FENY vs VSMCX Fund Comparison

A comparison between FENY and VSMCX based on their expense ratio, growth, holdings and how well they match their benchmark performance.

Group Created with Sketch.

Minafi's Take on FENY vs VSMCX

Here's an in depth look at the differences between Fidelity MSCI Energy Index ETF ($FENY) and Invesco Small Cap Value Fund Class C ($VSMCX).

To start off, here's a look at the basics of each fund. Keep an eye on the FI Score. That's a custom score from 0 to 100 that we generate based on how good this fund is for the casual investor. Most investors only need a handful of total funds in their portfolio. The higher the score, the more likely this is one of those few. Score alone isn't enough! Keep reading on to see how different (or perhaps similar) these two funds are.

79% FI Score
  • feny
  • ETF
  • Sector Equity
  • Energy

Fidelity MSCI Energy Index ETF

Expenses: 0.08% (Better than 1% of similar funds)

This is an OK choice for a Energy Sector Equity fund. See why »

40% FI Score
  • vsmcx
  • Mutual Fund
  • US Stocks
  • Small Value

Invesco Small Cap Value Fund Class C

Expenses: 1.87% (Better than 0% of similar funds)

This is a bad choice for a Small Value US Stocks fund. See why »

$FENY is classified as an ETF while $VSMCX is classified as a Mutual Fund. Even though one of these is a mutual fund and the other is an ETF, that doesn't matter too much for their holdings. Both ETFs and mutual funds are just containers to hold lots of investments inside of them.

The biggest differences between these two is where they may be offered. ETFs are more widely availble from a larger number of investment apps and websites. Mutual funds, on the other hand, are generally offered by the platform they're issued by (Fidelity funds on Fidelity, Vanguard funds on Vanguard). Usually 401(k)'s will offer both ETFs and Mutual Funds. If you're investing outside of a 401(k), I'd recommend you verify the fees associated with ETF and mutual fund transactions. Some platforms charge an additional fee to purchase a mutual fund.

To learn more about the difference between these two, you can read about the difference between ETFs and Mutual Funds.

When evaluating a fund, the first things I look at are:

  • What it invests in
  • How much it charges in fees
  • How large the fund is

Let's look into these criteria one by one and see if either of these funds stands out.

Fund Holdings Comparison

Minafi's FI Score algorithm takes into account the category and market. The more niche a fund is, the lower the score. This doesn't mean it's a worse fund, but it does mean you should stop and make sure this a fund you need to diversify your portfolio.

FENY VSMCX
Market Score 8.5 /10 7.8 /10
Category Score 0.0 /10 5.0 /10
Total 8.5 12.8

A score of 10 means this is a solid market and category that almost every investor will want to have investments in. The lower the score, the more specific the investment. These scores are based on when most investors would add these funds to their portfolio. A score of 10 means that this fund (or one like it) belongs in a three-fund portfolio. The lower the score, the farther down in your portfolio a fund would go.

Winner: $VSMCX

Fee Comparison

Fees are one of the biggest killers of portfolio growth. The difference between a 2% fee and a 0.04% fee over 30 years can result in your portfolio having half the total value!

If you're just getting started investing and learning how fees impact your portfolio, I'd encourage you to read through my free investment course (specifically '2.2 - All About Fees') where I go over all the different types of fees you can be charged and how to lower them.

For these two funds, FENY has an expense ratio of 0.08% while VSMCX has an expense ratio of 1.87%.

Winner: $FENY

Fund Size Comparison

Both FENY and VSMCX have a similar number of assets under management. FENY has 460 Million in assets under management, while VSMCX has 967 Million.

Minafi categorizes both of these funds as large funds. Fund size is a good indication of how many other investors trust this fund. A large fund by itself doesn't mean it's a good fund, but it is one thing to consider when figuring out how to choose the right fund.

Winner: tie

Which Should You Choose? FENY or VSMCX?

Comparing these two funds isn't an apples to apples comparison. FENY is a Sector Equity Energy fund, while VSMCX is a US Stocks Small Value fund.

If you're aiming to build a diversified, low-fee, tax-optimized portfolio you likely won't be choosing between these two funds since they're different enough.

Running both of these funds through Minafi's FI Score algorithm, gives FENY a score of 79 and VSMCX a score of 40.

Winner: Neither, I'd research more funds if you're looking to invest for retirement.

$FENY

Fidelity MSCI Energy Index ETF

79

Read More
Ratings
Rating Type Rating
Diversification Score 8 /10
Expense Ratio Score 10 /10
Expense Rating 9 /10
Market Score 8 /10
Category Score 0 /10
Overview
Overview Details
Fund Type ETF
Inception Date Oct-21-2013
Exchange NYSE ARCA
Expense Ratio 0.084%
Net Assets 460 Million
Yield 9.90%
Holdings
Description Info
Market Sector Equity
Category Energy
Sectors
  • Basic Materials 0.00%
  • Communication Services 0.00%
  • Consumer Cyclicals 0.00%
  • Consumer Defensive 0.00%
  • Energy 99.94%
  • Financial Services 0.00%
  • Healthcare 0.00%
  • Industrials 0.06%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%
Regions
  • Europe Emerging 0.41%
  • North America 99.60%

$VSMCX

Invesco Small Cap Value Fund Class C

40

Read More
Ratings
Rating Type Rating
Expense Ratio Score 2 /10
Expense Rating 0 /10
Market Score 8 /10
Category Score 5 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Jun-21-1999
Exchange NMFQS
Expense Ratio 1.870%
Net Assets 967 Million
Yield 0.00%
Holdings
Description Info
Market US Stocks
Category Small Value
Sectors
  • Basic Materials 12.71%
  • Communication Services 0.00%
  • Consumer Cyclical 12.68%
  • Consumer Defensive 3.17%
  • Energy 3.46%
  • Financial Services 21.74%
  • Healthcare 0.00%
  • Industrials 39.76%
  • Real Estate 0.00%
  • Technology 5.90%
  • Utilities 0.58%
Regions
  • Asia Developed 3.58%
  • Asia Emerging 1.94%
  • Latin America 1.77%
  • North America 90.48%
  • United Kingdom 2.24%

Adam says: Learn how to confidently invest for retirement!

Join the Minafi Investor Bootcamp to see how.

This 10-course bootcamp starts at only $10 for everything!

Minafi - The intersection of FI, minimalism & mindfulness.

Don't miss out on new posts, courses, interactive articles and more!

Join & Get Your First Course Free

© 2024   Adam Fortuna

Site Map
Triangle Graduation Cap Angle Down Book regular Phone laptop regular fire regular fire regular search regular Acorn duotone Seedling duotone thumbs down duo