Fidelity FZROX vs. Vanguard VTSAX: The Zero-Fee Showdown

The Two Best Total Market Funds

For investors who want to own the entire U.S. stock market at rock-bottom cost, two funds dominate the conversation: Fidelity's FZROX (Fidelity ZERO Total Market Index Fund) and Vanguard's VTSAX (Vanguard Total Stock Market Index Fund Admiral Shares). One charges literally nothing. The other is the gold standard with decades of history. Here's how they compare.

FZROX — The Zero-Fee Pioneer

Launched in 2018, FZROX was the world's first zero-expense-ratio index fund. It tracks the Fidelity U.S. Total Investable Market Index and holds virtually every publicly traded U.S. stock — over 2,500 companies. The expense ratio is exactly 0.00%. There's no account minimum.

• Expense ratio: 0.00%
• Minimum investment: $0
• Available at: Fidelity only (cannot be transferred to another broker)
• Holdings: ~2,500 U.S. stocks

VTSAX — The Original Total Market Fund

VTSAX has been around since 2000 and is the mutual fund version of VTI. It tracks the CRSP US Total Market Index and holds approximately 3,600 U.S. stocks. The expense ratio is 0.04% — four basis points, or $4 per year on a $10,000 investment.

• Expense ratio: 0.04%
• Minimum investment: $3,000
• Available at: Vanguard and most major brokerages
• Holdings: ~3,600 U.S. stocks

The Catch With FZROX

FZROX is proprietary to Fidelity. You cannot transfer FZROX shares to another brokerage — you'd have to sell them first (potentially triggering a taxable event in a non-retirement account). VTSAX can be held at Vanguard and many other brokerages, giving you more flexibility.

Which Should You Choose?

If you're at Fidelity and plan to stay there: FZROX. The zero cost and simplicity are hard to beat. If you want flexibility to move brokerages someday, or you're at Vanguard: VTSAX. Both are outstanding. The brokerage you're most comfortable with matters more than the 0.04% difference.