Index funds are attractive investments as investors can enjoy broad diversification. These funds are low-cost investments, and investors don’t need to perform frequent actions to make money from these investment assets and generate attractive returns or passive income over a specific period. Fidelity Zero International Index Fund is one of the most popular funds among these types.
However, it is worth researching and checking any fund from several angles before making investment decisions. We make a complete review of the Fidelity Zero International Index Fund in this article, including the fund’s history, fees, performance measurement, risk info, rankings info, volatility info, etc.
What is the Fidelity Zero International Index Fund?
This mutual fund seeks to provide investment results corresponding to the total return of emerging and foreign developed stock markets. This fund usually invests 80% of its assets in securities included in the Fidelity Global ex-United States Index and depositary receipts representing securities included in the index.
The designing purpose of The Fidelity Global ex U.S. Index is to reflect the performance of non-U.S. mid and large-cap stocks. This fund, FXILX, belongs to the international multi-cap core category, and the portfolio style is international. The fund status is open and belongs to the “Fidelity” fund category. FXILX invests in several sectors, including real estate, basic materials, financial service, healthcare, energy, technology, etc.
Meanwhile, the top ten holdings of this fund contain Fidelity Revere Str Tr, Tencent Holdings Ltd, Alibaba Group Holdings Ltd ADR, Nestle SA, Samsung Electronics Co Ltd, etc.
History of the fund
The fund has been operating for nearly four years as the inception date is 2 Aug 2018. The lead manager of this fund since 1 Aug 2018 is Louis Bottari, and he was a former assistant portfolio manager, portfolio manager, and senior portfolio manager with Geode. This fund is worth approx. $3.312 billion in assets under management.
The fund price is floating near $11.00 today while writing.
Ranking info
Many organizations work with many investment assets of similar categories to prepare ranking data. Checking on raking info enables understanding the asset category as rankings depends on comparing different data such as returns, expenses, risks, etc. The Morningstar is a popular organization that ranks many investment assets that track at least three years’ performances.
It gives a five-star rating for the top 10% assets, the following 22.5% receives a four-star rating, and the subsequent 35% gets a three-star rating. FZILX gets a three-star overall rating from Morningstar and is not ranked yet.
Trailing total return
It is worth checking return info before investing as expert investors always choose to invest in any asset when the return info matches their expectations. The return info works as significant motivation to investors. The YTD (daily) return of FZILX is -8.26%, and the yearly return is -0.21%. Meanwhile, the three-year return is +7.99%, and the life return is +5.57%.
Check the chart of annual total returns. We are attaching the calendar-year total returns chart below for better understanding.
Now, look at the rank in the category chart for the FZILX by total return.
Performance info
Investors always check performance measurement info before investing in any asset, as checking on performance data helps to learn the potentiality of the investment asset.
This fund has a year-to-date return of 7.30% currently. Since its inception, this fund has provided two smooth bullish years for investors. For better understanding, check the trailing returns vs. benchmarks info chart below.
Since its inception, we are attaching a hypothetical chart of 10k investment in FZILX.
So the fund grows more than 25% during four years. Now check the historical performance data below to understand the performance.
However, note that any past performance doesn’t guarantee any future profit; it only illustrates historical performance and helps to determine the potentiality.
Fees and costs
The essential features of FZILX are retirement accounts, max exchange redemptions in a year, and Simple IRA.
This fund has an expense ratio of 0.00%, and there is no minimum initial investment amount. So any investor can invest according to their capability.
These low-cost features make this fund an attractive investment asset.
Risk factors
This fund, FZILX, seeks to track the performances of foreign developed and emerging stock markets. The foreign market assets involve various risks as several macroeconomic and microeconomic factors affect the price movement of any foreign asset, such as interest rates, government sanctions, war, inflation rate, etc.
So index funds also involve risks, but these are less risky investments than stocks and other financial assets like currencies, cryptocurrencies, bonds, etc. The performance of index funds also varies due to several factors such as sample selection, transaction costs, and timing differences.
The Alpha value of FZILX is -0.59, the Beta value is 0.88, and the standard deviation value is 4.82. According to Morningstar, this fund belongs to the “average risk” category in comparison to similar type assets.
Volatility measurement
Thet info is essential to check as it reflects the risk of change in price or uncertainty of the asset’s value.
The standard deviation value is 17.036, and the mean value is 1.181. Meanwhile, the Sharpe ratio is 0.781.
The Fidelity Zero International Index fund forecast 2022
FZILX has been doing well since its inception as we check this fund from several angles for research purposes. The fund declined near $6.95 from a peak near $10.39 during the first quarter of 2020 for the Corona pandemic. Then it recovers smoothly and finishes that year above $11.25. Although it has been on a downtrend since Dec 2021, we find this fund a potential investment in 2022. Our research suggests the fund will grow smoothly in 2022 if no uncertainty arises.
Final thought
Finally, you know all the essential info about the Fidelity Zero International Index Fund. Now, if you want to invest in FZILX, we suggest estimating your investment amount and durations alongside rechecking on return info to confirm that the return amount matches your expectations.
