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listerine411 t1_ja3cx4i wrote

It's splitting hairs, and the S&P500 has just become a "catch all" term for things like total market.

Fidelity's FZROX has a zero expense ratio. I would only own it though in a retirement account.

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TheBigFish2004 OP t1_ja4nnnx wrote

What’s the “downside” or con of owning this, or something similar, in a taxable account?

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listerine411 t1_ja57jql wrote

ETFs are better than mutual funds in a taxable account. It gets complicated for why, but its just slightly more tax efficient. Mostly splitting hairs.

Also, FZROX can only be owned through Fidelity, so if you ever wanted to leave Fidelity, you'd have to sell your FZROX and incur a large tax penalty. With a retirement account, this isn't an issue.

ETFs though are portable and can go to any brokerage.

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