Quick Answer
FTIHX is Fidelity's Total International Index Fund — 0% expense ratio, covering 50+ countries. See the FTIHX fund page at Fidelity for current performance and holdings. (~5,000 companies). ITIN holders can hold FTIHX in any Fidelity account alongside FSKAX for global diversification.
The Short Answer
FTIHX is the Fidelity Total International Index Fund — a single fund that holds approximately 5,500 stocks from over 50 countries outside the United States, tracking the MSCI ACWI ex USA Investable Market Index at a 0.06% annual expense ratio. For ITIN holders using a Fidelity Roth IRA, FTIHX is the 20% international complement to FSKAX in the standard two-fund index fund portfolio.
(= $6 per $10,000)
(50+ countries)
in a Fidelity IRA
What Is FTIHX?
FTIHX, the Fidelity Total International Index Fund, is a passively managed mutual fund tracking the MSCI ACWI ex USA Investable Market Index. It holds every country except the United States, spanning more than 50 markets. With a 0.06% expense ratio, it is the exact complement to a U.S. total-market fund, covering the rest of the global stock market.
It pairs naturally with FSKAX to cover the entire world.
The fund holds stocks across the full market-cap spectrum in each country: large internationally known companies (Samsung, Nestlé, ASML, Alibaba), mid-caps, and small-cap companies in both developed markets (Europe, Japan, Australia) and emerging markets (India, Brazil, Taiwan, South Korea, Mexico).
Developed vs. Emerging Markets
FTIHX holds both. Developed market stocks (Europe, Japan, Australia, Canada — but Canada is excluded as it appears in other MSCI indexes) make up roughly 75% of the fund. Emerging market stocks (China, India, Brazil, Taiwan, South Korea, Mexico, and others) make up roughly 25%. Emerging markets carry more volatility but also higher long-term growth potential as those economies develop.
What Does FTIHX Hold?
FTIHX holds stocks across more than 50 countries, split roughly 75% developed markets and 25% emerging markets. Developed holdings include Japan, the U.K., and much of Europe, while emerging holdings include China, India, Brazil, Taiwan, and South Korea. Here is how the geographic exposure breaks down approximately:
Approximate allocations — weights shift as market values change.
Top holdings typically include names like Samsung Electronics (South Korea), Nestlé (Switzerland), ASML (Netherlands), LVMH (France), Novo Nordisk (Denmark), and Toyota (Japan). Each individual holding makes up less than 1–2% of the fund, so no single company or event dominates performance.
Why Does International Diversification Matter for ITIN Investors?
International diversification matters because U.S. and foreign stocks lead in different decades, and holding both smooths your returns. International stocks make up roughly 40% of global market value, so owning a fund like FTIHX captures growth you would otherwise miss. For ITIN investors building a single long-term portfolio, that broad exposure reduces concentration risk.
Because past performance doesn't guarantee future results — and there have been long periods when international stocks outperformed the U.S.:
- 2002–2007: International stocks significantly outperformed U.S. stocks for five consecutive years as the dollar weakened and emerging markets boomed
- 1970s and 1980s: Japan's market delivered exceptional returns while the U.S. struggled; Japanese stocks became the largest share of global market cap by 1989
- 1990–2000: The U.S. dominated as tech boomed; international investors missed the rally
No one can predict which decade will favor which region. Holding both FSKAX and FTIHX means you participate in growth wherever it happens globally, without having to predict geography.
The math of diversification
When the U.S. market declines, international markets don't always fall by the same amount at the same time. Holding assets with low correlation to each other reduces your portfolio's overall volatility — meaning smoother returns over time even if no individual asset outperforms. FTIHX and FSKAX are correlated (global downturns hit both) but not perfectly, which provides some cushion.
What Does FTIHX's 0.06% Expense Ratio Actually Cost Me?
FTIHX's 0.06% expense ratio costs you about $0.60 per year for every $1,000 invested. On a $10,000 balance that is $6 a year, and on $100,000 it is $60 a year. That is among the cheapest international funds available. Here is what it looks like across different portfolio sizes:
| Portfolio Size | Annual Fee (0.06%) | Monthly Fee |
|---|---|---|
| $5,000 | $3.00 | $0.25 |
| $10,000 | $6.00 | $0.50 |
| $50,000 | $30.00 | $2.50 |
| $100,000 | $60.00 | $5.00 |
International funds generally cost slightly more than domestic U.S. funds because they must deal with foreign exchanges, currency hedging considerations, and trading in multiple time zones. FTIHX at 0.06% is among the cheapest international funds available anywhere. For comparison, actively managed international funds typically charge 0.70%–1.00%/year.
How Does FTIHX Compare to Similar International Index Funds?
| Fund | Expense Ratio | Structure | Holdings | Transferable? |
|---|---|---|---|---|
| FTIHX | 0.06% | Mutual fund | ~5,500 (50+ countries) | Yes |
| FZILX | 0.00% | Mutual fund | ~2,400 (proprietary index) | No — Fidelity only |
| VXUS | 0.07% | ETF | ~8,600 (50+ countries) | Yes |
| IXUS | 0.07% | ETF | ~4,200 (50+ countries) | Yes |
FTIHX vs FZILX: FZILX's 0.00% fee is hard to beat on paper — but it uses a proprietary index with fewer holdings and cannot be transferred to another brokerage. The $6/year difference per $10,000 is genuinely negligible. If you're committed to staying at Fidelity, FZILX is fine. If you want optionality, FTIHX transfers in-kind.
FTIHX vs VXUS: Very similar coverage (VXUS is slightly broader at ~8,600 stocks). FTIHX is slightly cheaper (0.06% vs 0.07%) and is a mutual fund with fractional dollar investing at Fidelity, vs VXUS which is an ETF. For Fidelity investors, FTIHX is the natural fit.
What Is the 80/20 Two-Fund Strategy With FSKAX and FTIHX?
The 80/20 two-fund strategy puts 80% of your stock allocation in FSKAX for total U.S. market exposure and 20% in FTIHX for international exposure. It is the most common Fidelity portfolio for ITIN holders because 2 funds cover the entire global market at rock-bottom cost. Here is what that actually means:
The U.S. side uses FSKAX, the total U.S. market index fund.
| Portfolio Detail | FSKAX (80%) | FTIHX (20%) | Combined |
|---|---|---|---|
| Market coverage | U.S. total market | All countries ex-U.S. | ~99% of global market cap |
| Number of stocks | ~3,900 | ~5,500 | ~9,400 companies |
| Expense ratio | 0.015% | 0.06% | ~0.024% blended |
| Blended fee on $7,500 (annual Roth max) | — | — | $1.80/year |
At a blended expense ratio of ~0.024%, you're paying roughly $2.40/year in fees on every $10,000 invested. That's the entire cost of owning nearly 9,400 companies across the global economy inside your tax-free Roth IRA.
Rebalancing is easy inside a Roth IRA
Once a year, check if your allocation has drifted from 80/20. If FSKAX has grown to 85% and FTIHX has fallen to 15%, simply direct your next contributions to FTIHX until you're back at 20%. Inside a Roth IRA, rebalancing generates no taxable event — you can also sell and rebuy to rebalance without tax consequences.
How Do I Buy FTIHX in a Fidelity Roth IRA?
To buy FTIHX in a Fidelity Roth IRA, log in, select your Roth IRA account, enter the ticker FTIHX, choose a dollar amount, and place the order. There is no minimum investment and no transaction fee. The 5-step process mirrors buying any other Fidelity mutual fund and settles within 1 business day.
You first need an open Fidelity Roth IRA.
- Log in to Fidelity at fidelity.com
- Click on your Roth IRA account
- Select Trade → Mutual Funds
- In the "Symbol" field, type FTIHX and press Enter
- Choose Buy, then select Dollars
- Enter your dollar amount — for a $288 biweekly contribution, $57.60 would go to FTIHX (20%) and $230.40 to FSKAX (80%)
- Confirm the order
You can simplify this by setting up automatic investments: schedule $230.40 biweekly into FSKAX and $57.60 into FTIHX, and Fidelity will automatically buy both on payday without you needing to log in.
Frequently Asked Questions
Does FTIHX include China?
Yes. Chinese stocks are part of the MSCI ACWI ex USA index that FTIHX tracks, typically making up 7–10% of the fund (within the emerging markets allocation). That includes companies listed on exchanges in Hong Kong and mainland China (through "Stock Connect" access). China is the second-largest country allocation in FTIHX after Japan in most recent periods, though weights change as market values shift.
Is FTIHX currency-hedged?
No — FTIHX is unhedged. It holds stocks in their local currencies (euros, yen, pounds, etc.), and the value in U.S. dollars fluctuates as exchange rates move. When the U.S. dollar weakens against foreign currencies, FTIHX's returns in dollar terms are boosted. When the dollar strengthens, returns are reduced. This currency exposure is part of what makes international diversification meaningful — your portfolio isn't entirely tied to the U.S. dollar's strength.
Does FTIHX pay dividends?
Yes. FTIHX distributes dividends quarterly. International stocks, particularly in Europe, tend to pay higher dividend yields than U.S. stocks — so FTIHX often has a higher yield than FSKAX. Inside a Roth IRA, dividends are reinvested tax-free. In a taxable account, international dividends may be subject to foreign tax withholding, but you can usually claim a foreign tax credit on your U.S. tax return to offset this.
Should I increase my FTIHX allocation if I'm from another country?
Personal circumstances matter. If you have family ties, property, or expected income streams in another country, you might want less U.S.-dollar-denominated exposure — which would argue for a higher FTIHX allocation. There's no universal right answer. Common allocations range from 20% to 40% international. What matters most is picking an allocation you're comfortable with and sticking to it through volatility.
Why is FTIHX more expensive than FSKAX?
International funds have higher operating costs: they must buy and sell on dozens of foreign exchanges, manage currency conversions, deal with different settlement systems, and handle foreign tax withholding. FSKAX only trades on U.S. exchanges, making it simpler and cheaper to run. Even so, FTIHX's 0.06% is extremely cheap for an international fund — most actively managed international funds charge 10–15x more.