FZROX vs VTI: Which Should You Pick?
FZROX or VTI? A 0.00% Fidelity fund vs the 0.03% Vanguard ETF. Why account type, index breadth, and portability matter more than three basis points, with a calculator.
FZROX charges 0.00% and VTI charges 0.03%, so the headline says FZROX wins. The fee is the least interesting difference between them. FZROX is a Fidelity-only mutual fund tracking Fidelity’s own proprietary index; VTI is a portable ETF tracking the Morningstar US Total Market Index. Which one is the better default depends far more on what account you hold it in than on three basis points.
Quick answer
In a Fidelity IRA, Roth IRA or HSA, FZROX’s 0.00% fee is genuinely attractive and there is no tax cost to holding it. In a taxable account, VTI is usually the cleaner pick despite the 0.03% fee: it tracks the more complete Morningstar index, it moves in-kind to any brokerage, and its ETF structure has kept capital gains distributions out of the fund. FZROX generally cannot leave Fidelity, so if you switch brokers you either keep a Fidelity account for it or sell and realize your gains. The 0.03% gap is about $30 a year per $100k; index breadth, taxes, and portability usually matter more than that.
| FZROX | VTI | |
|---|---|---|
| Wrapper | Mutual fund | ETF |
| Expense ratio | 0.00% | 0.03% |
| Index | Fidelity U.S. Total Investable Market (proprietary) | Morningstar US Total Market |
| Stocks held | 2,627 | 3,504 |
| Market coverage | Starts from top ~3,000 U.S. companies | Designed to cover ~100% of the investable market |
| Portability | Fidelity accounts and certain broker-dealers with Fidelity arrangements | Any brokerage; transfers in-kind |
| Taxable-account efficiency | Mutual fund; can distribute capital gains | ETF in-kind redemptions limit cap-gains distributions |
| Minimum | $0 | Price of one share |
Fidelity and Vanguard prospectuses (FZROX December 30, 2025; VTI April 28, 2026). Stocks held at August 31, 2026, from Fidelity's monthly holdings report and Vanguard's VTI holdings export.
The holdings gap is smaller in market value than in count. VTI is one share class of the same fund as VTSAX. On August 31, 2026 that fund’s 862 smallest holdings, those beyond the number of companies FZROX held, made up 0.08% of it, and the two portfolios overlapped 98.6% by weight. Since 2018 the return gap has mostly favored FZROX: against VTSAX it trailed by 0.49 points in 2020 and led in the other six years from 2019 to 2025. The three-way comparison with FSKAX has the full record.
Fee savings vs index return gap
This tool sets the 0.03% fee gap against a difference in index returns. A 10 basis point annual gap in either direction compounds to more than the fee savings, so the index and the account type usually matter more than the headline fee.
Fee Savings vs. Index Return Gap
Fee savings over 25 years
$5,422
Index gap impact
+$0
Net difference
+$5,422
In this scenario, the fee savings ($5,422) are the larger factor. The index gap has a smaller impact of $0.
The fee savings of 3bps would be offset by an index return gap of 3bps per year in the other direction.
See your portfolio's actual factor exposures in Summitward's portfolio analysis
Who should pick which
Pick FZROX if you
- Hold it in a Fidelity IRA, Roth IRA or HSA, where selling to move costs no tax.
- Are investing small amounts and want no minimum.
- Plan to stay at Fidelity and want the 0.00% fee.
Pick VTI if you
- Are investing in a taxable account.
- Want a fund you can move to any brokerage in-kind.
- Prefer the broader Morningstar index and ETF tax efficiency.
The full reasoning
For what the zero fee saves and what it costs in index breadth and portability, read What Fidelity’s ZERO Funds Save, and What You Give Up. See also FZROX vs VTSAX and VTI vs VTSAX.
Want to see how this fits your whole portfolio?
Summitward turns portfolio, tax, and life-planning tradeoffs into decisions you can act on, including overlap, concentration, and tax-location analysis across your accounts.