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REDDIT

Investing in VTI over FZILX for dividends? Or vice versa for zero-expense ratio.

O
Jul 2, 2026 · 01:05

I've got a RothIRA at Fidelity, and I've invested in the fidelity zero expense ratio Mutual Funds, FZILX and FZROX, as well as Vanguard's corresponding ETFs, VXUS and VTI, which do have minor expense ratios (0.05% and 0.03%).

Fidelity's Zero MFs do not distribute dividends, whereas Vanguard's do.

From my understanding, these positions basically travel in lock-step(FZILX and VXUS, and FZROX and VTI), and are predicted to give the same return. Makes sense, since they try to capture the same thing, either total US market or total ex-US market.

I mean 30c per 1000 dollars made is pretty small! But the dividends will cover the expense ratio and more. (If my calculations are right). Why do people still recommend investing in the zero-expense ratio positions if you have an account at Fidelity then?