Robinhood stock investor, James Panos, is diversifying away from cryptocurrencies and this week via Instagram has touted out his support behind game-changing index fund, Fidelity ZERO Total Market Index Fund (FZROX) claiming it to be the new Vanguard Total Stock Market Index Fund (VTSAX).
For those of you that are familiar with index funds you’d know, the Vanguard Total Stock Market Index Fund has over 3,000 small, mid, and large-cap growth and value stocks including AT&T, Walmart Inc., Abbot Laboratories, and PepsiCo Inc. This fund is very attractive to investors due to its broad diversification and tax efficiencies.
So how could you replace an index fund with another index fund? Well VTSAX has a minimum buy-in of $3,000 and currently has a 0.04% expense ratio which doesn’t sound like much especially compared to other index funds out there but this is where the Fidelity ZERO Total Market Index Fund is designed to strive.
The stocks included in the Fidelity ZERO Total Market Index Fund are about the same as the Vanguard Total Stock Market Index Fund with one major difference. The word “ZERO” in the title of the index fund refers to the expense ratio being $0. This index fund is totally free to hold for however long you want.
Anyone who pays attention to James on social media would know he’s been doing his research and talking a lot about this index fund. In late 2018 Fidelity Investments released four zero expense ratios making them the first-ever no-fee mutual fund unseating Vanguard as the low-cost leader of funds.
Important to note, James does not actively give out stock advice but did warn people also excited by this fund to be careful and really think about the percentage of the money you put into it and to maybe put away a safe amount into bonds or another investment for some stability.
James also made it clear today that considering he doesn’t plan to touch these investments in the next 10-15 years he’s going all-in and being aggressive with his money dumping a huge percentage into stock funds.
At just 24 years old James has called some pretty major upticks within the market proving his immense understanding of the patterns and consumer trends including NIO back when it was trading for only $3.82 and Tesla back in April before the huge boom. It’s safe to say that with his track record this index fund is a great move for investors.
To follow James Panos’s posts his social media handle for both Instagram and Twitter are @jimmypanos. He really is a must-follow for all young investors looking to get started.
You must be logged in to post a comment.