I'm a beginner investor looking to get started with an S&P 500 index fund. The two that appeal to me the most are Vanguard's VFINX and Fidelity's FUSEX, but I'm having a hard time choosing between them.
- This would be a non-retirement, medium-term investment of around $10,000 initially.
- Performance-wise, FUSEX has been doing very slightly better over the last 10 years (6.99% vs 7.03%).
- FUSEX has an exchange ratio of 0.10% while VFINX's is 0.17%.
- Neither has an account service fee for balances above $10,000.
Right now I'm leaning towards FUSEX, though I still have some general questions that I can't seem to find answers to:
1) What other types of fees are generally associated with index funds or these specific index funds?
2) Are there fees for additional investments or withdrawals?
3) Tax is paid on withdrawal?
Thanks for any advice!
Edit: Vanguard's mutual fund comparison tool shows that VFINX actually outperforms FUSEX in terms of performance after taxes on distributions and sales of fund shares. How does that work?
- This would be a non-retirement, medium-term investment of around $10,000 initially.
- Performance-wise, FUSEX has been doing very slightly better over the last 10 years (6.99% vs 7.03%).
- FUSEX has an exchange ratio of 0.10% while VFINX's is 0.17%.
- Neither has an account service fee for balances above $10,000.
Right now I'm leaning towards FUSEX, though I still have some general questions that I can't seem to find answers to:
1) What other types of fees are generally associated with index funds or these specific index funds?
2) Are there fees for additional investments or withdrawals?
3) Tax is paid on withdrawal?
Thanks for any advice!
Edit: Vanguard's mutual fund comparison tool shows that VFINX actually outperforms FUSEX in terms of performance after taxes on distributions and sales of fund shares. How does that work?
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