FXNAX vs VTI
Fidelity US Bond Index Fund vs Vanguard Morningstar Total Stock Market ETF
Which is better, FXNAX or VTI?
Long Term High Quality against Large Cap Blend.
MarketXLS is not an investment adviser. This comparison is generated automatically from market data and is for information only. A Best mark means the better reading on that one measure, not a recommendation to buy.
Side-by-Side Comparison
| Metric | FXNAX | VTI |
|---|---|---|
| Expense Ratio | 0.03%Tie | 0.03%Tie |
| AUM | $39.5B | $689.2B |
| Dividend Yield | 7.23% | 1.06% |
| Holdings | 6,499 | 3,524 |
| YTD Price Return | -5.02% | +12.06% |
| 1Y Price Return | -5.56% | +15.31% |
| 3Y Price Return (annualized) | +0.85% | +20.42% |
| 5Y Price Return (annualized) | -3.58% | +10.44% |
| Volatility (annualized) | 6.3%Best | 15.9% |
| Max Drawdown | -20.6%Best | -26.2% |
| Fund Family | Fidelity Investments (US) | Vanguard (US) |
| Category | Fixed Income | Equity |
| Style | Long Term High Quality | Large Cap Blend |
| Inception | May 4, 2011 | May 24, 2001 |
Not shown on this pair: $10,000 over 5 years, Top 10 Weight.
A price return is not the return of a fund that pays its income out. The coupon or distribution never appears in the price, so the return rows carry no winner here. FXNAX currently yields 7.23% and VTI 1.06%.
Volatility and max drawdown are measured over the window both funds cover: Oct 15, 2021 to Oct 13, 2026 (5 years).
FXNAX vs VTI Performance
Fidelity US Bond Index Fund (FXNAX) is a mutual fund from Fidelity Investments (US) and Vanguard Morningstar Total Stock Market ETF (VTI) is an ETF from Vanguard (US). Over the past year FXNAX's price moved -5.56% and VTI's +15.31%, before the income each one paid out.
Over three years, FXNAX compounded at +0.85% per year against +20.42% for VTI; over five years the annualized figures are -3.58% and +10.44% respectively.
Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
VTI has been the more volatile fund, with annualized monthly volatility of 15.9% compared with 6.3% for FXNAX. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -20.6% for FXNAX and -26.2% for VTI. Drawdown depth is what each fund did in the worst stretch of the window measured above.
The two funds' monthly returns correlate at 0.62. They move together some of the time, and apart the rest.
Fees and Cost Over Time
FXNAX charges 0.03% per year while VTI charges 0.03%. On a $10,000 position that is $3 vs $3 annually. On income, FXNAX currently yields 7.23% against 1.06% for VTI.
Structure and taxes
FXNAX is a mutual fund and VTI is an ETF. A mutual fund prices once a day at net asset value and may carry a purchase minimum. An ETF trades through the day at whatever the market pays for it.
In a taxable account the difference that usually matters is distributions. An ETF can meet redemptions in kind, so it rarely has to sell holdings and rarely passes a capital gain to the people who held it; a mutual fund that sells holdings to meet redemptions can distribute a realised gain at year end to everyone still in the fund, whether or not they sold anything themselves. In a tax-deferred account that difference largely disappears. Both are descriptions of how the two wrappers work, not a recommendation.
Tax-loss harvesting works on either wrapper.
Holdings Overlap
At least 0.1% of VTI's money is in holdings FXNAX also owns.
Stated as a floor: for FXNAX, our book for it covers 72.1% of that fund, so a holding it does not list is one we cannot count as shared. The real figure is this or higher.
We cannot see either book well enough to say how much of this pair is duplicated.
2 positions in common, counted across the 3,299 positions we hold weights for in FXNAX and 3,441 in VTI, against full books of 6,499 and 3,524.
You are not choosing between two funds in isolation.
Whichever of FXNAX and VTI you pick has to sit alongside everything else you own. Add the rest and see what the combination actually holds.
Free for up to 10 holdings. No account needed.
Frequently Asked Questions
Which is cheaper, FXNAX or VTI?
FXNAX has an expense ratio of 0.03% while VTI charges 0.03%. At the precision these are quoted to, they cost the same.
Which is riskier, FXNAX or VTI?
VTI has been the more volatile fund at 15.9% annualized versus 6.3% for FXNAX. Worst drawdown: FXNAX -20.6% vs VTI -26.2%.
Should I hold both FXNAX and VTI?
FXNAX and VTI have a monthly-return correlation of 0.62, so their returns are far enough apart for the mix to behave differently from either one alone. This is information, not a recommendation.
Which pays a higher dividend, FXNAX or VTI?
FXNAX yields 7.23% while VTI yields 1.06%, so FXNAX currently pays the higher dividend yield.
Is it better to hold FXNAX or VTI in a taxable account?
VTI is an ETF and FXNAX is a mutual fund. An ETF can meet redemptions in kind, so it rarely distributes a capital gain to the people holding it. A mutual fund that sells holdings to meet redemptions can pass a realised gain to every holder at year end. In a tax-deferred account that difference largely disappears. This is information, not a recommendation.
Is VTI better than FXNAX?
FXNAX and VTI are close on every measure we can compare. Which one suits a particular account depends on what it is for. This is information, not a recommendation.