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Discuss Latest WCI Blog Post: FSKAX vs. VTSAX: What Is the Best Total Stock Market Index Fund?

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  • Discuss Latest WCI Blog Post: FSKAX vs. VTSAX: What Is the Best Total Stock Market Index Fund?

    FSKAX and VTSAX are two popular mutual funds offered by Fidelity and Vanguard, respectively. Learn the differences between the two funds.

    The post FSKAX vs. VTSAX: What Is the Best Total Stock Market Index Fund? appeared first on The White Coat Investor - Investing & Personal Finance for Doctors.

    Click here to view the article!
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  • #2
    As someone who recently started diving into understanding my financial landscape better, this article was a nice step-by-step look at FSKAX and VTSAX. For those who are well-versed in investing and considering funds, maybe the article comes across as basic, but for me it was helpful to see the comparison and discussion points made.

    Takeaway seems clear... the only way to go wrong between the two would be getting stuck in analysis paralysis and not investing.


    • #3
      This article is missing one important piece of information. When holding these two mutual funds in taxable accounts.

      Vanguard has a patent that allows them to operate an ETF and mutual index fund as different share classes of the same investment trust. This allows the ETF to leak most of the capital gains. This allows such paired mutual index funds to minimize capital gains distributions.

      That patent expires in about one year, but reports indicate the SEC is prepared to slow walk any approvals. It is not clear any rivals will immediately be trying to offer competitive products.
      Last edited by spiritrider; 05-03-2022, 08:34 AM.


      • #4
        The “mistake” would be a mismatch, MF in the other’s brokerage account.
        Might get hit with a front side transaction fee.
        If you are at Vanguard, use Vanguard MF.
        If you are at Fidelity, use Fidelity MF.

        $49.95 on each purchase and short term trading fees possible (less than 60 days).
        These are brokerage related , not related to the funds.
        Two purchases a month will be annual cost of $1200. Quite a bit for a low cost investor.


        • #5
          I stopped caring enough to split hairs about which is the best index fund, but I read on bogleheads that securities lending revenue was one of the secret sauces behind why Vanguard funds outperformed their competitors, enough to make up for the slightly higher ER.


          • #6
            I’m sticking with Vanguard ‘cause all my stuff is there!