Fidelity Roth IRA · Fund Analysis

Zero-Fee vs. Managed: Which Wins?

July 29, 2026 · 3-Year Comparison Annual returns · 5-year annualized · Verdict per pair
Zero-fee fund (0.00% ER) Managed fund (low ER) Bar height = annual total return · Values shown on each bar
Summary Verdicts
Category Zero-Fee Fund Managed Fund 3-Yr Winner Zero Action Managed Action
S&P 500 FNILX0.00% FXAIX0.015% ● Tie → FNILX ✓ Keep Sell
Total Market FZROX0.00% FSKAX0.015% ● FZROX ✓ Keep Sell
International FZILX0.00% FTIHX0.06% ● FZILX ✓ Keep Sell
Extended Market FZIPX0.00% FSMAX0.035% ● FSMAX ✓ Already sold ✓ Keep
Pair-by-Pair Charts
Pair 1 · S&P 500
FNILX vs FXAIX
● Effectively identical Keep FNILX Sell FXAIX
3-Yr Ann. (FNILX)
~20.5%
3-Yr Ann. (FXAIX)
20.60%
Fee Difference
0.015%/yr
The chart makes the case visually: these two funds are the same bet. FXAIX tracks the S&P 500 committee index; FNILX tracks Fidelity's own large-cap screen (~513 holdings vs ~502). In practice, returns have been within rounding error every single year. The only difference that compounds over 20 years is the 0.015% fee on FXAIX. Sell FXAIX, keep FNILX.
Pair 2 · Total US Market
FZROX vs FSKAX
● FZROX wins Keep FZROX Sell FSKAX
1-Yr (FZROX)
+21.42%
1-Yr (FSKAX)
+21.39%
5-Yr Ann. Delta
FZROX +0.18pp
Functionally identical funds — 0.99+ correlation. FZROX wins by a hair (0.18pp over 5 years, 0.03pp over 1 year) and costs nothing. FSKAX costs 0.015%/yr. The zero fund did what it promised: matched or slightly beat the managed equivalent. Sell FSKAX, keep FZROX.
Pair 3 · International
FZILX vs FTIHX
● FZILX wins clearly Keep FZILX Sell FTIHX
1-Yr (FZILX)
+26.83%
1-Yr (FTIHX)
+25.10%
5-Yr Ann. Delta
FZILX +0.68pp
The most surprising pair. FTIHX is structurally broader — 4,672 holdings vs FZILX's 2,316, including ~11% small-cap international that FZILX excludes. Despite this, FZILX outperforms: +1.73pp over 1 year, +0.68pp annualized over 5 years. Broader exposure didn't help. And FTIHX costs 0.06%/yr — the largest fee gap of any pair. Sell FTIHX, keep FZILX.
Pair 4 · Extended Market
FZIPX vs FSMAX
● FSMAX wins clearly ✓ FZIPX already sold Keep FSMAX
2023 Delta
FSMAX +7.23pp
2024 Delta
FSMAX +4.59pp
2025 Delta
FZIPX +1.13pp
The only pair where the managed fund wins — and it isn't close. FSMAX tracks the Dow Jones U.S. Completion Index (~3,500 holdings); FZIPX tracked Fidelity's proprietary extended market (~2,500 holdings). FSMAX's broader small-cap coverage gave it +7.23pp in 2023 and +4.59pp in 2024. The 0.035% fee paid for itself many times over. FZIPX was correctly sold. FSMAX stays.
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