When planning for long-term finances, many people focus on mutual funds. Two popular options are FSKAX and VTSAX. Let’s dive into these funds to see which one might suit your plans better.
We’ll give you a thorough analysis of both funds, hoping to help you make a clear choice between them.
Investing in total index stock funds like FSKAX and VTSAX is akin to owning the entire US equity market. These mutual funds include all market stocks, particularly those from Fortune 500 companies. By investing in mutual funds, you put money in now with the hope of future gains. Reports from top financial publications often highlight the strong performance of funds like FSKAX and VTSAX over the years. They have low expense ratios and use different methods to track the US stock market.
Because of their consistent results, FSKAX and VTSAX are solid options for retirement portfolios. They are also tax-efficient. A small investment today could yield good returns over time.
Let’s start our review of FSKAX and VTSAX.
FSKAX, or Fidelity Total Market Index Fund, is a mutual fund created by Fidelity Investments, a leading stock brokerage firm. FSKAX has performed well since its inception and is one of Fidelity’s most successful funds. It invests in a broad range of US stocks, spreading its assets across common stocks listed in the Dow Jones. The Dow Jones index represents about 80% of the total equity market.
FSKAX has a low expense ratio of 0.04% and holds over 3,000 stocks, making it highly diversified.
VTSAX, or Vanguard Total Stock Market Index Fund Admiral Shares, is another top-performing mutual fund by Vanguard Securities. It measures the investment returns of stocks across the entire market using the CRSP Total Market Index. Vanguard Securities is a respected investment firm, much like Fidelity. VTSAX provides exposure to the US stock market, allowing you to own a fraction of stocks in all listed companies with minimal investment.
VTSAX holds stocks worth about $1.3 trillion across 4,124 companies, making it highly capitalized. It also has a low expense ratio of 0.04%, making it attractive to investors. The only downside is a minimum investment requirement of $3,000. However, its diversified holdings across various industries reduce risks.
Since its launch in 1992, Vanguard has been successful, becoming the largest mutual funds provider in the US. VTSAX is one of their most successful funds due to its low cost and high returns.
FSKAX and VTSAX are similar as they are both mutual funds, but they track different indexes. FSKAX tracks the Dow Jones, while VTSAX tracks the CRSP index. FSKAX is managed by Fidelity Investments, and VTSAX by Vanguard. FSKAX has a slightly lower expense ratio (0.02%) compared to VTSAX (0.04%).
Both funds have performed similarly over the past few years and have low expense ratios, which is beneficial as it means you won’t lose a significant portion of your earnings to commission fees.
Now that you know the details about FSKAX and VTSAX, consider which one aligns better with your financial goals. Assess your personal finances, as these investments require time to yield dividends. Conduct due diligence to make an informed decision. Remember, even small investments can grow your wealth over time. Start your investment journey now to realize your financial dreams sooner.