VTSAX vs FZROX: Vanguard vs Fidelity's Free Fund (2026)
VTSAX and FZROX are two of the most popular total U.S. stock market funds — and both charge exactly 0.00% in annual fees. The differences come down to where you invest, how much you have to start, and how much flexibility you want. This comparison breaks down every meaningful distinction.
By Dan Mahler · Updated May 8, 2026
💡 Bottom Line Up Front
Both funds cost 0.00% and deliver near-identical returns. Choose VTSAX if you invest at Vanguard, want brokerage portability, or have $3,000 to start. Choose FZROX if you're at Fidelity, starting with less than $3,000, or want a Fidelity IRA with zero fees and no minimum. Returns are essentially a wash — this is a brokerage decision, not a performance decision.
VTSAX vs FZROX: At a Glance
| Metric | VTSAX | FZROX |
|---|---|---|
| Fund Family | Vanguard | Fidelity |
| Expense Ratio | 0.00% (tied) | |
| Annual Cost on $10,000 | $0.00 (tied) | |
| Minimum Investment | $3,000 | $0 |
| 1-Year Return | 18.21% | 17.85% |
| 3-Year Annualized Return | 18.81% | 18.77% |
| 5-Year Annualized Return | 11.32% | 11.49% |
| 10-Year Annualized Return | 14.57% | N/A (est. 2018) |
| Total Assets (AUM) | ~$2 trillion | ~$32 billion |
| Inception Date | May 2001 | August 2018 |
| Index Tracked | CRSP U.S. Total Market | Fidelity U.S. Total Investable Market (proprietary) |
| Portable to Other Brokerages? | Yes (Vanguard only) | No |
| Morningstar Rating | ★★★ (3 stars — both) | |
Expense Ratio: Both Are Free
This is the one category where VTSAX and FZROX are completely equal: both charge 0.00%. You pay nothing in annual management fees on either fund.
VTSAX's 0.00% expense ratio is a product of Vanguard's unique ownership structure — Vanguard is owned by its funds, which are owned by fund shareholders. There's no external profit motive, so fees get passed back to investors. VTSAX originally charged more, but Vanguard has steadily cut fees to the point where the Admiral Shares class is now free.
FZROX's 0.00% fee is a competitive strategy. Fidelity launched its Zero funds in 2018 specifically to undercut Vanguard and attract investors to the Fidelity platform. The trade-off is the proprietary index and Fidelity-only portability — but the 0.00% fee is real and permanent (Fidelity has committed to it).
Minimum Investment: The Key Practical Difference
VTSAX requires a $3,000 minimum initial investment. FZROX requires $0. This is the most important practical difference for new investors.
If you're just starting out and don't have $3,000 ready, FZROX lets you begin investing immediately — even with $50 or $100. With VTSAX, you must accumulate $3,000 before your first purchase.
Vanguard Alternative for Beginners
If you prefer Vanguard but can't meet the $3,000 minimum, consider VTI — Vanguard's ETF version of VTSAX. VTI has no minimum investment (you buy one share at a time), charges 0.03%, and tracks the same CRSP index as VTSAX. Once you reach $3,000, you can convert to VTSAX at no cost if you prefer mutual fund mechanics.
Note: After the initial $3,000 purchase, VTSAX allows additional contributions in any amount — you're not required to add $3,000 each time.
Returns: Nearly Identical, With Slight Historical Edge to VTSAX
Both funds track the total U.S. stock market and deliver near-identical returns. Over the 1-year and 3-year periods, VTSAX has a slight edge. FZROX leads over 5 years. Neither difference is meaningful — the variation comes from minor differences in index composition and timing of holdings rebalancing.
| Time Period | VTSAX | FZROX | Difference |
|---|---|---|---|
| 1-Year Return | 18.21% | 17.85% | VTSAX +0.36% |
| 3-Year Annualized | 18.81% | 18.77% | VTSAX +0.04% |
| 5-Year Annualized | 11.32% | 11.49% | FZROX +0.17% |
| 10-Year Annualized | 14.57% | N/A (est. 2018) | N/A |
Data from CMF fund database, updated May 2026. FZROX launched August 2018 — long-term comparisons beyond 5 years aren't possible yet.
Portability: VTSAX Is More Flexible, With a Catch
VTSAX is a Vanguard mutual fund — it can only be purchased directly through Vanguard. You cannot hold VTSAX at Fidelity, Schwab, or any other brokerage. However, if you ever want to move your Vanguard account to another brokerage, VTSAX shares can be transferred in-kind — you don't have to sell first.
FZROX tracks a proprietary Fidelity index and is available only at Fidelity. If you ever move to Vanguard, Schwab, or anywhere else, you would need to sell your FZROX shares before transferring — you cannot transfer FZROX in-kind.
| Scenario | VTSAX | FZROX |
|---|---|---|
| Hold at Vanguard | ✅ Yes | ❌ No |
| Hold at Fidelity | ❌ No | ✅ Yes |
| Transfer in-kind to another brokerage | ✅ Yes | ❌ No (must sell first) |
| Taxable account risk if switching brokerages | Low | High |
| IRA account risk if switching | Low | Moderate (sell, wait, rebuy) |
In a taxable brokerage account, FZROX's portability limitation is a real risk. If your FZROX position has appreciated significantly, selling triggers a capital gains tax event. In an IRA or Roth IRA, this matters much less — selling inside a tax-advantaged account has no immediate tax consequence, and you can quickly rebuy a comparable fund at the new brokerage.
Size and Track Record
VTSAX is one of the largest mutual funds in the world, with approximately $2 trillion in assets. It has been operating since May 2001 — through the dot-com bust, the 2008 financial crisis, COVID, and everything in between. That's 25 years of proven market tracking.
FZROX launched in August 2018 and has grown to approximately $32 billion in assets. It's a much newer fund with a shorter track record — only about 7 years of performance history. It has performed well during that period, but it has never been tested through a prolonged market downturn.
For practical purposes, fund size matters very little for index investors — both funds have more than enough assets to operate efficiently, maintain low tracking error, and handle redemptions without disruption. But VTSAX's longer history provides a more complete picture of how the fund behaves across market cycles.
The Indexes They Track
VTSAX tracks the CRSP U.S. Total Market Index, maintained by the Center for Research in Security Prices at the University of Chicago. FZROX tracks the Fidelity U.S. Total Investable Market Index, a proprietary index controlled by Fidelity.
Both indexes aim to represent the entire investable U.S. equity market — large-cap, mid-cap, small-cap, and micro-cap stocks. The holdings correlation between the two funds exceeds 0.99, meaning they move almost in perfect lockstep.
The one theoretical risk of a proprietary index is that Fidelity could change the methodology. An independent index like CRSP or Dow Jones has no single owner who could alter it for business reasons. In practice, Fidelity has not changed the FZROX index methodology since launch, and doing so would damage their reputation — but it's worth understanding the structural difference.
VTSAX vs FZROX: Which Should You Choose?
Choose VTSAX if you…
- ✅ Already invest at Vanguard or plan to open a Vanguard account
- ✅ Have $3,000 or more to start
- ✅ Invest in a taxable brokerage account (want portability)
- ✅ Want 25 years of proven index fund history
- ✅ Might switch brokerages at some point in the future
- ✅ Value Vanguard's investor-owned structure
Choose FZROX if you…
- ✅ Are starting with less than $3,000
- ✅ Already invest at Fidelity or prefer the Fidelity platform
- ✅ Are investing in a Fidelity Roth IRA or traditional IRA
- ✅ Are a beginner who wants the simplest, cheapest entry point
- ✅ Are committed to staying at Fidelity long-term
Our Verdict
This is primarily a brokerage decision, not a fund quality decision. If you're at Vanguard and have $3,000, VTSAX is the obvious choice — it's one of the best index funds ever created. If you're at Fidelity or just starting out, FZROX is excellent: free, no minimum, and essentially identical market exposure. Neither fund will meaningfully outperform the other over time. Pick the one that fits where and how you invest, then stick with it.
Frequently Asked Questions
Is VTSAX or FZROX better?
It depends on where you invest. VTSAX is better if you already have $3,000, want brokerage flexibility, or invest at Vanguard. FZROX is better if you're starting with less than $3,000, are committed to Fidelity, or want zero fees with no minimum. Both charge 0.00% and deliver nearly identical returns.
What is the difference between VTSAX and FZROX?
VTSAX is Vanguard's flagship total market index fund with a $3,000 minimum. FZROX is Fidelity's zero-fee total market fund with no minimum but Fidelity-only availability. Both charge 0.00% and track the full U.S. stock market.
Can I hold VTSAX at Fidelity?
No. VTSAX is a Vanguard mutual fund available only through Vanguard. At Fidelity, the closest equivalents are FSKAX (0.015%) or FZROX (0.00%).
Does VTSAX outperform FZROX?
VTSAX has slightly outperformed FZROX over 1 year (18.21% vs 17.85%) and 3 years. FZROX leads slightly over 5 years (11.49% vs 11.32%). The differences are negligible — both funds track the same broad market.
Is FZROX truly free?
Yes. FZROX charges 0.00% — you pay no annual management fee. Fidelity covers operating costs as a platform strategy. The trade-off is Fidelity-only portability and a proprietary index.
What is VTSAX's minimum investment?
VTSAX requires a $3,000 minimum initial investment. If you can't meet that, VTI (Vanguard's ETF version) has no minimum and charges 0.03%, tracking the same index.
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