Turnover Rate ITOT vs FSTVX [iShares Total US vs. Fidelity Total US]

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Joined: Sun Nov 12, 2017 8:10 am

Turnover Rate ITOT vs FSTVX [iShares Total US vs. Fidelity Total US]

Post by InvestNow » Sun Nov 12, 2017 9:11 am

I have a question about which fund is better based on turnover rate

Turnover Rate ITOT vs FSTVX

Turnover Rate ITOT 8%: iShares Core S&P Total U.S. Stock Market ETF

Turnover Rate FSTVX 4%; Fidelity Total Market Index Fund Premium Class

Both of these funds are so close in all aspects except turnover rate? Why is ITOT 8%? is it the index it’s following? ITOT turnover was 14% per Morningstar in 2016 and the turnover rate in the most recent prospectus (Aug 2017) is 8%. I know it changed the index it follows in 2014.

Should I care about the turnover rate? I will be using in a portion of an IRA (about $175K in ITOT or FSTVX) but may also use in another taxable account now or in the future. Any thoughts here if IRA vs taxable?

I have Fidelity as my primary brokerage so no fees to buy ITOT and direct access to FSTVX

So you know I’m a bit new to ETFs. I have been using mutual funds, to fund my retirement, since my mid-20s and I’m late 50s now. I purchased my first ETF (iShares IUSB) a couple of days ago. What I thrill to see that I owned it just seconds after clicking the mouse!


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