Market Overview

Fidelity Rewrites the Rules of Investing to Deliver Unparalleled Value and Simplicity to Investors

  • First-Ever Zero Expense Ratio Self-Indexed Funds for Individual
  • Zero Investment Minimums, Account Fees and Account Minimums
  • Significantly Reduced Expenses on Existing Fidelity Index Mutual

®, one of the largest index mutual fund
providers with over $7 trillion in total client assets, announced today
a series of industry-changing moves that will give investors
unparalleled value, simplicity and choice. Fidelity's groundbreaking
enhancements include:

This press release features multimedia. View the full release here:

Fee Comparison: Fidelity vs. Charles Schwab and Vanguard, Page 1 (Graphic: Business Wire)

Fee Comparison: Fidelity vs. Charles Schwab and Vanguard, Page 1 (Graphic: Business Wire)

  • Zero expense ratio mutual funds (Fidelity
    ZERO Index Funds)
  • Zero minimums to open accounts
  • Zero account fees
  • Zero domestic money movement fees
  • Zero investment minimums on Fidelity
    retail and advisor mutual funds and 529 plans1
  • Significantly reduced and simplified
    pricing on existing Fidelity index mutual funds

"Fidelity is once again rewriting the rules of investing to deliver the
unparalleled value and straightforward investing options that
individuals need and deserve," said Kathleen Murphy, president of
Fidelity Investments' personal investing business. "We are charting a
new course in index investing that benefits investors of all ages – from
millennials to baby boomers – and at all affluence levels and stages of
their lives. The ground-breaking zero expense ratio index funds combined
with industry-leading zero minimums for account opening, zero investment
minimums, zero account fees, zero domestic money movement fees and
significantly reduced index pricing are unmatched by any other financial
services company.

"Fidelity's relentless focus on enhancing the value we provide to
investors, combined with our award-winning platforms and broad-based
financial planning and advisory services, demonstrate the clear
advantage of investing with Fidelity," continued Murphy. "With Fidelity,
investors never have to compromise on great value or comprehensive

Watch Kathleen Murphy discuss Fidelity's enhancements in a live
broadcast on
at around 10:45 a.m. today, Aug. 1, 2018.

Zero, Zilch, Nada – The Zeros Really Add Up

  • Zero Expense Ratio Fidelity ZERO Index Funds. Fidelity ZERO
    Total Market Index Fund (FZROX) and Fidelity ZERO International Index
    Fund (FZILX) are the industry's first self-indexed mutual funds with a
    zero expense ratio available directly to individual investors. This
    means investors will pay a 0.00% fee, regardless of how much they
    invest in either fund, while gaining exposure to nearly the entire
    global stock market. The funds will be available on
    as of Aug. 3, 2018. For more information on these funds, click
Firm     Fidelity     Vanguard     Charles Schwab
Fund name    

Fidelity ZERO Total
Market Index Fund


Vanguard Total Stock
Market Index Fund


Schwab Total Stock
Market Index Fund

Net Expenses     0.00%     0.14%     0.03%
Investment Minimum     $0     $3,000     $0
Firm     Fidelity*     Vanguard     Charles Schwab
Fund names    

Fidelity ZERO
International Index Fund


Vanguard FTSE All-
World, Ex-U.S. Index
Fund (VFWIX)


International Index
Fund (SWISX)

Net Expenses     0.00%     0.23%     0.06%
Investment Minimum     $0     $3,000     $0

* Comparisons based on fund expense ratios only. Please consider
other important factors including that each fund's investment
objectives, strategy, and index tracked to achieve its goals may differ,
as well as each fund's features and risks.

  • Zero minimums to open accounts; zero account fees; and zero
    domestic money movement fees for individual investors.
    of all ages and affluence crave an investing approach and fee
    structure that is straightforward and simple. Fidelity is
    taking a leading approach in the industry by implementing
    across-the-board zero investment minimums to open a Fidelity retail
    brokerage account (including the Attainable Savings Plan) as well as
    eliminating account and domestic money movement fees on these
    accounts. For example, Fidelity will not charge individual investors
    for domestic bank wires, check stop payments, returned checks and low
    balance maintenance fees. These
    are effective immediately.
  • Zero investment minimums on Fidelity mutual funds and 529 plans1.
    Fidelity will impose no investment minimums on its mutual funds and
    529 college savings plans available to individual investors directly
    from Fidelity or through a financial advisor. These changes are
    effective immediately.
  • Reduced and simplified pricing on existing Fidelity index mutual
    In addition to offering the industry's first self-indexed
    mutual funds with a zero expense ratio, Fidelity is reducing the
    pricing on its existing stock and bond index mutual funds. Fidelity
    will provide investors the lowest priced share class available,
    ensuring every investor, regardless of how much they invest, will
    benefit from the lowest possible fees. The average asset-weighted
    annual expense across Fidelity's stock and bond index fund lineup's
    will decrease by 35 percent, with funds as low as 0.015 percent. These
    changes will save shareholders approximately $47 million annually2.
    With this action, 100 percent of Fidelity's stock and bond index
    mutual funds and sector ETFs will have total net expenses lower than
    all of Vanguard's comparable funds that are available to individuals,
    advisors and institutional investors.3 In addition,
    Fidelity beats Schwab's prices for nine of 10 comparable index mutual
    funds (and is tied on the 10th index mutual fund).

Please see the attached appendix for additional details on competitive
pricing comparisons.

About Fidelity Investments

Fidelity's mission is to inspire better futures and deliver better
outcomes for the customers and businesses we serve. With assets under
administration of $7.0 trillion, including managed assets of $2.5
trillion as of June 30, 2018, we focus on meeting the unique needs of a
diverse set of customers: helping more than 27 million people invest
their own life savings, 23,000 businesses manage employee benefit
programs, as well as providing more than 12,500 financial advisory firms
with investment and technology solutions to invest their own clients'
money. Privately held for 70 years, Fidelity employs more than 40,000
associates who are focused on the long-term success of our customers.
For more information about Fidelity Investments, visit

Before investing, consider the investment objectives, risks,
charges, and expenses of the mutual fund, exchange-traded fund, 529
plan, Attainable Savings Plan, or annuity and its investment options.
Contact Fidelity for a prospectus, offering circular, Fact Kit,
disclosure document, or, if available, a summary prospectus containing
this information. Read it carefully.

Past performance is no guarantee of future results.

Zero account minimums and Zero account fees apply to retail brokerage
accounts only.

Expenses charged by investments, such as
funds and managed accounts, and for commissions, interest charges, or
other expenses for transactions may still apply.

Fidelity funds with investment minimums of $10k or less, and in stock
and bond index fund classes with minimums of $100 million or less, now
have zero minimums.

See the fund's prospectus and for further details.

Some Fidelity mutual funds have minimum investment requirements.
Other fees and expenses may apply to continue investment as described in
the fund's current prospectus. See the fund's prospectus for details.

Stock markets, especially foreign markets, are volatile and can decline
significantly in response to adverse issuer, political, regulatory,
market, or economic developments. Foreign securities are subject to
interest rate, currency exchange rate, economic, and political risks,
all of which are magnified in emerging markets.

In general, the bond market is volatile, and fixed income securities
carry interest rate risk. (As interest rates rise, bond prices usually
fall, and vice versa. This effect is usually more pronounced for
longer-term securities.) Fixed income securities also carry inflation
risk, liquidity risk, call risk, and credit and default risks for both
issuers and counterparties. Unlike individual bonds, most bond funds do
not have a maturity date, so holding them until maturity to avoid losses
caused by price volatility is not possible. Any fixed income security
sold or redeemed prior to maturity may be subject to loss.

Fidelity, Fidelity Investments, Fidelity Investments and the pyramid
logo, are registered service marks of FMR LLC.

The third party trademarks appearing herein are the property of their
respective owners.

Investing in stock involves risks, including the loss of principal.

Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem
Street, Smithfield, RI 02917

Fidelity Investments Institutional Services Company, Inc.
500 Salem
Street, Smithfield, RI 02917

National Financial Services LLC, Member NYSE, SIPC,
200 Seaport
Boulevard, Boston, MA 02110

© 2018 FMR LLC. All rights reserved.

1 Minimums have been eliminated for funds that previously
required an initial investment of $10,000 or less, as well as for stock
and bond index funds that previously had minimums up to $100 million. A
very small number of institutionally-priced fixed income and Freedom
Index funds will maintain their current investment minimums.
Based on June 30, 2018 ending AUM
3 This excludes
certain Vanguard shares that are only available to institutional

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