Fractional shares have changed the game for everyday investors, especially beginners looking to get started with limited capital. At the forefront of this movement is Fidelity Investments, one of the largest and most trusted brokerage platforms in the U.S. With its Stocks by the Slice® program and broad mutual fund access, Fidelity makes investing in fractional shares simple, affordable, and powerful.
Here we explore how Fidelity fractional funds work, why they’re ideal for new investors, how to start investing, and what funds to consider.
Understanding Fidelity Fractional Shares
Fractional shares are partial shares of a whole stock or ETF. Instead of needing hundreds or thousands of dollars to buy one share of a high-priced stock or fund, you can invest with as little as $1 at Fidelity and own a fraction of that investment.
Example:
If a stock like Alphabet (GOOGL) trades at $3,000, and you invest $30, you’ll own 0.01 shares.
Fidelity calls its fractional share program Stocks by the Slice®, which supports both stocks and ETFs. Mutual funds, while not technically fractional, can also be purchased in small dollar amounts, often with no minimum investment.
Why Beginners Should Use Fidelity Fractional Funds
1. Start Investing with $1
Fidelity lets you begin investing with just $1 in thousands of stocks and ETFs. Many mutual funds also require no minimum to start. This lowers the barrier to entry for beginners.
2. Broad Access to Quality Funds
From tech ETFs to international mutual funds, Fidelity offers a wide variety of low-cost options that can be purchased fractionally. Investors can diversify with just a few dollars.
3. No Commission Fees
Fidelity charges zero trading commissions on fractional share purchases. This ensures more of your money is working in the market.
4. Recurring Investments and Dollar-Cost Averaging
With automatic investing, you can schedule recurring purchases of fractional shares weekly or monthly. This supports dollar-cost averaging—a proven way to reduce risk over time.
5. Earn Dividends and Voting Rights
Fractional shareholders at Fidelity receive proportional dividend payouts and may even get voting rights depending on the investment.
6. Access to High-Priced Investments
You can buy into high-cost funds and stocks—like Tesla, Amazon, or thematic ETFs—with just a small amount.
"Fractional investing empowers more investors to participate in the market earlier and more frequently, which is crucial for long-term wealth building." — Kathleen Murphy, CIO, Fidelity
Top Fidelity Fractional Funds: Comparison Chart
| Fund Name | Fund Type | Expense Ratio | Minimum Investment | Dividend Yield (Approx.) | Investment Focus |
|---|---|---|---|---|---|
| Fidelity ZERO Total Market Index Fund (FZROX) | Mutual Fund | 0.00% | $0 (no minimum) | ~1.4% | Broad U.S. stock market |
| Fidelity 500 Index Fund (FXAIX) | Mutual Fund | 0.015% | $0 (no minimum) | ~1.3% | S&P 500 large-cap stocks |
| Fidelity MSCI Info Tech ETF (FTEC) | ETF | 0.08% | $1 (fractional) | ~0.7% | Tech sector exposure |
| Fidelity Dividend ETF for Rising Rates (FDRR) | ETF | 0.29% | $1 (fractional) | ~3.0% | Dividend stocks, inflation hedge |
| Fidelity International Index Fund (FSPSX) | Mutual Fund | 0.035% | $0 (no minimum) | ~2.5% | Developed international stocks |
Step-by-Step: How to Buy Fidelity Fractional Shares
Step 1: Open or Log In to Your Fidelity Account
Visit fidelity.com to log in or create a free brokerage account.
Step 2: Search for the Investment
Use the search bar to find a stock, ETF, or mutual fund (e.g., FZROX, FXAIX, AAPL).
Step 3: Select 'Trade' and Choose 'Dollars'
When placing a trade, select the option to trade in dollars instead of shares.
Step 4: Enter the Amount You Want to Invest
Input any dollar amount—minimum is just $1.
Step 5: Submit the Order
Orders are processed during regular trading hours (9:30 AM – 4 PM EST).
Step 6: Set Up Recurring Investments (Optional)
Go to your account settings to automate investments weekly, biweekly, or monthly.
Example: Monthly Investment Growth Over Time
| Amount Invested Monthly | Time Horizon | Total Value at 7% Annual Return |
| $50 | 10 years | $8,668 |
| $100 | 10 years | $17,336 |
| $200 | 20 years | $98,925 |
Even modest investments in fractional funds can lead to significant long-term gains.
Frequently Asked Questions (FAQs)
Q1: What’s the minimum I can invest in Fidelity fractional funds?
A: Just $1 for ETFs and stocks. Most Fidelity mutual funds have no minimum.
Q2: Are there any fees for trading fractional shares?
A: No. Fidelity offers commission-free trades on fractional shares.
Q3: Will I receive dividends on fractional shares?
A: Yes, dividends are paid proportionally.
Q4: Can I vote with fractional shares?
A: Yes, voting rights apply proportionally in most cases.
Q5: Can I transfer fractional shares to another broker?
A: No. You must sell fractional shares before transferring assets out.
Q6: Do fractional shares trade after-hours?
A: No, only during regular U.S. market hours.
Q7: Are fractional shares good for long-term investing?
A: Yes. They allow beginners to consistently invest, diversify, and compound returns.
Final Thoughts
Fidelity's fractional investing platform is one of the most beginner-friendly ways to build a smart, diversified portfolio. With low or no minimums, no commissions, and access to quality ETFs and mutual funds, it’s never been easier to start investing—even with just a few dollars.
Whether you want to buy a piece of the S&P 500 or diversify internationally, Fidelity gives you the tools to build a solid financial foundation.
Get started today and let your money grow one slice at a time.