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[FZROX vs FSKAX]

Posted: Wed Oct 07, 2020 12:44 pm
by cedar owl
Hello, 2 questions (new to forum, forgive me if I don't post correctly). Just switched from Schwab to Fidelity for Roth IRA and one taxable investment account. Currently in Roth I have VTSAX and just started investing into FZROX. Regarding FZROX vs. FSKAX: 1) why is price per share so much less for FZROX? 2) Is FSKAX perhaps a better option than FSROX- regarding dividend schedule ( is dividend payout only in December for FSROX?) and overall track record? Thanks so much

[Edited thread title for clarity -- moderator oldcomputerguy]

Re: FZROX

Posted: Wed Oct 07, 2020 1:12 pm
by rkhusky
cedar owl wrote: Wed Oct 07, 2020 12:44 pm Hello, 2 questions (new to forum, forgive me if I don't post correctly). Just switched from Schwab to Fidelity for Roth IRA and one taxable investment account. Currently in Roth I have VTSAX and just started investing into FZROX. Regarding FZROX vs. FSKAX: 1) why is price per share so much less for FZROX? 2) Is FSKAX perhaps a better option than FSROX- regarding dividend schedule ( is dividend payout only in December for FSROX?) and overall track record? Thanks so much
Share price has little meaning - dollars is what matters. Many funds start with a share price of $10. So a new fund typically has a lower price than an older fund. It doesn’t matter if you have 1000 shares at $10/share or 100 shares at $100/share or 10 shares at $1000/share, especially when you can buy fractional shares.

Stock dividends have little meaning in a tax advantaged account. The share price will drop at the same time the dividend is issued, such that you have the same amount of money before and after the dividend is issued.

Bond dividends on the other hand are actually new money.

In a taxable account you have to pay tax on the dividends. So, for stock dividends in a taxable account, you actually end up with less money after a dividend is issued.

Re: FZROX

Posted: Wed Oct 07, 2020 1:29 pm
by ruralavalon
Welcome to the forum :) .

cedar owl wrote: Wed Oct 07, 2020 12:44 pm Hello, 2 questions (new to forum, forgive me if I don't post correctly). Just switched from Schwab to Fidelity for Roth IRA and one taxable investment account. Currently in Roth I have VTSAX and just started investing into FZROX. Regarding FZROX vs. FSKAX: 1) why is price per share so much less for FZROX? 2) Is FSKAX perhaps a better option than FSROX- regarding dividend schedule ( is dividend payout only in December for FSROX?) and overall track record? Thanks so much
The price per share is irrelevant.

Fidelity Total Market Index Fund (FSKAX) ER 0.015%, and Fidelity ZERO Total Market Index Fund (FZROX) ER 0.00% are both good funds. In my opinion they are nearly equivalent, one is not a better option than the other, and the track records have been about the same.

Re: FZROX

Posted: Wed Oct 07, 2020 1:38 pm
by tibbitts
cedar owl wrote: Wed Oct 07, 2020 12:44 pm Hello, 2 questions (new to forum, forgive me if I don't post correctly). Just switched from Schwab to Fidelity for Roth IRA and one taxable investment account. Currently in Roth I have VTSAX and just started investing into FZROX. Regarding FZROX vs. FSKAX: 1) why is price per share so much less for FZROX? 2) Is FSKAX perhaps a better option than FSROX- regarding dividend schedule ( is dividend payout only in December for FSROX?) and overall track record? Thanks so much
Please don't throw these symbols around as if anybody knows what they are. Also it seems that with a high percentage of symbols-only posts, there are either typos, or what appear to possibly be typos, resulting in confusion on everyone's part.

Re: FZROX

Posted: Wed Oct 07, 2020 1:42 pm
by ruralavalon
tibbitts wrote: Wed Oct 07, 2020 1:38 pm
cedar owl wrote: Wed Oct 07, 2020 12:44 pm Hello, 2 questions (new to forum, forgive me if I don't post correctly). Just switched from Schwab to Fidelity for Roth IRA and one taxable investment account. Currently in Roth I have VTSAX and just started investing into FZROX. Regarding FZROX vs. FSKAX: 1) why is price per share so much less for FZROX? 2) Is FSKAX perhaps a better option than FSROX- regarding dividend schedule ( is dividend payout only in December for FSROX?) and overall track record? Thanks so much
Please don't throw these symbols around as if anybody knows what they are. Also it seems that with a high percentage of symbols-only posts, there are either typos, or what appear to possibly be typos, resulting in confusion on everyone's part.
I agree. Please make a habit of always giving the fund names, tickers and expense ratios. Don't just use the ticker symbols alone.

Re: [FZROX vs FSKAX]

Posted: Wed Oct 07, 2020 5:17 pm
by Duckie
cedar owl wrote:Just switched from Schwab to Fidelity for Roth IRA and one taxable investment account. Currently in Roth I have VTSAX and just started investing into FZROX.
Are you planning to put FZROX in the taxable account? Don't. FZROX is proprietary. It can only be held at Fidelity. If you ever want to switch brokerages again you either have to sell FZROX or stay. That doesn't matter in an IRA but it matters in taxable. FSKAX is a better option in taxable.

Re: [FZROX vs FSKAX]

Posted: Sat Oct 17, 2020 8:21 pm
by cedar owl
Thanks so much to those who replied to my post. I greatly appreciate the information. All the replies were very helpful. Also, I learned my lesson on the correct manner to post info in the future. :sharebeer