1. ETF tends to be a hair more tax efficient than mutual funds. The exception however is Vanguard funds which is just as tax efficient as its ETF (due to patent).
2. Fidelity charges $4.95 when purchasing Vanguard ETF and $4.95 when selling Vanguard ETF.
In Fidelity, you purchase Fidelity funds.
In Vanguard, you purchase Vanguard funds.
Don't play dumb.
3. Cost more? Cost more by what?
In a taxable (regular) account, Fidelity funds cost more due to tax inefficiency. In a regular account, you are better off going ITOT/IXUS/FXNAX which is higher in net fees after share lending vs Vanguard ETF equivalents
In an IRA/401(k), yes, Fidelity funds will probably return more due to lower fees. But the fees are sooo overstated here.
Fidelity's equivalent for VTSAX is FSKAX.
VTSAX currently has 0.04% fee while FSKAX has 0.015% fee. Clearly, FSKAX is the better option in fees, right?
Let's compare both from 3/31/2009 to today. Both started $10,000.
FSKAX = $44,124.
VTSAX = $44,314
It seems VTSAX returned "a bit more". It's literally just noise at this point and the deciding factor is more of which index will return more when comparing the two. Both tracks a slightly different index at end of day (differences are negligible so you get the idea).
4.
In tax advantaged account:
VTSAX = FSKAX or a "similar" product: FZROX
VGTSX does not exist anymore. It's now VTIAX. Note its ETF equivalent, VXUS, has lower fee. VXUS = FTIHX
VBTLX = FXNAX
In regular account (to get the most bang for buck in tax efficiency):
VTI = VTSAX : ITOT
VXUS: IXUS
VBTLX : FXNAX
Bonds don't behave like stocks so don't worry much.
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If you are fee paranoid though:
In a regular account: VTIAX/VTI VXUS FXNAX
In a tax advantaged account: FZROX FZILX FXNAX (Note FZILX is closer to FSGGX, not FTIHX. It misses on small caps)
You know.. for those who think $2 for $10,000 is world ending doomsday or whatever and forget that different funds track different indexes (and that fee can be cancelled with the noise).
