FSKAX and FXAIX are two popular mutual funds offered by Fidelity, with FSKAX being the Fidelity Total Market Index Fund and FXAIX being the Fidelity 500 Index Fund. Both funds provide investors with exposure to the U.S. equity market, but there are some key differences between the two.
When you invest in a total stock market index fund like FSKAX, you are adding exposure to the entire U.S. equity market to your portfolio. This means you will have holdings in small-cap, mid-cap, and large-cap companies across all sectors. On the other hand, the Fidelity 500 Index Fund (FXAIX) tracks the S&P 500 index, which includes only 500 large-cap companies.
If you're having trouble choosing between FSKAX vs. FZROX, it's essential to know the similarities and differences between the two index funds. FZROX is another total market index fund offered by Fidelity, but it has a zero expense ratio. While FSKAX has a minimal expense ratio of 0.015%, FZROX has no expense ratio, making it an attractive option for cost-conscious investors.
FSKAX and VTSAX are two popular mutual funds offered by Fidelity and Vanguard, respectively. While both funds provide exposure to the entire U.S. equity market, there are some differences between the two. FSKAX has a slightly lower expense ratio than VTSAX, but VTSAX has a more extensive portfolio, with holdings in over 3,000 U.S. companies compared to FSKAX's 2,500.
Question: Why are there so many mutual funds? Answer: Mutual fund management is profitable, so Wall Street creates more products to sell. With so many options available, it can be challenging to choose the right mutual fund for your portfolio. However, it's essential to evaluate each option's performance, expense ratio, and holdings before making a decision.
When looking through Fidelity's fund options for your IRA, FSKAX and FXNAX are good options to start with. FXNAX is a total bond market index fund that provides exposure to the entire U.S. bond market, while FSKAX provides exposure to the entire U.S. equity market. These funds can help manage your tax-cost ratio while providing stock and bond exposure.
When you invest in a total stock market index fund, you are essentially buying a particular slice of the stock market, not just one or a few stocks. This provides diversification, reducing the risk of significant losses if one or a few companies in the fund underperform. Additionally, index funds typically provide broad market exposure and low costs. Fidelity is the fourth-largest asset-management firm in the U.S., making them a trusted provider of mutual funds.
Overall, FSKAX and FXAIX are both excellent mutual fund options for investors looking for exposure to the U.S. equity market. The right choice for you depends on your investment goals and risk tolerance. FSKAX provides broader exposure to the entire U.S. equity market, while FXAIX focuses on large-cap companies in the S&P 500 index. It's crucial to evaluate each fund's performance, expense ratio, and holdings before making a decision.