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.
## Introduction to 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 you out, we have reviewed both funds individually to give you a good idea of their performance over the years. By the end of this review, you should be able to make up your mind about which of the duo to invest your money into.
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## What is 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 holdings in common stocks listed in the Dow Jones Stock Market Index. By investing in FSKAX, you gain access to a broad range of assets—over 3,000 different stocks—at a low cost.
FSKAX also serves as a core fund for many portfolio managers due to its solid track record. With investments spread across a broad range of stocks, your portfolio is better protected from market volatility caused by a few stocks or industries.
Currently, FSKAX has a combined asset value of $77.51 billion spread across 3,964 different holdings. Many of these are Dow Jones Total Stock Market Index stocks, including notable companies like Microsoft, Apple, Alphabet, Berkshire Hathaway, and more.
Fidelity Investments has built a strong reputation over more than three decades as one of the most successful creators and managers of index funds. Their funds span thousands of equities listed in the US stock market, covering small to large-cap stocks.
By distributing investments across different stock ranges, FSKAX has outperformed many other funds over the years. Its strong performance has made it a popular choice for retirement fund investments.
In the last decade, FSKAX has outperformed about 80% of mutual funds in the market. It is actively managed and features a very low expense ratio.
If you are looking for a fund that invests in large and small-cap stocks with potential to increase in value, FSKAX is one of the best funds available today.
### Top 10 Holdings of FSKAX
_(Insert table or list of top 10 holdings here)_
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## What is VTI? Vanguard Total Stock Market ETF
VTI, or Vanguard Total Stock Market ETF, is an ETF that tracks the performance of the entire US stock market. It follows the CRSP US Total Market Index.
Created by Vanguard Securities—the largest asset management company in the US—VTI seeks to deliver healthy returns through investment in a variety of securities. This ETF is ideal for investors seeking total market exposure and a balanced portfolio.
VTI invests in different individual stocks, ranging from small-cap to mid-cap and large-cap companies. It does not place heavy emphasis on any particular stock category or industry, offering a broad investment strategy.
The ETF is passively managed and tracks the US stock market broadly, including many stocks from the Dow Jones Index. Since its inception in 2001, VTI has expanded its capitalization and reach in the stock market significantly.
Many investors favor VTI because it is well-diversified with large market capitalization. It also remains one of the most widely held ETFs by investors today and is actively traded on multiple trading platforms.
VTI features a very low expense ratio of 0.03% and a low turnover rate, attributes that make it attractive for long-term investments.
### Top 10 Holdings of VTI
_(Insert table or list of top 10 holdings here)_
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## FSKAX vs. VTI: Key Differences
Both FSKAX and VTI are excellent assets for long-term investments, but they have some differences worth noting.
– **Issuer**: FSKAX is issued by Fidelity Investments, while VTI is issued by Vanguard.
– **Expense Ratio**: FSKAX has a slightly lower expense ratio of 0.02%, compared to VTI’s 0.03%.
– **Fund Type**: FSKAX is a mutual fund, whereas VTI is an ETF.
– **Holdings**: Both funds invest in similar stocks, with thousands of assets covering small to large-cap companies.
Despite these differences, they both provide broad exposure to the US stock market with strong diversification.
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## Composition Differences
Here is a summary of the compositional differences between FSKAX and VTI:
_(Insert comparison table here showing fund composition, number of holdings, market capitalization breakdown, etc.)_
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## Performance Differences
Let’s look at how these funds have performed over the years:
### FSKAX Performance & Returns
_(Insert performance data, charts, or summary)_
### VTI Performance & Returns
_(Insert performance data, charts, or summary)_
Both funds have posted competitive returns, reinforcing their status as top choices for investors seeking total market exposure.
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## Fees Comparison: FSKAX vs. VTI
The fees of FSKAX vs. VTI are very close:
– FSKAX has an expense ratio of 0.02%
– VTI has an expense ratio of 0.03%
This minor difference in fees is unlikely to be a decisive factor when choosing one over the other.
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## Frequently Asked Questions (FAQs)
**Is FSKAX better than VTI?**
That depends on your preference. Both are excellent long-term investments. FSKAX manages about $77.51 billion in assets, while VTI’s assets under management total approximately $1.26 trillion. Both have a history of strong returns.
**Is FSKAX the same as VTI?**
No. FSKAX is issued by Fidelity, and VTI is issued by Vanguard. However, they track similar indexes and offer comparable returns. Another minor difference is in their expense ratios—FSKAX at 0.02% and VTI at 0.03%.
**Is VTI a good investment?**
Yes. VTI offers broad diversification across thousands of stocks with a low expense ratio and low risk compared to many other market assets, making it a solid investment choice.
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## FSKAX vs. VTI: Which One Should You Choose?
After reviewing both funds, which one stands out?
Investing is essential for growing your finances and achieving financial independence. Both FSKAX and VTI have the potential to enhance your portfolio.
Your choice should depend on your current financial situation and long-term goals. Consider which fund aligns better with your investment strategy and risk tolerance.
What truly matters is that you start investing now to secure a better financial future.
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## Related Reads
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Start your investment journey today with confidence by choosing a fund that fits your needs—whether FSKAX or VTI, both are excellent choices for broad market exposure.
https://radicalfire.com/fskax-vs-vti/
