Fidelity vs Vanguard | VSMAX vs. FSSNX | Small Cap Index Fund Battle | Fidelity Investments

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In this video I am going to share with you why you NEED to be investing in small-cap index funds as party of your investment portfolio and we are going to deep-dive the differences between the two main players in the low-cost index fund arena: Vanguard vs. Fidelity.

Also, it took me a number of hours to research the video and to get knee deep into the fund prospectuses to look at the fine print most people AVOID like the plague, so all I ask is that you click on that LIKE button to let me know you appreciate it.

Make sure to watch all the way to the END of the video because I will deliver for you a recommendation based on the data, which small-cap mutual fund you should consider investing in TODAY. Let’s get started.

What is a small cap index fund?

Small cap index funds track a number of different U.S. stock indexes which account for the smallest U.S. companies based on total capitalization or value

Why is a small-cap index fund IMPORTANT for your investment portfolio

Small-cap companies are more volatile but also deliver higher returns | high growth stage of the company | typically support the large cap companies out there such as Amazon or Google

Why Vanguard’s VSMAX fund vs. Fidelity’s FSSNX

o Low-cost AKA low expense ratios
o Low fees and simplicity are important for the average joe

VANGUARD VSMAX
Seeks to track the CRSP US Small Cap index | AKA the Benchmark
The CRSP US Small Cap Index includes U.S. companies that fall between the bottom 2%-15% of the investable market capitalization.
As of 11.30.2019 1,373 holdings
Returns 1yr 10.80% | 3yr 10.21% | 5yr 8.68% | 10yr 13.42% | Life 9.13% (2000)
Expense Ratio = .05%
Minimum Investment $3,000
Dividend 1.4% (built into total returns above)

FIDELITY FSSNX
Seeks to track the Russell 2000 index
The Russell 2000 index is an index measuring the performance of approximately 2,000 smallest-cap American companies in the Russell 3000 Index, which is made up of 3,000 of the largest U.S. stocks. It is a market-cap weighted index.
2,003 holdings as of this video making
Returns 1yr 7.66% | 3yr 8.70% | 5yr 8.42% | 10yr N/A | Life 12.58% (2012)
Expense Ratio = .025%
Minimum Investment = $0.00
Dividend 2.58% yield (built into total returns above)

WHAT is right for you??

When you factor in expense ratios, Vanguard wins.
GOOD to have small-cap index funds in your portfolio for higher returns even though there is increased volatility