FTIHX and VTIAX are both international index funds offered by Fidelity and Vanguard, respectively. They are intended to provide investors with exposure to a broad range of foreign stocks. However, there are some key differences between the two funds.
Which one should you choose? Let’s find out by reading the comparison below.
FTIHX vs VTIAX: What Are the Differences?
- The Fidelity Total International Index Fund (FTIHX) follows the MSCI ACWI ex USA Investable Market Index, while the Vanguard Total International Stock Index Fund (VTIAX) seeks to track the performance of the FTSE Global All Cap ex-US Index.
- The VTIAX fund has a higher expense ratio, at 0.11% than the FTIHX fund, which has an expense ratio of just 0.06%.
- VTIAX pays dividends on a quarterly basis. FTIHX distributes dividends to shareholders once a year (in December).
- When it comes to total net assets, VTIAX is a giant with more than 453 billion under its management. Meanwhile, the total net assets of FTIHX are shy of 9 billion.
- The minimum initial investment for Vanguard’s VTIAX is $3,000. FTIHX, on the other hand, has no minimum.
- There is also an additional fee (charged by Fidelity) when you buy Vanguard mutual funds in your Fidelity account.
FTIHX vs VTIAX: How Are They Similar?
- Both mutual funds invest exclusively in international stocks. Notable regions with significant asset allocations are European countries and emerging markets in Asia.
- The turnover rates of FTIHX and VTIAX are under 10%. This means the fund managers practice the buy-and-hold strategy rather than constantly changing their holdings every year.
FTIHX vs VTIAX: Portfolio Composition
FTIHX Top 10 Holdings
| COMPANY | SYMBOL | TOTAL NET ASSETS |
|---|---|---|
| Taiwan Semiconductor Manufacturing Co Ltd ORD | 2330 | 1.66% |
| Nestle S.A. | NSRGF | 1.19% |
| Tencent Holdings Ltd. | TCTZF | 1.02% |
| ASML Holding N.V. | ASMLF | 1.01% |
| Samsung Electronics Co. Ltd. | SSNLF | 0.96% |
| Roche Holding AG Part. Cert. | RHHVF | 0.87% |
| LVMH Moet Hennessy Louis Vuitton SE | LVMHF | 0.70% |
| Alibaba Group Holding Ltd. | BABAF | 0.68% |
| Toyota Motor Corp. | TOYOF | 0.60% |
| Novartis AG | NVSEF | 0.58% |
VTIAX Top 10 Holdings
| COMPANY | SYMBOL | TOTAL NET ASSETS |
|---|---|---|
| Vanguard Market Liquidity Fund | 2.20% | |
| Taiwan Semiconductor Manufacturing Co Ltd ORD | 2330 | 1.64% |
| Nestle S.A. | NSRGF | 1.19% |
| Tencent Holdings Ltd. | TCTZF | 1.08% |
| ASML Holding N.V. | ASMLF | 0.96% |
| Samsung Electronics Co. Ltd. | SSNLF | 0.95% |
| Roche Holding AG Part. Cert. | RHHVF | 0.88% |
| Toyota Motor Corp. | TOYOF | 0.70% |
| Alibaba Group Holding Ltd. | BABAF | 0.65% |
| LVMH Moet Hennessy Louis Vuitton SE | LVMHF | 0.64% |
FTIHX vs VTIAX: Annual Performance
FTIHX and VTIAX performance over the past five years are not all that different. This is because they cover the same geographic regions and invest in many of the same stocks.
| Funds | Fidelity® Total International Index Fund | Vanguard Total International Stock Index Fund Admiral Shares |
|---|---|---|
| 1 month | -2.93% | -2.84% |
| 3 months | -3.52% | -3.35% |
| 6 months | -2.73% | -2.52% |
| 1 year | +5.14% | +5.67% |
| 3 years | +9.73% | +9.85% |
| 5 years | +8.36% | +8.43% |
Which is Better, FTIHX or VTIAX?
Without a doubt, both of these funds can help investors build a diversified portfolio by adding foreign stocks to the mix. They hold relevant and popular international assets.
Personally, I think FTIHX is the superior fund due to the following reasons:
- FTIHX is cheaper than VTIAX (in both price and expense ratios).
- With FTIHX, there is no minimum investment required.
- There is also no transaction fee to buy FTIHX, whereas if you transact VTIAX on Fidelity, it will cost you $75 per trade.
Still not satisfied with the result? There are more international funds for you to explore.
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