FZROX vs VTSAX: Which Should You Pick?
FZROX or VTSAX for the total U.S. market? A free Fidelity-only fund vs Vanguard's total-market fund that converts to a portable ETF. When each one wins, and why.
FZROX and VTSAX are both total U.S. stock market mutual funds, so this is the closest apples-to-apples version of the Fidelity-vs-Vanguard question. FZROX is free and tracks Fidelity’s proprietary index; VTSAX charges 0.04% and tracks the Morningstar US Total Market Index, the same index and portfolio as the VTI ETF. The differences that matter most are that VTSAX can convert to an ETF and FZROX generally cannot leave Fidelity. On returns, FZROX has been ahead since its 2018 launch.
Quick answer
In a Fidelity IRA, Roth IRA or HSA, FZROX’s 0.00% fee is a fine reason to hold it, and selling it later to move costs no tax. In a taxable account, VTSAX is usually the more flexible pick despite the 0.04% fee: it tracks the broader Morningstar index, and at Vanguard it can convert tax-free (one way) to the VTI ETF, which moves to any broker. FZROX generally stays at Fidelity, so leaving later means keeping a Fidelity account for it or selling and paying tax on the gains. The 0.04% gap is about $40 a year per $100k.
| FZROX | VTSAX | |
|---|---|---|
| Wrapper | Mutual fund | Mutual fund (Admiral shares) |
| Expense ratio | 0.00% | 0.04% |
| 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 | Converts tax-free to the VTI ETF at Vanguard (one way); VTI moves to any broker |
| Annual return, Sept 2018 to Sept 2026 | 13.85% | 13.71% |
| Capital gains paid | $0.01 to $0.03 a share in FY2019, 2020 and 2022 | None in the 10 years through 2025 |
| Minimum | $0 | $3,000 |
| Trading | End-of-day NAV, no spread | End-of-day NAV, no spread |
Prospectuses (FZROX December 30, 2025; VTSAX April 28, 2026) and annual reports. Stocks held at August 31, 2026, from Fidelity's monthly holdings report and Vanguard's holdings export. Returns are Summitward calculations from month-end total-return prices, August 31, 2018 to September 30, 2026.
Because VTSAX and VTI are share classes of the same Vanguard fund, VTSAX holders at Vanguard can convert to the VTI ETF without triggering a taxable event, then move those shares to any brokerage. That escape hatch does not exist for FZROX. The holdings gap is small in market value: on August 31, 2026, VTSAX’s 862 smallest holdings, those beyond the number of companies FZROX held, made up 0.08% of the fund, and the two portfolios overlapped 98.6% by weight. FZROX returned 0.14 points a year more than VTSAX from August 2018 to September 2026; the fee explains 0.04 points of that, and the three-way comparison with FSKAX covers the rest.
Who should pick which
Pick FZROX if you
- Hold it in a Fidelity IRA, Roth IRA or HSA.
- Want zero fees and no minimum to start.
- Plan to keep your accounts at Fidelity.
Pick VTSAX if you
- Want the broader Morningstar index and a path to a portable ETF.
- Invest at Vanguard and like automatic dollar investing.
- Value the option to leave without a forced taxable sale.
The full reasoning
Choosing between Fidelity’s own two total-market funds is covered in FSKAX vs FZROX.
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 VTI and VTI vs VTSAX.
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