I posted here yesterday and I think I have myself narrowed … VTSMX has a higher expense ratio than FSKAX (0.14% vs 0.02%). Already, there’s a ton of discussion about the new funds on Reddit and the Bogleheads forum. And no doubt, other firms will react. US Broad Market Indexes tend to be: VTSAX, FZROX, FSKAX, VTI, SCHB, SWTSX, ITOT. That said, the difference is splitting hairs. FZROX, because I want to support the ZERO fee model. Choose ETF or mutual fund depending on your account of investing (taxable vs tax advantaged). VTSMX has a lower 5-year return than FSKAX (13.53% vs 13.61%). However, you may want to see how small that tax advantage usually is. Reinvesting dividends is the same with ETFs. I would like to see it replace the >0 fee models used by other companies. This post will try to help inform people about the "ETF vs mutual fund" decision, and we're going to go through some examples, most notably ITOT (ETF) vs FZROX (mutual fund). Share your opinion and gain insight from other stock traders and investors. Introducing zero expense ratio index mutual funds, FZROX and FZILX available on August 3, 2018. My retirement funds are maxed out so I would like to invest around 10k to 20k in a taxable brokerage at Fidelity (where all my other accounts are). Also VTSAX has an ER of 0.04%, but because of Vanguards patent, the tax is comparable to an ETF, however I would pay a fee to hold it at Fidelity? Outside retirement accounts, an ETF is slightly more tax efficient. Terminology notes: … That is what I was wondering about the tax benefit, if maybe it is so small that it isn't really worth taking into consideration. " Already, there’s a ton of discussion about the new funds on Reddit and the Bogleheads … NEW 2 Fidelity index mutual funds FZROX and FZILX with a zero expense ratio. NEW 2 Fidelity index mutual funds FZROX and FZILX with a zero expense ratio. … Anything major I am missing? Press question mark to learn the rest of the keyboard shortcuts. ITOT and VTI both seem to have the same ER (0.03%) and if I'm not mistaken, both would be commission-free at Fidelity. Are all my conclusions correct? No single company makes up more than 4% of the overall portfolio. Do you find it inconvenient at all having accounts at both places? Posted by 2 days ago. This is not my emergency fund, it is just extra retirement money or possibly to be used for a house down payment 5 to 10 years from now. I just opened a Roth IRA with Fidelity, not sure which of these funds to put my money into. $0 for Fidelity funds and hundreds of other funds with no transaction fees. Fidelity … into more shares of the fund. What other things do I need to consider? Close. Bogleheads are die-hard fans of Jack Bogle and index fund investing in general - Jack Bogle founded Vanguard, is the father of index funds and an all-around inspiration for people who want to engage in … An initial $10,000 investment turns into $714,671 for FZROX and $733,569 for VTSAX, a difference of $18,898 or about 2.6%. "https://www.fool.com/investing/how-to-invest/etfs/etf-vs-index-fund.aspx. In taxable, ITOT tends to be the most tax efficient and the best overall even after all expenses are considered (just that much more tax efficient). Also VTSAX has an ER of 0.04%, but because of Vanguards patent, the tax is comparable to an ETF, however I would pay a fee to hold it at Fidelity? However if there truly is a tax advantage to the way the ETF is managed vs… 螺. Cookies help us deliver our Services. Somebody has to go in first, even if it means tracking errors. but also you cannot automatically reinvest dividends so I supposed that could be a bit inconvenient? fskax: $37,062 DJ US Total Stk Mkt Dow Jones U.S. Total Stock Market Index SM is a float-adjusted market capitalization-weighted index of all equity securities of U.S. headquartered companies with … Only had about 10 months worth of … Find the latest Fidelity Total Market Index Fun (FSKAX) stock discussion in Yahoo Finance's forum. My retirement funds are maxed out so I would like to invest around 10k to 20k in a taxable brokerage at Fidelity (where all my other accounts are). I just opened a Roth IRA with Fidelity, not sure which of these funds to put my money into. A rather large $75 per purchase if I remember correctly. For those hyper sensitive to expense ratios, this cost has the net effect of a 0.15% inefficiency to the market. 螺. FZROX, because I want to support the ZERO fee model. For something like a US total market fund, it may be fairly small (from memory, I believe FZROX would have to pay taxes on capital gains on less than one tenth of one percent of the fund's NAV for 2019 for example). Ultimately, FZROX and VTSAX should perform almost identically–I wouldn’t fret too much if buying one vs the other means having to open a different brokerage account or pay transaction fees. However, when an ETF pays a dividend, you'll need to use the proceeds to buy more shares, incurring additional commissions and wasted time logging in to your account to make a quick trade. There has to be a catch I'm not seeing? Below is the comparison between FSKAX … I don't think that's true. I wouldn't put them in a taxable account because they're not portable should you leave Fidelity. The fee would be on purchases, not just for having it in the account. A few thoughts. For those hyper sensitive to expense ratios, this cost has the net effect of a 0.15% inefficiency to the market. Dividends paid by index mutual funds can be automatically invested (fee-free!) Fidelity pulled a huge punch. No single company makes up more than 4% of the overall portfolio. The Fidelity ZERO Total Market Index Fund (NASDAQMUTFUND:FZROX), and funds like it, essentially invest in every single company listed on U.S. markets with only a few exceptions. Start a 14-day free trial to Morningstar Premium to … Press J to jump to the feed. Many investors ask whether it is sufficient to invest in an S&P 500 fund such as FXAIX. You can automatically reinvest dividends from ETFs at Fidelity. I think some on here have said that shares of FZROX do not port over to other brokerage companies so if you wanted to switch companies you'd have to sell your shares. Despite VTSAX’s 0.04% expense ratio, VTSAX only trails the market by 0.07%, less than half that of FZROX. The two funds follow different indexes: FZROX follows a Fidelity proprietary index; FSKAX follows a DJ index. Thank you. Find the latest Fidelity Total Market Index Fun (FSKAX) stock quote, history, news and other vital information to help you with your stock trading and investing. Are you maybe thinking of auto-investing (you set up a withdrawal from your bank account and have it automatically purchase more of the fund)? FSKAX and FXAIX have the same expense ratio (0.02%). Somebody has to go in first, even if it means tracking errors. Despite VTSAX’s 0.04% expense ratio, VTSAX only trails the market by 0.07%, less than half that of FZROX… All other things being equal, I would prefer to invest in the total stock market, because of its exposure to the entire stock market, including small-cap and mid-cap stocks. I’ve always concluded funds vs. ETF’s are pretty much equal aside from this difference from my research. You may, but again, those extra taxes might only be a short lived disadvantage (I believe I've seen Vanguard's patents expire in the next few years) and might not be large enough to really worry about. I would like to see it replace the >0 fee models used by other companies. Choose ETF or mutual fund depending on your account of investing (taxable vs tax advantaged). Cookies help us deliver our Services. into more shares of the fund. The gist is that the Zero funds are too new to give any kind of extensive analysis, but they are probably good enough for a tax advantaged account. Any value in FZROX over FSKAX? … $0 for Fidelity funds and hundreds of other funds with no transaction fees. I do actually own >0 FZROX and =0 FSKAX, so my money is where my mouth is. See Fidelity® Total Market Index Fund (FSKAX) mutual fund ratings from all the top fund analysts in one place. ITOT vs VTI vs FSKAX vs FZROX vs VTSAX for a Fidelity Brokerage. I have read that ETFs have tax advantages over index funds. My question is, are there any major pros/cons between purchasing ITOT, VTI, FSKAX, FZROX, or VTSAX? Dividend distributions compound the issue of the differences between how ETFs and index funds are bought and sold. I see that they are both total market, and the Fidelity Zero option has different weightings and no expense ratio. The market has a way of rebounding as fast as it dips. There’s a lot to unpack here. Any value in FZROX over FSKAX? The main difference though seems to be that FZROX has more difficulty tracking its benchmark. My retirement funds are maxed out so I would like to invest around 10k to 20k in a taxable brokerage at Fidelity (where all my other accounts are). The lending counts as an additional risk on top of the fund risk, though it seems unlikely to be a very real risk. ITOT vs VTI vs FSKAX vs FZROX vs VTSAX for a Fidelity Brokerage. A few thoughts. Overall, I think the stock symbol says it all: Fidelity Zero ROX (FZROX)! The Zero funds use securities lending to make up for the lack of a fee, which is actually periodically profitable to Fidelity and ends up counting as an inverse fee — you can see that FZROX actually performs a couple of basis points better than FSKAX before fees, for example, which you'd not expect otherwise. Differences long term are probably within like 0.15% CAVG. Fidelity pulled a huge punch. All other things being equal, I would prefer to invest in the total stock market, because … Compare and contrast: VTSMX vs FSKAX. In a regular account: … https://www.fool.com/investing/how-to-invest/etfs/etf-vs-index-fund.aspx. By using our Services or clicking I agree, you agree to our use of cookies. FXAIX vs. FSKAX. fzrox: $13,377 F US Total Investable Mkt The Fidelity U.S. Total Investable Market Index, is a float-adjusted market capitalization-weighted index designed to reflect the performance of the U.S. equity market, including large-, mid- and small-capitalization stocks. I really like this comment from Reddit user ChekovsWorm: I do actually own >0 FZROX and =0 FSKAX… There’s a lot to unpack here. Fidelity also offers a newer Fidelity ZERO Total Market Index Fund (FZROX) with 0% expense ratio. Press J to jump to the feed. 9 9. Just don't buy VTSAX on Fidelity brokerage cause that has an unnecessary fee (since the mutual fund is not from Fidelity). Bogleheads are die-hard fans of Jack Bogle and index fund investing in general - Jack Bogle founded Vanguard, is the father of index funds and an all-around inspiration for people who want to engage in passive investments (generally stocks and bonds) for a long-term return that will beat active alternatives. 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