FXAIX vs VTSAX: All You Need To Know

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In this article, we will explore the difference between FXAIX vs VTSAX.

Choosing between Vanguard's Total Stock Market Index Fund (VTSAX) and Fidelity's 500 Index Fund (FXAIX) can be challenging.

This comparison will make it easy to decide which is right for you.

FXAIX vs VTSAX

The main difference between FXAIX and VTSAX is the company that offers the fund. Fidelity offers FXAIX, while Vanguard offers VTSAX. They also track different indexes, with VTSAX tracking the CRSP US Total Market Index while FXAIX tracking the S&P 500 index.

Vanguard offers VTSAX

Fidelity offers FXAIX

Another difference between VTSAX and FXAIX is their expense ratio. Both have low expense ratios, but FXAIX is among the lowest in the industry.

VTSAX Has An Expense Ratio Of 0.04%

FXAIX Has An Expense Ratio Of 0.015%

They are both mutual funds instead of Exchange Traded Funds (ETFs). However, VTSAX has an equivalent ETF, Vanguard Total Stock Market Index Fund ETF (VTI).

FXAIX

Tracks the S&P 500 Index
Expense Ratio: 0.015%
Holds 508 stocks

VTSAX

Tracks the CRSP US Total Market Index
Expense Ratio: 0.04%
$3,000 minimum initial investment
Holds 3,535 stocks

Lastly, FXAIX has 508 holdings compared to 3,535, with VTSAX making VTSAX more diversified.

Now, let's keep comparing VTSAX and FXAIX.

FXAIX vs VTSAX Performance

FXAIX and VTSAX have had similar performance returns over the last 10 years.

Fidelity's FXAIX has had slightly better returns averaging 11.84% annually than 11.31%.

Here is FXAIX vs VTSAX performance chart:

As you can see from the chart, they perform similarly, with FXAIX outperforming slightly.

FXAIX and VTSAX Holdings

FXAIX and VTSAX hold different companies. Fidelity's FXAIX holds 508 companies focusing on large-caps, the same as the S&P 500. VTSAX holds 3,535 companies focusing on the U.S. Total Market Index and owns more mid-cap and small-cap companies.

Below are the top ten holdings of FXAIX vs VTSAX.

As you can see, there is a lot of overlap.

However, the top 10 holdings for FXAIX make up 25% of its portfolio, while it makes up 21% for VTSAX.

This makes VTSAX more diversified.

FXAIX Overview

Fund Inception: 1988
10-Year Performance 16.54%
Expense Ratio: 0.015%
Number Of Stocks: 508
Top 10 Holdings: 29.29%
Yield 1.30%

Fidelity 500 Index Fund (FXAIX) is a fund that aims to invest at least 80% of assets in stocks that are in the S&P 500 Index.

The S&P 500 is a choice for many investors because of the opportunity to diversify their portfolios.

This diversification makes FXAIX a good option for retirement.

FXAIX has $379 billion in net assets. This fund is well-liked by retail and institutional investors alike.

FXAIX Performance

Fidelity's FXAIX tracks at least 80% of the S&P 500 Index, so it will always closely follow the index's returns.

Here is FXAIX's performance over the last 10 years:

FXAIX Top 10 Holdings

Fidelity's FXAIX comprises Apple, Microsoft, Amazon, Alphabet, and Tesla and provides exposure to over 500 stocks.

Here are the top 10 holdings for FXAIX:

The top 10 holdings of FXAIX make up 29% of its portfolio.

VTSAX Profile

Fund Inception: 2000
Tracks the CRSP US Total Market Index
Expense Ratio: 0.04%
Vanguard Fund
Minimum Initial Investment: $3,000
Number Of Stocks: 3,535
Equivalent ETF (VTI)

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) represents close to 100% of the U.S. equity market that is publicly traded. It also tracks the CRSP U.S. Total Market Index.

Vanguard's VTSAX has an expense ratio of 0.04%.

This notably implies that the fund has limited exposure to several international stocks.

However, this does not affect the companies represented in the fund. These stocks have a significant international presence.

VTSAX Performance

Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX) is popular for many reasons, of which consistent returns are a major part.

VTSAX Holdings

Vanguard's VTSAX comprises Apple, Microsoft, Google, Amazon, and Tesla, providing exposure to over 3,500 stocks.

Here are the top 10 holdings for VTSAX:

Major sectors in the index include:

Healthcare
Technology
Consumer Services
Financials
Industrials

The top 10 holdings make up 25% of its total net assets.

$3,000 Minimum Investment

VTSAX used to have a minimum initial investment of $10,000, but this changed to $3,000 in 2018.

Once you save up the $3,000 minimum, each investment after that does not have a minimum.

You can avoid this minimum investment threshold through retirement account contributions or investing in Vanguard Total Stock Market ETF (VTI).

Is FXAIX The Same As S&P 500?

FXAIX is not the same as the S&P 500, but with a 10-year return of 16.37%, it resembles the returns provided by the S&P 500.

Fidelity's FXAIX tracks at least 80% of the S&P 500 Index, so it will always follow the Index's returns.

Here is FXAIX's performance over the last 10 years:

FXAIX expense ratio is 0.015%, which is low, and this fund does not have 12b1, front-end, or back-end sales fees.

VTSAX vs FXAIX Cost

Fees are one of the biggest killers of portfolio performance. Over 30 years, the difference between a 2% cost and a 0.04% fee might result in your portfolio losing half its value.

FXAIX has a 0.015% expense ratio, whereas VTSAX has a 0.04% expense ratio.

In this case, both of these funds have a similar cost.

The Vanguard Total Stock Market Index Fund Admiral (VTSAX) is less expensive than 96% of rival funds.

VTSAX has an expense ratio of 0.04%

FXAIX has an expense ratio of 0.015%

VTSAX vs FXAIX Size

One factor to consider when looking for assets to invest in is size. A vast fund does not imply that it is a good fund.

It is one factor to consider when determining the best fund.

VTSAX manages $1.2 trillion, and FXAIX manages $380 billion.

Which Is Better FXAIX or VTSAX?

FXAIX and VTSAX are similar in performance. In addition, FXAIX offers exposure to the S&P 500 at a lower expense ratio of 0.015%. However, if you are not a Fidelity investor, you must pay commissions to buy FXAIX.

VTSAX, on the other hand, can be purchased commission-free by purchasing its equivalent ETF (VTI) with Vanguard or M1 Finance. ***(Get $100 When You Use This Link)***

It is important investors buy FXAIX or VTSAX commission-free. Fees can take away from your portfolio returns and compound over time.

I expect FXAIX and VTSAX to perform similarly over the next 10 years. The expense ratio isn't a significant difference.

Is FXAIX a Good Fund?

If you are seeking exposure to the S&P 500, FXAIX is a good fund option consistent with low fees.

A good investment aims to replicate the target index returns at the lowest cost possible.

Therefore, investors should seek the lowest-cost fund that meets their investment goals.

Is FXAIX or VTSAX Better for Financial Independence?

FXAIX and VTSAX can get you to Financial Independence Retire Early (FIRE). They both have a similar return on investment and have rock-bottom expense ratios.

So, either option is an excellent investment for financial independence. I own both.

After keeping fees to a minimum, you can work on increasing your savings rate and prioritizing your investments.

Then, you will be well on your way to Financial Independence and Early Retirement!

Calculate Your FI Number With My Free FIRE Calculator

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My Winner: VTSAX

VTSAX and FXAIX are similar in dividend yield and annual returns. They also offer low fees.

Yet, VTSAX is a Vanguard fund, while FXAIX is a Fidelity fund. Vanguard's ownership structure provides an incentive to continue to offer low-cost options.

Fidelity is not guaranteed to keep their prices low. As a result, they could increase the expense ratio of FXAIX in the future.

This shouldn't discourage you from considering FXAIX, especially if you buy the fund through Fidelity.

The decision might come down to which brokerage you prefer.

If you already have an account at Vanguard, VTSAX might fit you best.

FXAIX is an excellent option to consider if you are with Fidelity.

Chris

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