7 Low-Cost Index Funds and 7 Low-Cost Index ETFs - NerdWallet (2024)

FAQs

Is Fnilx a good investment? ›

What do analysts say about Fidelity ZERO Large Cap Index Fund? Fidelity ZERO Large Cap Index Fund's analyst rating consensus is a Moderate Buy. This is based on the ratings of 512 Wall Streets Analysts.

Both fund types may help simplify investing, tend to keep expense ratios relatively low, and can help reduce risk through diversification. ETFs can be bought and sold throughout the trading day, which could make them better for active investors. Index mutual funds can be bought and sold only at the end of the day.

FNILX and QQQM are often described as some of the best index funds for beginner investors.

Last dividend for Fidelity ZERO Large Cap Index F (FNILX) as of Sept. 11, 2024 is 0.00 USD. The forward dividend yield for FNILX as of Sept. 11, 2024 is 0.02%.

FNILX, the Fidelity ZERO Large Cap Index Fund, is a fund focused on large stocks with zero transaction fees for Fidelity customers and no management fees. FXAIX, the Fidelity 500 Index Fund, is Fidelity's version of the S&P 500 index fund and charges extremely low fees. Here's a closer look at FNILX vs.

While they offer advantages like lower risk through diversification and long-term solid returns, index funds are also subject to market swings and lack the flexibility of active management.

A commonly cited rule of thumb is to own between 10 and 20 mutual funds, but the actual number will vary depending on your individual circ*mstances. Too many funds can lead to unnecessary over-diversification and overlap. There's really no point in owning, say, two index funds that invest in the same index.

Why would I buy an index fund over an ETF? ›

ETFs and mutual funds that track an index typically have lower management fees than actively managed ETFs or mutual funds. A mutual fund is priced once a day and all transactions are executed at that price, while the price of an ETF fluctuates throughout the day as it is bought and sold through an exchange.

ETFs and index mutual funds tend to be generally more tax efficient than actively managed funds. And, in general, ETFs tend to be more tax efficient than index mutual funds. You want niche exposure. Specific ETFs focused on particular industries or commodities can give you exposure to market niches.

The 4% rule says people should withdraw 4% of their retirement funds in the first year after retiring and take that dollar amount, adjusted for inflation, every year after. The rule seeks to establish a steady and safe income stream that will meet a retiree's current and future financial needs.

The passive index fund industry is dominated by BlackRock, Vanguard, and State Street, which we call the “Big Three.” We comprehensively map the ownership of the Big Three in the United States and find that together they constitute the largest shareholder in 88 percent of the S&P 500 firms.

Overall Rating. Morningstar has awarded this fund 5 stars based on its risk-adjusted performance compared to the 375 funds within its Morningstar Category.

Large cap funds should be a part of any investor's portfolio and FNILX offers the best version of this classic financial tool. Fidelity's FNILX fund owns the 500 most valuable stocks on US exchanges, offering broad exposure to top companies.