FXAIX vs. FSKAX: Which Is a Better Buy and Hold for Next 30 Years?

Someone asks:

At 35 would you buy FXAIX or FSKAX to hold for long term? I’ve been investing individual big tech companies in my Roth IRA, but planning to invest mutual funds from now on.

  • Both FSKAX and FXAIX are Fidelity mutual funds.
  • FSKAX and FXAIX have the same expense ratio of 0.015%.

Is FSKAX a better investment than FXAIX?

Todd G:

FSKAX is the total US market. It contains more exposure to mid and small caps. It contains nearly 4000 stocks. FXAIX is the S&P 500 which is the 500 largest US companies by market cap.

Unless it’s in a tax advantaged account, I prefer the ETF version and usually go for Vanguard. I’d choose VTI which is the total US market.

Dave C:

You can really consider them to both be the same, even though obviously one holds 500 companies and the other a few thousand. Their returns long term are so close together that it really doesn’t make much difference. I go with VTI, a total stock market ETF, but really a S&P 500 index would be almost the same return.

Andrew G:

I vote FSKAX because it has the extended market in it. But either is fine. I have a slight preference for FSKAX as they have mid and small caps. They’re slightly riskier so I’d expect a higher return from them.

Ian S:

I have FXIAX in my Roth IRA (I’m 27 and have only been using the Roth for two years- recently switched to FXIAX from individual stocks). I’m using my main account for individual stock picks and selling options. Knowing the Roth IRA is low maintenance makes for stress free time.

John D:

They are so closely correlated that it’s not going to matter much. I go with FSKAX because it has the most holdings and more exposure to small caps.

A combination of FSKAX and FTIHX basically gives you every stock in the world. Guaranteed to hold the next Amazon. The ETF VT has the same benefit.