If you are conversant with online investing and securities in general, you may have come across FSKAX vs. VTI debates. But which investment product is better? Let’s find out and get to know more about FSKAX and VTI.
FSKAX and VTI are two different funds offered to investors by different portfolio managers. FSKAX was created by Fidelity Investments, while VTI was created by Vanguard Securities, two successful asset management firms in their own right.
Due to their similarities, many people who are new to investing have difficulty deciding which one to invest in. To help them out, we decided to review both funds individually to give you a good idea of their performance over the years.
By the end of the review, you should be able to make up your mind about which of the duo to invest your money into.
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FSKAX: Fidelity® Total Market Index Fund
FSKAX or Fidelity Total Market Index Fund is an index fund created by Fidelity Investments. This fund seeks to invest in a broad range of assets in the US stock market, emphasizing high-performance stocks of blue-chip companies. FSKAX invests about 80% of its investment in common stocks listed in the Dow Jones Stock Market Index.
If you invest in FSKAX, you can access a broad range of assets over 3,000 different stocks at a low cost.
FSKAX also serves as a core fund for many fund managers because it has a solid track record. With investments spread over a broad range of stocks, your portfolio is protected from market volatility caused by a few stocks or industries.
FSKAX has a combined asset value of $77.51 billion spread across 3,964 different asset holdings. Most of them are Dow Jones Total Stock Market Index stocks, with some notable ones including Microsoft, Apple, Alphabet, Berkshire Hathaway, and many more.
For those who have tracked Fidelity Investments as an asset management company for years, you will agree that they have built quite a reputation for being one of the most successful index fund creators and managers over the last three decades. Fidelity is also one of the largest creators of index funds in the US.
Their funds cover thousands of equities listed in the US stock market, from small to large index stocks. By spreading it across different stock ranges, FSKAX has outperformed many other funds over the years.
Its high-performance record has made it a top fund for people looking to invest in a retirement fund for the future. Over the last decade, FSKAX has also outperformed about 80% of mutual funds in the market. That alone makes it one of Fidelity Investment’s most successful funds to date. Managers actively manage it, and it has a very low expense ratio.
So if you are looking for a fund that invests in large and small-cap stocks that have the potential to increase in value in the not-too-distant future, FSKAX is one of the best funds available today.
Let’s review FSKAX top 10 holdings below:
|Meta Platforms Inc. Class A||1.81%|
|Alphabet Inc. Class A||1.62%|
|Alphabet Inc. Class C||1.59%|
|Berkshire Hathaway Inc. Class B||1.26%|
|JPMorgan Chase & Co.||1.14%|
|Johnson & Johnson||1.02%|
VTI: Vanguard Total Stock Market ETF
VTI or Vanguard Total Stock Market ETF is an ETF. This asset tracks the performance benchmark of overall returns of not a few stocks but the entire US stock market. The stocks tracked by VTI are under the CRSP US Total Market Index. VTI is a creation of Vanguard Securities, the largest asset management company in the US.
Investing in a host of securities, it seeks to deliver healthy returns to investors. This ETF is an excellent choice for traders looking for total market exposure and a balanced portfolio. It invests in individual stocks of different kinds, from small to mid to large-cap stocks. It offers a broad investment strategy with no particular emphasis placed on many stock categories of industry.
VTI is passively managed and tracks stocks broadly, especially stocks from the Dow Jones. It has done quite well over its long shelf life and continues to do so. And investors have many reasons for investing in it. They find it quite attractive because it is well-diversified and has a large market capitalization.
Since its creation in 2001, it has expanded its capitalization and reach in the stock market.
You will find small, mid-size, and large-cap company stock in VTI. It will also interest you to note that it remains one of the most held ETFs by investors today. Let’s not forget that it is also traded on trading platforms, so it is well circulated.
VTI has a very low expense ratio of 0.03% and a low turnover rate. It has several features that make it an attractive instrument for those investing in ETFs. When you consider its low expense ratio, low turnover, long-term investment prospects, and diversification level, you get to understand why many find it so.
Let’s review VTI’s top 10 holdings in the table below:
|Meta Platforms Inc.||1.60%|
|Berkshire Hathaway Inc.||1.20%|
|Johnson & Johnson||1.00%|
|UnitedHealth Group Inc.||1.00%|
FSKAX Vs. VTI: Key Differences
FSKAX vs. VTI are assets for long-term investments, and they have several differences. For starters, FSKAX is a creation of Fidelity Investment, while VTI is a creation of Vanguard. Another difference has to do with their expense ratio.
FSKAX has a 0.02% expense ratio, while VTI’s ratio is 0.03%. Besides these differences, they are both alike because they invest in similar stocks.
FSKAX Vs. VTI: Composition Differences
What are the compositional differences between FSKAX vs. VTI. Let’s check the table below.
|Type||Index Fund||Index Fund|
|Segment||Total US Market||Total US Market|
|Net Assets||$77.51 billion||$1.26 trillion|
FSKAX Vs. VTI: Performance Differences
Let’s look at their performances over the years.
FSKAX Performance & Returns
VTI Performance & Returns
FSKAX Vs. VTI: Fees
The fees of FSKAX vs. VTI are not very different. FSKAX expense ratio is 0.02% and VTI expense ratio is 0.03%. While that differs slightly, it’ll probably not be enough to influence your choice of going with one over the other.
FSKAX Vs. VTI: Frequently Asked Questions
Here are some questions that might help you better understand FSKAX and VTI.
Is FSKAX Better Than VTI?
That will depend on your preference. However, they are both good long-term assets. FSKAX has about $77.51 billion assets under management. VTI has a total asset net worth of 1.26 trillion. Since their creation, they have posted healthy returns.
Is FSKAX The Same As VTI?
No, FSKAX is not the same as VTI. FSKAX is issued by Fidelity, while VTI is from Vanguard. Apart from that, they track the same index and have around the same returns. Another minor difference is the expense ratio, where VTI costs 0.03% per year and FSFAX 0.02% per year.
Is VTI A Good Investment?
Yes, VTI is a good investment. Due to extensive stock diversification across thousands of assets, it has a low expense ratio and low risk compared to other assets in the market.
FSKAX Vs. VTI: Which One Makes The Cut?
After all that has been said and done, which of these two funds stand out? Remember that investments, despite the challenges, are an important way to boost your finances. You only need to manage the risks that come along with these investments.
Now that you have been provided with the pros and cons, it’s now time to choose which of these funds will help your portfolio.
Both have the potential to help you as you go through your investment journey. You just need to check your current financial status to align which funds will help you out now and in the future. What is truly important is that you start investing and reach financial independence so that your future will surely be better.
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Founder of Spark Nomad, Radical FIRE, Journalist
- Expertise: Personal finance and travel content
- Education: Bachelor of Economics at Radboud University, Master in Finance at Radboud University, Minor in Economics at Chapman University.
- Over 200 articles, essays, and short stories published across the web.
Experience: Marjolein Dilven is a journalist and founder of Spark Nomad, a travel platform, and Radical FIRE, a personal finance platform. Marjolein has a finance and economics background with a master’s in Finance. She has quit her job to travel the world, documenting her travels on Spark Nomad to help people plan their travels. Marjolein Dilven has written for publications like MSN, Associated Press, CNBC, Town News syndicate, and more.