FSKAX VS. VTI – Which One Makes The Cut?

If you are conversant with online investing and securities in general, you may have come across debates comparing FSKAX vs. VTI. 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 decided to review 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 fund to invest your money into.

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### FSKAX: Fidelity® Total Market Index Fund

FSKAX, or the 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 U.S. stock market, focusing primarily on high-performance stocks of blue-chip companies.

– **Investment Focus**: FSKAX invests about 80% of its portfolio in common stocks listed in the Dow Jones Stock Market Index.
– **Diversification**: When you invest in FSKAX, you gain access to over 3,000 different stocks at a low cost.
– **Portfolio Size**: The fund manages around $77.51 billion spread across 3,964 different asset holdings.
– **Notable Holdings**: Include Microsoft, Apple, Alphabet, Berkshire Hathaway, among others.

Fidelity Investments has built a reputation as one of the most successful index fund creators and managers over the past three decades. FSKAX benefits from this expertise and has routinely outperformed many other funds.

Because of its diversification across small, mid, and large-cap stocks, FSKAX provides a protective shield against market volatility caused by fluctuations in individual stocks or sectors. Over the last decade, it has outperformed about 80% of mutual funds in the market — a testament to its strong track record.

**Expense Ratio and Management**: FSKAX is actively managed with a very low expense ratio of 0.02%, making it an appealing fund for those looking to invest in a retirement fund or long-term growth.

If you want a broad exposure to stocks with growth potential, FSKAX is one of the best options available today.

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### VTI: Vanguard Total Stock Market ETF

VTI, or the Vanguard Total Stock Market ETF, is an exchange-traded fund (ETF) that tracks the overall performance of the U.S. stock market by following the CRSP US Total Market Index.

– **Issuer**: Created by Vanguard Securities, the largest asset management company in the U.S.
– **Investment Scope**: VTI invests in a broad spectrum of individual stocks, including small, mid, and large-cap companies.
– **Diversification**: It offers a highly diversified portfolio with no particular emphasis on any single stock category or industry.
– **Fund Size**: VTI boasts an enormous asset base with a total net asset value of approximately $1.26 trillion.
– **Popularity**: It is among the most widely held ETFs by investors and is actively traded across many brokerage platforms.

VTI is passively managed with a very low turnover rate and an expense ratio of just 0.03%. Its broad diversification, low costs, and long-term focus make it an attractive choice for investors seeking total market exposure with balanced risk.

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### FSKAX vs. VTI: Key Differences

Despite minor differences, both funds invest in a very similar basket of U.S. stocks and aim to provide broad market exposure.

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### Performance Comparison

Both FSKAX and VTI have shown strong long-term performance, consistently delivering healthy returns that align closely with overall U.S. stock market gains. Due to the similarity in their underlying assets, their performance results tend to be very comparable.

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### Fees Comparison

– **FSKAX Expense Ratio**: 0.02%
– **VTI Expense Ratio**: 0.03%

While VTI’s expense ratio is slightly higher, the difference is minimal and unlikely to be a deciding factor for most investors.

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### Frequently Asked Questions

**Is FSKAX Better Than VTI?**
Both funds are excellent long-term investment options. FSKAX has about $77.51 billion in assets, while VTI holds approximately $1.26 trillion. Their returns and risk profiles are similar, so the choice largely depends on your personal preferences.

**Is FSKAX The Same As VTI?**
No. FSKAX is a mutual fund managed by Fidelity, while VTI is an ETF from Vanguard. Although they track similar indexes and have comparable returns, they differ slightly in expense ratios and management styles.

**Is VTI A Good Investment?**
Yes. VTI offers extensive stock diversification across thousands of assets, has a very low expense ratio, and represents an excellent option for long-term investors seeking broad exposure to the U.S. stock market.

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### Conclusion: Which One Makes the Cut?

After examining both funds, it is clear that FSKAX and VTI are both strong candidates for long-term investment portfolios. Each offers broad market exposure, diversification, and low costs.

Your choice between FSKAX vs. VTI should depend on your personal investment style, preferences for fund management (mutual fund vs. ETF), and the platform or account where you plan to invest.

What is truly important is that you start investing and manage your investment risks wisely. Building up your portfolio with either FSKAX or VTI can help you reach financial independence and secure a better financial future.

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