Fidelity Funds: FSKAX vs FXAIX

Fidelity Funds: FSKAX vs FXAIX
FXAIX is the Fidelity 500 Index Fund. FSKAX is the Fidelity Total Market Index Fund. These two are some of the largest mutual funds in existence. I will argue that they can form the core of an investment account for all sorts of people. They both have an extremely low expense ratio of 0.015%. They are both tax efficient. Both FXAIX and FSKAX are large, core funds that act and appear very similar. Given how similar they are, I would say you don’t need to worry too much about which one is the right choose, but let’s still discuss it. Despite similarities, including similar returns, they are different. So let’s explore these differences!
The largest difference between the two funds is how much exposure they have to large-cap stocks.
FXAIX is the Fidelity 500 Index Fund is a large-cap and mid-cap fund. It was launched in 1988. Most of the S&P 500 is large cap stocks, but there are some mid-cap stocks. It will have almost no exposure to small-cap stocks.
FSKAX is the Fidelity Total Market Index Fund and is a total market fund as its name suggests. It was launched in 2011. FSKAX is going to include a lot of mid-cap and small-cap stocks.
If we consider the sector weights of both funds, they are nearly identical. The largest sector is going to be technology at ~24%, followed by healthcare at ~15%, and then financial services at ~14%.
If you have an investor account with Fidelity, it should be free to trade these two funds, but other custodians will likely charge you a feed to trade Fidelity mutual funds, in which case it may make more sense to consider another total market ETF or large cap ETF rather than FSKAX or FXAIX.
Works Cited:
https://thoughtfulfinance.com/fskax-vs-fxaix/
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