Besides performance, are there any other factors that we should take into account?
The answer is yes. You also want to look at their expense ratios and holdings.
FZROX: Fidelity ZERO Total Market Index Fund
The Fidelity ZERO Total Market Index Fund (FZROX) is a mutual fund that tracks the total stock market.
It is offered by Fidelity Investments, one of the largest asset managers in the world.
The fund has no expense ratio, meaning it does not charge any fees to investors. This makes FZROX one of the most cost-effective ways to invest in the stock market.
FZROX is also well-diversified, with investments in large-, mid-, and small-cap stocks. It has a good mix of growth and value stocks.
VTSAX: Vanguard Total Stock Market Index Fund
The Vanguard Total Stock Market Index Fund (VTSAX) is a low-cost mutual fund that tracks the entire U.S. stock market.
VTSAX offers investors a simple and efficient way to gain broad exposure to the U.S. stock market without picking individual stocks.
The fund has a very low expense ratio of just 0.04% and a relatively low turnover rate, which further reduces its costs.
FZROX vs. VTSAX: Comparison Details
|Funds||Fidelity® ZERO Total Market Index Fund||Vanguard Total Stock Market Index Fund Admiral Shares|
|3-year total return||+25.81%||+25.77%|
|3-year standard deviation||18.21%||18.16%|
|Min. initial investment||0.00||3,000.00|
|Net expense ratio||0.00%||0.04%|
|Total net assets||13.26bn USD||341.73bn USD|
|Morningstar category||Large Blend||Large Blend|
FZROX vs VTSAX: Key differences
The biggest difference between FZROX and VTSAX is the expense ratio.
There is no cost to investors for putting money into FZROX, whereas there is a 0.04% expense ratio for VTSAX. With every $10,000 invested, you’re paying VTSAX $4.
FZROX vs. VTSAX: Which one is better?
FZROX and VTSAX are highly identical, from performance to holdings. If you don’t want to pay a management fee, then go with the Fidelity ZERO Total Market Index Fund (FZROX).
Johnny M wrote — Feb 8, 2019
Imran M wrote — Nov 9, 2019
Judy H wrote — Nov 9, 2019
Vanguard Funds That are Similar to VTSAX
- VITSX: Total Stock Market Index Fund Institutional Shares
- VRTTX: Russell 3000 Index Fund Institutional Shares
- VSMPX: Total Stock Market Index Fund Institutional Plus Shares