FSKAX

Careful-Jeweler7053

My (Fidelity) plan is to rebalance my net between FSKAX (exposed to SpaceX) and FXAIX (not exposed until SpaceX has been ion the exchange for 12 months and has had 4 consecutive quarters of profitability). I am currently 85% FSKAX (more stocks, hitherto less volatility. Moving that to 50%. I'm worried but I do not want to chase phantoms. This seems a good compromise.

wandererarkhamknight

Less than 1% is technically correct. It’s more like 0.1-0.2% in broad market based index funds like VTI/FSKAX. It will be just a noise even if it goes down to $0 after IPO.

Suspicious-Fish7281

I went with total world market funds. I seek to own all the stocks and not just the 500 biggest US stocks provided by the S&P500. Most of my retirement money is with Fidelity, so specifically FZROX (US) and FZILX (International) in my tax advantaged accounts and FSKAX and FTIHX in my taxable brokerage. Bonds. I hold a bond fund FXNAX now because I am about 3 to 7 years out from retirement and want additional stability. I also want a different asset bucket to sell from in my withdrawal phase in retirement. Bonds historically have a better return than cash and better stability than stocks. Bonds also are mostly negatively correlated with the market. When the market goes down bonds tend to go up (we didn't see this in 08'). That said I am still only 20% bonds and likely won't increase that much. If you are further away from retirement than me then run less to no bonds. If you are risk adverse than run some bonds. I believe that is about all the diversity that you need. Small 1 or 2% hedge with precious metals is fine I guess. Reits are probably okay if you rent but if you own your home you probably already are overexposed to real estate. TIPS have their place as an additional safe income replacement for early retirement. Want to take 1 or 2% of your net worth a pick a single stock or 2 go ahead, have some fun. Don't over complicate it. Professional teams paid millions fail to beat the market by picking. I am not better than them and neither are you. Buy low expense total market funds consistently from a young age and in tax advantaged accounts when possible. Add bonds as your age and risk tolerance changes. It will be boring and slow but you will get there. See r/personalfinance and r/Bogleheads for more information.

joethetipper

What about other total market funds like VTSAX or FSKAX?

Far-Doctor3527

TLDR: VT and chill Hello, responding here because I am also unhappy that my passive funds will buy SpaceX. I have decided to not take any action regarding the SpaceX IPO, and accepting that my funds will buy it even though this IPO seems like an obvious grift. I am not trying to convince you to take action or not take action, just explaining my reasoning because this IPO has made me worry about my portfolio and maybe this will be helpful to you in your own decision. First let's understand what types of funds could be affected by the IPO: \- Total world market funds (VT and the like). These track the total world's equities market, which is roughly $154 trillion in market cap. \- Total US market funds (FSKAX, FZEROX, VTI, VTSAX, and the like). These track the total US equities market, which is roughly $77 trillion in market cap. \- S&P 500 funds (FXAIX, VOO, and the like). These track the largest 500 companies in the US by market cap, which total to about $62 trillion. Note that this is about 80% of the total market. \- S&P 100 funds / Mega cap funds (FGRTX, QQQ, and the like). These track roughly the top 100 companies in the US, totaling roughly $55 trillion. Note that this is roughly 70% of the total market, and roughly 89% of the S&P 500 \- Large cap funds (FNILX, FSPGX, and the like). These are functionally equivalent to the S&P 500 so I will not add anything here, they may be slightly larger or smaller percent of the total market than the S&P 500 depending on holdings. \- Mid cap, small cap, and international funds: unaffected The first thing you want to think about is: what are you invested in? You don't have to go super granular but most passive investors have their investments in some version of the above funds. Are you more of a total market person, or more S&P 100? It doesn't matter which one you are, but take a look at your portfolio and understand what you are invested in. Now let's assume SpaceX does IPO at $2 trillion and let's look at how the SpaceX IPO affects the broad categories: \- Total World Market Funds: 2 / 154 = 1.2% of the total world market \- Total US Market Funds: 2 / 77 = 2.6% of the total US market \- S&P 500 and other large caps: 2 / 62 = 3.2% of the S&P 500 \- S&P 100 and other mega caps: 2 / 55 = 3.6% of the S&P 100 Now let's assume that the worst case happens: SpaceX IPOs at 2 trillion, and then the price goes literally to 0. If you are mostly in total market funds, your portfolio would go down by 2.6%. If you are mostly in large cap funds, your portfolio would go down by 3.2%. If you are mostly in mega caps, your portfolio would go down by 3.6%. But let's be realistic, even with this IPO likely being an Elon grift, do we really think this is going to 0? I don't. Maybe it loses 50% of its price, maybe 80%, I don't know. But it's a real company with real revenue (though small revenue compared to its huge valuation), so it's not going to 0. I'm not going to redo all the calcs but just for example, assuming it goes down by 50% and you are mostly in S&P 500 funds, your portfolio would go down by 1.6%. But here is the biggest consideration: 100% of SpaceX is not going to be publicly tradable. We don't know exactly what the percent it is going to be but likely only like 5%. This means that the indexes will only track 5% of SpaceX's market cap. So assuming SpaceX IPOs at 2 trillion and goes down by 50% and you are mostly in S&P 500 funds, your portfolio would go down by (2 \* .05)/62 = .16%. To be clear, this is like a fifth of a percent, which is inconsequential, the market moves more than this on a daily basis. Another point: I don't know what is going to happen in the future: I don't know if SpaceX's price will actually shoot up for whatever reason, so as an uninformed person, I think actively shorting SpaceX is not a good idea. Remember the famous quote "the market can remain irrational longer than you can remain solvent". I am a regular person and don't have any privileged information about what is going on with SpaceX so I think shorting it would be equally risky to shorting any other company that doesn't have a high-profile controversial figurehead as Elon Musk, which is something I wouldn't do (and likely something other passive investors wouldn't do either). At the end of the day, passive investors get to benefit from all of the companies in the market without having to do the work of researching and understanding each business, and making bets about which one will go up or down. We have benefitted from all the other great businesses that have continued to skyrocket without having to use a second of time to evaluate them. If you want to take action against the SpaceX IPO that is totally ok, but you could be introducing complexity to your portfolio, and spending your valuable time thinking about how to hedge against something that will impact your portfolio less than regular daily market fluctuations. Again, not trying to convince you one way or another, and to reiterate, I am not happy that I will be buying into this IPO passively because I do think it is a grift, but by looking at the actual numbers I have decided that this is not consequential. So to summarize all of this information, even though I am more of a Fidelity stan than Vanguard, "VT and chill".

atheos42

OP, I don't think you understand how index funds work in passive investing. It's passive, you are not actively involved in the process, the fund does what the fund needs to do to follow the index. Further most of these funds are Market Cap Weighted, and that provides some protection from your fears. Real world example, lets say I have a 401k worth 315k, and it uses FSKAX, the total stock market index. Lets say you don't like TSLA, so you look up that FSKAX fund, and find the weight of TSLA and thus your exposure. You find out that TSLA has a weight of 1.65% in that index, and you currently have 1536 shares of FSKAX. Thus your exposure is 25 shares of TSLA, and each share is worth $426 currently, therefore your exposure is 10.6K on a 315K portfolio. Thus this one particular stock should not be a big concern overall. Please keep in mind that the above example is just one way to approximate your exposure, and not the best way, just a quick way, since there is something called NAV, or Net Asset Value. Try not too worry about the upcoming IPO, because of the Market Cap Weight protection built into most of these funds. What about the even weight 500 index, each stock gets 0.2%, so your protected there also.

OGS_7619

most people recommend diversifying both beyond top 500 large-cap in US, to include med-cap and small-cap in US, as well as buying international (emergent markets). So instead of ETF like VOO or SPY that only tracks S&P, you may want to get VTI or FSKAX that tracks total US market, as well as international market, VXUS or FTIHX. Most people go with cap weight of about 60 US to 40 ex-US, but it depends on whether you are in US or elsewhere (then you may tilt towards home country due to exchange rates) and whether you want to increase US allocation because of personal beliefs. International underperformed S&P (and S&P has been lately dominated by top 7 companies) until about a year or so ago, when international has been outperforming S&P. There are periods when small cap or mid-cap outperform large-cap, and most of the time bottom 450 S&P companies outperform top 50, so over time it will all averages out - stay diversified.

InvestingNerd2020

For retirement accounts, 401k/403B/IRA, index mutual funds are great. As your friends told you, ETFs are better for regular taxable brokerage accounts. Replacement options: VTI for FSKAX and VXUS for FTIHX.

Grainger407

Yes the comment below you is correct. I have the FSKAX in a main investment account. Not in my Roth IRA or ROTH 401k, I opened the investment account and just dumped it in. Those have separate funds and balances. But thank you. My parents instilled in me young to save. And thankfully I make a good chunk of change since I graduated. I was lucky to have good summer jobs through college where I would invest a solid chunk of my summer earnings into the Roth. I hated it when I was in school and couldn’t touch it but being 27 now. Man I’m glad I listened. Not that you asked but I feel like sharing…but my goal is to have a million net-worth by 30.

cloutvegan

Thanks for your insight! Curious though, how is it that that 65k is sitting on FSKAX? Was that a loss?

Grainger407

I will say this is not financial advice. It’s just what I do as someone who has a relative that’s a VP in WM at fidelity. As a 27 year old. I’ve maxed my Roth since I was 19. I have allocations in various funds through fidelity. Although most of it is in FZROX and FZLIX. 4 other random fidelity funds. I max my 401k every year. And rest of the $$ goes into a taxable brokerage mainly in VOO. But I sprinkle some other money into stocks I believe in. I was a very early adopter in NVDA in 2017 and so far so good. I just push 90% of my investing money into VOO/ FSKAX kinda redundant but. To answer your question. Yes. VTI and VOO are essentially the same thing. It’s kinda redundant as over the last 10 years VOO avg 15.6% and VTI 15.1% returns. I would and do just shove most of my money in VOO and forget it. VTI is a little more diversified as I’m sure you know but ideally you should pick one and stick with it. The returns between the two are marginal. *this is not financial advice* just IMO

Emotional-Power-7242

Statistically traditional 401k/IRA should be better for you. You're a high earner now and most people have lower income in retirement than they do in their 40s. If you're investing so much that you plan to have higher income in retirement than currently then Roth would be better. It's just about paying taxes when you're tax bracket is lower. 60% FSKAX/40% FTIHX

Emotional-Power-7242

You hold them at whatever the current market capitalization of US vs International is, at the moment it's about 60% US and 40% international so you would hold 60% FSKAX and 40% FZILX. This willcchange as the years go buy and you adjust accordingly, ideally you adjust annually at a predetermined date. I do it the week of Christmas every year. Check out /r/bogleheads for the reasoning/strategy behind this.

Emotional-Power-7242

FSKAX is great, the only other fund you need is a total international like FZILX for a complete portfolio. You don't need anything else. If you accidentally make too much for a Roth IRA you just need to call fidelity or whoever the IRA is with and they'll withdraw all the contributions from that year.

big_deal

FSKAX, qqqm, voo, vti are all US equity funds and will have similar behavior and return. There are differences in their specific index allocation but overall they are very similar. There's no sense in worrying about which one of these particular funds is better or worse. If you want US stock market exposure you're doing fine with FSKAX and there's no reason to worry about any of the others tickers. Allocating 100% in US stock is relatively aggressive. It will pay off very well over the long term but you will eventually experience a painful market correction or crash. When this happens don't panic, don't sell everything and lock in a loss. Just continue investing and if you can afford it increase your contributions during the downturn. Once things recover, if you feel like the experience was too painful you can adjust your allocation and keep some money in cash or bonds to help buffer future market downturns. But do not change strategy in the middle of a market downturn! As you get closer to retirement you need to start thinking about lowering your risk exposure by holding some cash/bonds. The Roth contribution limit is $7500, that's a little under 7% of your gross income. By starting at age 40 you should really try to invest more into your taxable account or look into other tax advantaged account options like Solo 401k, SEP IRA, or HSA. Roth income limit is based on MAGI. This can be considerably less than your actual gross income since you can probably deduct business expenses, health insurance premiums, portion of self employment tax. If you fear you might cross the MAGI threshold you could opt to use a backdoor Roth, or just remove the excess contributions from the Roth for that year. There's no penalty if you remove the excess contribution before the tax filing deadline so you can figure it out when you do your taxes and take action if necessary.

dmiller224

Walk away and take the chips off the table. You’re set for life if you just throw into VTSAX OR FSKAX. I know someone who got greedy and lost it all, multiple times. Not worth it.

GaylrdFocker

>all of those index funds are pretty much the same All of what index funds? You mention FSKAX but didn't say any others. That said, FSKAX is all US stock, it's perfectly fine to be your only investment for your entire life, but I would add some International. If this is your first year, then you can use FSKAX this year and diversify to Intl next year. Read these [https://www.reddit.com/r/personalfinance/wiki/iras/](https://www.reddit.com/r/personalfinance/wiki/iras/) [https://www.reddit.com/r/personalfinance/wiki/investing/](https://www.reddit.com/r/personalfinance/wiki/investing/) [https://www.bogleheads.org/wiki/Three-fund\_portfolio](https://www.bogleheads.org/wiki/Three-fund_portfolio)

InvestingNerd2020

Good job getting started. You still have 20 years until retirement and a 6 figure salary. My recommendations: - Add a growth fund. FSPGX or SCHG, and make it 30% of your Roth IRA. Keep FSKAX at 70%. Stay on this path until you 58. - Max out your Roth IRA every year and focus on staying employed. - If you have extra money left over after paying your routine bills, use similar ETFs in a taxable brokerage account. Example: VTI and SCHG.

harrison_wintergreen

FSKAX is a good choice, it's meant to mirror the entire US stock market if you didn't know. not all index funds are the same, but there are a lot of similar index funds. if your job has a 401k plan, I'd sign up for that immediately and contribute directly from your paycheks. >What happens if I have been putting money into a Roth and all of a sudden my income seems to be going above the threshold for this year or another? How would I handle that? Roth contribution limits are based on your Adjusted Gross Income, so that can help with planning. And opening the 401k and prioritizing that would also lower your taxable income. you can also do a "backdoor Roth" if your income gets too high.

coldbrewmornings

Your fund pick is fine. FSKAX, VTI, and VOO are essentially the same thing. Long term the differences are negligible. QQQM is tech-heavy and more volatile and  you don't  need it. If you ever cross the Roth limit, the simplest fix is to just put that year's contribution into your brokerage instead. There's also a backdoor Roth conversion that lets higher earners contribute indirectly. For the brokerage, same approach as the Roth, same fund, hold long term. Gains held over a year are taxed at the lower long-term capital gains rate, which at your income is 15%. Starting at 40 with a Roth, a brokerage, and a plan to max contributions is further along than most people ever get. The answer is almost always just pick one fund and stay consistent.

anon401k95

I’m trying to determine if I should continue investing in primarily FSKAX and if I should continue utilizing a standard 401K, Roth IRA, AND Traditional IRA to diversify my tax-advantage accounts or if I should just consolidate. - 40 years old, living in LCOL area - Sales engineer making between $150k-300k (100% commission) - Only debt is the house which is financed at 2.125% with 80k left on the mortgage, so I don’t necessarily need to move, but it’s the starter home I’ve been in for 12 years and wouldn’t be against moving if the right house came to market. 401k $629k in T.Rowe Retirement 2050 Fidelity Brokerage $561k Total - $326k in FSKAX - $69k in FTEC - $69k in FTIHX - $12k in NIO - $85K in SPAXX/SPRXX Roth IRA $31k Total - $18k in FSKAX - $9k in ARKK - $4k in NIO Traditional IRA $19k Total - All in FSKAX

FrogginSzn

Right now I’ve got our investments going into FSELX, FTEC, and FSKAX. April and now into May are the reasons I’m considering selling and investing. I always liked the steady “safety net” income from rentals. What sort of easily managed portfolio would you suggest?

Grainger407

I think my VOO and FSKAX are up 18.4% and 17.7% this year. Which beats out your 13%

Financebro30150

since it's a rollover IRA with no tax consequence, the switch math is straightforward. SPY charges 0.09%, VOO charges 0.03%, FXAIX charges 0.015%. on a \~$189k position that difference is roughly $60-140/year in savings — not life-changing, but real over 10 years. for a Fidelity account specifically, FXAIX is probably the cleanest call. mutual fund structure means you invest exact dollar amounts with no bid-ask spread, and at 0.015% it's essentially free. FSKAX is Fidelity's total market fund at the same cost if you want broader exposure beyond S&P 500. that's actually the more interesting decision: S&P 500 vs total market. both VOO and FXAIX track the 500 largest companies, so you're underweighting small and mid cap. FSKAX or VTI give you the full market for the same price. not wrong either way, just a different call on whether you think the S&P 500 subset is worth concentrating in.

MiniTab

No shit. Me too. I buy more FSKAX as soon as my 401k contribution hits my account. None of that has anything whatsoever to do with what I said about COVID shutting down all of Asia in Feb 2020, while the US markets lagged behind the news. Pull up your $VT chart and look what happened a few days after Feb 14, 2020.

KingKilla_94

Lmao bro that’s retarded. I hope the ceasefire ends and we start bombing Iran for your sake. But the stock market is irrational, it is no longer tied to the economy. I wouldn’t be surprised if billionaires collectively agreed to invest billions in the stock market every month. Loading up on a long position since the start of the war, we will see a boom. I have no calls or puts atm, just a long sizable position on FSKAX

Atrocitus777

As someone who's been investing on my own for a long time, I've found that if your plan is to just buy index funds like VTI and QQQ, there's no reason to pay someone to manage your money. My employer uses Edward Jones to manage our SIMPLE IRA plans and honestly while I do like my guy on a personal level, the returns he's getting me aren't that much better than index investing. I personally have my Roth IRA and brokerage at Fidelity that I self manage and buy mutual funds in. FSKAX (a Fidelity mutual fund version of VTI) being one of my primary holdings with other mutual funds to supplement my portfolio where needed. TLDR he wants to manage your money so he can make more on fees and MAYBE get you better returns. Returns are never guaranteed.

14mmwrench

Never even considered it. I put money in, buy whatever feels right, and put the rest in to FXAIX. I played with the odd 5 bucks here in there with literal penny stocks. That went poorly. Started buying RKLB at like 3.50 because the name was cool, got a bunch of intel because my 12700k was pretty cool, Rolls Royce when I heard they got the B-52 engine contract because 8 engines each seemed like a lot. NVDA before the split, because 3080ti had pretty lights. I am hoping for 100k by the end of 27. We will see how it goes, the bull run since I started is insane. The first 2 shares of FSKAX I bought because it seemed safe and reasonable is up like 83% It has really made me see how people with money get more money.

Cruian

There are differences: * Most, but possibly not all, will have free ETF trading * Not all have fractional ETF trading * Free to trade mutual fund lists will be different based on who you use, though brokerage A and brokerage B may have very similar offerings of what I'd call the "essentials" (such as VTSAX is Vanguard's version of US total market index and FSKAX is Fidelity's)

InvestingNerd2020

Too many funds. 70% FSKAX and 30% QQQM are good enough.

Fuzzy-Champion-2653

I’m a newbie investor and was to allocate something aggressive Did some research and got these allocations FSKAX 50% FTIHX 20% QQQM 10% SMH 10% AVUV 10% Any feedback is appreciated.

zhawk122

Hijacking your question. I recently rebalanced my Roth port to start contributing 63, 21, and 16% to FXAIX (S&P500 index), FZILX (international index), and FSKAX (total market index), respectively. Is this a solid split?

CarnageAsada-

100% FXAIX or FSKAX 80% and FTIHX 20% in Roth IRA/401k ROTH

utahphil

Can we FSKAX and forget it instead?

InvestingNerd2020

Yes! This isn't the 90s anymore. I recommend Fidelity or Charles Schwab if you need help getting started. A Roth Individual Retirement Account (IRA) and start investing into FSKAX (Fidelity) or SWTSX (Schwab).

CarnageAsada-

FTIHX 80% and FSKAX 20% let it ride for 30 years a bit less than FXAIX but you got all your ducks diversified.

OrgafoogieGames

I have FSKAX (total market) and FXAIX (Fidelity 500) which sounds like what you’re looking for. They’re no transaction fee and 0.01% expense ratio. You just have to set up automatic purchases from future deposits which is pretty easy.

InvestingNerd2020

Start by opening a Roth IRA with Fidelity, and invest into FSKAX. Put $5k into that fund. Certain things to look into before investing further: - r/Bogleheads subreddit. - The book or audio book "Millionaire Next door" by Thomas J Stanley. - The book or audio book "I'll teach you to be rich" by Ramit Sethi. - Research "Dollar cost averaging" and "Lump sum investing" on YouTube.

heartbooks26

FSKAX was exactly equal to my cost basis for that in my brokerage so I bought $10k… I just started investing in 2024 and don’t plan on touching this money for 20 years. I feel like I’m OK……

Any_Jicama5208

Just holding FSKAX there already isn't the issue. Wash sale risk comes from a new buy or DRIP inside the window, not old shares just sitting there. I'd still turn off IRA auto-invest/DRIP if you want zero footguns.

markprice211

Is there any concern with currently holding FSKAX in my Traditional IRA, at the time I sell VTI for FSKAX in my taxable account to harvest the loss?

Any_Jicama5208

Those swap pairs are the least scary part here. I'd worry more about stray DRIP / auto-buys in any taxable account, and about estimated-tax safe harbor, than about VTI -> FSKAX or VXUS -> FTIHX.

Impressive-Panda4383

Meanwhile the VT/FSKAX clan since has netted 70% return the last 3.5 years to be boring.

Ticksdonthavelymph

FSKAX & FZLIX but I’m here to actually make money not just lose it…

Impressive-Panda4383

Considering VT and FSKAX has netted a 71% return. Woof man,

Shaydosaur

I just did the same and dropped the lumps split between FSKAX, FTIHX, and FXNAX. It’s in there for the long haul, might as well get it all in there

Dylanb993

I’m not adjusting. I’m continuing to throw money slowly at FSKAX and FTIHX as always. Anything else is gambling

TheOliveYeti

Same things I always buy FSKAX and FTIHX

Dylanb993

Y’all taking investing advice from 13 year old females? Jokes aside, I just buy more FSKAX and FTIHX and treat myself to a $13 breakfast burrito because it makes me smile

Cruian

FDKLX is aggressive, it is 90% stock based. No matter what the age or timeline, not everyone can actually stomach a 100% stock based portfolio. The various investing subreddits see it all the time during even moderate drops of people that took on too much risk and want to bail on their strategy. The lucky ones post and get talked out of it before they go through with it. A single behavioral mistake like that could cost you more than the opportunity cost of bonds would. I wouldn't limit my US exposure to large caps only, I prefer total market style, so that'd be FZROX or FSKAX.

BonelessSugar

Have you considered FSKAX?

Cruian

Vanguard's VTI at 0.03% or VTSAX at 0.04% are higher than Fidelity's FSKAX at 0.015% or FZROX at 0.00%. Same story with VOO/VFIAX vs FXAIX.

Silver-Minute-3907

If you’re holding Fundrise alongside VTI or FSKAX, remember that the underlying overlap means differences in performance are more about fund structure and timing than missing exposure something to keep in mind before making moves.

therealjerseytom

> I was looking at the 3 months and saw a different return on them https://totalrealreturns.com/s/VTI,FSKAX

ziggy029

FSKAX is a mutual fund. It only gets priced once a day, after the market close. You can’t compare the intraday price movements of an ETF with a mutual fund, since the ETF is priced “at the moment” while the mutual fund reflects the previous day’s close. Also, mutual funds like FSKAX usually don’t update pricing until several hours (usually 2-3 hours) after the close of the market. So at (say) 4:30 PM Eastern time on a Thursday, the mutual fund probably still shows the price at Wednesday’s close and will for another couple hours. But by late Thursday evening, it will probably reflect Thursday’s close.

Secret_Shart

FSKAX is a mutual fund and doesn’t track prices live. It prices ar closing. So, you’re seeing yesterday’s close price for FSKAX (which was up). VTI is an ETF that tracks live and it’s in the red today. At the end of the day, you will see FSKAX go red as well. Take a look at both at 7pm. They will be almost identical in price.

andybmcc

FSKAX is priced after market close because it is a mutual fund, not an ETF. He's looking at yesterday's price change.

StatisticalMan

Yes. In terms of taxes Fidelity CMA is a taxable brokerage account. Note that while you could get capital gain distributions on FSKAX they are pretty rare. The tax efficiency of FSKAX isn't bad there just is little reason to not use an ETF. Each of the four advantages above are arguably quite small but why not get them.

Adventurous_Elk_4039

Maybe just lack of awareness, the Vanguard funds are more well known, etc. or they like to be able to watch a ETF go up and down throughout the day. I’m on your side though, I also have FSKAX/FTIHX instead of VTI/VXUS. In the end it doesn’t make a huge difference though.

buttflapper444

What about cash management investment account, not tax advantage at all? Sounds like the ETF would be better after doing my research, because apparently you'll get taxed if you have FSKAX instead even if you don't do anything with it

Ok_Assignment4100

Thank you. My company's 401k plan didn't have a passive, low-index fund for small-cap and no EM. But, luckily, I've build a total market portfolio of FSKAX and FTIHX. It'll be a different feel for me now since there's no bonds at this time.

scwt

I like "FSKAX and relax". It rhymes.

andybmcc

That's total US market, not world. Cap weighted S&P 500 and total US will perform similarly because of the weighting. FNILX is the zero mutual fund that resembles the S&P 500. The share prices is completely irrelevant. You can invest in partial mutual fund shares no problem at Fidelity. I would suggest investing in total US and an international fund. For Fidelity mutual funds, that's FZROX and FZILX for the zero funds or FSKAX and FTIHX for the normal (still extremely low fee) mutual funds.

Finance-Idiot

Recommendations please for quality aggressive growth ETFs for our Roth accounts which will not be touched for at least 20 years. I’m behind on my investment journey for retirement. Due to financial ignorance and lack of access to a 401k most of my working life most of our savings had been on HYSA and CDs until recently. I’ve been educating myself for the last couple of years and have opened Roth IRA accounts for both me and my spouse and have maxed them out each year. During this time I finally had access to a 401k which also has a Roth option and have been trying to max that too. I have also opened a Fidelity brokerage account and have been DCAing the majority of our savings into VTI/VXUS leaving about 15% for the emergency fund (6 mo of expenses) and bonds (mostly treasury bills and intermediate bonds). The 401k has horrible options so I choose a TDF with a year that’s actually 10 years after I plan to retire so it can stay a little more aggressive in there for now. I’ve been doing FSKAX/FTIHX in the Roth IRAs but I just funded both accounts with the max for this year and now I’m thinking of putting that money in a higher risk/higher reward ETF since we don’t plan to touch these accounts until way into retirement. Right now the amount in the Roth accounts is about 5% of the whole portafolio so I think I can be a little more risky with it. Any recommendations? Or any critique on my reasoning? Thank you for your time.

ciferite

There's still a lot of overlap here. FXAIX, FSKAX and FNCMX all have the same top mega cap companies taking the majority of the weight. 90% of FXAIX is in FSKAX as well. You're basically investing in the top mega caps 3 times. A better way to diversify would be to do: 50% FXAIX 10% Mid cap etf 10% small cap etf 30% FZILX For the mid and small cap, you can find one that seems good to you. AVUV is a good small cap etf that a lot of people recommend. But you have fidelity mid and small cap funds for very low exp ratio. This way, you have no overlaps and have exposure to mostly everything. This is a simple "set and forget" portfolio for roth ira. Hope this helps.

CrabKates

Buy more FSKAX. That’s all

Cruian

Why ignore the US extended market and emerging markets? Both can be said to be riskier than the large caps and developed markets only you have here. FSKAX + FTIHX instead would provide at least market cap weight coverage of those. >I’m aware that the second option has overlap and more risk but also has more potential for growth Long term, "growth" as a style has actually tended to under perform blend and especially value. It can easily be argued it has *less* potential for growth. Factor investing starting points: * https://www.investopedia.com/terms/f/factor-investing.asp * https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF) * https://www.cbsnews.com/news/the-black-hole-of-investing/ * https://www.dimensional.com/ca-en/insights/when-its-value-versus-growth-history-is-on-values-side * But be aware that factor premiums can take a while to show up: https://www.reddit.com/r/Bogleheads/comments/1hmbwuw/what_every_longterm_investor_should_know_about/ * And from GwenRoll: https://www.reddit.com/r/ETFs/comments/1krd3fe/growth_does_no_one_know_what_the_hell_it_means/ >so trying to figure out if it’s worth the risk to tilt some towards growth It isn't a move I'd make, based on the factor investing research I'm familiar with (some samples above).

ActualAres

I made a contribution to my Roth IRA. Worked out in my favor getting paid biweekly. I invest through Fidelity. FREL FXAIX FSMAX FSKAX FSGGX I understand there is overlap in my portfolio. I consider myself aggressive.

ThisisTophat

My question is am I being dumb by being invested in FXAIX, FSPGX, and FSKAX in my Roth IRA? The money is already taxed so no penalty for moving stuff around as far as I'm aware. I've researched a bit and it makes me question if those three are all too similar and I'd be better off just consolidating it all in FXAIX. I know FXAIX performs better in the long run, but at the moment it's not the best performing of the three. I'm very much of the set it and forget it philosophy so I'd love advice on if I should just leave it as is or combine a couple of them or all three. In total I'm invested in 7 index funds which despite seeming like great advice when I started now seems to be more than what most people do. Thanks for your thoughts!

Emotional-Power-7242

International equities have the same expected return as US equities. Actually slightly higher because of risk premiums associated with value characteristics. Essentially stocks with lower P/E are expected to return more and international markets currently have lower P/E than the US market. So you can have lots of international exposure without losing out on growth. Anyway for market cap weights you would sell ~$350,000 of VTI/FSKAX/FXAIX and buy $350,000 of VXUS/FTIHX/FZILX. Note that while doing this is a good idea in general, doing it because of your personal feelings about the market is potentially a bad idea. If you stick with the allocation for the rest of your life then it's good. If you switch back to all US equities next time the US outperforms for a year then you will just uneerperform overall.

carbsaredangerous

I have no idea what Cava is and I don't invest in individual stocks. I only do broad market index funds like FSKAX, FTIHX etc. So I can't answer that.

buttflapper444

>Note its probably a coin toss what will do better, based on the random performance for the 1k stock that FSKAX holds that FZROX does not. It's insane that they added a thousand additional stocks and didn't see any change in performance at all. Like, how does that even work? I compared it year-over-year for the past 5 years. How can a thousand additional stocks being added results in almost no change?

Cruian

>also FZROX I believe will sample the index, not buy every single company , This is common to other US total market funds as well. The other day I found it on VTI/VTSAX 's prospectus for example, I'd fully expect to see the same in FSKAX's.

Cruian

FSKAX follows Dow Jones U.S. Total Stock Market Index, FPADX follows MSCI Emerging Markets Index. https://testfol.io/?s=53rPsZqsrlO emerging more than doubled the US returns between January 1, 2025 and January 7, 2026 (yesterday).

SirGlass

Well there should be a very slight difference in expense ratio of 0.015 but they do follow two different indexes FSKAX follows the dow jones USA total market index. Note index funds have to pay some "fees" to follow an index FZROX follows some Fidelity U.S. Total Investable Market Index. So slightly different indexes, also FZROX I believe will sample the index, not buy every single company , FZROX has approx 2500 holdings where FSKAX has approx 3700 So its simply the small differences in the indexes and holdings Note its probably a coin toss what will do better, based on the random performance for the 1k stock that FSKAX holds that FZROX does not.

harrison_wintergreen

according to Morningstar data, FZROX has slightly lower percentage in mid and small caps. this difference might explain the bit of FSKAX under-performance over the last few years. but if large company stocks slump and smaller company stocks rally, it's possible FSKAX might be the better investment. to see the portfolio holdings broken down by different measures to to Morningstar > search any fund ETF > portfolio > style measures > market cap https://www.morningstar.com/funds/xnas/fskax/portfolio

Khartu-Al

FZILX is proprietary and does not track the same index, althouh they are mostly similar. I believe FSKAX includes more slightly underperforming (now) small caps.

MF266

If I wanted flexibility to move brokerages later, I’d lean ETFs in the taxable account. VOO for S&P exposure checks the box and avoids getting stuck with proprietary funds. In the Roth, I’d be more comfortable using FSKAX or FZROX since portability isn’t really a concern there and tax efficiency doesn’t matter

carbsaredangerous

90% FSKAX and 10% FTIHX, after taking out the emergency fund and putting that into an HYSA.

StopElectingWealthy

This is pretty good advice. Although I slightly disagree about VT as the US stock market historically does better and I have held both VT and FSKAX(VTI equivalent) and the US market has been substantially better. So I still like VT, but less allocation

GaylrdFocker

That's perfectly fine. Most people recommend VTI/VXUS because 1. it's cheap (FSKAX is cheaper, FTIHX is close enough) and 2. it's easy to move (in a Roth IRA you can sell and rebuy whatever you want if you leave Fidelity) Having Bitcoin is a personal preference but you are only doing 5% so go for it if you want.

CrabKates

My Roth IRA only consists of FSKAX and FTIHX so I guess the riskiest has to be one or the other.

Cruian

Despite the name including the word "growth" and great recent returns, long term has tended to favor the complete opposite: small and value over large and growth. Factor investing starting points: * https://www.investopedia.com/terms/f/factor-investing.asp * https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/fidelity/fidelity-overview-of-factor-investing.pdf (PDF) * https://www.cbsnews.com/news/the-black-hole-of-investing/ * https://www.dimensional.com/ca-en/insights/when-its-value-versus-growth-history-is-on-values-side * But be aware that factor premiums can take a while to show up: https://www.reddit.com/r/Bogleheads/comments/1hmbwuw/what_every_longterm_investor_should_know_about/ * And from GwenRoll: https://www.reddit.com/r/ETFs/comments/1krd3fe/growth_does_no_one_know_what_the_hell_it_means/ >FTIHX at 20% feels like enough international exposure to avoid being 100% US, without dragging down returns too much if the US continues to outperform But waters them down if international continues to over perform (2025 favored ex-US). This isn't an uncommon event, over 40% of 10 year periods since 1970 have favored developed ex-US over the US, which isn't too far off from a coin flip. In fact, last I checked, many places were expecting markets to favor international over the US for the next decade or two (valuations playing a large role in that). >FSPGX is my "aggressive" bet. I know it overlaps with FSKAX, but I want to double down on growth/tech while I’m 22 As covered above, "growth" as a style has tended to under perform in the long run. You may be reducing your expected returns with this. Sector bets are uncompensated risk. An uncompensated risk is one that doesn't bring higher expected long term returns. Uncompensated risk should be avoided whenever possible. Compensated vs uncompensated risk: * https://www.whitecoatinvestor.com/uncompensated-risk/ * https://www.northerntrust.com/middle-east/insights-research/2024/wealth-management/compensated-portfolio-risk >But not all risks are compensated with an expected return premium. * https://www.pwlcapital.com/is-investing-risky-yes-and-no/ (Bold mine) >Uncompensated risk is very different; it is the risk specific to an individual company, **sector,** or country. What makes you think that tech is either the only sector still under valued or the only sector not over valued? >-​Is 20% International (FTIHX) a good middle ground? I see some people say 0% and others say 40% (market weight). I’m trying to find the sweet spot for maximum growth. This is impossible to tell ahead of time. Take a look at Figure 4 here: https://www.bogleheads.org/wiki/Domestic/International a 37ish year period where anything more than 10% US hurt your returns. Figure 2 shows roughly the same time length where the best returns were with 40-50% international (when we exclude emerging markets). >​Are there any specific "gotchas" or better fund equivalents at Fidelity I should be using instead (e.g., FZROX vs FSKAX)? Do you prefer the few hundred extra holdings or the very tiny expense ratio difference? Does it matter to you if FZROX follows an index Fidelity designed themselves?

nakfoor

I'm not too familiar with what Canadian citizens have access to but if you can get broad US stock or broad western market stock funds with low fees, that's a good choice. Vanguard offers two funds called VOO and VTI that are popular. Most financial institutions offer their equivalent for it. Schwab has SCHB. Fidelity has FSKAX. Basically what we have seen is that these markets grow on average about 7% per year. Key point is that is over long periods of time which is why you have to be okay with volatility. It might grow 10% for a few years, then be down 20% for a year. Then 3% the next year..etc. 7% is the average over the 20-30 year span.

therealjerseytom

The nice thing is, in a tax-sheltered account like a Roth IRA, you can change your mind and swap investment strategies with no tax hit. So whatever you choose *right now* you could do a 180 on a month from now; no big deal. I'd make the case that for your first *10 years* of investing, the most important decisions you can make are your budgeting and contributions; the more you can save the better. Biggest thing working in your favor is that you're 32, and have ample time to build things back up before typical withdrawal age (60+). You could make this very simple and just invest in an all-world, all-stock ETF like "VT." Or that mix of FSKAX and FTIHX you were doing. Whether you do 80/20, 60/40, or 100/0 I think is going to have far less significance in the immediate term compared to just how much you can shovel into the account overall.

we_are_all_dead_

Early morning energy drink rant I guess. I found my statements and it looks like I was 80/20 into FSKAX/FTIHX. I guess just reassuring my self this is a viable option to this day , and doesn’t sound crazy. Before I go resetting up reoccurring transfers / investments etc. been a while since I’ve been in the investing world. Few years

Hurricane_Ivan

FSKAX and FTIHX exists

Hurricane_Ivan

FSKAX and FTIHX exists

Hurricane_Ivan

FSKAX and FTIHX exists

Empyrius

Keep my job, keep savings rate high, keep investing in FSKAX/FZILX.

letmethink23

I misread with the VTI = FSKAX. I thought I saw it was the same as VDIGX. I think all I can do right now is look into maxing out 401k and then increase contributions to VDIGX and FSKAX

loopernova

VTI = FSKAX essentially. So no need to change if you already have it. VDIGX is a dividend growth fund. The same stocks in this will also be in FSKAX. So unless you specifically want to concentrate more in dividend growth companies, you could transfer money out of this into FSKAX.

Empyrius

43 years old. 70% FSKAX, 30% FZILX. Simple as.

baseballer213

FSKAX has a 99% correlation with FXAIX, so you already own the S&P 500. I keep beating a dead horse here, but adding JLGMX isn’t diversification; it is paying 29x higher fees (0.44% vs 0.015%) to overweight the exact same top stocks (Nvidia, Microsoft) you already hold in FSKAX. [Standardized data shows the S&P 500 beating JLGMX year-to-date](https://portfolioslab.com/tools/stock-comparison/JLGMX/FXAIX). As for the HELOC: claiming you can service debt with zero income (no job + no tenants) is mathematically impossible. If you have the cash reserves to cover that nightmare scenario, you should just invest the cash and skip the loan entirely.

DesignedIt

I can't buy stocks with my retirement account though. So I can't buy NVDA, MSFT, AMZN, etc. and can only buy FXAIX or JLGMX. I already have $230k in FSKAX so don't want to buy more of FXAIX. Where are you getting the 15.8% and 18.1% returns at? I just logged into my retirement account and am showing the opposite. I also don't own the $750,000 in stock yet -- right now I just have $230k FSKAX and $70k JLGMX so it diversifies it right now. I could always convert the $70k back to FXAIX next year once I own some of the other stocks/crypto. If the stock market crashes a 2nd time and crypto crashes a 2nd time and I lose my job and the real estate market crashes and I can't get a new job and all of my tenants move out (combination of 6 worst case scenario) then I'll still be able to pay back the HELOC. I'm not concerned about this scenario but I did take it into account. Also if there is a recession then the variable rate of the HELOC would lower.

DesignedIt

I don't have many choices for mutual funds in my 401k. I had FXAIX and traded it for JLGMX since it had the highest return amount. I started with 100% FSKAX before any research and am trading some of it in from my non-retirement account for other stock and crypto as they dip. Crypto moonshots are only about 4% of my total portfolio which I can DCA from my salary. The HELOC funds would be mostly for the stable stocks IF they crash. If you could make one change what would it be?

weasler7

Lmao high yield savings engine =\= growth stock portfolio. Also, look at the composition of FSKAX, FSPGX, and VUG. They have high compositions of MSFT, GOOG, META, NVDA.

Alternative_Dog2779

The smartest approach is usually to treat Bitcoin like a *speculation sleeve*, not a core holding — especially if you’re already diversified with broad-market index funds like FSKAX and FTIHX. A lot of people take the “**asymmetric bet**” view: * Worst-case scenario: it goes to zero, and you lose a small allocation. * Best-case scenario: it becomes widely adopted, and the upside drastically outweighs the risk. For most long-term investors, a **1–5% allocation** (only if you understand it and are comfortable with volatility) is enough to get exposure without jeopardizing your financial plan. But the key is: **If price swings stress you out or you don’t believe the thesis, there’s no rule saying you** ***need*** **to own it.**

znightmaree

You do not need a financial advisor. If you really want to bounce ideas around, ask any of the many widely available LLMs and cross reference their answers. If your returns aren’t beating the S&P500, then just invest in the S&P500. If you are on Fidelity, consider FXAIX or FSKAX for something more diversified. Put every dollar you have in that fund and forget about it. If you want to get more involved, then read up on stuff and adjust things accordingly. Many will recommend VT, or VOO, or their equivalents in Fidelity. You really can’t go wrong with a diversified fund. You are young so you shouldn’t really need to worry about bonds etc. You are literally lighting that 1% on fire. It is a total waste of money.

Adventurous_Elk_4039

\>*Do you have any SMALL amount of extremely high risk companies/stocks? Like 1-3% of your portfolio?* I dabbled in the past and had some employer stock as well, but at the moment no, and I have no particularly strong feelings about any individual companies. That said, 1-3% is perfectly reasonable to play around with if you want to experiment. \>*any chance you could give me an almost exact estimate if your portfolio? Like what % you have invested in each fund / index, etc.?* As I said in my post, I am 75/25 on FSKAX/FTIHX. This gives me essentially total world coverage with a home country (US) tilt. If you prefer ETFs, you could do VTI/VXUS to achieve similar. Or if you want to keep things extremely simple, you could just invest in 100% VT which is the full world at market cap rates. This essentially makes you the market. You won't outperform it, but you won't underperform it either.