedule. FNILX and FZROX pays dividends every December.
- FNILX focuses on large-capitalization U.S. companies, while FZROX aims to cover the total U.S market.
Both, FNILX and FZROX, are good. No way to know which will do better in the future. I have FNILX, it is just a basic S&P 500 fund, you will do what the market does.
FZROX a total market fund, which will give you some exposure to smaller cap stocks, but I would say that since it is a weighted index, the stocks in the S&P 500 will be the majority of the holdings, so the return will be rather similar. I don’t think you can go wrong with either.
FNILX and FZROX are almost the same. FZROX is the US Total Market, but allocation to mid-cap, small-cap is very small: 15%.