When it comes to choosing between FSKAX and FXAIX it’s like picking two contenders in a boxing match . They have their similarities and differences and investors are often left wondering which one packs the strongest punch . So let’s step into the ring and compare these two Fidelity funds.
FXAIX vs FSKAX : The Showdown
In one corner we have FSKAX tracking the total U.S. market return . It’s like a wide net cast over 80% of the U.S. Total Stock Market Index making it a heavyweight with a staggering 3,875 holdings . In the other corner we have FXAIX focusing on the S&P 500 Index the cream of the crop . It’s a bit leaner with 508 stocks in its arsenal . Now let’s see how they fare against each other.
Performance : FXAIX vs FSKAX
When it comes to performance these contenders have been neck and neck for the past decade . FXAIX may have a slight edge with returns just 0.29% higher annually . But let’s be honest that’s like winning by a hair . So in terms of performance it’s pretty much a draw.
Key Metrics : A Mutual Fund Faceoff
Both FSKAX and FXAIX are rockstar mutual funds . They’ve earned their stripes and gained a massive fan following . They both belong to the large U.S. stock blend category aiming to mimic the performance of the U.S. stock market . As flagships of Fidelity they share similar holdings , minimum investment requirements and expense ratios . It’s no surprise that they’re often seen in the same ring battling it out for investors’ attention.
Fund Size : The Size Matters Factor
Here’s where the contenders differ . FSKAX manages a respectable $45 billion in assets but FXAIX takes the crown with an impressive $224 billion . Size does matter in the world of funds as it reflects the trust and confidence other investors have placed in them . While a large fund doesn’t guarantee superiority it certainly adds weight to the decision making process.
Understanding Mutual Funds : Let’s Break It Down
Before we continue analyzing FSKAX and FXAIX let’s take a breather and understand what mutual funds are all about . Picture a group of investors pooling their money into a fund that invests in a mix of securities like stocks , bonds and short term debts . It’s like a team effort with the fund doing the heavy lifting of investing in these securities on behalf of the investors . The profits made by the fund are then distributed among the investors . It’s a win win situation offering diversification , low costs and easy access to your money when needed.
FSKAX : The Total Market Dynamo
FSKAX is like the broad market champion mirroring the Dow Jones U.S. Total Stock Market . With over 3,000 stocks in its lineup it’s got diversity for days . Since its inception in 1997 FSKAX has been a consistent performer impressing investors with its low expense ratio of 0.015% . It’s the kind of fund that delivers a knockout blow with its nearly 20% return almost double that of FXAIX . Its secret a well diversified portfolio that covers multiple sectors and has outperformed its index and the large blend category over the years.
FXAIX : The S&P 500 Contender
If you’re craving the top companies across sectors FXAIX is your go to fighter . This large blend fund aims to replicate the performance of the S&P 500 Index capturing about 80% of its holdings . With an expense ratio of 0.015% , it’s a cost effective way to gain exposure to the crème de la crème of U.S. stocks . It’s like going toe to toe with the S&P 500 mimicking its every move . And it shows in its one year return which mirrors the performance of the index . If you prefer a similar ETF option VOO is the one to check out.
The Verdict : FXAIX vs FSKAX
In the battle between FSKAX vs FXAIX it’s challenging to declare a clear winner . Both funds have their strengths and have delivered solid performance over the years . The choice boils down to your investment goals , risk tolerance and preference for diversification . Do you want broad exposure to the U.S. market or a more focused approach with the S&P 500 ? The decision is yours to make.
So step into the ring , do your research and make an informed choice . Remember in the world of investments it’s not always about picking a winner but finding the fund that aligns best with your financial goals .
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