FSKAX vs VTSAX Fund Comparison

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

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Minafi's Take on FSKAX vs VTSAX

These two funds are the cornerstones of their businesses. Vanguard, the creator of $VTSAX, is the largest mutual fund company in the world. Fidelity, the creator of $FSKAX, is the second-largest in the world.

These two funds represent each brokerage’s efforts to create a US Total Market Mutual Fund. Both aim to invest in most publicly traded companies in the United States. $FSKAX invests in 3,532 companies – $VTSAX in 3,640, so about the same.

Both lean towards large cap companies. $FSKAX invests 22.3% in the 10 largest investments (like Apple, Microsoft, Amazon, Google, Facebook). $VTSAX invests 23.6% in their top 10 investments. In other words, they’re investing in roughly the same things in the same percentages.

So Which is Better?

To be honest – these two match each other as well as any two different funds can. The only minor difference between them is that $FSKAX charges a 0.02% expense ratio fee while $VTSAX charges a 0.04% expense ratio fee. While double the fee might sound like a lot, it’s double a very small number. If you have $1 million invested, that’s a fee of $200 vs $400.

Even with a higher fee, Vanguards $VTSAX has outperformed $FSKAX over the last decade by a razor-thin margin:

$VTSAX and $FSKAK performance over the last 10 years

In other words, even with a slightly higher fee, $VTSAX has performed slightly better. While we can’t know which will perform better in the future, you can count on both of these funds performing about as well as each other. It’s a coin a flip which will be a few bucks on top for any given timeframe.

Which Should You Choose?

If you’re investing at Vanguard, it makes sense to choose the Vanguard fund – $VTSAX.

If you’re investing at Fidelity, you’ll want to choose a Fidelity fund. $FSKAX is a great option and one that’s offered in a lot of 401(k)’s. If you have the option to choose ANY Fidelity fund, I’d recommend checking out $FZROX – Fidelity Zero Total Market Index Fund. It aims to invest in the same things as $FSKAX, but charges a 0% expense ratio. Compare $FSKAX vs $FZROX to learn more.

Once you’ve optimized your portfolio to where you’re choosing between a 0.04% fund a 0.02% fund and a 0.00% fund you’re in great shape! Whichever one you choose, you’re guaranteed to be in a solid fund.

Only one more though: if you’re planning to switch to one of these funds, keep in mind how much you’ll pay in taxes. If you’re investing in a 401(k), Roth IRA or IRA, then you’ll be able to move between these funds without paying taxes. If you’re doing this in a taxable account then you may need to pay capital gains on your earnings. Just something to keep in mind.

$FSKAX

Fidelity® Total Market Index Fund

98

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Ratings
Rating Type Rating
Expense Ratio Score 10 /10
Expense Rating 10 /10
Market Score 10 /10
Category Score 10 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Nov-5-1997
Exchange NMFQS
Expense Ratio 0.020%
Net Assets 45.5 Billion
Yield 1.89%
Holdings
Description Info
Market US Stocks
Category Large Blend
Sectors
  • Basic Materials 2.28%
  • Communication Services 10.04%
  • Consumer Cyclical 10.58%
  • Consumer Defensive 7.10%
  • Energy 2.85%
  • Financial Services 13.64%
  • Healthcare 15.63%
  • Industrials 8.87%
  • Real Estate 3.92%
  • Technology 21.94%
  • Utilities 3.15%
Regions
  • Asia Developed 0.05%
  • Asia Emerging 0.09%
  • Europe Developed 0.46%
  • Europe Emerging 0.01%
  • Latin America 0.03%
  • North America 98.80%
  • United Kingdom 0.57%

$VTSAX

Vanguard Total Stock Market Index Fund Admiral Shares

98

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Ratings
Rating Type Rating
Expense Ratio Score 10 /10
Expense Rating 10 /10
Market Score 10 /10
Category Score 10 /10
Overview
Overview Details
Fund Type Mutual Fund
Inception Date Apr-27-1992
Exchange NMFQS
Expense Ratio 0.040%
Net Assets 872 Billion
Yield 1.84%
Holdings
Description Info
Market US Stocks
Category Large Blend
Sectors
  • Basic Materials 2.33%
  • Communication Services 10.07%
  • Consumer Cyclical 11.07%
  • Consumer Defensive 6.75%
  • Energy 2.63%
  • Financial Services 12.97%
  • Healthcare 15.05%
  • Industrials 8.99%
  • Real Estate 3.86%
  • Technology 23.33%
  • Utilities 2.95%
Regions
  • Asia Developed 0.04%
  • Asia Emerging 0.10%
  • Europe Developed 0.21%
  • Latin America 0.02%
  • North America 99.13%
  • United Kingdom 0.50%

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