Vanguard Target Retirement 2060 Fund (VTTSX) is a popular choice for investors who want to retire between 2058 and 2062.
If you’re looking for an alternative to VTTSX, consider Fidelity Freedom® 2060 Fund (FDKVX).
This article outlines the key differences between VTTSX and FDKVX so that you can decide which one is right for your portfolio.
VTTSX: Vanguard Target Retirement 2060 Fund
VTTSX invests in a mix of domestic stocks (52%), foreign stocks (35%), and Bonds (10%).
As investors get closer to retirement, the fund will slowly invest more in bonds and less in stocks.
Its annual expense ratio of 0.08% is one of the lowest in its class, so you can be sure that it won’t eat away your gains.
What Is the Fidelity Equivalent of VTTSX?
The Fidelity equivalent of VTTSX is Fidelity Freedom® 2060 Fund (FDKVX).
FDKVX is a mutual fund that invests in Fidelity U.S. equity funds, international equity funds, and bond funds.
It has an expense ratio of 0.75% and $1 billion in assets under management.
VTTSX vs. FDKVX: Key differences
VTTSX’s expense ratio is 0.08%, while FDKVX’s is 0.75%. The Fidelity 2060 retirement fund is slightly more expensive.
The minimum investment for VTTSX is $1,000; however, FDKVX requires no minimum investment.
Over the last 5 years, VTTSX has had an average return of 6.03% annually. Like its Vanguard counterpart, FDKVX has done well, with 5.84% annually over the same period.
VTTSX vs. FDKVX: Which Is Better?
VTTSX and FDKVX share similar investment objectives.
From a fee perspective, VTTSX is cheaper than FDKVX by about 0.67%.
Almost everything else remains comparable.
If you prefer to invest your money through a broker like Fidelity, FDKVX could be an excellent alternative to the Vanguard 2060 Fund.