0
0
When choosing between FSKAX and VTI, consider your investment goals. FSKAX has slightly better returns and lower expenses, with a maximum drawdown of 35.01%, showing it’s less risky. VTI offers a higher dividend yield at 1.36%, making it appealing for income-seeking investors. Overall, FSKAX stands out for lower volatility, while VTI is better for dividends. Both funds are solid options, but understanding the nuances can help you make the best decision for your portfolio.
Performance Comparison
When comparing the performance of FSKAX and VTI, you’ll notice that FSKAX has a slight edge overall. Over the past decade, FSKAX achieved a return of 26.70%, while VTI followed closely at 26.63%.
Year-to-date, FSKAX leads with 13.50%, compared to VTI’s 13.46%. The 10-year annualized return for both funds is nearly identical, with FSKAX at 13.91% and VTI at 13.92%.
However, FSKAX outperforms VTI in the 3-year annualized returns, clocking in at 22.77% versus VTI’s 22.68%.
FSKAX surpasses VTI in 3-year annualized returns, achieving 22.77% compared to VTI’s 22.68%.
Despite their close performance metrics, FSKAX consistently demonstrates slightly better returns across various timeframes, making it a strong contender for investors seeking reliable index fund options. Additionally, understanding investment diversification can enhance your decision-making when selecting funds like FSKAX and VTI.
Key Characteristics
While both FSKAX and VTI offer solid investment options, their key characteristics reveal notable differences that could influence your decision.
FSKAX boasts a Sharpe Ratio of 0.77, slightly higher than VTI’s 0.75, indicating better risk-adjusted returns. When it comes to downside risk, the Sortino Ratio shows FSKAX at 1.18, compared to VTI’s 1.17, suggesting it manages risks more effectively.
Both funds share an Omega Ratio of 1.18 and a Calmar Ratio of 0.75, reflecting similar upside potential and performance relative to maximum drawdowns.
However, FSKAX’s maximum drawdown of -35.01% is considerably less than VTI’s -55.45%, highlighting FSKAX’s superior capability in mitigating losses during downturns. Additionally, utilizing investment tracking tools can enhance your understanding of performance metrics and support informed decision-making.
Returns By Period
When you look at the returns by period for FSKAX and VTI, you’ll notice some interesting trends.
Year-to-date, FSKAX edges out VTI slightly, but the performance varies over longer timeframes.
Let’s break down how these funds stack up in short-term and long-term returns. Additionally, understanding investment health analysis can provide valuable insights into portfolio performance and help inform your decisions.
Year-to-Date Performance Comparison
As you compare the year-to-date performance of FSKAX and VTI, you’ll notice that FSKAX has slightly outperformed VTI, with returns of 13.50% and 13.46%, respectively.
This performance comparison highlights FSKAX’s edge in year-to-date returns, which could influence your investment decisions. While the difference may seem minor, it showcases FSKAX’s consistent ability to generate slightly higher returns.
It’s also worth noting that both funds exhibit similar performance trends across various timeframes, with FSKAX maintaining its lead in annualized returns over 3 and 5 years.
As you evaluate your options, consider how these year-to-date returns align with your investment goals and risk tolerance, ensuring you choose the fund that best fits your strategy.
Multi-Year Annualized Returns
Analyzing multi-year annualized returns reveals key insights into the performance of FSKAX and VTI.
Over the past decade, FSKAX achieved an impressive 10-year annualized return of 13.91%, while VTI slightly edged it out at 13.92%.
However, when looking at the 5-year period, FSKAX outperformed VTI with an annualized return of 14.56% versus VTI’s 14.54%.
In the 3-year timeframe, FSKAX again led, boasting a return of 22.77%, compared to VTI’s 22.68%.
Year-to-date, both funds show closely matched performance, with FSKAX at 13.50% and VTI at 13.46%.
Short-Term vs. Long-Term
While both short-term and long-term returns matter, understanding how FSKAX and VTI perform over different periods can help you make informed investment decisions.
Year-to-date, FSKAX leads slightly with a return of 13.50% compared to VTI’s 13.46%. Over a three-year period, FSKAX achieves an annualized return of 22.77%, while VTI follows closely at 22.68%.
In the five-year category, FSKAX again outperforms with 14.56%, compared to VTI’s 14.54%. However, when you look at the long-term, both funds show nearly equal performance, with FSKAX at 13.91% and VTI at 13.92% over ten years.
Expense Ratio Comparison
When it comes to expense ratios, FSKAX takes the lead with a low rate of 0.02%, compared to VTI’s slightly higher 0.03%. Both expense ratios are considered low-cost, especially when you compare them to the broader market, where averages can range from 0.3% to 0.9%. While the difference between FSKAX and VTI is small, it can add up over time, potentially enhancing your net returns. Lower expense ratios like these minimize overall investment costs, making both funds attractive for cost-conscious investors. Ultimately, the competitive positioning of FSKAX and VTI in the index fund space emphasizes their appeal for long-term investing, allowing you to keep more of your hard-earned money growing in the market. Additionally, utilizing budget apps can further support your financial management by helping you track and monitor your investments effectively.
Risk-Adjusted Performance
Understanding risk-adjusted performance is essential for making informed investment decisions, especially when comparing index funds like FSKAX and VTI.
The Sharpe Ratio for FSKAX is 0.77, slightly outperforming VTI’s 0.75, indicating better risk-adjusted returns. Both funds have identical Omega Ratios of 1.18, showing they provide similar returns relative to loss risk.
However, FSKAX edges out VTI with a Sortino Ratio of 1.18 versus 1.17, highlighting its superior performance during downturns. The Martin Ratio also favors FSKAX at 2.90 compared to VTI’s 2.89, reflecting its efficiency in generating returns per unit of risk taken. Additionally, understanding financial literacy can further enhance your investment strategies and decision-making processes.
Correlation Analysis
Analyzing the correlation between FSKAX and VTI reveals a perfect positive relationship in their price movements, with a correlation coefficient of 1.00. This high correlation indicates that both funds will likely perform similarly, so you can expect aligned performance trends.
With FSKAX showing a volatility of 3.87% and VTI at 3.81%, their risk profiles are closely matched as well. Because of this close correlation, including both funds in your portfolio may not offer significant diversification benefits.
You should carefully consider your overall portfolio strategy, as investing in either fund could lead you to experience alike risks and rewards. Understanding this correlation can help you make informed decisions tailored to your investment goals. Additionally, utilizing tools like expense management apps can help you track your investment expenses effectively, ensuring you maintain financial health as you manage your portfolio.
Dividend Yield Comparison
While both FSKAX and VTI are solid options for investors, their dividend yields reveal some notable differences worth considering.
Here’s a quick comparison of their yields:
- VTI’s Dividend Yield: Approximately 1.36%, making it slightly more attractive for income-focused investors.
- FSKAX’s Dividend Yield: About 1.33%, which is lower but still competitive.
- Yield Difference: The gap between the two is just 0.03%, but VTI consistently outperforms FSKAX in annualized dividend rates over the past decade.
If you’re primarily interested in dividend yield, VTI may be the better choice. Additionally, loyalty programs can enhance customer experiences by offering personalized rewards that maximize the value of investments like these.
However, both funds remain low-cost options relative to the broader market, providing value regardless of your income goals.
Maximum Drawdowns
When considering investments, it’s crucial to evaluate how funds perform during market downturns, and that’s where maximum drawdowns come into play.
FSKAX shows a maximum drawdown of -35.01%, which lasted just 32 days during February 2020. In contrast, VTI faced a more severe maximum drawdown of -55.45% over a lengthy 516 days starting in October 2007. This 20.44% difference highlights FSKAX‘s relatively lower risk during downturns.
Furthermore, FSKAX took only 99 trading sessions to recover its losses, while VTI’s recovery was considerably longer. Overall, these lower maximum drawdown figures suggest that FSKAX may offer better downside protection during market volatility compared to VTI, making it a more appealing option for cautious investors. Additionally, understanding financial clarity through tools like expense tracking can further enhance investment strategies by managing associated costs effectively.
Volatility Assessment
When evaluating volatility, you’ll notice that both VTI and FSKAX show similar price fluctuations, with only a slight difference in their volatility metrics.
However, VTI’s higher maximum drawdown suggests it could pose a greater risk during market downturns.
Understanding these dynamics and their correlation can help you make more informed investment decisions. Additionally, utilizing budgeting apps can provide insights into your financial health, allowing for better management of your investment strategies.
Volatility Comparison Metrics
As you evaluate the volatility comparison between FSKAX and VTI, you’ll find that both funds exhibit similar levels of price fluctuations, with VTI’s volatility recorded at 3.81% and FSKAX slightly higher at 3.87%.
However, there are key differences to take into account:
- Drawdown: VTI has a maximum drawdown of -55.45%, while FSKAX’s is more favorable at -35.01%.
- Correlation: Both funds have a perfect correlation of 1.00, meaning they move together, which may limit diversification.
- Risk Profile: The rolling one-month volatility charts show negligible differences, indicating their comparable risk profiles.
If you’re looking for lower volatility, FSKAX might be the better choice due to its more favorable drawdown history.
Price Fluctuation Analysis
While both FSKAX and VTI show similar levels of price fluctuations, understanding their price behavior in more detail can help you make informed investment decisions.
VTI’s volatility is measured at 3.81%, slightly lower than FSKAX’s 3.87%. This negligible difference suggests you can expect comparable risk profiles from both funds.
The rolling one-month volatility charts reveal consistent price behavior for both ETFs over time, reinforcing that their price fluctuations are aligned.
However, their perfect correlation of 1.00 indicates a strong relationship in their movements, which might limit diversification if you include both in your portfolio.
Correlation Insights
Understanding the correlation between VTI and FSKAX is essential for evaluating their overall impact on your investment strategy. Both funds show a perfect correlation of 1.00, meaning they move together, which can limit diversification benefits.
Here’s what you should know about their volatility and maximum drawdown:
- Volatility Levels: VTI has a volatility of 3.81%, while FSKAX is slightly higher at 3.87%.
- Maximum Drawdown: VTI’s maximum drawdown is -55.45%, considerably worse than FSKAX’s -35.01%.
- Market Sensitivity: FSKAX provides greater stability during market stress due to its lower maximum drawdown.
Final Verdict
When deciding between FSKAX and VTI, it’s essential to weigh both performance and risk factors.
FSKAX boasts a lower maximum drawdown of 35.01% compared to VTI’s 55.45%, indicating less risk during market downturns. With an expense ratio of 0.02%, FSKAX slightly edges out VTI’s 0.03%, making it a more cost-effective choice for many investors.
Additionally, FSKAX offers a higher Sharpe Ratio of 0.77 versus VTI’s 0.75, suggesting it provides better risk-adjusted returns. While FSKAX has outperformed VTI by a narrow margin in annualized returns (13.91% vs. 13.92%), if you prioritize higher dividend yields, you might consider VDI instead.
Ultimately, your personal investment goals will guide your decision. Moreover, utilizing budgeting apps can enhance your financial management as you plan your investment strategy.
Conclusion
In the showdown between FSKAX and VTI, both index funds offer unique advantages that cater to different investors. If you’re looking for a broader market exposure, VTI might be your pick, while FSKAX shines with its total market coverage. Notably, FSKAX has delivered an impressive average annual return of around 10.5% over the past decade. Ultimately, choosing the right fund hinges on your investment goals and risk tolerance, so weigh your options carefully!
