FSTA vs VO Fund Comparison

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

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Minafi's Take on FSTA vs VO

Here's an in depth look at the differences between Fidelity MSCI Consumer Staples Index ETF ($FSTA) and Vanguard Mid-Cap Index Fund ETF Shares ($VO).

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
  • fsta
  • ETF
  • Sector Equity
  • Consumer Defensive

Fidelity MSCI Consumer Staples Index ETF

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

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

88% FI Score
  • vo
  • ETF
  • US Stocks
  • Mid-Cap Blend

Vanguard Mid-Cap Index Fund ETF Shares

Expenses: 0.04% (Better than 1% of similar funds)

This is an OK choice for a Mid-Cap Blend US Stocks fund. See why »

Both $FSTA and $VO are categorized as ETFs. ETFs have an added bonus over mutual funds of being more widely available. Mutual funds are often limited to only the issuing investment brokerage. Since these are both ETFs, you may be able to find these at a wider number of investment apps and websites.

The biggest disadvantage of ETFs is that some platforms only allow you to purchase ETFs in whole shares. So if an ETF is going for $75, you may need to invest in increments of $75. Most 401(k)'s allow for investing down to the penny, but you'll want to verify your platform allows for "fractional ETF Shares".

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.

FSTA VO
Market Score 7.8 /10 9.9 /10
Category Score 0.0 /10 5.0 /10
Total 7.8 14.9

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.

For each fund we've created a "diversification score" – a metric to indicate how closely each funds asset allocation matches it's benchmark. For example, an S&P 500 fund would have a diversification score of 10 if it's fully in line with the actual S&P 500.

The diversification score for FSTA is 9.1/10, while VO has a diversification score of 7.2/10.

In other words, FSTA more closely matches it's benchmark.

Winner: $VO

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, FSTA has an expense ratio of 0.08% while VO has an expense ratio of 0.04%. In this case, both of these funds have a similar fee.

Winner: $VO (barely)

Fund Size Comparison

Both FSTA and VO have a similar number of assets under management. FSTA has 639 Million in assets under management, while VO has 105 Billion.

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? FSTA or VO?

Comparing these two funds isn't an apples to apples comparison. FSTA is a Sector Equity Consumer Defensive fund, while VO is a US Stocks Mid-Cap Blend 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 FSTA a score of 79 and VO a score of 88.

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

$FSTA

Fidelity MSCI Consumer Staples Index ETF

79

Read More
Ratings
Rating Type Rating
Diversification Score 9 /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 639 Million
Yield 2.72%
Holdings
Description Info
Market Sector Equity
Category Consumer Defensive
Sectors
  • Basic Materials 0.13%
  • Communication Services 0.00%
  • Consumer Cyclicals 0.06%
  • Consumer Defensive 97.89%
  • Energy 0.00%
  • Financial Services 0.00%
  • Healthcare 1.72%
  • Industrials 0.19%
  • Real Estate 0.00%
  • Technology 0.00%
  • Utilities 0.00%
Regions
  • North America 100.00%

$VO

Vanguard Mid-Cap Index Fund ETF Shares

88

Read More
Ratings
Rating Type Rating
Diversification Score 7 /10
Expense Ratio Score 10 /10
Expense Rating 10 /10
Market Score 10 /10
Category Score 5 /10
Overview
Overview Details
Fund Type ETF
Inception Date May-21-1998
Exchange NYSE ARCA
Expense Ratio 0.040%
Net Assets 105 Billion
Yield 1.76%
Holdings
Description Info
Market US Stocks
Category Mid-Cap Blend
Sectors
  • Basic Materials 4.69%
  • Communication Services 5.58%
  • Consumer Cyclicals 11.67%
  • Consumer Defensive 4.34%
  • Energy 2.81%
  • Financial Services 10.93%
  • Healthcare 13.11%
  • Industrials 12.26%
  • Real Estate 9.28%
  • Technology 18.60%
  • Utilities 6.73%
Regions
  • Asia Developed 0.30%
  • Asia Emerging 0.48%
  • Europe Developed 0.31%
  • North America 98.08%
  • United Kingdom 0.84%

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