FZROX and SWTSX are both designed to track the performance of the total stock market, so they should theoretically produce very similar results. However, there can be some minor differences in their performance due to the slight variations in the underlying indexes that they track.
Let’s find out which fund is better for your portfolio.
FZROX vs SWTSX: Comparison Details
| Funds | Schwab Total Stock Market Index Fund® | Fidelity® ZERO Total Market Index Fund |
|---|---|---|
| Net expense ratio | 0.03% | 0.00% |
| Min. initial investment | $0.00 | $0.00 |
| Total net assets | 18.06bn USD | 12.84bn USD |
| 3-year total return | +19.77% | +19.99% |
| Morningstar category | Large Blend | Large Blend |
What’s the difference between FZROX and SWTSX?
Expense Ratio
In terms of expense ratio, FZROX is cheaper than SWTSX. In fact, there is no fee for investing in the Fidelity ZERO Total Market Index Fund. Meanwhile, there is a 0.03% fee for the Schwab Total Stock Market Fund.
Underlying Index
FZROX is a mutual fund from Fidelity that seeks to track the performance of the Fidelity U.S. Total Investable Market Index. SWTSX is a mutual fund from Charles Schwab that tracks the Dow Jones U.S. Total Stock Market Index.
Their underlying indexes may be different, but their objectives are the same.
Transaction Fees
There is a $75 transaction fee for Fidelity customers if you purchase SWTSX in your account. To avoid this fee, you can invest in FZROX.
Fund Inception
With SWTSX being established in 1999, it’s older than FZROX. The Fidelity ZERO Total Stock Market Index Fund was launched recently (in 2018) as part of Fidelity’s Zero Expense Funds.
Performance and Returns
Their performance and total returns in the past three years have been identical. This is not surprising since they closely follow the total stock market index.
| Funds | Schwab Total Stock Market Index Fund® | Fidelity® ZERO Total Market Index Fund |
|---|---|---|
| 1 month | -6.00% | -5.84% |
| 3 months | -3.87% | -3.52% |
| 6 months | +0.74% | +1.18% |
| 1 year | +18.48% | +19.18% |
| 3 years | +19.77% | +19.99% |
| 5 years | +15.97% | – |
Which is Better, FZROX or SWTSX?
Overall, I think both of these funds are great options for anyone looking for a low-cost way to invest in the total U.S stock market.
FZROX has the edge over SWTSX, but the difference is pretty small. So either fund would be a good choice in my opinion.
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